Florida Senate - 2012 SB 1780
By Senator Siplin
19-01335-12 20121780__
1 A bill to be entitled
2 An act relating to retirement; amending ss. 110.123,
3 112.0801, 112.363, 112.65, and 121.011, F.S.;
4 conforming provisions to changes made by the act;
5 amending s. 121.021, F.S.; revising definitions;
6 amending s. 121.051, F.S.; deleting requirement that a
7 local governmental entity or the governing body of a
8 charter school or charter technical career center make
9 certain elections regarding benefits at the time the
10 entity or governing body joins the Florida Retirement
11 System; deleting requirement of employee retirement
12 contributions; deleting provision providing that
13 employer-paid employee contributions are subject to
14 certain taxes; amending s. 121.0515, F.S.; redefining
15 membership in the Special Risk Class; redefining
16 criteria for Special Risk Class membership; amending
17 s. 121.052, F.S., relating to the membership class of
18 elected officers; conforming provisions to changes
19 made by the act; deleting requirement of member
20 contributions; deleting provision providing for a
21 refund of contributions under certain circumstances
22 for an officer who leaves office; deleting provision
23 providing that a member who obtains a refund of
24 contributions waives certain rights under the Florida
25 Retirement System; amending s. 121.053, F.S.;
26 clarifying the employer contributions required for
27 Elected Officers’ Class members who participate in the
28 Deferred Retirement Option Program; amending s.
29 121.055, F.S., relating to the Senior Management
30 Service Class; conforming provisions to changes made
31 by the act; deleting requirement of employee
32 contributions; deleting a provision providing for a
33 refund of contributions under certain circumstances
34 for a member who terminates employment; deleting a
35 provision providing that a member who obtains a refund
36 of contributions waives certain rights under the
37 Florida Retirement System; deleting a provision
38 limiting the payment of benefits prior to a
39 participant’s termination of employment; amending s.
40 121.061, F.S.; conforming provisions to changes made
41 by the act; amending s. 121.071, F.S.; requiring
42 employer contributions to the retirement system;
43 revising provisions relating to the refund of
44 contributions under certain circumstances after
45 termination of employment; deleting a provision
46 providing that a member who obtains a refund of
47 contributions waives certain rights under the Florida
48 Retirement System; deleting a provision requiring
49 repayment plus interest of an invalid refund; amending
50 s. 121.081, F.S.; revising requirements for
51 contributions for prior service performed on or after
52 a certain date; amending s. 121.091, F.S.; modifying
53 the early retirement benefit calculation for those
54 members retiring on or after a certain date or before
55 the normal retirement date to reflect the change in
56 normal retirement age; revising provisions relating to
57 disability retirement for judges; revising provisions
58 providing for the refund of accumulated contributions
59 if a member’s employment is terminated for any reason
60 other than retirement; revising the interest rate on
61 benefits for members enrolling in DROP after a certain
62 date; conforming provisions to changes made by the
63 act; amending s. 121.1001, F.S.; conforming provisions
64 to changes made by the act; amending s. 121.101, F.S.;
65 revising the cost-of-living adjustment depending on
66 the date of retirement; amending s. 121.1115, F.S.;
67 conforming provisions to changes made by the act;
68 amending s. 121.1122, F.S.; conforming provisions to
69 changes made by the act; amending s. 121.121, F.S.;
70 deleting a provision requiring that the purchase of
71 creditable service after an authorized leave of
72 absence be purchased at the employer and employee
73 contribution rates in effect during the leave of
74 absence after a certain date; amending s. 121.125,
75 F.S.; deleting a provision requiring that a penalty be
76 assessed against certain employers that fail to pay
77 the required contributions for workers’ compensation;
78 reenacting s. 121.161, F.S.; conforming provisions to
79 changes made by the act; amending s. 121.182, F.S.;
80 conforming provisions to changes made by the act;
81 amending s. 121.35, F.S., relating to the optional
82 retirement program for the State University System;
83 deleting requirement of employee contributions;
84 deleting a provision limiting the payment of benefits
85 before a participant’s termination of employment;
86 conforming provisions to changes made by the act;
87 amending s. 121.355, F.S.; conforming provisions to
88 changes made by the act; amending s. 121.4501, F.S.;
89 changing the name of the Florida Retirement System
90 Investment Plan to the Public Employee Optional
91 Retirement Program; revising and providing
92 definitions; revising the benefit commencement age for
93 a member enrolled on or after a certain date; deleting
94 a provision providing for contribution adjustments as
95 a result of employer errors or corrections; deleting a
96 provision requiring an employer to receive a credit
97 for excess contributions and to reimburse an employee
98 for excess contributions, subject to certain
99 limitations; deleting a provision providing for a
100 pension plan participant to retain his or her prior
101 plan choice after a return to employment; deleting a
102 provision prohibiting a retiree who is reemployed from
103 renewing membership in the plan; deleting a provision
104 limiting certain refunds of contributions which exceed
105 the amount that would have accrued had the member
106 remained in the defined benefit program; revising
107 certain requirements and limitations with respect to
108 contributions; clarifying that participant and
109 employer contributions are earmarked for specified
110 purposes; revising vesting requirements; conforming
111 provisions to changes made by the act; amending s.
112 121.4502, F.S.; changing the name of the Florida
113 Retirement System Investment Plan Trust Fund to the
114 Public Employee Optional Retirement Program Trust
115 Fund; amending s. 121.4503, F.S.; conforming
116 provisions to changes made by the act; amending s.
117 121.571, F.S.; revising requirements for submitting
118 Public Employee Optional Retirement Program
119 contributions; amending s. 121.591, F.S.; revising
120 provisions relating to the payment of benefits prior
121 to a member’s termination of employment; deleting a
122 provision providing for the forfeiture of nonvested
123 accumulations and service credits upon payment of
124 certain vested benefits; deleting a provision
125 providing that the distribution payment method
126 selected by the member or beneficiary is final and
127 irrevocable at the time of benefit distribution;
128 deleting a provision prohibiting a distribution of
129 employee contributions if a qualified domestic
130 relations order is filed against the participant’s
131 account; conforming provisions to changes made by the
132 act; amending s. 121.5911, F.S.; conforming provisions
133 to changes made by the act; amending s. 121.70, F.S.;
134 revising legislative intent; amending s. 121.71, F.S.;
135 deleting provisions requiring that employee
136 contributions be deducted from the employee’s monthly
137 salary, beginning on a specified date, and treated as
138 employer contributions under certain provisions of
139 federal law; deleting a provision clarifying that an
140 employee may not receive such contributions directly;
141 specifying the required employee retirement
142 contribution rates for the membership of each
143 membership class and subclass of the Florida
144 Retirement System; specifying the required employer
145 retirement contribution rates for each membership
146 class and subclass of the Florida Retirement System in
147 order to address unfunded actuarial liabilities of the
148 system; deleting a provision requiring an assessment
149 to be imposed if the employee contributions remitted
150 are less than the amount required under certain
151 circumstances; deleting a provision providing for the
152 employer to receive a credit for excess contributions
153 remitted and to apply such credit against future
154 contributions owed; amending ss. 121.72, 121.73,
155 121.74, 121.75, and 121.77, F.S.; conforming
156 provisions to changes made by the act; amending s.
157 121.78, F.S.; deleting a provision requiring that
158 certain fees be imposed for delinquent payments for
159 retirement contributions; deleting a provision
160 providing that an employer is responsible for
161 recovering any refund provided to an employee in
162 error; revising the terms of an authorized waiver of
163 delinquency; deleting a provision requiring an
164 employer to receive a credit for excess contributions
165 and to reimburse an employee for excess contributions,
166 subject to certain limitations; amending s. 1012.875,
167 F.S.; deleting requirement of employer and employee
168 contributions for members of the State Community
169 College System Optional Retirement Program on a
170 certain date; deleting a provision limiting the
171 payment of benefits prior to a participant’s
172 termination of employment; requiring the state to
173 refund employee contributions plus interest made by
174 participants between July 1, 2011, and June 30, 2012,
175 at the actuarial assumption rate as determined by the
176 Division of Retirement; providing legislative
177 findings; providing that the act fulfills an important
178 state interest; providing an effective date.
179
180 Be It Enacted by the Legislature of the State of Florida:
181
182 Section 1. Paragraph (g) of subsection (2) of section
183 110.123, Florida Statutes, is amended to read:
184 110.123 State group insurance program.—
185 (2) DEFINITIONS.—As used in this section, the term:
186 (g) “Retired state officer or employee” or “retiree” means
187 any state or state university officer or employee who retires
188 under a state retirement system or a state optional annuity or
189 retirement program or is placed on disability retirement, and
190 who was insured under the state group insurance program at the
191 time of retirement, and who begins receiving retirement benefits
192 immediately after retirement from state or state university
193 office or employment. In addition to these requirements, The
194 term also includes any state officer or state employee who
195 retires under the Public Employee Optional Retirement Program
196 Florida Retirement System Investment Plan established under part
197 II of chapter 121 shall be considered a retired state officer or
198 employee or retiree if he or she:
199 1. Meets the age and service requirements to qualify for
200 normal retirement as set forth in s. 121.021(29); or
201 2. Has attained the age specified by s. 72(t)(2)(A)(i) of
202 the Internal Revenue Code and has 6 years of creditable service.
203 Section 2. Section 112.0801, Florida Statutes, is amended
204 to read:
205 112.0801 Group insurance; participation by retired
206 employees.—
207 (1) Any state agency, county, municipality, special
208 district, community college, or district school board that
209 provides life, health, accident, hospitalization, or annuity
210 insurance, or all of any kinds of such insurance, for its
211 officers and employees and their dependents upon a group
212 insurance plan or self-insurance plan shall allow all former
213 personnel who have retired before October 1, 1987, as well as
214 those who retire on or after such date, and their eligible
215 dependents, the option of continuing to participate in such the
216 group insurance plan or self-insurance plan. Retirees and their
217 eligible dependents shall be offered the same health and
218 hospitalization insurance coverage as is offered to active
219 employees at a premium cost of no more than the premium cost
220 applicable to active employees. For the retired employees and
221 their eligible dependents, the cost of any such continued
222 participation in any type of plan or any of the cost thereof may
223 be paid by the employer or by the retired employees. To
224 determine health and hospitalization plan costs, the employer
225 shall commingle the claims experience of the retiree group with
226 the claims experience of the active employees; and, for other
227 types of coverage, the employer may commingle the claims
228 experience of the retiree group with the claims experience of
229 active employees. Retirees covered under Medicare may be
230 experience-rated separately from the retirees not covered by
231 Medicare and from active employees, provided that if the total
232 premium does not exceed that of the active group and coverage is
233 basically the same as for the active group.
234 (2) For purposes of this section, “retiree” means any
235 officer or employee who retires under a state retirement system
236 or a state optional annuity or retirement program or is placed
237 on disability retirement and who begins receiving retirement
238 benefits immediately after retirement from employment. In
239 addition to these requirements, any officer or employee who
240 retires under the Public Employee Optional Retirement Program
241 Florida Retirement System Investment Plan established under part
242 II of chapter 121 is considered a “retired officer or employee”
243 or “retiree” as used in this section if he or she:
244 (a) Meets the age and service requirements to qualify for
245 normal retirement as set forth in s. 121.021(29); or
246 (b) Has attained the age specified by s. 72(t)(2)(A)(i) of
247 the Internal Revenue Code and has 6 years of creditable service
248 the years of service required for vesting as set forth in s.
249 121.021(45).
250 Section 3. Paragraphs (b) and (c) of subsection (2) and
251 paragraph (e) of subsection (3) of section 112.363, Florida
252 Statutes, are amended to read:
253 112.363 Retiree health insurance subsidy.—
254 (2) ELIGIBILITY FOR RETIREE HEALTH INSURANCE SUBSIDY.—
255 (b) For purposes of this section, a person is deemed
256 retired from a state-administered retirement system when he or
257 she terminates employment with all employers participating in
258 the Florida Retirement System as described in s. 121.021(39)
259 and:
260 1. For a participant member of the Public Employee Optional
261 Retirement Program investment plan established under part II of
262 chapter 121, the participant meets the age or service
263 requirements to qualify for normal retirement as set forth in s.
264 121.021(29) and meets the definition of retiree in s.
265 121.4501(2).
266 2. For a member of the Florida Retirement System defined
267 benefit program Pension Plan, or any employee who maintains
268 creditable service under both the defined benefit program
269 pension plan and the Public Employee Optional Retirement Program
270 investment plan, the member begins drawing retirement benefits
271 from the defined benefit program of the Florida Retirement
272 System pension plan.
273 (c)1. Effective July 1, 2001, any person retiring on or
274 after such that date as a member of the Florida Retirement
275 System, including any participant a member of the defined
276 contribution program investment plan administered pursuant to
277 part II of chapter 121, must have satisfied the vesting
278 requirements for his or her membership class under the Florida
279 Retirement System defined benefit program pension plan as
280 administered under part I of chapter 121.
281 2. Notwithstanding the provisions of subparagraph 1.,
282 However, a person retiring due to disability must either qualify
283 for a regular or in-line-of-duty disability benefit as provided
284 in s. 121.091(4) or qualify for a disability benefit under a
285 disability plan established under part II of chapter 121, as
286 appropriate.
287 (3) RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.—
288 (e)1. Beginning July 1, 2001, each eligible retiree of the
289 defined benefit program pension plan of the Florida Retirement
290 System, or, if the retiree is deceased, his or her beneficiary
291 who is receiving a monthly benefit from such retiree’s account
292 and who is a spouse, or a person who meets the definition of
293 joint annuitant in s. 121.021(28), shall receive a monthly
294 retiree health insurance subsidy payment equal to the number of
295 years of creditable service, as defined in s. 121.021(17),
296 completed at the time of retirement multiplied by $5; however,
297 no eligible retiree or beneficiary may receive a subsidy payment
298 of more than $150 or less than $30. If there are multiple
299 beneficiaries, the total payment must may not be greater than
300 the payment to which the retiree was entitled. The health
301 insurance subsidy amount payable to any person receiving the
302 retiree health insurance subsidy payment on July 1, 2001, shall
303 may not be reduced solely by operation of this subparagraph.
304 2. Beginning July 1, 2002, each eligible participant member
305 of the Public Employee Optional Retirement Program investment
306 plan of the Florida Retirement System who has met the
307 requirements of this section, or, if the participant member is
308 deceased, his or her spouse who is the participant’s member’s
309 designated beneficiary, shall receive a monthly retiree health
310 insurance subsidy payment equal to the number of years of
311 creditable service, as provided in this subparagraph, completed
312 at the time of retirement, multiplied by $5; however, no an
313 eligible retiree or beneficiary may not receive a subsidy
314 payment of more than $150 or less than $30. For purposes of
315 determining a participant’s member’s creditable service used to
316 calculate the health insurance subsidy, a participant’s member’s
317 years of service credit or fraction thereof shall be based on
318 the participant’s member’s work year as defined in s.
319 121.021(54). Credit shall must be awarded for a full work year
320 whenever if health insurance subsidy contributions have been
321 made as required by law for each month in the participant’s
322 member’s work year. In addition, all years of creditable service
323 retained under the Florida Retirement System defined benefit
324 program shall Pension Plan must be included as creditable
325 service for purposes of this section. Notwithstanding any other
326 provision in this section to the contrary, the spouse at the
327 time of death shall be is the participant’s member’s beneficiary
328 unless such participant member has designated a different
329 beneficiary subsequent to the participant’s member’s most recent
330 marriage.
331 Section 4. Subsection (1) of section 112.65, Florida
332 Statutes, is amended to read:
333 112.65 Limitation of benefits.—
334 (1) ESTABLISHMENT OF PROGRAM.—The normal retirement benefit
335 or pension payable to a retiree who becomes a member of any
336 retirement system or plan and who has not previously
337 participated in such plan, on or after January 1, 1980, shall
338 may not exceed 100 percent of his or her average final
339 compensation. However, nothing contained in this section shall
340 does not apply to supplemental retirement benefits or to pension
341 increases attributable to cost-of-living increases or
342 adjustments. For the purposes of this section, benefits accruing
343 in individual participant member accounts established under the
344 Public Employee Optional Retirement Program investment plan
345 established in part II of chapter 121 are considered
346 supplemental benefits. As used in this section, the term
347 “average final compensation” means the average of the member’s
348 earnings over a period of time which the governmental entity has
349 established by statute, charter, or ordinance.
350 Section 5. Paragraphs (g) and (h) of subsection (3) of
351 section 121.011, Florida Statutes, are amended to read:
352 121.011 Florida Retirement System.—
353 (3) PRESERVATION OF RIGHTS.—
354 (g) Any member of the Florida Retirement System or any
355 member of an existing system under this chapter who is not
356 retired and who is, has been, or shall be dismissed from
357 employment shall be considered terminated from active membership
358 in such system.
359 1. If such dismissal is rescinded by proper authority or
360 through legal proceedings, the member is eligible to receive
361 retirement service credit for such period of dismissal provided
362 if:
363 a. The dismissal action taken against the member is
364 determined to be incorrect and is negated, the employee is made
365 whole for the period of the dismissal or any portion thereof,
366 and employment is reinstated; and
367 b. The employer pays into the Retirement System Trust Fund
368 the total required employer contributions for the period for
369 which the employee is made whole, plus interest at 6.5 percent
370 compounded annually until full payment is made. The employee
371 shall pay the total employee contributions, plus interest, if
372 applicable. The employer shall pay the interest on employee
373 contributions, if applicable.
374 2. If the dismissal action is subsequently changed to a
375 suspension by proper authority or through legal proceedings, the
376 member is eligible to receive retirement service credit,
377 provided the member’s employment is reinstated, restoring the
378 employee-employer relationship, and the employee pays the total
379 required employer and employee contributions and complies with
380 all requirements in paragraph (e).
381 (h) Effective July 1, 2011, the retirement system shall
382 require employer and employee contributions as provided in s.
383 121.071 and part III of this chapter.
384 Section 6. Subsections (3), (7), and (15), paragraph (a) of
385 subsection (19), paragraph (b) of subsection (22), and
386 subsections (24), (29), (38), (39), (45), (55), and (59) of
387 section 121.021, Florida Statutes, are amended to read:
388 121.021 Definitions.—The following words and phrases as
389 used in this chapter have the respective meanings set forth
390 unless a different meaning is plainly required by the context:
391 (3) “Florida Retirement System” or “System” means the
392 general retirement system established by this chapter to be
393 known and cited as the “Florida Retirement System,”, including,
394 but not limited to, the defined benefit retirement program
395 administered under the provisions of part I of this chapter
396 part, referred to as the “Florida Retirement System Pension
397 Plan” or “pension plan,” and the defined contribution retirement
398 program known as the Public Employee Optional Retirement Program
399 and administered under the provisions of part II of this
400 chapter, referred to as the “Florida Retirement System
401 Investment Plan” or “investment plan.”
402 (7) “City” means any municipality duly incorporated under
403 the laws of the state. “Division” means the Division of
404 Retirement in the department.
405 (15)(a) Until October 1, 1978, “special risk member” means
406 any officer or employee whose application is approved by the
407 administrator and who receives salary payments for work
408 performed as a peace officer; law enforcement officer; police
409 officer; highway patrol officer; custodial employee at a
410 correctional or detention facility; correctional agency employee
411 whose duties and responsibilities involve direct contact with
412 inmates, but excluding secretarial and clerical employees;
413 firefighter; or an employee in any other job in the field of law
414 enforcement or fire protection if the duties of such person are
415 certified as hazardous by his or her employer.
416 (b) Effective October 1, 1978, “special risk member” means
417 a member of the Florida Retirement System who is designated as a
418 special risk member by the division in accordance with s.
419 121.0515. Such member must be employed as a law enforcement
420 officer, a firefighter, or a correctional officer and must meet
421 certain other special criteria as set forth in s. 121.0515.
422 (c) Effective October 1, 1999, “special risk member” means
423 a member of the Florida Retirement System who is designated as a
424 special risk member by the division in accordance with s.
425 121.0515. Such member must be employed as a law enforcement
426 officer, a firefighter, a correctional officer, an emergency
427 medical technician, or a paramedic and must meet certain other
428 special criteria as set forth in s. 121.0515.
429 (d)1. Effective January 1, 2001, “special risk member”
430 includes any member who is employed as a community-based
431 correctional probation officer and meets the special criteria
432 set forth in s. 121.0515(2)(e).
433 2. Effective January 1, 2001, “special risk member”
434 includes any professional health care bargaining unit or non
435 unit member who is employed by the Department of Corrections or
436 the Department of Children and Family Services and meets the
437 special criteria set forth in s. 121.0515(2)(f).
438 (e) Effective July 1, 2001, the term “special risk member”
439 includes any member who is employed as a youth custody officer
440 by the Department of Juvenile Justice and meets the special
441 criteria set forth in s. 121.0515(2)(g).
442 (f) Effective August 1, 2008, “special risk member”
443 includes any member who meets the special criteria for continued
444 membership set forth in s. 121.0515(2)(k). “Special risk member”
445 or “Special Risk Class member” means a member of the Florida
446 Retirement System who meets the eligibility and criteria
447 required under s. 121.0515 for participation in the Special Risk
448 Class.
449 (19) “Prior service” under part I of this chapter means:
450 (a) Service for which the member had credit under one of
451 the existing systems and received a refund of his or her
452 contributions upon termination of employment. Prior service
453 shall also include that includes service between December 1,
454 1970, and the date the system becomes noncontributory for which
455 the member had credit under the Florida Retirement System and
456 received a refund of his or her contributions upon termination
457 of employment.
458 (22) “Compensation” means the monthly salary paid a member
459 by his or her employer for work performed arising from that
460 employment.
461 (b) Under no circumstances shall compensation for a member
462 participating in the defined benefit retirement program pension
463 plan or the Public Employee Optional Retirement Program
464 investment plan of the Florida Retirement System may not
465 include:
466 1. Fees paid professional persons for special or particular
467 services or include salary payments made from a faculty practice
468 plan authorized by the Board of Governors of the State
469 University System for eligible clinical faculty at a college in
470 a state university that has a faculty practice plan; or
471 2. Any bonuses or other payments prohibited from inclusion
472 in the member’s average final compensation and defined in
473 subsection (47).
474 (24)(a) “Average final compensation” means:
475 1. For members initially enrolled before July 1, 2011, the
476 average of the 5 highest fiscal years of compensation for
477 creditable service before retirement, termination, or death. For
478 in-line-of-duty disability benefits, if less than 5 years of
479 creditable service have been completed, the term “average final
480 compensation” means the average annual compensation of the total
481 number of years of creditable service. Each year used in the
482 calculation of to calculate the average final compensation shall
483 commence commences on July 1.
484 2. For members initially enrolled on or after July 1, 2011,
485 the average of the 8 highest fiscal years of compensation for
486 creditable service before retirement, termination, or death. For
487 in-line-of-duty disability benefits, if less than 8 years of
488 creditable service have been completed, the term means the
489 average annual compensation of the total number of years of
490 creditable service. Each year used to calculate average final
491 compensation commences on July 1.
492 (a)(b) The average final compensation shall include
493 includes:
494 1. Accumulated annual leave payments, not to exceed 500
495 hours; and
496 2. All payments defined as compensation in subsection (22).
497 (b)(c) The average final compensation shall does not
498 include:
499 1. Compensation paid to professional persons for special or
500 particular services;
501 2. Payments for accumulated sick leave made due to
502 retirement or termination;
503 3. Payments for accumulated annual leave in excess of 500
504 hours;
505 4. Bonuses as defined in subsection (47);
506 5. Third party payments made on and after July 1, 1990; or
507 6. Fringe benefits (for example, automobile allowances or
508 housing allowances).
509 (29) “Normal retirement date” means the date a member
510 attains normal retirement age and is vested, which is determined
511 as follows:
512 (a)1. If a Regular Class member, a Senior Management
513 Service Class member, or an Elected Officers’ Class member
514 initially enrolled before July 1, 2011:
515 1.a. The first day of the month the member completes 6 or
516 more years of creditable service and attains age 62; or
517 2.b. The first day of the month after following the date
518 the member completes 30 years of creditable service, regardless
519 of age.
520 2. If a Regular Class member, a Senior Management Service
521 Class member, or an Elected Officers’ Class member initially
522 enrolled on or after July 1, 2011:
523 a. The first day of the month the member attains age 65; or
524 b. The first day of the month following the date the member
525 completes 33 years of creditable service, regardless of age.
526 (b)1. If a Special Risk Class member initially enrolled
527 before July 1, 2011:
528 1.a. The first day of the month the member completes 6 or
529 more years of creditable service in the Special Risk Class and
530 attains age 55 and completes the years of creditable service in
531 the Special Risk Class equal to or greater than the years of
532 service required for vesting;
533 2.b. The first day of the month after following the date
534 the member completes 25 years of creditable service in the
535 Special Risk Class, regardless of age; or
536 3.c. The first day of the month after following the date
537 the member completes 25 years of creditable service and attains
538 age 52, which service may include a maximum of 4 years of
539 military service credit as long as if such credit is not claimed
540 under any other system and the remaining years are in the
541 Special Risk Class.
542 2. If a Special Risk Class member initially enrolled on or
543 after July 1, 2011:
544 a. The first day of the month the member attains age 60 and
545 completes the years of creditable service in the Special Risk
546 Class equal to or greater than the years of service required for
547 vesting;
548 b. The first day of the month following the date the member
549 completes 30 years of creditable service in the Special Risk
550 Class, regardless of age; or
551 c. The first day of the month following the date the member
552 completes 30 years of creditable service and attains age 57,
553 which service may include a maximum of 4 years of military
554 service credit if such credit is not claimed under any other
555 system and the remaining years are in the Special Risk Class.
556
557 “Normal retirement age” is attained on the “normal retirement
558 date.”
559 (38) “Continuous service” means creditable service as a
560 member, beginning with the first day of employment with an
561 employer covered under a state-administered retirement system
562 consolidated herein and continuing for as long as the member
563 remains in an employer-employee relationship with an employer
564 covered under this chapter. An absence of 1 calendar month or
565 more from an employer’s payroll shall be considered a break in
566 continuous service, except for periods of absence during which
567 an employer-employee relationship continues to exist and such
568 period of absence is creditable under this chapter or under one
569 of the existing systems consolidated herein. However, a law
570 enforcement officer as defined in s. 121.0515(2)(3)(a) who was a
571 member of a state-administered retirement system under chapter
572 122 or chapter 321 and who resigned and was subsequently
573 reemployed in a law enforcement position within 12 calendar
574 months of such resignation by an employer under such state
575 administered retirement system shall be deemed to have not
576 experienced a break in service. Further, with respect to a
577 state-employed law enforcement officer who meets the criteria
578 specified in s. 121.0515(2)(3)(a), if the absence from the
579 employer’s payroll is the result of a “layoff” as defined in s.
580 110.107 or a resignation to run for an elected office that meets
581 the criteria specified in s. 121.0515(2)(3)(a), no break in
582 continuous service shall be deemed to have occurred if the
583 member is reemployed as a state law enforcement officer or is
584 elected to an office which meets the criteria specified in s.
585 121.0515(2)(3)(a) within 12 calendar months after the date of
586 the layoff or resignation, notwithstanding the fact that such
587 period of layoff or resignation is not creditable service under
588 this chapter. A withdrawal of contributions will constitute a
589 break in service. Continuous service also includes past service
590 purchased under this chapter, provided such service is
591 continuous within this definition and the rules established by
592 the administrator. The administrator may establish
593 administrative rules and procedures for applying this definition
594 to creditable service authorized under this chapter. Any
595 correctional officer, as defined in s. 943.10, whose
596 participation in the state-administered retirement system is
597 terminated due to the transfer of a county detention facility
598 through a contractual agreement with a private entity pursuant
599 to s. 951.062, shall be deemed an employee with continuous
600 service in the Special Risk Class, provided return to employment
601 with the former employer takes place within 3 years due to
602 contract termination or the officer is employed by a covered
603 employer in a special risk position within 1 year after his or
604 her initial termination of employment by such transfer of its
605 detention facilities to the private entity.
606 (39)(a) “Termination” occurs, except as provided in
607 paragraph (b), when a member ceases all employment relationships
608 with an employer participating employers, however:
609 1. For retirements effective before July 1, 2010, if a
610 member is employed by any such employer within the next calendar
611 month, termination shall be deemed not to have occurred. A leave
612 of absence constitutes a continuation of the employment
613 relationship, except that a leave of absence without pay due to
614 disability may constitute termination if such member makes
615 application for and is approved for disability retirement in
616 accordance with s. 121.091(4). The department or state board may
617 require other evidence of termination as it deems necessary.
618 2. For retirements effective on or after July 1, 2010, if a
619 member is employed by any such employer within the next 6
620 calendar months, termination shall be deemed not to have
621 occurred. A leave of absence constitutes a continuation of the
622 employment relationship, except that a leave of absence without
623 pay due to disability may constitute termination if such member
624 makes application for and is approved for disability retirement
625 in accordance with s. 121.091(4). The department or state board
626 may require other evidence of termination as it deems necessary.
627 (b) “Termination” for a member electing to participate in
628 the Deferred Retirement Option Program occurs when the program
629 participant ceases all employment relationships with an employer
630 participating employers in accordance with s. 121.091(13),
631 however:
632 1. For termination dates occurring before July 1, 2010, if
633 the participant member is employed by any such employer within
634 the next calendar month, termination will be deemed not to have
635 occurred, except as provided in s. 121.091(13)(b)4.c. A leave of
636 absence shall constitute a continuation of the employment
637 relationship.
638 2. For termination dates occurring on or after July 1,
639 2010, if the participant member becomes employed by any such
640 employer within the next 6 calendar months, termination will be
641 deemed not to have occurred, except as provided in s.
642 121.091(13)(b)4.c. A leave of absence constitutes a continuation
643 of the employment relationship.
644 (c) Effective July 1, 2011, “termination” for a member
645 receiving a refund of employee contributions occurs when a
646 member ceases all employment relationships with participating
647 employers for 3 calendar months. A leave of absence constitutes
648 a continuation of the employment relationship.
649 (45)(a) “Vested” or “vesting” means the guarantee that a
650 member is eligible to receive a future retirement benefit upon
651 completion of the required years of creditable service for the
652 employee’s class of membership, even though the member may have
653 terminated covered employment before reaching normal or early
654 retirement date. Being vested does not entitle a member to a
655 disability benefit. Provisions governing entitlement to
656 disability benefits are set forth under s. 121.091(4).
657 (b)(a) Effective July 1, 2001, through June 30, 2011, a 6
658 year vesting requirement shall be implemented for the defined
659 benefit program of the Florida Retirement System. Pursuant
660 thereto System Pension Plan:
661 1. Any member employed in a regularly established position
662 on July 1, 2001, who completes or has completed a total of 6
663 years of creditable service shall be is considered vested as
664 described in paragraph (a).
665 2. Any member not employed in a regularly established
666 position on July 1, 2001, shall be deemed vested upon completion
667 of 6 years of creditable service, provided that if such member
668 is employed in a covered position for at least 1 work year after
669 July 1, 2001. However, no a member shall be is not required to
670 complete more years of creditable service than would have been
671 required for that member to vest under retirement laws in effect
672 before July 1, 2001.
673 3. Any member initially enrolled in the Florida Retirement
674 System on July 1, 2001, through June 30, 2011, shall be deemed
675 vested upon completion of 6 years of creditable service.
676 (b) Any member initially enrolled in the Florida Retirement
677 System on or after July 1, 2011, shall be vested upon completion
678 of 8 years of creditable service.
679 (55) “Benefit” means any pension payment, lump-sum or
680 periodic, to a member, retiree, or beneficiary, based partially
681 or entirely on employer contributions or employee contributions,
682 if applicable.
683 (59) “Payee” means a retiree or beneficiary of a retiree
684 who has received or is receiving a retirement benefit payment.
685 Section 7. Paragraphs (b) and (c) of subsection (2) and
686 subsection (3) of section 121.051, Florida Statutes, are amended
687 to read:
688 121.051 Participation in the system.—
689 (2) OPTIONAL PARTICIPATION.—
690 (b)1. The governing body of any municipality, metropolitan
691 planning organization, or special district in the state may
692 elect to participate in the Florida Retirement system upon
693 proper application to the administrator and may cover all or any
694 of its units as approved by the Secretary of Health and Human
695 Services and the administrator. The department shall adopt rules
696 establishing provisions procedures for the submission of
697 documents necessary for such application. Prior to Before being
698 approved for participation in the Florida Retirement System, the
699 governing body of any such a municipality, metropolitan planning
700 organization, or special district that has a local retirement
701 system shall must submit to the administrator a certified
702 financial statement showing the condition of the local
703 retirement system as of a date within 3 months prior to before
704 the proposed effective date of membership in the Florida
705 Retirement System. The statement must be certified by a
706 recognized accounting firm that is independent of the local
707 retirement system. All required documents necessary for
708 extending Florida Retirement System coverage must be received by
709 the department for consideration at least 15 days prior to
710 before the proposed effective date of coverage. If the
711 municipality, metropolitan planning organization, or special
712 district does not comply with this requirement, the department
713 may require that the effective date of coverage be changed.
714 2. Any city A municipality, metropolitan planning
715 organization, or special district that has an existing
716 retirement system covering the employees in the units that are
717 to be brought under the Florida Retirement System may
718 participate only after holding a referendum in which all
719 employees in the affected units have the right to participate.
720 Only those employees electing coverage under the Florida
721 Retirement System by affirmative vote in said the referendum
722 shall be are eligible for coverage under this chapter, and those
723 not participating or electing not to be covered by the Florida
724 Retirement System shall remain in their present systems and are
725 shall not be eligible for coverage under this chapter. After the
726 referendum is held, all future employees shall be are compulsory
727 members of the Florida Retirement System.
728 3. At the time of joining the Florida Retirement System,
729 The governing body of any city a municipality, metropolitan
730 planning organization, or special district complying with
731 subparagraph 1. may elect to provide, or not provide, benefits
732 based on past service of officers and employees as described in
733 s. 121.081(1). However, if such employer elects to provide past
734 service benefits, such benefits must be provided for all
735 officers and employees of its covered group.
736 4. Once this election is made and approved it may not be
737 revoked, except pursuant to subparagraphs 5. and 6., and all
738 present officers and employees electing coverage under this
739 chapter and all future officers and employees shall be are
740 compulsory members of the Florida Retirement System.
741 5. Subject to the conditions set forth in subparagraph 6.,
742 the governing body of any a hospital licensed under chapter 395
743 which is governed by the board of a special district as defined
744 in s. 189.403(1) or by the board of trustees of a public health
745 trust created under s. 154.07, hereinafter referred to as
746 “hospital district,” and which participates in the Florida
747 Retirement system, may elect to cease participation in the
748 system with regard to future employees in accordance with the
749 following procedure:
750 a. No more than 30 days and at least 7 days before adopting
751 a resolution to partially withdraw from the Florida Retirement
752 System and establish an alternative retirement plan for future
753 employees, a public hearing must be held on the proposed
754 withdrawal and proposed alternative plan.
755 b. From 7 to 15 days before such hearing, notice of intent
756 to withdraw, specifying the time and place of the hearing, must
757 be provided in writing to employees of the hospital district
758 proposing partial withdrawal and must be published in a
759 newspaper of general circulation in the area affected, as
760 provided by ss. 50.011-50.031. Proof of publication of such
761 notice shall must be submitted to the Department of Management
762 Services.
763 c. The governing body of any a hospital district seeking to
764 partially withdraw from the system must, before such hearing,
765 have an actuarial report prepared and certified by an enrolled
766 actuary, as defined in s. 112.625(3), illustrating the cost to
767 the hospital district of providing, through the retirement plan
768 that the hospital district is to adopt, benefits for new
769 employees comparable to those provided under the Florida
770 Retirement System.
771 d. Upon meeting all applicable requirements of this
772 subparagraph, and subject to the conditions set forth in
773 subparagraph 6., partial withdrawal from the system and adoption
774 of the alternative retirement plan may be accomplished by
775 resolution duly adopted by the hospital district board. The
776 hospital district board must provide written notice of such
777 withdrawal to the division by mailing a copy of the resolution
778 to the division, postmarked no later than by December 15, 1995.
779 The withdrawal shall take effect January 1, 1996.
780 6. After Following the adoption of a resolution under sub
781 subparagraph 5.d., all employees of the withdrawing hospital
782 district who were participants in members of the Florida
783 Retirement System prior to before January 1, 1996, shall remain
784 as participants in members of the system for as long as they are
785 employees of the hospital district, and all rights, duties, and
786 obligations between the hospital district, the system, and the
787 employees shall remain in full force and effect. Any employee
788 who is hired or appointed on or after January 1, 1996, may not
789 participate in the Florida Retirement System, and the
790 withdrawing hospital district shall have has no obligation to
791 the system with respect to such employees.
792 (c) Employees of public community colleges or charter
793 technical career centers sponsored by public community colleges,
794 designated in s. 1000.21(3), who are members of the Regular
795 Class of the Florida Retirement System and who comply with the
796 criteria set forth in this paragraph and s. 1012.875 may, in
797 lieu of participating in the Florida Retirement System, elect to
798 withdraw from the system altogether and participate in the State
799 Community College System Optional Retirement Program provided by
800 the employing agency under s. 1012.875.
801 1.a. Through June 30, 2001, the cost to the employer for
802 such annuity benefits under the optional retirement program
803 equals the normal cost portion of the employer retirement
804 contribution which would be required if the employee were a
805 member of the pension plan’s Regular Class defined benefit
806 program, plus the portion of the contribution rate required by
807 s. 112.363(8) which would otherwise be assigned to the Retiree
808 Health Insurance Subsidy Trust Fund.
809 b. Effective July 1, 2001, through June 30, 2011, each
810 employer shall contribute on behalf of each participant in
811 member of the optional program an amount equal to 10.43 percent
812 of the participant’s employee’s gross monthly compensation. The
813 employer shall deduct an amount for the administration of the
814 program.
815 c. Effective July 1, 2011, each member shall contribute an
816 amount equal to the employee contribution required under s.
817 121.71(3). The employer shall contribute on behalf of each
818 program member an amount equal to the difference between 10.43
819 percent of the employee’s gross monthly compensation and the
820 employee’s required contribution based on the employee’s gross
821 monthly compensation.
822 d. The employer shall contribute an additional amount to
823 the Florida Retirement System Trust Fund equal to the unfunded
824 actuarial accrued liability portion of the Regular Class
825 contribution rate.
826 2. The decision to participate in an the optional
827 retirement program is irrevocable as long as the employee holds
828 a position eligible for participation, except as provided in
829 subparagraph 3. Any service creditable under the Florida
830 Retirement System is retained after the member withdraws from
831 the system; however, additional service credit in the system may
832 not be earned while a member of the optional retirement program.
833 3. An employee who has elected to participate in the
834 optional retirement program shall have one opportunity, at the
835 employee’s discretion, to transfer from the optional retirement
836 program to the defined benefit program pension plan of the
837 Florida Retirement System or to the Public Employee Optional
838 Retirement Program investment plan established under part II of
839 this chapter, subject to the terms of the applicable optional
840 retirement program contracts.
841 a. If the employee chooses to move to the Public Employee
842 Optional Retirement Program investment plan, any contributions,
843 interest, and earnings creditable to the employee under the
844 State Community College System optional retirement program are
845 retained by the employee in the State Community College System
846 optional retirement program, and the applicable provisions of s.
847 121.4501(4) govern the election.
848 b. If the employee chooses to move to the defined benefit
849 program pension plan of the Florida Retirement System, the
850 employee shall receive service credit equal to his or her years
851 of service under the State Community College System optional
852 retirement program.
853 (I) The cost for such credit is the amount representing the
854 present value of the employee’s accumulated benefit obligation
855 for the affected period of service. The cost shall be calculated
856 as if the benefit commencement occurs on the first date the
857 employee becomes eligible for unreduced benefits, using the
858 discount rate and other relevant actuarial assumptions that were
859 used to value the Florida Retirement System defined benefit
860 Pension plan liabilities in the most recent actuarial valuation.
861 The calculation must include any service already maintained
862 under the defined benefit pension plan in addition to the years
863 under the State Community College System optional retirement
864 program. The present value of any service already maintained
865 must be applied as a credit to total cost resulting from the
866 calculation. The division shall ensure that the transfer sum is
867 prepared using a formula and methodology certified by an
868 enrolled actuary.
869 (II) The employee must transfer from his or her State
870 Community College System optional retirement program account and
871 from other employee moneys as necessary, a sum representing the
872 present value of the employee’s accumulated benefit obligation
873 immediately after following the time of such movement,
874 determined assuming that attained service equals the sum of
875 service in the defined benefit program pension plan and service
876 in the State Community College System optional retirement
877 program.
878 4. Participation in the optional retirement program is
879 limited to employees who satisfy the following eligibility
880 criteria:
881 a. The employee must be is otherwise eligible for
882 membership or renewed membership in the Regular Class of the
883 Florida Retirement System, as provided in s. 121.021(11) and
884 (12) or s. 121.122.
885 b. The employee must be is employed in a full-time position
886 classified in the Accounting Manual for Florida’s Public
887 Community Colleges as:
888 (I) Instructional; or
889 (II) Executive Management, Instructional Management, or
890 Institutional Management, if a and the community college
891 determines that recruiting to fill a vacancy in the position is
892 to be conducted in the national or regional market, and the
893 duties and responsibilities of the position include the
894 formulation, interpretation, or implementation of policies, or
895 the performance of functions that are unique or specialized
896 within higher education and that frequently support the mission
897 of the community college.
898 c. The employee must be is employed in a position not
899 included in the Senior Management Service Class of the Florida
900 Retirement System, as described in s. 121.055.
901 5. Participants in Members of the program are subject to
902 the same reemployment limitations, renewed membership
903 provisions, and forfeiture provisions as are applicable to
904 regular members of the Florida Retirement System under ss.
905 121.091(9), 121.122, and 121.091(5), respectively. A participant
906 member who receives a program distribution funded by employer
907 and required employee contributions shall be is deemed to be
908 retired from a state-administered retirement system if the
909 participant member is subsequently employed with an employer
910 that participates in the Florida Retirement System.
911 6. Eligible community college employees are compulsory
912 members of the Florida Retirement System until, pursuant to s.
913 1012.875, a written election to withdraw from the system and
914 participate in the State Community College System optional
915 retirement program is filed with the program administrator and
916 received by the division.
917 a. A community college employee whose program eligibility
918 results from initial employment must shall be enrolled in the
919 State Community College System optional retirement program
920 retroactive to the first day of eligible employment. The
921 employer and employee retirement contributions paid through the
922 month of the employee plan change shall be transferred to the
923 community college to the employee’s optional program account,
924 and, effective the first day of the next month, the employer
925 shall pay the applicable contributions based upon subparagraph
926 1.
927 b. A community college employee whose program eligibility
928 is due to the subsequent designation of the employee’s position
929 as one of those specified in subparagraph 4., or due to the
930 employee’s appointment, promotion, transfer, or reclassification
931 to a position specified in subparagraph 4., must be enrolled in
932 the program on the first day of the first full calendar month
933 that such change in status becomes effective. The employer and
934 employee retirement contributions paid from the effective date
935 through the month of the employee plan change must be
936 transferred to the community college to the employee’s optional
937 program account, and, effective the first day of the next month,
938 the employer shall pay the applicable contributions based upon
939 subparagraph 1.
940 7. Effective July 1, 2003, through December 31, 2008, any
941 participant member of the State Community College System
942 optional retirement program who has service credit in the
943 defined benefit pension plan of the Florida Retirement System
944 for the period between his or her first eligibility to transfer
945 from the defined benefit pension plan to the optional retirement
946 program and the actual date of transfer may, during employment,
947 transfer to the optional retirement program a sum representing
948 the present value of the accumulated benefit obligation under
949 the defined benefit retirement program for the period of service
950 credit. Upon transfer, all service credit previously earned
951 under the defined benefit program of the Florida Retirement
952 System pension plan during this period is nullified for purposes
953 of entitlement to a future benefit under the defined benefit
954 program of the Florida Retirement System pension plan.
955 (3) SOCIAL SECURITY COVERAGE.—Social security coverage
956 shall be provided for all officers and employees who become
957 members under the provisions of subsection (1) or subsection
958 (2). Any modification of the present agreement with the Social
959 Security Administration, or referendum required under the Social
960 Security Act, for the purpose of providing social security
961 coverage for any member shall be requested by the state agency
962 in compliance with the applicable provisions of the Social
963 Security Act governing such coverage. However, retroactive
964 social security coverage for service prior to before December 1,
965 1970, with the employer shall may not be provided for any a
966 member who was not covered under the agreement as of November
967 30, 1970. The employer-paid employee contributions specified in
968 s. 121.71(3) are subject to taxes imposed under the Federal
969 Insurance Contributions Act, 26 U.S.C. ss. 3101-3128.
970 Section 8. Section 121.0515, Florida Statutes, is amended
971 to read:
972 121.0515 Special Risk Membership Class.—
973 (1) LEGISLATIVE INTENT ESTABLISHMENT OF CLASS.—In creating
974 the Special Risk A separate class of membership within the
975 Florida Retirement System, it is the intent and purpose of the
976 Legislature to be known as the “Special Risk Class,” is
977 established to recognize that persons employed in certain
978 categories of law enforcement, firefighting, criminal detention,
979 and emergency medical care positions are required as one of the
980 essential functions of their positions to perform work that is
981 physically demanding or arduous, or work that requires
982 extraordinary agility and mental acuity, and that such persons,
983 because of diminishing physical and mental faculties, may find
984 that they are not able, without risk to the health and safety of
985 themselves, the public, or their coworkers, to continue
986 performing such duties and thus enjoy the full career and
987 retirement benefits enjoyed by persons employed in other
988 positions membership classes and that, if they find it
989 necessary, due to the physical and mental limitations of their
990 age, to retire at an earlier age and usually with less service,
991 they will suffer an economic deprivation therefrom. Therefore,
992 as a means of recognizing To address the peculiar and special
993 problems of this class of employees, it is the intent and
994 purpose of the Legislature to establish a class of retirement
995 membership is established that awards more retirement credit per
996 year of service than that awarded to other employees; however,
997 nothing contained herein shall require ineligibility for Special
998 Risk Class membership upon reaching age 55.
999 (2) MEMBERSHIP.—
1000 (a) Until October 1, 1978, “special risk member” means any
1001 officer or employee whose application is approved by the
1002 administrator and who receives salary payments for work
1003 performed as a peace officer; law enforcement officer; police
1004 officer; highway patrol officer; custodial employee at a
1005 correctional or detention facility; correctional agency employee
1006 whose duties and responsibilities involve direct contact with
1007 inmates, but excluding secretarial and clerical employees;
1008 firefighter; or an employee in any other job in the field of law
1009 enforcement or fire protection if the duties of such person are
1010 certified as hazardous by his or her employer.
1011 (b) Effective October 1, 1978, through September 30, 1999,
1012 “special risk member” means a member of the Florida Retirement
1013 System who is designated as a special risk member by the
1014 division in accordance with this section. Such member must be
1015 employed as a law enforcement officer, a firefighter, or a
1016 correctional officer and must meet certain other special
1017 criteria as set forth in this section.
1018 (c) Effective October 1, 1999, “special risk member” means
1019 a member of the Florida Retirement System who is designated as a
1020 special risk member by the division in accordance with this
1021 section. Such member must be employed as a law enforcement
1022 officer, a firefighter, a correctional officer, an emergency
1023 medical technician, or a paramedic and must meet certain other
1024 special criteria as set forth in this section.
1025 (d) Effective January 1, 2001, “special risk member”
1026 includes:
1027 1. Any member who is employed as a community-based
1028 correctional probation officer and meets the special criteria
1029 set forth in paragraph (3)(e).
1030 2. Any professional health care bargaining unit or non-unit
1031 member who is employed by the Department of Corrections or the
1032 Department of Children and Family Services and meets the special
1033 criteria set forth in paragraph (3)(f).
1034 (e) Effective July 1, 2001, “special risk member” includes
1035 any member who is employed as a youth custody officer by the
1036 Department of Juvenile Justice and meets the special criteria
1037 set forth in paragraph (3)(g).
1038 (f) Effective October 1, 2005, through June 30, 2008, the
1039 member must be employed by a law enforcement agency or medical
1040 examiner’s office in a forensic discipline and meet the special
1041 criteria set forth in paragraph (3)(h).
1042 (g) Effective July 1, 2008, the member must be employed by
1043 the Department of Law Enforcement in the crime laboratory or by
1044 the Division of State Fire Marshal in the forensic laboratory
1045 and meet the special criteria set forth in paragraph (3)(i).
1046 (h) Effective July 1, 2008, the member must be employed by
1047 a local government law enforcement agency or medical examiner’s
1048 office and meet the special criteria set forth in paragraph
1049 (3)(j).
1050 (i) Effective August 1, 2008, “special risk member”
1051 includes any member who meets the special criteria for continued
1052 membership set forth in paragraph (3)(k).
1053 (2)(3) CRITERIA.—A member, to be designated as a special
1054 risk member, must meet the following criteria:
1055 (a) Effective October 1, 1978, The member must be employed
1056 as a law enforcement officer and be certified, or required to be
1057 certified, in compliance with s. 943.1395; however, sheriffs and
1058 elected police chiefs shall be are excluded from meeting the
1059 certification requirements of this paragraph. In addition, the
1060 member’s duties and responsibilities must include the pursuit,
1061 apprehension, and arrest of law violators or suspected law
1062 violators; or as of July 1, 1982, the member must be an active
1063 member of a bomb disposal unit whose primary responsibility is
1064 the location, handling, and disposal of explosive devices; or
1065 the member must be the supervisor or command officer of a member
1066 or members who have such responsibilities; provided, however,.
1067 administrative support personnel, including, but not limited to,
1068 those whose primary duties and responsibilities are in
1069 accounting, purchasing, legal, and personnel, shall are not be
1070 included;
1071 (b) Effective October 1, 1978, The member must be employed
1072 as a firefighter and be certified, or required to be certified,
1073 in compliance with s. 633.35 and be employed solely within the
1074 fire department of a local government employer or an agency of
1075 state government with firefighting responsibilities. In
1076 addition, the member’s duties and responsibilities must include
1077 on-the-scene fighting of fires; as of October 1, 2001, fire
1078 prevention, or firefighter training; as of October 1, 2001,
1079 direct supervision of firefighting units, fire prevention, or
1080 firefighter training; or as of July 1, 2001, aerial firefighting
1081 surveillance performed by fixed-wing aircraft pilots employed by
1082 the Division of Forestry of the Department of Agriculture and
1083 Consumer Services; or the member must be the supervisor or
1084 command officer of a member or members who have such
1085 responsibilities; provided, however,. administrative support
1086 personnel, including, but not limited to, those whose primary
1087 duties and responsibilities are in accounting, purchasing,
1088 legal, and personnel, shall are not be included and further
1089 provided that. all periods of creditable service in fire
1090 prevention or firefighter training, or as the supervisor or
1091 command officer of a member or members who have such
1092 responsibilities, and for which the employer paid the special
1093 risk contribution rate, shall be are included;
1094 (c) Effective October 1, 1978, The member must be employed
1095 as a correctional officer and be certified, or required to be
1096 certified, in compliance with s. 943.1395. In addition, the
1097 member’s primary duties and responsibilities must be the
1098 custody, and physical restraint when necessary, of prisoners or
1099 inmates within a prison, jail, or other criminal detention
1100 facility, or while on work detail outside the facility, or while
1101 being transported; or as of July 1, 1984, the member must be the
1102 supervisor or command officer of a member or members who have
1103 such responsibilities; provided, however,. administrative
1104 support personnel, including, but not limited to, those whose
1105 primary duties and responsibilities are in accounting,
1106 purchasing, legal, and personnel, shall are not be included;
1107 however, wardens and assistant wardens, as defined by rule,
1108 shall participate in the Special Risk Class are included;
1109 (d) Effective October 1, 1999, The member must be employed
1110 by a licensed Advance Life Support (ALS) or Basic Life Support
1111 (BLS) employer as an emergency medical technician or a paramedic
1112 and be certified in compliance with s. 401.27. In addition, the
1113 member’s primary duties and responsibilities must include on
1114 the-scene emergency medical care or as of October 1, 2001,
1115 direct supervision of emergency medical technicians or
1116 paramedics, or the member must be the supervisor or command
1117 officer of one or more members who have such responsibility.
1118 However, administrative support personnel, including, but not
1119 limited to, those whose primary responsibilities are in
1120 accounting, purchasing, legal, and personnel, shall are not be
1121 included;
1122 (e) Effective January 1, 2001, The member must be employed
1123 as a community-based correctional probation officer and be
1124 certified, or required to be certified, in compliance with s.
1125 943.1395. In addition, the member’s primary duties and
1126 responsibilities must be the supervised custody, surveillance,
1127 control, investigation, and counseling of assigned inmates,
1128 probationers, parolees, or community controllees within the
1129 community; or the member must be the supervisor of a member or
1130 members who have such responsibilities. Administrative support
1131 personnel, including, but not limited to, those whose primary
1132 duties and responsibilities are in accounting, purchasing, legal
1133 services, and personnel management, shall are not be included;
1134 however, probation and parole circuit and deputy circuit
1135 administrators shall participate in the Special Risk Class are
1136 included;
1137 (f) Effective January 1, 2001, The member must be employed
1138 in one of the following classes and must spend at least 75
1139 percent of his or her time performing duties which involve
1140 contact with patients or inmates in a correctional or forensic
1141 facility or institution:
1142 1. Dietitian (class codes 5203 and 5204);
1143 2. Public health nutrition consultant (class code 5224);
1144 3. Psychological specialist (class codes 5230 and 5231);
1145 4. Psychologist (class code 5234);
1146 5. Senior psychologist (class codes 5237 and 5238);
1147 6. Regional mental health consultant (class code 5240);
1148 7. Psychological Services Director—DCF (class code 5242);
1149 8. Pharmacist (class codes 5245 and 5246);
1150 9. Senior pharmacist (class codes 5248 and 5249);
1151 10. Dentist (class code 5266);
1152 11. Senior dentist (class code 5269);
1153 12. Registered nurse (class codes 5290 and 5291);
1154 13. Senior registered nurse (class codes 5292 and 5293);
1155 14. Registered nurse specialist (class codes 5294 and
1156 5295);
1157 15. Clinical associate (class codes 5298 and 5299);
1158 16. Advanced registered nurse practitioner (class codes
1159 5297 and 5300);
1160 17. Advanced registered nurse practitioner specialist
1161 (class codes 5304 and 5305);
1162 18. Registered nurse supervisor (class codes 5306 and
1163 5307);
1164 19. Senior registered nurse supervisor (class codes 5308
1165 and 5309);
1166 20. Registered nursing consultant (class codes 5312 and
1167 5313);
1168 21. Quality management program supervisor (class code
1169 5314);
1170 22. Executive nursing director (class codes 5320 and 5321);
1171 23. Speech and hearing therapist (class code 5406); or
1172 24. Pharmacy manager (class code 5251);
1173 (g) Effective July 1, 2001, The member must be employed as
1174 a youth custody officer and be certified, or required to be
1175 certified, in compliance with s. 943.1395. In addition, the
1176 member’s primary duties and responsibilities must be the
1177 supervised custody, surveillance, control, investigation,
1178 apprehension, arrest, and counseling of assigned juveniles
1179 within the community;
1180 (h) Effective October 1, 2005, through June 30, 2008, the
1181 member must be employed by a law enforcement agency or medical
1182 examiner’s office in a forensic discipline recognized by the
1183 International Association for Identification and must qualify
1184 for active membership in the International Association for
1185 Identification. The member’s primary duties and responsibilities
1186 must include the collection, examination, preservation,
1187 documentation, preparation, or analysis of physical evidence or
1188 testimony, or both, or the member must be the direct supervisor,
1189 quality management supervisor, or command officer of one or more
1190 individuals with such responsibility. Administrative support
1191 personnel, including, but not limited to, those whose primary
1192 responsibilities are clerical or in accounting, purchasing,
1193 legal, and personnel, shall are not be included;
1194 (i) Effective July 1, 2008, the member must be employed by
1195 the Department of Law Enforcement in the crime laboratory or by
1196 the Division of State Fire Marshal in the forensic laboratory in
1197 one of the following classes:
1198 1. Forensic technologist (class code 8459);
1199 2. Crime laboratory technician (class code 8461);
1200 3. Crime laboratory analyst (class code 8463);
1201 4. Senior crime laboratory analyst (class code 8464);
1202 5. Crime laboratory analyst supervisor (class code 8466);
1203 6. Forensic chief (class code 9602); or
1204 7. Forensic services quality manager (class code 9603);
1205 (j) Effective July 1, 2008, the member must be employed by
1206 a local government law enforcement agency or medical examiner’s
1207 office and must spend at least 65 percent of his or her time
1208 performing duties that involve the collection, examination,
1209 preservation, documentation, preparation, or analysis of human
1210 tissues or fluids or physical evidence having potential
1211 biological, chemical, or radiological hazard or contamination,
1212 or use chemicals, processes, or materials that may have
1213 carcinogenic or health-damaging properties in the analysis of
1214 such evidence, or the member must be the direct supervisor of
1215 one or more individuals having such responsibility. If a special
1216 risk member changes to another position within the same agency,
1217 he or she must submit a complete application as provided in
1218 paragraph (3)(4)(a); or
1219 (k) The member must have already qualified for and be
1220 actively participating in special risk membership under
1221 paragraph (a), paragraph (b), or paragraph (c), must have
1222 suffered a qualifying injury as defined in this paragraph, must
1223 not be receiving disability retirement benefits as provided in
1224 s. 121.091(4), and must satisfy the requirements of this
1225 paragraph.
1226 1. The ability to qualify for the class of membership
1227 defined in s. 121.021(15)(f) shall occur paragraph (2)(f) occurs
1228 when two licensed medical physicians, one of whom is a primary
1229 treating physician of the member, certify the existence of the
1230 physical injury and medical condition that constitute a
1231 qualifying injury as defined in this paragraph and that the
1232 member has reached maximum medical improvement after August 1,
1233 2008. The certifications from the licensed medical physicians
1234 must include, at a minimum, that the injury to the special risk
1235 member has resulted in a physical loss, or loss of use, of at
1236 least two of the following: left arm, right arm, left leg, or
1237 right leg; and:
1238 a. That this physical loss or loss of use is total and
1239 permanent, except in the event that the loss of use is due to a
1240 physical injury to the member’s brain, in which event the loss
1241 of use is permanent with at least 75 percent loss of motor
1242 function with respect to each arm or leg affected.
1243 b. That this physical loss or loss of use renders the
1244 member physically unable to perform the essential job functions
1245 of his or her special risk position.
1246 c. That, notwithstanding this physical loss or loss of use,
1247 the individual is able to perform the essential job functions
1248 required by the member’s new position, as provided in
1249 subparagraph 3.
1250 d. That use of artificial limbs is either not possible or
1251 does not alter the member’s ability to perform the essential job
1252 functions of the member’s position.
1253 e. That the physical loss or loss of use is a direct result
1254 of a physical injury and not a result of any mental,
1255 psychological, or emotional injury.
1256 2. For the purposes of this paragraph, “qualifying injury”
1257 means an injury sustained in the line of duty, as certified by
1258 the member’s employing agency, by a special risk member that
1259 does not result in total and permanent disability as defined in
1260 s. 121.091(4)(b). An injury is a qualifying injury when if the
1261 injury is a physical injury to the member’s physical body
1262 resulting in a physical loss, or loss of use, of at least two of
1263 the following: left arm, right arm, left leg, or right leg.
1264 Notwithstanding anything in any other provision of this section
1265 to the contrary, an injury that would otherwise qualify as a
1266 qualifying injury shall is not be considered a qualifying injury
1267 if and when the member ceases employment with the employer for
1268 whom he or she was providing special risk services on the date
1269 the injury occurred.
1270 3. The new position, as described in sub-subparagraph 1.c.,
1271 that is required for qualification as a special risk member
1272 under this paragraph is not required to be a position with
1273 essential job functions that entitle an individual to special
1274 risk membership. Whether a new position as described in sub
1275 subparagraph 1.c. exists and is available to the special risk
1276 member is a decision to be made solely by the employer in
1277 accordance with its hiring practices and applicable law.
1278 4. This paragraph does not grant or create additional
1279 rights for any individual to continued employment or to be hired
1280 or rehired by his or her employer that are not already provided
1281 within the Florida Statutes, the State Constitution, the
1282 Americans with Disabilities Act, if applicable, or any other
1283 applicable state or federal law.
1284 (3)(4) PROCEDURE FOR DESIGNATING.—
1285 (a) Any member of the Florida Retirement System employed by
1286 a county, city municipality, or special district who feels that
1287 he or she his or her position meets the criteria set forth in
1288 this section for membership in the Special Risk Class may
1289 request that his or her employer submit an application to the
1290 department requesting that the department designate him or her
1291 as a Special Risk member. If the employer agrees that the member
1292 meets the requirements for Special Risk Class membership, the
1293 employer shall submit an application to the department on behalf
1294 of the employee containing a certification that the member meets
1295 the criteria for Special Risk Class membership set forth in this
1296 section and such other supporting documentation as may be
1297 required by administrative rule. The department shall, within 90
1298 days, either designate or refuse to designate the member as a
1299 special risk member. If the employer declines to submit the
1300 member’s application to the department or if the department does
1301 not designate the member as a special risk member, the member or
1302 the employer may appeal to the State Retirement Commission, as
1303 provided in s. 121.23, for designation as a special risk member.
1304 A member who receives a final affirmative ruling pursuant to
1305 such appeal for Special Risk membership shall have Special Risk
1306 Class membership retroactive to the date such member would have
1307 had Special Risk Class membership had such membership been
1308 approved by the employer and the department, as determined by
1309 the department, and the employer contributions shall be paid in
1310 full within 1 year after such final ruling.
1311 (b)1. Applying the criteria set forth in this section, the
1312 Department of Management Services shall specify which current
1313 and newly created classes of positions under the uniform
1314 classification plan established pursuant to chapter 110 entitle
1315 the incumbents of positions in those classes to membership in
1316 the Special Risk Class. Only employees employed in the classes
1317 so specified shall be special risk members.
1318 2. When If a class is not specified by the department as
1319 provided in subparagraph 1., the employing agency may petition
1320 the State Retirement Commission for approval in accordance with
1321 s. 121.23.
1322 (4)(5) REMOVAL OF SPECIAL RISK CLASS MEMBERSHIP.—
1323 (a) Any member who is a special risk member on October 1,
1324 1978, and who fails to meet the criteria for Special Risk Class
1325 membership established by this section shall have his or her
1326 special risk designation removed and thereafter shall be a
1327 regular member and shall earn only regular membership credit.
1328 The department shall have the authority to may review the
1329 special risk designation of members to determine whether or not
1330 those members continue to meet the criteria for Special Risk
1331 Class membership.
1332 (b) Any member who is a special risk member on July 1,
1333 2008, and who became eligible to participate under paragraph
1334 (2)(3)(h) but fails to meet the criteria for Special Risk Class
1335 membership established by paragraph (2)(3)(i) or paragraph
1336 (2)(3)(j) shall have his or her special risk designation removed
1337 and thereafter shall be a Regular Class member and earn only
1338 Regular Class membership credit. The department may review the
1339 special risk designation of members to determine whether or not
1340 those members continue to meet the criteria for Special Risk
1341 Class membership.
1342 (5)(6) CREDIT FOR PAST SERVICE.—A special risk member may
1343 purchase retirement credit in the Special Risk Class based upon
1344 past service, and may upgrade retirement credit for such past
1345 service, to the extent of 2 percent of the member’s average
1346 monthly compensation as specified in s. 121.091(1)(a) for such
1347 service as follows:
1348 (a) The member may purchase special risk credit for past
1349 service with a city municipality or special district which has
1350 elected to join the Florida Retirement System, or with a
1351 participating agency to which a member’s governmental unit was
1352 transferred, merged, or consolidated as provided in s.
1353 121.081(1)(f), if the member was employed with the city
1354 municipality or special district at the time it commenced
1355 participating in the Florida Retirement System or with the
1356 governmental unit at the time of its transfer, merger, or
1357 consolidation with the participating agency. The service must
1358 satisfy the criteria set forth in subsection (2) (3) for Special
1359 Risk Class membership as a law enforcement officer, firefighter,
1360 or correctional officer; however, no a certificate or waiver of
1361 certificate of compliance with s. 943.1395 or s. 633.35 shall be
1362 is not required for such service.
1363 (b) Contributions for upgrading the additional special risk
1364 credit pursuant to this subsection shall must be equal to the
1365 difference in the employer and, if applicable, employee
1366 contributions paid and the special risk percentage rate of gross
1367 salary in effect at the time of purchase for the period being
1368 claimed, plus interest thereon at the rate of 4 percent a year
1369 compounded annually from the date of such service until July 1,
1370 1975, and 6.5 percent a year thereafter until the date of
1371 payment. This past service may be purchased by the member or by
1372 the employer on behalf of the member.
1373 (6)(7) CREDIT FOR PRIOR SERVICE.—A special risk member who
1374 has creditable service with an employer under chapter 122 or
1375 chapter 321, or was employed as a correctional counselor with
1376 the Department of Corrections between December 1, 1970, and
1377 September 30, 1979, in a position which that satisfies the
1378 criteria provided for in subsection (2) (3) for Special Risk
1379 Class membership except the requirement for a certificate or
1380 waiver of certificate, shall have those years of service counted
1381 towards the attainment of the normal retirement date as a
1382 special risk member under this chapter. The percentage value of
1383 each such year of creditable service under chapter 122, chapter
1384 321, or as a correctional counselor shall may not change as a
1385 result of the application of this subsection. A special risk
1386 member who has taken a refund of contributions for such
1387 creditable service under chapter 122 or chapter 321 and has
1388 reclaimed it as prior service credit under this chapter shall be
1389 permitted to have such creditable service counted towards the
1390 attainment of the normal retirement date for the Special Risk
1391 Class of membership under this chapter.
1392 (7)(8) RETENTION OF SPECIAL RISK NORMAL RETIREMENT DATE
1393 SPECIAL RISK ADMINISTRATIVE SUPPORT CLASS.—
1394 (a) A special risk member who is moved or reassigned to a
1395 nonspecial risk law enforcement, firefighting, correctional, or
1396 emergency medical care administrative support position with the
1397 same agency, or who is subsequently employed in such a position
1398 with within any law enforcement, firefighting, correctional, or
1399 emergency medical care agency under the Florida Retirement
1400 System, shall participate in the Special Risk Administrative
1401 Support Class and shall earn credit for such service at the same
1402 percentage rate as that earned by a regular member.
1403 Notwithstanding the provisions of subsection (4) (5), service in
1404 such an administrative support position shall, for purposes of
1405 s. 121.091, apply applies toward satisfaction of the special
1406 risk normal retirement date, as defined in s. 121.021(29)(b)
1407 provided that, if, while in such position, the member remains
1408 certified as a law enforcement officer, firefighter,
1409 correctional officer, emergency medical technician, or
1410 paramedic; remains subject to reassignment at any time to a
1411 position qualifying for special risk membership; and completes
1412 an aggregate of 6 or more the years of service as a designated
1413 special risk member prior to before retirement which is equal to
1414 or greater than the years of service required to be vested.
1415 (b) Upon application by a member, the provisions of this
1416 subsection shall apply, with respect to such member,
1417 retroactively to October 1, 1978, provided that if the member
1418 was removed from the Special Risk Class effective October 1,
1419 1978, due to a change in special risk criteria as a result of
1420 the enactment of chapter 78-308, Laws of Florida, or was
1421 reassigned or employed for training or career development or to
1422 fill a critical agency need.
1423 (c) The department shall adopt such rules as are required
1424 to administer this subsection.
1425 (d) Notwithstanding any other provision of this subsection
1426 to the contrary, this subsection does not apply to any special
1427 risk member who qualifies for continued membership pursuant to
1428 the provisions of paragraph (2)(3)(k).
1429 (8)(9) RESTORATION OF SPECIAL RISK CREDIT FOR SPECIFIED
1430 PERIOD OF EMPLOYMENT.—A special risk member who was removed from
1431 the Special Risk Class effective October 1978, for the sole
1432 reason that he or she did not possess the required certificate
1433 or temporary waiver of certificate, and who obtained
1434 certification and was approved for Special Risk Class membership
1435 on or before June 30, 1982, shall be permitted to may have
1436 special risk credit restored for that period upon:
1437 (a) Certification by his or her employer that all
1438 requirements for Special Risk Class membership except the
1439 requirement for certification or temporary waiver of
1440 certification were met; and
1441 (b) Payment of contributions equal to the difference in the
1442 contributions that were paid during the period and the
1443 contributions required for special risk members during that
1444 period, plus 6.5 percent interest thereon, compounded each June
1445 30 from date of service until date of payment.
1446
1447 This credit may be purchased by the member or by the employer on
1448 behalf of the member.
1449 (9)(10) CREDIT FOR UPGRADED SERVICE.—
1450 (a) Any member of the Special Risk Class who has earned
1451 creditable service through September 30, 1999, in another
1452 membership class of the Florida Retirement System as an
1453 emergency medical technician or paramedic, which service is
1454 within the purview of the Special Risk Class, may purchase
1455 additional retirement credit to upgrade such service to Special
1456 Risk Class service, to the extent of the percentages of the
1457 member’s average final compensation provided in s.
1458 121.091(1)(a)2. Contributions for upgrading such service to
1459 Special Risk Class credit under this subsection shall must be
1460 equal to the difference in the contributions paid and the
1461 Special Risk Class contribution rate as a percentage of gross
1462 salary in effect for the period being claimed, plus interest
1463 thereon at the rate of 6.5 percent a year, compounded annually
1464 until the date of payment. This service credit may be purchased
1465 by the employer on behalf of the member.
1466 (b) Any member of the Special Risk Class who has earned
1467 creditable service through September 30, 2001, in another
1468 membership class of the Florida Retirement System whose
1469 responsibilities included fire prevention or firefighter
1470 training, which service is within the purview of the Special
1471 Risk Class, may purchase additional retirement credit to upgrade
1472 such service to Special Risk Class service, to the extent of the
1473 percentages of the member’s average final compensation provided
1474 in s. 121.091(1)(a)2. Contributions for upgrading such service
1475 to Special Risk Class credit under this subsection shall must be
1476 equal to the difference in the contributions paid and the
1477 Special Risk Class contribution rate as a percentage of gross
1478 salary in effect for the period being claimed, plus interest
1479 thereon at the rate of 6.5 percent a year, compounded annually
1480 until the date of payment. This service credit may be purchased
1481 by the employer on behalf of the member.
1482 (c) Any member of the Special Risk Class who has earned
1483 creditable service through June 30, 2008, in another membership
1484 class of the Florida Retirement System in a position with the
1485 Department of Law Enforcement or the Division of State Fire
1486 Marshal and became covered by the Special Risk Class as
1487 described in paragraph (2)(3)(i), or with a local government law
1488 enforcement agency or medical examiner’s office and became
1489 covered by the Special Risk Class as described in paragraph
1490 (2)(3)(j), which service is within the purview of the Special
1491 Risk Class, and is employed in such position on or after July 1,
1492 2008, may purchase additional retirement credit to upgrade such
1493 service to Special Risk Class service, to the extent of the
1494 percentages of the member’s average final compensation provided
1495 in s. 121.091(1)(a)2. The cost for such credit shall must be an
1496 amount representing the actuarial accrued liability for the
1497 difference in accrual value during the affected period of
1498 service. The cost shall be calculated using the discount rate
1499 and other relevant actuarial assumptions that were used to value
1500 the Florida Retirement System Defined Benefit Pension Plan
1501 liabilities in the most recent actuarial valuation. The division
1502 shall ensure that the transfer sum is prepared using a formula
1503 and methodology certified by an enrolled actuary. The cost must
1504 be paid immediately upon notification by the division. The local
1505 government employer may purchase the upgraded service credit on
1506 behalf of the member if the member has been employed by that
1507 employer for at least 3 years.
1508 Section 9. Paragraphs (a) and (d) of subsection (4),
1509 paragraphs (b), (c), and (d) of subsection (7), and subsections
1510 (8) and (10) of section 121.052, Florida Statutes, are amended
1511 to read:
1512 121.052 Membership class of elected officers.—
1513 (4) PARTICIPATION BY ELECTED OFFICERS SERVING A SHORTENED
1514 TERM DUE TO APPORTIONMENT, FEDERAL INTERVENTION, ETC.—
1515 (a) Any A duly elected officer whose term of office was
1516 shortened by legislative or judicial apportionment pursuant to
1517 the provisions of s. 16, Art. III of the State Constitution may,
1518 after the term of office to which he or she was elected is
1519 completed, pay into the Florida Retirement System Trust Fund the
1520 amount of contributions that would have been made by the officer
1521 or the officer’s employer on his or her behalf, plus 4 percent
1522 interest compounded annually from the date he or she left office
1523 until July 1, 1975, and 6.5 percent interest compounded annually
1524 thereafter, and may receive service credit for the length of
1525 time the officer would have served if such term had not been
1526 shortened by apportionment.
1527 (d)1. Any justice or judge, or any retired justice or judge
1528 who retired before July 1, 1993, who has attained the age of 70
1529 years and who is prevented under s. 8, Art. V of the State
1530 Constitution from completing his or her term of office because
1531 of age may elect to purchase credit for all or a portion of the
1532 months he or she would have served during the remainder of the
1533 term of office but; however, he or she may claim those months
1534 only after the date the service would have occurred. The justice
1535 or judge must pay into the Florida Retirement System Trust Fund
1536 the amount of contributions that would have been made by the
1537 employer on his or her behalf for the period of time being
1538 claimed, plus 6.5 percent interest thereon compounded each June
1539 30 from the date he or she left office, in order to receive
1540 service credit in this class for the period of time being
1541 claimed. After the date the service would have occurred, and
1542 upon payment of the required contributions, the retirement
1543 benefit of a retired justice or judge will shall be adjusted
1544 prospectively to include this the additional creditable service;
1545 however, such adjustment may be made only once.
1546 2. Any justice or judge who does not seek election to a
1547 subsequent term of office because he or she would be prevented
1548 under s. 8, Art. V of the State Constitution from completing
1549 such term of office upon attaining the age of 70 years may elect
1550 to purchase service credit for service as a temporary judge as
1551 assigned by the court if the temporary assignment follows
1552 immediately follows the last full term of office served and the
1553 purchase is limited to the number of months of service needed to
1554 vest retirement benefits. To receive retirement credit for such
1555 temporary service beyond termination, the justice or judge must
1556 pay into the Florida Retirement System Trust Fund the amount of
1557 contributions that would have been made by the justice or judge
1558 and the employer on his or her behalf had he or she continued in
1559 office for the period of time being claimed, plus 6.5 percent
1560 interest thereon compounded each June 30 from the date he or she
1561 left office.
1562 (7) CONTRIBUTIONS.—
1563 (b) The employer paying the salary of a member of the
1564 Elected Officers’ Class shall contribute an amount as specified
1565 in this subsection or s. 121.71, as appropriate, which shall
1566 constitute the entire employer retirement contribution with
1567 respect to such member. The employer shall also withhold one
1568 half of the entire contribution of the member required for
1569 social security coverage. Effective July 1, 2011, each member of
1570 the Elected Officers’ Class shall pay employee contributions as
1571 specified in s. 121.71.
1572 (c) If a member of the Elected Officers’ Class ceases to
1573 fill an office covered by this class for 3 calendar months for
1574 any reason other than retirement and has not been employed in
1575 any capacity with any participating employer for 3 calendar
1576 months, the member may receive a refund of all contributions he
1577 or she has made to the pension plan, subject to the restrictions
1578 otherwise provided in this chapter. Partial refunds are not
1579 permitted. The refund shall not include any interest earnings on
1580 the contributions for a member of the pension plan. Employer
1581 contributions made on behalf of the member are not refundable. A
1582 member may not receive a refund of employee contributions if a
1583 pending or an approved qualified domestic relations order is
1584 filed against the member’s retirement account. By obtaining a
1585 refund of contributions, a member waives all rights under the
1586 Florida Retirement System and the health insurance subsidy
1587 provided under s. 112.363 to the service credit represented by
1588 the refunded contributions, except the right to purchase his or
1589 her prior service credit in accordance with s. 121.081(2).
1590 (c)(d) The following table states the required employer
1591 contribution on behalf of each member of the Elected Officers’
1592 Class in terms of a percentage of the member’s gross
1593 compensation. Such contribution constitutes the entire health
1594 insurance subsidy contribution with respect to each such member.
1595 A change in the contribution rate is effective with the first
1596 salary paid on or after the beginning date of the change. The
1597 retiree health insurance subsidy contribution rate is as
1598 follows:
1599 Dates of Contribution Rate Changes ContributionRate
1600 October 1, 1987, through December 31, 1988 0.24%
1601 January 1, 1989, through December 31, 1993 0.48%
1602 January 1, 1994, through December 31, 1994 0.56%
1603 January 1, 1995, through June 30, 1998 0.66%
1604 July 1, 1998, through June 30, 2001 0.94%
1605 Effective July 1, 2001 1.11%
1606 Such contributions and accompanying payroll data are due and
1607 payable no later than the 5th working day of the month
1608 immediately following the month during which the payroll period
1609 ended and shall be deposited by the administrator in the Retiree
1610 Health Insurance Subsidy Trust Fund.
1611 (8) NORMAL RETIREMENT DATE; VESTING REQUIREMENT.—A member
1612 of the Elected Officers’ Class shall have the same normal
1613 retirement date and vesting requirement, as those terms are
1614 defined in s. 121.021(29) and (45), for a member of the regular
1615 class of the Florida Retirement System. Any public service
1616 commissioner who was removed from the Elected State Officers’
1617 Class on July 1, 1979, after attaining at least 8 years of
1618 creditable service in that class shall be is considered to have
1619 reached the normal retirement date upon attaining age 62 as
1620 required in s. 121.021(29)(a).
1621 (10) ACCRUED SERVICE VALUE.—A member of the Elected
1622 Officers’ Class who is a Supreme Court justice, district court
1623 of appeal judge, circuit judge, or county court judge shall
1624 receive judicial retirement credit of 3 1/3 percent of average
1625 final compensation, and all other members shall receive elected
1626 officer retirement credit accrual value of 3 percent of average
1627 final compensation, for each year of creditable service in such
1628 class.
1629 Section 10. Paragraph (a) of subsection (7) of section
1630 121.053, Florida Statutes, is amended to read:
1631 121.053 Participation in the Elected Officers’ Class for
1632 retired members.—
1633 (7) A member who is elected or appointed to an elective
1634 office and who is participating in the Deferred Retirement
1635 Option Program is not subject to termination as defined in s.
1636 121.021, or reemployment limitations as provided in s.
1637 121.091(9), until the end of his or her current term of office
1638 or, if the officer is consecutively elected or reelected to an
1639 elective office eligible for coverage under the Florida
1640 Retirement System, until he or she no longer holds an elective
1641 office, as follows:
1642 (a) At the end of the 60-month DROP period:
1643 1. The officer’s DROP account may not accrue additional
1644 monthly benefits, but does continue to earn interest as provided
1645 in s. 121.091(13). However, an officer whose DROP participation
1646 begins on or after July 1, 2010, may not continue to earn such
1647 interest.
1648 2. Retirement contributions, except for unfunded actuarial
1649 liability and health insurance subsidy contributions required in
1650 ss. 121.71(5) and 121.76, are not required of the employer of
1651 the elected officer, and additional retirement credit may not be
1652 earned under the Florida Retirement System.
1653 Section 11. Paragraphs (b) and (j) of subsection (1),
1654 paragraphs (b), (c), and (d) of subsection (3), paragraph (b) of
1655 subsection (4), and paragraphs (c), (d), and (e) of subsection
1656 (6) of section 121.055, Florida Statutes, are amended to read:
1657 121.055 Senior Management Service Class.—There is hereby
1658 established a separate class of membership within the Florida
1659 Retirement System to be known as the “Senior Management Service
1660 Class,” which shall become effective February 1, 1987.
1661 (1)
1662 (b)1. Except as provided in subparagraph 2., effective
1663 January 1, 1990, participation in the Senior Management Service
1664 Class shall be is compulsory for the president of each community
1665 college, the manager of each participating city municipality or
1666 county, and all appointed district school superintendents.
1667 Effective January 1, 1994, additional positions may be
1668 designated for inclusion in the Senior Management Service Class
1669 of the Florida Retirement System, provided that if:
1670 a. Positions to be included in the class shall be are
1671 designated by the local agency employer. Notice of intent to
1672 designate positions for inclusion in the class shall must be
1673 published once a week for 2 consecutive weeks in a newspaper of
1674 general circulation published in the county or counties
1675 affected, as provided in chapter 50.
1676 b. Up to 10 nonelective full-time positions may be
1677 designated for each local agency employer reporting to the
1678 Department of Management Services; for local agencies with 100
1679 or more regularly established positions, additional nonelective
1680 full-time positions may be designated, not to exceed 1 percent
1681 of the regularly established positions within the agency.
1682 c. Each position added to the class must be a managerial or
1683 policymaking position filled by an employee who is not subject
1684 to continuing contract and serves at the pleasure of the local
1685 agency employer without civil service protection, and who:
1686 (I) Heads an organizational unit; or
1687 (II) Has responsibility to effect or recommend personnel,
1688 budget, expenditure, or policy decisions in his or her areas of
1689 responsibility.
1690 2. In lieu of participation in the Senior Management
1691 Service Class, members of the Senior Management Service Class,
1692 pursuant to the provisions of subparagraph 1., may withdraw from
1693 the Florida Retirement System altogether. The decision to
1694 withdraw from the Florida Retirement System shall be is
1695 irrevocable for as long as the employee holds such a the
1696 position. Any service creditable under the Senior Management
1697 Service Class shall be retained after the member withdraws from
1698 the Florida Retirement System; however, additional service
1699 credit in the Senior Management Service Class shall may not be
1700 earned after such withdrawal. Such members shall are not be
1701 eligible to participate in the Senior Management Service
1702 Optional Annuity Program.
1703 3. Effective January 1, 2006, through June 30, 2006, an
1704 employee who has withdrawn from the Florida Retirement System
1705 under subparagraph 2. has one opportunity to elect to
1706 participate in either the defined benefit program pension plan
1707 or the Public Employee Optional Retirement Program of the
1708 Florida Retirement System investment plan.
1709 a. If the employee elects to participate in the Public
1710 Employee Optional Retirement Program investment plan, membership
1711 shall be prospective, and the applicable provisions of s.
1712 121.4501(4) shall govern the election.
1713 b. If the employee elects to participate in the defined
1714 benefit program of the Florida Retirement System pension plan,
1715 the employee shall, upon payment to the system trust fund of the
1716 amount calculated under sub-sub-subparagraph (I), receive
1717 service credit for prior service based upon the time during
1718 which the employee had withdrawn from the system.
1719 (I) The cost for such credit shall be an amount
1720 representing the actuarial accrued liability for the affected
1721 period of service. The cost shall be calculated using the
1722 discount rate and other relevant actuarial assumptions that were
1723 used to value the Florida Retirement System defined benefit
1724 pension plan liabilities in the most recent actuarial valuation.
1725 The calculation shall must include any service already
1726 maintained under the defined benefit pension plan in addition to
1727 the period of withdrawal. The actuarial accrued liability
1728 attributable to any service already maintained under the defined
1729 benefit pension plan shall be applied as a credit to the total
1730 cost resulting from the calculation. The division shall must
1731 ensure that the transfer sum is prepared using a formula and
1732 methodology certified by an actuary.
1733 (II) The employee must transfer a sum representing the net
1734 cost owed for the actuarial accrued liability in sub-sub
1735 subparagraph (I) immediately following the time of such
1736 movement, determined assuming that attained service equals the
1737 sum of service in the defined benefit program pension plan and
1738 the period of withdrawal.
1739 (j) Except as may otherwise be provided, any a member of
1740 the Senior Management Service Class may purchase additional
1741 retirement credit in such class for creditable service within
1742 the purview of the Senior Management Service Class retroactive
1743 to February 1, 1987, and may upgrade retirement credit for such
1744 service, to the extent of 2 percent of the member’s average
1745 monthly compensation as specified in paragraph (4)(d) for such
1746 service. Contributions for upgrading the additional Senior
1747 Management Service credit pursuant to this paragraph shall must
1748 be equal to the difference in the employer and, if applicable,
1749 employee contributions paid and the Senior Management Service
1750 Class contribution rate as a percentage of gross salary in
1751 effect for the period being claimed, plus interest thereon at
1752 the rate of 6.5 percent a year, compounded annually until the
1753 date of payment. This service credit may be purchased by the
1754 employer on behalf of the member.
1755 (3)
1756 (b) The employer paying the salary of a member of the
1757 Senior Management Service Class shall contribute an amount as
1758 specified in this section or s. 121.71, as appropriate, which
1759 shall constitute the entire employer retirement contribution
1760 with respect to such member. The employer shall also withhold
1761 one-half of the entire contribution of the member required for
1762 social security coverage. Effective July 1, 2011, each member
1763 shall pay employee contributions as specified in s. 121.71.
1764 (c) Upon termination of employment from all participating
1765 employers for 3 calendar months for any reason other than
1766 retirement pursuant to s. 121.021(39)(c), a member may receive a
1767 refund of all contributions he or she has made to the pension
1768 plan, subject to the restrictions otherwise provided in this
1769 chapter. Partial refunds are not permitted. The refund shall not
1770 include any interest earnings on the contributions for a member
1771 of the pension plan. Employer contributions made on behalf of
1772 the member are not refundable. A member may not receive a refund
1773 of employee contributions if a pending or an approved qualified
1774 domestic relations order is filed against the member’s
1775 retirement account. By obtaining a refund of contributions, a
1776 member waives all rights under the Florida Retirement System and
1777 the health insurance subsidy provided under s. 112.363 to the
1778 service credit represented by the refunded contributions, except
1779 the right to purchase his or her prior service credit in
1780 accordance with s. 121.081(2).
1781 (c)(d) The following table states the required employer
1782 contribution on behalf of each member of the Senior Management
1783 Service Class in terms of a percentage of the member’s gross
1784 compensation. Such contribution constitutes the entire health
1785 insurance subsidy contribution with respect to each such member.
1786 A change in the contribution rate is effective with the first
1787 salary paid on or after the beginning date of the change. The
1788 retiree health insurance subsidy contribution rate is as
1789 follows:
1790
1791 Dates of Contribution Rate Changes ContributionRate
1792
1793 October 1, 1987, through December 31, 1988 0.24%
1794 January 1, 1989, through December 31, 1993 0.48%
1795 January 1, 1994, through December 31, 1994 0.56%
1796 January 1, 1995, through June 30, 1998 0.66%
1797 July 1, 1998, through June 30, 2001 0.94%
1798 Effective July 1, 2001 1.11%
1799 Such contributions and accompanying payroll data are due and
1800 payable no later than the 5th working day of the month
1801 immediately after following the month during which the payroll
1802 period ended and shall be deposited by the administrator in the
1803 Retiree Health Insurance Subsidy Trust Fund.
1804 (4)
1805 (b) Service in an eligible position prior to before
1806 February 1, 1987, or after January 31, 1987, shall satisfy the
1807 requirement of attaining the normal retirement date as defined
1808 in s. 121.021(29) for a Senior Management Service Class member,
1809 provided if the employee is a member of the Senior Management
1810 Service Class after January 31, 1987. A member of this class who
1811 fails to complete 6 the years of creditable service required for
1812 vesting in an eligible position shall be required to must
1813 satisfy the requirements for the normal retirement date for a
1814 regular member as provided in s. 121.021(29) and vesting as
1815 provided in s. 121.021(45).
1816 (6)
1817 (c) Participation.—
1818 1. An eligible employee who is employed on or before
1819 February 1, 1987, may elect to participate in the optional
1820 annuity program in lieu of participation participating in the
1821 Senior Management Service Class. Such election must be made in
1822 writing and filed with the department and the personnel officer
1823 of the employer on or before May 1, 1987. An eligible employee
1824 who is employed on or before February 1, 1987, and who fails to
1825 make an election to participate in the optional annuity program
1826 by May 1, 1987, shall be deemed to have elected membership in
1827 the Senior Management Service Class.
1828 2. Except as provided in subparagraph 6., an employee who
1829 becomes eligible to participate in the optional annuity program
1830 by reason of initial employment commencing after February 1,
1831 1987, may, within 90 days after the date of commencing
1832 employment, elect to participate in the optional annuity
1833 program. Such election must be made in writing and filed with
1834 the personnel officer of the employer. An eligible employee who
1835 does not within 90 days after commencing employment elect to
1836 participate in the optional annuity program shall be deemed to
1837 have elected membership in the Senior Management Service Class.
1838 3. A person who is appointed to a position in the Senior
1839 Management Service Class and who is a member of an existing
1840 retirement system or the Special Risk or Special Risk
1841 Administrative Support Classes of the Florida Retirement System
1842 may elect to remain in such system or class in lieu of
1843 participation participating in the Senior Management Service
1844 Class or optional annuity program. Such election must be made in
1845 writing and filed with the department and the personnel officer
1846 of the employer within 90 days of after such appointment. Any An
1847 eligible employee who fails to make an election to participate
1848 in the existing system, the Special Risk Class of the Florida
1849 Retirement System, the Special Risk Administrative Support Class
1850 of the Florida Retirement System, or the optional annuity
1851 program shall be deemed to have elected membership in the Senior
1852 Management Service Class.
1853 4. Except as provided in subparagraph 5., an employee’s
1854 election to participate in the optional annuity program is
1855 irrevocable if the employee continues to be employed in an
1856 eligible position and continues to meet the eligibility
1857 requirements set forth in this paragraph.
1858 5. Effective from July 1, 2002, through September 30, 2002,
1859 any an active employee in a regularly established position who
1860 has elected to participate in the Senior Management Service
1861 Optional Annuity Program has one opportunity to choose to move
1862 from the Senior Management Service Optional Annuity Program to
1863 the Florida Retirement System defined benefit program System
1864 Pension Plan.
1865 a. The election must be made in writing and must be filed
1866 with the department and the personnel officer of the employer
1867 before October 1, 2002, or, in the case of an active employee
1868 who is on a leave of absence on July 1, 2002, within 90 days
1869 after the conclusion of the leave of absence. This election is
1870 irrevocable.
1871 b. The employee shall receive service credit under the
1872 defined benefit program of the Florida Retirement System pension
1873 plan equal to his or her years of service under the Senior
1874 Management Service Optional Annuity Program. The cost for such
1875 credit is the amount representing the present value of that
1876 employee’s accumulated benefit obligation for the affected
1877 period of service.
1878 c. The employee must transfer the total accumulated
1879 employer contributions and earnings on deposit in his or her
1880 Senior Management Service Optional Annuity Program account. If
1881 the transferred amount is not sufficient to pay the amount due,
1882 the employee must pay a sum representing the remainder of the
1883 amount due. The employee may not retain any employer
1884 contributions or earnings thereon from the Senior Management
1885 Service Optional Annuity Program account.
1886 6. A retiree of a state-administered retirement system who
1887 is initially reemployed on or after July 1, 2010, may not renew
1888 membership in the Senior Management Service Optional Annuity
1889 Program.
1890 (d) Contributions.—
1891 1.a. Through June 30, 2001, each employer shall contribute
1892 on behalf of each participant in member of the Senior Management
1893 Service Optional Annuity Program an amount equal to the normal
1894 cost portion of the employer retirement contribution which would
1895 be required if the participant member were a Senior Management
1896 Service Class member of the Florida Retirement System Defined
1897 Benefit Program Pension Plan, plus the portion of the
1898 contribution rate required in s. 112.363(8) that would otherwise
1899 be assigned to the Retiree Health Insurance Subsidy Trust Fund.
1900 b. Effective July 1, 2001, through June 30, 2011, each
1901 employer shall contribute on behalf of each participant in
1902 member of the optional program an amount equal to 12.49 percent
1903 of the participant’s employee’s gross monthly compensation.
1904 c. Effective July 1, 2011, each member of the optional
1905 annuity program shall contribute an amount equal to the employee
1906 contribution required under s. 121.71(3). The employer shall
1907 contribute on behalf of such employee an amount equal to the
1908 difference between 12.49 percent of the employee’s gross monthly
1909 compensation and the amount equal to the employee’s required
1910 contribution based on the employee’s gross monthly compensation.
1911 d. The department shall deduct an amount approved by the
1912 Legislature to provide for the administration of this program.
1913 The payment of the contributions to the optional program which
1914 is required by this subparagraph for each participant, including
1915 contributions made by the employee, shall be made by the
1916 employer to the department, which shall forward the
1917 contributions to the designated company or companies contracting
1918 for payment of benefits for the participant member under the
1919 program.
1920 2. Each employer shall contribute on behalf of each
1921 participant in member of the Senior Management Service Optional
1922 Annuity Program an amount equal to the unfunded actuarial
1923 accrued liability portion of the employer contribution which
1924 would be required for members of the Senior Management Service
1925 Class in the Florida Retirement System. This contribution shall
1926 be paid to the department for transfer to the Florida Retirement
1927 System Trust Fund.
1928 3. An Optional Annuity Program Trust Fund shall be
1929 established in the State Treasury and administered by the
1930 department to make payments to provider companies on behalf of
1931 the optional annuity program participants members, and to
1932 transfer the unfunded liability portion of the state optional
1933 annuity program contributions to the Florida Retirement System
1934 Trust Fund.
1935 4. Contributions required for social security by each
1936 employer and each participant employee, in the amount required
1937 for social security coverage as now or hereafter may be provided
1938 by the federal Social Security Act shall be maintained for each
1939 participant in member of the Senior Management Service
1940 retirement program and shall be are in addition to the
1941 retirement contributions specified in this paragraph.
1942 5. Each participant in member of the Senior Management
1943 Service Optional Annuity Program may contribute by way of salary
1944 reduction or deduction a percentage amount of the participant’s
1945 employee’s gross compensation not to exceed the percentage
1946 amount contributed by the employer to the optional annuity
1947 program. Payment of the participant’s employee’s contributions
1948 shall be made by the employer to the department, which shall
1949 forward the contributions to the designated company or companies
1950 contracting for payment of benefits for the participant member
1951 under the program.
1952 (e) Benefits.—
1953 1. Benefits under the Senior Management Service Optional
1954 Annuity Program are payable only to participants in members of
1955 the program, or their beneficiaries as designated by the
1956 participant member in the contract with the provider company,
1957 and must be paid by the designated company in accordance with
1958 the terms of the annuity contract applicable to the participant
1959 member. A participant member must be terminated from all
1960 employment relationships with Florida Retirement System
1961 employers as provided in s. 121.021(39) for 3 calendar months to
1962 begin receiving the employer-funded and employee-funded benefit.
1963 The member must meet the definition of termination in s.
1964 121.021(39) beginning the month after receiving a benefit,
1965 including a distribution. Benefits funded by employer and
1966 employee contributions are payable under the terms of the
1967 contract to the participant member, his or her beneficiary, or
1968 his or her estate, in addition to:
1969 a. A lump-sum payment to the beneficiary upon the death of
1970 the participant member;
1971 b. A cash-out of a de minimis account upon the request of a
1972 former participant member who has been terminated for a minimum
1973 of 6 calendar months from the employment that entitled him or
1974 her to optional annuity program participation. Such cash-out
1975 must be a complete liquidation of the account balance with that
1976 company and is subject to the Internal Revenue Code;
1977 c. A mandatory distribution of a de minimis account of a
1978 former participant member who has been terminated for a minimum
1979 of 6 calendar months from the employment that entitled him or
1980 her to optional annuity program participation as authorized by
1981 the department; or
1982 d. A lump-sum direct rollover distribution whereby all
1983 accrued benefits, plus interest and investment earnings, are
1984 paid from the participant’s member’s account directly to the
1985 custodian of an eligible retirement plan, as defined in s.
1986 402(c)(8)(B) of the Internal Revenue Code, on behalf of the
1987 participant member.
1988 2. Under the Senior Management Service Optional Annuity
1989 Program, benefits, including employee contributions, are not
1990 payable for employee hardships, unforeseeable emergencies,
1991 loans, medical expenses, educational expenses, purchase of a
1992 principal residence, payments necessary to prevent eviction or
1993 foreclosure on an employee’s principal residence, or any other
1994 reason before termination from all employment relationships with
1995 participating employers for 3 calendar months.
1996 2.3. The benefits payable to any person under the Senior
1997 Management Service Optional Annuity Program, and any
1998 contribution accumulated under such program, are not subject to
1999 assignment, execution, or attachment or to any legal process
2000 whatsoever.
2001 3.4. Except as provided in subparagraph 4.5., a participant
2002 member who terminates employment and receives a distribution,
2003 including a rollover or trustee-to-trustee transfer, funded by
2004 employer and required employee contributions shall be is deemed
2005 to be retired from a state-administered retirement system if the
2006 participant member is subsequently employed with an employer
2007 that participates in the Florida Retirement System.
2008 4.5. A participant member who receives optional annuity
2009 program benefits funded by employer and employee contributions
2010 as a mandatory distribution of a de minimis account authorized
2011 by the department is not considered a retiree.
2012
2013 As used in this paragraph, a “de minimis account” means an
2014 account with a provider company containing employer and employee
2015 contributions and accumulated earnings of not more than $5,000
2016 made under this chapter.
2017 Section 12. Subsection (2) of section 121.061, Florida
2018 Statutes, is amended to read:
2019 121.061 Funding.—
2020 (2)(a) Should any employer other than a state employer fail
2021 to make the retirement and social security contributions, both
2022 member and employer contributions, required by this chapter,
2023 then, upon request by the administrator, the Department of
2024 Revenue or the Department of Financial Services, as the case may
2025 be, shall deduct the amount owed by the employer from any funds
2026 to be distributed by it to the county, city municipality,
2027 metropolitan planning organization, special district, or
2028 consolidated form of government. The amounts so deducted shall
2029 be transferred to the administrator for further distribution to
2030 the trust funds in accordance with this chapter.
2031 (b) Should any employer for whom the city municipality or
2032 county tax collector collects taxes, fail to make the retirement
2033 and social security contributions required by this chapter, the
2034 tax collector, at the request of the administrator and upon
2035 receipt of a certificate from the administrator showing the
2036 amount owed by the employer, shall deduct the amount so
2037 certified from any taxes collected for the employer and remit
2038 the amount to the administrator for further distribution to the
2039 trust funds in accordance with this chapter.
2040 (c) The governing body of each county, city municipality,
2041 metropolitan planning organization, special district, or
2042 consolidated form of government participating under this chapter
2043 or the administrator, acting individually or jointly, is hereby
2044 authorized to file and maintain an action in the courts of the
2045 state to require any employer to remit any retirement or social
2046 security member contributions or employer matching payments due
2047 the retirement or social security trust funds under the
2048 provisions of this chapter.
2049 (d) Should the income of any constitutional fee officer, in
2050 any year, be insufficient to make the matching payments required
2051 by this chapter, the board of county commissioners shall provide
2052 such fee officer sufficient funds to make these required
2053 payments when due.
2054 Section 13. Subsections (2) and (5), paragraphs (c) and (d)
2055 of subsection (6), and subsection (7) of section 121.071,
2056 Florida Statutes, are amended to read:
2057 121.071 Contributions.—Contributions to the system shall be
2058 made as follows:
2059 (2)(a) Effective January 1, 1975, or October 1, 1975, as
2060 applicable, and through June 30, 2011, each employer shall
2061 accomplish make the contribution required by subsection (1) by a
2062 procedure in which no employee’s gross salary shall be is
2063 reduced. Effective July 1, 2011, each employer and employee
2064 shall pay retirement contributions as specified in s. 121.71.
2065 (b) Upon termination of employment from all participating
2066 employers for 3 calendar months for any reason other than
2067 retirement pursuant to s. 121.021(39)(c), a member shall be
2068 entitled to may receive a full refund of the all contributions
2069 he or she has made prior or subsequent to participation in the
2070 noncontributory to the pension plan, subject to the restrictions
2071 otherwise provided in this chapter. Partial refunds are not
2072 permitted. The refund may not include any interest earnings on
2073 the contributions for a member of the pension plan. Employer
2074 contributions made on behalf of the member are not refundable. A
2075 member may not receive a refund of employee contributions if a
2076 pending or an approved qualified domestic relations order is
2077 filed against his or her retirement account. By obtaining a
2078 refund of contributions, a member waives all rights under the
2079 Florida Retirement System and the health insurance subsidy to
2080 the service credit represented by the refunded contributions,
2081 except the right to purchase his or her prior service credit in
2082 accordance with s. 121.081(2).
2083 (5) Contributions made in accordance with subsections (1),
2084 (2), (3), and (4), and s. 121.71 shall be paid by the employer
2085 into the system trust funds in accordance with rules adopted by
2086 the administrator pursuant to chapter 120, except as may be
2087 otherwise specified herein. Effective July 1, 2002,
2088 contributions paid under subsections (1) and (4) and
2089 accompanying payroll data are due and payable no later than the
2090 5th working day of the month immediately after following the
2091 month during which the payroll period ended.
2092 (6)
2093 (c) By obtaining a refund of contributions, a member waives
2094 all rights under the Florida Retirement System and the health
2095 insurance subsidy as provided in s. 112.363 to the service
2096 credit represented by the refunded contributions, except the
2097 right to purchase his or her prior service credit in accordance
2098 with s. 121.081(2).
2099 (d) If a member or former member of the pension plan
2100 receives an invalid refund from the Florida Retirement System
2101 Trust Fund, such person must repay the full amount of the
2102 invalid refund, plus interest at 6.5 percent compounded annually
2103 on each June 30 from the date of refund until full payment is
2104 made to the trust fund. The invalid refund must be repaid before
2105 the member retires or, if applicable, transfers to the
2106 investment plan.
2107 (7) Before termination of employment, benefits, including
2108 employee contributions, are not payable under the pension plan
2109 for employee hardships, unforeseeable emergencies, loans,
2110 medical expenses, educational expenses, purchase of a principal
2111 residence, payments necessary to prevent eviction or foreclosure
2112 on an employee’s principal residence, or any other reason before
2113 termination from all employment relationships with participating
2114 employers.
2115 Section 14. Paragraphs (b) and (c) of subsection (1) and
2116 subsection (2) of section 121.081, Florida Statutes, are amended
2117 to read:
2118 121.081 Past service; prior service; contributions.
2119 Conditions under which past service or prior service may be
2120 claimed and credited are:
2121 (1)
2122 (b) Past service earned after January 1, 1975, may be
2123 claimed by officers or employees of a municipality, metropolitan
2124 planning organization, charter school, charter technical career
2125 center, or special district who become a covered group under
2126 this system. The governing body of a covered group may elect to
2127 provide benefits for past service earned after January 1, 1975,
2128 in accordance with this chapter, and. the cost for such past
2129 service is established by applying the following formula: The
2130 employer shall contribute an amount equal to the employer
2131 contribution rate in effect at the time the service was earned
2132 and, if applicable, the employee contribution rate, multiplied
2133 by the employee’s gross salary for each year of past service
2134 claimed, plus 6.5-percent 6.5 percent interest thereon,
2135 compounded annually, figured on for each year of past service,
2136 with interest compounded from date of annual salary earned until
2137 date of payment.
2138 (c) Should the employer If an employer joins the Florida
2139 Retirement System and does not elect to provide past service for
2140 the member at the time of joining, then the member may claim and
2141 pay same, based on for the service as provided in paragraphs (a)
2142 and (b).
2143 (2) Prior service, as defined in s. 121.021(19), may be
2144 claimed as creditable service under the Florida Retirement
2145 System after a member has been reemployed for 1 complete year of
2146 creditable service within a period of 12 consecutive months,
2147 except as provided in paragraph (c). Service performed as a
2148 participant member of the optional retirement program for the
2149 State University System under s. 121.35 or the Senior Management
2150 Service Optional Annuity Program under s. 121.055 may be used to
2151 satisfy the reemployment requirement of 1 complete year of
2152 creditable service. The member shall not be permitted to make
2153 any contributions for prior service until after completion of
2154 the 1 year of creditable service. If a member does not wish to
2155 claim credit for all of his or her prior service, the service
2156 the member claims must be the most recent period of service. The
2157 required contributions for claiming the various types of prior
2158 service are:
2159 (a) For prior service performed prior to before the date
2160 the system becomes noncontributory for the member and for which
2161 the member had credit under one of the existing retirement
2162 systems and received a refund of contributions upon termination
2163 of employment, the member shall contribute 4 percent of all
2164 salary received during the period being claimed, plus 4-percent
2165 4 percent interest compounded annually from date of refund until
2166 July 1, 1975, and 6.5-percent 6.5 percent interest compounded
2167 annually thereafter, until full payment is made to the Florida
2168 Retirement System Trust Fund, and shall receive credit in the
2169 Regular Class. A member who elected to transfer to the Florida
2170 Retirement System from an existing system may receive credit for
2171 prior service under the existing system if he or she was
2172 eligible under the existing system to claim the prior service at
2173 the time of the transfer. Contributions for such prior service
2174 shall be determined by the applicable provisions of the system
2175 under which the prior service is claimed and shall be paid by
2176 the member, with matching contributions paid by the employer at
2177 the time the service was performed. Effective July 1, 1978, the
2178 account of a person who terminated under s. 238.05(3) may not be
2179 charged interest for contributions that remained on deposit in
2180 the Annuity Savings Trust Fund established under chapter 238,
2181 upon retirement under this chapter or chapter 238.
2182 (b) For prior service performed prior to before the date
2183 the system becomes noncontributory for the member and for which
2184 the member had credit under the Florida Retirement System and
2185 received a refund of contributions upon termination of
2186 employment, the member shall contribute at the rate that was
2187 required of him or her during the period of service being
2188 claimed, on all salary received during such period, plus 4
2189 percent 4 percent interest compounded annually from date of
2190 refund until July 1, 1975, and 6.5-percent 6.5 percent interest
2191 compounded annually thereafter, until the full payment is made
2192 to the Florida Retirement System Trust Fund, and shall receive
2193 credit in the membership class in which the member participated
2194 during the period claimed.
2195 (c) For prior service as defined in s. 121.021(19)(b) and
2196 (c) during which no contributions were made because the member
2197 did not participate in a retirement system, the member shall
2198 contribute 14.38 percent of all salary received during such
2199 period or 14.38 percent of $100 per month during such period,
2200 whichever is greater, plus 4-percent 4 percent interest
2201 compounded annually from the first year of service claimed until
2202 July 1, 1975, and 6.5-percent 6.5 percent interest compounded
2203 annually thereafter, until full payment is made to the
2204 Retirement Trust Fund, and shall receive credit in the Regular
2205 Class.
2206 (d) In order to claim credit for prior service as defined
2207 in s. 121.021(19)(d) for which no retirement contributions were
2208 paid during the period of such service, the member shall
2209 contribute the total employee and employer contributions which
2210 were required to be made to the Highway Patrol Pension Trust
2211 Fund, as provided in chapter 321, during the period claimed,
2212 plus 4-percent 4 percent interest compounded annually from the
2213 first year of service until July 1, 1975, and 6.5-percent 6.5
2214 percent interest compounded annually thereafter, until full
2215 payment is made to the Retirement Trust Fund. However, any
2216 governmental entity which that employed such member may elect to
2217 pay up to 50 percent of the contributions and interest required
2218 to purchase this the prior service credit. The service shall be
2219 credited in accordance with the provisions of the Highway Patrol
2220 Pension Plan in effect during the period claimed unless the
2221 member terminated and withdrew his or her retirement
2222 contributions and was thereafter enrolled in the State and
2223 County Officers and Employees’ Retirement System or the Florida
2224 Retirement System, in which case the service shall be credited
2225 as Regular Class service.
2226 (e) For service performed under the Florida Retirement
2227 System after December 1, 1970, that which was never reported to
2228 the division or the department due to error, retirement credit
2229 may be claimed by a member of the Florida Retirement System. The
2230 department shall adopt rules establishing criteria for claiming
2231 such credit and detailing the documentation required to
2232 substantiate the error.
2233 (f) For prior service performed on or after July 1, 2011,
2234 for which the member had credit under the Florida Retirement
2235 System and received a refund of contributions 3 calendar months
2236 after termination of employment, the member shall contribute at
2237 the rate that was required during the period of service being
2238 claimed, plus 6.5 percent interest, compounded annually on each
2239 June 30 from date of refund until the full payment is made to
2240 the Florida Retirement System Trust Fund, and receive credit in
2241 the membership class in which the member participated during the
2242 period claimed.
2243 (f)(g) The employer may not be required to make
2244 contributions for prior service credit for any member, except
2245 that the employer shall pay the employer portion of
2246 contributions for any legislator who elects to withdraw from the
2247 Florida Retirement System and later rejoins the system and pays
2248 any employee contributions required in accordance with s.
2249 121.052(3)(d).
2250 Section 15. Paragraphs (a) and (b) of subsection (3),
2251 paragraphs (a) and (j) of subsection (4), paragraphs (a) and (c)
2252 of subsection (5), paragraph (d) of subsection (9), paragraphs
2253 (a) and (c) of subsection (13), and paragraph (d) of subsection
2254 (14) of section 121.091, Florida Statutes, are amended to read:
2255 121.091 Benefits payable under the system.—Benefits may not
2256 be paid under this section unless the member has terminated
2257 employment as provided in s. 121.021(39)(a) or begun
2258 participation in the Deferred Retirement Option Program as
2259 provided in subsection (13), and a proper application has been
2260 filed in the manner prescribed by the department. The department
2261 may cancel an application for retirement benefits when the
2262 member or beneficiary fails to timely provide the information
2263 and documents required by this chapter and the department’s
2264 rules. The department shall adopt rules establishing procedures
2265 for application for retirement benefits and for the cancellation
2266 of such application when the required information or documents
2267 are not received.
2268 (3) EARLY RETIREMENT BENEFIT.—Upon retirement on his or her
2269 early retirement date, the member shall receive an immediate
2270 monthly benefit that shall begin to accrue on the first day of
2271 the month of the retirement date and be payable on the last day
2272 of that month and each month thereafter during his or her
2273 lifetime. Such benefit shall be calculated as follows:
2274 (a) For a member initially enrolled:
2275 1. Before July 1, 2011, The amount of each monthly payment
2276 shall be computed in the same manner as for a normal retirement
2277 benefit, in accordance with subsection (1), but shall be based
2278 on the member’s average monthly compensation and creditable
2279 service as of the member’s early retirement date. The benefit so
2280 computed shall be reduced by five-twelfths of 1 percent for each
2281 complete month by which the early retirement date precedes the
2282 normal retirement date of age 62 for a member of the Regular
2283 Class, Senior Management Service Class, or the Elected Officers’
2284 Class, and age 55 for a member of the Special Risk Class, or age
2285 52 if a Special Risk member has completed 25 years of creditable
2286 service in accordance with s. 121.021(29)(b)3.
2287 121.021(29)(b)1.c.
2288 2. On or after July 1, 2011, the amount of each monthly
2289 payment shall be computed in the same manner as for a normal
2290 retirement benefit, in accordance with subsection (1), but shall
2291 be based on the member’s average monthly compensation and
2292 creditable service as of the member’s early retirement date. The
2293 benefit so computed shall be reduced by five-twelfths of 1
2294 percent for each complete month by which the early retirement
2295 date precedes the normal retirement date of age 65 for a member
2296 of the Regular Class, Senior Management Service Class, or the
2297 Elected Officers’ Class, and age 60 for a member of the Special
2298 Risk Class, or age 57 if a special risk member has completed 30
2299 years of creditable service in accordance with s.
2300 121.021(29)(b)2.c.
2301 (b) If the employment of a member is terminated by reason
2302 of death subsequent to the completion of 20 years of creditable
2303 service within 10 years before normal retirement as described in
2304 s. 121.021(29)(a)1.b. or s. 121.021(29)(a)2.b., the monthly
2305 benefit payable to the member’s beneficiary shall be calculated
2306 in accordance with subsection (1), but shall must be based on
2307 average monthly compensation and creditable service as of the
2308 date of death. The benefit so computed shall be reduced by five
2309 twelfths of 1 percent for each complete month by which death
2310 precedes the normal retirement date specified above or the date
2311 on which the member would have attained 30 years of creditable
2312 service the normal retirement date had he or she survived and
2313 continued his or her employment, whichever provides a higher
2314 benefit.
2315 (4) DISABILITY RETIREMENT BENEFIT.—
2316 (a) Disability retirement; entitlement and effective date.—
2317 1.a. A member who becomes totally and permanently disabled,
2318 as defined in paragraph (b), after completing 5 years of
2319 creditable service, or a member who becomes totally and
2320 permanently disabled in the line of duty regardless of service,
2321 shall be is entitled to a monthly disability benefit; except
2322 that any member with less than 5 years of creditable service on
2323 July 1, 1980, or any person who becomes a member of the Florida
2324 Retirement System on or after such date must have completed 10
2325 years of creditable service prior to before becoming totally and
2326 permanently disabled in order to receive disability retirement
2327 benefits for any disability which occurs other than in the line
2328 of duty. However, if a member employed on July 1, 1980, with who
2329 has less than 5 years of creditable service as of that date,
2330 becomes totally and permanently disabled after completing 5
2331 years of creditable service and is found not to have attained
2332 fully insured status for benefits under the federal Social
2333 Security Act, such member shall be is entitled to a monthly
2334 disability benefit.
2335 b. Effective July 1, 2001, a member of the defined benefit
2336 retirement program pension plan who becomes totally and
2337 permanently disabled, as defined in paragraph (b), after
2338 completing 8 years of creditable service, or a member who
2339 becomes totally and permanently disabled in the line of duty
2340 regardless of service, shall be is entitled to a monthly
2341 disability benefit.
2342 2. If the division has received from the employer the
2343 required documentation of the member’s termination of
2344 employment, the effective retirement date for a member who
2345 applies and is approved for disability retirement shall be
2346 established by rule of the division.
2347 3. For a member who is receiving Workers’ Compensation
2348 payments, the effective disability retirement date may not
2349 precede the date the member reaches Maximum Medical Improvement
2350 (MMI), unless the member terminates employment prior to before
2351 reaching MMI.
2352 (j) Disability retirement of justice or judge by order of
2353 Supreme Court.—
2354 1. If a member is a justice of the Supreme Court, judge of
2355 a district court of appeal, circuit judge, or judge of a county
2356 court who has served for 6 years or more the number of years
2357 equal to, or greater than, the vesting requirement in s.
2358 121.021(45) as an elected constitutional judicial officer,
2359 including service as a judicial officer, in any court abolished
2360 pursuant to Art. V of the State Constitution, and who is retired
2361 for disability by order of the Supreme Court upon recommendation
2362 of the Judicial Qualifications Commission pursuant to the
2363 provisions of Art. V of the State Constitution, the member’s
2364 Option 1 monthly benefit as provided in subparagraph (6)(a)1.
2365 shall may not be less than two-thirds of his or her monthly
2366 compensation as of the member’s disability retirement date. Such
2367 a member may alternatively elect to receive a disability
2368 retirement benefit under any other option as provided in
2369 paragraph (6)(a).
2370 2. Should any justice or judge who is a member of the
2371 Florida Retirement System be retired for disability by order of
2372 the Supreme Court upon recommendation of the Judicial
2373 Qualifications Commission pursuant to the provisions of Art. V
2374 of the State Constitution, then all contributions to his or her
2375 account and all contributions made on his or her behalf by the
2376 employer shall be transferred to and deposited in the General
2377 Revenue Fund of the state, and there is hereby appropriated
2378 annually out of the General Revenue Fund, to be paid into the
2379 Florida Retirement System Fund, an amount necessary to pay the
2380 benefits of all justices and judges retired from the Florida
2381 Retirement System pursuant to Art. V of the State Constitution.
2382 (5) TERMINATION BENEFITS.—A member whose employment is
2383 terminated prior to retirement retains membership rights to
2384 previously earned member-noncontributory service credit, and to
2385 member-contributory service credit, if the member leaves the
2386 member contributions on deposit in his or her retirement
2387 account. If a terminated member receives a refund of member
2388 contributions, such member may reinstate membership rights to
2389 the previously earned service credit represented by the refund
2390 by completing 1 year of creditable service and repaying the
2391 refunded member contributions, plus interest.
2392 (a) A member whose employment is terminated for any reason
2393 other than death or retirement prior to before becoming vested
2394 is entitled to the return of his or her accumulated
2395 contributions as of the date of termination. Effective July 1,
2396 2011, upon termination of employment from all participating
2397 employers for 3 calendar months as defined in s. 121.021(39)(c)
2398 for any reason other than retirement, a member may receive a
2399 refund of all contributions he or she has made to the pension
2400 plan, subject to the restrictions otherwise provided in this
2401 chapter. The refund may be received as a lump-sum payment, a
2402 rollover to a qualified plan, or a combination of these methods.
2403 Partial refunds are not permitted. The refund may not include
2404 any interest earnings on the contributions for a member of the
2405 pension plan. Employer contributions made on behalf of the
2406 member are not refundable. A member may not receive a refund of
2407 employee contributions if a pending or an approved qualified
2408 domestic relations order is filed against his or her retirement
2409 account. By obtaining a refund of contributions, a member waives
2410 all rights under the Florida Retirement System and the health
2411 insurance subsidy to the service credit represented by the
2412 refunded contributions, except the right to purchase his or her
2413 prior service credit in accordance with s. 121.081(2).
2414 (c) In lieu of the deferred monthly benefit provided in
2415 paragraph (b), the terminated member may elect to receive a
2416 lump-sum amount equal to his or her accumulated contributions as
2417 of the date of termination. Effective July 1, 2011, upon
2418 termination of employment from all participating employers for 3
2419 calendar months as defined in s. 121.021(39)(c) for any reason
2420 other than retirement, a member may receive a refund of all
2421 contributions he or she has made to the pension plan, subject to
2422 the restrictions otherwise provided in this chapter. Partial
2423 refunds are not permitted. The refund may not include any
2424 interest earnings on the contributions for a member of the
2425 pension plan. Employer contributions made on behalf of the
2426 member are not refundable. A member may not receive a refund of
2427 employee contributions if a pending or an approved qualified
2428 domestic relations order is filed against his or her retirement
2429 account. By obtaining a refund of contributions, a member waives
2430 all rights under the Florida Retirement System and the health
2431 insurance subsidy to the service credit represented by the
2432 refunded contributions, except the right to purchase his or her
2433 prior service credit in accordance with s. 121.081(2).
2434 (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
2435 (d) The provisions of this subsection apply applies to
2436 retirees, as defined in s. 121.4501(2), of the Public Employee
2437 Optional Retirement Program Florida Retirement System Investment
2438 Plan, subject to the following conditions:
2439 1. A retiree may not be reemployed with an employer
2440 participating in the Florida Retirement System until such person
2441 has been retired for 6 calendar months.
2442 2. A retiree employed in violation of this subsection and
2443 an employer that employs or appoints such person are jointly and
2444 severally liable for reimbursement of any benefits paid to the
2445 retirement trust fund from which the benefits were paid,
2446 including the Retirement System Trust Fund and the Public
2447 Employee Optional Retirement Program Trust Fund, as appropriate.
2448 The employer must have a written statement from the retiree that
2449 he or she is not retired from a state-administered retirement
2450 system.
2451 (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
2452 subject to this section, the Deferred Retirement Option Program,
2453 hereinafter referred to as DROP, is a program under which an
2454 eligible member of the Florida Retirement System may elect to
2455 participate, deferring receipt of retirement benefits while
2456 continuing employment with his or her Florida Retirement System
2457 employer. The deferred monthly benefits shall accrue in the
2458 Florida Retirement System on behalf of the participant member,
2459 plus interest compounded monthly, for the specified period of
2460 the DROP participation, as provided in paragraph (c). Upon
2461 termination of employment, the participant member shall receive
2462 the total DROP benefits and begin to receive the previously
2463 determined normal retirement benefits. Participation in the DROP
2464 does not guarantee employment for the specified period of DROP.
2465 Participation in DROP by an eligible member beyond the initial
2466 60-month period as authorized in this subsection shall be on an
2467 annual contractual basis for all participants.
2468 (a) Eligibility of member to participate in DROP.—All
2469 active Florida Retirement System members in a regularly
2470 established position, and all active members of the Teachers’
2471 Retirement System established in chapter 238 or the State and
2472 County Officers’ and Employees’ Retirement System established in
2473 chapter 122, which are consolidated within the Florida
2474 Retirement System under s. 121.011, are eligible to elect
2475 participation in DROP if:
2476 1. The member is not a renewed member under s. 121.122 or a
2477 member of the State Community College System Optional Retirement
2478 Program under s. 121.051, the Senior Management Service Optional
2479 Annuity Program under s. 121.055, or the optional retirement
2480 program for the State University System under s. 121.35.
2481 2. Except as provided in subparagraph 6., election to
2482 participate is made within 12 months immediately after following
2483 the date on which the member first reaches normal retirement
2484 date, or, for a member who reaches normal retirement date based
2485 on service before he or she reaches age 62, or age 55 for
2486 Special Risk Class members, election to participate may be
2487 deferred to the 12 months immediately after following the date
2488 the member attains age 57, or age 52 for Special Risk Class
2489 members. A member who delays DROP participation during the 12
2490 month period immediately after following his or her maximum DROP
2491 deferral date, except as provided in subparagraph 6., loses a
2492 month of DROP participation for each month delayed. A member who
2493 fails to make an election within the 12-month limitation period
2494 forfeits all rights to participate in DROP. The member shall
2495 advise his or her employer and the division in writing of the
2496 date DROP begins. The beginning date may be subsequent to the
2497 12-month election period but must be within the original 60
2498 month participation period provided in subparagraph (b)1. When
2499 establishing eligibility of the member to participate in DROP,
2500 the member may elect to include or exclude any optional service
2501 credit purchased by the member from the total service used to
2502 establish the normal retirement date. A member who has dual
2503 normal retirement dates is eligible to elect to participate in
2504 DROP after attaining normal retirement date in either class.
2505 3. The employer of a member electing to participate in
2506 DROP, or employers if dually employed, shall acknowledge in
2507 writing to the division the date the member’s participation in
2508 DROP begins and the date the member’s employment and DROP
2509 participation will terminate terminates.
2510 4. Simultaneous employment of a participant member by
2511 additional Florida Retirement System employers subsequent to the
2512 commencement of a member’s participation in DROP is permissible
2513 if such employers acknowledge in writing a DROP termination date
2514 no later than the participant’s member’s existing termination
2515 date or the maximum participation period provided in
2516 subparagraph (b)1.
2517 5. A DROP participant member may change employers while
2518 participating in DROP, subject to the following:
2519 a. A change of employment must take takes place without a
2520 break in service so that the member receives salary for each
2521 month of continuous DROP participation. If a member receives no
2522 salary during a month, DROP participation shall cease ceases
2523 unless the employer verifies a continuation of the employment
2524 relationship for such participant member pursuant to s.
2525 121.021(39)(b).
2526 b. Such participant The member and new employer shall
2527 notify the division of the identity of the new employer on forms
2528 required by the division.
2529 c. The new employer shall acknowledge acknowledges, in
2530 writing, the participant’s member’s DROP termination date, which
2531 may be extended but not beyond the maximum participation period
2532 provided in subparagraph (b)1., shall acknowledge acknowledges
2533 liability for any additional retirement contributions and
2534 interest required if the participant member fails to timely
2535 terminate employment, and is subject to the adjustment required
2536 in sub-subparagraph (c)5.d.
2537 6. Effective July 1, 2001, for instructional personnel as
2538 defined in s. 1012.01(2), election to participate in DROP may be
2539 made at any time after following the date on which the member
2540 first reaches normal retirement date. The member shall advise
2541 his or her employer and the division in writing of the date on
2542 which DROP begins. When establishing eligibility of the member
2543 to participate in DROP for the 60-month participation period
2544 provided in subparagraph (b)1., the member may elect to include
2545 or exclude any optional service credit purchased by the member
2546 from the total service used to establish the normal retirement
2547 date. A member who has dual normal retirement dates is eligible
2548 to elect to participate in either class.
2549 (c) Benefits payable under DROP.—
2550 1. Effective on the date of DROP participation, the
2551 member’s initial normal monthly benefit, including creditable
2552 service, optional form of payment, and average final
2553 compensation, and the effective date of retirement are fixed.
2554 The beneficiary established under the Florida Retirement System
2555 is the beneficiary eligible to receive any DROP benefits payable
2556 if the DROP participant dies before completing the period of
2557 DROP participation. If a joint annuitant predeceases the member,
2558 the member may name a beneficiary to receive accumulated DROP
2559 benefits payable. The retirement benefit, the annual cost of
2560 living adjustments provided in s. 121.101, and interest accrue
2561 monthly in the Florida Retirement System Trust Fund. For members
2562 whose DROP participation begins:
2563 a. Before July 1, 2011, The interest accrues at an
2564 effective annual rate of 6.5 percent compounded monthly, on the
2565 prior month’s accumulated ending balance, up to the month of
2566 termination or death, except as provided in s. 121.053(7).
2567 b. On or after July 1, 2011, the interest accrues at an
2568 effective annual rate of 1.3 percent, compounded monthly, on the
2569 prior month’s accumulated ending balance, up to the month of
2570 termination or death, except as provided in s. 121.053(7).
2571 2. Each employee who elects to participate in DROP may
2572 elect to receive a lump-sum payment for accrued annual leave
2573 earned in accordance with agency policy upon beginning
2574 participation in DROP. The accumulated leave payment certified
2575 to the division upon commencement of DROP shall be included in
2576 the calculation of the member’s average final compensation. The
2577 employee electing the lump-sum payment is not eligible to
2578 receive a second lump-sum payment upon termination, except to
2579 the extent the employee has earned additional annual leave
2580 which, combined with the original payment, does not exceed the
2581 maximum lump-sum payment allowed by the employing agency’s
2582 policy or rules. An early lump-sum payment shall be based on the
2583 hourly wage of the employee at the time he or she begins
2584 participation in DROP. If the member elects to wait and receive
2585 a lump-sum payment upon termination of DROP and termination of
2586 employment with the employer, any accumulated leave payment made
2587 at that time may not be included in the member’s retirement
2588 benefit, which was determined and fixed by law when the employee
2589 elected to participate in DROP.
2590 3. The effective date of DROP participation and the
2591 effective date of retirement of a DROP participant shall be the
2592 first day of the month selected by the member to begin
2593 participation in DROP, provided such date is properly
2594 established, with the written confirmation of the employer, and
2595 the approval of the division, on forms required by the division.
2596 4. Normal retirement benefits and any interest shall
2597 continue to accrue in DROP until the established termination
2598 date of DROP or until the participant member terminates
2599 employment or dies prior to before such date, except as provided
2600 in s. 121.053(7). Although individual DROP accounts shall may
2601 not be established, a separate accounting of each participant’s
2602 member’s accrued benefits under DROP shall be calculated and
2603 provided to the participant the member.
2604 5. At the conclusion of the participant’s the member’s
2605 participation in DROP, the division shall distribute the
2606 participant’s member’s total accumulated DROP benefits, subject
2607 to the following:
2608 a. The division shall receive verification by the
2609 participant’s member’s employer or employers that the
2610 participant member has terminated all employment relationships
2611 as provided in s. 121.021(39).
2612 b. The terminated DROP participant or, if deceased, the
2613 participant’s member’s named beneficiary, shall elect on forms
2614 provided by the division to receive payment of the DROP benefits
2615 in accordance with one of the options listed below. If a
2616 participant member or beneficiary fails to elect a method of
2617 payment within 60 days after termination of DROP, the division
2618 shall pay a lump sum as provided in sub-sub-subparagraph (I).
2619 (I) Lump sum.—All accrued DROP benefits, plus interest,
2620 less withholding taxes remitted to the Internal Revenue Service,
2621 shall be paid to the DROP participant or surviving beneficiary.
2622 (II) Direct rollover.—All accrued DROP benefits, plus
2623 interest, shall be paid from DROP directly to the custodian of
2624 an eligible retirement plan as defined in s. 402(c)(8)(B) of the
2625 Internal Revenue Code. However, in the case of an eligible
2626 rollover distribution to the surviving spouse of a deceased
2627 participant member, an eligible retirement plan is an individual
2628 retirement account or an individual retirement annuity as
2629 described in s. 402(c)(9) of the Internal Revenue Code.
2630 (III) Partial lump sum.—A portion of the accrued DROP
2631 benefits shall be paid to DROP participant or surviving spouse,
2632 less withholding taxes remitted to the Internal Revenue Service,
2633 and the remaining DROP benefits must be transferred directly to
2634 the custodian of an eligible retirement plan as defined in s.
2635 402(c)(8)(B) of the Internal Revenue Code. However, in the case
2636 of an eligible rollover distribution to the surviving spouse of
2637 a deceased participant member, an eligible retirement plan is an
2638 individual retirement account or an individual retirement
2639 annuity as described in s. 402(c)(9) of the Internal Revenue
2640 Code. The proportions must be specified by the DROP participant
2641 or surviving beneficiary.
2642 c. The form of payment selected by the DROP participant or
2643 surviving beneficiary must comply with the minimum distribution
2644 requirements of the Internal Revenue Code.
2645 d. A DROP participant who fails to terminate all employment
2646 relationships as provided in s. 121.021(39) shall be deemed as
2647 not retired, and the DROP election is null and void. Florida
2648 Retirement System membership shall be reestablished
2649 retroactively to the date of the commencement of DROP, and each
2650 employer with whom the participant member continues employment
2651 must pay to the Florida Retirement System Trust Fund the
2652 difference between the DROP contributions paid in paragraph (i)
2653 and the contributions required for the applicable Florida
2654 Retirement System class of membership during the period the
2655 member participated in DROP, plus 6.5 percent interest
2656 compounded annually.
2657 6. The retirement benefits of any DROP participant who
2658 terminates all employment relationships as provided in s.
2659 121.021(39) but is reemployed in violation of the reemployment
2660 provisions of subsection (9) shall be are suspended during those
2661 months in which the retiree is in violation. Any retiree in
2662 violation of this subparagraph and any employer that employs or
2663 appoints such person without notifying the Division of
2664 Retirement to suspend retirement benefits are jointly and
2665 severally liable for any benefits paid during the reemployment
2666 limitation period. The employer must have a written statement
2667 from the retiree that he or she is not retired from a state
2668 administered retirement system. Any retirement benefits received
2669 by a retiree while employed in violation of the reemployment
2670 limitations must be repaid to the Florida Retirement System
2671 Trust Fund, and his or her retirement benefits shall remain
2672 suspended until payment is made. Benefits suspended beyond the
2673 end of the reemployment limitation period apply toward repayment
2674 of benefits received in violation of the reemployment
2675 limitation.
2676 7. The accrued benefits of any DROP participant, and any
2677 contributions accumulated under the program, are not subject to
2678 assignment, execution, attachment, or any legal process
2679 whatsoever, except for qualified domestic relations court orders
2680 by a court of competent jurisdiction, income deduction orders as
2681 provided in s. 61.1301, and federal income tax levies.
2682 8. DROP participants are not eligible for disability
2683 retirement benefits as provided in subsection (4).
2684 (14) PAYMENT OF BENEFITS.—This subsection applies to the
2685 payment of benefits to a payee (retiree or beneficiary) under
2686 the Florida Retirement System:
2687 (d) A payee whose retirement benefits are reduced by the
2688 application of maximum benefit limits under s. 415(b) of the
2689 Internal Revenue Code, as specified in s. 121.30(5), shall have
2690 the portion of his or her calculated benefit in the Florida
2691 Retirement System Defined Benefit System Pension Plan which
2692 exceeds such federal limitation paid through the Florida
2693 Retirement System Preservation of Benefits Plan, as provided in
2694 s. 121.1001.
2695 Section 16. Subsection (1) and paragraph (a) of subsection
2696 (2) of section 121.1001, Florida Statutes, are amended to read:
2697 121.1001 Florida Retirement System Preservation of Benefits
2698 Plan.—Effective July 1, 1999, the Florida Retirement System
2699 Preservation of Benefits Plan is established as a qualified
2700 governmental excess benefit arrangement pursuant to s. 415(m) of
2701 the Internal Revenue Code. The Preservation of Benefits Plan is
2702 created as a separate portion of the Florida Retirement System,
2703 for the purpose of providing benefits to a payee (retiree or
2704 beneficiary) of the Florida Retirement System whose benefits
2705 would otherwise be limited by s. 415(b) of the Internal Revenue
2706 Code.
2707 (1) ELIGIBILITY TO PARTICIPATE IN THE PRESERVATION OF
2708 BENEFITS PLAN.—A payee of the Florida Retirement System shall
2709 participate in the Preservation of Benefits Plan whenever if his
2710 or her earned benefit under the Florida Retirement System
2711 Defined Benefit System Pension Plan exceeds the benefit maximum
2712 established under s. 415(b) of the Internal Revenue Code.
2713 Participation in the Preservation of Benefits Plan shall
2714 continue for as long as the payee’s earned benefit under the
2715 Florida Retirement System Defined Benefit pension plan is
2716 reduced by the application of the maximum benefit limit under s.
2717 415(b) of the Internal Revenue Code.
2718 (2) BENEFITS PAYABLE UNDER THE PRESERVATION OF BENEFITS
2719 PLAN.—
2720 (a) On and after July 1, 1999, the Division of Retirement
2721 shall pay to each eligible payee of the Florida Retirement
2722 System who retires before, on, or after such that date, a
2723 supplemental retirement benefit equal to the difference between
2724 the amount of the payee’s monthly retirement benefit which would
2725 have been payable under the Florida Retirement System Defined
2726 Benefit System Pension Plan if not for a reduction due to the
2727 application of s. 415(b) of the Internal Revenue Code and the
2728 reduced monthly retirement benefit as paid to the payee. The
2729 Preservation of Benefits Plan benefit shall be computed and
2730 payable under the same terms and conditions and to the same
2731 person as would have applied under the Florida Retirement System
2732 Defined Benefit pension plan were it not for the federal
2733 limitation.
2734 Section 17. Present subsections (6) through (9) of that
2735 section 121.101, Florida Statutes, are redesignated as
2736 subsections (4) through (7), respectively, and present
2737 subsections (1), (3), (4), and (5) of that section are amended,
2738 to read:
2739 121.101 Cost-of-living adjustment of benefits.—
2740 (1) The purpose of this section is to provide cost-of
2741 living adjustments to the monthly benefits payable to all
2742 retired members of state-supported retirement systems.
2743 (3) Commencing July 1, 1987, the benefit of each retiree
2744 and annuitant whose effective retirement date is before July 1,
2745 2011, shall be adjusted annually on each July 1 thereafter, as
2746 follows:
2747 (a) For those retirees and annuitants who have never
2748 received a cost-of-living adjustment under this section, the
2749 amount of the monthly benefit payable for the 12-month period
2750 commencing on the adjustment date shall be the amount of the
2751 member’s initial benefit plus an amount equal to a percentage of
2752 the member’s initial benefit; this percentage is derived by
2753 dividing the number of months the member has received an initial
2754 benefit by 12, and multiplying the result by 3.
2755 (b) For those retirees and annuitants who have received a
2756 cost-of-living adjustment under this section subsection, the
2757 adjusted monthly benefit shall be the amount of the monthly
2758 benefit being received on June 30 immediately preceding the
2759 adjustment date plus an amount equal to 3 percent of this
2760 benefit.
2761 (4) For members whose effective retirement date is on or
2762 after July 1, 2011, the benefit of each retiree and annuitant
2763 shall be adjusted annually on July 1 as follows:
2764 (a) For those retirees and annuitants who have never
2765 received a cost-of-living adjustment under this subsection, the
2766 amount of the monthly benefit payable for the 12-month period
2767 commencing on the adjustment date shall be the amount of the
2768 member’s initial benefit plus an amount equal to a percentage of
2769 the member’s initial benefit. This percentage is derived by
2770 dividing the number of months the member has received an initial
2771 benefit by 12, and multiplying the result by the factor
2772 calculated pursuant to paragraph (c).
2773 (b) For those retirees and annuitants who have received a
2774 cost-of-living adjustment under this subsection, the adjusted
2775 monthly benefit shall be the amount of the monthly benefit being
2776 received on June 30 immediately preceding the adjustment date
2777 plus an amount determined by multiplying the benefit by the
2778 factor calculated pursuant to paragraph (c).
2779 (c) The department shall calculate a cost-of-living factor
2780 for each retiree and beneficiary retiring on or after July 1,
2781 2011. This factor shall equal the product of 3 percent
2782 multiplied by the quotient of the sum of the member’s service
2783 credit earned for service before July 1, 2011, divided by the
2784 sum of the member’s total service credit earned.
2785 (5) Subject to the availability of funding and the
2786 Legislature enacting sufficient employer contributions
2787 specifically for the purpose of funding the expiration of the
2788 cost-of-living adjustment specified in subsection (4), in
2789 accordance with s. 14, Art. X of the State Constitution, the
2790 cost-of-living adjustment formula provided for in subsection (4)
2791 shall expire effective June 30, 2016, and the benefit of each
2792 retiree and annuitant shall be adjusted on each July 1
2793 thereafter, as provided in subsection (3).
2794 Section 18. Paragraph (b) of subsection (1) of section
2795 121.1115, Florida Statutes, is amended to read:
2796 121.1115 Purchase of retirement credit for out-of-state or
2797 federal service.—Effective January 1, 1995, a member may
2798 purchase creditable service for periods of public employment in
2799 another state and receive creditable service for such periods of
2800 employment. Service with the Federal Government, including any
2801 active military service, may be claimed. Upon completion of each
2802 year of service earned under the Florida Retirement System, a
2803 member may purchase up to 1 year of retirement credit for his or
2804 her out-of-state service, subject to the following provisions:
2805 (1) LIMITATIONS AND CONDITIONS.—To receive credit for the
2806 out-of-state service:
2807 (b) The member must have completed a minimum of 6 the years
2808 of creditable service required for vesting under the Florida
2809 Retirement System, excluding out-of-state service and in-state
2810 service claimed and purchased under s. 121.1122.
2811 Section 19. Paragraph (a) of subsection (2) of section
2812 121.1122, Florida Statutes, is amended to read:
2813 121.1122 Purchase of retirement credit for in-state public
2814 service and in-state service in accredited nonpublic schools and
2815 colleges, including charter schools and charter technical career
2816 centers.—Effective January 1, 1998, a member of the Florida
2817 Retirement System may purchase creditable service for periods of
2818 certain public or nonpublic employment performed in this state,
2819 as provided in this section.
2820 (2) LIMITATIONS AND CONDITIONS.—
2821 (a) A member is not eligible to receive credit for in-state
2822 service under this section until he or she has completed 6 the
2823 years of creditable service required for vesting under the
2824 Florida Retirement System, excluding service purchased under
2825 this section and out-of-state service claimed and purchased
2826 under s. 121.1115.
2827 Section 20. Subsection (1) of section 121.121, Florida
2828 Statutes, is amended to read:
2829 121.121 Authorized leaves of absence.—
2830 (1) A member may purchase creditable service for up to 2
2831 work years of authorized leaves of absence, including any leaves
2832 of absence covered under the Family Medical Leave Act, if:
2833 (a) The member has completed a minimum of 6 the years of
2834 creditable service required for vesting, excluding periods for
2835 which a leave of absence was authorized;
2836 (b) The leave of absence is authorized in writing by the
2837 employer of the member and approved by the administrator;
2838 (c) The member returns to active employment performing
2839 service with a Florida Retirement System employer in a regularly
2840 established position immediately upon termination of the leave
2841 of absence and remains on the employer’s payroll for 1 calendar
2842 month, except that a member who retires on disability while on a
2843 medical leave of absence shall may not be required to return to
2844 employment. A member whose work year is less than 12 months and
2845 whose leave of absence terminates between school years is
2846 eligible to receive credit for the leave of absence as long as
2847 if he or she returns to the employment of his or her employer at
2848 the beginning of the next school year and remains on the
2849 employer’s payroll for 1 calendar month; and
2850 (d) The member makes the required contributions for service
2851 credit during the leave of absence, which shall be 8 percent
2852 until January 1, 1975, and 9 percent thereafter of his or her
2853 rate of monthly compensation in effect immediately prior to
2854 before the commencement of such leave for each month of such
2855 period, plus 4 percent interest until July 1, 1975, and 6.5
2856 percent interest thereafter on such contributions, compounded
2857 annually each June 30 from the due date of the contribution to
2858 date of payment.
2859 1. Effective July 1, 1980, any leave of absence purchased
2860 pursuant to this section shall be is at the contribution rates
2861 specified in s. 121.071 or s. 121.71 in effect at the time the
2862 leave is granted for the class of membership from which the
2863 leave of absence was granted; however, any member who purchased
2864 leave-of-absence credit prior to before July 1, 1980, for a
2865 leave of absence from a position in a class other than the
2866 regular membership class, may pay the appropriate additional
2867 contributions plus compound interest thereon and receive
2868 creditable service for such leave of absence in the membership
2869 class from which the member was granted the leave of absence.
2870 2. Effective July 1, 2011, any leave of absence purchased
2871 by the member pursuant to this section shall be at the employer
2872 and employee contribution rates specified in s. 121.71 in effect
2873 during the leave for the class of membership from which the
2874 leave of absence was granted.
2875 Section 21. Section 121.125, Florida Statutes, is amended
2876 to read:
2877 121.125 Credit for workers’ compensation payment periods.—A
2878 member of the retirement system created by this chapter who has
2879 been eligible or becomes eligible to receive workers’
2880 compensation payments for an injury or illness occurring during
2881 his or her employment while a member of any state retirement
2882 system shall, upon return to active employment with a covered
2883 employer for 1 calendar month or upon approval for disability
2884 retirement in accordance with s. 121.091(4), receive full
2885 retirement credit for the period prior to such return to active
2886 employment or disability retirement for which the workers’
2887 compensation payments were received. However, no a member may
2888 not receive retirement credit for any such period occurring
2889 after the earlier of the date of maximum medical improvement as
2890 defined in s. 440.02 or the date termination has occurred as
2891 defined in s. 121.021(39). The employer of record at the time of
2892 the workers’ compensation injury or illness shall make the
2893 required employer and employee retirement contributions based on
2894 the member’s rate of monthly compensation immediately prior to
2895 his or her receiving workers’ compensation payments for
2896 retirement credit received by the member. The employer of record
2897 at the time of the workers’ compensation injury or illness shall
2898 be assessed by the division a penalty of 1 percent of the
2899 contributions on all contributions not paid on the first payroll
2900 report after the member becomes eligible to receive credit. This
2901 delinquent assessment may not be waived.
2902 Section 22. Section 121.161, Florida Statutes, is reenacted
2903 to read:
2904 121.161 References to other laws include amendments.
2905 References in this chapter to state or federal laws or
2906 agreements are intended to include such laws as they now exist
2907 or may hereafter be amended.
2908 Section 23. Section 121.182, Florida Statutes, is amended
2909 to read:
2910 121.182 Retirement annuities authorized for city and county
2911 personnel.—Cities Municipalities and counties are authorized to
2912 purchase annuities for all city municipal and county personnel
2913 with 25 or more years of creditable service who have reached age
2914 50 and have applied for retirement under the Florida Retirement
2915 System. No such annuity shall provide for more than the total
2916 difference in retirement income between the retirement benefit
2917 based on average monthly compensation and creditable service as
2918 of the member’s early retirement date and the early retirement
2919 benefit. Cities Municipalities and counties may also purchase
2920 annuities for members of the Florida Retirement System who have
2921 out-of-state service in another state or country which is
2922 documented as valid by the appropriate city or county. Such
2923 annuities may be based on no more than 5 years of out-of-state
2924 service and may equal, but not exceed, the benefits that would
2925 be payable under the Florida Retirement System if credit for
2926 out-of-state service was authorized under that system. Cities
2927 Municipalities and counties are authorized to invest funds,
2928 purchase annuities, or provide local supplemental retirement
2929 programs for purposes of providing annuities for city or county
2930 personnel. All retirement annuities shall comply with s. 14,
2931 Art. X of the State Constitution.
2932 Section 24. Paragraphs (g) and (i) of subsection (3) and
2933 subsections (4) and (5) of section 121.35, Florida Statutes, are
2934 amended to read:
2935 121.35 Optional retirement program for the State University
2936 System.—
2937 (3) ELECTION OF OPTIONAL PROGRAM.—
2938 (g) An eligible employee who is a member of the Florida
2939 Retirement System at the time of election to participate in the
2940 optional retirement program shall retain all retirement service
2941 credit earned under the Florida Retirement System, at the rate
2942 earned. No additional service credit in the Florida Retirement
2943 System shall may not be earned while the employee participates
2944 in the optional program, nor shall and the employee be is not
2945 eligible for disability retirement under the Florida Retirement
2946 System. An eligible employee may transfer from the Florida
2947 Retirement System to his or her accounts under the State
2948 University System Optional Retirement Program a sum representing
2949 the present value of the employee’s accumulated benefit
2950 obligation under the defined benefit program of the Florida
2951 Retirement System pension plan for any service credit accrued
2952 from the employee’s first eligible transfer date to the optional
2953 retirement program through the actual date of such transfer, if
2954 such service credit was earned in the period from July 1, 1984,
2955 through December 31, 1992. The present value of the employee’s
2956 accumulated benefit obligation shall be calculated as described
2957 in s. 121.4501(3)(c)2. Upon such transfer, all such service
2958 credit previously earned under the defined benefit program of
2959 the Florida Retirement System pension plan during this period
2960 shall be is nullified for purposes of entitlement to a future
2961 benefit under the defined benefit program of the Florida
2962 Retirement System pension plan.
2963 (i) Effective January 1, 2008, through December 31, 2008,
2964 except for an employee who is a mandatory participant of the
2965 State University System Optional Retirement Program, an employee
2966 who has elected to participate in the State University System
2967 Optional Retirement Program shall have one opportunity, at the
2968 employee’s discretion, to choose to transfer from this program
2969 to the defined benefit program of the Florida Retirement System
2970 Pension Plan or to the Public Employee Optional Retirement
2971 Program investment plan, subject to the terms of the applicable
2972 contracts of the State University System Optional Retirement
2973 Program.
2974 1. If the employee chooses to move to the Public Employee
2975 Optional Retirement Program investment plan, any contributions,
2976 interest, and earnings creditable to the employee under the
2977 State University System Optional Retirement Program shall must
2978 be retained by the employee in the State University System
2979 Optional Retirement Program, and the applicable provisions of s.
2980 121.4501(4) shall govern the election.
2981 2. If the employee chooses to move to the defined benefit
2982 program pension plan of the Florida Retirement System, the
2983 employee shall receive service credit equal to his or her years
2984 of service under the State University System Optional Retirement
2985 Program.
2986 a. The cost for such credit shall be must be in an amount
2987 representing the actuarial accrued liability for the affected
2988 period of service. The cost shall must be calculated using the
2989 discount rate and other relevant actuarial assumptions that were
2990 used to value the Florida Retirement System Defined Benefit
2991 Pension Plan liabilities in the most recent actuarial valuation.
2992 The calculation shall must include any service already
2993 maintained under the defined benefit pension plan in addition to
2994 the years under the State University System Optional Retirement
2995 Program. The actuarial accrued liability of any service already
2996 maintained under the defined benefit pension plan shall must be
2997 applied as a credit to total cost resulting from the
2998 calculation. The division shall must ensure that the transfer
2999 sum is prepared using a formula and methodology certified by an
3000 enrolled actuary.
3001 b. The employee must transfer from his or her State
3002 University System Optional Retirement Program account, and from
3003 other employee moneys as necessary, a sum representing the
3004 actuarial accrued liability immediately after following the time
3005 of such movement, determined assuming that attained service
3006 equals the sum of service in the defined benefit program pension
3007 plan and service in the State University System Optional
3008 Retirement Program.
3009 (4) CONTRIBUTIONS.—
3010 (a)1. Through June 30, 2001, each employer shall contribute
3011 on behalf of each participant in member of the optional
3012 retirement program an amount equal to the normal cost portion of
3013 the employer retirement contribution which would be required if
3014 the participant employee were a regular member of the Florida
3015 Retirement System defined benefit program System Pension Plan,
3016 plus the portion of the contribution rate required in s.
3017 112.363(8) that would otherwise be assigned to the Retiree
3018 Health Insurance Subsidy Trust Fund.
3019 2. Effective July 1, 2001, through June 30, 2011, each
3020 employer shall contribute on behalf of each participant in
3021 member of the optional retirement program an amount equal to
3022 10.43 percent of the participant’s employee’s gross monthly
3023 compensation.
3024 3. Effective July 1, 2011, each member of the optional
3025 retirement program shall contribute an amount equal to the
3026 employee contribution required in s. 121.71(3). The employer
3027 shall contribute on behalf of each such member an amount equal
3028 to the difference between 10.43 percent of the employee’s gross
3029 monthly compensation and the amount equal to the employee’s
3030 required contribution based on the employee’s gross monthly
3031 compensation.
3032 4. The department shall deduct an amount approved by the
3033 Legislature to provide for the administration of this program.
3034 The payment of the contributions to the optional program which
3035 is required by this paragraph for each participant, including
3036 contributions by the employee, shall be made by the employer to
3037 the department, which shall forward the contributions to the
3038 designated company or companies contracting for payment of
3039 benefits for the participant under members of the program.
3040 However, such contributions paid on behalf of an employee
3041 described in paragraph (3)(c) shall may not be forwarded to a
3042 company and shall do not begin to accrue interest until the
3043 employee has executed a contract and notified the department.
3044 The department shall deduct an amount from the contributions to
3045 provide for the administration of this program.
3046 (b) Each employer shall contribute on behalf of each
3047 participant in member of the optional retirement program an
3048 amount equal to the unfunded actuarial accrued liability portion
3049 of the employer contribution which would be required for members
3050 of the Florida Retirement System. This contribution shall be
3051 paid to the department for transfer to the Florida Retirement
3052 System Trust Fund.
3053 (c) An Optional Retirement Program Trust Fund shall be
3054 established in the State Treasury and administered by the
3055 department to make payments to the provider companies on behalf
3056 of the optional retirement program participants members, and to
3057 transfer the unfunded liability portion of the state optional
3058 retirement program contributions to the Florida Retirement
3059 System Trust Fund.
3060 (d) Contributions required for social security by each
3061 employer and each participant employee, in the amount required
3062 for social security coverage as now or hereafter may be provided
3063 by the federal Social Security Act, shall be maintained for each
3064 participant in member of the optional retirement program and
3065 shall be are in addition to the retirement contributions
3066 specified in this subsection.
3067 (e) Each participant in member of the optional retirement
3068 program who has executed a contract may contribute by way of
3069 salary reduction or deduction a percentage amount of the
3070 participant’s employee’s gross compensation not to exceed the
3071 percentage amount contributed by the employer to the optional
3072 program, but in no case may such contribution may not exceed
3073 federal limitations. Payment of the participant’s employee’s
3074 contributions shall be made by the financial officer of the
3075 employer to the division which shall forward the contributions
3076 to the designated company or companies contracting for payment
3077 of benefits for the participant under members of the program. A
3078 participant member may not make, through salary reduction, any
3079 voluntary employee contributions to any other plan under s.
3080 403(b) of the Internal Revenue Code, with the exception of a
3081 custodial account under s. 403(b)(7) of the Internal Revenue
3082 Code, until he or she has made an employee contribution to his
3083 or her optional program equal to the employer contribution. A
3084 participant An employee is responsible for monitoring his or her
3085 individual tax-deferred income to ensure he or she does not
3086 exceed the maximum deferral amounts permitted under the Internal
3087 Revenue Code.
3088 (f) The Optional Retirement Trust Fund may accept for
3089 deposit into participant member contracts contributions in the
3090 form of rollovers or direct trustee-to-trustee transfers by or
3091 on behalf of participants members who are reasonably determined
3092 by the department to be eligible for rollover or transfer to the
3093 optional retirement program pursuant to the Internal Revenue
3094 Code, if such contributions are made in accordance with rules
3095 adopted by the department. Such contributions shall be accounted
3096 for in accordance with any applicable requirements of the
3097 Internal Revenue Code and department rules of the department.
3098 (g) Effective July 1, 2008, for purposes of paragraph (a)
3099 and notwithstanding s. 121.021(22)(b)1., the term “participant’s
3100 employee’s gross monthly compensation” includes salary payments
3101 made to eligible clinical faculty from a state university using
3102 funds provided by a faculty practice plan authorized by the
3103 Board of Governors of the State University System if:
3104 1. There is not any no employer contribution from the state
3105 university to any other retirement program with respect to such
3106 salary payments; and
3107 2. The employer contribution on behalf of the participant
3108 in a member of the optional retirement program with respect to
3109 such salary payments is made using funds provided by the faculty
3110 practice plan.
3111 (5) BENEFITS.—
3112 (a) Benefits are payable under the optional retirement
3113 program only to vested participants members participating in the
3114 program, or their beneficiaries as designated by the participant
3115 member in the contract with a provider company, and such
3116 benefits shall be paid only by the designated company in
3117 accordance with s. 403(b) of the Internal Revenue Code and the
3118 terms of the annuity contract or contracts applicable to the
3119 participant member. Benefits accrue in individual accounts that
3120 are participant-directed member-directed, portable, and funded
3121 by employer and employee contributions and the earnings thereon.
3122 The participant member must be terminated for 3 calendar months
3123 from all employment relationships with all Florida Retirement
3124 System employers, as provided in s. 121.021(39), to begin
3125 receiving the employer-funded benefit. Benefits funded by
3126 employer and employee contributions are payable in accordance
3127 with the following terms and conditions:
3128 1. Benefits shall be paid only to a participant
3129 participating member, to his or her beneficiaries, or to his or
3130 her estate, as designated by the participant member.
3131 2. Benefits shall be paid by the provider company or
3132 companies in accordance with the law, the provisions of the
3133 contract, and any applicable department rule or policy.
3134 3. In the event of a participant’s member’s death, moneys
3135 accumulated by, or on behalf of, the participant member, less
3136 withholding taxes remitted to the Internal Revenue Service, if
3137 any, shall be distributed to the participant’s member’s
3138 designated beneficiary or beneficiaries, or to the participant’s
3139 member’s estate, as if the participant member retired on the
3140 date of death, as provided in paragraph (c) (d). No other death
3141 benefits are available to survivors of participants members
3142 under the optional retirement program except for such benefits,
3143 or coverage for such benefits, as are separately afforded by the
3144 employer, at the employer’s discretion.
3145 (b) Benefits, including employee contributions, are not
3146 payable for employee hardships, unforeseeable emergencies,
3147 loans, medical expenses, educational expenses, purchase of a
3148 principal residence, payments necessary to prevent eviction or
3149 foreclosure on an employee’s principal residence, or any other
3150 reason before termination from all employment relationships with
3151 participating employers for 3 calendar months.
3152 (b)(c) Upon receipt by the provider company of a properly
3153 executed application for distribution of benefits, the total
3154 accumulated benefit shall be is payable to the participant
3155 participating member as:
3156 1. A lump-sum distribution to the participant member;
3157 2. A lump-sum direct rollover distribution whereby all
3158 accrued benefits, plus interest and investment earnings, are
3159 paid from the participant’s member’s account directly to an
3160 eligible retirement plan, as defined in s. 402(c)(8)(B) of the
3161 Internal Revenue Code, on behalf of the participant member;
3162 3. Periodic distributions;
3163 4. A partial lump-sum payment whereby a portion of the
3164 accrued benefit is paid to the participant member and the
3165 remaining amount is transferred to an eligible retirement plan,
3166 as defined in s. 402(c)(8)(B) of the Internal Revenue Code, on
3167 behalf of the participant member; or
3168 5. Such other distribution options as are provided for in
3169 the participant’s member’s optional retirement program contract.
3170 (c)(d) Survivor benefits shall be are payable as:
3171 1. A lump-sum distribution payable to the beneficiaries or
3172 to the deceased participant’s member’s estate;
3173 2. An eligible rollover distribution on behalf of the
3174 surviving spouse of a deceased participant member, whereby all
3175 accrued benefits, plus interest and investment earnings, are
3176 paid from the deceased participant’s member’s account directly
3177 to an eligible retirement plan, as described in s. 402(c)(8)(B)
3178 of the Internal Revenue Code, on behalf of the surviving spouse;
3179 3. Such other distribution options as are provided for in
3180 the participant’s member’s optional retirement program contract;
3181 or
3182 4. A partial lump-sum payment whereby a portion of the
3183 accrued benefit is paid to the deceased participant’s member’s
3184 surviving spouse or other designated beneficiaries, less
3185 withholding taxes remitted to the Internal Revenue Service, if
3186 any, and the remaining amount is transferred directly to an
3187 eligible retirement plan, as described in s. 402(c)(8)(B) of the
3188 Internal Revenue Code, on behalf of the surviving spouse. The
3189 proportions must be specified by the participant member or the
3190 surviving beneficiary.
3191
3192 This paragraph does not abrogate other applicable provisions of
3193 state or federal law providing payment of death benefits.
3194 (d)(e) The benefits payable to any person under the
3195 optional retirement program, and any contribution accumulated
3196 under such program, shall are not be subject to assignment,
3197 execution, or attachment or to any legal process whatsoever.
3198 (e)(f) A participant participating member who chooses to
3199 receive his or her benefits upon termination as defined in s.
3200 121.021 must be terminated for 3 calendar months to be eligible
3201 to receive benefits funded by employer and employee
3202 contributions. The member must notify the provider company of
3203 the date he or she wishes benefits funded by required employer
3204 and employee contributions to begin and must be terminated as
3205 defined in s. 121.021 after the initial benefit payment or
3206 distribution is received. Benefits may be deferred until the
3207 participant member chooses to make such application.
3208 (f)(g) Benefits funded by the participant’s participating
3209 member’s voluntary personal contributions may be paid out at any
3210 time and in any form within the limits provided in the contract
3211 between the participant member and his or her the provider
3212 company. The participant member shall notify the provider
3213 company regarding the date and provisions under which he or she
3214 wants to receive the employee-funded portion of the plan.
3215 (g)(h) For purposes of this section, “retiree” means a
3216 former participant participating member of the optional
3217 retirement program who has terminated employment and has taken a
3218 distribution as provided in this subsection, except for a
3219 mandatory distribution of a de minimis account authorized by the
3220 department.
3221 Section 25. Section 121.355, Florida Statutes, is amended
3222 to read:
3223 121.355 Community College Optional Retirement Program and
3224 State University System Optional Retirement Program member
3225 transfer.—Effective January 1, 2009, through December 31, 2009,
3226 an employee who is a former participant in member of the
3227 Community College Optional Retirement Program or the State
3228 University System Optional Retirement Program and present
3229 mandatory participant in member of the Florida Retirement System
3230 Defined Benefit System Pension Plan may receive service credit
3231 equal to his or her years of service under the Community College
3232 Optional Retirement Program or the State University System
3233 Optional Retirement Program under the following conditions:
3234 (1) The cost for such credit shall be an amount
3235 representing must represent the actuarial accrued liability for
3236 the affected period of service. The cost shall be calculated
3237 using the discount rate and other relevant actuarial assumptions
3238 that were used to value the Florida Retirement System Defined
3239 Benefit System Pension Plan liabilities in the most recent
3240 actuarial valuation. The calculation shall must include any
3241 service already maintained under the defined benefit pension
3242 plan in addition to the years under the Community College
3243 Optional Retirement Program or the State University System
3244 Optional Retirement Program. The actuarial accrued liability of
3245 any service already maintained under the defined benefit pension
3246 plan shall be applied as a credit to total cost resulting from
3247 the calculation. The division shall ensure that the transfer sum
3248 is prepared using a formula and methodology certified by an
3249 enrolled actuary.
3250 (2) The employee must transfer from his or her Community
3251 College Optional Retirement Program account or State University
3252 System Optional Retirement Program account, subject to the terms
3253 of the applicable optional retirement program contract, and from
3254 other employee moneys as necessary, a sum representing the
3255 actuarial accrued liability immediately after following the time
3256 of such movement, determined assuming that attained service
3257 equals the sum of service in the defined benefit program pension
3258 plan and service in the Community College Optional Retirement
3259 Program or State University System Optional Retirement Program.
3260 (3) The employee may not receive service credit for a
3261 period of mandatory participation in the State University
3262 Optional Retirement Program or for a period for which a
3263 distribution was received from the Community College Optional
3264 Retirement Program or State University System Optional
3265 Retirement Program.
3266 Section 26. Section 121.4501, Florida Statutes, is amended
3267 to read:
3268 121.4501 Public Employee Optional Retirement Program
3269 Florida Retirement System Investment Plan.—
3270 (1) The Trustees of the State Board of Administration shall
3271 establish an optional a defined contribution retirement program
3272 called the “Florida Retirement System Investment Plan” or
3273 “investment plan” for members of the Florida Retirement System
3274 under which retirement benefits will be provided for eligible
3275 employees who elect to participate in the program. The
3276 retirement benefits to be provided for or on behalf of
3277 participants in such optional retirement program shall be
3278 provided through employee-directed member-directed investments,
3279 in accordance with s. 401(a) of the Internal Revenue Code and
3280 its related regulations. The employers employer and employee
3281 shall contribute make contributions, as provided in this
3282 section, and ss. 121.571, and 121.71, to the Public Employee
3283 Optional Retirement Program Florida Retirement System Investment
3284 Plan Trust Fund toward the funding of such optional benefits.
3285 (2) DEFINITIONS.—As used in this part, the term:
3286 (a) “Approved provider” or “provider” means a private
3287 sector company that is selected and approved by the state board
3288 to offer one or more investment products or services to the
3289 optional retirement program investment plan. The term includes a
3290 bundled provider that offers participants members a range of
3291 individually allocated or unallocated investment products and
3292 may offer a range of administrative and customer services, which
3293 may include accounting and administration of individual
3294 participant member benefits and contributions; individual
3295 participant member recordkeeping; asset purchase, control, and
3296 safekeeping; direct execution of the participant’s member’s
3297 instructions as to asset and contribution allocation;
3298 calculation of daily net asset values; direct access to
3299 participant member account information; periodic reporting to
3300 participants members, at least quarterly, on account balances
3301 and transactions; guidance, advice, and allocation services
3302 directly relating to the provider’s own investment options or
3303 products, but only if the bundled provider complies with the
3304 standard of care of s. 404(a)(1)(A-B) of the Employee Retirement
3305 Income Security Act of 1974 (ERISA), and if providing such
3306 guidance, advice, or allocation services does not constitute a
3307 prohibited transaction under s. 4975(c)(1) of the Internal
3308 Revenue Code or s. 406 of ERISA, notwithstanding that such
3309 prohibited transaction provisions do not apply to the optional
3310 retirement program; a broad array of distribution options; asset
3311 allocation; and retirement counseling and education. Private
3312 sector companies include investment management companies,
3313 insurance companies, depositories, and mutual fund companies.
3314 (b) “Average monthly compensation” means one-twelfth of
3315 average final compensation as defined in s. 121.021.
3316 (c) “Covered employment” means employment in a regularly
3317 established position as defined in s. 121.021.
3318 (d) “Defined benefit program” means the defined benefit
3319 program of the Florida Retirement System administered under part
3320 I of this chapter.
3321 (e) “Division” means the Division of Retirement within the
3322 department.
3323 (f)(d) “Electronic means” means by telephone, if the
3324 required information is received on a recorded line, or through
3325 Internet access, if the required information is captured online.
3326 (g)(e) “Eligible employee” means an officer or employee, as
3327 defined in s. 121.021, who:
3328 1. Is a member of, or is eligible for membership in, the
3329 Florida Retirement System, including any renewed member of the
3330 Florida Retirement System initially enrolled before July 1,
3331 2010; or
3332 2. Participates in, or is eligible to participate in, the
3333 Senior Management Service Optional Annuity Program as
3334 established under s. 121.055(6), the State Community College
3335 System Optional Retirement Program as established under s.
3336 121.051(2)(c), or the State University System Optional
3337 Retirement Program established under s. 121.35.
3338
3339 The term does not include any member participating in the
3340 Deferred Retirement Option Program established under s.
3341 121.091(13), a retiree of a state-administered retirement system
3342 initially reemployed on or after July 1, 2010, or a mandatory
3343 participant of the State University System Optional Retirement
3344 Program established under s. 121.35.
3345 (h)(f) “Employer” means an employer, as defined in s.
3346 121.021, of an eligible employee.
3347 (i)(g) “Optional retirement program” or “optional program”
3348 “Florida Retirement System Investment Plan” or “investment plan”
3349 means the Public Employee Optional Retirement Program defined
3350 contribution program established under this part.
3351 (h) “Florida Retirement System Pension Plan” or “pension
3352 plan” means the defined benefit program of the Florida
3353 Retirement System administered under part I of this chapter.
3354 (j)(i) “Participant” “Member” or “employee” means an
3355 eligible employee who enrolls in the investment plan optional
3356 program as provided in subsection (4) or, a terminated Deferred
3357 Retirement Option Program participant member as described in
3358 subsection (21), or a beneficiary or alternate payee of a member
3359 or employee.
3360 (j) “Member contributions” or “employee contributions”
3361 means the sum of all amounts deducted from the salary of a
3362 member by his or her employer in accordance with s. 121.71(3)
3363 and credited to his or her individual account in the investment
3364 plan, plus any earnings on such amounts and any contributions
3365 specified in paragraph (5)(e).
3366 (k) “Retiree” means a former participant member of the
3367 optional retirement program investment plan who has terminated
3368 employment and has taken a distribution of vested employee or
3369 employer contributions as provided in s. 121.591, except for a
3370 mandatory distribution of a de minimis account authorized by the
3371 state board or a minimum required distribution provided by s.
3372 401(a)(9) of the Internal Revenue Code.
3373 (l) “Vested” or “vesting” means the guarantee that a
3374 participant member is eligible to receive a retirement benefit
3375 upon completion of the required years of service under the
3376 optional retirement program investment plan.
3377 (3) ELIGIBILITY; RETIREMENT SERVICE CREDIT; TRANSFER OF
3378 BENEFITS.—
3379 (a) Participation in the Public Employee Optional
3380 Retirement Program is limited to eligible employees.
3381 Participation in the optional retirement program is in lieu of
3382 participation in the defined benefit program of the Florida
3383 Retirement System.
3384 (b)(a) An eligible employee who is a member of the defined
3385 benefit retirement program of the Florida Retirement System
3386 employed in a regularly established position by a state employer
3387 on June 1, 2002; by a district school board employer on
3388 September 1, 2002; or by a local employer on December 1, 2002,
3389 and who is a member of the pension plan at the time of his or
3390 her election to participate in the Public Employee Optional
3391 Retirement Program investment plan shall retain all retirement
3392 service credit earned under the defined benefit retirement
3393 program of the Florida Retirement System pension plan as
3394 credited under the system and shall be is entitled to a deferred
3395 benefit upon termination, if eligible under the system. However,
3396 election to participate enroll in the Public Employee Optional
3397 Retirement Program investment plan terminates the active
3398 membership of the employee in the defined benefit program of the
3399 Florida Retirement System pension plan, and the service of a
3400 participant member in the Public Employee Optional Retirement
3401 Program shall investment plan is not be creditable under the
3402 defined benefit retirement program of the Florida Retirement
3403 System pension plan for purposes of benefit accrual but shall be
3404 credited is creditable for purposes of vesting.
3405 (c)1.(b) Notwithstanding paragraph (b), each (a), an
3406 eligible employee who elects to participate in the Public
3407 Employee Optional Retirement Program investment plan and
3408 establishes one or more individual participant member accounts
3409 under the optional program may elect to transfer to the optional
3410 program investment plan a sum representing the present value of
3411 the employee’s accumulated benefit obligation under the defined
3412 benefit retirement program of the Florida Retirement System
3413 pension plan. Upon such transfer, all service credit previously
3414 earned under the defined benefit program of the Florida
3415 Retirement System shall be pension plan is nullified for
3416 purposes of entitlement to a future benefit under the defined
3417 benefit program of the Florida Retirement System pension plan. A
3418 participant is precluded from transferring member may not
3419 transfer the accumulated benefit obligation balance from the
3420 defined benefit program upon the expiration of the pension plan
3421 after the time period afforded to enroll for enrolling in the
3422 optional program investment plan has expired.
3423 2.1. For purposes of this subsection, the present value of
3424 the member’s accumulated benefit obligation is based upon the
3425 member’s estimated creditable service and estimated average
3426 final compensation under the defined benefit program pension
3427 plan, subject to recomputation under subparagraph 3. 2. For
3428 state employees enrolling under subparagraph (4)(a)1., initial
3429 estimates will shall be based upon creditable service and
3430 average final compensation as of midnight on June 30, 2002; for
3431 district school board employees enrolling under subparagraph
3432 (4)(b)1., initial estimates will shall be based upon creditable
3433 service and average final compensation as of midnight on
3434 September 30, 2002; and for local government employees enrolling
3435 under subparagraph (4)(c)1., initial estimates will shall be
3436 based upon creditable service and average final compensation as
3437 of midnight on December 31, 2002. The dates respectively
3438 specified above shall be construed as are the “estimate date”
3439 for these employees. The actuarial present value of the
3440 employee’s accumulated benefit obligation shall be based on the
3441 following:
3442 a. The discount rate and other relevant actuarial
3443 assumptions used to value the Florida Retirement System Trust
3444 Fund at the time the amount to be transferred is determined,
3445 consistent with the factors provided in sub-subparagraphs b. and
3446 c.
3447 b. A benefit commencement age, based on the member’s
3448 estimated creditable service as of the estimate date.
3449 c. Except as provided under sub-subparagraph d., for a
3450 member initially enrolled:
3451 (I) Before July 1, 2011, The benefit commencement age shall
3452 be is the younger of the following, but shall may not be younger
3453 than the member’s age as of the estimate date:
3454 (I)(A) Age 62; or
3455 (II)(B) The age the member would attain if the member
3456 completed 30 years of service with an employer, assuming the
3457 member worked continuously from the estimate date, and
3458 disregarding any vesting requirement that would otherwise apply
3459 under the defined benefit program of the Florida Retirement
3460 System pension plan.
3461 (II) On or after July 1, 2011, the benefit commencement age
3462 is the younger of the following, but may not be younger than the
3463 member’s age as of the estimate date:
3464 (A) Age 65; or
3465 (B) The age the member would attain if the member completed
3466 33 years of service with an employer, assuming the member worked
3467 continuously from the estimate date, and disregarding any
3468 vesting requirement that would otherwise apply under the pension
3469 plan.
3470 c.d. For members of the Special Risk Class and for members
3471 of the Special Risk Administrative Support Class entitled to
3472 retain the special risk normal retirement date:
3473 (I) Initially enrolled before July 1, 2011, the benefit
3474 commencement age shall be is the younger of the following, but
3475 shall may not be younger than the member’s age as of the
3476 estimate date:
3477 (I)(A) Age 55; or
3478 (II)(B) The age the member would attain if the member
3479 completed 25 years of service with an employer, assuming the
3480 member worked continuously from the estimate date, and
3481 disregarding any vesting requirement that would otherwise apply
3482 under the defined benefit program of the Florida Retirement
3483 System pension plan.
3484 (II) Initially enrolled on or after July 1, 2011, the
3485 benefit commencement age is the younger of the following, but
3486 may not be younger than the member’s age as of the estimate
3487 date:
3488 (A) Age 60; or
3489 (B) The age the member would attain if the member completed
3490 30 years of service with an employer, assuming the member worked
3491 continuously from the estimate date, and disregarding any
3492 vesting requirement that would otherwise apply under the pension
3493 plan.
3494 d.e. The calculation shall must disregard vesting
3495 requirements and early retirement reduction factors that would
3496 otherwise apply under the defined benefit retirement program
3497 pension plan.
3498 3.2. For each participant member who elects to transfer
3499 moneys from the defined benefit program pension plan to his or
3500 her account in the optional program investment plan, the
3501 division shall recompute the amount transferred under
3502 subparagraph 2. not later than 1. within 60 days after the
3503 actual transfer of funds based upon the participant’s member’s
3504 actual creditable service and actual final average compensation
3505 as of the initial date of participation in the optional program
3506 investment plan. If the recomputed amount differs from the
3507 amount transferred under subparagraph 2. by $10 or more, the
3508 division shall:
3509 a. Transfer, or cause to be transferred, from the Florida
3510 Retirement System Trust Fund to the participant’s member’s
3511 account in the optional program the excess, if any, of the
3512 recomputed amount over the previously transferred amount
3513 together with interest from the initial date of transfer to the
3514 date of transfer under this subparagraph, based upon the
3515 effective annual interest equal to the assumed return on the
3516 actuarial investment which was used in the most recent actuarial
3517 valuation of the system, compounded annually.
3518 b. Transfer, or cause to be transferred, from the
3519 participant’s member’s account to the Florida Retirement System
3520 Trust Fund the excess, if any, of the previously transferred
3521 amount over the recomputed amount, together with interest from
3522 the initial date of transfer to the date of transfer under this
3523 subparagraph, based upon 6 percent effective annual interest,
3524 compounded annually, pro rata based on the participant’s
3525 member’s allocation plan.
3526 3. If contribution adjustments are made as a result of
3527 employer errors or corrections, including plan corrections,
3528 following recomputation of the amount transferred under
3529 subparagraph 1., the member is entitled to the additional
3530 contributions or is responsible for returning any excess
3531 contributions resulting from the correction. However, any return
3532 of such erroneous excess pretax contribution by the plan must be
3533 made within the period allowed by the Internal Revenue Service.
3534 The present value of the member’s accumulated benefit obligation
3535 shall not be recalculated.
3536 4. As directed by the participant member, the state board
3537 shall transfer or cause to be transferred the appropriate
3538 amounts to the designated accounts. The board shall establish
3539 transfer procedures by rule, but the actual transfer shall not
3540 be later than within 30 days after the effective date of the
3541 member’s participation in the optional program investment plan
3542 unless the major financial markets for securities available for
3543 a transfer are seriously disrupted by an unforeseen event which
3544 also that causes the suspension of trading on any national
3545 securities exchange in the country where the securities were
3546 issued. In that event, such the 30-day period of time may be
3547 extended by a resolution of the trustees state board. Transfers
3548 are not commissionable or subject to other fees and may be in
3549 the form of securities or cash, as determined by the state
3550 board. Such securities shall be are valued as of the date of
3551 receipt in the participant’s member’s account.
3552 5. If the state board or the division receives notification
3553 from the United States Internal Revenue Service that this
3554 paragraph or any portion of this paragraph will cause the
3555 retirement system, or a portion thereof, to be disqualified for
3556 tax purposes under the Internal Revenue Code, then the portion
3557 that will cause the disqualification does not apply. Upon such
3558 notice, the state board and the division shall notify the
3559 presiding officers of the Legislature.
3560 (4) PARTICIPATION; ENROLLMENT.—
3561 (a)1. With respect to an eligible employee who is employed
3562 in a regularly established position on June 1, 2002, by a state
3563 employer:
3564 a. Any such employee may elect to participate in the Public
3565 Employee Optional Retirement Program investment plan in lieu of
3566 retaining his or her membership in the defined benefit program
3567 of the Florida Retirement System pension plan. The election must
3568 be made in writing or by electronic means and must be filed with
3569 the third-party administrator by August 31, 2002, or, in the
3570 case of an active employee who is on a leave of absence on April
3571 1, 2002, by the last business day of the 5th month after
3572 following the month the leave of absence concludes. This
3573 election is irrevocable, except as provided in paragraph (e)(g).
3574 Upon making such election, the employee shall be enrolled as a
3575 participant member of the Public Employee Optional Retirement
3576 Program investment plan, the employee’s membership in the
3577 Florida Retirement System shall be is governed by the provisions
3578 of this part, and the employee’s membership in the defined
3579 benefit program of the Florida Retirement System shall terminate
3580 pension plan terminates. The employee’s enrollment in the Public
3581 Employee Optional Retirement Program shall be investment plan is
3582 effective the first day of the month for which a full month’s
3583 employer contribution is made to the optional program investment
3584 plan.
3585 b. Any such employee who fails to elect to participate in
3586 the Public Employee Optional Retirement Program investment plan
3587 within the prescribed time period is deemed to have elected to
3588 retain membership in the defined benefit program of the Florida
3589 Retirement System pension plan, and the employee’s option to
3590 elect to participate in the optional program investment plan is
3591 forfeited.
3592 2. With respect to employees who become eligible to
3593 participate in the Public Employee Optional Retirement Program
3594 investment plan by reason of employment in a regularly
3595 established position with a state employer commencing after
3596 April 1, 2002:
3597 a. Any such employee shall, by default, be enrolled in the
3598 defined benefit retirement program of the Florida Retirement
3599 System pension plan at the commencement of employment, and may,
3600 by the last business day of the 5th month after following the
3601 employee’s month of hire, elect to participate in the Public
3602 Employee Optional Retirement Program investment plan. The
3603 employee’s election must be made in writing or by electronic
3604 means and must be filed with the third-party administrator. The
3605 election to participate in the optional program investment plan
3606 is irrevocable, except as provided in paragraph (e) (g).
3607 b. If the employee files such election within the
3608 prescribed time period, enrollment in the optional program shall
3609 be investment plan is effective on the first day of employment.
3610 The employer retirement contributions paid through the month of
3611 the employee plan change shall be transferred to the optional
3612 investment program, and, effective the first day of the next
3613 month, the employer shall and employee must pay the applicable
3614 contributions based on the employee membership class in the
3615 optional program.
3616 c. Any such An employee who fails to elect to participate
3617 in the Public Employee Optional Retirement Program investment
3618 plan within the prescribed time period is deemed to have elected
3619 to retain membership in the defined benefit program of the
3620 Florida Retirement System pension plan, and the employee’s
3621 option to elect to participate in the optional program
3622 investment plan is forfeited.
3623 3. With respect to employees who become eligible to
3624 participate in the Public Employee Optional Retirement Program
3625 investment plan pursuant to s. 121.051(2)(c)3. or s.
3626 121.35(3)(i), any such the employee may elect to participate in
3627 the Public Employee Optional Retirement Program investment plan
3628 in lieu of retaining his or her participation membership in the
3629 State Community College System Optional Retirement Program or
3630 the State University System Optional Retirement Program. The
3631 election must be made in writing or by electronic means and must
3632 be filed with the third-party administrator. This election is
3633 irrevocable, except as provided in paragraph (e) (g). Upon
3634 making such election, the employee shall be enrolled as a
3635 participant of member in the Public Employee Optional Retirement
3636 Program investment plan, the employee’s membership in the
3637 Florida Retirement System shall be is governed by the provisions
3638 of this part, and the employee’s participation in the State
3639 Community College System Optional Retirement Program or the
3640 State University System Optional Retirement Program shall
3641 terminate terminates. The employee’s enrollment in the Public
3642 Employee Optional Retirement Program shall be investment plan is
3643 effective on the first day of the month for which a full month’s
3644 employer and employee contribution is made to the optional
3645 program investment plan.
3646 4. For purposes of this paragraph, “state employer” means
3647 any agency, board, branch, commission, community college,
3648 department, institution, institution of higher education, or
3649 water management district of the state, which participates in
3650 the Florida Retirement System for the benefit of certain
3651 employees.
3652 (b)1. With respect to an eligible employee who is employed
3653 in a regularly established position on September 1, 2002, by a
3654 district school board employer:
3655 a. Any such employee may elect to participate in the Public
3656 Employee Optional Retirement Program investment plan in lieu of
3657 retaining his or her membership in the defined benefit program
3658 of the Florida Retirement System pension plan. The election must
3659 be made in writing or by electronic means and must be filed with
3660 the third-party administrator by November 30, or, in the case of
3661 an active employee who is on a leave of absence on July 1, 2002,
3662 by the last business day of the 5th month after following the
3663 month the leave of absence concludes. This election is
3664 irrevocable, except as provided in paragraph (e) (g). Upon
3665 making such election, the employee shall be enrolled as a
3666 participant member of the Public Employee Optional Retirement
3667 Program investment plan, the employee’s membership in the
3668 Florida Retirement System shall be is governed by the provisions
3669 of this part, and the employee’s membership in the defined
3670 benefit program of the Florida Retirement System shall terminate
3671 pension plan terminates. The employee’s enrollment in the Public
3672 Employee Optional Retirement Program shall be investment plan is
3673 effective the first day of the month for which a full month’s
3674 employer contribution is made to the optional investment
3675 program.
3676 b. Any such employee who fails to elect to participate in
3677 the Public Employee Optional Retirement Program investment plan
3678 within the prescribed time period is deemed to have elected to
3679 retain membership in the defined benefit program of the Florida
3680 Retirement System pension plan, and the employee’s option to
3681 elect to participate in the optional program investment plan is
3682 forfeited.
3683 2. With respect to employees who become eligible to
3684 participate in the Public Employee Optional Retirement Program
3685 investment plan by reason of employment in a regularly
3686 established position with a district school board employer
3687 commencing after July 1, 2002:
3688 a. Any such employee shall, by default, be enrolled in the
3689 defined benefit retirement program of the Florida Retirement
3690 System pension plan at the commencement of employment, and may,
3691 by the last business day of the 5th month following the
3692 employee’s month of hire, elect to participate in the Public
3693 Employee Optional Retirement Program investment plan. The
3694 employee’s election must be made in writing or by electronic
3695 means and must be filed with the third-party administrator. The
3696 election to participate in the optional program investment plan
3697 is irrevocable, except as provided in paragraph (e) (g).
3698 b. If the employee files such election within the
3699 prescribed time period, enrollment in the optional program shall
3700 be investment plan is effective on the first day of employment.
3701 The employer retirement contributions paid through the month of
3702 the employee plan change shall be transferred to the optional
3703 program investment plan, and, effective the first day of the
3704 next month, the employer shall pay the applicable contributions
3705 based on the employee membership class in the optional program
3706 investment plan.
3707 c. Any such employee who fails to elect to participate in
3708 the Public Employee Optional Retirement Program investment plan
3709 within the prescribed time period is deemed to have elected to
3710 retain membership in the defined benefit program of the Florida
3711 Retirement System pension plan, and the employee’s option to
3712 elect to participate in the optional program investment plan is
3713 forfeited.
3714 3. For purposes of this paragraph, “district school board
3715 employer” means any district school board that participates in
3716 the Florida Retirement System for the benefit of certain
3717 employees, or a charter school or charter technical career
3718 center that participates in the Florida Retirement System as
3719 provided in s. 121.051(2)(d).
3720 (c)1. With respect to an eligible employee who is employed
3721 in a regularly established position on December 1, 2002, by a
3722 local employer:
3723 a. Any such employee may elect to participate in the Public
3724 Employee Optional Retirement Program investment plan in lieu of
3725 retaining his or her membership in the defined benefit program
3726 of the Florida Retirement System pension plan. The election must
3727 be made in writing or by electronic means and must be filed with
3728 the third-party administrator by February 28, 2003, or, in the
3729 case of an active employee who is on a leave of absence on
3730 October 1, 2002, by the last business day of the 5th month
3731 following the month the leave of absence concludes. This
3732 election is irrevocable, except as provided in paragraph (e)
3733 (g). Upon making such election, the employee shall be enrolled
3734 as a participant of the Public Employee Optional Retirement
3735 Program investment plan, the employee’s membership in the
3736 Florida Retirement System shall be is governed by the provisions
3737 of this part, and the employee’s membership in the defined
3738 benefit program of the Florida Retirement System shall terminate
3739 pension plan terminates. The employee’s enrollment in the Public
3740 Employee Optional Retirement Program shall be investment plan is
3741 effective the first day of the month for which a full month’s
3742 employer contribution is made to the optional program investment
3743 plan.
3744 b. Any such employee who fails to elect to participate in
3745 the Public Employee Optional Retirement Program investment plan
3746 within the prescribed time period is deemed to have elected to
3747 retain membership in the defined benefit program of the Florida
3748 Retirement System pension plan, and the employee’s option to
3749 elect to participate in the optional program investment plan is
3750 forfeited.
3751 2. With respect to employees who become eligible to
3752 participate in the Public Employee Optional Retirement Program
3753 investment plan by reason of employment in a regularly
3754 established position with a local employer commencing after
3755 October 1, 2002:
3756 a. Any such employee shall, by default, be enrolled in the
3757 defined benefit retirement program of the Florida Retirement
3758 System pension plan at the commencement of employment, and may,
3759 by the last business day of the 5th month after following the
3760 employee’s month of hire, elect to participate in the Public
3761 Employee Optional Retirement Program investment plan. The
3762 employee’s election must be made in writing or by electronic
3763 means and must be filed with the third-party administrator. The
3764 election to participate in the optional program investment plan
3765 is irrevocable, except as provided in paragraph (e) (g).
3766 b. If the employee files such election within the
3767 prescribed time period, enrollment in the optional program shall
3768 be investment plan is effective on the first day of employment.
3769 The employer retirement contributions paid through the month of
3770 the employee plan change shall be transferred to the optional
3771 program investment plan, and, effective the first day of the
3772 next month, the employer shall pay the applicable contributions
3773 based on the employee membership class in the optional program
3774 investment plan.
3775 c. Any such employee who fails to elect to participate in
3776 the Public Employee Optional Retirement Program investment plan
3777 within the prescribed time period is deemed to have elected to
3778 retain membership in the defined benefit program of the Florida
3779 Retirement System pension plan, and the employee’s option to
3780 elect to participate in the optional program investment plan is
3781 forfeited.
3782 3. For purposes of this paragraph, “local employer” means
3783 any employer not included in paragraph (a) or paragraph (b).
3784 (d) Contributions available for self-direction by a
3785 participant member who has not selected one or more specific
3786 investment products shall be allocated as prescribed by the
3787 state board. The third-party administrator shall notify any such
3788 participant the member at least quarterly that the participant
3789 member should take an affirmative action to make an asset
3790 allocation among the optional program investment products.
3791 (e) On or after July 1, 2011, a member of the pension plan
3792 who obtains a refund of employee contributions retains his or
3793 her prior plan choice upon return to employment in a regularly
3794 established position with a participating employer.
3795 (f) A member of the investment plan who takes a
3796 distribution of any contributions from his or her investment
3797 plan account is considered a retiree. A retiree who is initially
3798 reemployed on or after July 1, 2010, is not eligible for renewed
3799 membership.
3800 (e)(g) After the period during which an eligible employee
3801 had the choice to elect the defined benefit program pension plan
3802 or the optional retirement program investment plan, or the month
3803 after following the receipt of the eligible employee’s plan
3804 election, if sooner, the employee shall have one opportunity, at
3805 the employee’s discretion, to choose to move from the defined
3806 benefit program pension plan to the optional retirement program
3807 investment plan or from the optional retirement program
3808 investment plan to the defined benefit program pension plan.
3809 Eligible employees may elect to move between Florida Retirement
3810 System programs plans only if they are earning service credit in
3811 an employer-employee relationship consistent with s.
3812 121.021(17)(b), excluding leaves of absence without pay.
3813 Effective July 1, 2005, such elections are effective on the
3814 first day of the month after following the receipt of the
3815 election by the third-party administrator and are not subject to
3816 the requirements regarding an employer-employee relationship or
3817 receipt of contributions for the eligible employee in the
3818 effective month, except when the election is received by the
3819 third-party administrator. This paragraph is contingent upon
3820 approval from by the Internal Revenue Service for including the
3821 choice described herein within the programs offered by the
3822 Florida Retirement System.
3823 1. If the employee chooses to move to the optional
3824 retirement program investment plan, the applicable provisions of
3825 this section shall subsection (3) govern the transfer.
3826 2. If the employee chooses to move to the defined benefit
3827 program pension plan, the employee must transfer from his or her
3828 optional retirement program investment plan account, and from
3829 other employee moneys as necessary, a sum representing the
3830 present value of that employee’s accumulated benefit obligation
3831 immediately after following the time of such movement,
3832 determined assuming that attained service equals the sum of
3833 service in the defined benefit program pension plan and service
3834 in the optional retirement program investment plan. Benefit
3835 commencement occurs on the first date the employee is eligible
3836 for unreduced benefits, using the discount rate and other
3837 relevant actuarial assumptions that were used to value the
3838 defined benefit pension plan liabilities in the most recent
3839 actuarial valuation. For any employee who, at the time of the
3840 second election, already maintains an accrued benefit amount in
3841 the defined benefit program pension plan, the then-present value
3842 of the accrued benefit shall be is deemed part of the required
3843 transfer amount. The division shall must ensure that the
3844 transfer sum is prepared using a formula and methodology
3845 certified by an enrolled actuary. A refund of any employee
3846 contributions or additional member payments made which exceed
3847 the employee contributions that would have accrued had the
3848 member remained in the pension plan and not transferred to the
3849 investment plan is not permitted.
3850 3. Notwithstanding subparagraph 2., an employee who chooses
3851 to move to the defined benefit program pension plan and who
3852 became eligible to participate in the optional retirement
3853 program investment plan by reason of employment in a regularly
3854 established position with a state employer after June 1, 2002; a
3855 district school board employer after September 1, 2002; or a
3856 local employer after December 1, 2002, must transfer from his or
3857 her optional retirement program investment plan account, and
3858 from other employee moneys as necessary, a sum representing the
3859 employee’s actuarial accrued liability. A refund of any employee
3860 contributions or additional participant payments made which
3861 exceed the employee contributions that would have accrued had
3862 the member remained in the pension plan and not transferred to
3863 the investment plan is not permitted.
3864 4. An employee’s ability to transfer from the defined
3865 benefit program pension plan to the optional retirement program
3866 investment plan pursuant to paragraphs (a)-(d), and the ability
3867 of a current employee to have an option to later transfer back
3868 into the defined benefit program pension plan under subparagraph
3869 2., shall be deemed a significant system amendment. Pursuant to
3870 s. 121.031(4), any resulting unfunded liability arising from
3871 actual original transfers from the defined benefit program
3872 pension plan to the optional program investment plan must be
3873 amortized within 30 plan years as a separate unfunded actuarial
3874 base independent of the reserve stabilization mechanism defined
3875 in s. 121.031(3)(f). For the first 25 years, a direct
3876 amortization payment may not be calculated for this base. During
3877 this 25-year period, the separate base shall be used to offset
3878 the impact of employees exercising their second program election
3879 under this paragraph. It is the intent of the Legislature that
3880 the actuarial funded status of the defined benefit program
3881 pension plan will not be affected by such second program
3882 elections in any significant manner, after due recognition of
3883 the separate unfunded actuarial base. After Following the
3884 initial 25-year period, any remaining balance of the original
3885 separate base shall be amortized over the remaining 5 years of
3886 the required 30-year amortization period.
3887 5. If the employee chooses to transfer from the optional
3888 retirement program investment plan to the defined benefit
3889 program pension plan and retains an excess account balance in
3890 the optional program investment plan after satisfying the buy-in
3891 requirements under this paragraph, the excess may not be
3892 distributed until the member retires from the defined benefit
3893 program pension plan. The excess account balance may be rolled
3894 over to the defined benefit program pension plan and used to
3895 purchase service credit or upgrade creditable service in that
3896 program the pension plan.
3897 (5) CONTRIBUTIONS.—
3898 (a) Each The employee and employer shall contribute on
3899 behalf of each participant in make the required contributions to
3900 the investment plan based on a percentage of the employee’s
3901 gross monthly compensation Public Employee Optional Retirement
3902 Program, as provided in part III of this chapter.
3903 (b) Employee contributions shall be paid as provided in s.
3904 121.71.
3905 (c) The state board, acting as plan fiduciary, shall must
3906 ensure that all plan assets are held in a trust, pursuant to s.
3907 401 of the Internal Revenue Code. The fiduciary shall must
3908 ensure that said such contributions are allocated as follows:
3909 1. The employer and employee contribution portion earmarked
3910 for participant member accounts shall be used to purchase
3911 interests in the appropriate investment vehicles for the
3912 accounts of each participant as specified by the participant
3913 member, or in accordance with paragraph (4)(d).
3914 2. The employer contribution portion earmarked for
3915 administrative and educational expenses shall be transferred to
3916 the board Florida Retirement System Investment Plan Trust Fund.
3917 3. The employer contribution portion earmarked for
3918 disability benefits shall be transferred to the department
3919 Florida Retirement System Trust Fund.
3920 (b)(d) Employers are The third-party administrator is
3921 responsible for monitoring and notifying participants regarding
3922 employers of the maximum contribution levels permitted allowed
3923 for members under the Internal Revenue Code. If a participant
3924 member contributes to any other tax-deferred plan, he or she the
3925 member is responsible for ensuring that total contributions made
3926 to the optional program investment plan and to any other such
3927 plan do not exceed federally permitted maximums.
3928 (c)(e) The Public Employee Optional Retirement Program
3929 investment plan may accept for deposit into participant member
3930 accounts contributions in the form of rollovers or direct
3931 trustee-to-trustee transfers by or on behalf of participants
3932 members, reasonably determined by the state board to be eligible
3933 for rollover or transfer to the optional retirement program
3934 investment plan pursuant to the Internal Revenue Code, if such
3935 contributions are made in accordance with rules as may be
3936 adopted by the board. Such contributions shall must be accounted
3937 for in accordance with any applicable Internal Revenue Code
3938 requirements and rules of the state board.
3939 (6) VESTING REQUIREMENTS.—
3940 (a) A member is fully and immediately vested in all
3941 employee contributions paid to the investment plan as provided
3942 in s. 121.71, plus interest and earnings thereon and less
3943 investment fees and administrative charges.
3944 (a)(b)1. With respect to employer contributions paid on
3945 behalf of the participant member to the optional retirement
3946 program investment plan, plus interest and earnings thereon and
3947 less investment fees and administrative charges, a participant
3948 member is vested after completing 1 work year with an employer,
3949 including any service while the participant member was a member
3950 of the defined benefit program pension plan or an optional
3951 retirement program authorized under s. 121.051(2)(c) or s.
3952 121.055(6).
3953 2. If the participant member terminates employment before
3954 satisfying the vesting requirements, the nonvested accumulation
3955 must be transferred from the participant’s member’s accounts to
3956 the state board for deposit and investment by the state board in
3957 the its suspense account created within the Public Employee
3958 Optional Retirement Program Florida Retirement System Investment
3959 Plan Trust Fund. If the terminated participant member is
3960 reemployed as an eligible employee within 5 years, the state
3961 board shall transfer to the participant’s member’s account any
3962 amount previously transferred from the participant’s member’s
3963 accounts to the suspense account, plus actual earnings on such
3964 amount while in the suspense account.
3965 (b)(c)1. With respect to amounts contributed by an employer
3966 and transferred from the defined benefit program pension plan to
3967 the investment program plan, plus interest and earnings, and
3968 less investment fees and administrative charges, a participant
3969 member shall be vested in the amount transferred upon meeting
3970 the service vesting requirements for the participant’s member’s
3971 membership class as set forth in s. 121.021(29) 121.021(45). The
3972 third-party administrator shall account for such amounts for
3973 each participant member. The division shall notify the
3974 participant member and the third-party administrator when the
3975 participant member has satisfied the vesting period for Florida
3976 Retirement System purposes.
3977 2. If the participant member terminates employment before
3978 satisfying the vesting requirements, the nonvested accumulation
3979 must be transferred from the participant’s member’s accounts to
3980 the state board for deposit and investment by the state board in
3981 the suspense account created within the Public Employee Optional
3982 Retirement Program Florida Retirement System Investment Plan
3983 Trust Fund. If the terminated participant member is reemployed
3984 as an eligible employee within 5 years, the state board shall
3985 transfer to the participant’s account member’s accounts any
3986 amount previously transferred from the participant’s member’s
3987 accounts to the suspense account, plus the actual earnings on
3988 such amount while in the suspense account.
3989 (c)(d) Any nonvested accumulations transferred from a
3990 participant’s member’s account to the state board’s suspense
3991 account shall be forfeited, including accompanying service
3992 credit, by the participant member if the participant member is
3993 not reemployed as an eligible employee within 5 years after
3994 termination.
3995 (e) If the member elects to receive any of his or her
3996 vested employee or employer contributions upon termination of
3997 employment as provided in s. 121.021(39)(a), except for a
3998 mandatory distribution of a de minimis account authorized by the
3999 state board or a minimum required distribution provided by s.
4000 401(a)(9) of the Internal Revenue Code, the member shall forfeit
4001 all nonvested employer contributions, and accompanying service
4002 credit, paid on behalf of the member to the investment plan.
4003 (7) BENEFITS.—Under the Public Employee Optional Retirement
4004 Program investment plan, benefits must:
4005 (a) Benefits shall be provided in accordance with s. 401(a)
4006 of the Internal Revenue Code.
4007 (b) Benefits shall accrue in individual accounts that are
4008 participant-directed member-directed, portable, and funded by
4009 employer and employee contributions and earnings thereon.
4010 (c) Benefits shall be payable in accordance with the
4011 provisions of s. 121.591.
4012 (8) INVESTMENT PLAN ADMINISTRATION OF PROGRAM.—
4013 (a) The optional retirement program investment plan shall
4014 be administered by the state board and affected employers. The
4015 state board may require oaths, by affidavit or otherwise, and
4016 acknowledgments from persons in connection with the
4017 administration of its statutory duties and responsibilities for
4018 this program the investment plan. An oath, by affidavit or
4019 otherwise, may not be required of an employee participant a
4020 member at the time of enrollment. Acknowledgment of an
4021 employee’s election to participate in the program shall be no
4022 greater than necessary to confirm the employee’s election. The
4023 state board shall adopt rules to carry out its statutory duties
4024 with respect to administering the optional retirement program
4025 investment plan, including establishing the roles and
4026 responsibilities of affected state, local government, and
4027 education-related employers, the state board, the department,
4028 and third-party contractors. The department shall adopt rules
4029 necessary to administer the optional program investment plan in
4030 coordination with the defined benefit program pension plan and
4031 the disability benefits available under the optional program
4032 investment plan.
4033 (b)(a)1. The state board shall select and contract with a
4034 one third-party administrator to provide administrative services
4035 if those services cannot be competitively and contractually
4036 provided by the Division of Retirement within the Department of
4037 Management Services. With the approval of the state board, the
4038 third-party administrator may subcontract with other
4039 organizations or individuals to provide components of the
4040 administrative services. As a cost of administration, the state
4041 board may compensate any such contractor for its services, in
4042 accordance with the terms of the contract, as is deemed
4043 necessary or proper by the board. The third-party administrator
4044 may not be an approved provider or be affiliated with an
4045 approved provider.
4046 2. These administrative services may include, but are not
4047 limited to, enrollment of eligible employees, collection of
4048 employer and employee contributions, disbursement of such
4049 contributions to approved providers in accordance with the
4050 allocation directions of participants members; services relating
4051 to consolidated billing; individual and collective recordkeeping
4052 and accounting; asset purchase, control, and safekeeping; and
4053 direct disbursement of funds to and from the third-party
4054 administrator, the division, the state board, employers,
4055 participants members, approved providers, and beneficiaries.
4056 This section does not prevent or prohibit a bundled provider
4057 from providing any administrative or customer service, including
4058 accounting and administration of individual participant member
4059 benefits and contributions; individual participant member
4060 recordkeeping; asset purchase, control, and safekeeping; direct
4061 execution of the participant’s member’s instructions as to asset
4062 and contribution allocation; calculation of daily net asset
4063 values; direct access to participant member account information;
4064 or periodic reporting to participants members, at least
4065 quarterly, on account balances and transactions, if these
4066 services are authorized by the state board as part of the
4067 contract.
4068 3.(b)1. The state board shall select and contract with one
4069 or more organizations to provide educational services. With
4070 approval of the state board, the organizations may subcontract
4071 with other organizations or individuals to provide components of
4072 the educational services. As a cost of administration, the state
4073 board may compensate any such contractor for its services in
4074 accordance with the terms of the contract, as is deemed
4075 necessary or proper by the board. The education organization may
4076 not be an approved provider or be affiliated with an approved
4077 provider.
4078 4.2. Educational services shall be designed by the state
4079 board and department to assist employers, eligible employees,
4080 participants members, and beneficiaries in order to maintain
4081 compliance with United States Department of Labor regulations
4082 under s. 404(c) of the Employee Retirement Income Security Act
4083 of 1974 and to assist employees in their choice of pension plan
4084 defined benefit or defined contribution investment plan
4085 retirement alternatives. Educational services include, but are
4086 not limited to, disseminating educational materials; providing
4087 retirement planning education; explaining the differences
4088 between the defined benefit retirement pension plan and the
4089 defined contribution retirement investment plan; and offering
4090 financial planning guidance on matters such as investment
4091 diversification, investment risks, investment costs, and asset
4092 allocation. An approved provider may also provide educational
4093 information, including retirement planning and investment
4094 allocation information concerning its products and services.
4095 (c)1. In evaluating and selecting a third-party
4096 administrator, the state board shall establish criteria under
4097 which it shall consider for evaluating the relative capabilities
4098 and qualifications of each proposed administrator. In developing
4099 such criteria, the state board shall consider:
4100 a. The administrator’s demonstrated experience in providing
4101 administrative services to public or private sector retirement
4102 systems.
4103 b. The administrator’s demonstrated experience in providing
4104 daily valued recordkeeping to defined contribution plans
4105 programs.
4106 c. The administrator’s ability and willingness to
4107 coordinate its activities with the Florida Retirement System
4108 employers, the state board, and the division, and to supply to
4109 such employers, the board, and the division the information and
4110 data they require, including, but not limited to, monthly
4111 management reports, quarterly participant member reports, and ad
4112 hoc reports requested by the department or state board.
4113 d. The cost-effectiveness and levels of the administrative
4114 services provided.
4115 e. The administrator’s ability to interact with the
4116 participants members, the employers, the state board, the
4117 division, and the providers; the means by which participants
4118 members may access account information, direct investment of
4119 contributions, make changes to their accounts, transfer moneys
4120 between available investment vehicles, and transfer moneys
4121 between investment products; and any fees that apply to such
4122 activities.
4123 f. Any other factor deemed necessary by the Trustees of the
4124 State Board of Administration.
4125 2. In evaluating and selecting an educational provider, the
4126 state board shall establish criteria under which it shall
4127 consider the relative capabilities and qualifications of each
4128 proposed educational provider. In developing such criteria, the
4129 state board shall consider:
4130 a. Demonstrated experience in providing educational
4131 services to public or private sector retirement systems.
4132 b. Ability and willingness to coordinate its activities
4133 with the Florida Retirement System employers, the state board,
4134 and the division, and to supply to such employers, the board,
4135 and the division the information and data they require,
4136 including, but not limited to, reports on educational contacts.
4137 c. The cost-effectiveness and levels of the educational
4138 services provided.
4139 d. Ability to provide educational services via different
4140 media, including, but not limited to, the Internet, personal
4141 contact, seminars, brochures, and newsletters.
4142 e. Any other factor deemed necessary by the Trustees of the
4143 State Board of Administration.
4144 3. The establishment of the criteria shall be solely within
4145 the discretion of the state board.
4146 (d) The state board shall develop the form and content of
4147 any contracts to be offered under the Public Employee Optional
4148 Retirement Program investment plan. In developing its the
4149 contracts, the board must shall consider:
4150 1. The nature and extent of the rights and benefits to be
4151 afforded in relation to the required contributions required
4152 under the program plan.
4153 2. The suitability of the rights and benefits to be
4154 afforded provided and the interests of employers in the
4155 recruitment and retention of eligible employees.
4156 (e)1. The state board may contract with any consultant for
4157 professional services, including legal, consulting, accounting,
4158 and actuarial services, deemed necessary to implement and
4159 administer the optional program by the Trustees of the State
4160 Board of Administration investment plan. The state board may
4161 enter into a contract with one or more vendors to provide low
4162 cost investment advice to participants members, supplemental to
4163 education provided by the third-party administrator. All fees
4164 under any such contract shall be paid by those participants
4165 members who choose to use the services of the vendor.
4166 2. The department may contract with consultants for
4167 professional services, including legal, consulting, accounting,
4168 and actuarial services, deemed necessary to implement and
4169 administer the optional program investment plan in coordination
4170 with the defined benefit program of the Florida Retirement
4171 System pension plan. The department, in coordination with the
4172 state board, may enter into a contract with the third-party
4173 administrator in order to coordinate services common to the
4174 various programs within the Florida Retirement System.
4175 (f) The third-party administrator shall may not receive
4176 direct or indirect compensation from an approved provider,
4177 except as specifically provided for in the contract with the
4178 state board.
4179 (g) The state board shall receive and resolve participant
4180 member complaints against the program, the third-party
4181 administrator, or any program vendor or provider; shall resolve
4182 any conflict between the third-party administrator and an
4183 approved provider if such conflict threatens the implementation
4184 or administration of the program or the quality of services to
4185 employees; and may resolve any other conflicts. The third-party
4186 administrator shall retain all participant member records for at
4187 least 5 years for use in resolving any participant member
4188 conflicts. The state board, the third-party administrator, or a
4189 provider is not required to produce documentation or an audio
4190 recording to justify action taken with regard to a participant
4191 member if the action occurred 5 or more years before the
4192 complaint is submitted to the state board. It is presumed that
4193 all action taken 5 or more years before the complaint is
4194 submitted was taken at the request of the participant member and
4195 with the participant’s member’s full knowledge and consent. To
4196 overcome this presumption, the participant member must present
4197 documentary evidence or an audio recording demonstrating
4198 otherwise.
4199 (9) INVESTMENT OPTIONS OR PRODUCTS; PERFORMANCE REVIEW.—
4200 (a) The state board shall develop policy and procedures for
4201 selecting, evaluating, and monitoring the performance of
4202 approved providers and investment products to which employees
4203 may direct retirement contributions under the program investment
4204 plan. In accordance with such policy and procedures, the state
4205 board shall designate and contract for a number of investment
4206 products as determined by the board. The board shall also select
4207 one or more bundled providers, each of whom which may offer
4208 multiple investment options and related services when, if such
4209 an approach is determined by the board to afford provide value
4210 to the participants members otherwise not available through
4211 individual investment products. Each approved bundled provider
4212 may offer investment options that provide participants members
4213 with the opportunity to invest in each of the following asset
4214 classes, to be composed of individual options that represent
4215 either a single asset class or a combination thereof: money
4216 markets, United States fixed income, United States equities, and
4217 foreign stock. The state board shall review and manage all
4218 educational materials, contract terms, fee schedules, and other
4219 aspects of the approved provider relationships to ensure that no
4220 provider is unduly favored or penalized by virtue of its status
4221 within the investment plan.
4222 (b) The state board shall consider investment options or
4223 products it considers appropriate to give participants members
4224 the opportunity to accumulate retirement benefits, subject to
4225 the following:
4226 1. The Public Employee Optional Retirement Program
4227 investment plan must offer a diversified mix of low-cost
4228 investment products that span the risk-return spectrum and may
4229 include a guaranteed account as well as investment products,
4230 such as individually allocated guaranteed and variable
4231 annuities, which meet the requirements of this subsection and
4232 combine the ability to accumulate investment returns with the
4233 option of receiving lifetime income consistent with the long
4234 term retirement security of a pension plan and similar to the
4235 lifetime-income benefit provided by the Florida Retirement
4236 System.
4237 2. Investment options or products offered by the group of
4238 approved providers may include mutual funds, group annuity
4239 contracts, individual retirement annuities, interests in trusts,
4240 collective trusts, separate accounts, and other such financial
4241 instruments, and may include products that give participants
4242 members the option of committing their contributions for an
4243 extended time period in an effort to obtain returns higher than
4244 those that could be obtained from investment products offering
4245 full liquidity.
4246 3. The state board shall may not contract with any a
4247 provider that imposes a front-end, back-end, contingent, or
4248 deferred sales charge, or any other fee that limits or restricts
4249 the ability of participants members to select any investment
4250 product available in the optional program investment plan. This
4251 prohibition does not apply to fees or charges that are imposed
4252 on withdrawals from products that give participants members the
4253 option of committing their contributions for an extended time
4254 period in an effort to obtain returns higher than those that
4255 could be obtained from investment products offering full
4256 liquidity, provided that if the product in question, net of all
4257 fees and charges, produces material benefits relative to other
4258 comparable products in the program investment plan offering full
4259 liquidity.
4260 4. Fees or charges for insurance features, such as
4261 mortality and expense-risk charges, must be reasonable relative
4262 to the benefits provided.
4263 (c) In evaluating and selecting approved providers and
4264 products, the state board shall establish criteria under which
4265 it shall consider for evaluating the relative capabilities and
4266 qualifications of each proposed provider company and product. In
4267 developing such criteria, the board shall consider the following
4268 to the extent such factors may be applied in connection with
4269 investment products, services, or providers:
4270 1. Experience in the United States providing retirement
4271 products and related financial services under defined
4272 contribution retirement plans programs.
4273 2. Financial strength and stability which shall be as
4274 evidenced by the highest ratings assigned by nationally
4275 recognized rating services when comparing proposed providers
4276 that are so rated.
4277 3. Intrastate and interstate portability of the product
4278 offered, including early withdrawal options.
4279 4. Compliance with the Internal Revenue Code.
4280 5. The cost-effectiveness of the product provided and the
4281 levels of service supporting the product relative to its
4282 benefits and its characteristics, including, without limitation,
4283 the level of risk borne by the provider.
4284 6. The provider company’s ability and willingness to
4285 coordinate its activities with Florida Retirement System
4286 employers, the department, and the state board, and to supply to
4287 such the employers, the department, and the board with the
4288 information and data they require.
4289 7. The methods available to participants members to
4290 interact with the provider company; the means by which
4291 participants members may access account information, direct
4292 investment of contributions, make changes to their accounts,
4293 transfer moneys between available investment vehicles, and
4294 transfer moneys between provider companies; and any fees that
4295 apply to such activities.
4296 8. The provider company’s policies with respect to the
4297 transfer of individual account balances, contributions, and
4298 earnings thereon, both internally among investment products
4299 offered by the provider company and externally between approved
4300 providers, as well as any fees, charges, reductions, or
4301 penalties that may be applied.
4302 9. An evaluation of specific investment products, taking
4303 into account each product’s experience in meeting its investment
4304 return objectives net of all related fees, expenses, and
4305 charges, including, but not limited to, investment management
4306 fees, loads, distribution and marketing fees, custody fees,
4307 recordkeeping fees, education fees, annuity expenses, and
4308 consulting fees.
4309 10. Organizational factors, including, but not limited to,
4310 financial solvency, organizational depth, and experience in
4311 providing institutional and retail investment services.
4312 (d) By March 1, 2010, the state board shall identify and
4313 offer at least one terror-free investment product that allocates
4314 its funds among securities not subject to divestiture as
4315 provided in s. 215.473 if the investment product is deemed by
4316 the state board to be consistent with prudent investor
4317 standards. No A person may not bring a civil, criminal, or
4318 administrative action against an approved provider; the state
4319 board; or any employee, officer, director, or trustee of such
4320 provider based upon the divestiture of any security or the
4321 offering of a terror-free investment product as specified in
4322 this paragraph.
4323 (e) As a condition of offering any an investment option or
4324 product in the optional retirement program investment plan, the
4325 approved provider must agree to make the investment product or
4326 service available under the most beneficial terms offered to any
4327 other customer, subject to approval by the Trustees of the State
4328 Board of Administration.
4329 (f) The state board shall regularly review the performance
4330 of each approved provider and product and related organizational
4331 factors to ensure continued compliance with established
4332 selection criteria and with board policy and procedures.
4333 Providers and products may be terminated subject to contract
4334 provisions. The state board shall adopt procedures to transfer
4335 account balances from terminated products or providers to other
4336 products or providers in the optional program investment plan.
4337 (g)1. An approved provider shall comply with all applicable
4338 federal and state securities and insurance laws and regulations
4339 applicable to the provider, as well as with the applicable rules
4340 and guidelines of the National Association of Securities Dealers
4341 which govern the ethical marketing of investment products. In
4342 furtherance of this mandate, an approved provider must agree in
4343 its contract with the state board to establish and maintain a
4344 compliance education and monitoring system to supervise the
4345 activities of all personnel who directly communicate with
4346 individual participants members and recommend investment
4347 products, which system is consistent with rules of the National
4348 Association of Securities Dealers.
4349 2. Approved provider personnel who directly communicate
4350 with individual participants members and who recommend
4351 investment products shall make an independent and unbiased
4352 determination as to whether an investment product is suitable
4353 for a particular participant member.
4354 3. The state board shall develop procedures to receive and
4355 resolve participant member complaints against a provider or
4356 approved provider personnel, and, when if appropriate, refer
4357 such complaints to the appropriate agency.
4358 4. Approved providers may not sell or in any way distribute
4359 any customer list or participant member identification
4360 information generated through their offering of products or
4361 services through the optional retirement program investment
4362 plan.
4363 (10) EDUCATION COMPONENT.—
4364 (a) The state board, in coordination with the department,
4365 shall provide for an education component for system members in a
4366 manner consistent with the provisions of this section. The
4367 education component must be available to eligible employees at
4368 least 90 days prior to the beginning date of the election period
4369 for the employees of the respective types of employers.
4370 (b) The education component must provide system members
4371 with impartial and balanced information about plan choices. The
4372 education component must involve multimedia formats. Program
4373 comparisons must, to the greatest extent possible, be based upon
4374 the retirement income that different retirement programs may
4375 provide to the participant member. The state board shall monitor
4376 the performance of the contract to ensure that the program is
4377 conducted in accordance with the contract, applicable law, and
4378 the rules of the state board.
4379 (c) The state board, in coordination with the department,
4380 shall provide for an initial and ongoing transfer education
4381 component to provide system members with information necessary
4382 to make informed plan choice decisions. The transfer education
4383 component must include, but is not limited to, information on:
4384 1. The amount of money available to a member to transfer to
4385 the defined contribution program.
4386 2. The features of and differences between the defined
4387 benefit program pension plan and the defined contribution
4388 program, both generally and specifically, as those differences
4389 may affect the member.
4390 3. The expected benefit available if the member were to
4391 retire under each of the retirement programs, based on
4392 appropriate alternative sets of assumptions.
4393 4. The rate of return from investments in the defined
4394 contribution program and the period of time over which such rate
4395 of return must be achieved to equal or exceed the expected
4396 monthly benefit payable to the member under the defined benefit
4397 program pension plan.
4398 5. The historical rates of return for the investment
4399 alternatives available in the defined contribution programs.
4400 6. The benefits and historical rates of return on
4401 investments available in a typical deferred compensation plan or
4402 a typical plan under s. 403(b) of the Internal Revenue Code for
4403 which the employee may be eligible.
4404 7. The program choices available to employees of the State
4405 University System and the comparative benefits of each available
4406 program, if applicable.
4407 8. Payout options available in each of the retirement
4408 programs.
4409 (d) An ongoing education and communication component must
4410 provide system members eligible employees with information
4411 necessary to make informed decisions about choices within their
4412 program of membership retirement system and in preparation for
4413 retirement. The component must include, but is not limited to,
4414 information concerning:
4415 1. Rights and conditions of membership.
4416 2. Benefit features within the program, options, and
4417 effects of certain decisions.
4418 3. Coordination of contributions and benefits with a
4419 deferred compensation plan under s. 457 or a plan under s.
4420 403(b) of the Internal Revenue Code.
4421 4. Significant program changes.
4422 5. Contribution rates and program funding status.
4423 6. Planning for retirement.
4424 (e) Descriptive materials must be prepared under the
4425 assumption that the employee is an unsophisticated investor, and
4426 all materials used in the education component must be approved
4427 by the state board prior to dissemination.
4428 (f) The state board and the department shall also establish
4429 a communication component to provide program information to
4430 participating employers and the employers’ personnel and payroll
4431 officers and to explain their respective responsibilities in
4432 conjunction with the retirement programs.
4433 (g) Funding for education of new employees may reflect
4434 administrative costs to the optional program investment plan and
4435 the defined benefit program pension plan.
4436 (h) Pursuant to paragraph subsection (8)(a), all Florida
4437 Retirement System employers have an obligation to regularly
4438 communicate the existence of the two Florida Retirement System
4439 plans and the plan choice in the natural course of administering
4440 their personnel functions, using the educational materials
4441 supplied by the state board and the Department of Management
4442 Services.
4443 (11) PARTICIPANT MEMBER INFORMATION REQUIREMENTS.—The state
4444 board shall ensure that each participant member is provided a
4445 quarterly statement that accounts for the contributions made on
4446 behalf of such participant the member; the interest and
4447 investment earnings thereon; and any fees, penalties, or other
4448 deductions that apply thereto. At a minimum, such statements
4449 must:
4450 (a) Indicate the participant’s member’s investment options.
4451 (b) State the market value of the account at the close of
4452 the current quarter and previous quarter.
4453 (c) Show account gains and losses for the period and
4454 changes in account accumulation unit values for the period
4455 quarter.
4456 (d) Itemize account contributions for the quarter.
4457 (e) Indicate any account changes due to adjustment of
4458 contribution levels, reallocation of contributions, balance
4459 transfers, or withdrawals.
4460 (f) Set forth any fees, charges, penalties, and deductions
4461 that apply to the account.
4462 (g) Indicate the amount of the account in which the
4463 participant member is fully vested and the amount of the account
4464 in which the participant member is not vested.
4465 (h) Indicate each investment product’s performance relative
4466 to an appropriate market benchmark.
4467
4468 The third-party administrator shall provide quarterly and annual
4469 summary reports to the state board and any other reports
4470 requested by the department or the state board. In any
4471 solicitation or offer of coverage under an optional retirement
4472 program the investment plan, a provider company shall be
4473 governed by the contract readability provisions of s. 627.4145,
4474 notwithstanding s. 627.4145(6)(c). In addition, all descriptive
4475 materials must be prepared under the assumption that the
4476 participant member is an unsophisticated investor. Provider
4477 companies must maintain an internal system of quality assurance,
4478 have proven functional systems that are date-calculation
4479 compliant, and be subject to a due-diligence inquiry that proves
4480 their capacity and fitness to undertake service
4481 responsibilities.
4482 (12) ADVISORY COUNCIL TO PROVIDE ADVICE AND ASSISTANCE.—The
4483 Investment Advisory Council, created pursuant to s. 215.444,
4484 shall assist the state board in implementing and administering
4485 the Public Employee Optional Retirement Program investment plan.
4486 The Investment Advisory Council, created pursuant to s. 215.444,
4487 shall review the state board’s initial recommendations regarding
4488 the criteria to be used in selecting and evaluating approved
4489 providers and investment products. The council may provide
4490 comments on the recommendations to the state board within 45
4491 days after receiving the initial recommendations. The state
4492 board shall make the final determination as to whether any
4493 investment provider or product, any contractor, or any and all
4494 contract provisions shall be are approved for the program
4495 investment plan.
4496 (13) FEDERAL REQUIREMENTS.—
4497 (a) Provisions of this section shall be construed, and the
4498 Public Employee Optional Retirement Program investment plan
4499 shall be administered, so as to comply with the Internal Revenue
4500 Code, 26 U.S.C., and specifically with plan qualification
4501 requirements imposed on governmental plans under s. 401(a) of
4502 the Internal Revenue Code. The state board shall have the power
4503 and authority to may adopt rules reasonably necessary to
4504 establish or maintain the qualified status of the Optional
4505 Retirement Program investment plan under the Internal Revenue
4506 Code and to implement and administer the Optional Retirement
4507 Program investment plan in compliance with the Internal Revenue
4508 Code and as designated under this part; provided however, that
4509 the board shall not have the authority to adopt any rule which
4510 makes a substantive change to the Optional Retirement Program
4511 investment plan as designed by this part.
4512 (b) Any section or provision of this chapter which is
4513 susceptible to more than one construction must shall be
4514 interpreted in favor of the construction most likely to satisfy
4515 requirements imposed by s. 401(a) of the Internal Revenue Code.
4516 (c) Contributions payable under this section for any
4517 limitation year may not exceed the maximum amount allowable for
4518 qualified defined contribution pension plans under applicable
4519 provisions of the Internal Revenue Code. If an employee who has
4520 elected to participate is enrolled in the Public Employee
4521 Optional Retirement Program investment plan participates in any
4522 other plan that is maintained by the participating employer,
4523 benefits that accrue under the Public Employee Optional
4524 Retirement Program investment plan shall be considered primary
4525 for any aggregate limitation applicable under s. 415 of the
4526 Internal Revenue Code.
4527 (14) INVESTMENT POLICY STATEMENT.—
4528 (a) Investment products and approved providers selected for
4529 the Public Employee Optional Retirement Program shall investment
4530 plan must conform with the Public Employee Optional Retirement
4531 Program Florida Retirement System Investment Plan Investment
4532 Policy Statement, herein referred to as the “statement,” as
4533 developed and approved by the trustees of the State Board of
4534 Administration. The statement must include, among other items,
4535 the investment objectives of the Public Employee Optional
4536 Retirement Program investment plan, manager selection and
4537 monitoring guidelines, and performance measurement criteria. As
4538 required from time to time, the executive director of the state
4539 board may present recommended changes in the statement to the
4540 board for approval.
4541 (b) Prior to presenting the statement, or any recommended
4542 changes thereto, to the state board, the executive director of
4543 the board shall present such statement or changes to the
4544 Investment Advisory Council for review. The council shall
4545 present the results of its review to the board prior to the
4546 board’s final approval of the statement or changes in the
4547 statement.
4548 (15) STATEMENT OF FIDUCIARY STANDARDS AND
4549 RESPONSIBILITIES.—
4550 (a) Investment of optional defined contribution retirement
4551 plan assets shall be made for the sole interest and exclusive
4552 purpose of providing benefits to plan participants members and
4553 beneficiaries and defraying reasonable expenses of administering
4554 the plan. The program’s assets are to shall be invested, on
4555 behalf of the program participants, members with the care,
4556 skill, and diligence that a prudent person acting in a like
4557 manner would undertake. The performance of the investment duties
4558 set forth in this paragraph shall comply with the fiduciary
4559 standards set forth in the Employee Retirement Income Security
4560 Act of 1974 at 29 U.S.C. s. 1104(a)(1)(A)-(C). In case of
4561 conflict with other provisions of law authorizing investments,
4562 the investment and fiduciary standards set forth in this
4563 subsection shall prevail.
4564 (b) If a participant member or beneficiary of the Public
4565 Employee Optional Retirement Program investment plan exercises
4566 control over the assets in his or her account, as determined by
4567 reference to regulations of the United States Department of
4568 Labor under s. 404(c) of the Employee Retirement Income Security
4569 Act of 1974 and all applicable laws governing the operation of
4570 the program, no a program fiduciary shall be is not liable for
4571 any loss to a participant’s member’s or beneficiary’s account
4572 which results from such participant’s the member’s or
4573 beneficiary’s exercise of control.
4574 (c) Subparagraph (8)(b)4.2. and paragraph (15)(b)
4575 incorporate the federal law concept of participant control,
4576 established by regulations of the United States Department of
4577 Labor under s. 404(c) of the Employee Retirement Income Security
4578 Act of 1974 (ERISA). The purpose of this paragraph is to assist
4579 employers and the State Board of Administration in maintaining
4580 compliance with s. 404(c), while avoiding unnecessary costs and
4581 eroding participant member benefits under the Public Employee
4582 Optional Retirement Program investment plan. Pursuant to 29
4583 C.F.R. s. 2550.404c-1(b)(2)(i)(B)(1)(viii), the State Board of
4584 Administration or its designated agents shall deliver to members
4585 participants of the Public Employee Optional Retirement Program
4586 investment plan a copy of the prospectus most recently provided
4587 to the plan, and, pursuant to 29 C.F.R. s. 2550.404c
4588 1(b)(2)(i)(B)(2)(ii), shall provide such participants members an
4589 opportunity to obtain this information, except that:
4590 1. The requirement to deliver a prospectus shall be deemed
4591 to be satisfied by delivery of a fund profile or summary profile
4592 that contains the information that would be included in a
4593 summary prospectus as described by Rule 498 under the Securities
4594 Act of 1933, 17 C.F.R. s. 230.498. When If the transaction fees,
4595 expense information or other information provided by a mutual
4596 fund in the prospectus does not reflect terms negotiated by the
4597 State Board of Administration or its designated agents, the
4598 aforementioned requirement is deemed to be satisfied by delivery
4599 of a separate document described by Rule 498 substituting
4600 accurate information; and
4601 2. Delivery shall be deemed to have been effected if
4602 delivery is through electronic means and the following standards
4603 are satisfied:
4604 a. Electronically-delivered documents are prepared and
4605 provided consistent with style, format, and content requirements
4606 applicable to printed documents;
4607 b. Each participant member is provided timely and adequate
4608 notice of the documents that are to be delivered, and their
4609 significance thereof, and of the participant’s member’s right to
4610 obtain a paper copy of such documents free of charge;
4611 c.(I) Participants Members have adequate access to the
4612 electronic documents, at locations such as their worksites or
4613 public facilities, and have the ability to convert the documents
4614 to paper free of charge by the State Board of Administration,
4615 and the board or its designated agents take appropriate and
4616 reasonable measures to ensure that the system for furnishing
4617 electronic documents results in actual receipt, or.
4618 (II) Participants Members have provided consent to receive
4619 information in electronic format, which consent may be revoked;
4620 and
4621 d. The State Board of Administration, or its designated
4622 agent, actually provides paper copies of the documents free of
4623 charge, upon request.
4624 (16) DISABILITY BENEFITS.—For any participant member of the
4625 optional retirement program investment plan who becomes totally
4626 and permanently disabled, benefits shall must be paid in
4627 accordance with the provisions of s. 121.591.
4628 (17) SOCIAL SECURITY COVERAGE.—Social security coverage
4629 shall be provided for all officers and employees who become
4630 participants members of the optional program investment plan.
4631 Any modification of the present agreement with the Social
4632 Security Administration, or referendum required under the Social
4633 Security Act, for the purpose of providing social security
4634 coverage for any member shall be requested by the state agency
4635 in compliance with the applicable provisions of the Social
4636 Security Act governing such coverage. However, retroactive
4637 social security coverage for service prior to December 1, 1970,
4638 with the employer shall may not be provided for any member who
4639 was not covered under the agreement as of November 30, 1970.
4640 (18) RETIREE HEALTH INSURANCE SUBSIDY.—All officers and
4641 employees who are participants members of the investment plan
4642 are optional program shall be eligible to receive the retiree
4643 health insurance subsidy, subject to the provisions of s.
4644 112.363.
4645 (19) PARTICIPANT MEMBER RECORDS.—Personal identifying
4646 information of a participant member in the Public Employee
4647 Optional Retirement Program investment plan contained in Florida
4648 Retirement System records held by the State Board of
4649 Administration or the Department of Management Services is
4650 exempt from s. 119.07(1) and s. 24(a), Art. I of the State
4651 Constitution.
4652 (20) DESIGNATION OF BENEFICIARIES.—
4653 (a) Each participant member may, by electronic means or on
4654 a form provided for that purpose, signed and filed with the
4655 third-party administrator, designate a choice of one or more
4656 persons, named sequentially or jointly, as his or her
4657 beneficiary who shall receive for receiving the benefits, if
4658 any, which may be payable pursuant to this chapter in the event
4659 of the participant’s member’s death. If no beneficiary is named
4660 in this manner, or if no beneficiary designated by the
4661 participant member survives the participant member, the
4662 beneficiary shall be the spouse of the deceased, if living. If
4663 the participant’s member’s spouse is not alive at his or her the
4664 time of the member’s death, the beneficiary shall be the living
4665 children of the participant member. If no children survive, the
4666 beneficiary shall be the participant’s member’s father or
4667 mother, if living; otherwise, the beneficiary shall be the
4668 participant’s member’s estate. The beneficiary most recently
4669 designated by a participant on a form or letter filed with the
4670 third-party administrator member shall be the beneficiary
4671 entitled to any benefits payable at the time of the
4672 participant’s member’s death. Notwithstanding any other
4673 provision in this subsection to the contrary However, for a
4674 participant member who dies prior to his or her effective date
4675 of retirement, the spouse at the time of death shall be the
4676 participant’s member’s beneficiary unless such participant the
4677 member designates a different beneficiary as provided in this
4678 subsection subsequent to the participant’s member’s most recent
4679 marriage.
4680 (b) If a participant member designates a primary
4681 beneficiary other than the participant’s member’s spouse, the
4682 participant’s member’s spouse must sign the beneficiary
4683 designation form to acknowledge the designation. This
4684 requirement does not apply to the designation of one or more
4685 contingent beneficiaries to receive benefits remaining upon the
4686 death of the primary beneficiary or beneficiaries.
4687 (c) Notwithstanding the participant’s member’s designation
4688 of benefits to be paid through a trust to a beneficiary that is
4689 a natural person, and notwithstanding the provisions of the
4690 trust, benefits shall must be paid directly to the beneficiary
4691 if the person is no longer a minor or an incapacitated person as
4692 defined in s. 744.102.
4693 (21) PARTICIPATION BY TERMINATED DEFERRED RETIREMENT OPTION
4694 PROGRAM PARTICIPANTS MEMBERS.—Notwithstanding any other
4695 provision of law to the contrary, participants members in the
4696 Deferred Retirement Option Program offered under part I may,
4697 after conclusion of their participation in the program, elect to
4698 roll over or authorize a direct trustee-to-trustee transfer to
4699 an account under the Public Employee Optional Retirement Program
4700 investment plan of their Deferred Retirement Option Program
4701 proceeds distributed as provided under s. 121.091(13)(c)5. The
4702 transaction must constitute an “eligible rollover distribution”
4703 within the meaning of s. 402(c)(4) of the Internal Revenue Code.
4704 (a) The Public Employee Optional Retirement Program
4705 investment plan may accept such amounts for deposit into
4706 participant member accounts as provided in paragraph (5)(c)(e).
4707 (b) The affected participant member shall direct the
4708 investment of his or her investment account; however, unless he
4709 or she becomes a renewed member of the Florida Retirement System
4710 under s. 121.122 and elects to participate in the Public
4711 Employee Optional Retirement Program investment plan, employer
4712 no contributions may not be made to the participant’s member’s
4713 account as provided under paragraph (5)(a).
4714 (c) The state board or the department is not responsible
4715 for locating those persons who may be eligible to participate in
4716 the Public Employee Optional Retirement Program investment plan
4717 under this subsection.
4718 (22) CREDIT FOR MILITARY SERVICE.—Creditable service of any
4719 member of the Public Employee Optional Retirement Program shall
4720 include investment plan includes military service in the Armed
4721 Forces of the United States as provided in the conditions
4722 outlined in s. 121.111(1).
4723 Section 27. Section 121.4502, Florida Statutes, is amended
4724 to read:
4725 121.4502 Public Employee Optional Retirement Program
4726 Florida Retirement System Investment Plan Trust Fund.—
4727 (1) The Public Employee Optional Retirement Program Florida
4728 Retirement System Investment Plan Trust Fund is created to hold
4729 the assets of the Public Employee Optional Retirement Program
4730 Florida Retirement System Investment Plan in trust for the
4731 exclusive benefit of such program’s participants the plan’s
4732 members and beneficiaries, and for the payment of reasonable
4733 administrative expenses of the program plan, in accordance with
4734 s. 401 of the Internal Revenue Code, and shall be administered
4735 by the State Board of Administration as trustee. Funds shall be
4736 credited to the trust fund as provided in this part, to be used
4737 for the purposes of this part. The trust fund is exempt from the
4738 service charges imposed by s. 215.20.
4739 (2) The Public Employee Optional Retirement Program Florida
4740 Retirement System Investment Plan Trust Fund is a retirement
4741 trust fund of the Florida Retirement System that accounts for
4742 retirement plan assets held by the state in a trustee capacity
4743 as a fiduciary for individual participants in the Public
4744 Employee Optional Retirement Program Florida Retirement System
4745 Investment Plan and, pursuant to s. 19(f), Art. III of the State
4746 Constitution, is not subject to termination.
4747 (3) A forfeiture account shall be created within the Public
4748 Employee Optional Retirement Program Florida Retirement System
4749 Investment Plan Trust Fund to hold the assets derived from the
4750 forfeiture of benefits by participants. Pursuant to a private
4751 letter ruling from the Internal Revenue Service, the forfeiture
4752 account may be used only for paying expenses of the Public
4753 Employee Optional Retirement Program Florida Retirement System
4754 Investment Plan and reducing future employer contributions to
4755 the program. Consistent with Rulings 80-155 and 74-340 of the
4756 Internal Revenue Service, unallocated reserves within the
4757 forfeiture account must be used as quickly and as prudently as
4758 possible considering the state board’s fiduciary duty. Expected
4759 withdrawals from the account must endeavor to reduce the account
4760 to zero each fiscal year.
4761 Section 28. Subsections (1) and (3) of section 121.4503,
4762 Florida Statutes, are amended to read:
4763 121.4503 Florida Retirement System Contributions Clearing
4764 Trust Fund.—
4765 (1) The Florida Retirement System Contributions Clearing
4766 Trust Fund is created as a clearing fund for disbursing employer
4767 and employee contributions to the component plans of the Florida
4768 Retirement System and shall be administered by the Department of
4769 Management Services. Funds shall be credited to the trust fund
4770 as provided in this chapter and shall be held in trust for the
4771 contributing employees and employers until such time as the
4772 assets are transferred by the department to the Florida
4773 Retirement System Trust Fund, the Public Employee Optional
4774 Retirement Program Florida Retirement System Investment Plan
4775 Trust Fund, or other trust funds as authorized by law, to be
4776 used for the purposes of this chapter. The trust fund is exempt
4777 from the service charges imposed by s. 215.20.
4778 (3) The Department of Management Services may adopt rules
4779 governing the receipt and disbursement of amounts received by
4780 the Florida Retirement System Contributions Clearing Trust Fund
4781 from employers and employees contributing to the component plans
4782 of the Florida Retirement System.
4783 Section 29. Section 121.571, Florida Statutes, is amended
4784 to read:
4785 121.571 Contributions.—Contributions to the Public Employee
4786 Optional Retirement Program Florida Retirement System Investment
4787 Plan shall be made as follows:
4788 (1) NONCONTRIBUTORY CONTRIBUTORY PLAN.—Each employer and
4789 employee shall accomplish the submit contributions as required
4790 by s. 121.71 by a procedure in which no employee’s gross salary
4791 shall be reduced.
4792 (2) CONTRIBUTION RATES GENERALLY.—Contributions to fund the
4793 retirement and disability benefits provided under this part
4794 shall must be based on the uniform contribution rates
4795 established by s. 121.71 and on the membership class or subclass
4796 of the participant member. Such contributions shall must be
4797 allocated as provided in ss. 121.72 and 121.73.
4798 (3) CONTRIBUTIONS FOR SOCIAL SECURITY COVERAGE AND FOR
4799 RETIREE HEALTH INSURANCE SUBSIDY.—Contributions required under
4800 this section shall be s. 121.71 are in addition to employer and
4801 member contributions required for social security and the
4802 Retiree Health Insurance Subsidy Trust Fund as provided in
4803 required under ss. 112.363, 121.052, 121.055, and 121.071, as
4804 appropriate.
4805 Section 30. Section 121.591, Florida Statutes, is amended
4806 to read:
4807 121.591 Payment of Benefits payable under the Public
4808 Employee Optional Retirement Program of the Florida Retirement
4809 System.—Benefits may not be paid under this section the Florida
4810 Retirement System Investment Plan unless the member has
4811 terminated employment as provided in s. 121.021(39)(a) or is
4812 deceased and a proper application has been filed in the manner
4813 as prescribed by the state board or the department. Before
4814 termination of employment, benefits, including employee
4815 contributions, are not payable under the investment plan for
4816 employee hardships, unforeseeable emergencies, loans, medical
4817 expenses, educational expenses, purchase of a principal
4818 residence, payments necessary to prevent eviction or foreclosure
4819 on an employee’s principal residence, or any other reason prior
4820 to termination from all employment relationships with
4821 participating employers. The state board or department, as
4822 appropriate, may cancel an application for retirement benefits
4823 when if the member or beneficiary fails to timely provide the
4824 information and documents required by this chapter and the rules
4825 of the state board and department. In accordance with their
4826 respective responsibilities as provided herein, the State Board
4827 of Administration and the Department of Management Services
4828 shall adopt rules establishing procedures for application for
4829 retirement benefits and for the cancellation of such application
4830 when if the required information or documents are not received.
4831 The State Board of Administration and the Department of
4832 Management Services, as appropriate, are authorized to cash out
4833 a de minimis account of a participant member who has been
4834 terminated from Florida Retirement System covered employment for
4835 a minimum of 6 calendar months. A de minimis account is an
4836 account containing employer and employee contributions and
4837 accumulated earnings of not more than $5,000 made under the
4838 provisions of this chapter. Such cash-out must either be a
4839 complete lump-sum liquidation of the account balance, subject to
4840 the provisions of the Internal Revenue Code, or a lump-sum
4841 direct rollover distribution paid directly to the custodian of
4842 an eligible retirement plan, as defined by the Internal Revenue
4843 Code, on behalf of the participant member. Any nonvested
4844 accumulations and associated service credit, including amounts
4845 transferred to the suspense account of the Florida Retirement
4846 System Investment Plan Trust Fund authorized under s.
4847 121.4501(6), shall be forfeited upon payment of any vested
4848 benefit to a member or beneficiary, except for de minimis
4849 distributions or minimum required distributions as provided
4850 under this section. If any financial instrument issued for the
4851 payment of retirement benefits under this section is not
4852 presented for payment within 180 days after the last day of the
4853 month in which it was originally issued, the third-party
4854 administrator or other duly authorized agent of the State Board
4855 of Administration shall cancel the instrument and credit the
4856 amount of the instrument to the suspense account of the Public
4857 Employee Optional Retirement Program Florida Retirement System
4858 Investment Plan Trust Fund authorized under s. 121.4501(6). Any
4859 such amounts transferred to the suspense account are payable
4860 upon a proper application, not to include earnings thereon, as
4861 provided in this section, within 10 years after the last day of
4862 the month in which the instrument was originally issued, after
4863 which time such amounts and any earnings thereon attributable to
4864 employer contributions shall be forfeited. Any such forfeited
4865 amounts are assets of the Public Employee Optional Retirement
4866 Program Trust Fund and are not subject to the provisions of
4867 chapter 717.
4868 (1) NORMAL BENEFITS.—Under the Public Employee Optional
4869 Retirement Program investment plan:
4870 (a) Benefits in the form of vested accumulations as
4871 described in s. 121.4501(6) are payable under this subsection in
4872 accordance with the following terms and conditions:
4873 1. To the extent vested, benefits are payable only to a
4874 participant member, an alternate payee of a qualified domestic
4875 relations order, or a beneficiary.
4876 2. Benefits shall be paid by the third-party administrator
4877 or designated approved providers in accordance with the law, the
4878 contracts, and any applicable board rule or policy.
4879 3. To receive benefits, the participant member must be
4880 terminated from all employment with all Florida Retirement
4881 System employers, as provided in s. 121.021(39).
4882 4. Benefit payments may not be made until the participant
4883 member has been terminated for 3 calendar months, except that
4884 the state board may authorize by rule for the distribution of up
4885 to 10 percent of the participant’s member’s account after being
4886 terminated for 1 calendar month if the participant member has
4887 reached the normal retirement date as defined in s. 121.021 of
4888 the defined benefit plan.
4889 5. If a member or former member of the Florida Retirement
4890 System receives an invalid distribution from the Public Employee
4891 Optional Retirement Program Trust Fund, such person must either
4892 repay the full invalid distribution to the trust fund amount
4893 within 90 days after receipt of final notification by the state
4894 board or the third-party administrator that the distribution was
4895 invalid, or, in lieu of repayment, the member must terminate
4896 employment from all participating employers. If such person
4897 fails to repay the full invalid distribution within 90 days
4898 after receipt of final notification, the person may be deemed
4899 retired from the optional retirement program investment plan by
4900 the state board, as provided pursuant to s. 121.4501(2)(k), and
4901 is subject to s. 121.122. If such person is deemed retired by
4902 the state board, any joint and several liability set out in s.
4903 121.091(9)(d)2. becomes null and is void, and the state board,
4904 the department, or the employing agency is not liable for gains
4905 on payroll contributions that have not been deposited to the
4906 person’s account in the retirement program investment plan,
4907 pending resolution of the invalid distribution. The member or
4908 former member who has been deemed retired or who has been
4909 determined by the state board to have taken an invalid
4910 distribution may appeal the agency decision through the
4911 complaint process as provided under s. 121.4501(9)(g)3. As used
4912 in this subparagraph, the term “invalid distribution” means any
4913 distribution from an account in the optional retirement program
4914 investment plan which is taken in violation of this section, s.
4915 121.091(9), or s. 121.4501.
4916 (b) If a participant member elects to receive his or her
4917 benefits upon termination of employment as defined in s.
4918 121.021, the participant member must submit a written
4919 application or an application by electronic means to the third
4920 party administrator indicating his or her preferred distribution
4921 date and selecting an authorized method of distribution as
4922 provided in paragraph (c). The participant member may defer
4923 receipt of benefits until he or she chooses to make such
4924 application, subject to federal requirements.
4925 (c) Upon receipt by the third-party administrator of a
4926 properly executed application for distribution of benefits, the
4927 total accumulated benefit shall be is payable to the participant
4928 member pro rata across all Florida Retirement System benefit
4929 sources as:
4930 1. A lump-sum or partial distribution to the participant
4931 member;
4932 2. A lump-sum direct rollover distribution whereby all
4933 accrued benefits, plus interest and investment earnings, are
4934 paid from the participant’s member’s account directly to the
4935 custodian of an eligible retirement plan, as defined in s.
4936 402(c)(8)(B) of the Internal Revenue Code, on behalf of the
4937 participant member; or
4938 3. Periodic distributions, as authorized by the state
4939 board.
4940 (d) The distribution payment method selected by the member
4941 or beneficiary, and the retirement of the member or beneficiary,
4942 is final and irrevocable at the time a benefit distribution
4943 payment is cashed, deposited, or transferred to another
4944 financial institution. Any additional service that remains
4945 unclaimed at retirement may not be claimed or purchased, and the
4946 type of retirement may not be changed, except that if a member
4947 recovers from a disability, the member may subsequently request
4948 benefits under subsection (2).
4949 (e) A member may not receive a distribution of employee
4950 contributions if a pending qualified domestic relations order is
4951 filed against the member’s investment plan account.
4952 (2) DISABILITY RETIREMENT BENEFITS.—Benefits provided under
4953 this subsection are payable in lieu of the benefits which that
4954 would otherwise be payable under the provisions of subsection
4955 (1). Such benefits shall must be funded entirely from employer
4956 contributions made under s. 121.571, transferred participant
4957 employee contributions and funds accumulated pursuant to
4958 paragraph (a), and interest and earnings thereon. Pursuant
4959 thereto:
4960 (a) Transfer of funds.—To qualify to receive monthly
4961 disability benefits under this subsection:
4962 1. All moneys accumulated in the participant’s Public
4963 Employee Optional Retirement Program accounts member’s account,
4964 including vested and nonvested accumulations as described in s.
4965 121.4501(6), shall must be transferred from such individual
4966 accounts to the Division of Retirement for deposit in the
4967 disability account of the Florida Retirement System Trust Fund.
4968 Such moneys shall must be separately accounted for separately.
4969 Earnings shall must be credited on an annual basis for amounts
4970 held in the disability accounts of the Florida Retirement System
4971 Trust Fund based on actual earnings of the Florida Retirement
4972 System Trust Fund.
4973 2. If the participant member has retained retirement credit
4974 he or she had earned under the defined benefit program of the
4975 Florida Retirement System pension plan as provided in s.
4976 121.4501(3)(b), a sum representing the actuarial present value
4977 of such credit within the Florida Retirement System Trust Fund
4978 shall be reassigned by the Division of Retirement from the
4979 defined benefit program pension plan to the disability program
4980 as implemented under this subsection and shall be deposited in
4981 the disability account of the Florida Retirement System trust
4982 fund. Such moneys shall must be separately accounted for
4983 separately.
4984 (b) Disability retirement; entitlement.—
4985 1. A participant member of the Public Employee Optional
4986 Retirement Program investment plan who becomes totally and
4987 permanently disabled, as defined in s. 121.091(4)(b) paragraph
4988 (d), after completing 8 years of creditable service, or a
4989 participant member who becomes totally and permanently disabled
4990 in the line of duty regardless of his or her length of service,
4991 shall be is entitled to a monthly disability benefit as provided
4992 herein.
4993 2. In order for service to apply toward the 8 years of
4994 creditable service required to vest for regular disability
4995 benefits, or toward the creditable service used in calculating a
4996 service-based benefit as provided for under paragraph (g), the
4997 service must be creditable service as described below:
4998 a. The participant’s member’s period of service under the
4999 Public Employee Optional Retirement Program will investment plan
5000 shall be considered creditable service, except as provided in
5001 subparagraph d.
5002 b. If the participant member has elected to retain credit
5003 for his or her service under the defined benefit program of the
5004 Florida Retirement System pension plan as provided under s.
5005 121.4501(3)(b), all such service will shall be considered
5006 creditable service.
5007 c. If the participant has elected member elects to transfer
5008 to his or her participant member accounts a sum representing the
5009 present value of his or her retirement credit under the defined
5010 benefit program pension plan as provided under s.
5011 121.4501(3)(c), the period of service under the defined benefit
5012 program pension plan represented in the present value amounts
5013 transferred will shall be considered creditable service for
5014 purposes of vesting for disability benefits, except as provided
5015 in subparagraph d.
5016 d. Whenever a participant If a member has terminated
5017 employment and has taken distribution of his or her funds as
5018 provided in subsection (1), all creditable service represented
5019 by such distributed funds is forfeited for purposes of this
5020 subsection.
5021 (c) Disability retirement effective date.—The effective
5022 retirement date for a participant member who applies and is
5023 approved for disability retirement shall be established as
5024 provided under s. 121.091(4)(a)2. and 3.
5025 (d) Total and permanent disability.—A participant member
5026 shall be considered totally and permanently disabled if, in the
5027 opinion of the division, he or she is prevented, by reason of a
5028 medically determinable physical or mental impairment, from
5029 rendering useful and efficient service as an officer or
5030 employee.
5031 (e) Proof of disability.—The division, before approving
5032 payment of any disability retirement benefit, the division shall
5033 require proof that the participant member is totally and
5034 permanently disabled in the same manner as provided for members
5035 of the defined benefit program of the Florida Retirement System
5036 under s. 121.091(4)(c).
5037 (f) Disability retirement benefit.—Upon the disability
5038 retirement of a participant member under this subsection, the
5039 participant member shall receive a monthly benefit that shall
5040 begin to accrue begins accruing on the first day of the month of
5041 disability retirement, as approved by the division, and shall be
5042 is payable on the last day of that month and each month
5043 thereafter during his or her lifetime and continued disability.
5044 All disability benefits payable to such member shall must be
5045 paid out of the disability account of the Florida Retirement
5046 System Trust Fund established under this subsection.
5047 (g) Computation of disability retirement benefit.—The
5048 amount of each monthly payment shall must be calculated in the
5049 same manner as provided for members of the defined benefit
5050 program of the Florida Retirement System under s. 121.091(4)(f).
5051 For such purpose, Creditable service under both the defined
5052 benefit program pension plan and the Public Employee Optional
5053 Retirement Program of the Florida Retirement System investment
5054 plan shall be applicable as provided under paragraph (b).
5055 (h) Reapplication.—A participant member whose initial
5056 application for disability retirement has been is denied may
5057 reapply for disability benefits in the same manner, and under
5058 the same conditions, as provided for members of the defined
5059 benefit program of the Florida Retirement System under in s.
5060 121.091(4)(g).
5061 (i) Membership.—Upon approval of an a member’s application
5062 for disability benefits under this subsection, the applicant
5063 member shall be transferred to the defined benefit program of
5064 the Florida Retirement System pension plan, effective upon his
5065 or her disability retirement effective date.
5066 (j) Option to cancel.—Any participant A member whose
5067 application for disability benefits is approved may cancel the
5068 his or her application for disability benefits, provided that if
5069 the cancellation request is received by the division before a
5070 disability retirement warrant has been deposited, cashed, or
5071 received by direct deposit. Upon such cancellation:
5072 1. The participant’s member’s transfer to the defined
5073 benefit program pension plan under paragraph (i) shall be
5074 nullified;
5075 2. The participant member shall be retroactively reinstated
5076 in the Public Employee Optional Retirement Program investment
5077 plan without hiatus;
5078 3. All funds transferred to the Florida Retirement System
5079 Trust Fund under paragraph (a) shall must be returned to the
5080 participant member accounts from which such the funds were
5081 drawn; and
5082 4. The participant member may elect to receive the benefit
5083 payable under the provisions of subsection (1) in lieu of
5084 disability benefits as provided under this subsection.
5085 (k) Recovery from disability.—
5086 1. The division may require periodic reexaminations at the
5087 expense of the disability program account of the Florida
5088 Retirement System Trust Fund. Except as otherwise provided in
5089 subparagraph 2., the requirements, procedures, and restrictions
5090 relating to the conduct and review of such reexaminations,
5091 discontinuation or termination of benefits, reentry into
5092 employment, disability retirement after reentry into covered
5093 employment, and all other matters relating to recovery from
5094 disability shall be the same as are set forth provided under s.
5095 121.091(4)(h).
5096 2. Upon recovery from disability, any the recipient of
5097 disability retirement benefits under this subsection shall be a
5098 compulsory member of the Public Employee Optional Retirement
5099 Program of the Florida Retirement System investment plan. The
5100 net difference between the recipient’s original account balance
5101 transferred to the Florida Retirement System Trust Fund,
5102 including earnings, under paragraph (a) and total disability
5103 benefits paid to such recipient, if any, shall be determined as
5104 provided in sub-subparagraph a.
5105 a. An amount equal to the total benefits paid shall be
5106 subtracted from that portion of the transferred account balance
5107 consisting of vested accumulations as described under s.
5108 121.4501(6), if any, and an amount equal to the remainder of
5109 benefit amounts paid, if any, shall then be subtracted from any
5110 remaining portion consisting of nonvested accumulations as
5111 described under s. 121.4501(6).
5112 b. Amounts subtracted under sub-subparagraph a. shall must
5113 be retained within the disability account of the Florida
5114 Retirement System Trust Fund. Any remaining account balance
5115 shall be transferred to the third-party administrator for
5116 disposition as provided under sub-subparagraph c. or sub
5117 subparagraph d., as appropriate.
5118 c. If the recipient returns to covered employment,
5119 transferred amounts shall must be deposited in individual
5120 accounts under the Public Employee Optional Retirement Program
5121 investment plan, as directed by the participant member. Vested
5122 and nonvested amounts shall be separately accounted for
5123 separately as provided in s. 121.4501(6).
5124 d. If the recipient fails to return to covered employment
5125 upon recovery from disability:
5126 (I) Any remaining vested amount shall must be deposited in
5127 individual accounts under the Public Employee Optional
5128 Retirement Program investment plan, as directed by the
5129 participant member, and shall be is payable as provided in
5130 subsection (1).
5131 (II) Any remaining nonvested amount shall must be held in a
5132 suspense account and shall be is forfeitable after 5 years as
5133 provided in s. 121.4501(6).
5134 3. If present value was reassigned from the defined benefit
5135 program pension plan to the disability program of the Florida
5136 Retirement System as provided under subparagraph (a)2., the full
5137 present value amount shall must be returned to the defined
5138 benefit account within the Florida Retirement System Trust Fund
5139 and the affected individual’s member’s associated retirement
5140 credit under the defined benefit program shall pension plan must
5141 be reinstated in full. Any benefit based upon such credit shall
5142 must be calculated as provided in s. 121.091(4)(h)1.
5143 (l) Nonadmissible causes of disability.—A participant shall
5144 member is not be entitled to receive a disability retirement
5145 benefit if the disability results from any injury or disease
5146 sustained or inflicted as described in s. 121.091(4)(i).
5147 (m) Disability retirement of justice or judge by order of
5148 Supreme Court.—
5149 1. If a participant member is a justice of the Supreme
5150 Court, judge of a district court of appeal, circuit judge, or
5151 judge of a county court who has served for 6 years or more the
5152 years equal to, or greater than, the vesting requirement in s.
5153 121.021(45) as an elected constitutional judicial officer,
5154 including service as a judicial officer in any court abolished
5155 pursuant to Art. V of the State Constitution, and who is retired
5156 for disability by order of the Supreme Court upon recommendation
5157 of the Judicial Qualifications Commission pursuant to the
5158 provisions of s. 12, Art. V of the State Constitution, the
5159 participant’s member’s Option 1 monthly disability benefit
5160 amount as provided in s. 121.091(6)(a)1. shall be two-thirds of
5161 his or her monthly compensation as of the participant’s member’s
5162 disability retirement date. Such a participant The member may
5163 alternatively elect to receive an actuarially adjusted
5164 disability retirement benefit under any other option as provided
5165 in s. 121.091(6)(a) or to receive the normal benefit payable
5166 under the Public Employee Optional Retirement Program as set
5167 forth in subsection (1).
5168 2. If any justice or judge who is a participant member of
5169 the Public Employee Optional Retirement Program of the Florida
5170 Retirement System investment plan is retired for disability by
5171 order of the Supreme Court upon recommendation of the Judicial
5172 Qualifications Commission pursuant to the provisions of s. 12,
5173 Art. V of the State Constitution and elects to receive a monthly
5174 disability benefit under the provisions of this paragraph:
5175 a. Any present value amount that was transferred to his or
5176 her program investment plan account and all employer and
5177 employee contributions made to such account on his or her
5178 behalf, plus interest and earnings thereon, shall must be
5179 transferred to and deposited in the disability account of the
5180 Florida Retirement System Trust Fund; and
5181 b. The monthly disability benefits payable under this
5182 paragraph for any affected justice or judge retired from the
5183 Florida Retirement System pursuant to Art. V of the State
5184 Constitution shall be paid from the disability account of the
5185 Florida Retirement System Trust Fund.
5186 (n) Death of retiree or beneficiary.—Upon the death of a
5187 disabled retiree or beneficiary thereof of the retiree who is
5188 receiving monthly disability benefits under this subsection, the
5189 monthly benefits shall be paid through the last day of the month
5190 of death and shall terminate, or be adjusted, if applicable, as
5191 of that date in accordance with the optional form of benefit
5192 selected at the time of retirement. The Department of Management
5193 Services may adopt rules necessary to administer this paragraph.
5194 (3) DEATH BENEFITS.—Under the Public Employee Optional
5195 Retirement Program Florida Retirement System Investment Plan:
5196 (a) Survivor benefits shall be are payable in accordance
5197 with the following terms and conditions:
5198 1. To the extent vested, benefits shall be are payable only
5199 to a participant’s member’s beneficiary or beneficiaries as
5200 designated by the participant member as provided in s.
5201 121.4501(20).
5202 2. Benefits shall be paid by the third-party administrator
5203 or designated approved providers in accordance with the law, the
5204 contracts, and any applicable state board rule or policy.
5205 3. To receive benefits under this subsection, the
5206 participant member must be deceased.
5207 (b) In the event of a participant’s member’s death, all
5208 vested accumulations as described in s. 121.4501(6), less
5209 withholding taxes remitted to the Internal Revenue Service,
5210 shall be distributed, as provided in paragraph (c) or as
5211 described in s. 121.4501(20), as if the participant member
5212 retired on the date of death. No other death benefits are shall
5213 be available for survivors of participants under the Public
5214 Employee Optional Retirement Program members, except for such
5215 benefits, or coverage for such benefits, as are otherwise
5216 provided by law or are separately afforded provided by the
5217 employer, at the employer’s discretion.
5218 (c) Upon receipt by the third-party administrator of a
5219 properly executed application for distribution of benefits, the
5220 total accumulated benefit shall be is payable by the third-party
5221 administrator to the participant’s member’s surviving
5222 beneficiary or beneficiaries, as:
5223 1. A lump-sum distribution payable to the beneficiary or
5224 beneficiaries, or to the deceased participant’s member’s estate;
5225 2. An eligible rollover distribution, if permitted, on
5226 behalf of the surviving spouse of a deceased participant member,
5227 whereby all accrued benefits, plus interest and investment
5228 earnings, are paid from the deceased participant’s member’s
5229 account directly to the custodian of an eligible retirement
5230 plan, as described in s. 402(c)(8)(B) of the Internal Revenue
5231 Code, on behalf of the surviving spouse; or
5232 3. A partial lump-sum payment whereby a portion of the
5233 accrued benefit is paid to the deceased participant’s member’s
5234 surviving spouse or other designated beneficiaries, less
5235 withholding taxes remitted to the Internal Revenue Service, and
5236 the remaining amount is transferred directly to the custodian of
5237 an eligible retirement plan, if permitted, as described in s.
5238 402(c)(8)(B) of the Internal Revenue Code, on behalf of the
5239 surviving spouse. The proportions must be specified by the
5240 participant member or the surviving beneficiary.
5241
5242 This paragraph does not abrogate other applicable provisions of
5243 state or federal law providing for payment of death benefits.
5244 (4) LIMITATION ON LEGAL PROCESS.—The benefits payable to
5245 any person under the Public Employee Optional Retirement Program
5246 Florida Retirement System Investment Plan, and any contributions
5247 accumulated under such program the plan, are not subject to
5248 assignment, execution, attachment, or any legal process, except
5249 for qualified domestic relations orders by a court of competent
5250 jurisdiction, income deduction orders as provided in s. 61.1301,
5251 and federal income tax levies.
5252 Section 31. Section 121.5911, Florida Statutes, is amended
5253 to read:
5254 121.5911 Disability retirement program; qualified status;
5255 rulemaking authority.—It is the intent of the Legislature that
5256 the disability retirement program for participants members of
5257 the Public Employee Optional Retirement Program as created in
5258 this act must Florida Retirement System Investment Plan meet all
5259 applicable requirements of federal law for a qualified plan. The
5260 Department of Management Services shall seek a private letter
5261 ruling from the Internal Revenue Service on the disability
5262 retirement program for participants of the Public Employee
5263 Optional Retirement Program. Consistent with the private letter
5264 ruling, the Department of Management Services shall adopt any
5265 necessary rules required necessary to maintain the qualified
5266 status of the disability retirement program and the Florida
5267 Retirement System Defined Benefit Pension Plan.
5268 Section 32. Section 121.70, Florida Statutes, is amended to
5269 read:
5270 121.70 Legislative purpose and intent.—
5271 (1) This part provides for a uniform system for funding
5272 benefits provided under the Florida Retirement System Defined
5273 Benefit Program Pension Plan established under part I of this
5274 chapter (referred to in this part as the defined benefit program
5275 pension plan) and under the Public Employee Optional Retirement
5276 Program Florida Retirement System Investment Plan established
5277 under part II of this chapter (referred to in this part as the
5278 optional retirement program investment plan). The Legislature
5279 recognizes and declares that the Florida Retirement System is a
5280 single retirement system, consisting of two retirement plans and
5281 other nonintegrated programs. Employees and Employers
5282 participating in the Florida Retirement System collectively
5283 shall be responsible for making contributions to support the
5284 benefits afforded provided under both plans. As provided in this
5285 part, The employees and employers participating in the Florida
5286 Retirement System shall make contributions based upon uniform
5287 contribution rates determined as a percentage of the total
5288 payroll employee’s gross monthly compensation for each the
5289 employee’s class or subclass of Florida Retirement System
5290 membership, irrespective of which the retirement plan in which
5291 the individual employees may elect employee is enrolled. This
5292 shall be known as a uniform or blended contribution rate system.
5293 (2) In establishing a uniform contribution rate system, it
5294 is the intent of the Legislature to:
5295 (a) Provide greater stability and certainty in financial
5296 planning and budgeting for Florida Retirement System employers
5297 by eliminating the fiscal instability that would be caused by
5298 dual rates coupled with employee-selected plan participation;
5299 (b) Provide greater fiscal equity and uniformity for system
5300 employers by effectively distributing the financial burden and
5301 benefit of short-term system deficits and surpluses,
5302 respectively, in proportion to total system payroll; and
5303 (c) Allow employees to make their retirement plan selection
5304 decisions free of circumstances that may cause employers to
5305 favor one plan choice over another.
5306 Section 33. Section 121.71, Florida Statutes, is amended to
5307 read:
5308 121.71 Uniform rates; process; calculations; levy.—
5309 (1) In conducting the system actuarial study required under
5310 s. 121.031, the actuary shall follow all requirements specified
5311 thereunder to determine, by Florida Retirement System employee
5312 membership class, the dollar contribution amounts necessary for
5313 the forthcoming next fiscal year for the defined benefit program
5314 pension plan. In addition, the actuary shall determine, by
5315 Florida Retirement System membership class, based on an estimate
5316 for the forthcoming next fiscal year of the gross compensation
5317 of employees participating in the optional retirement program
5318 investment plan, the dollar contribution amounts necessary to
5319 make the allocations required under ss. 121.72 and 121.73. For
5320 each employee membership class and subclass, the actuarial study
5321 shall must establish a uniform rate necessary to fund the
5322 benefit obligations under both Florida Retirement System
5323 retirement plans by dividing the sum of total dollars required
5324 by the estimated gross compensation of members in both plans.
5325 (2) Based on the uniform rates set forth in subsection
5326 subsections (3), (4), and (5), employees and employers shall
5327 make monthly contributions to the Division of Retirement as
5328 required in s. 121.061(1), which shall initially deposit the
5329 funds into the Florida Retirement System Contributions Clearing
5330 Trust Fund. A change in a contribution rate is effective the
5331 first day of the month for which a full month’s employer and
5332 employee contribution may be made on or after the beginning date
5333 of the change. Beginning July 1, 2011, each employee shall
5334 contribute the contributions required in subsection (3). The
5335 employer shall deduct the contribution from the employee’s
5336 monthly salary, and the contribution shall be submitted to the
5337 division. These contributions shall be reported as employer-paid
5338 employee contributions, and credited to the account of the
5339 employee. The contributions shall be deducted from the
5340 employee’s salary before the computation of applicable federal
5341 taxes and treated as employer contributions under 26 U.S.C. s.
5342 414(h)(2). The employer specifies that the contributions,
5343 although designated as employee contributions, are being paid by
5344 the employer in lieu of contributions by the employee. The
5345 employee does not have the option of choosing to receive the
5346 contributed amounts directly instead of having them paid by the
5347 employer to the plan. Such contributions are mandatory, and each
5348 employee is considered to have consented to payroll deductions.
5349 Payment of an employee’s salary or wages, less the contribution,
5350 is a full and complete discharge and satisfaction of all claims
5351 and demands for the service rendered by employees during the
5352 period covered by the payment, except their claims to the
5353 benefits to which they may be entitled under this chapter.
5354 (3) Required employee retirement contribution rates for
5355 each membership class and subclass of the Florida Retirement
5356 System for both retirement plans are as follows:
5357
5358 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011
5359
5360 Regular Class 3.00%
5361 Special Risk Class 3.00%
5362 Special Risk Administrative Support Class 3.00%
5363 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 3.00%
5364 Elected Officers’ Class— Justices, Judges 3.00%
5365 Elected Officers’ Class— County Elected Officers 3.00%
5366 Senior Management Service Class 3.00%
5367 DROP 0.00%
5368 (3)(4) Required employer retirement contribution rates for
5369 each membership class and subclass of the Florida Retirement
5370 System for both retirement plans are as follows:
5371
5372 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2012 2011 Percentage ofGrossCompensation,EffectiveJuly 1, 2013 2012
5373
5374 Regular Class 8.69% 3.28% 9.63% 3.28%
5375 Special Risk Class 19.76% 10.21% 22.11% 10.21%
5376 Special Risk Administrative Support Class 11.39% 4.07% 12.10% 4.07%
5377 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 13.32% 7.02% 15.20% 7.02%
5378 Elected Officers’ Class— Justices, Judges 18.40% 9.78% 20.65% 9.78%
5379 Elected Officers’ Class— County Elected Officers 15.37% 9.27% 17.50% 9.27%
5380 Senior Management Class 11.96% 4.81% 13.43% 4.81%
5381 DROP 9.80% 3.31% 11.14% 3.31%
5382 (5) In order to address unfunded actuarial liabilities of
5383 the system, the required employer retirement contribution rates
5384 for each membership class and subclass of the Florida Retirement
5385 System for both retirement plans are as follows:
5386
5387 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011Percentage ofGrossCompensation,EffectiveJuly 1, 2012
5388
5389 Regular Class 0.49% 2.16%
5390 Special Risk Class 2.75% 8.21%
5391 Special Risk Administrative Support Class 0.83% 21.40%
5392 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 0.88% 21.76%
5393 Elected Officers’ Class— Justices, Judges 0.77% 12.86%
5394 Elected Officers’ Class— County Elected Officers 0.73% 22.05%
5395 Senior Management Service Class 0.32% 10.51%
5396 DROP 0.00% 6.36%
5397 (6) If a member is reported under an incorrect membership
5398 class and the amount of contributions reported and remitted is
5399 less than the amount required, the employer shall owe the
5400 difference, plus the delinquent fee, of 1 percent for each
5401 calendar month or part thereof that the contributions should
5402 have been paid. The delinquent assessment may not be waived. If
5403 the contributions reported and remitted are more than the amount
5404 required, the employer shall receive a credit to be applied
5405 against future contributions owed.
5406 (4)(7) The state actuary shall recognize and use an
5407 appropriate level of available excess assets of the Florida
5408 Retirement System Trust Fund to offset the difference between
5409 the normal costs of the Florida Retirement System and the
5410 statutorily prescribed contribution rates.
5411 Section 34. Section 121.72, Florida Statutes, is amended to
5412 read:
5413 121.72 Allocations to optional retirement program
5414 participant investment plan member accounts; percentage
5415 amounts.—
5416 (1) The allocations established in subsection (4) shall
5417 fund retirement benefits under the optional retirement program
5418 investment plan and shall be transferred monthly by the Division
5419 of Retirement from the Florida Retirement System Contributions
5420 Clearing Trust Fund to the third-party administrator for deposit
5421 in each participating employee’s individual account based on the
5422 membership class of the participant.
5423 (2) The allocations are stated as a percentage of each
5424 optional retirement program participant’s investment plan
5425 member’s gross compensation for the calendar month. A change in
5426 a contribution percentage is effective the first day of the
5427 month for which a full month’s employer contribution retirement
5428 contributions may be made on or after the beginning date of the
5429 change. Contribution percentages may be modified by general law.
5430 (3) Employer and participant employee contributions to
5431 participant member accounts shall be accounted for separately.
5432 Participant contributions may be made only if expressly
5433 authorized by law. Interest and investment earnings on
5434 contributions shall accrue on a tax-deferred basis until
5435 proceeds are distributed.
5436 (4) Effective July 1, 2002, allocations from the Florida
5437 Retirement System Contributions Clearing Trust Fund to optional
5438 retirement program participant investment plan member accounts
5439 shall be are as follows:
5440 Membership Class Percentage of Gross Compensation
5441 Regular Class 9.00%
5442 Special Risk Class 20.00%
5443 Special Risk Administrative Support Class 11.35%
5444 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 13.40%
5445 Elected Officers’ Class— Justices, Judges 18.90%
5446 Elected Officers’ Class— County Elected Officers 16.20%
5447 Senior Management Service Class 10.95%
5448 Section 35. Section 121.73, Florida Statutes, is amended to
5449 read:
5450 121.73 Allocations for optional retirement program
5451 participant member disability coverage; percentage amounts.—
5452 (1) The allocations established in subsection (3) shall be
5453 used to provide disability coverage for participants members in
5454 the optional retirement program investment plan and shall be
5455 transferred monthly by the Division of Retirement from the
5456 Florida Retirement System Contributions Clearing Trust Fund to
5457 the disability account of the Florida Retirement System Trust
5458 Fund.
5459 (2) The allocations are stated as a percentage of each
5460 optional retirement program participant’s investment plan
5461 member’s gross compensation for the calendar month. A change in
5462 a contribution percentage is effective the first day of the
5463 month for which a full month’s employer contribution retirement
5464 contributions may be made on or after the beginning date of the
5465 change. Contribution percentages may be modified by general law.
5466 (3) Effective July 1, 2002, allocations from the FRS
5467 Contribution Florida Retirement System Contributions Clearing
5468 Trust Fund to provide disability coverage for participants
5469 members in the optional retirement program investment plan, and
5470 to offset the costs of administering said coverage, shall be are
5471 as follows:
5472 Membership Class Percentage of Gross Compensation
5473 Regular Class 0.25%
5474 Special Risk Class 1.33%
5475 Special Risk Administrative Support Class 0.45%
5476 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 0.41%
5477 Elected Officers’ Class— Justices, Judges 0.73%
5478 Elected Officers’ Class— County Elected Officers 0.41%
5479 Senior Management Service Class 0.26%
5480 Section 36. Section 121.74, Florida Statutes, is amended to
5481 read:
5482 121.74 Administrative and educational expenses.—In addition
5483 to contributions required under s. ss. 121.71 and 121.73,
5484 effective July 1, 2010, through June 30, 2014, employers
5485 participating in the Florida Retirement System shall contribute
5486 an amount equal to 0.03 percent of the payroll reported for each
5487 class or subclass of Florida Retirement System membership;.
5488 effective July 1, 2014, the contribution rate shall be 0.04
5489 percent of the payroll reported for each class or subclass of
5490 membership. The amount contributed shall be transferred by the
5491 Division of Retirement from the Florida Retirement System
5492 Contributions Clearing Trust Fund to the State Board of
5493 Administration’s Administrative Trust Fund to offset the costs
5494 of administering the optional retirement program investment plan
5495 and the costs of providing educational services to participants
5496 in the defined benefit program and the optional retirement
5497 program members of the Florida Retirement System. Approval of
5498 the trustees is required before the expenditure of these funds.
5499 Payments for third-party administrative or educational expenses
5500 shall be made only pursuant to the terms of the approved
5501 contracts for such services.
5502 Section 37. Section 121.75, Florida Statutes, is amended to
5503 read:
5504 121.75 Allocation for defined benefit program pension
5505 plan.—After making the transfers required pursuant to ss.
5506 121.71, 121.72, 121.73, and 121.74, the monthly balance of funds
5507 in the Florida Retirement System Contributions Clearing Trust
5508 Fund shall be transferred to the Florida Retirement System Trust
5509 Fund to pay the costs of providing defined benefit program
5510 pension plan benefits and plan administrative costs under the
5511 defined benefit program pension plan.
5512 Section 38. Section 121.77, Florida Statutes, is amended to
5513 read:
5514 121.77 Deductions from participant member accounts.—The
5515 State Board of Administration may authorize the third-party
5516 administrator to deduct reasonable fees and apply appropriate
5517 charges to optional retirement program participant investment
5518 plan member accounts. In no event shall may administrative and
5519 educational expenses exceed the portion of employer
5520 contributions earmarked for such expenses under this part,
5521 except for reasonable administrative charges assessed against
5522 participant member accounts of persons for whom no employer
5523 contributions are made during the calendar quarter. Investment
5524 management fees shall be deducted from participant member
5525 accounts, pursuant to the terms of the contract between the
5526 provider and the board.
5527 Section 39. Section 121.78, Florida Statutes, is amended to
5528 read:
5529 121.78 Payment and distribution of contributions.—
5530 (1) Contributions made pursuant to this part shall be paid
5531 by the employer, including the employee contribution, to the
5532 Division of Retirement by electronic funds transfer no later
5533 than the 5th working day of the month immediately after
5534 following the month during which the payroll period ended.
5535 Accompanying payroll data must be transmitted to the division
5536 concurrent with the contributions.
5537 (2) The division, the State Board of Administration, and
5538 the third-party administrator, as applicable, shall ensure that
5539 the contributions are distributed to the appropriate trust funds
5540 or participant accounts in a timely manner.
5541 (3)(a) Employee and Employer contributions and accompanying
5542 payroll data received after the 5th working day of the month are
5543 considered late. The employer shall be assessed by the Division
5544 of Retirement a penalty of 1 percent of the contributions due
5545 for each calendar month or part thereof that the contributions
5546 or accompanying payroll data are late. Proceeds from the 1
5547 percent 1 percent assessment against contributions made on
5548 behalf of participants members of the defined benefit program
5549 shall pension plan must be deposited in the Florida Retirement
5550 System Trust Fund, and proceeds from the 1-percent 1 percent
5551 assessment against contributions made on behalf of participants
5552 members of the optional retirement program investment plan shall
5553 be transferred to the third-party administrator for deposit into
5554 participant member accounts, as provided in paragraph (b) (c).
5555 (b) Retirement contributions paid for a prior period shall
5556 be charged a delinquent fee of 1 percent for each calendar month
5557 or part thereof that the contributions should have been paid.
5558 This includes prior period contributions due to incorrect wages
5559 and contributions from an earlier report or wages and
5560 contributions that should have been reported but were not. The
5561 delinquent assessments may not be waived.
5562 (b)(c) If employee contributions or contributions made by
5563 an employer on behalf of participants members of the optional
5564 retirement program investment plan or accompanying payroll data
5565 are not received within the calendar month they are due,
5566 including, but not limited to, contribution adjustments as a
5567 result of employer errors or corrections, and if that
5568 delinquency results in market losses to participants members,
5569 the employer shall reimburse each participant’s member’s account
5570 for market losses resulting from the late contributions. If a
5571 participant member has terminated employment and taken a
5572 distribution, the participant member is responsible for
5573 returning any excess contributions erroneously provided by
5574 employers, adjusted for any investment gain or loss incurred
5575 during the period such excess contributions were in the
5576 participant’s member’s account. The state board or its
5577 designated agent shall communicate to terminated participants
5578 members any obligation to repay such excess contribution
5579 amounts. However, the state board, its designated agents, the
5580 Public Employee Optional Retirement Program Florida Retirement
5581 System Investment Plan Trust Fund, the department, or the
5582 Florida Retirement System Trust Fund may not incur any loss or
5583 gain as a result of an employer’s correction of such excess
5584 contributions. The third-party administrator, hired by the state
5585 board pursuant to s. 121.4501(8), shall calculate the market
5586 losses for each affected participant member. If contributions
5587 made on behalf of participants members of the optional
5588 retirement program investment plan or accompanying payroll data
5589 are not received within the calendar month due, the employer
5590 shall also pay the cost of the third-party administrator’s
5591 calculation and reconciliation adjustments resulting from the
5592 late contributions. The third-party administrator shall notify
5593 the employer of the results of the calculations and the total
5594 amount due from the employer for such losses and the costs of
5595 calculation and reconciliation. The employer shall remit to the
5596 Division of Retirement the amount due within 30 working days
5597 after the date of the penalty notice sent by the division. The
5598 division shall transfer that amount to the third-party
5599 administrator, which shall deposit proceeds from the 1 percent
5600 assessment and from individual market losses into participant
5601 member accounts, as appropriate. The state board may adopt rules
5602 to administer the provisions regarding late contributions, late
5603 submission of payroll data, the process for reimbursing
5604 participant member accounts for resultant market losses, and the
5605 penalties charged to the employers.
5606 (d) If employee contributions reported by an employer on
5607 behalf of members are reduced as a result of employer errors or
5608 corrections, and the member has terminated employment and taken
5609 a refund or distribution, the employer shall be billed and is
5610 responsible for recovering from the member any excess
5611 contributions erroneously provided by the employer.
5612 (c)(e) Delinquency fees specified in paragraph (a) may be
5613 waived by the Division of Retirement, with regard to pension
5614 plan defined benefit program contributions, and by the state
5615 board, with regard to optional retirement program investment
5616 plan contributions, only if, in the opinion of the division or
5617 the board, as appropriate, exceptional circumstances beyond the
5618 employer’s control prevented remittance by the prescribed due
5619 date notwithstanding the employer’s good faith efforts to effect
5620 delivery. Such a waiver of delinquency may be granted an
5621 employer only once each state fiscal plan year.
5622 (f) If the employer submits excess employer or employee
5623 contributions, the employer shall receive a credit to be applied
5624 against future contributions owed. The employer is responsible
5625 for reimbursing the member for any excess contributions
5626 submitted if any return of such an erroneous excess pretax
5627 contribution by the program is made within 1 year after making
5628 erroneous contributions or such other period allowed under
5629 applicable Internal Revenue guidance.
5630 (d)(g) If contributions made by an employer on behalf of
5631 participants members in the optional retirement program
5632 investment plan are delayed in posting to participant member
5633 accounts due to acts of God beyond the control of the Division
5634 of Retirement, the state board, or the third-party
5635 administrator, as applicable, market losses resulting from the
5636 late contributions are not payable to the participants members.
5637 Section 40. Paragraph (a) of subsection (4), paragraph (b)
5638 of subsection (5), and subsection (7) of section 1012.875,
5639 Florida Statutes, are amended to read:
5640 1012.875 State Community College System Optional Retirement
5641 Program.—Each Florida College System institution may implement
5642 an optional retirement program, if such program is established
5643 therefor pursuant to s. 1001.64(20), under which annuity or
5644 other contracts providing retirement and death benefits may be
5645 purchased by, and on behalf of, eligible employees who
5646 participate in the program, in accordance with s. 403(b) of the
5647 Internal Revenue Code. Except as otherwise provided herein, this
5648 retirement program, which shall be known as the State Community
5649 College System Optional Retirement Program, may be implemented
5650 and administered only by an individual Florida College System
5651 institution or by a consortium of Florida College System
5652 institutions.
5653 (4)(a)1. Through June 30, 2011, Each college must
5654 contribute on behalf of each program participant member an
5655 amount equal to 10.43 percent of the participant’s employee’s
5656 gross monthly compensation.
5657 2. Effective July 1, 2011, each member shall contribute an
5658 amount equal to the employee contribution required under s.
5659 121.71(3). The employer shall contribute on behalf of each
5660 program member an amount equal to the difference between 10.43
5661 percent of the employee’s gross monthly compensation and the
5662 employee’s required contribution based on the employee’s gross
5663 monthly compensation.
5664 3. The college shall deduct an amount approved by the
5665 district board of trustees of the college to provide for the
5666 administration of the optional retirement program. Payment of
5667 this contribution must be made either directly by the college or
5668 through the program administrator to the designated company
5669 contracting for payment of benefits to the program participant
5670 member.
5671 (5)
5672 (b) Benefits are payable under the optional retirement
5673 program to program participants or their beneficiaries and the
5674 benefits must be paid only by the designated company in
5675 accordance with the terms of the contracts applicable to the
5676 program participant. Benefits shall accrue in individual
5677 accounts that are participant-directed, portable, and funded by
5678 employer and employee contributions and the earnings thereon.
5679 Benefits funded by employer and employee contributions are
5680 payable in accordance with the following terms and conditions:
5681 1. Benefits shall be payable only to a participant, to his
5682 or her beneficiaries, or to his or her estate, as designated by
5683 the participant.
5684 2. Benefits shall be paid by the provider company or
5685 companies in accordance with the law, the provisions of the
5686 contract, and any applicable employer rule or policy.
5687 3. In the event of a participant’s death, moneys
5688 accumulated by, or on behalf of, the participant, less
5689 withholding taxes remitted to the Internal Revenue Service, if
5690 any, shall be distributed to the participant’s designated
5691 beneficiary or beneficiaries, or to the participant’s estate, as
5692 if the participant retired on the date of death as provided in
5693 paragraph (d). No other death benefits shall be are available
5694 for survivors of participants under the optional retirement
5695 program except for such benefits, or coverage for such benefits,
5696 as are separately afforded by the employer at the employer’s
5697 discretion.
5698 (7) Benefits, including employee contributions, are not
5699 payable for employee hardships, unforeseeable emergencies,
5700 loans, medical expenses, educational expenses, purchase of a
5701 principal residence, payments necessary to prevent eviction or
5702 foreclosure on an employee’s principal residence, or any other
5703 reason before termination from all employment relationships with
5704 participating employers for 3 calendar months.
5705 Section 41. Employee contributions plus interest made by
5706 participants between July 1, 2011, and June 30, 2012, shall be
5707 reimbursed to the participants at the actuarial assumption rate
5708 as determined by the Division of Retirement.
5709 Section 42. The Legislature finds that a proper and
5710 legitimate state purpose is served when employees and retirees
5711 of the state and its political subdivisions, and the dependents,
5712 survivors, and beneficiaries of such employees and retirees, are
5713 extended the basic protections afforded by governmental
5714 retirement systems. These persons must be provided benefits that
5715 are fair and adequate and that are managed, administered, and
5716 funded in an actuarially sound manner, as required by s. 14,
5717 Article X of the State Constitution and part VII of chapter 112,
5718 Florida Statutes. Therefore, the Legislature determines and
5719 declares that this act fulfills an important state interest.
5720 Section 43. This act shall take effect July 1, 2012.