Florida Senate - 2013 SENATOR AMENDMENT
Bill No. CS for CS for SB 1392
Barcode 138436
LEGISLATIVE ACTION
Senate . House
.
.
.
Floor: WD/2R .
04/30/2013 01:42 PM .
—————————————————————————————————————————————————————————————————
—————————————————————————————————————————————————————————————————
Senator Latvala moved the following:
1 Senate Amendment (with directory and title amendments)
2
3 Between lines 1342 and 1343
4 insert:
5 (3) DEATH BENEFITS.—Under the Florida Retirement System
6 Investment Plan:
7 (a)1. Survivor benefits are payable in accordance with the
8 following terms and conditions:
9 a.1. To the extent vested, benefits are payable only to a
10 member’s beneficiary or beneficiaries as designated by the
11 member as provided in s. 121.4501(20).
12 b.2. Benefits shall be paid by the third-party
13 administrator or designated approved providers in accordance
14 with the law, the contracts, and any applicable state board rule
15 or policy.
16 c.3. To receive benefits, the member must be deceased.
17 2.(b) In the event of a member’s death, all vested
18 accumulations as described in s. 121.4501(6), less withholding
19 taxes remitted to the Internal Revenue Service, shall be
20 distributed, as provided in subparagraph 3. paragraph (c) or as
21 described in s. 121.4501(20), as if the member retired on the
22 date of death. No other death benefits are available for
23 survivors of members, except for benefits, or coverage for
24 benefits, as are otherwise provided by law or separately
25 provided by the employer, at the employer’s discretion.
26 3.(c) Upon receipt by the third-party administrator of a
27 properly executed application for distribution of benefits, the
28 total accumulated benefit is payable by the third-party
29 administrator to the member’s surviving beneficiary or
30 beneficiaries, as:
31 a.1. A lump-sum distribution payable to the beneficiary or
32 beneficiaries, or to the deceased member’s estate;
33 b.2. An eligible rollover distribution, if permitted, on
34 behalf of the surviving spouse of a deceased member, whereby all
35 accrued benefits, plus interest and investment earnings, are
36 paid from the deceased member’s account directly to the
37 custodian of an eligible retirement plan, as described in s.
38 402(c)(8)(B) of the Internal Revenue Code, on behalf of the
39 surviving spouse; or
40 c.3. A partial lump-sum payment whereby a portion of the
41 accrued benefit is paid to the deceased member’s surviving
42 spouse or other designated beneficiaries, less withholding taxes
43 remitted to the Internal Revenue Service, and the remaining
44 amount is transferred directly to the custodian of an eligible
45 retirement plan, if permitted, as described in s. 402(c)(8)(B)
46 of the Internal Revenue Code, on behalf of the surviving spouse.
47 The proportions must be specified by the member or the surviving
48 beneficiary.
49 (b)1. Each employer participating in the Florida Retirement
50 System shall purchase a life insurance policy from a state term
51 contract for each member of the Special Risk Class of the
52 investment plan who is initially enrolled in the Florida
53 Retirement System on or after July 1, 2014.
54 2. The Department of Management Services shall procure a
55 life insurance product on a state term contract with the
56 following attributes:
57 a. The benefit must be limited to Special Risk Class
58 members who are killed in the line of duty.
59 b. The benefit must be equal to 10 times the employee’s
60 annual salary.
61 c. The benefit must provide for monthly benefit payments,
62 including interest, to be paid to the designated beneficiary or
63 beneficiaries over a 20-year period.
64 d. The product must be guaranteed issue.
65 e. The product must provide level premium rates for the
66 term of the policy.
67 f. Any administrative fees shall be the responsibility of
68 the employer.
69 3. Survivor benefits provided by the life insurance policy
70 are payable in addition to the survivor benefits provided under
71 paragraph (a).
72
73 This subsection paragraph does not abrogate other applicable
74 provisions of state or federal law providing for payment of
75 death benefits.
76
77 ====== D I R E C T O R Y C L A U S E A M E N D M E N T ======
78 And the directory clause is amended as follows:
79 Delete lines 1244 - 1245
80 and insert:
81 Section 7. Paragraph (b) of subsection (2) and subsection
82 (3) of section 121.591, Florida Statutes, are amended to read:
83
84 ================= T I T L E A M E N D M E N T ================
85 And the title is amended as follows:
86 Delete line 45
87 and insert:
88 relating to disability retirement benefits; providing
89 an additional death benefit to specified members of
90 the Special Risk Class; requiring each employer
91 participating in the Florida Retirement System to
92 purchase a life insurance policy for each member of
93 the Special Risk Class of the investment plan
94 initially enrolled on or after a specified date;
95 requiring the Department of Management Services to
96 procure a life insurance product with certain
97 attributes on a state term contract; amending