Florida Senate - 2017                                    SB 7030
       
       
        
       By the Committee on Governmental Oversight and Accountability
       
       
       
       
       
       585-04368-17                                          20177030__
    1                        A bill to be entitled                      
    2         An act relating to retirement; creating s. 112.1816,
    3         F.S.; defining the term “firefighter”; establishing a
    4         presumption as to a firefighter’s condition or
    5         impairment of health caused by certain types of cancer
    6         he or she contracts in the line of duty; specifying
    7         criteria a firefighter must meet to be entitled to the
    8         presumption; requiring an employing agency to provide
    9         a physical examination for a firefighter; specifying
   10         circumstances under which the presumption does not
   11         apply; providing for applicability; amending s.
   12         121.053, F.S.; authorizing renewed membership in the
   13         Florida Retirement System for retirees who are
   14         reemployed in a position eligible for the Elected
   15         Officers’ Class under certain circumstances; amending
   16         s. 121.055, F.S.; providing for renewed membership in
   17         the retirement system for retirees of the Senior
   18         Management Service Optional Annuity Program who are
   19         reemployed on or after a specified date; closing the
   20         Senior Management Service Optional Annuity Program to
   21         new members after a specified date; amending s.
   22         121.091, F.S.; revising criteria for eligibility of
   23         payment of death benefits to the surviving children of
   24         a Special Risk Class member killed in the line of duty
   25         under specified circumstances; conforming a provision
   26         to changes made by the act; amending s. 121.122, F.S.;
   27         requiring that certain retirees who are reemployed on
   28         or after a specified date be renewed members in the
   29         investment plan; providing exceptions; specifying that
   30         creditable service does not accrue for employment
   31         during a specified period; prohibiting certain funds
   32         from being paid into a renewed member’s investment
   33         plan account for a specified period of employment;
   34         requiring the renewed member to satisfy vesting
   35         requirements; prohibiting a renewed member from
   36         receiving specified disability benefits; specifying
   37         limitations and requirements; requiring the employer
   38         and the retiree to make applicable contributions to
   39         the renewed member’s investment plan account;
   40         providing for the transfer of contributions;
   41         authorizing a renewed member to receive additional
   42         credit toward the health insurance subsidy under
   43         certain circumstances; prohibiting participation in
   44         the pension plan; providing that a retiree reemployed
   45         on or after a specified date in a regularly
   46         established position eligible for the State University
   47         System Optional Retirement Program or State Community
   48         College System Optional Retirement Program is a
   49         renewed member of that program; specifying limitations
   50         and requirements; requiring the employer and the
   51         retiree to make applicable contributions; amending s.
   52         121.4501, F.S.; revising definitions; revising a
   53         provision relating to acknowledgement of an employee’s
   54         election to participate in the investment plan;
   55         enrolling certain employees in the pension plan from
   56         their date of hire until they are automatically
   57         enrolled in the investment plan or timely elect
   58         enrollment in the pension plan; providing certain
   59         members with a specified time to choose participation
   60         in the pension plan or the investment plan; conforming
   61         provisions to changes made by the act; amending s.
   62         121.591, F.S.; authorizing payment of death benefits
   63         to the surviving spouse or surviving children of a
   64         member in the investment plan; establishing
   65         qualifications and eligibility requirements for
   66         receipt of such benefits; prescribing the method of
   67         calculating the benefit; specifying circumstances
   68         under which benefit payments are terminated; amending
   69         s. 121.5912, F.S.; revising a provision regarding
   70         program qualification under the Internal Revenue Code
   71         and rulemaking authority, to conform to changes made
   72         by the act; amending s. 121.735, F.S.; revising
   73         allocations to fund line-of-duty death benefits for
   74         investment plan members, to conform to changes made by
   75         the act; requiring the Legislature to review specified
   76         cancer research programs by a certain date; revising
   77         employer contribution rates to fund changes made by
   78         the act; providing a directive to the Division of Law
   79         Revision and Information; providing a declaration of
   80         important state interest; providing an effective date.
   81          
   82  Be It Enacted by the Legislature of the State of Florida:
   83  
   84         Section 1. Section 112.1816, Florida Statutes, is created
   85  to read:
   86         112.1816 Firefighter disability or death from cancer
   87  presumed contracted in the line of duty.—
   88         (1) DEFINITION.—As used in this section, the term
   89  “firefighter” has the same meaning as in s. 112.81.
   90         (2) PRESUMPTION; ELIGIBILITY CONDITIONS.—
   91         (a) Any condition or impairment of the health of a
   92  firefighter employed full time by the state or any municipality,
   93  county, port authority, special tax district, or fire control
   94  district which is caused by multiple myeloma, non-Hodgkin’s
   95  lymphoma, prostate cancer, or testicular cancer and results in
   96  total or partial disability or death is presumed to have been
   97  accidental and to have been contracted in the line of duty
   98  unless the contrary is shown by competent evidence. In order to
   99  be entitled to this presumption, the firefighter:
  100         1. Must have successfully passed a physical examination
  101  administered before the individual began service as a
  102  firefighter and which failed to reveal any evidence of such a
  103  health condition;
  104         2. Must have been employed as a firefighter with his or her
  105  current employer for at least 5 continuous years before becoming
  106  totally or partially disabled or before his or her death;
  107         3. Must not have used tobacco products for at least 5 years
  108  before becoming totally or partially disabled or before his or
  109  her death; and
  110         4. Must not have been employed during the preceding 5 years
  111  in any other position that is proven to create a higher risk for
  112  multiple myeloma, non-Hodgkin’s lymphoma, prostate cancer, or
  113  testicular cancer. This includes any other employment as a
  114  firefighter at another employing agency within the preceding 5
  115  years.
  116         (b) An employing agency must provide a physical examination
  117  for a firefighter before he or she begins service or immediately
  118  thereafter. Notwithstanding subparagraph (a)1., if the employing
  119  agency fails to provide a physical examination before the
  120  firefighter begins service, or immediately thereafter, the
  121  firefighter is entitled to the presumption, provided that he or
  122  she meets the criteria specified in subparagraphs (a)2., (a)3.,
  123  and (a)4.
  124         (c) The presumption does not apply to benefits payable
  125  under or granted in a life insurance or disability insurance
  126  policy unless the insurer and insured have negotiated for the
  127  additional benefits to be included in the policy contract.
  128         (3) APPLICABILITY.—A firefighter employed on July 1, 2017,
  129  is not required to meet the physical examination requirement in
  130  subsection (2) in order to be entitled to the presumption set
  131  forth in this section.
  132         Section 2. Paragraph (a) of subsection (3) and subsection
  133  (5) of section 121.053, Florida Statutes, are amended to read:
  134         121.053 Participation in the Elected Officers’ Class for
  135  retired members.—
  136         (3) On or after July 1, 2010:
  137         (a) A retiree of a state-administered retirement system who
  138  is initially reemployed in elected or appointed for the first
  139  time to an elective office in a regularly established position
  140  with a covered employer may not reenroll in the Florida
  141  Retirement System, except as provided in s. 121.122.
  142         (5) Any renewed member, as described in s. 121.122(1), (3),
  143  (4), or (5) subsection (1) or subsection (2), who is not
  144  receiving the maximum health insurance subsidy provided in s.
  145  112.363 is entitled to earn additional credit toward the maximum
  146  health insurance subsidy. Any additional subsidy due because of
  147  such additional credit may be received only at the time of
  148  payment of the second career retirement benefit. The total
  149  health insurance subsidy received from initial and renewed
  150  membership may not exceed the maximum allowed in s. 112.363.
  151         Section 3. Paragraph (f) of subsection (1) and paragraph
  152  (c) of subsection (6) of section 121.055, Florida Statutes, are
  153  amended to read:
  154         121.055 Senior Management Service Class.—There is hereby
  155  established a separate class of membership within the Florida
  156  Retirement System to be known as the “Senior Management Service
  157  Class,” which shall become effective February 1, 1987.
  158         (1)
  159         (f) Effective July 1, 1997:
  160         1. Except as provided in subparagraph 3., an elected state
  161  officer eligible for membership in the Elected Officers’ Class
  162  under s. 121.052(2)(a), (b), or (c) who elects membership in the
  163  Senior Management Service Class under s. 121.052(3)(c) may,
  164  within 6 months after assuming office or within 6 months after
  165  this act becomes a law for serving elected state officers, elect
  166  to participate in the Senior Management Service Optional Annuity
  167  Program, as provided in subsection (6), in lieu of membership in
  168  the Senior Management Service Class.
  169         2. Except as provided in subparagraph 3., an elected
  170  officer of a local agency employer eligible for membership in
  171  the Elected Officers’ Class under s. 121.052(2)(d) who elects
  172  membership in the Senior Management Service Class under s.
  173  121.052(3)(c) may, within 6 months after assuming office, or
  174  within 6 months after this act becomes a law for serving elected
  175  officers of a local agency employer, elect to withdraw from the
  176  Florida Retirement System, as provided in subparagraph (b)2., in
  177  lieu of membership in the Senior Management Service Class.
  178         3. A retiree of a state-administered retirement system who
  179  is initially reemployed in a regularly established position on
  180  or after July 1, 2010, through June 30, 2017, as an elected
  181  official eligible for the Elected Officers’ Class may not be
  182  enrolled in renewed membership in the Senior Management Service
  183  Class or in the Senior Management Service Optional Annuity
  184  Program as provided in subsection (6), and may not withdraw from
  185  the Florida Retirement System as a renewed member as provided in
  186  subparagraph (b)2., as applicable, in lieu of membership in the
  187  Senior Management Service Class. Effective July 1, 2017, a
  188  retiree of the Senior Management Service Optional Annuity
  189  Program who is reemployed in a regularly established position
  190  with a covered employer shall be enrolled as a renewed member as
  191  provided in s. 121.122.
  192         (6)
  193         (c) Participation.—
  194         1. An eligible employee who is employed on or before
  195  February 1, 1987, may elect to participate in the optional
  196  annuity program in lieu of participating in the Senior
  197  Management Service Class. Such election shall must be made in
  198  writing and filed with the department and the personnel officer
  199  of the employer on or before May 1, 1987. An eligible employee
  200  who is employed on or before February 1, 1987, and who fails to
  201  make an election to participate in the optional annuity program
  202  by May 1, 1987, is shall be deemed to have elected membership in
  203  the Senior Management Service Class.
  204         2. Except as provided in subparagraph 6., an employee who
  205  becomes eligible to participate in the optional annuity program
  206  by reason of initial employment commencing after February 1,
  207  1987, may, within 90 days after the date of commencing
  208  employment, elect to participate in the optional annuity
  209  program. Such election shall must be made in writing and filed
  210  with the personnel officer of the employer. An eligible employee
  211  who does not within 90 days after commencing employment elect to
  212  participate in the optional annuity program is shall be deemed
  213  to have elected membership in the Senior Management Service
  214  Class.
  215         3. A person who is appointed to a position in the Senior
  216  Management Service Class and who is a member of an existing
  217  retirement system or the Special Risk or Special Risk
  218  Administrative Support Classes of the Florida Retirement System
  219  may elect to remain in such system or class in lieu of
  220  participating in the Senior Management Service Class or optional
  221  annuity program. Such election shall must be made in writing and
  222  filed with the department and the personnel officer of the
  223  employer within 90 days after such appointment. An eligible
  224  employee who fails to make an election to participate in the
  225  existing system, the Special Risk Class of the Florida
  226  Retirement System, the Special Risk Administrative Support Class
  227  of the Florida Retirement System, or the optional annuity
  228  program is shall be deemed to have elected membership in the
  229  Senior Management Service Class.
  230         4. Except as provided in subparagraph 5., an employee’s
  231  election to participate in the optional annuity program is
  232  irrevocable if the employee continues to be employed in an
  233  eligible position and continues to meet the eligibility
  234  requirements set forth in this paragraph.
  235         5. Effective from July 1, 2002, through September 30, 2002,
  236  an active employee in a regularly established position who has
  237  elected to participate in the Senior Management Service Optional
  238  Annuity Program has one opportunity to choose to move from the
  239  Senior Management Service Optional Annuity Program to the
  240  Florida Retirement System Pension Plan.
  241         a. The election shall must be made in writing and must be
  242  filed with the department and the personnel officer of the
  243  employer before October 1, 2002, or, in the case of an active
  244  employee who is on a leave of absence on July 1, 2002, within 90
  245  days after the conclusion of the leave of absence. This election
  246  is irrevocable.
  247         b. The employee shall receive service credit under the
  248  pension plan equal to his or her years of service under the
  249  Senior Management Service Optional Annuity Program. The cost for
  250  such credit is the amount representing the present value of that
  251  employee’s accumulated benefit obligation for the affected
  252  period of service.
  253         c. The employee shall must transfer the total accumulated
  254  employer contributions and earnings on deposit in his or her
  255  Senior Management Service Optional Annuity Program account. If
  256  the transferred amount is not sufficient to pay the amount due,
  257  the employee shall must pay a sum representing the remainder of
  258  the amount due. The employee may not retain any employer
  259  contributions or earnings from the Senior Management Service
  260  Optional Annuity Program account.
  261         6. A retiree of a state-administered retirement system who
  262  is initially reemployed on or after July 1, 2010, through June
  263  30, 2017, may not renew membership in the Senior Management
  264  Service Optional Annuity Program. Effective July 1, 2017, a
  265  retiree of the Senior Management Service Optional Annuity
  266  Program who is reemployed in a regularly established position
  267  with a covered employer shall be enrolled as a renewed member as
  268  provided in s. 121.122.
  269         7. Effective July 1, 2017, the Senior Management Service
  270  Optional Annuity Program is closed to new members. A member
  271  enrolled in the Senior Management Service Optional Annuity
  272  Program before July 1, 2017, may retain his or her membership in
  273  the annuity program.
  274         Section 4. Paragraphs (d) and (i) of subsection (7) and
  275  paragraph (c) of subsection (9) of section 121.091, Florida
  276  Statutes, are amended to read:
  277         121.091 Benefits payable under the system.—Benefits may not
  278  be paid under this section unless the member has terminated
  279  employment as provided in s. 121.021(39)(a) or begun
  280  participation in the Deferred Retirement Option Program as
  281  provided in subsection (13), and a proper application has been
  282  filed in the manner prescribed by the department. The department
  283  may cancel an application for retirement benefits when the
  284  member or beneficiary fails to timely provide the information
  285  and documents required by this chapter and the department’s
  286  rules. The department shall adopt rules establishing procedures
  287  for application for retirement benefits and for the cancellation
  288  of such application when the required information or documents
  289  are not received.
  290         (7) DEATH BENEFITS.—
  291         (d) Notwithstanding any other provision in this chapter to
  292  the contrary, with the exception of the Deferred Retirement
  293  Option Program, as provided in subsection (13):
  294         1. The surviving spouse of any member killed in the line of
  295  duty may receive a monthly pension equal to one-half of the
  296  monthly salary being received by the member at the time of death
  297  for the rest of the surviving spouse’s lifetime or, if the
  298  member was vested, such surviving spouse may elect to receive a
  299  benefit as provided in paragraph (b). Benefits provided by this
  300  paragraph shall supersede any other distribution that may have
  301  been provided by the member’s designation of beneficiary.
  302         2. If the surviving spouse of a member killed in the line
  303  of duty dies, the monthly payments that would have been payable
  304  to such surviving spouse had such surviving spouse lived shall
  305  be paid for the use and benefit of such member’s child or
  306  children under 18 years of age and unmarried until the 18th
  307  birthday of the member’s youngest child. Beginning July 1, 2016,
  308  such payments may be extended, for the surviving child of a
  309  member in the Special Risk Class at the time he or she was
  310  killed in the line of duty on or after July 1, 2013, until the
  311  25th birthday of any child of the member if the child is
  312  unmarried and enrolled as a full-time student. Beginning July 1,
  313  2017, such payments may be extended, for the surviving child of
  314  a member in the Special Risk Class at the time he or she was
  315  killed in the line of duty on or after July 1, 2002, until the
  316  25th birthday of any child of the member if the child is
  317  unmarried and enrolled as a full-time student.
  318         3. If a member killed in the line of duty leaves no
  319  surviving spouse but is survived by a child or children under 18
  320  years of age, the benefits provided by subparagraph 1., normally
  321  payable to a surviving spouse, shall be paid for the use and
  322  benefit of such member’s child or children under 18 years of age
  323  and unmarried until the 18th birthday of the member’s youngest
  324  child. Beginning July 1, 2016, such monthly payments may be
  325  extended, for the surviving child of a member in the Special
  326  Risk Class at the time he or she was killed in the line of duty
  327  on or after July 1, 2013, until the 25th birthday of any child
  328  of the member if the child is unmarried and enrolled as a full
  329  time student. Beginning July 1, 2017, such monthly payments may
  330  be extended, for the surviving child of a member in the Special
  331  Risk Class at the time he or she was killed in the line of duty
  332  on or after July 1, 2002, until the 25th birthday of any child
  333  of the member if the child is unmarried and enrolled as a full
  334  time student.
  335         4. The surviving spouse of a member whose benefit
  336  terminated because of remarriage shall have the benefit
  337  reinstated beginning July 1, 1993, at an amount that would have
  338  been payable had the benefit not been terminated.
  339         (i) Effective July 1, 2016, and Notwithstanding any
  340  provision in this chapter to the contrary, if a member in the
  341  Special Risk Class, other than a participant in the Deferred
  342  Retirement Option Program under subsection (13), is killed in
  343  the line of duty on or after July 1, 2002 2013, the following
  344  benefits are payable in addition to the benefits provided in
  345  paragraph (d):
  346         1. The surviving spouse may receive a monthly pension equal
  347  to one-half of the monthly salary being received by the member
  348  at the time of the member’s death for the rest of the surviving
  349  spouse’s lifetime or, if the member was vested, such surviving
  350  spouse may elect to receive a benefit as provided in paragraph
  351  (b). Benefits provided by this paragraph supersede any other
  352  distribution that may have been provided by the member’s
  353  designation of beneficiary.
  354         2. If the surviving spouse dies, the monthly payments that
  355  otherwise would have been payable to such surviving spouse shall
  356  be paid for the use and benefit of the member’s child or
  357  children under 18 years of age and unmarried until the 18th
  358  birthday of the member’s youngest child. Such monthly payments
  359  may be extended until the 25th birthday of the member’s child if
  360  the child is unmarried and enrolled as a full-time student.
  361         3. If the member leaves no surviving spouse but is survived
  362  by a child or children under 18 years of age, the benefits
  363  provided by subparagraph 1., normally payable to a surviving
  364  spouse, shall be paid for the use and benefit of such member’s
  365  child or children under 18 years of age and unmarried until the
  366  18th birthday of the member’s youngest child. Such monthly
  367  payments may be extended until the 25th birthday of any of the
  368  member’s children if the child is unmarried and enrolled as a
  369  full-time student.
  370         (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
  371         (c) Any person whose retirement is effective on or after
  372  July 1, 2010, or whose participation in the Deferred Retirement
  373  Option Program terminates on or after July 1, 2010, who is
  374  retired under this chapter, except under the disability
  375  retirement provisions of subsection (4) or as provided in s.
  376  121.053, may be reemployed by an employer that participates in a
  377  state-administered retirement system and receive retirement
  378  benefits and compensation from that employer. However, a person
  379  may not be reemployed by an employer participating in the
  380  Florida Retirement System before meeting the definition of
  381  termination in s. 121.021 and may not receive both a salary from
  382  the employer and retirement benefits for 6 calendar months after
  383  meeting the definition of termination. However, a DROP
  384  participant shall continue employment and receive a salary
  385  during the period of participation in the Deferred Retirement
  386  Option Program, as provided in subsection (13).
  387         1. The reemployed retiree may not renew membership in the
  388  Florida Retirement System, except as provided in s. 121.122.
  389         2. The employer shall pay retirement contributions in an
  390  amount equal to the unfunded actuarial liability portion of the
  391  employer contribution that would be required for active members
  392  of the Florida Retirement System in addition to the
  393  contributions required by s. 121.76.
  394         3. A retiree initially reemployed in violation of this
  395  paragraph and an employer that employs or appoints such person
  396  are jointly and severally liable for reimbursement of any
  397  retirement benefits paid to the retirement trust fund from which
  398  the benefits were paid, including the Florida Retirement System
  399  Trust Fund and the Public Employee Optional Retirement Program
  400  Trust Fund, as appropriate. The employer must have a written
  401  statement from the employee that he or she is not retired from a
  402  state-administered retirement system. Retirement benefits shall
  403  remain suspended until repayment is made. Benefits suspended
  404  beyond the end of the retiree’s 6-month reemployment limitation
  405  period shall apply toward the repayment of benefits received in
  406  violation of this paragraph.
  407         Section 5. Subsection (2) of section 121.122, Florida
  408  Statutes, is amended, and subsections (3), (4), and (5) are
  409  added to that section, to read:
  410         121.122 Renewed membership in system.—
  411         (2) Except as otherwise provided in subsections (3), (4),
  412  and (5), a retiree of a state-administered retirement system who
  413  is initially reemployed in a regularly established position on
  414  or after July 1, 2010, may not be enrolled as a renewed member.
  415         (3) A retiree of the investment plan, the State University
  416  System Optional Retirement Program, the Senior Management
  417  Service Optional Annuity Program, or the State Community College
  418  System Optional Retirement Program who is reemployed with a
  419  covered employer in a regularly established position on or after
  420  July 1, 2017, shall be enrolled as a renewed member of the
  421  investment plan unless employed in a position eligible for
  422  participation in the State University System Optional Retirement
  423  Program as provided in subsection (4) or the State Community
  424  College System Optional Retirement Program as provided in
  425  subsection (5). The renewed member must satisfy the vesting
  426  requirements and other provisions of this chapter.
  427         (a) A renewed member of the investment plan shall be
  428  enrolled in one of the following membership classes:
  429         1. In the Regular Class, if the position does not meet the
  430  requirements for membership under s. 121.0515, s. 121.053, or s.
  431  121.055.
  432         2. In the Special Risk Class, if the position meets the
  433  requirements of s. 121.0515.
  434         3. In the Elected Officers’ Class, if the position meets
  435  the requirements of s. 121.053.
  436         4. In the Senior Management Service Class, if the position
  437  meets the requirements of s. 121.055.
  438         (b) Creditable service, including credit toward the retiree
  439  health insurance subsidy provided in s. 112.363, does not accrue
  440  for a renewed member’s employment in a regularly established
  441  position with a covered employer from July 1, 2010, through June
  442  30, 2017.
  443         (c) Employer and employee contributions, interest,
  444  earnings, or any other funds may not be paid into a renewed
  445  member’s investment plan account for any employment in a
  446  regularly established position with a covered employer on or
  447  after July 1, 2010, through June 30, 2017, by the renewed member
  448  or the employer on behalf of the renewed member.
  449         (d) To be eligible to receive a retirement benefit, the
  450  renewed member must satisfy the vesting requirements in s.
  451  121.4501(6).
  452         (e) The renewed member is ineligible to receive disability
  453  benefits as provided in s. 121.091(4) or s. 121.591(2).
  454         (f) The renewed member is subject to the limitations on
  455  reemployment after retirement provided in s. 121.091(9), as
  456  applicable.
  457         (g) The renewed member must satisfy the requirements for
  458  termination from employment provided in s. 121.021(39).
  459         (h) Upon renewed membership or reemployment of a retiree,
  460  the employer and the renewed member shall pay the applicable
  461  employer and employee contributions required under ss. 112.363,
  462  121.71, 121.74, and 121.76. The contributions are payable only
  463  for employment and salary earned in a regularly established
  464  position with a covered employer on or after July 1, 2017. The
  465  employer and employee contributions shall be transferred to the
  466  investment plan and placed in a default fund as designated by
  467  the state board. The renewed member may move the contributions
  468  once an account is activated in the investment plan.
  469         (i) A renewed member who earns creditable service under the
  470  investment plan and who is not receiving the maximum health
  471  insurance subsidy provided in s. 112.363 is entitled to earn
  472  additional credit toward the subsidy. Such credit may be earned
  473  only for employment in a regularly established position with a
  474  covered employer on or after July 1, 2017. Any additional
  475  subsidy due because of additional credit may be received only at
  476  the time of paying the second career retirement benefit. The
  477  total health insurance subsidy received by a retiree receiving
  478  benefits from initial and renewed membership may not exceed the
  479  maximum allowed under s. 112.363.
  480         (j) Notwithstanding s. 121.4501(4)(f), the renewed member
  481  is not eligible to elect membership in the pension plan.
  482         (4) A retiree of the investment plan, the State University
  483  System Optional Retirement Program, the Senior Management
  484  Service Optional Annuity Program, or the State Community College
  485  System Optional Retirement Program who is reemployed on or after
  486  July 1, 2017, in a regularly established position eligible for
  487  participation in the State University System Optional Retirement
  488  Program shall become a renewed member of the optional retirement
  489  program. The renewed member must satisfy the vesting
  490  requirements and other provisions of this chapter. Once
  491  enrolled, a renewed member remains enrolled in the optional
  492  retirement program while employed in an eligible position for
  493  the optional retirement program. If employment in a different
  494  covered position results in the renewed member’s enrollment in
  495  the investment plan, the renewed member is no longer eligible to
  496  participate in the optional retirement program unless employed
  497  in a mandatory position under s. 121.35.
  498         (a) The renewed member is subject to the limitations on
  499  reemployment after retirement provided in s. 121.091(9), as
  500  applicable.
  501         (b) The renewed member must satisfy the requirements for
  502  termination from employment provided in s. 121.021(39).
  503         (c) Upon renewed membership or reemployment of a retiree,
  504  the employer and the renewed member shall pay the applicable
  505  employer and employee contributions required under s. 121.35.
  506         (d) Employer and employee contributions, interest,
  507  earnings, or any other funds may not be paid into a renewed
  508  member’s optional retirement program account for any employment
  509  in a regularly stablished position with a covered employer on or
  510  after July 1, 2010, through June 30, 2017, by the renewed member
  511  or the employer on behalf of the renewed member.
  512         (e) Notwithstanding s. 121.4501(4)(f), the renewed member
  513  is not eligible to elect membership in the pension plan.
  514         (5) A retiree of the investment plan, the State University
  515  System Optional Retirement Program, the Senior Management
  516  Service Optional Annuity Program, or the State Community College
  517  System Optional Retirement Program who is reemployed on or after
  518  July 1, 2017, in a regularly established position eligible for
  519  participation in the State Community College System Optional
  520  Retirement Program shall become a renewed member of the optional
  521  retirement program. The renewed member must satisfy the
  522  eligibility requirements of this chapter and s. 1012.875 for the
  523  optional retirement program. Once enrolled, a renewed member
  524  remains enrolled in the optional retirement program while
  525  employed in an eligible position for the optional retirement
  526  program. If employment in a different covered position results
  527  in the renewed member’s enrollment in the investment plan, the
  528  renewed member is no longer eligible to participate in the
  529  optional retirement program.
  530         (a) The renewed member is subject to the limitations on
  531  reemployment after retirement provided in s. 121.091(9), as
  532  applicable.
  533         (b) The renewed member must satisfy the requirements for
  534  termination from employment provided in s. 121.021(39).
  535         (c) Upon renewed membership or reemployment of a retiree,
  536  the employer and the renewed member shall pay the applicable
  537  employer and employee contributions required under ss.
  538  121.051(2)(c) and 1012.875.
  539         (d) Employer and employee contributions, interest,
  540  earnings, or any other funds may not be paid into a renewed
  541  member’s optional retirement program account for any employment
  542  in a regularly established position with a covered employer on
  543  or after July 1, 2010, through June 30, 2017, by the renewed
  544  member or the employer on behalf of the renewed member.
  545         (e) Notwithstanding s. 121.4501(4)(f), the renewed member
  546  is not eligible to elect membership in the pension plan.
  547         Section 6. Paragraphs (e) and (i) of subsection (2),
  548  paragraph (b) of subsection (3), subsection (4), paragraph (c)
  549  of subsection (5), and paragraphs (a) and (h) of subsection (10)
  550  of section 121.4501, Florida Statutes, are amended to read:
  551         121.4501 Florida Retirement System Investment Plan.—
  552         (2) DEFINITIONS.—As used in this part, the term:
  553         (e) “Eligible employee” means an officer or employee, as
  554  defined in s. 121.021, who:
  555         1. Is a member of, or is eligible for membership in, the
  556  Florida Retirement System, including any renewed member of the
  557  Florida Retirement System initially enrolled before July 1,
  558  2010; or
  559         2. Participates in, or is eligible to participate in, the
  560  Senior Management Service Optional Annuity Program as
  561  established under s. 121.055(6), the State Community College
  562  System Optional Retirement Program as established under s.
  563  121.051(2)(c), or the State University System Optional
  564  Retirement Program established under s. 121.35; or
  565         3. Is a retired member of the investment plan, the State
  566  University System Optional Retirement Program, the Senior
  567  Management Service Optional Annuity Program, or the State
  568  Community College System Optional Retirement Program who is
  569  reemployed in a regularly established position on or after July
  570  1, 2017, and enrolled as a renewed member as provided in s.
  571  121.122.
  572  
  573  The term does not include any member participating in the
  574  Deferred Retirement Option Program established under s.
  575  121.091(13), a retiree of the pension plan who is reemployed in
  576  a regularly established position on or after July 1, 2010, a
  577  retiree of a state-administered retirement system initially
  578  reemployed in a regularly established position on or after July
  579  1, 2010, through June 30, 2017, or a mandatory participant of
  580  the State University System Optional Retirement Program
  581  established under s. 121.35.
  582         (i) “Member” or “employee” means an eligible employee who
  583  enrolls in, or who defaults into, the investment plan as
  584  provided in subsection (4), a terminated Deferred Retirement
  585  Option Program member as described in subsection (21), or a
  586  beneficiary or alternate payee of a member or employee.
  587         (3) RETIREMENT SERVICE CREDIT; TRANSFER OF BENEFITS.—
  588         (b) Notwithstanding paragraph (a), an eligible employee who
  589  elects to participate in, or who defaults into, the investment
  590  plan and establishes one or more individual member accounts may
  591  elect to transfer to the investment plan a sum representing the
  592  present value of the employee’s accumulated benefit obligation
  593  under the pension plan, except as provided in paragraph (4)(b).
  594  Upon transfer, all service credit earned under the pension plan
  595  is nullified for purposes of entitlement to a future benefit
  596  under the pension plan. A member may not transfer the
  597  accumulated benefit obligation balance from the pension plan
  598  after the time period for enrolling in the investment plan has
  599  expired.
  600         1. For purposes of this subsection, the present value of
  601  the member’s accumulated benefit obligation is based upon the
  602  member’s estimated creditable service and estimated average
  603  final compensation under the pension plan, subject to
  604  recomputation under subparagraph 2. For state employees, initial
  605  estimates shall be based upon creditable service and average
  606  final compensation as of midnight on June 30, 2002; for district
  607  school board employees, initial estimates shall be based upon
  608  creditable service and average final compensation as of midnight
  609  on September 30, 2002; and for local government employees,
  610  initial estimates shall be based upon creditable service and
  611  average final compensation as of midnight on December 31, 2002.
  612  The dates specified are the “estimate date” for these employees.
  613  The actuarial present value of the employee’s accumulated
  614  benefit obligation shall be based on the following:
  615         a. The discount rate and other relevant actuarial
  616  assumptions used to value the Florida Retirement System Trust
  617  Fund at the time the amount to be transferred is determined,
  618  consistent with the factors provided in sub-subparagraphs b. and
  619  c.
  620         b. A benefit commencement age, based on the member’s
  621  estimated creditable service as of the estimate date.
  622         c. Except as provided under sub-subparagraph d., for a
  623  member initially enrolled:
  624         (I) Before July 1, 2011, the benefit commencement age is
  625  the younger of the following, but may not be younger than the
  626  member’s age as of the estimate date:
  627         (A) Age 62; or
  628         (B) The age the member would attain if the member completed
  629  30 years of service with an employer, assuming the member worked
  630  continuously from the estimate date, and disregarding any
  631  vesting requirement that would otherwise apply under the pension
  632  plan.
  633         (II) On or after July 1, 2011, the benefit commencement age
  634  is the younger of the following, but may not be younger than the
  635  member’s age as of the estimate date:
  636         (A) Age 65; or
  637         (B) The age the member would attain if the member completed
  638  33 years of service with an employer, assuming the member worked
  639  continuously from the estimate date, and disregarding any
  640  vesting requirement that would otherwise apply under the pension
  641  plan.
  642         d. For members of the Special Risk Class and for members of
  643  the Special Risk Administrative Support Class entitled to retain
  644  the special risk normal retirement date:
  645         (I) Initially enrolled before July 1, 2011, the benefit
  646  commencement age is the younger of the following, but may not be
  647  younger than the member’s age as of the estimate date:
  648         (A) Age 55; or
  649         (B) The age the member would attain if the member completed
  650  25 years of service with an employer, assuming the member worked
  651  continuously from the estimate date, and disregarding any
  652  vesting requirement that would otherwise apply under the pension
  653  plan.
  654         (II) Initially enrolled on or after July 1, 2011, the
  655  benefit commencement age is the younger of the following, but
  656  may not be younger than the member’s age as of the estimate
  657  date:
  658         (A) Age 60; or
  659         (B) The age the member would attain if the member completed
  660  30 years of service with an employer, assuming the member worked
  661  continuously from the estimate date, and disregarding any
  662  vesting requirement that would otherwise apply under the pension
  663  plan.
  664         e. The calculation must disregard vesting requirements and
  665  early retirement reduction factors that would otherwise apply
  666  under the pension plan.
  667         2. For each member who elects to transfer moneys from the
  668  pension plan to his or her account in the investment plan, the
  669  division shall recompute the amount transferred under
  670  subparagraph 1. within 60 days after the actual transfer of
  671  funds based upon the member’s actual creditable service and
  672  actual final average compensation as of the initial date of
  673  participation in the investment plan. If the recomputed amount
  674  differs from the amount transferred by $10 or more, the division
  675  shall:
  676         a. Transfer, or cause to be transferred, from the Florida
  677  Retirement System Trust Fund to the member’s account the excess,
  678  if any, of the recomputed amount over the previously transferred
  679  amount together with interest from the initial date of transfer
  680  to the date of transfer under this subparagraph, based upon the
  681  effective annual interest equal to the assumed return on the
  682  actuarial investment which was used in the most recent actuarial
  683  valuation of the system, compounded annually.
  684         b. Transfer, or cause to be transferred, from the member’s
  685  account to the Florida Retirement System Trust Fund the excess,
  686  if any, of the previously transferred amount over the recomputed
  687  amount, together with interest from the initial date of transfer
  688  to the date of transfer under this subparagraph, based upon 6
  689  percent effective annual interest, compounded annually, pro rata
  690  based on the member’s allocation plan.
  691         3. If contribution adjustments are made as a result of
  692  employer errors or corrections, including plan corrections,
  693  following recomputation of the amount transferred under
  694  subparagraph 1., the member is entitled to the additional
  695  contributions or is responsible for returning any excess
  696  contributions resulting from the correction. However, a any
  697  return of such erroneous excess pretax contribution by the plan
  698  must be made within the period allowed by the Internal Revenue
  699  Service. The present value of the member’s accumulated benefit
  700  obligation may shall not be recalculated.
  701         4. As directed by the member, the state board shall
  702  transfer or cause to be transferred the appropriate amounts to
  703  the designated accounts within 30 days after the effective date
  704  of the member’s participation in the investment plan unless the
  705  major financial markets for securities available for a transfer
  706  are seriously disrupted by an unforeseen event that causes the
  707  suspension of trading on a any national securities exchange in
  708  the country where the securities were issued. In that event, the
  709  30-day period may be extended by a resolution of the state
  710  board. Transfers are not commissionable or subject to other fees
  711  and may be in the form of securities or cash, as determined by
  712  the state board. Such securities are valued as of the date of
  713  receipt in the member’s account.
  714         5. If the state board or the division receives notification
  715  from the United States Internal Revenue Service that this
  716  paragraph or any portion of this paragraph will cause the
  717  retirement system, or a portion thereof, to be disqualified for
  718  tax purposes under the Internal Revenue Code, the portion that
  719  will cause the disqualification does not apply. Upon such
  720  notice, the state board and the division shall notify the
  721  presiding officers of the Legislature.
  722         (4) PARTICIPATION; ENROLLMENT.—
  723         (a)1. Effective June 1, 2002, through February 28, 2003, a
  724  90-day election period was provided to each eligible employee
  725  participating in the Florida Retirement System, preceded by a
  726  90-day education period, permitting each eligible employee to
  727  elect membership in the investment plan. An employee who failed
  728  to elect the investment plan during the election period remained
  729  in the pension plan. An eligible employee who was employed in a
  730  regularly established position during the election period was
  731  granted the option to make one subsequent election, as provided
  732  in paragraph (f). With respect to an eligible employee who did
  733  not participate in the initial election period or who is
  734  initially employed in a regularly established position after the
  735  close of the initial election period but before January 1, 2018,
  736  on June 1, 2002, by a state employer:
  737         a. Any such employee may elect to participate in the
  738  investment plan in lieu of retaining his or her membership in
  739  the pension plan. The election must be made in writing or by
  740  electronic means and must be filed with the third-party
  741  administrator by August 31, 2002, or, in the case of an active
  742  employee who is on a leave of absence on April 1, 2002, by the
  743  last business day of the 5th month following the month the leave
  744  of absence concludes. This election is irrevocable, except as
  745  provided in paragraph (g). Upon making such election, the
  746  employee shall be enrolled as a member of the investment plan,
  747  the employee’s membership in the Florida Retirement System is
  748  governed by the provisions of this part, and the employee’s
  749  membership in the pension plan terminates. The employee’s
  750  enrollment in the investment plan is effective the first day of
  751  the month for which a full month’s employer contribution is made
  752  to the investment plan.
  753         b. Any such employee who fails to elect to participate in
  754  the investment plan within the prescribed time period is deemed
  755  to have elected to retain membership in the pension plan, and
  756  the employee’s option to elect to participate in the investment
  757  plan is forfeited.
  758         2. With respect to employees who become eligible to
  759  participate in the investment plan by reason of employment in a
  760  regularly established position with a state employer commencing
  761  after April 1, 2002:
  762         a. Any such employee shall, by default, be enrolled in the
  763  pension plan at the commencement of employment, and may, by the
  764  last business day of the 5th month following the employee’s
  765  month of hire, elect to participate in the investment plan. The
  766  employee’s election must be made in writing or by electronic
  767  means and must be filed with the third-party administrator. The
  768  election to participate in the investment plan is irrevocable,
  769  except as provided in paragraph (f) (g).
  770         a.b. If the employee files such election within the
  771  prescribed time period, enrollment in the investment plan is
  772  effective on the first day of employment. The retirement
  773  contributions paid through the month of the employee plan change
  774  shall be transferred to the investment program, and, effective
  775  the first day of the next month, the employer and employee must
  776  pay the applicable contributions based on the employee
  777  membership class in the program.
  778         b.c. An employee who fails to elect to participate in the
  779  investment plan within the prescribed time period is deemed to
  780  have elected to retain membership in the pension plan, and the
  781  employee’s option to elect to participate in the investment plan
  782  is forfeited.
  783         2.3. With respect to employees who become eligible to
  784  participate in the investment plan pursuant to s.
  785  121.051(2)(c)3. or s. 121.35(3)(i), the employee may elect to
  786  participate in the investment plan in lieu of retaining his or
  787  her membership in the State Community College System Optional
  788  Retirement Program or the State University System Optional
  789  Retirement Program. The election must be made in writing or by
  790  electronic means and must be filed with the third-party
  791  administrator. This election is irrevocable, except as provided
  792  in paragraph (f) (g). Upon making such election, the employee
  793  shall be enrolled as a member in the investment plan, the
  794  employee’s membership in the Florida Retirement System is
  795  governed by the provisions of this part, and the employee’s
  796  participation in the State Community College System Optional
  797  Retirement Program or the State University System Optional
  798  Retirement Program terminates. The employee’s enrollment in the
  799  investment plan is effective on the first day of the month for
  800  which a full month’s employer and employee contribution is made
  801  to the investment plan.
  802         (b)1. With respect to employees who become eligible to
  803  participate in the investment plan by reason of employment in a
  804  regularly established position commencing on or after January 1,
  805  2018, or who did not complete an election window before January
  806  1, 2018, any such employee shall be enrolled in the pension plan
  807  at the commencement of employment and may, by the last business
  808  day of the fifth month following the employee’s month of hire,
  809  elect to participate in the pension plan or the investment plan.
  810  Eligible employees may make a plan election only if they are
  811  earning service credit in an employer-employee relationship
  812  consistent with s. 121.021(17)(b), excluding leaves of absence
  813  without pay.
  814         2. The employee’s election must be made in writing or by
  815  electronic means and must be filed with the third-party
  816  administrator. The election to participate in the pension plan
  817  or investment plan is irrevocable, except as provided in
  818  paragraph (f).
  819         3. If the employee fails to make an election of the pension
  820  plan or investment plan within 5 months following the month of
  821  hire, the employee is deemed to have elected the investment plan
  822  and shall default into the investment plan retroactively to the
  823  employee’s date of employment. The employee’s option to
  824  participate in the pension plan is forfeited, except as provided
  825  in paragraph (f).
  826         4. The amount of the employee and employer contributions
  827  paid through the date of default to the investment plan shall be
  828  transferred to the investment plan and shall be placed in a
  829  default fund as designated by the State Board of Administration.
  830  The employee may move the contributions once an account is
  831  activated in the investment plan.
  832         5. Effective the first day of the month after an eligible
  833  employee makes a plan election of the pension plan or investment
  834  plan, or the first day of the month after default to the
  835  investment plan, the employee and employer shall pay the
  836  applicable contributions based on the employee membership class
  837  in the program.
  838         4. For purposes of this paragraph, “state employer” means
  839  any agency, board, branch, commission, community college,
  840  department, institution, institution of higher education, or
  841  water management district of the state, which participates in
  842  the Florida Retirement System for the benefit of certain
  843  employees.
  844         (b)1. With respect to an eligible employee who is employed
  845  in a regularly established position on September 1, 2002, by a
  846  district school board employer:
  847         a. Any such employee may elect to participate in the
  848  investment plan in lieu of retaining his or her membership in
  849  the pension plan. The election must be made in writing or by
  850  electronic means and must be filed with the third-party
  851  administrator by November 30, or, in the case of an active
  852  employee who is on a leave of absence on July 1, 2002, by the
  853  last business day of the 5th month following the month the leave
  854  of absence concludes. This election is irrevocable, except as
  855  provided in paragraph (g). Upon making such election, the
  856  employee shall be enrolled as a member of the investment plan,
  857  the employee’s membership in the Florida Retirement System is
  858  governed by the provisions of this part, and the employee’s
  859  membership in the pension plan terminates. The employee’s
  860  enrollment in the investment plan is effective the first day of
  861  the month for which a full month’s employer contribution is made
  862  to the investment program.
  863         b. Any such employee who fails to elect to participate in
  864  the investment plan within the prescribed time period is deemed
  865  to have elected to retain membership in the pension plan, and
  866  the employee’s option to elect to participate in the investment
  867  plan is forfeited.
  868         2. With respect to employees who become eligible to
  869  participate in the investment plan by reason of employment in a
  870  regularly established position with a district school board
  871  employer commencing after July 1, 2002:
  872         a. Any such employee shall, by default, be enrolled in the
  873  pension plan at the commencement of employment, and may, by the
  874  last business day of the 5th month following the employee’s
  875  month of hire, elect to participate in the investment plan. The
  876  employee’s election must be made in writing or by electronic
  877  means and must be filed with the third-party administrator. The
  878  election to participate in the investment plan is irrevocable,
  879  except as provided in paragraph (g).
  880         b. If the employee files such election within the
  881  prescribed time period, enrollment in the investment plan is
  882  effective on the first day of employment. The employer
  883  retirement contributions paid through the month of the employee
  884  plan change shall be transferred to the investment plan, and,
  885  effective the first day of the next month, the employer shall
  886  pay the applicable contributions based on the employee
  887  membership class in the investment plan.
  888         c. Any such employee who fails to elect to participate in
  889  the investment plan within the prescribed time period is deemed
  890  to have elected to retain membership in the pension plan, and
  891  the employee’s option to elect to participate in the investment
  892  plan is forfeited.
  893         3. For purposes of this paragraph, “district school board
  894  employer” means any district school board that participates in
  895  the Florida Retirement System for the benefit of certain
  896  employees, or a charter school or charter technical career
  897  center that participates in the Florida Retirement System as
  898  provided in s. 121.051(2)(d).
  899         (c)1. With respect to an eligible employee who is employed
  900  in a regularly established position on December 1, 2002, by a
  901  local employer:
  902         a. Any such employee may elect to participate in the
  903  investment plan in lieu of retaining his or her membership in
  904  the pension plan. The election must be made in writing or by
  905  electronic means and must be filed with the third-party
  906  administrator by February 28, 2003, or, in the case of an active
  907  employee who is on a leave of absence on October 1, 2002, by the
  908  last business day of the 5th month following the month the leave
  909  of absence concludes. This election is irrevocable, except as
  910  provided in paragraph (g). Upon making such election, the
  911  employee shall be enrolled as a participant of the investment
  912  plan, the employee’s membership in the Florida Retirement System
  913  is governed by the provisions of this part, and the employee’s
  914  membership in the pension plan terminates. The employee’s
  915  enrollment in the investment plan is effective the first day of
  916  the month for which a full month’s employer contribution is made
  917  to the investment plan.
  918         b. Any such employee who fails to elect to participate in
  919  the investment plan within the prescribed time period is deemed
  920  to have elected to retain membership in the pension plan, and
  921  the employee’s option to elect to participate in the investment
  922  plan is forfeited.
  923         2. With respect to employees who become eligible to
  924  participate in the investment plan by reason of employment in a
  925  regularly established position with a local employer commencing
  926  after October 1, 2002:
  927         a. Any such employee shall, by default, be enrolled in the
  928  pension plan at the commencement of employment, and may, by the
  929  last business day of the 5th month following the employee’s
  930  month of hire, elect to participate in the investment plan. The
  931  employee’s election must be made in writing or by electronic
  932  means and must be filed with the third-party administrator. The
  933  election to participate in the investment plan is irrevocable,
  934  except as provided in paragraph (g).
  935         b. If the employee files such election within the
  936  prescribed time period, enrollment in the investment plan is
  937  effective on the first day of employment. The employer
  938  retirement contributions paid through the month of the employee
  939  plan change shall be transferred to the investment plan, and,
  940  effective the first day of the next month, the employer shall
  941  pay the applicable contributions based on the employee
  942  membership class in the investment plan.
  943         c. Any such employee who fails to elect to participate in
  944  the investment plan within the prescribed time period is deemed
  945  to have elected to retain membership in the pension plan, and
  946  the employee’s option to elect to participate in the investment
  947  plan is forfeited.
  948         3. For purposes of this paragraph, “local employer” means
  949  any employer not included in paragraph (a) or paragraph (b).
  950         (c)(d) Contributions available for self-direction by a
  951  member who has not selected one or more specific investment
  952  products shall be allocated as prescribed by the state board.
  953  The third-party administrator shall notify the member at least
  954  quarterly that the member should take an affirmative action to
  955  make an asset allocation among the investment products.
  956         (d)(e) On or after July 1, 2011, a member of the pension
  957  plan who obtains a refund of employee contributions retains his
  958  or her prior plan choice upon return to employment in a
  959  regularly established position with a participating employer.
  960         (e)1.(f) A member of the investment plan who takes a
  961  distribution of any contributions from his or her investment
  962  plan account is considered a retiree. A retiree who is initially
  963  reemployed in a regularly established position on or after July
  964  1, 2010, through June 30, 2017, is not eligible for to be
  965  enrolled in renewed membership, except as provided in s.
  966  121.122.
  967         2. A retiree who is reemployed on or after July 1, 2017,
  968  shall be enrolled as a renewed member as provided in s. 121.122.
  969         (f)(g) After the period during which an eligible employee
  970  had the choice to elect the pension plan or the investment plan,
  971  or the month following the receipt of the eligible employee’s
  972  plan election, if sooner, the employee shall have one
  973  opportunity, at the employee’s discretion, to choose to move
  974  from the pension plan to the investment plan or from the
  975  investment plan to the pension plan. Eligible employees may
  976  elect to move between plans only if they are earning service
  977  credit in an employer-employee relationship consistent with s.
  978  121.021(17)(b), excluding leaves of absence without pay.
  979  Effective July 1, 2005, such elections are effective on the
  980  first day of the month following the receipt of the election by
  981  the third-party administrator and are not subject to the
  982  requirements regarding an employer-employee relationship or
  983  receipt of contributions for the eligible employee in the
  984  effective month, except when the election is received by the
  985  third-party administrator. This paragraph is contingent upon
  986  approval by the Internal Revenue Service.
  987         1. If the employee chooses to move to the investment plan,
  988  the provisions of subsection (3) govern the transfer.
  989         2. If the employee chooses to move to the pension plan, the
  990  employee must transfer from his or her investment plan account,
  991  and from other employee moneys as necessary, a sum representing
  992  the present value of that employee’s accumulated benefit
  993  obligation immediately following the time of such movement,
  994  determined assuming that attained service equals the sum of
  995  service in the pension plan and service in the investment plan.
  996  Benefit commencement occurs on the first date the employee is
  997  eligible for unreduced benefits, using the discount rate and
  998  other relevant actuarial assumptions that were used to value the
  999  pension plan liabilities in the most recent actuarial valuation.
 1000  For any employee who, at the time of the second election,
 1001  already maintains an accrued benefit amount in the pension plan,
 1002  the then-present value of the accrued benefit is deemed part of
 1003  the required transfer amount. The division must ensure that the
 1004  transfer sum is prepared using a formula and methodology
 1005  certified by an enrolled actuary. A refund of any employee
 1006  contributions or additional member payments made which exceed
 1007  the employee contributions that would have accrued had the
 1008  member remained in the pension plan and not transferred to the
 1009  investment plan is not permitted.
 1010         3. Notwithstanding subparagraph 2., an employee who chooses
 1011  to move to the pension plan and who became eligible to
 1012  participate in the investment plan by reason of employment in a
 1013  regularly established position with a state employer after June
 1014  1, 2002; a district school board employer after September 1,
 1015  2002; or a local employer after December 1, 2002, must transfer
 1016  from his or her investment plan account, and from other employee
 1017  moneys as necessary, a sum representing the employee’s actuarial
 1018  accrued liability. A refund of any employee contributions or
 1019  additional member participant payments made which exceed the
 1020  employee contributions that would have accrued had the member
 1021  remained in the pension plan and not transferred to the
 1022  investment plan is not permitted.
 1023         4. An employee’s ability to transfer from the pension plan
 1024  to the investment plan pursuant to paragraphs (a) and (b) (a)
 1025  (d), and the ability of a current employee to have an option to
 1026  later transfer back into the pension plan under subparagraph 2.,
 1027  shall be deemed a significant system amendment. Pursuant to s.
 1028  121.031(4), any resulting unfunded liability arising from actual
 1029  original transfers from the pension plan to the investment plan
 1030  must be amortized within 30 plan years as a separate unfunded
 1031  actuarial base independent of the reserve stabilization
 1032  mechanism defined in s. 121.031(3)(f). For the first 25 years, a
 1033  direct amortization payment may not be calculated for this base.
 1034  During this 25-year period, the separate base shall be used to
 1035  offset the impact of employees exercising their second program
 1036  election under this paragraph. The actuarial funded status of
 1037  the pension plan will not be affected by such second program
 1038  elections in any significant manner, after due recognition of
 1039  the separate unfunded actuarial base. Following the initial 25
 1040  year period, any remaining balance of the original separate base
 1041  shall be amortized over the remaining 5 years of the required
 1042  30-year amortization period.
 1043         5. If the employee chooses to transfer from the investment
 1044  plan to the pension plan and retains an excess account balance
 1045  in the investment plan after satisfying the buy-in requirements
 1046  under this paragraph, the excess may not be distributed until
 1047  the member retires from the pension plan. The excess account
 1048  balance may be rolled over to the pension plan and used to
 1049  purchase service credit or upgrade creditable service in the
 1050  pension plan.
 1051         (5) CONTRIBUTIONS.—
 1052         (c) The state board, acting as plan fiduciary, must ensure
 1053  that all plan assets are held in a trust, pursuant to s. 401 of
 1054  the Internal Revenue Code. The fiduciary must ensure that such
 1055  contributions are allocated as follows:
 1056         1. The employer and employee contribution portion earmarked
 1057  for member accounts shall be used to purchase interests in the
 1058  appropriate investment vehicles as specified by the member, or
 1059  in accordance with paragraph (4)(c) (4)(d).
 1060         2. The employer contribution portion earmarked for
 1061  administrative and educational expenses shall be transferred to
 1062  the state board’s Administrative Trust Fund.
 1063         3. The employer contribution portion earmarked for
 1064  disability benefits and line-of-duty death benefits shall be
 1065  transferred to the Florida Retirement System Trust Fund.
 1066         (10) EDUCATION COMPONENT.—
 1067         (a) The state board, in coordination with the department,
 1068  shall provide for an education component for eligible employees
 1069  system members in a manner consistent with the provisions of
 1070  this subsection section. The education component must be
 1071  available to eligible employees at least 90 days prior to the
 1072  beginning date of the election period for the employees of the
 1073  respective types of employers.
 1074         (h) Pursuant to subsection (8), all Florida Retirement
 1075  System employers have an obligation to regularly communicate the
 1076  existence of the two Florida Retirement System plans and the
 1077  plan choice in the natural course of administering their
 1078  personnel functions, using the educational materials supplied by
 1079  the state board and the Department of Management Services.
 1080         Section 7. Subsection (4) of section 121.591, Florida
 1081  Statutes, is amended to read:
 1082         121.591 Payment of benefits.—Benefits may not be paid under
 1083  the Florida Retirement System Investment Plan unless the member
 1084  has terminated employment as provided in s. 121.021(39)(a) or is
 1085  deceased and a proper application has been filed as prescribed
 1086  by the state board or the department. Benefits, including
 1087  employee contributions, are not payable under the investment
 1088  plan for employee hardships, unforeseeable emergencies, loans,
 1089  medical expenses, educational expenses, purchase of a principal
 1090  residence, payments necessary to prevent eviction or foreclosure
 1091  on an employee’s principal residence, or any other reason except
 1092  a requested distribution for retirement, a mandatory de minimis
 1093  distribution authorized by the administrator, or a required
 1094  minimum distribution provided pursuant to the Internal Revenue
 1095  Code. The state board or department, as appropriate, may cancel
 1096  an application for retirement benefits if the member or
 1097  beneficiary fails to timely provide the information and
 1098  documents required by this chapter and the rules of the state
 1099  board and department. In accordance with their respective
 1100  responsibilities, the state board and the department shall adopt
 1101  rules establishing procedures for application for retirement
 1102  benefits and for the cancellation of such application if the
 1103  required information or documents are not received. The state
 1104  board and the department, as appropriate, are authorized to cash
 1105  out a de minimis account of a member who has been terminated
 1106  from Florida Retirement System covered employment for a minimum
 1107  of 6 calendar months. A de minimis account is an account
 1108  containing employer and employee contributions and accumulated
 1109  earnings of not more than $5,000 made under the provisions of
 1110  this chapter. Such cash-out must be a complete lump-sum
 1111  liquidation of the account balance, subject to the provisions of
 1112  the Internal Revenue Code, or a lump-sum direct rollover
 1113  distribution paid directly to the custodian of an eligible
 1114  retirement plan, as defined by the Internal Revenue Code, on
 1115  behalf of the member. Any nonvested accumulations and associated
 1116  service credit, including amounts transferred to the suspense
 1117  account of the Florida Retirement System Investment Plan Trust
 1118  Fund authorized under s. 121.4501(6), shall be forfeited upon
 1119  payment of any vested benefit to a member or beneficiary, except
 1120  for de minimis distributions or minimum required distributions
 1121  as provided under this section. If any financial instrument
 1122  issued for the payment of retirement benefits under this section
 1123  is not presented for payment within 180 days after the last day
 1124  of the month in which it was originally issued, the third-party
 1125  administrator or other duly authorized agent of the state board
 1126  shall cancel the instrument and credit the amount of the
 1127  instrument to the suspense account of the Florida Retirement
 1128  System Investment Plan Trust Fund authorized under s.
 1129  121.4501(6). Any amounts transferred to the suspense account are
 1130  payable upon a proper application, not to include earnings
 1131  thereon, as provided in this section, within 10 years after the
 1132  last day of the month in which the instrument was originally
 1133  issued, after which time such amounts and any earnings
 1134  attributable to employer contributions shall be forfeited. Any
 1135  forfeited amounts are assets of the trust fund and are not
 1136  subject to chapter 717.
 1137         (4) LINE-OF-DUTY DEATH BENEFITS FOR INVESTMENT PLAN SPECIAL
 1138  RISK CLASS MEMBERS.—Benefits are provided under this subsection
 1139  to the spouse and child or children of members in the investment
 1140  plan Special Risk Class when such members are killed in the line
 1141  of duty and are payable in lieu of the benefits that would
 1142  otherwise be payable under subsection (1) or subsection (3).
 1143  Benefits provided by this subsection supersede any other
 1144  distribution that may have been provided by the member’s
 1145  designation of beneficiary. Such benefits must be funded from
 1146  employer contributions made under s. 121.571, transferred
 1147  employee contributions and funds accumulated pursuant to
 1148  paragraph (a), and interest and earnings thereon.
 1149         (a) Transfer of funds.—To qualify to receive monthly
 1150  benefits under this subsection:
 1151         1. All moneys accumulated in the member’s account,
 1152  including vested and nonvested accumulations as described in s.
 1153  121.4501(6), must be transferred from such individual accounts
 1154  to the division for deposit in the survivor benefit account of
 1155  the Florida Retirement System Trust Fund. Moneys in the survivor
 1156  benefit account must be accounted for separately. Earnings must
 1157  be credited on an annual basis for amounts held in the survivor
 1158  benefit account of the Florida Retirement System Trust Fund
 1159  based on actual earnings of the trust fund.
 1160         2. If the member has retained retirement credit earned
 1161  under the pension plan as provided in s. 121.4501(3), a sum
 1162  representing the actuarial present value of such credit within
 1163  the Florida Retirement System Trust Fund shall be transferred by
 1164  the division from the pension plan to the survivor benefit
 1165  retirement program as implemented under this subsection and
 1166  shall be deposited in the survivor benefit account of the trust
 1167  fund.
 1168         (b) Survivor retirement; entitlement.—An investment plan
 1169  member who is in the Special Risk Class at the time the member
 1170  is killed in the line of duty on or after July 1, 2002 2013,
 1171  regardless of length of creditable service, may have survivor
 1172  benefits paid as provided in s. 121.091(7)(d) and (i) to:
 1173         1. The surviving spouse for the spouse’s lifetime; or
 1174         2. If there is no surviving spouse or the surviving spouse
 1175  dies, the member’s child or children under 18 years of age and
 1176  unmarried until the 18th birthday of the member’s youngest
 1177  child. Such payments may be extended until the 25th birthday of
 1178  any child of the member if the child is unmarried and enrolled
 1179  as a full-time student as provided in s. 121.091(7)(d) and (i).
 1180         (c) Survivor benefit retirement effective date.—
 1181         1. The effective retirement date for the surviving spouse
 1182  or eligible child of a Special Risk Class member who is killed
 1183  in the line of duty is:
 1184         a.1. The first day of the month following the member’s
 1185  death if the member dies on or after July 1, 2016.
 1186         b.2. July 1, 2016, for a member of the Special Risk Class
 1187  when killed in the line of duty on or after July 1, 2013, but
 1188  before July 1, 2016, if the application is received before July
 1189  1, 2016; or the first day of the month following the receipt of
 1190  such application.
 1191         2. Except as provided in subparagraph 1., the effective
 1192  retirement date for the surviving spouse or eligible child of an
 1193  investment plan member who is killed in the line of duty is:
 1194         a. The first day of the month following the member’s death
 1195  if the member dies on or after July 1, 2017.
 1196         b. July 1, 2017, if the member is killed in the line of
 1197  duty on or after July 1, 2002, but before July 1, 2017, if the
 1198  application is received before July 1, 2017; or the first day of
 1199  the month following the receipt of such application.
 1200  
 1201  If the investment plan account balance has already been paid out
 1202  to the surviving spouse or the eligible unmarried dependent
 1203  child or children, the benefit payable shall be actuarially
 1204  reduced by the amount of the payout.
 1205         (d) Line-of-duty death benefit.—
 1206         1. The following individuals are eligible to receive a
 1207  retirement benefit under s. 121.091(7)(d) and (i) if the
 1208  member’s account balance is surrendered and an application is
 1209  received and approved:
 1210         a. The surviving spouse.
 1211         b. If there is no surviving spouse or the surviving spouse
 1212  dies, the member’s child or children under 18 years of age and
 1213  unmarried until the 18th birthday of the member’s youngest
 1214  child, or until the 25th birthday of the member’s child if the
 1215  child is unmarried and enrolled as a full-time student.
 1216         2. Such surviving spouse or such child or children shall
 1217  receive a monthly survivor benefit that begins accruing on the
 1218  first day of the month of survivor benefit retirement, as
 1219  approved by the division, and is payable on the last day of that
 1220  month and each month thereafter during the surviving spouse’s
 1221  lifetime or on behalf of the unmarried children of the member
 1222  until the 18th birthday of the youngest child, or until the 25th
 1223  birthday of any of the member’s unmarried children who are
 1224  enrolled as full-time students. Survivor benefits must be paid
 1225  out of the survivor benefit account of the Florida Retirement
 1226  System Trust Fund established under this subsection.
 1227  
 1228  If the investment plan account balance has already been paid out
 1229  to the surviving spouse or the eligible unmarried dependent
 1230  child or children, the benefit payable shall be actuarially
 1231  reduced by the amount of the payout.
 1232         (e) Computation of survivor benefit retirement benefit.—The
 1233  amount of each monthly payment must be calculated as provided
 1234  under s. 121.091(7)(d) and (i).
 1235         (f) Death of the surviving spouse or children.—
 1236         1. Upon the death of a surviving spouse, the monthly
 1237  benefits shall be paid through the last day of the month of
 1238  death and shall terminate or be paid on behalf of the unmarried
 1239  child or children until the 18th birthday of the youngest child,
 1240  or the 25th birthday of any of the member’s unmarried children
 1241  who are enrolled as full-time students.
 1242         2. If the surviving spouse dies and the benefits are being
 1243  paid on behalf of the member’s unmarried children as provided in
 1244  subparagraph 1., benefits shall be paid through the last day of
 1245  the month until the later of the month the youngest child
 1246  reaches his or her 18th birthday, the month of the 25th birthday
 1247  of any of the member’s unmarried children enrolled as full-time
 1248  students, or the month of the death of the youngest child.
 1249         Section 8. Section 121.5912, Florida Statutes, is amended
 1250  to read:
 1251         121.5912 Survivor benefit retirement program; qualified
 1252  status; rulemaking authority.—It is the intent of the
 1253  Legislature that the survivor benefit retirement program for
 1254  Special Risk Class members of the Florida Retirement System
 1255  Investment Plan meet all applicable requirements for a qualified
 1256  plan. If the state board or the division receives notification
 1257  from the Internal Revenue Service that this program or any
 1258  portion of this program will cause the retirement system, or any
 1259  portion thereof, to be disqualified for tax purposes under the
 1260  Internal Revenue Code, the portion that will cause the
 1261  disqualification does not apply. Upon such notice, the state
 1262  board or the division shall notify the presiding officers of the
 1263  Legislature. The state board and the department may adopt any
 1264  rules necessary to maintain the qualified status of the survivor
 1265  benefit retirement program.
 1266         Section 9. Subsections (1) and (3) of section 121.735,
 1267  Florida Statutes, are amended to read:
 1268         121.735 Allocations for member line-of-duty death benefits;
 1269  percentage amounts.—
 1270         (1) The allocations established in subsection (3) shall be
 1271  used to provide line-of-duty death benefit coverage for Special
 1272  Risk Class members in the investment plan and shall be
 1273  transferred monthly by the division from the Florida Retirement
 1274  System Contributions Clearing Trust Fund to the survivor benefit
 1275  account of the Florida Retirement System Trust Fund.
 1276         (3) Effective July 1, 2017 2016, allocations from the
 1277  Florida Retirement System Contributions Clearing Trust Fund to
 1278  provide line-of-duty death benefits for Special Risk Class
 1279  members in the investment plan and to offset the costs of
 1280  administering said coverage, are as follows:
 1281  
 1282  Membership Class                  Percentage of Gross Compensation 
 1283  
 1284  Regular Class                                  0.05%               
 1285  Special Risk Class                          1.15% 0.82%            
 1286  Special Risk Administrative Support Class              0.03%               
 1287  Elected Officers’ Class—Legislators, Governor,Lt. Governor, Cabinet Officers,State Attorneys, Public Defenders              0.15%               
 1288  Elected Officers’ Class—Justices, Judges              0.09%               
 1289  Elected Officers’ Class—County Elected Officers              0.20%               
 1290  Senior Management Service Class                0.05%               
 1291         Section 10. The Legislature shall review the current status
 1292  of research programs, funded wholly or in part by the General
 1293  Appropriations Act, which study the incidence of cancer in
 1294  firefighters. This review must be conducted before the convening
 1295  of the 2018 Regular Session of the Legislature to determine
 1296  whether any further statutory changes are necessary as a result
 1297  of the enactment of s. 112.1816, Florida Statutes, by this act.
 1298         Section 11. (1) In order to fund the benefit changes
 1299  provided in this act, the required employer contribution rate
 1300  for members of the Florida Retirement System established in s.
 1301  121.71(4), Florida Statutes, are adjusted as follows:
 1302         (a) The Regular Class is increased by 0.01 percentage
 1303  point.
 1304         (b) The Special Risk Class is increased by 0.06 percentage
 1305  point.
 1306         (c) The Special Risk Administrative Support Class is
 1307  increased by 0.02 percentage point.
 1308         (d) The Elected Officers’ Class—Legislators, Governor, Lt.
 1309  Governor, Cabinet Officers, State Attorneys, and Public
 1310  Defenders is increased by 0.04 percentage point.
 1311         (e) The Elected Officers’ Class—Justices, Judges is
 1312  increased by 0.01 percentage point.
 1313         (f) The Elected Officers’ Class—County Elected Officers is
 1314  increased by 0.06 percentage point.
 1315         (g) The Senior Management Service Class is increased by
 1316  0.01 percentage point.
 1317         (2) In order to fund the benefit changes provided in this
 1318  act, the required employer contribution rate for the unfunded
 1319  actuarial liability of the Florida Retirement System established
 1320  in s. 121.71(5), Florida Statutes, for the Special Risk Class is
 1321  increased by 0.12 percentage point.
 1322         (3) The adjustments provided in subsections (1) and (2) are
 1323  in addition to any other changes to such contribution rates
 1324  which may be enacted into law to take effect on July 1, 2017.
 1325  The Division of Law Revision and Information is directed to
 1326  adjust accordingly the contribution rates provided in s. 121.71,
 1327  Florida Statutes.
 1328         Section 12. The Legislature finds that a proper and
 1329  legitimate state purpose is served when employees and retirees
 1330  of the state and its political subdivisions, and the dependents,
 1331  survivors, and beneficiaries of such employees and retirees, are
 1332  extended the basic protections afforded by governmental
 1333  retirement systems. These persons must be provided benefits that
 1334  are fair and adequate and that are managed, administered, and
 1335  funded in an actuarially sound manner, as required by s. 14,
 1336  Article X of the State Constitution and part VII of chapter 112,
 1337  Florida Statutes. Therefore, the Legislature determines and
 1338  declares that this act fulfills an important state interest.
 1339         Section 13. This act shall take effect July 1, 2017.