Florida Senate - 2017                        COMMITTEE AMENDMENT
       Bill No. SB 428
       
       
       
       
       
       
                                Ì129532$Î129532                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: WD            .                                
                  03/07/2017           .                                
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       The Committee on Community Affairs (Brandes) recommended the
       following:
       
    1         Senate Substitute for Amendment (153682) (with title
    2  amendment)
    3  
    4         Delete everything after the enacting clause
    5  and insert:
    6         Section 1. Present subsections (3) through (9) of section
    7  121.051, Florida Statutes, are redesignated as subsections (4)
    8  through (10), respectively, and a new subsection (3) is added to
    9  that section, to read:
   10         121.051 Participation in the system.—
   11         (3) INVESTMENT PLAN MEMBERSHIP COMPULSORY.—
   12         (a) Employees initially enrolled on or after January 1,
   13  2017, in positions covered by the Elected Officers’ Class or the
   14  Senior Management Service Class are compulsory members of the
   15  investment plan, except those eligible to withdraw from the
   16  system under s. 121.052(3)(d) or s. 121.055(1)(b)2., or those
   17  eligible for optional retirement programs under paragraph
   18  (1)(a), paragraph (2)(c), or s. 121.35. Investment plan
   19  membership continues if there is subsequent employment in a
   20  position covered by another membership class. Membership in the
   21  pension plan is not permitted except as provided in s.
   22  121.591(2). Employees initially enrolled on or after January 1,
   23  2017, are not eligible to use the election opportunity specified
   24  in s. 121.4501(4)(g).
   25         (b) Employees initially enrolled in the Florida Retirement
   26  System before January 1, 2017, may retain their membership in
   27  the pension plan or investment plan and are eligible to use the
   28  election opportunity specified in s. 121.4501(4)(g).
   29         (c) Employees initially enrolled in the Florida Retirement
   30  System on or after January 1, 2017, whose first regularly
   31  established positions are not covered by the Elected Officers’
   32  Class or the Senior Management Service Class and who are
   33  subsequently employed in positions covered by the Elected
   34  Officers’ Class or the Senior Management Service Class shall
   35  retain their membership in the pension plan or investment plan
   36  and are eligible to use the election opportunity specified in s.
   37  121.4501(4)(g).
   38         (d) Employees eligible to withdraw from the system under s.
   39  121.052(3)(d) or s. 121.055(1)(b)2. may choose to withdraw from
   40  the system or to participate in the investment plan as provided
   41  in those sections. Employees eligible for optional retirement
   42  programs under paragraph (2)(c) or s. 121.35 may choose to
   43  participate in the optional retirement program or the investment
   44  plan as provided in this section. Eligible employees required to
   45  participate pursuant to paragraph (1)(a) in the optional
   46  retirement program as provided under s. 121.35 must participate
   47  in the investment plan when employed in a position not eligible
   48  for the optional retirement program.
   49         Section 2. Paragraph (c) of subsection (3) of section
   50  121.052, Florida Statutes, is amended to read:
   51         121.052 Membership class of elected officers.—
   52         (3) PARTICIPATION AND WITHDRAWAL, GENERALLY.—Effective July
   53  1, 1990, participation in the Elected Officers’ Class shall be
   54  compulsory for elected officers listed in paragraphs (2)(a)-(d)
   55  and (f) assuming office on or after said date, unless the
   56  elected officer elects membership in another class or withdraws
   57  from the Florida Retirement System as provided in paragraphs
   58  (3)(a)-(d):
   59         (c) Before January 1, 2017, any elected officer may, within
   60  6 months after assuming office, or within 6 months after this
   61  act becomes a law for serving elected officers, elect membership
   62  in the Senior Management Service Class as provided in s. 121.055
   63  in lieu of membership in the Elected Officers’ Class. Any such
   64  election made by a county elected officer shall have no effect
   65  upon the statutory limit on the number of nonelective full-time
   66  positions that may be designated by a local agency employer for
   67  inclusion in the Senior Management Service Class under s.
   68  121.055(1)(b)1.
   69         Section 3. Paragraph (f) of subsection (1) and paragraph
   70  (c) of subsection (6) of section 121.055, Florida Statutes, are
   71  amended to read:
   72         121.055 Senior Management Service Class.—There is hereby
   73  established a separate class of membership within the Florida
   74  Retirement System to be known as the “Senior Management Service
   75  Class,” which shall become effective February 1, 1987.
   76         (1)
   77         (f) Effective July 1, 1997, through December 31, 2016:
   78         1. Except as provided in subparagraphs subparagraph 3. and
   79  4., an elected state officer eligible for membership in the
   80  Elected Officers’ Class under s. 121.052(2)(a), (b), or (c) who
   81  elects membership in the Senior Management Service Class under
   82  s. 121.052(3)(c) may, within 6 months after assuming office or
   83  within 6 months after this act becomes a law for serving elected
   84  state officers, elect to participate in the Senior Management
   85  Service Optional Annuity Program, as provided in subsection (6),
   86  in lieu of membership in the Senior Management Service Class.
   87         2. Except as provided in subparagraphs subparagraph 3. and
   88  4., an elected officer of a local agency employer eligible for
   89  membership in the Elected Officers’ Class under s. 121.052(2)(d)
   90  who elects membership in the Senior Management Service Class
   91  under s. 121.052(3)(c) may, within 6 months after assuming
   92  office, or within 6 months after this act becomes a law for
   93  serving elected officers of a local agency employer, elect to
   94  withdraw from the Florida Retirement System, as provided in
   95  subparagraph (b)2., in lieu of membership in the Senior
   96  Management Service Class.
   97         3. A retiree of a state-administered retirement system who
   98  is initially reemployed in a regularly established position on
   99  or after July 1, 2010, as an elected official eligible for the
  100  Elected Officers’ Class may not be enrolled in renewed
  101  membership in the Senior Management Service Class or in the
  102  Senior Management Service Optional Annuity Program as provided
  103  in subsection (6), and may not withdraw from the Florida
  104  Retirement System as a renewed member as provided in
  105  subparagraph (b)2., as applicable, in lieu of membership in the
  106  Senior Management Service Class.
  107         4. On or after January 1, 2017, an elected officer eligible
  108  for membership in the Elected Officers’ Class may not be
  109  enrolled in the Senior Management Service Class or in the Senior
  110  Management Service Optional Annuity Program as provided in
  111  subsection (6).
  112         (6)
  113         (c) Participation.—
  114         1. An eligible employee who is employed on or before
  115  February 1, 1987, may elect to participate in the optional
  116  annuity program in lieu of participating in the Senior
  117  Management Service Class. Such election must be made in writing
  118  and filed with the department and the personnel officer of the
  119  employer on or before May 1, 1987. An eligible employee who is
  120  employed on or before February 1, 1987, and who fails to make an
  121  election to participate in the optional annuity program by May
  122  1, 1987, shall be deemed to have elected membership in the
  123  Senior Management Service Class.
  124         2. Except as provided in subparagraph 6., an employee who
  125  becomes eligible to participate in the optional annuity program
  126  by reason of initial employment commencing after February 1,
  127  1987, may, within 90 days after the date of commencing
  128  employment, elect to participate in the optional annuity
  129  program. Such election must be made in writing and filed with
  130  the personnel officer of the employer. An eligible employee who
  131  does not within 90 days after commencing employment elect to
  132  participate in the optional annuity program shall be deemed to
  133  have elected membership in the Senior Management Service Class.
  134         3. A person who is appointed to a position in the Senior
  135  Management Service Class and who is a member of an existing
  136  retirement system or the Special Risk or Special Risk
  137  Administrative Support Classes of the Florida Retirement System
  138  may elect to remain in such system or class in lieu of
  139  participating in the Senior Management Service Class or optional
  140  annuity program. Such election must be made in writing and filed
  141  with the department and the personnel officer of the employer
  142  within 90 days after such appointment. An eligible employee who
  143  fails to make an election to participate in the existing system,
  144  the Special Risk Class of the Florida Retirement System, the
  145  Special Risk Administrative Support Class of the Florida
  146  Retirement System, or the optional annuity program shall be
  147  deemed to have elected membership in the Senior Management
  148  Service Class.
  149         4. Except as provided in subparagraph 5., an employee’s
  150  election to participate in the optional annuity program is
  151  irrevocable if the employee continues to be employed in an
  152  eligible position and continues to meet the eligibility
  153  requirements set forth in this paragraph.
  154         5. Effective from July 1, 2002, through September 30, 2002,
  155  an active employee in a regularly established position who has
  156  elected to participate in the Senior Management Service Optional
  157  Annuity Program has one opportunity to choose to move from the
  158  Senior Management Service Optional Annuity Program to the
  159  Florida Retirement System Pension Plan.
  160         a. The election must be made in writing and must be filed
  161  with the department and the personnel officer of the employer
  162  before October 1, 2002, or, in the case of an active employee
  163  who is on a leave of absence on July 1, 2002, within 90 days
  164  after the conclusion of the leave of absence. This election is
  165  irrevocable.
  166         b. The employee shall receive service credit under the
  167  pension plan equal to his or her years of service under the
  168  Senior Management Service Optional Annuity Program. The cost for
  169  such credit is the amount representing the present value of that
  170  employee’s accumulated benefit obligation for the affected
  171  period of service.
  172         c. The employee must transfer the total accumulated
  173  employer contributions and earnings on deposit in his or her
  174  Senior Management Service Optional Annuity Program account. If
  175  the transferred amount is not sufficient to pay the amount due,
  176  the employee must pay a sum representing the remainder of the
  177  amount due. The employee may not retain any employer
  178  contributions or earnings from the Senior Management Service
  179  Optional Annuity Program account.
  180         6. A retiree of a state-administered retirement system who
  181  is initially reemployed on or after July 1, 2010, may not renew
  182  membership in the Senior Management Service Optional Annuity
  183  Program.
  184         7. Effective January 1, 2017, the Senior Management Service
  185  Optional Annuity Program is closed to new members. Members
  186  enrolled in the Senior Management Service Optional Annuity
  187  Program on or before January 1, 2017, may retain their
  188  membership in the annuity program.
  189         Section 4. Subsection (1), paragraph (g) of subsection (4),
  190  subsection (8), and paragraphs (b) and (c) of subsection (10) of
  191  section 121.4501, Florida Statutes, are amended, and paragraph
  192  (h) is added to subsection (4) of that section, to read:
  193         121.4501 Florida Retirement System Investment Plan.—
  194         (1) ESTABLISHMENT.—
  195         (a) The Trustees of the State Board of Administration shall
  196  establish a defined contribution program called the “Florida
  197  Retirement System Investment Plan” or “investment plan” for
  198  members of the Florida Retirement System under which retirement
  199  benefits will be provided for:
  200         1. Eligible employees who elect to participate in the
  201  program; and
  202         2. Employees initially enrolled on or after January 1,
  203  2017, in positions covered by the Elected Officers’ Class and
  204  the Senior Management Service Class who are compulsory members
  205  of the investment plan unless otherwise eligible to withdraw
  206  from the system under s. 121.052(3)(d) or s. 121.055(1)(b)2., or
  207  to participate in an optional retirement program under s.
  208  121.051(1)(a) or (2)(c), or s. 121.35. Investment plan
  209  membership continues if the member is subsequently employed in a
  210  position covered by another membership class.
  211         (b)1. Employees initially enrolled on or after January 1,
  212  2017, in positions covered by the Elected Officers’ Class and
  213  the Senior Management Service Class may retain their membership
  214  in the pension plan or investment plan and are eligible to use
  215  the election opportunity specified in s. 121.4501(4)(g).
  216         2. Employees initially enrolled in the Florida Retirement
  217  System on or after January 1, 2017, whose initial employment is
  218  in a regularly established position that is not covered by the
  219  Elected Officers’ Class or the Senior Management Service Class
  220  who are subsequently employed in a position covered by the
  221  Elected Officers’ Class or the Senior Management Service Class
  222  shall retain their membership in the pension plan or the
  223  investment plan and are eligible to use the election opportunity
  224  specified in paragraph (4)(g).
  225         3. Employees eligible to withdraw from the system under s.
  226  121.052(3)(d) or s. 121.055(1)(b)2. may choose to withdraw from
  227  the system or participate in the investment plan as provided in
  228  those sections. Employees eligible for optional retirement
  229  programs under s. 121.051(2)(c) or s. 121.35 may choose to
  230  participate in the optional retirement program or the investment
  231  plan. Eligible employees required to participate in the optional
  232  retirement program pursuant to s. 121.051(1)(a) as provided
  233  under s. 121.35 must participate in the investment plan when
  234  employed in a position not eligible for the optional retirement
  235  program.
  236         (c) The retirement benefits shall be provided through
  237  member-directed investments, in accordance with s. 401(a) of the
  238  Internal Revenue Code and related regulations. The employer and
  239  employee shall make contributions, as provided in this section
  240  and ss. 121.571 and 121.71, to the Florida Retirement System
  241  Investment Plan Trust Fund toward the funding of benefits.
  242         (4) PARTICIPATION; ENROLLMENT.—
  243         (g) After the period during which an eligible employee had
  244  the choice to elect the pension plan or the investment plan, or
  245  the month following the receipt of the eligible employee’s plan
  246  election, if sooner, the employee shall have one opportunity, at
  247  the employee’s discretion, to choose to move from the pension
  248  plan to the investment plan or from the investment plan to the
  249  pension plan. Eligible employees may elect to move between plans
  250  only if they are earning service credit in an employer-employee
  251  relationship consistent with s. 121.021(17)(b), excluding leaves
  252  of absence without pay. Effective July 1, 2005, such elections
  253  are effective on the first day of the month following the
  254  receipt of the election by the third-party administrator and are
  255  not subject to the requirements regarding an employer-employee
  256  relationship or receipt of contributions for the eligible
  257  employee in the effective month, except when the election is
  258  received by the third-party administrator. This paragraph is
  259  contingent upon approval by the Internal Revenue Service. This
  260  paragraph is not applicable to compulsory investment plan
  261  members enrolled under paragraph (h).
  262         1. If the employee chooses to move to the investment plan,
  263  the provisions of subsection (3) govern the transfer.
  264         2. If the employee chooses to move to the pension plan, the
  265  employee must transfer from his or her investment plan account,
  266  and from other employee moneys as necessary, a sum representing
  267  the present value of that employee’s accumulated benefit
  268  obligation immediately following the time of such movement,
  269  determined assuming that attained service equals the sum of
  270  service in the pension plan and service in the investment plan.
  271  Benefit commencement occurs on the first date the employee is
  272  eligible for unreduced benefits, using the discount rate and
  273  other relevant actuarial assumptions that were used to value the
  274  pension plan liabilities in the most recent actuarial valuation.
  275  For any employee who, at the time of the second election,
  276  already maintains an accrued benefit amount in the pension plan,
  277  the then-present value of the accrued benefit is deemed part of
  278  the required transfer amount. The division must ensure that the
  279  transfer sum is prepared using a formula and methodology
  280  certified by an enrolled actuary. A refund of any employee
  281  contributions or additional member payments made which exceed
  282  the employee contributions that would have accrued had the
  283  member remained in the pension plan and not transferred to the
  284  investment plan is not permitted.
  285         3. Notwithstanding subparagraph 2., an employee who chooses
  286  to move to the pension plan and who became eligible to
  287  participate in the investment plan by reason of employment in a
  288  regularly established position with a state employer after June
  289  1, 2002; a district school board employer after September 1,
  290  2002; or a local employer after December 1, 2002, must transfer
  291  from his or her investment plan account, and from other employee
  292  moneys as necessary, a sum representing the employee’s actuarial
  293  accrued liability. A refund of any employee contributions or
  294  additional participant payments made which exceed the employee
  295  contributions that would have accrued had the member remained in
  296  the pension plan and not transferred to the investment plan is
  297  not permitted.
  298         4. An employee’s ability to transfer from the pension plan
  299  to the investment plan pursuant to paragraphs (a)-(d), and the
  300  ability of a current employee to have an option to later
  301  transfer back into the pension plan under subparagraph 2., shall
  302  be deemed a significant system amendment. Pursuant to s.
  303  121.031(4), any resulting unfunded liability arising from actual
  304  original transfers from the pension plan to the investment plan
  305  must be amortized within 30 plan years as a separate unfunded
  306  actuarial base independent of the reserve stabilization
  307  mechanism defined in s. 121.031(3)(f). For the first 25 years, a
  308  direct amortization payment may not be calculated for this base.
  309  During this 25-year period, the separate base shall be used to
  310  offset the impact of employees exercising their second program
  311  election under this paragraph. The actuarial funded status of
  312  the pension plan will not be affected by such second program
  313  elections in any significant manner, after due recognition of
  314  the separate unfunded actuarial base. Following the initial 25
  315  year period, any remaining balance of the original separate base
  316  shall be amortized over the remaining 5 years of the required
  317  30-year amortization period.
  318         5. If the employee chooses to transfer from the investment
  319  plan to the pension plan and retains an excess account balance
  320  in the investment plan after satisfying the buy-in requirements
  321  under this paragraph, the excess may not be distributed until
  322  the member retires from the pension plan. The excess account
  323  balance may be rolled over to the pension plan and used to
  324  purchase service credit or upgrade creditable service in the
  325  pension plan.
  326         (h)1.All employees initially enrolled on or after January
  327  1, 2017, in positions covered by the Elected Officers’ Class or
  328  the Senior Management Service Class are compulsory members of
  329  the investment plan, except those eligible to withdraw from the
  330  system under s. 121.052(3)(d) or s. 121.055(1)(b)2., or those
  331  eligible for optional retirement programs under s.
  332  121.051(1)(a), s. 121.051(2)(c), or s. 121.35.
  333         2. Employees eligible to withdraw from the system under s.
  334  121.052(3)(d) or s. 121.055(1)(b)2. may choose to withdraw from
  335  the system or to participate in the investment plan as provided
  336  in those sections. Employees eligible for optional retirement
  337  programs under s. 121.051(2)(c) or s. 121.35, except as provided
  338  in s. 121.051(1)(a), may choose to participate in the optional
  339  retirement program or the investment plan as provided in those
  340  sections. Investment plan membership continues if there is
  341  subsequent employment in a position covered by another
  342  membership class. Membership in the pension plan is not
  343  permitted except as provided in s. 121.591(2).
  344         3. Employees initially enrolled in the Florida Retirement
  345  System on or before January 1, 2017, may retain their membership
  346  in the pension plan or investment plan and are eligible to use
  347  the election opportunity specified in paragraph (g).
  348         4. Employees initially enrolled in the Florida Retirement
  349  System on or after January 1, 2017, and whose initial employment
  350  is in a regularly established position that is not covered by
  351  the Elected Officers’ Class or the Senior Management Service
  352  Class who are subsequently employed in a position covered by the
  353  Elected Officers’ Class or the Senior Management Service Class
  354  shall retain their membership in the pension plan or investment
  355  plan and are eligible to use the election opportunity specified
  356  in paragraph (g).
  357         5. Employees initially enrolled in positions covered by the
  358  Elected Officers’ class or the Senior Management Service Class
  359  on or after January 1, 2017, are not permitted to use the
  360  election opportunity specified in paragraph (g).
  361         6. The amount of retirement contributions paid by the
  362  employee and employer, as required under s. 121.72, shall be
  363  placed in a default fund as designated by the state board at
  364  which time the member may move the contributions from the
  365  default fund to other funds provided in the investment plan.
  366         (8) INVESTMENT PLAN ADMINISTRATION.—The investment plan
  367  shall be administered by the state board and affected employers.
  368  The state board may require oaths, by affidavit or otherwise,
  369  and acknowledgments from persons in connection with the
  370  administration of its statutory duties and responsibilities for
  371  the investment plan. An oath, by affidavit or otherwise, may not
  372  be required of a member at the time of enrollment.
  373  Acknowledgment of an employee’s election to participate in the
  374  program shall be no greater than necessary to confirm the
  375  employee’s election, except for members initially enrolled on or
  376  after January 1, 2017, as provided in paragraph (4)(h). The
  377  state board shall adopt rules to carry out its statutory duties
  378  with respect to administering the investment plan, including
  379  establishing the roles and responsibilities of affected state,
  380  local government, and education-related employers, the state
  381  board, the department, and third-party contractors. The
  382  department shall adopt rules necessary to administer the
  383  investment plan in coordination with the pension plan and the
  384  disability benefits available under the investment plan.
  385         (a)1. The state board shall select and contract with a
  386  third-party administrator to provide administrative services if
  387  those services cannot be competitively and contractually
  388  provided by the division. With the approval of the state board,
  389  the third-party administrator may subcontract to provide
  390  components of the administrative services. As a cost of
  391  administration, the state board may compensate any such
  392  contractor for its services, in accordance with the terms of the
  393  contract, as is deemed necessary or proper by the board. The
  394  third-party administrator may not be an approved provider or be
  395  affiliated with an approved provider.
  396         2. These administrative services may include, but are not
  397  limited to, enrollment of eligible employees, collection of
  398  employer and employee contributions, disbursement of
  399  contributions to approved providers in accordance with the
  400  allocation directions of members; services relating to
  401  consolidated billing; individual and collective recordkeeping
  402  and accounting; asset purchase, control, and safekeeping; and
  403  direct disbursement of funds to and from the third-party
  404  administrator, the division, the state board, employers,
  405  members, approved providers, and beneficiaries. This section
  406  does not prevent or prohibit a bundled provider from providing
  407  any administrative or customer service, including accounting and
  408  administration of individual member benefits and contributions;
  409  individual member recordkeeping; asset purchase, control, and
  410  safekeeping; direct execution of the member’s instructions as to
  411  asset and contribution allocation; calculation of daily net
  412  asset values; direct access to member account information; or
  413  periodic reporting to members, at least quarterly, on account
  414  balances and transactions, if these services are authorized by
  415  the state board as part of the contract.
  416         (b)1. The state board shall select and contract with one or
  417  more organizations to provide educational services. With
  418  approval of the state board, the organizations may subcontract
  419  to provide components of the educational services. As a cost of
  420  administration, the state board may compensate any such
  421  contractor for its services in accordance with the terms of the
  422  contract, as is deemed necessary or proper by the board. The
  423  education organization may not be an approved provider or be
  424  affiliated with an approved provider.
  425         2. Educational services shall be designed by the state
  426  board and department to assist employers, eligible employees,
  427  members, and beneficiaries in order to maintain compliance with
  428  United States Department of Labor regulations under s. 404(c) of
  429  the Employee Retirement Income Security Act of 1974 and to
  430  assist employees in their choice of pension plan or investment
  431  plan retirement alternatives. Educational services include, but
  432  are not limited to, disseminating educational materials;
  433  providing retirement planning education; explaining the pension
  434  plan and the investment plan; and offering financial planning
  435  guidance on matters such as investment diversification,
  436  investment risks, investment costs, and asset allocation. An
  437  approved provider may also provide educational information,
  438  including retirement planning and investment allocation
  439  information concerning its products and services.
  440         (c)1. In evaluating and selecting a third-party
  441  administrator, the state board shall establish criteria for
  442  evaluating the relative capabilities and qualifications of each
  443  proposed administrator. In developing such criteria, the state
  444  board shall consider:
  445         a. The administrator’s demonstrated experience in providing
  446  administrative services to public or private sector retirement
  447  systems.
  448         b. The administrator’s demonstrated experience in providing
  449  daily valued recordkeeping to defined contribution programs.
  450         c. The administrator’s ability and willingness to
  451  coordinate its activities with employers, the state board, and
  452  the division, and to supply to such employers, the board, and
  453  the division the information and data they require, including,
  454  but not limited to, monthly management reports, quarterly member
  455  reports, and ad hoc reports requested by the department or state
  456  board.
  457         d. The cost-effectiveness and levels of the administrative
  458  services provided.
  459         e. The administrator’s ability to interact with the
  460  members, the employers, the state board, the division, and the
  461  providers; the means by which members may access account
  462  information, direct investment of contributions, make changes to
  463  their accounts, transfer moneys between available investment
  464  vehicles, and transfer moneys between investment products; and
  465  any fees that apply to such activities.
  466         f. Any other factor deemed necessary by the state board.
  467         2. In evaluating and selecting an educational provider, the
  468  state board shall establish criteria under which it shall
  469  consider the relative capabilities and qualifications of each
  470  proposed educational provider. In developing such criteria, the
  471  state board shall consider:
  472         a. Demonstrated experience in providing educational
  473  services to public or private sector retirement systems.
  474         b. Ability and willingness to coordinate its activities
  475  with the employers, the state board, and the division, and to
  476  supply to such employers, the board, and the division the
  477  information and data they require, including, but not limited
  478  to, reports on educational contacts.
  479         c. The cost-effectiveness and levels of the educational
  480  services provided.
  481         d. Ability to provide educational services via different
  482  media, including, but not limited to, the Internet, personal
  483  contact, seminars, brochures, and newsletters.
  484         e. Any other factor deemed necessary by the state board.
  485         3. The establishment of the criteria shall be solely within
  486  the discretion of the state board.
  487         (d) The state board shall develop the form and content of
  488  any contracts to be offered under the investment plan. In
  489  developing the contracts, the board shall consider:
  490         1. The nature and extent of the rights and benefits to be
  491  afforded in relation to the contributions required under the
  492  plan.
  493         2. The suitability of the rights and benefits provided and
  494  the interests of employers in the recruitment and retention of
  495  eligible employees.
  496         (e)1. The state board may contract for professional
  497  services, including legal, consulting, accounting, and actuarial
  498  services, deemed necessary to implement and administer the
  499  investment plan. The state board may enter into a contract with
  500  one or more vendors to provide low-cost investment advice to
  501  members, supplemental to education provided by the third-party
  502  administrator. All fees under any such contract shall be paid by
  503  those members who choose to use the services of the vendor.
  504         2. The department may contract for professional services,
  505  including legal, consulting, accounting, and actuarial services,
  506  deemed necessary to implement and administer the investment plan
  507  in coordination with the pension plan. The department, in
  508  coordination with the state board, may enter into a contract
  509  with the third-party administrator in order to coordinate
  510  services common to the various programs within the Florida
  511  Retirement System.
  512         (f) The third-party administrator may not receive direct or
  513  indirect compensation from an approved provider, except as
  514  specifically provided for in the contract with the state board.
  515         (g) The state board shall receive and resolve member
  516  complaints against the program, the third-party administrator,
  517  or any program vendor or provider; shall resolve any conflict
  518  between the third-party administrator and an approved provider
  519  if such conflict threatens the implementation or administration
  520  of the program or the quality of services to employees; and may
  521  resolve any other conflicts. The third-party administrator shall
  522  retain all member records for at least 5 years for use in
  523  resolving any member conflicts. The state board, the third-party
  524  administrator, or a provider is not required to produce
  525  documentation or an audio recording to justify action taken with
  526  regard to a member if the action occurred 5 or more years before
  527  the complaint is submitted to the state board. It is presumed
  528  that all action taken 5 or more years before the complaint is
  529  submitted was taken at the request of the member and with the
  530  member’s full knowledge and consent. To overcome this
  531  presumption, the member must present documentary evidence or an
  532  audio recording demonstrating otherwise.
  533         (10) EDUCATION COMPONENT.—
  534         (b) The education component must provide system members
  535  with impartial and balanced information about plan choices,
  536  except for members initially enrolled on or after January 1,
  537  2017, as provided in paragraph (4)(h). The education component
  538  must involve multimedia formats. Program comparisons must, to
  539  the greatest extent possible, be based upon the retirement
  540  income that different retirement programs may provide to the
  541  member. The state board shall monitor the performance of the
  542  contract to ensure that the program is conducted in accordance
  543  with the contract, applicable law, and the rules of the state
  544  board.
  545         (c) The state board, in coordination with the department,
  546  shall provide for an initial and ongoing transfer education
  547  component to provide system members, except for members
  548  initially enrolled on or after January 1, 2017, as provided in
  549  paragraph (4)(h), with information necessary to make informed
  550  plan choice decisions. The transfer education component must
  551  include, but is not limited to, information on:
  552         1. The amount of money available to a member to transfer to
  553  the defined contribution program.
  554         2. The features of and differences between the pension plan
  555  and the defined contribution program, both generally and
  556  specifically, as those differences may affect the member.
  557         3. The expected benefit available if the member were to
  558  retire under each of the retirement programs, based on
  559  appropriate alternative sets of assumptions.
  560         4. The rate of return from investments in the defined
  561  contribution program and the period of time over which such rate
  562  of return must be achieved to equal or exceed the expected
  563  monthly benefit payable to the member under the pension plan.
  564         5. The historical rates of return for the investment
  565  alternatives available in the defined contribution programs.
  566         6. The benefits and historical rates of return on
  567  investments available in a typical deferred compensation plan or
  568  a typical plan under s. 403(b) of the Internal Revenue Code for
  569  which the employee may be eligible.
  570         7. The program choices available to employees of the State
  571  University System and the comparative benefits of each available
  572  program, if applicable.
  573         8. Payout options available in each of the retirement
  574  programs.
  575         Section 5. Section 238.072, Florida Statutes, is amended to
  576  read:
  577         238.072 Special service provisions for extension
  578  personnel.—All state and county cooperative extension personnel
  579  holding appointments by the United States Department of
  580  Agriculture for extension work in agriculture and home economics
  581  in this state who are joint representatives of the University of
  582  Florida and the United States Department of Agriculture, as
  583  provided in s. 121.051(8) s. 121.051(7), who are members of the
  584  Teachers’ Retirement System, chapter 238, and who are prohibited
  585  from transferring to and participating in the Florida Retirement
  586  System, chapter 121, may retire with full benefits upon
  587  completion of 30 years of creditable service and shall be
  588  considered to have attained normal retirement age under this
  589  chapter, any law to the contrary notwithstanding. In order to
  590  comply with the provisions of s. 14, Art. X of the State
  591  Constitution, any liability accruing to the Florida Retirement
  592  System Trust Fund as a result of the provisions of this section
  593  shall be paid on an annual basis from the General Revenue Fund.
  594         Section 6. Subsection (11) of section 413.051, Florida
  595  Statutes, is amended to read:
  596         413.051 Eligible blind persons; operation of vending
  597  stands.—
  598         (11) Effective July 1, 1996, blind licensees who remain
  599  members of the Florida Retirement System pursuant to s.
  600  121.051(7)(b)1. s. 121.051(6)(b)1. shall pay any unappropriated
  601  retirement costs from their net profits or from program income.
  602  Within 30 days after the effective date of this act, each blind
  603  licensee who is eligible to maintain membership in the Florida
  604  Retirement System under s. 121.051(7)(b)1. s. 121.051(6)(b)1.,
  605  but who elects to withdraw from the system as provided in s.
  606  121.051(7)(b)3. s. 121.051(6)(b)3., must, on or before July 31,
  607  1996, notify the Division of Blind Services and the Department
  608  of Management Services in writing of his or her election to
  609  withdraw. Failure to timely notify the divisions shall be deemed
  610  a decision to remain a compulsory member of the Florida
  611  Retirement System. However, if, at any time after July 1, 1996,
  612  sufficient funds are not paid by a blind licensee to cover the
  613  required contribution to the Florida Retirement System, that
  614  blind licensee shall become ineligible to participate in the
  615  Florida Retirement System on the last day of the first month for
  616  which no contribution is made or the amount contributed is
  617  insufficient to cover the required contribution. For any blind
  618  licensee who becomes ineligible to participate in the Florida
  619  Retirement System as described in this subsection, no creditable
  620  service shall be earned under the Florida Retirement System for
  621  any period following the month that retirement contributions
  622  ceased to be reported. However, any such person may participate
  623  in the Florida Retirement System in the future if employed by a
  624  participating employer in a covered position.
  625         Section 7. The Legislature finds that a proper and
  626  legitimate state purpose is served when employees and retirees
  627  of the state and its political subdivisions, and the dependents,
  628  survivors, and beneficiaries of such employees and retirees, are
  629  extended the basic protections afforded by governmental
  630  retirement systems. These persons must be provided benefits that
  631  are fair and adequate and that are managed, administered, and
  632  funded in an actuarially sound manner, as required by s. 14,
  633  Article X of the State Constitution and part VII of chapter 112,
  634  Florida Statutes. Therefore, the Legislature determines and
  635  declares that this act fulfills an important state interest.
  636         Section 8. This act shall apply retroactively to January 1,
  637  2017.
  638         Section 9. This act shall take effect upon becoming a law.
  639  
  640  ================= T I T L E  A M E N D M E N T ================
  641  And the title is amended as follows:
  642         Delete everything before the enacting clause
  643  and insert:
  644                        A bill to be entitled                      
  645         An act relating to the Florida Retirement System;
  646         amending s. 121.051, F.S.; providing for compulsory
  647         membership in the Florida Retirement System Investment
  648         Plan for employees in the Elected Officers’ Class or
  649         the Senior Management Service Class initially enrolled
  650         after a specified date; amending s. 121.052, F.S.;
  651         prohibiting members of the Elected Officers’ Class
  652         from joining the Senior Management Service Class after
  653         a specified date; amending s. 121.055, F.S.;
  654         prohibiting an elected official eligible for
  655         membership in the Elected Officers’ Class from
  656         enrolling in the Senior Management Service Class or in
  657         the Senior Management Service Optional Annuity
  658         Program; closing the Senior Management Optional
  659         Annuity Program to new members effective on or after a
  660         specified date; amending s. 121.4501, F.S.; requiring
  661         certain employees initially enrolled in the Florida
  662         Retirement System on or after a specified date to be
  663         compulsory members of the investment plan; conforming
  664         provisions to changes made by the act; amending ss.
  665         238.072 and 413.051, F.S.; conforming cross
  666         references; providing that the act fulfills an
  667         important state interest; providing for retroactive
  668         application; providing an effective date.