Florida Senate - 2014 COMMITTEE AMENDMENT
Bill No. PCS (776102) for SB 1114
Ì927262)Î927262
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
04/10/2014 .
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(Ring) recommended the following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 311 - 993
4 and insert:
5 Section 1. Subsections (3) and (5) of section 121.053,
6 Florida Statutes, are amended to read:
7 121.053 Participation in the Elected Officers’ Class for
8 retired members.—
9 (3) On or after July 1, 2010:
10 (a) A retiree of a state-administered retirement system who
11 is initially reemployed in elected or appointed for the first
12 time to an elective office in a regularly established position
13 with a covered employer may not reenroll in the Florida
14 Retirement System, except as provided in s. 121.122.
15 (b) An elected officer who is elected or appointed to an
16 elective office and is participating in the Deferred Retirement
17 Option Program is subject to termination as defined in s.
18 121.021 upon completion of his or her DROP participation period.
19 An elected official may defer termination as provided in
20 subsection (7).
21 (5) Any renewed member, as described in s. 121.122(1), (3),
22 (4), or (5) subsection (1) or subsection (2), who is not
23 receiving the maximum health insurance subsidy provided in s.
24 112.363 is entitled to earn additional credit toward the maximum
25 health insurance subsidy. Any additional subsidy due because of
26 such additional credit may be received only at the time of
27 payment of the second career retirement benefit. The total
28 health insurance subsidy received from initial and renewed
29 membership may not exceed the maximum allowed in s. 112.363.
30 Section 2. Paragraph (f) of subsection (1) and paragraph
31 (c) of subsection (6) of section 121.055, Florida Statutes, are
32 amended to read:
33 121.055 Senior Management Service Class.—There is hereby
34 established a separate class of membership within the Florida
35 Retirement System to be known as the “Senior Management Service
36 Class,” which shall become effective February 1, 1987.
37 (1)
38 (f) Effective July 1, 1997, through June 30, 2015:
39 1. Except as provided in subparagraphs subparagraph 3. and
40 4., an elected state officer eligible for membership in the
41 Elected Officers’ Class under s. 121.052(2)(a), (b), or (c) who
42 elects membership in the Senior Management Service Class under
43 s. 121.052(3)(c) may, within 6 months after assuming office or
44 within 6 months after this act becomes a law for serving elected
45 state officers, elect to participate in the Senior Management
46 Service Optional Annuity Program, as provided in subsection (6),
47 in lieu of membership in the Senior Management Service Class.
48 2. Except as provided in subparagraphs subparagraph 3. and
49 4., an elected officer of a local agency employer eligible for
50 membership in the Elected Officers’ Class under s. 121.052(2)(d)
51 who elects membership in the Senior Management Service Class
52 under s. 121.052(3)(c) may, within 6 months after assuming
53 office, or within 6 months after this act becomes a law for
54 serving elected officers of a local agency employer, elect to
55 withdraw from the Florida Retirement System, as provided in
56 subparagraph (b)2., in lieu of membership in the Senior
57 Management Service Class.
58 3. A retiree of a state-administered retirement system who
59 is initially reemployed in a regularly established position on
60 or after July 1, 2010, through December 31, 2014, as an elected
61 official eligible for the Elected Officers’ Class may not be
62 enrolled in renewed membership in the Senior Management Service
63 Class or in the Senior Management Service Optional Annuity
64 Program as provided in subsection (6), and may not withdraw from
65 the Florida Retirement System as a renewed member as provided in
66 subparagraph (b)2., as applicable, in lieu of membership in the
67 Senior Management Service Class. Effective January 1, 2015, a
68 retiree of the Senior Management Service Optional Annuity
69 Program who retired before July 1, 2010, and is reemployed in a
70 regularly established position with a covered employer shall be
71 enrolled as a renewed member as provided in s. 121.122.
72 4. On or after July 1, 2015, an elected officer eligible
73 for membership in the Elected Officers’ Class may not be
74 enrolled in the Senior Management Service Class or in the Senior
75 Management Service Optional Annuity Program as provided in
76 subsection (6).
77 (6)
78 (c) Participation.—
79 1. An eligible employee who is employed on or before
80 February 1, 1987, may elect to participate in the optional
81 annuity program in lieu of participating in the Senior
82 Management Service Class. Such election must be made in writing
83 and filed with the department and the personnel officer of the
84 employer on or before May 1, 1987. An eligible employee who is
85 employed on or before February 1, 1987, and who fails to make an
86 election to participate in the optional annuity program by May
87 1, 1987, shall be deemed to have elected membership in the
88 Senior Management Service Class.
89 2. Except as provided in subparagraph 6., an employee who
90 becomes eligible to participate in the optional annuity program
91 by reason of initial employment commencing after February 1,
92 1987, may, within 90 days after the date of commencing
93 employment, elect to participate in the optional annuity
94 program. Such election must be made in writing and filed with
95 the personnel officer of the employer. An eligible employee who
96 does not within 90 days after commencing employment elect to
97 participate in the optional annuity program shall be deemed to
98 have elected membership in the Senior Management Service Class.
99 3. A person who is appointed to a position in the Senior
100 Management Service Class and who is a member of an existing
101 retirement system or the Special Risk or Special Risk
102 Administrative Support Classes of the Florida Retirement System
103 may elect to remain in such system or class in lieu of
104 participating in the Senior Management Service Class or optional
105 annuity program. Such election must be made in writing and filed
106 with the department and the personnel officer of the employer
107 within 90 days after such appointment. An eligible employee who
108 fails to make an election to participate in the existing system,
109 the Special Risk Class of the Florida Retirement System, the
110 Special Risk Administrative Support Class of the Florida
111 Retirement System, or the optional annuity program shall be
112 deemed to have elected membership in the Senior Management
113 Service Class.
114 4. Except as provided in subparagraph 5., an employee’s
115 election to participate in the optional annuity program is
116 irrevocable if the employee continues to be employed in an
117 eligible position and continues to meet the eligibility
118 requirements set forth in this paragraph.
119 5. Effective from July 1, 2002, through September 30, 2002,
120 an active employee in a regularly established position who has
121 elected to participate in the Senior Management Service Optional
122 Annuity Program has one opportunity to choose to move from the
123 Senior Management Service Optional Annuity Program to the
124 Florida Retirement System Pension Plan.
125 a. The election must be made in writing and must be filed
126 with the department and the personnel officer of the employer
127 before October 1, 2002, or, in the case of an active employee
128 who is on a leave of absence on July 1, 2002, within 90 days
129 after the conclusion of the leave of absence. This election is
130 irrevocable.
131 b. The employee shall receive service credit under the
132 pension plan equal to his or her years of service under the
133 Senior Management Service Optional Annuity Program. The cost for
134 such credit is the amount representing the present value of that
135 employee’s accumulated benefit obligation for the affected
136 period of service.
137 c. The employee must transfer the total accumulated
138 employer contributions and earnings on deposit in his or her
139 Senior Management Service Optional Annuity Program account. If
140 the transferred amount is not sufficient to pay the amount due,
141 the employee must pay a sum representing the remainder of the
142 amount due. The employee may not retain any employer
143 contributions or earnings from the Senior Management Service
144 Optional Annuity Program account.
145 6. A retiree of a state-administered retirement system who
146 is initially reemployed on or after July 1, 2010, through
147 December 31, 2014, may not renew membership in the Senior
148 Management Service Optional Annuity Program. Effective January
149 1, 2015, a retiree of the Senior Management Service Optional
150 Annuity Program who retired before July 1, 2010, and is
151 reemployed in a regularly established position with a covered
152 employer shall be enrolled as a renewed member as provided in s.
153 121.122.
154 7. Effective July 1, 2015, the Senior Management Service
155 Optional Annuity Program is closed to new members. Members
156 enrolled in the Senior Management Service Optional Annuity
157 Program before July 1, 2015, may retain their membership in the
158 annuity program.
159 Section 3. Paragraph (a) of subsection (4) of section
160 121.091, Florida Statutes, is amended to read:
161 121.091 Benefits payable under the system.—Benefits may not
162 be paid under this section unless the member has terminated
163 employment as provided in s. 121.021(39)(a) or begun
164 participation in the Deferred Retirement Option Program as
165 provided in subsection (13), and a proper application has been
166 filed in the manner prescribed by the department. The department
167 may cancel an application for retirement benefits when the
168 member or beneficiary fails to timely provide the information
169 and documents required by this chapter and the department’s
170 rules. The department shall adopt rules establishing procedures
171 for application for retirement benefits and for the cancellation
172 of such application when the required information or documents
173 are not received.
174 (4) DISABILITY RETIREMENT BENEFIT.—
175 (a) Disability retirement; entitlement and effective date.—
176 1.a. A member who becomes totally and permanently disabled,
177 as defined in paragraph (b), after completing 5 years of
178 creditable service, or a member who becomes totally and
179 permanently disabled in the line of duty regardless of service,
180 is entitled to a monthly disability benefit,; except that any
181 member with less than 5 years of creditable service on July 1,
182 1980, or any person who becomes a member of the Florida
183 Retirement System on or after such date must have completed 10
184 years of creditable service before becoming totally and
185 permanently disabled in order to receive disability retirement
186 benefits for a any disability that which occurs other than in
187 the line of duty. However, if a member employed on July 1, 1980,
188 who has less than 5 years of creditable service as of that date
189 becomes totally and permanently disabled after completing 5
190 years of creditable service and is found not to have attained
191 fully insured status for benefits under the federal Social
192 Security Act, such member is entitled to a monthly disability
193 benefit.
194 b. Effective July 1, 2001, a member of the pension plan
195 initially enrolled before July 1, 2015, who becomes totally and
196 permanently disabled, as defined in paragraph (b), after
197 completing 8 years of creditable service, or a member who
198 becomes totally and permanently disabled in the line of duty
199 regardless of service, is entitled to a monthly disability
200 benefit.
201 c. Effective July 1, 2015, a member of the pension plan
202 initially enrolled on or after July 1, 2015, who becomes totally
203 and permanently disabled, as defined in paragraph (b), after
204 completing 10 years of creditable service, or a member who
205 becomes totally and permanently disabled in the line of duty
206 regardless of service, is entitled to a monthly disability
207 benefit.
208 2. If the division has received from the employer the
209 required documentation of the member’s termination of employment
210 from the employer, the effective retirement date for a member
211 who applies and is approved for disability retirement shall be
212 as established by rule of the division.
213 3. For a member who is receiving Workers’ Compensation
214 payments, the effective disability retirement date may not
215 precede the date the member reaches Maximum Medical Improvement
216 (MMI), unless the member terminates employment before reaching
217 MMI.
218 Section 4. Subsection (2) of section 121.122, Florida
219 Statutes, is amended, and subsections (3), (4), and (5) are
220 added to that section, to read:
221 121.122 Renewed membership in system.—
222 (2) Except as otherwise provided in subsections (3)-(5), a
223 retiree of a state-administered retirement system who is
224 initially reemployed in a regularly established position on or
225 after July 1, 2010, may not be enrolled as a renewed member.
226 (3) A retiree of the investment plan, the State University
227 System Optional Retirement Program, the Senior Management
228 Service Optional Annuity Program, or the State Community College
229 System Optional Retirement Program who retired before July 1,
230 2010, and is employed in a regularly established position with a
231 covered employer on or after January 1, 2015, shall be a renewed
232 member of the Regular Class of the investment plan regardless of
233 the position held, unless employed in a position eligible for
234 participation in the State University System Optional Retirement
235 Program or the State Community College System Optional
236 Retirement Program as provided in subsections (4) and (5),
237 respectively. The renewed member must satisfy the vesting
238 requirements and other provisions of this chapter.
239 (a) Creditable service, including credit toward the retiree
240 health insurance subsidy provided in s. 112.363, does not accrue
241 for a retiree’s employment in a regularly established position
242 with a covered employer from July 1, 2010, through December 31,
243 2014.
244 (b) Employer and employee contributions, interest,
245 earnings, or any other funds may not be paid into a renewed
246 member’s investment plan account for any employment in a
247 regularly established position with a covered employer from July
248 1, 2010, through December 31, 2014, by the renewed member or the
249 employer on behalf of the member.
250 (c) To be eligible to receive a retirement benefit, the
251 renewed member must satisfy the vesting requirements in s.
252 121.4501(6).
253 (d) The member is ineligible to receive disability benefits
254 as provided in s. 121.091(4) or s. 121.591(2).
255 (e) The member is subject to the reemployment after
256 retirement limitations provided in s. 121.091(9), as applicable.
257 (f) The member must satisfy the requirements for
258 termination from employment provided in s. 121.021(39).
259 (g) Upon the renewed membership or reemployment of a
260 retiree, the employer and the retiree shall pay the applicable
261 employer and employee contributions required under ss. 112.363,
262 121.71, 121.74, and 121.76. The contributions are payable only
263 for employment and salary earned in a regularly established
264 position with a covered employer on or after January 1, 2015.
265 The employer and employee contributions shall be transferred to
266 the investment plan and placed in a default fund as designated
267 by the state board. The retiree may move the contributions once
268 an account is activated in the investment plan.
269 (h) The member may not purchase any past service in the
270 investment plan, including employment in a regularly established
271 position with a covered employer from July 1, 2010, through
272 December 31, 2014.
273 (i) A renewed member who is a retiree of the investment
274 plan and who is not receiving the maximum health insurance
275 subsidy provided in s. 112.363 is entitled to earn additional
276 credit toward the subsidy. Such credit may be earned only for
277 employment in a regularly established position with a covered
278 employer on or after January 1, 2015. Any additional subsidy due
279 because of additional credit may be received only at the time of
280 paying the second career retirement benefit. The total health
281 insurance subsidy received by a retiree receiving benefits from
282 initial and renewed membership may not exceed the maximum
283 allowed under s. 112.363.
284 (4) A retiree of the investment plan, the State University
285 System Optional Retirement Program, the Senior Management
286 Service Optional Annuity Program, or the State Community College
287 System Optional Retirement Program who retired before July 1,
288 2010, and is employed in a regularly established position
289 eligible for participation in the State University System
290 Optional Retirement Program on or after January 1, 2015, shall
291 become a renewed member of the optional retirement program. The
292 renewed member must satisfy the vesting requirements and other
293 provisions of this chapter. Once enrolled, a renewed member
294 remains enrolled in the optional retirement program while
295 employed in an eligible position for the optional retirement
296 program. If employment in a different covered position results
297 in the retiree’s enrollment in the investment plan, the retiree
298 is no longer eligible to participate in the optional retirement
299 program unless employed in a mandatory position under s. 121.35.
300 (a) The member is subject to the reemployment after
301 retirement limitations provided in s. 121.091(9), as applicable.
302 (b) The member must satisfy the requirements for
303 termination of employment provided in s. 121.021(39).
304 (c) Upon renewed membership or reemployment of a retiree,
305 the employer and the retiree shall pay the applicable employer
306 and employee contributions required under s. 121.35.
307 (d) The member, or the employer on behalf of the member,
308 may not purchase any prior service in the optional retirement
309 program or employment from July 1, 2010, to December 31, 2014,
310 when renewed membership is not available.
311 (5) A retiree of the investment plan, the State University
312 System Optional Retirement Program, the Senior Management
313 Service System Optional Annuity Program, or the State Community
314 College System Optional Retirement Program who retired before
315 July 1, 2010, and is employed in a regularly established
316 position eligible for participation in the State Community
317 College System Optional Retirement Program as provided in s.
318 121.051(2)(c)4. on or after January 1, 2015, shall become a
319 renewed member of the optional retirement program. The renewed
320 member must satisfy the eligibility requirements of this chapter
321 and s. 1012.875 for the optional retirement program. Once
322 enrolled, a renewed member remains enrolled in the optional
323 retirement program while employed in an eligible position for
324 the optional retirement program. If employment in a different
325 covered position results in the retiree’s enrollment in the
326 investment plan, the retiree is no longer eligible to
327 participate in the optional retirement program.
328 (a) The member is subject to the reemployment after
329 retirement limitations provided in s. 121.091(9), as applicable.
330 (b) The member must satisfy the requirements for
331 termination of employment provided in s. 121.021(39).
332 (c) Upon renewed membership or reemployment of a retiree,
333 the employer and the retiree shall pay the applicable employer
334 and employee contributions required under ss. 121.051(2)(c) and
335 1012.875.
336 (d) The member, or the employer on behalf of the member,
337 may not purchase any past service in the optional retirement
338 program or employment accrued from July 1, 2010, to December 31,
339 2014.
340 Section 5. Paragraph (c) of subsection (3) and paragraph
341 (a) of subsection (4) of section 121.35, Florida Statutes, are
342 amended to read:
343 121.35 Optional retirement program for the State University
344 System.—
345 (3) ELECTION OF OPTIONAL PROGRAM.—
346 (c) Any employee who becomes eligible to participate in the
347 optional retirement program on or after January 1, 1993, shall
348 be a compulsory participant of the program unless such employee
349 elects membership in the Florida Retirement System. Such
350 election shall be made in writing and filed with the personnel
351 officer of the employer. Any eligible employee who fails to make
352 such election within the prescribed time period shall be deemed
353 to have elected to participate in the optional retirement
354 program.
355 1. Any employee whose optional retirement program
356 eligibility results from initial employment shall be enrolled in
357 the program at the commencement of employment. If, within 90
358 days after commencement of employment, the employee elects
359 membership in the Florida Retirement System, such membership
360 shall be effective retroactive to the date of commencement of
361 employment as provided in s. 121.4501(4).
362 2. Any employee whose optional retirement program
363 eligibility results from a change in status due to the
364 subsequent designation of the employee’s position as one of
365 those specified in paragraph (2)(a) or due to the employee’s
366 appointment, promotion, transfer, or reclassification to a
367 position specified in paragraph (2)(a) shall be enrolled in the
368 optional retirement program upon such change in status and shall
369 be notified by the employer of such action. If, within 90 days
370 after the date of such notification, the employee elects to
371 retain membership in the Florida Retirement System, such
372 continuation of membership shall be retroactive to the date of
373 the change in status.
374 3. Notwithstanding the provisions of this paragraph,
375 effective July 1, 1997, an any employee who is eligible to
376 participate in the Optional Retirement Program and who fails to
377 execute a contract with one of the approved companies and to
378 notify the department in writing as provided in subsection (4)
379 within 90 days after the date of eligibility shall be deemed to
380 have elected membership in the Florida Retirement System, except
381 as provided in s. 121.051(1)(a). This provision shall also
382 applies apply to an any employee who terminates employment in an
383 eligible position before executing the required investment
384 annuity contract and notifying the department. Such membership
385 is shall be retroactive to the date of eligibility, and all
386 appropriate contributions shall be transferred to the Florida
387 Retirement System Trust Fund and the Health Insurance Subsidy
388 Trust Fund.
389 (4) CONTRIBUTIONS.—
390 (a)1. Through June 30, 2001, each employer shall contribute
391 on behalf of each member of the optional retirement program an
392 amount equal to the normal cost portion of the employer
393 retirement contribution which would be required if the employee
394 were a regular member of the Florida Retirement System Pension
395 Plan, plus the portion of the contribution rate required in s.
396 112.363(8) which that would otherwise be assigned to the Retiree
397 Health Insurance Subsidy Trust Fund.
398 2. Effective July 1, 2001, through June 30, 2011, each
399 employer shall contribute on behalf of each member of the
400 optional retirement program an amount equal to 10.43 percent of
401 the employee’s gross monthly compensation.
402 3. Effective July 1, 2011, through June 30, 2012, each
403 member of the optional retirement program shall contribute an
404 amount equal to the employee contribution required in s.
405 121.71(3)(a). The employer shall contribute on behalf of each
406 such member an amount equal to the difference between 10.43
407 percent of the employee’s gross monthly compensation and the
408 amount equal to the employee’s required contribution based on
409 the employee’s gross monthly compensation.
410 4. Effective July 1, 2012, each member of the optional
411 retirement program shall contribute an amount equal to the
412 employee contribution required in s. 121.71(3)(a). The employer
413 shall contribute on behalf of each such member an amount equal
414 to the difference between 8.15 percent of the employee’s gross
415 monthly compensation and the amount equal to the employee’s
416 required contribution based on the employee’s gross monthly
417 compensation.
418 5. The payment of the contributions, including
419 contributions by the employee, shall be made by the employer to
420 the department, which shall forward the contributions to the
421 designated company or companies contracting for payment of
422 benefits for members of the program. However, such contributions
423 paid on behalf of an employee described in paragraph (3)(c) may
424 not be forwarded to a company and do not begin to accrue
425 interest until the employee has executed a contract and notified
426 the department. The department shall deduct an amount from the
427 contributions to provide for the administration of this program.
428 Section 6. Subsection (1), paragraphs (e) and (i) of
429 subsection (2), paragraph (b) of subsection (3), subsection (4),
430 paragraph (c) of subsection (5), subsection (8), and paragraphs
431 (a), (b), (c), and (h) of subsection (10) of section 121.4501,
432 Florida Statutes, are amended to read:
433 121.4501 Florida Retirement System Investment Plan.—
434 (1) The Trustees of the State Board of Administration shall
435 establish a defined contribution program called the “Florida
436 Retirement System Investment Plan” or “investment plan” for
437 members of the Florida Retirement System under which retirement
438 benefits will be provided for eligible employees who elect to
439 participate in the program and for employees initially enrolled
440 on or after July 1, 2015, in positions covered by the Elected
441 Officers’ Class or the Senior Management Service Class and who
442 are compulsory members of the investment plan unless otherwise
443 eligible to withdraw from the system under s. 121.052(3)(d) or
444 s. 121.055(1)(b)2., or to participate in an optional retirement
445 program under s. 121.051(1)(a), s. 121.051(2)(c), or s. 121.35.
446 Investment plan membership continues if there is subsequent
447 employment in a position covered by another membership class.
448 The retirement benefits shall be provided through member
449 directed investments, in accordance with s. 401(a) of the
450 Internal Revenue Code and related regulations. The employer and
451 employee shall make contributions, as provided in this section
452 and ss. 121.571 and 121.71, to the Florida Retirement System
453 Investment Plan Trust Fund toward the funding of benefits.
454 (2) DEFINITIONS.—As used in this part, the term:
455 (e) “Eligible employee” means an officer or employee, as
456 defined in s. 121.021, who:
457 1. Is a member of, or is eligible for membership in, the
458 Florida Retirement System, including any renewed member of the
459 Florida Retirement System initially enrolled before July 1,
460 2010; or
461 2. Participates in, or is eligible to participate in, the
462 Senior Management Service Optional Annuity Program as
463 established under s. 121.055(6), the State Community College
464 System Optional Retirement Program as established under s.
465 121.051(2)(c), or the State University System Optional
466 Retirement Program established under s. 121.35; or
467 3. Is a retired member of the investment plan, the State
468 University System Optional Retirement Program, the Senior
469 Management Service Optional Annuity Program, or the State
470 Community College System Optional Retirement Program who retired
471 before July 1, 2010 and is employed in a regularly established
472 position on or after January 1, 2015, as provided in s. 121.122.
473
474 The term does not include any member participating in the
475 Deferred Retirement Option Program established under s.
476 121.091(13), a retiree of a state-administered retirement system
477 who retired initially reemployed in a regularly established
478 position on or after July 1, 2010, or a mandatory participant of
479 the State University System Optional Retirement Program
480 established under s. 121.35.
481 (i) “Member” or “employee” means an eligible employee who
482 enrolls in or is defaulted into the investment plan as provided
483 in subsection (4), a terminated Deferred Retirement Option
484 Program member as described in subsection (21), or a beneficiary
485 or alternate payee of a member or employee.
486 (3) RETIREMENT SERVICE CREDIT; TRANSFER OF BENEFITS.—
487 (b) Notwithstanding paragraph (a), an eligible employee who
488 elects to participate in or is defaulted into the investment
489 plan and establishes one or more individual member accounts may
490 elect to transfer to the investment plan a sum representing the
491 present value of the employee’s accumulated benefit obligation
492 under the pension plan, except as provided in paragraph (4)(b).
493 Upon transfer, all service credit earned under the pension plan
494 is nullified for purposes of entitlement to a future benefit
495 under the pension plan. A member may not transfer the
496 accumulated benefit obligation balance from the pension plan
497 after the time period for enrolling in the investment plan has
498 expired.
499 1. For purposes of this subsection, the present value of
500 the member’s accumulated benefit obligation is based upon the
501 member’s estimated creditable service and estimated average
502 final compensation under the pension plan, subject to
503 recomputation under subparagraph 2. For state employees, initial
504 estimates shall be based upon creditable service and average
505 final compensation as of midnight on June 30, 2002; for district
506 school board employees, initial estimates shall be based upon
507 creditable service and average final compensation as of midnight
508 on September 30, 2002; and for local government employees,
509 initial estimates shall be based upon creditable service and
510 average final compensation as of midnight on December 31, 2002.
511 The dates specified are the “estimate date” for these employees.
512 The actuarial present value of the employee’s accumulated
513 benefit obligation shall be based on the following:
514 a. The discount rate and other relevant actuarial
515 assumptions used to value the Florida Retirement System Trust
516 Fund at the time the amount to be transferred is determined,
517 consistent with the factors provided in sub-subparagraphs b. and
518 c.
519 b. A benefit commencement age, based on the member’s
520 estimated creditable service as of the estimate date.
521 c. Except as provided under sub-subparagraph d., for a
522 member initially enrolled:
523 (I) Before July 1, 2011, the benefit commencement age is
524 the younger of the following, but may not be younger than the
525 member’s age as of the estimate date:
526 (A) Age 62; or
527 (B) The age the member would attain if the member completed
528 30 years of service with an employer, assuming the member worked
529 continuously from the estimate date, and disregarding any
530 vesting requirement that would otherwise apply under the pension
531 plan.
532 (II) On or after July 1, 2011, the benefit commencement age
533 is the younger of the following, but may not be younger than the
534 member’s age as of the estimate date:
535 (A) Age 65; or
536 (B) The age the member would attain if the member completed
537 33 years of service with an employer, assuming the member worked
538 continuously from the estimate date, and disregarding any
539 vesting requirement that would otherwise apply under the pension
540 plan.
541 d. For members of the Special Risk Class and for members of
542 the Special Risk Administrative Support Class entitled to retain
543 the special risk normal retirement date:
544 (I) Initially enrolled before July 1, 2011, the benefit
545 commencement age is the younger of the following, but may not be
546 younger than the member’s age as of the estimate date:
547 (A) Age 55; or
548 (B) The age the member would attain if the member completed
549 25 years of service with an employer, assuming the member worked
550 continuously from the estimate date, and disregarding any
551 vesting requirement that would otherwise apply under the pension
552 plan.
553 (II) Initially enrolled on or after July 1, 2011, the
554 benefit commencement age is the younger of the following, but
555 may not be younger than the member’s age as of the estimate
556 date:
557 (A) Age 60; or
558 (B) The age the member would attain if the member completed
559 30 years of service with an employer, assuming the member worked
560 continuously from the estimate date, and disregarding any
561 vesting requirement that would otherwise apply under the pension
562 plan.
563 e. The calculation must disregard vesting requirements and
564 early retirement reduction factors that would otherwise apply
565 under the pension plan.
566 2. For each member who elects to transfer moneys from the
567 pension plan to his or her account in the investment plan, the
568 division shall recompute the amount transferred under
569 subparagraph 1. within 60 days after the actual transfer of
570 funds based upon the member’s actual creditable service and
571 actual final average compensation as of the initial date of
572 participation in the investment plan. If the recomputed amount
573 differs from the amount transferred by $10 or more, the division
574 shall:
575 a. Transfer, or cause to be transferred, from the Florida
576 Retirement System Trust Fund to the member’s account the excess,
577 if any, of the recomputed amount over the previously transferred
578 amount together with interest from the initial date of transfer
579 to the date of transfer under this subparagraph, based upon the
580 effective annual interest equal to the assumed return on the
581 actuarial investment which was used in the most recent actuarial
582 valuation of the system, compounded annually.
583 b. Transfer, or cause to be transferred, from the member’s
584 account to the Florida Retirement System Trust Fund the excess,
585 if any, of the previously transferred amount over the recomputed
586 amount, together with interest from the initial date of transfer
587 to the date of transfer under this subparagraph, based upon 6
588 percent effective annual interest, compounded annually, pro rata
589 based on the member’s allocation plan.
590 3. If contribution adjustments are made as a result of
591 employer errors or corrections, including plan corrections,
592 following recomputation of the amount transferred under
593 subparagraph 1., the member is entitled to the additional
594 contributions or is responsible for returning any excess
595 contributions resulting from the correction. However, a any
596 return of such erroneous excess pretax contribution by the plan
597 must be made within the period allowed by the Internal Revenue
598 Service. The present value of the member’s accumulated benefit
599 obligation may shall not be recalculated.
600 4. As directed by the member, the state board shall
601 transfer or cause to be transferred the appropriate amounts to
602 the designated accounts within 30 days after the effective date
603 of the member’s participation in the investment plan unless the
604 major financial markets for securities available for a transfer
605 are seriously disrupted by an unforeseen event that causes the
606 suspension of trading on a any national securities exchange in
607 the country where the securities were issued. In that event, the
608 30-day period may be extended by a resolution of the state
609 board. Transfers are not commissionable or subject to other fees
610 and may be in the form of securities or cash, as determined by
611 the state board. Such securities are valued as of the date of
612 receipt in the member’s account.
613 5. If the state board or the division receives notification
614 from the United States Internal Revenue Service that this
615 paragraph or any portion of this paragraph will cause the
616 retirement system, or a portion thereof, to be disqualified for
617 tax purposes under the Internal Revenue Code, the portion that
618 will cause the disqualification does not apply. Upon such
619 notice, the state board and the division shall notify the
620 presiding officers of the Legislature.
621 (4) PARTICIPATION; ENROLLMENT.—
622 (a)1. Effective June 1, 2002, through February 28, 2003, a
623 90-day election period, preceded by a 90-day education period,
624 was provided to each eligible employee participating in the
625 Florida Retirement System which permitted each eligible employee
626 to elect membership in the investment plan, and an employee who
627 failed to elect the investment plan during the election period
628 remained in the pension plan. An eligible employee who was
629 employed in a regularly established position during the election
630 period was granted the option to make one subsequent election,
631 as provided in paragraph (f). With respect to an eligible
632 employee who did not participate in the initial election period
633 or who is initially employee who is employed in a regularly
634 established position after the close of the initial election
635 period but before July 1, 2015, on June 1, 2002, by a state
636 employer:
637 a. Any such employee may elect to participate in the
638 investment plan in lieu of retaining his or her membership in
639 the pension plan. The election must be made in writing or by
640 electronic means and must be filed with the third-party
641 administrator by August 31, 2002, or, in the case of an active
642 employee who is on a leave of absence on April 1, 2002, by the
643 last business day of the 5th month following the month the leave
644 of absence concludes. This election is irrevocable, except as
645 provided in paragraph (g). Upon making such election, the
646 employee shall be enrolled as a member of the investment plan,
647 the employee’s membership in the Florida Retirement System is
648 governed by the provisions of this part, and the employee’s
649 membership in the pension plan terminates. The employee’s
650 enrollment in the investment plan is effective the first day of
651 the month for which a full month’s employer contribution is made
652 to the investment plan.
653 b. Any such employee who fails to elect to participate in
654 the investment plan within the prescribed time period is deemed
655 to have elected to retain membership in the pension plan, and
656 the employee’s option to elect to participate in the investment
657 plan is forfeited.
658 2. With respect to employees who become eligible to
659 participate in the investment plan by reason of employment in a
660 regularly established position with a state employer commencing
661 after April 1, 2002:
662 a. Any such employee shall, by default, be enrolled in the
663 pension plan at the commencement of employment, and may, by the
664 last business day of the 5th month following the employee’s
665 month of hire, elect to participate in the investment plan. The
666 employee’s election must be made in writing or by electronic
667 means and must be filed with the third-party administrator. The
668 election to participate in the investment plan is irrevocable,
669 except as provided in paragraph (f)(g).
670 a.b. If the employee files such election within the
671 prescribed time period, enrollment in the investment plan is
672 effective on the first day of employment. The retirement
673 contributions paid through the month of the employee plan change
674 shall be transferred to the investment program, and, effective
675 the first day of the next month, the employer and employee must
676 pay the applicable contributions based on the employee
677 membership class in the program.
678 b.c. An employee who fails to elect to participate in the
679 investment plan within the prescribed time period is deemed to
680 have elected to retain membership in the pension plan, and the
681 employee’s option to elect to participate in the investment plan
682 is forfeited.
683 2.3. With respect to employees who become eligible to
684 participate in the investment plan pursuant to s.
685 121.051(2)(c)3. or s. 121.35(3)(i), the employee may elect to
686 participate in the investment plan in lieu of retaining his or
687 her membership in the State Community College System Optional
688 Retirement Program or the State University System Optional
689 Retirement Program. The election must be made in writing or by
690 electronic means and must be filed with the third-party
691 administrator. This election is irrevocable, except as provided
692 in paragraph (f)(g). Upon making such election, the employee
693 shall be enrolled as a member in the investment plan, the
694 employee’s membership in the Florida Retirement System is
695 governed by the provisions of this part, and the employee’s
696 participation in the State Community College System Optional
697 Retirement Program or the State University System Optional
698 Retirement Program terminates. The employee’s enrollment in the
699 investment plan is effective on the first day of the month for
700 which a full month’s employer and employee contribution is made
701 to the investment plan.
702 4. For purposes of this paragraph, “state employer” means
703 any agency, board, branch, commission, community college,
704 department, institution, institution of higher education, or
705 water management district of the state, which participates in
706 the Florida Retirement System for the benefit of certain
707 employees.
708 (b) With respect to employees who become eligible to
709 participate in the investment plan, except as provided in
710 paragraph (g), by reason of employment in a regularly
711 established position commencing on or after July 1, 2015, such
712 employee shall be enrolled in the pension plan at the
713 commencement of employment and may, by the last business day of
714 the 8th month following the employee’s month of hire, elect to
715 participate in the pension plan or the investment plan. Eligible
716 employees may make a plan election only if they are earning
717 service credit in an employer-employee relationship consistent
718 with s. 121.021(17)(b), excluding leaves of absence without pay.
719 1. The employee’s election must be in writing or by
720 electronic means and must be filed with the third-party
721 administrator. The election to participate in the pension plan
722 or investment plan is irrevocable, except as provided in
723 paragraph (f).
724 2. If the employee fails to make an election of the pension
725 plan or investment plan within 8 months following the month of
726 hire, the employee is deemed to have elected the investment plan
727 and will be defaulted into the investment plan retroactively to
728 the employee’s date of employment. The employee’s option to
729 participate in the pension plan is forfeited, except as provided
730 in paragraph (f).
731 3. The amount of the employee and employer contributions
732 paid before the default to the investment plan shall be
733 transferred to the investment plan and placed in a default fund
734 as designated by the State Board of Administration. The employee
735 may move the contributions once an account is activated in the
736 investment plan.
737 4. Effective the first day of the month after an eligible
738 employee makes a plan election of the pension plan or investment
739 plan, or after the month of default to the investment plan, the
740 employee and employer shall pay the applicable contributions
741 based on the employee membership class in the pension plan or
742 investment plan.
743 (b)1. With respect to an eligible employee who is employed
744 in a regularly established position on September 1, 2002, by a
745 district school board employer:
746 a. Any such employee may elect to participate in the
747 investment plan in lieu of retaining his or her membership in
748 the pension plan. The election must be made in writing or by
749 electronic means and must be filed with the third-party
750 administrator by November 30, or, in the case of an active
751 employee who is on a leave of absence on July 1, 2002, by the
752 last business day of the 5th month following the month the leave
753 of absence concludes. This election is irrevocable, except as
754 provided in paragraph (g). Upon making such election, the
755 employee shall be enrolled as a member of the investment plan,
756 the employee’s membership in the Florida Retirement System is
757 governed by the provisions of this part, and the employee’s
758 membership in the pension plan terminates. The employee’s
759 enrollment in the investment plan is effective the first day of
760 the month for which a full month’s employer contribution is made
761 to the investment program.
762 b. Any such employee who fails to elect to participate in
763 the investment plan within the prescribed time period is deemed
764 to have elected to retain membership in the pension plan, and
765 the employee’s option to elect to participate in the investment
766 plan is forfeited.
767 2. With respect to employees who become eligible to
768 participate in the investment plan by reason of employment in a
769 regularly established position with a district school board
770 employer commencing after July 1, 2002:
771 a. Any such employee shall, by default, be enrolled in the
772 pension plan at the commencement of employment, and may, by the
773 last business day of the 5th month following the employee’s
774 month of hire, elect to participate in the investment plan. The
775 employee’s election must be made in writing or by electronic
776 means and must be filed with the third-party administrator. The
777 election to participate in the investment plan is irrevocable,
778 except as provided in paragraph (g).
779 b. If the employee files such election within the
780 prescribed time period, enrollment in the investment plan is
781 effective on the first day of employment. The employer
782 retirement contributions paid through the month of the employee
783 plan change shall be transferred to the investment plan, and,
784 effective the first day of the next month, the employer shall
785 pay the applicable contributions based on the employee
786 membership class in the investment plan.
787 c. Any such employee who fails to elect to participate in
788 the investment plan within the prescribed time period is deemed
789 to have elected to retain membership in the pension plan, and
790 the employee’s option to elect to participate in the investment
791 plan is forfeited.
792 3. For purposes of this paragraph, “district school board
793 employer” means any district school board that participates in
794 the Florida Retirement System for the benefit of certain
795 employees, or a charter school or charter technical career
796 center that participates in the Florida Retirement System as
797 provided in s. 121.051(2)(d).
798 (c)1. With respect to an eligible employee who is employed
799 in a regularly established position on December 1, 2002, by a
800 local employer:
801 a. Any such employee may elect to participate in the
802 investment plan in lieu of retaining his or her membership in
803 the pension plan. The election must be made in writing or by
804 electronic means and must be filed with the third-party
805 administrator by February 28, 2003, or, in the case of an active
806 employee who is on a leave of absence on October 1, 2002, by the
807 last business day of the 5th month following the month the leave
808 of absence concludes. This election is irrevocable, except as
809 provided in paragraph (g). Upon making such election, the
810 employee shall be enrolled as a participant of the investment
811 plan, the employee’s membership in the Florida Retirement System
812 is governed by the provisions of this part, and the employee’s
813 membership in the pension plan terminates. The employee’s
814 enrollment in the investment plan is effective the first day of
815 the month for which a full month’s employer contribution is made
816 to the investment plan.
817 b. Any such employee who fails to elect to participate in
818 the investment plan within the prescribed time period is deemed
819 to have elected to retain membership in the pension plan, and
820 the employee’s option to elect to participate in the investment
821 plan is forfeited.
822 2. With respect to employees who become eligible to
823 participate in the investment plan by reason of employment in a
824 regularly established position with a local employer commencing
825 after October 1, 2002:
826 a. Any such employee shall, by default, be enrolled in the
827 pension plan at the commencement of employment, and may, by the
828 last business day of the 5th month following the employee’s
829 month of hire, elect to participate in the investment plan. The
830 employee’s election must be made in writing or by electronic
831 means and must be filed with the third-party administrator. The
832 election to participate in the investment plan is irrevocable,
833 except as provided in paragraph (g).
834 b. If the employee files such election within the
835 prescribed time period, enrollment in the investment plan is
836 effective on the first day of employment. The employer
837 retirement contributions paid through the month of the employee
838 plan change shall be transferred to the investment plan, and,
839 effective the first day of the next month, the employer shall
840 pay the applicable contributions based on the employee
841 membership class in the investment plan.
842 c. Any such employee who fails to elect to participate in
843 the investment plan within the prescribed time period is deemed
844 to have elected to retain membership in the pension plan, and
845 the employee’s option to elect to participate in the investment
846 plan is forfeited.
847 3. For purposes of this paragraph, “local employer” means
848 any employer not included in paragraph (a) or paragraph (b).
849 (c)(d) Contributions available for self-direction by a
850 member who has not selected one or more specific investment
851 products shall be allocated as prescribed by the state board.
852 The third-party administrator shall notify the member at least
853 quarterly that the member should take an affirmative action to
854 make an asset allocation among the investment products.
855 (d)(e) On or after July 1, 2011, a member of the pension
856 plan who obtains a refund of employee contributions retains his
857 or her prior plan choice upon return to employment in a
858 regularly established position with a participating employer.
859 (e)(f) A member of the investment plan who takes a
860 distribution of any contributions from his or her investment
861 plan account is considered a retiree. A member retiree who
862 retires is initially reemployed in a regularly established
863 position on or after July 1, 2010, is not eligible to be
864 enrolled in renewed membership. A member who retired before July
865 1, 2010, and is employed on or after January 1, 2015, in a
866 regularly established position shall be a renewed member as
867 provided in s. 121.122, except that a retiree who has returned
868 to covered employment before July 1, 2010, may continue
869 membership in the plan he or she chooses.
870
871 ================= T I T L E A M E N D M E N T ================
872 And the title is amended as follows:
873 Delete lines 16 - 45
874 and insert:
875 date; amending s. 121.053, F.S.; authorizing renewed
876 membership in the retirement system for retirees who
877 are reemployed in a position eligible for the Elected
878 Officers’ Class under certain circumstances; amending
879 s. 121.055, F.S.; authorizing renewed membership in
880 the retirement system for retirees of the Senior
881 Management Service Optional Annuity Program who are
882 reemployed on or after a specified date; prohibiting
883 an elected official eligible for membership in the
884 Elected Officers’ Class from enrolling in the Senior
885 Management Service Class or in the Senior Management
886 Service Optional Annuity Program; closing the Senior
887 Management Optional Annuity Program to new members
888 after a specified date; amending s. 121.091, F.S.;
889 providing that certain members are entitled to a
890 monthly disability benefit; revising provisions to
891 conform to changes made by the act; amending s.
892 121.122, F.S.; requiring that certain retirees who are
893 employed on or after a specified date be renewed
894 members in the investment plan; providing exceptions;
895 providing that creditable service does not accrue for
896 a reemployed retiree during a specified period;
897 prohibiting certain funds from being paid into a
898 renewed member’s investment plan account for a
899 specified period of employment; requiring the renewed
900 member to satisfy vesting requirements; prohibiting a
901 renewed member from receiving disability benefits;
902 specifying requirements and limitations; requiring the
903 employer and the retiree to make applicable
904 contributions to the member’s investment plan account;
905 providing for the administration of the employer and
906 employee contributions; prohibiting the purchase of
907 past service in the investment plan; authorizing a
908 renewed member to receive additional credit toward the
909 health insurance subsidy under certain circumstances;
910 providing that a retiree employed on or after a
911 specified date in a regularly established position
912 eligible for the State University System Optional
913 Retirement Program is a renewed member of that
914 program; specifying requirements and limitations;
915 requiring the employer and the retiree to make
916 applicable contributions; prohibiting the purchase of
917 past service in the program; providing that a retiree
918 employed on or after a specified date in a regularly
919 established position eligible for the State Community
920 College System Optional Retirement Program is a
921 renewed member of that program; specifying
922 requirements and limitations; requiring the employer
923 and the retiree to make applicable contributions;
924 prohibiting the purchase of past service in the
925 program; amending s. 121.35, F.S.; providing that
926 certain participants in the optional retirement
927 program for the State University System have a choice
928 between the optional retirement program and the
929 Florida Retirement System Investment Plan; conforming
930 cross-references; amending s. 121.4501, F.S.;
931 requiring certain employees initially enrolled in the
932 Florida Retirement System on or after a specified date
933 to be compulsory members of the investment plan;
934 revising the definition of “eligible employee” and
935 “member” or “employee”; revising a provision relating
936 to acknowledgement of an employee’s election to
937 participate in the investment plan; placing certain
938 employees in the pension plan from his or her date of
939 hire until they are automatically enrolled in the
940 investment plan or timely elect enrollment in the
941 pension plan; authorizing certain employees to elect
942 to participate in the pension plan, rather than the
943 default investment plan, within a specified time;
944 specifying that a retiree who has returned to covered
945 employment before a specified date may continue
946 membership in his or her selected retirement plan;
947 conforming a provision to changes made by the act;