Florida Senate - 2021                   (PROPOSED BILL) SPB 7016
       FOR CONSIDERATION By the Committee on Governmental Oversight and
       585-01029-21                                          20217016pb
    1                        A bill to be entitled                      
    2         An act relating to the Florida Retirement System
    3         Investment Plan; amending s. 121.091, F.S.; specifying
    4         conditions under which the State Board of
    5         Administration may not pay retirement benefits to a
    6         Florida Retirement System member; amending s.
    7         121.4501, F.S.; authorizing the State Board of
    8         Administration to develop investment products to be
    9         offered in the investment plan; modifying procedures
   10         governing an investment plan member’s designation of a
   11         beneficiary other than the member’s spouse; providing
   12         an effective date.
   14  Be It Enacted by the Legislature of the State of Florida:
   16         Section 1. Paragraphs (i) and (k) of subsection (5) of
   17  section 121.091, Florida Statutes, are amended to read:
   18         121.091 Benefits payable under the system.—Benefits may not
   19  be paid under this section unless the member has terminated
   20  employment as provided in s. 121.021(39)(a) or begun
   21  participation in the Deferred Retirement Option Program as
   22  provided in subsection (13), and a proper application has been
   23  filed in the manner prescribed by the department. The department
   24  may cancel an application for retirement benefits when the
   25  member or beneficiary fails to timely provide the information
   26  and documents required by this chapter and the department’s
   27  rules. The department shall adopt rules establishing procedures
   28  for application for retirement benefits and for the cancellation
   29  of such application when the required information or documents
   30  are not received.
   31         (5) TERMINATION BENEFITS.—A member whose employment is
   32  terminated prior to retirement retains membership rights to
   33  previously earned member-noncontributory service credit, and to
   34  member-contributory service credit, if the member leaves the
   35  member contributions on deposit in his or her retirement
   36  account. If a terminated member receives a refund of member
   37  contributions, such member may reinstate membership rights to
   38  the previously earned service credit represented by the refund
   39  by completing 1 year of creditable service and repaying the
   40  refunded member contributions, plus interest.
   41         (i) The division or the state board may not pay benefits to
   42  any member convicted of a felony committed on or after October
   43  1, 2008, defined in s. 800.04 against a victim younger than 16
   44  years of age, or defined in chapter 794 against a victim younger
   45  than 18 years of age, through the use or attempted use of power,
   46  rights, privileges, duties, or position of the member’s public
   47  office or employment position. However, the division or the
   48  state board shall return the member’s accumulated contributions,
   49  if any, that the member accumulated as of the date of
   50  conviction.
   51         (k) Benefits shall not be paid by the division or the state
   52  board pending final resolution of such charges against a member
   53  or beneficiary if the resolution of such charges could require
   54  the forfeiture of benefits as provided in paragraph (f),
   55  paragraph (g), paragraph (h), paragraph (i), or paragraph (j),
   56  or chapter 112.
   57         Section 2. Subsection (20) of section 121.4501, Florida
   58  Statutes, is amended, and paragraph (h) is added to subsection
   59  (8) of that section, to read:
   60         121.4501 Florida Retirement System Investment Plan.—
   61         (8) INVESTMENT PLAN ADMINISTRATION.—The investment plan
   62  shall be administered by the state board and affected employers.
   63  The state board may require oaths, by affidavit or otherwise,
   64  and acknowledgments from persons in connection with the
   65  administration of its statutory duties and responsibilities for
   66  the investment plan. An oath, by affidavit or otherwise, may not
   67  be required of a member at the time of enrollment.
   68  Acknowledgment of an employee’s election to participate in the
   69  program shall be no greater than necessary to confirm the
   70  employee’s election. The state board shall adopt rules to carry
   71  out its statutory duties with respect to administering the
   72  investment plan, including establishing the roles and
   73  responsibilities of affected state, local government, and
   74  education-related employers, the state board, the department,
   75  and third-party contractors. The department shall adopt rules
   76  necessary to administer the investment plan in coordination with
   77  the pension plan and the disability benefits available under the
   78  investment plan.
   79         (h) The state board, consistent with its fiduciary
   80  responsibilities, may develop one or more investment products to
   81  be offered in the investment plan.
   83         (a) Each member may, by electronic means or on a form
   84  provided for that purpose, signed and filed with the third-party
   85  administrator, designate a choice of one or more persons, named
   86  sequentially or jointly, as his or her beneficiary for receiving
   87  the benefits, if any, which may be payable pursuant to this
   88  chapter in the event of the member’s death. If no beneficiary is
   89  named in this manner, or if no beneficiary designated by the
   90  member survives the member, the beneficiary shall be the spouse
   91  of the deceased, if living. If the member’s spouse is not alive
   92  at the time of the member’s death, the beneficiary shall be the
   93  living children of the member. If no children survive, the
   94  beneficiary shall be the member’s father or mother, if living;
   95  otherwise, the beneficiary shall be the member’s estate. The
   96  beneficiary most recently designated by a member shall be the
   97  beneficiary entitled to any benefits payable at the time of the
   98  member’s death. However, for a member who dies before prior to
   99  his or her effective date of retirement, the spouse at the time
  100  of death shall be the member’s beneficiary unless the member
  101  designates a different beneficiary subsequent to the member’s
  102  most recent marriage.
  103         (b) If a member is married but does not designate the
  104  member’s spouse as designates a primary beneficiary, the spouse
  105  must be notified and acknowledge any such designation.
  106  Notwithstanding the foregoing, if the spouse cannot be located
  107  or fails to affirmatively acknowledge such designation, the
  108  member may request that the acknowledgment requirement be waived
  109  by the state board through an affidavit setting forth the
  110  particular facts and circumstances other than the member’s
  111  spouse, the member’s spouse must sign the beneficiary
  112  designation form to acknowledge the designation. This
  113  requirement does not apply to the designation of one or more
  114  contingent beneficiaries to receive benefits remaining upon the
  115  death of the primary beneficiary or beneficiaries.
  116         (c) Notwithstanding the member’s designation of benefits to
  117  be paid through a trust to a beneficiary that is a natural
  118  person and the provisions of the trust, benefits must be paid
  119  directly to the beneficiary if the person is no longer a minor
  120  or an incapacitated person as defined in s. 744.102.
  121         Section 3. This act shall take effect July 1, 2021.