Bill Amendment: FL S1114 | 2014 | Regular Session
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: Retirement
Status: 2014-05-02 - Died on Calendar, companion bill(s) passed, see HB 5005 (Ch. 2014-54) [S1114 Detail]
Download: Florida-2014-S1114-Senate_Committee_Amendment_343792.html
Bill Title: Retirement
Status: 2014-05-02 - Died on Calendar, companion bill(s) passed, see HB 5005 (Ch. 2014-54) [S1114 Detail]
Download: Florida-2014-S1114-Senate_Committee_Amendment_343792.html
Florida Senate - 2014 COMMITTEE AMENDMENT Bill No. CS for SB 1114 Ì343792>Î343792 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Appropriations (Galvano) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete lines 140 - 1791 4 and insert: 5 Section 2. Present subsections (3) through (9) of section 6 121.051, Florida Statutes, are renumbered as subsections (4) 7 through (10), respectively, and a new subsection (3) is added to 8 that section, to read: 9 121.051 Participation in the system.— 10 (3) COMPULSORY INVESTMENT PLAN MEMBERSHIP.—Except for 11 members of the Elected Officers’ Class eligible to withdraw from 12 the Florida Retirement System under s. 121.052(3)(d) or eligible 13 for optional retirement programs under s. 121.051(1)(a), s. 14 121.051(2)(c), or s. 121.35, or described in s. 121.051(2)(a)2. 15 or s. 121.051(2)(b), an employee initially enrolled in the 16 Florida Retirement System on or after July 1, 2015, and whose 17 first employment in a regularly established position is covered 18 by the Elected Officers’ Class are compulsory members of the 19 investment plan. Investment plan membership continues for a 20 compulsory member even if the employee is subsequently employed 21 in a position covered by another membership class. Membership in 22 the pension plan is not permitted except as provided in s. 23 121.591(2). 24 (a) Employees initially enrolled in the Florida Retirement 25 System before July 1, 2015, may retain their membership in the 26 pension plan or investment plan and are eligible to use the 27 election opportunity specified in s. 121.4501(4)(f). Compulsory 28 members are not eligible to use the election opportunity. 29 (b) Employees eligible to withdraw from the system under s. 30 121.052(3)(d) may withdraw from the system or participate in the 31 investment plan as provided under those provisions. Employees 32 eligible for optional retirement programs under paragraph (2)(c) 33 or s. 121.35 may participate in the optional retirement program 34 or the investment plan as provided in those provisions. Eligible 35 employees required to participate pursuant to paragraph (1)(a) 36 in the optional retirement program as provided under s. 121.35 37 must participate in the investment plan if employed in a 38 position not eligible for the optional retirement program. 39 Section 3. Paragraph (a) of subsection (2) and paragraph 40 (c) of subsection (3) of section 121.052, Florida Statutes, are 41 amended to read: 42 121.052 Membership class of elected officers.— 43 (2) MEMBERSHIP.—The following holders of elective office, 44 hereinafter referred to as “elected officers,” whether assuming 45 elective office by election, reelection, or appointment, are 46 members of the Elected Officers’ Class, except as provided in 47 subsection (3): 48 (a)1. AAnyGovernor, Lieutenant Governor, Cabinet officer, 49 legislator, Supreme Court justice, district court of appeal50judge, circuit judge,or state attorney assuming office on or 51 after July 1, 1972. 52 2. A Supreme Court justice, district court of appeal judge, 53 or circuit judge assuming office on or after July 1, 1972. 54 (3) PARTICIPATION AND WITHDRAWAL, GENERALLY.—Effective July 55 1, 1990, participation in the Elected Officers’ Class shall be 56 compulsory for elected officers listed in paragraphs (2)(a)-(d) 57 and (f) assuming office on or after said date, unless the 58 elected officer elects membership in another class or withdraws 59 from the Florida Retirement System as provided in paragraphs 60 (3)(a)-(d): 61 (c) Before July 1, 2015, ananyelected officer may, within 62 6 months after assuming office, or within 6 months after May 30, 63 1997this act becomes a lawfor serving elected officers, elect 64 membership in the Senior Management Service Class as provided in 65 s. 121.055 in lieu of membership in the Elected Officers’ Class. 66AnySuch election made by a county elected officer hasshall67haveno effect upon the statutory limit on the number of 68 nonelective full-time positions that may be designated by a 69 local agency employer for inclusion in the Senior Management 70 Service Class under s. 121.055(1)(b)1. 71 Section 4. Subsections (3) and (5) of section 121.053, 72 Florida Statutes, are amended to read: 73 121.053 Participation in the Elected Officers’ Class for 74 retired members.— 75 (3) On or after July 1, 2010: 76 (a) A retiree of a state-administered retirement system who 77 is initially reemployed inelected or appointed for the first78time toan elective office in a regularly established position 79 with a covered employer may not reenroll in the Florida 80 Retirement System, except as provided in s. 121.122. 81 (b) An elected officer who is elected or appointed to an 82 elective office and is participating in the Deferred Retirement 83 Option Program is subject to termination as defined in s. 84 121.021 upon completion of his or her DROP participation period. 85 An elected official may defer termination as provided in 86 subsection (7). 87 (5) AAnyrenewed member, as described in s. 121.122(1), 88 (3), (4), or (5)subsection(1) or subsection (2), who is not 89 receiving the maximum health insurance subsidy provided in s. 90 112.363 is entitled to earn additional credit toward the maximum 91 health insurance subsidy. Any additional subsidy due because of 92 such additional credit may be received only at the time of 93 payment of the second career retirement benefit. The total 94 health insurance subsidy received from initial and renewed 95 membership may not exceed the maximum allowed in s. 112.363. 96 Section 5. Paragraph (f) of subsection (1) and paragraph 97 (c) of subsection (6) of section 121.055, Florida Statutes, are 98 amended to read: 99 121.055 Senior Management Service Class.—There is hereby 100 established a separate class of membership within the Florida 101 Retirement System to be known as the “Senior Management Service 102 Class,” which shall become effective February 1, 1987. 103 (1) 104 (f) Effective July 1, 1997, through June 30, 2015: 105 1. Except as provided in subparagraphssubparagraph3. and 106 4., an elected state officer eligible for membership in the 107 Elected Officers’ Class under s. 121.052(2)(a), (b), or (c) who 108 elects membership in the Senior Management Service Class under 109 s. 121.052(3)(c) may, within 6 months after assuming office or 110 within 6 months after this act becomes a law for serving elected 111 state officers, elect to participate in the Senior Management 112 Service Optional Annuity Program, as provided in subsection (6), 113 in lieu of membership in the Senior Management Service Class. 114 2. Except as provided in subparagraphssubparagraph3. and 115 4., an elected officer of a local agency employer eligible for 116 membership in the Elected Officers’ Class under s. 121.052(2)(d) 117 who elects membership in the Senior Management Service Class 118 under s. 121.052(3)(c) may, within 6 months after assuming 119 office, or within 6 months after this act becomes a law for 120 serving elected officers of a local agency employer, elect to 121 withdraw from the Florida Retirement System, as provided in 122 subparagraph (b)2., in lieu of membership in the Senior 123 Management Service Class. 124 3. A retiree of a state-administered retirement system who 125 is initially reemployed in a regularly established position on 126or afterJuly 1, 2010, through December 31, 2014, as an elected 127 official eligible for the Elected Officers’ Class may not be 128 enrolled in renewed membership in the Senior Management Service 129 Class or in the Senior Management Service Optional Annuity 130 Program as provided in subsection (6), and may not withdraw from 131 the Florida Retirement System as a renewed member as provided in 132 subparagraph (b)2., as applicable, in lieu of membership in the 133 Senior Management Service Class. 134 4. Effective January 1, 2015, an eligible retiree of a 135 state-administered retirement system who retired before July 1, 136 2010, and is reemployed in a regularly established position with 137 a covered employer shall be enrolled as a renewed member as 138 provided in s. 121.122. 139 5. On or after July 1, 2015, an elected officer eligible 140 for membership in the Elected Officers’ Class may not be 141 enrolled in the Senior Management Service Class or in the Senior 142 Management Service Optional Annuity Program except as provided 143 in subsection (6). 144 (6) 145 (c) Participation.— 146 1. An eligible employee who is employed on or before 147 February 1, 1987, may elect to participate in the optional 148 annuity program in lieu of participating in the Senior 149 Management Service Class. Such election must bemadein writing 150 and filed with the department and the personnel officer of the 151 employer on or before May 1, 1987. An eligible employee who is 152 employed on or before February 1, 1987, and who fails to make an 153 election to participate in the optional annuity program by May 154 1, 1987, shall be deemed to have elected membership in the 155 Senior Management Service Class. 156 2. Except as provided in subparagraph 6., an employee who 157 becomes eligible to participate in the optional annuity program 158 by reason of initial employment commencing after February 1, 159 1987, may, within 90 days after the date of commencing 160 employment, elect to participate in the optional annuity 161 program. Such election must bemadein writing and filed with 162 the personnel officer of the employer. An eligible employee who 163 does not within 90 days after commencing employment elect to 164 participate in the optional annuity program shall be deemed to 165 have elected membership in the Senior Management Service Class. 166 3. A person who is appointed to a position in the Senior 167 Management Service Class and who is a member of an existing 168 retirement system or the Special Risk or Special Risk 169 Administrative Support Classes of the Florida Retirement System 170 may elect to remain in such system or class in lieu of 171 participating in the Senior Management Service Class or optional 172 annuity program. Such election must bemadein writing and filed 173 with the department and the personnel officer of the employer 174 within 90 days after such appointment. An eligible employee who 175 fails to make an election to participate in the existing system, 176 the Special Risk Class of the Florida Retirement System, the 177 Special Risk Administrative Support Class of the Florida 178 Retirement System, or the optional annuity program shall be 179 deemed to have elected membership in the Senior Management 180 Service Class. 181 4. Except as provided in subparagraph 5., an employee’s 182 election to participate in the optional annuity program is 183 irrevocable if the employee continues to be employed in an 184 eligible position and continues to meet the eligibility 185 requirements set forth in this paragraph. 186 5. Effective from July 1, 2002, through September 30, 2002, 187 an active employee in a regularly established position who has 188 elected to participate in the Senior Management Service Optional 189 Annuity Program has one opportunity to choose to move from the 190 Senior Management Service Optional Annuity Program to the 191 Florida Retirement System Pension Plan. 192 a. The election must bemadein writing and must be filed 193 with the department and the personnel officer of the employer 194 before October 1, 2002, or, in the case of an active employee 195 who is on a leave of absence on July 1, 2002, within 90 days 196 after the conclusion of the leave of absence. This election is 197 irrevocable. 198 b. The employee shall receive service credit under the 199 pension plan equal to his or her years of service under the 200 Senior Management Service Optional Annuity Program. The cost for 201 such credit is the amount representing the present value of that 202 employee’s accumulated benefit obligation for the affected 203 period of service. 204 c. The employee must transfer the total accumulated 205 employer contributions and earnings on deposit in his or her 206 Senior Management Service Optional Annuity Program account. If 207 the transferred amount is not sufficient to pay the amount due, 208 the employee must pay a sum representing the remainder of the 209 amount due. The employee may not retain any employer 210 contributions or earnings from the Senior Management Service 211 Optional Annuity Program account. 212 6. A retiree of a state-administered retirement system who 213 is initially reemployed onor afterJuly 1, 2010, through 214 December 31, 2014, may not renew membership in the Senior 215 Management Service Optional Annuity Program. Effective January 216 1, 2015, an eligible retiree of a state-administered retirement 217 system who retired before July 1, 2010, and is reemployed in a 218 regularly established position with a covered employer shall be 219 enrolled as a renewed member as provided in s. 121.122. 220 7. Effective July 1, 2015, the Senior Management Service 221 Optional Annuity Program is closed to new members. Members 222 enrolled in the Senior Management Service Optional Annuity 223 Program before July 1, 2015, may retain their membership in the 224 annuity program. 225 Section 6. Paragraph (a) of subsection (4) of section 226 121.091, Florida Statutes, is amended to read: 227 121.091 Benefits payable under the system.—Benefits may not 228 be paid under this section unless the member has terminated 229 employment as provided in s. 121.021(39)(a) or begun 230 participation in the Deferred Retirement Option Program as 231 provided in subsection (13), and a proper application has been 232 filed in the manner prescribed by the department. The department 233 may cancel an application for retirement benefits when the 234 member or beneficiary fails to timely provide the information 235 and documents required by this chapter and the department’s 236 rules. The department shall adopt rules establishing procedures 237 for application for retirement benefits and for the cancellation 238 of such application when the required information or documents 239 are not received. 240 (4) DISABILITY RETIREMENT BENEFIT.— 241 (a) Disability retirement; entitlement and effective date.— 242 1.a. A member who becomes totally and permanently disabled, 243 as defined in paragraph (b), after completing 5 years of 244 creditable service, or a member who becomes totally and 245 permanently disabled in the line of duty regardless of service, 246 is entitled to a monthly disability benefit,;except that aany247 member with less than 5 years of creditable service on July 1, 248 1980, or aanyperson who becomes a member of the Florida 249 Retirement System on or after such date must have completed 10 250 years of creditable service before becoming totally and 251 permanently disabled in order to receive disability retirement 252 benefits for aanydisability thatwhichoccurs other than in 253 the line of duty. However, if a member employed on July 1, 1980, 254 who has less than 5 years of creditable service as of that date 255 becomes totally and permanently disabled after completing 5 256 years of creditable service and is found not to have attained 257 fully insured status for benefits under the federal Social 258 Security Act, such member is entitled to a monthly disability 259 benefit. 260 b. Effective July 1, 2001, a member of the pension plan 261 initially enrolled before July 1, 2015, who becomes totally and 262 permanently disabled, as defined in paragraph (b), after 263 completing 8 years of creditable service, or a member who 264 becomes totally and permanently disabled in the line of duty 265 regardless of service, is entitled to a monthly disability 266 benefit. 267 c. Effective July 1, 2015, a member of the pension plan 268 initially enrolled on or after July 1, 2015, who becomes totally 269 and permanently disabled, as defined in paragraph (b), after 270 completing 10 years of creditable service, or a member who 271 becomes totally and permanently disabled in the line of duty 272 regardless of service, is entitled to a monthly disability 273 benefit. 274 2. If the divisionhasreceivedfrom the employerthe 275 required documentation of the member’s termination of employment 276 from the employer, the effective retirement date for a member 277 who applies and is approved for disability retirement shall be 278 as established by rule of the division. 279 3. For a member who is receiving Workers’ Compensation 280 payments, the effective disability retirement date may not 281 precede the date the member reaches Maximum Medical Improvement 282 (MMI), unless the member terminates employment before reaching 283 MMI. 284 Section 7. Subsection (2) of section 121.122, Florida 285 Statutes, is amended, and subsections (3), (4), and (5) are 286 added to that section, to read: 287 121.122 Renewed membership in system.— 288 (2) Except as provided in subsections (3)-(5), a retiree of 289 a state-administered retirement system who is initially 290 reemployed in a regularly established position on or after July 291 1, 2010, may not be enrolled as a renewed member. 292 (3) A retiree of the investment plan, the State University 293 System Optional Retirement Program, the Senior Management 294 Service Optional Annuity Program, or the State Community College 295 System Optional Retirement Program who retired before July 1, 296 2010, had less than 10 years of creditable service upon 297 retirement, and is employed in a regularly established position 298 with a covered employer on or after January 1, 2015, shall be a 299 renewed member of the Regular Class of the investment plan 300 regardless of the position held, unless employed in a position 301 eligible for participation in the State University System 302 Optional Retirement Program or the State Community College 303 System Optional Retirement Program as provided in subsections 304 (4) and (5), respectively. The renewed member must satisfy the 305 vesting requirements and other provisions of this chapter. 306 (a) Creditable service, including credit toward the retiree 307 health insurance subsidy provided in s. 112.363, does not accrue 308 for a retiree’s employment in a regularly established position 309 with a covered employer from July 1, 2010, through December 31, 310 2014. 311 (b) Employer and employee contributions, interest, 312 earnings, or any other funds may not be paid into a renewed 313 member’s investment plan account for any employment in a 314 regularly established position with a covered employer from July 315 1, 2010, through December 31, 2014, by the renewed member or the 316 employer on behalf of the member. 317 (c) To be eligible to receive a retirement benefit, the 318 renewed member must satisfy the vesting requirements in s. 319 121.4501(6). 320 (d) The member is ineligible to receive disability benefits 321 as provided in s. 121.091(4) or s. 121.591(2). 322 (e) The member is subject to the reemployment after 323 retirement limitations provided in s. 121.091(9), as applicable. 324 (f) The member must satisfy the requirements for 325 termination from employment provided in s. 121.021(39). 326 (g) Upon the renewed membership or reemployment of a 327 retiree, the employer and the retiree shall pay the applicable 328 employer and employee contributions required under ss. 112.363, 329 121.71, 121.74, and 121.76. The contributions are payable only 330 for employment and salary earned in a regularly established 331 position with a covered employer on or after January 1, 2015. 332 The employer and employee contributions shall be transferred to 333 the investment plan and placed in a default fund as designated 334 by the state board. The retiree may move the contributions once 335 an account is activated in the investment plan. 336 (h) The member may not purchase any past service in the 337 investment plan, including employment in a regularly established 338 position with a covered employer from July 1, 2010, through 339 December 31, 2014. 340 (i) A renewed member who is a retiree of the investment 341 plan and who is not receiving the maximum health insurance 342 subsidy provided in s. 112.363 is entitled to earn additional 343 credit toward the subsidy. Such credit may be earned only for 344 employment in a regularly established position with a covered 345 employer on or after January 1, 2015. Any additional subsidy due 346 because of additional credit may be received only at the time of 347 paying the second career retirement benefit. The total health 348 insurance subsidy received by a retiree receiving benefits from 349 initial and renewed membership may not exceed the maximum 350 allowed under s. 112.363. 351 (4) A retiree of the investment plan, the State University 352 System Optional Retirement Program, the Senior Management 353 Service Optional Annuity Program, or the State Community College 354 System Optional Retirement Program who retired before July 1, 355 2010, and who is employed in a regularly established position 356 eligible for participation in the State University System 357 Optional Retirement Program on or after January 1, 2015, shall 358 become a renewed member of the optional retirement program. The 359 renewed member must satisfy the vesting requirements and other 360 provisions of this chapter. Once enrolled, a renewed member 361 remains enrolled in the optional retirement program while 362 employed in an eligible position for the optional retirement 363 program. If employment in a different covered position results 364 in the retiree’s enrollment in the investment plan, the retiree 365 is no longer eligible to participate in the optional retirement 366 program unless employed in a mandatory position under s. 121.35. 367 (a) The member is subject to the reemployment after 368 retirement limitations provided in s. 121.091(9), as applicable. 369 (b) The member must satisfy the requirements for 370 termination of employment provided in s. 121.021(39). 371 (c) Upon renewed membership or reemployment of a retiree, 372 the employer and the retiree must pay the applicable employer 373 and employee contributions required under s. 121.35. 374 (d) The member, or the employer on behalf of the member, 375 may not purchase any prior service in the optional retirement 376 program or employment from July 1, 2010, to December 31, 2014. 377 (5) A retiree of the investment plan, the State University 378 System Optional Retirement Program, the Senior Management 379 Service System Optional Annuity Program, or the State Community 380 College System Optional Retirement Program who retired before 381 July 1, 2010, and who is employed in a regularly established 382 position eligible for participation in the State Community 383 College System Optional Retirement Program as provided in s. 384 121.051(2)(c)4. on or after January 1, 2015, shall become a 385 renewed member of the optional retirement program. The renewed 386 member must satisfy the eligibility requirements of this chapter 387 and s. 1012.875 for the optional retirement program. Once 388 enrolled, a renewed member remains enrolled in the optional 389 retirement program while employed in an eligible position for 390 the optional retirement program. If employment in a different 391 covered position results in the retiree’s enrollment in the 392 investment plan, the retiree is no longer eligible to 393 participate in the optional retirement program. 394 (a) The member is subject to the reemployment after 395 retirement limitations provided in s. 121.091(9), as applicable. 396 (b) The member must satisfy the requirements for 397 termination of employment provided in s. 121.021(39). 398 (c) Upon renewed membership or reemployment of a retiree, 399 the employer and the retiree must pay the applicable employer 400 and employee contributions required under ss. 121.051(2)(c) and 401 1012.875. 402 (d) The member, or the employer on behalf of the member, 403 may not purchase any past service in the optional retirement 404 program or employment accrued from July 1, 2010, to December 31, 405 2014. 406 Section 8. Paragraph (c) of subsection (3) of section 407 121.35, Florida Statutes, is amended to read: 408 121.35 Optional retirement program for the State University 409 System.— 410 (3) ELECTION OF OPTIONAL PROGRAM.— 411 (c) AnAnyemployee who becomes eligible to participate in 412 the optional retirement program on or after January 1, 1993, 413 shall be a compulsory participant of the program unless such 414 employee elects membership in the Florida Retirement System. 415 Such election shall bemadein writing and filed with the 416 personnel officer of the employer. AnAnyeligible employee who 417 fails to make such election within the prescribed time period 418 shall be deemed to have elected to participate in the optional 419 retirement program. 420 1. AnAnyemployee whose optional retirement program 421 eligibility results from initial employment shall be enrolled in 422 the program at the commencement of employment. If, within 90 423 days after commencement of employment, the employee elects 424 membership in the Florida Retirement System, such membership is 425shall beeffective retroactive to the date of commencing 426commencement ofemployment as provided in s. 121.4501(4). 427 2. AnAnyemployee whose optional retirement program 428 eligibility results from a change in status due to the 429 subsequent designation of the employee’s position as one of 430 those specified in paragraph (2)(a) or due to the employee’s 431 appointment, promotion, transfer, or reclassification to a 432 position specified in paragraph (2)(a) shall be enrolled in the 433 optional retirement program upon such change in status and shall 434 be notified by the employer of such action. If, within 90 days 435 after the date of such notification, the employee elects to 436 retain membership in the Florida Retirement System, such 437 continuation of membership isshall beretroactive to the date 438 of the change in status. 439 3. Notwithstandingthe provisions ofthis paragraph, 440 effective July 1, 1997, ananyemployee who is eligible to 441 participate in the Optional Retirement Program and who fails to 442 execute a contract with one of the approved companies and to 443 notify the department in writing as provided in subsection (4) 444 within 90 days after the date of eligibility shall be deemed to 445 have elected membership in the Florida Retirement System, except 446 as provided in s. 121.051(1)(a). This provisionshallalso 447 appliesapplyto ananyemployee who terminates employment in an 448 eligible position before executing the required investment 449annuitycontract and notifying the department. Such membership 450 isshall beretroactive to the date of eligibility, and all 451 appropriate contributions shall be transferred to the Florida 452 Retirement System Trust Fund and the Health Insurance Subsidy 453 Trust Fund. 454 Section 9. Subsection (1), paragraphs (e) and (i) of 455 subsection (2), paragraph (b) of subsection (3), subsection (4), 456 paragraph (c) of subsection (5), subsection (8), and paragraphs 457 (a), (b), (c), and (h) of subsection (10) of section 121.4501, 458 Florida Statutes, are amended to read: 459 121.4501 Florida Retirement System Investment Plan.— 460 (1) The Trustees of the State Board of Administration shall 461 establish a defined contribution program called the “Florida 462 Retirement System Investment Plan” or “investment plan” for 463 members of the Florida Retirement System under which retirement 464 benefits arewill beprovided for eligible employees who elect 465 to participate in the program, for employees who default into 466 the program, and for compulsory members described in paragraph 467 (4)(g). The retirement benefits shall be provided through 468 member-directed investments, in accordance with s. 401(a) of the 469 Internal Revenue Code and related regulations. The employer and 470 employee shall make contributions, as provided in this section 471 and ss. 121.571 and 121.71, to the Florida Retirement System 472 Investment Plan Trust Fund toward the funding of benefits. 473 (2) DEFINITIONS.—As used in this part, the term: 474 (e) “Eligible employee” means an officer or employee, as 475 defined in s. 121.021, who: 476 1. Is a member of, or is eligible for membership in, the 477 Florida Retirement System, including any renewed member of the 478 Florida Retirement System initially enrolled before July 1, 479 2010;or480 2. Participates in, or is eligible to participate in, the 481 Senior Management Service Optional Annuity Program as 482 established under s. 121.055(6), the State Community College 483 System Optional Retirement Program as established under s. 484 121.051(2)(c), or the State University System Optional 485 Retirement Program established under s. 121.35; or 486 3. Is a retired member of the investment plan, the State 487 University System Optional Retirement Program, the Senior 488 Management Service Optional Annuity Program, or the State 489 Community College System Optional Retirement Program who retired 490 before July 1, 2010 and is employed in a regularly established 491 position on or after January 1, 2015, as provided in s. 121.122. 492 493 The term does not include any member participating in the 494 Deferred Retirement Option Program established under s. 495 121.091(13), a retiree of a state-administered retirement system 496 who retiredinitially reemployed in a regularly established497positionon or after July 1, 2010, or a mandatory participant of 498 the State University System Optional Retirement Program 499 established under s. 121.35. 500 (i) “Member” or “employee” means an eligible employee who 501 enrolls, is defaulted into, or is a compulsory member ofinthe 502 investment plan as provided in subsection (4), a terminated 503 Deferred Retirement Option Program member as described in 504 subsection (21), or a beneficiary or alternate payee of a member 505 or employee. 506 (3) RETIREMENT SERVICE CREDIT; TRANSFER OF BENEFITS.— 507 (b) Notwithstanding paragraph (a), an eligible employee who 508 elects to participate in or is defaulted into the investment 509 plan and establishes one or more individual member accounts may 510 elect to transfer to the investment plan a sum representing the 511 present value of the employee’s accumulated benefit obligation 512 under the pension plan, except as provided in paragraph (4)(b). 513 Upon transfer, all service credit earned under the pension plan 514 is nullified for purposes of entitlement to a future benefit 515 under the pension plan. A member may not transfer the 516 accumulated benefit obligation balance from the pension plan 517 after the time period for enrolling in the investment plan has 518 expired. 519 1. For purposes of this subsection, the present value of 520 the member’s accumulated benefit obligation is based upon the 521 member’s estimated creditable service and estimated average 522 final compensation under the pension plan, subject to 523 recomputation under subparagraph 2. For state employees, initial 524 estimates shall be based upon creditable service and average 525 final compensation as of midnight on June 30, 2002; for district 526 school board employees, initial estimates shall be based upon 527 creditable service and average final compensation as of midnight 528 on September 30, 2002; and for local government employees, 529 initial estimates shall be based upon creditable service and 530 average final compensation as of midnight on December 31, 2002. 531 The dates specified are the “estimate date” for these employees. 532 The actuarial present value of the employee’s accumulated 533 benefit obligation shall be based on the following: 534 a. The discount rate and other relevant actuarial 535 assumptions used to value the Florida Retirement System Trust 536 Fund at the time the amount to be transferred is determined, 537 consistent with the factors provided in sub-subparagraphs b. and 538 c. 539 b. A benefit commencement age, based on the member’s 540 estimated creditable service as of the estimate date. 541 c. Except as provided under sub-subparagraph d., for a 542 member initially enrolled: 543 (I) Before July 1, 2011, the benefit commencement age is 544 the younger of the following, but may not be younger than the 545 member’s age as of the estimate date: 546 (A) Age 62; or 547 (B) The age the member would attain if the member completed 548 30 years of service with an employer, assuming the member worked 549 continuously from the estimate date, and disregarding any 550 vesting requirement that would otherwise apply under the pension 551 plan. 552 (II) On or after July 1, 2011, the benefit commencement age 553 is the younger of the following, but may not be younger than the 554 member’s age as of the estimate date: 555 (A) Age 65; or 556 (B) The age the member would attain if the member completed 557 33 years of service with an employer, assuming the member worked 558 continuously from the estimate date, and disregarding any 559 vesting requirement that would otherwise apply under the pension 560 plan. 561 d. For members of the Special Risk Class and for members of 562 the Special Risk Administrative Support Class entitled to retain 563 the special risk normal retirement date: 564 (I) Initially enrolled before July 1, 2011, the benefit 565 commencement age is the younger of the following, but may not be 566 younger than the member’s age as of the estimate date: 567 (A) Age 55; or 568 (B) The age the member would attain if the member completed 569 25 years of service with an employer, assuming the member worked 570 continuously from the estimate date, and disregarding any 571 vesting requirement that would otherwise apply under the pension 572 plan. 573 (II) Initially enrolled on or after July 1, 2011, the 574 benefit commencement age is the younger of the following, but 575 may not be younger than the member’s age as of the estimate 576 date: 577 (A) Age 60; or 578 (B) The age the member would attain if the member completed 579 30 years of service with an employer, assuming the member worked 580 continuously from the estimate date, and disregarding any 581 vesting requirement that would otherwise apply under the pension 582 plan. 583 e. The calculation must disregard vesting requirements and 584 early retirement reduction factors that would otherwise apply 585 under the pension plan. 586 2. For each member who elects to transfer moneys from the 587 pension plan to his or her account in the investment plan, the 588 division shall recompute the amount transferred under 589 subparagraph 1. within 60 days after the actual transfer of 590 funds based upon the member’s actual creditable service and 591 actual final average compensation as of the initial date of 592 participation in the investment plan. If the recomputed amount 593 differs from the amount transferred by $10 or more, the division 594 shall: 595 a. Transfer, or cause to be transferred, from the Florida 596 Retirement System Trust Fund to the member’s account the excess, 597 if any, of the recomputed amount over the previously transferred 598 amount together with interest from the initial date of transfer 599 to the date of transfer under this subparagraph, based upon the 600 effective annual interest equal to the assumed return on the 601 actuarial investment which was used in the most recent actuarial 602 valuation of the system, compounded annually. 603 b. Transfer, or cause to be transferred, from the member’s 604 account to the Florida Retirement System Trust Fund the excess, 605 if any, of the previously transferred amount over the recomputed 606 amount, together with interest from the initial date of transfer 607 to the date of transfer under this subparagraph, based upon 6 608 percent effective annual interest, compounded annually, pro rata 609 based on the member’s allocation plan. 610 3. If contribution adjustments are made as a result of 611 employer errors or corrections, including plan corrections, 612 following recomputation of the amount transferred under 613 subparagraph 1., the member is entitled to the additional 614 contributions or is responsible for returning any excess 615 contributions resulting from the correction. However, aany616 return of such erroneous excess pretax contribution by the plan 617 must be made within the period allowed by the Internal Revenue 618 Service. The present value of the member’s accumulated benefit 619 obligation mayshallnot be recalculated. 620 4. As directed by the member, the state board shall 621 transfer or cause to be transferred the appropriate amounts to 622 the designated accounts within 30 days after the effective date 623 of the member’s participation in the investment plan unless the 624 major financial markets for securities available for a transfer 625 are seriously disrupted by an unforeseen event that causes the 626 suspension of trading on aanynational securities exchange in 627 the country where the securities were issued. In that event, the 628 30-day period may be extended by a resolution of the state 629 board. Transfers are not commissionable or subject to other fees 630 and may be in the form of securities or cash, as determined by 631 the state board. Such securities are valued as of the date of 632 receipt in the member’s account. 633 5. If the state board or the division receives notification 634 from the United States Internal Revenue Service that this 635 paragraph or any portion of this paragraph will cause the 636 retirement system, or a portion thereof, to be disqualified for 637 tax purposes under the Internal Revenue Code, the portion that 638 will cause the disqualification does not apply. Upon such 639 notice, the state board and the division shall notify the 640 presiding officers of the Legislature. 641 (4) PARTICIPATION; ENROLLMENT.— 642 (a)1. Effective June 1, 2002, through February 28, 2003, a 643 90-day election period, preceded by a 90-day education period, 644 was provided to each eligible employee participating in the 645 Florida Retirement System which permitted each eligible employee 646 to elect membership in the investment plan, and an employee who 647 failed to elect the investment plan during the election period 648 remained in the pension plan. An eligible employee who was 649 employed in a regularly established position during the election 650 period was granted the option to make one subsequent election, 651 as provided in paragraph (f). With respect to an eligible 652 employee who did not participate in the initial election period 653 or who is initiallyemployee who isemployed in a regularly 654 established position after the close of the initial election 655 period but before July 1, 2015,on June 1, 2002, by a state656employer:657a. Any such employee may elect to participate in the658investment plan in lieu of retaining his or her membership in659the pension plan. The election must be made in writing or by660electronic means and must be filed with the third-party661administrator by August 31, 2002, or, in the case of an active662employee who is on a leave of absence on April 1, 2002, by the663last business day of the 5th month following the month the leave664of absence concludes. This election is irrevocable, except as665provided in paragraph (g). Upon making such election, the666employee shall be enrolled as a member of the investment plan,667the employee’s membership in the Florida Retirement System is668governed by the provisions of this part, and the employee’s669membership in the pension plan terminates. The employee’s670enrollment in the investment plan is effective the first day of671the month for which a full month’s employer contribution is made672to the investment plan.673b. Any such employee who fails to elect to participate in674the investment plan within the prescribed time period is deemed675to have elected to retain membership in the pension plan, and676the employee’s option to elect to participate in the investment677plan is forfeited.6782. With respect to employees who become eligible to679participate in the investment plan by reason of employment in a680regularly established position with a state employer commencing681after April 1, 2002:682a. Anysuch employee shall, by default, be enrolled in the 683 pension plan at the commencement of employment, and may, by the 684 last business day of the 5th month following the employee’s 685 month of hire, elect to participate in the investment plan. The 686 employee’s election must bemadein writing or by electronic 687 means and must be filed with the third-party administrator. The 688 election to participate in the investment plan is irrevocable, 689 except as provided in paragraph (f)(g). 690 a.b.If the employee files such election within the 691 prescribed time period, enrollment in the investment plan is 692 effective on the first day of employment. The retirement 693 contributions paid through the month of the employee plan change 694 shall be transferred to the investment program, and, effective 695 the first day of the next month, the employer and employee must 696 pay the applicable contributions based on the employee 697 membership class in the program. 698 b.c.An employee who fails to elect to participate in the 699 investment plan within the prescribed time period is deemed to 700 have elected to retain membership in the pension plan, and the 701 employee’s option to elect to participate in the investment plan 702 is forfeited. 703 2.3.With respect to employees who become eligible to 704 participate in the investment plan pursuant to s. 705 121.051(2)(c)3. or s. 121.35(3)(i), the employee may elect to 706 participate in the investment plan in lieu of retaining his or 707 her membership in the State Community College System Optional 708 Retirement Program or the State University System Optional 709 Retirement Program. The election must bemadein writing or by 710 electronic means and must be filed with the third-party 711 administrator. This election is irrevocable, except as provided 712 in paragraph (f)(g). Upon making such election, the employee 713 shall be enrolled as a member in the investment plan, the 714 employee’s membership in the Florida Retirement System is 715 governed by the provisions of this part, and the employee’s 716 participation in the State Community College System Optional 717 Retirement Program or the State University System Optional 718 Retirement Program terminates. The employee’s enrollment in the 719 investment plan is effective on the first day of the month for 720 which a full month’s employer and employee contribution is made 721 to the investment plan. 7224. For purposes of this paragraph, “state employer” means723any agency, board, branch, commission, community college,724department, institution, institution of higher education, or725water management district of the state, which participates in726the Florida Retirement System for the benefit of certain727employees.728 (b) With respect to employees who become eligible to 729 participate in the investment plan, except as provided in 730 paragraph (g), by reason of employment in a regularly 731 established position commencing on or after July 1, 2015, such 732 employee shall be enrolled in the pension plan at the 733 commencement of employment and may, by the last business day of 734 the 8th month following the employee’s month of hire, elect to 735 participate in the pension plan or the investment plan. Eligible 736 employees may make a plan election only if they are earning 737 service credit in an employer-employee relationship consistent 738 with s. 121.021(17)(b), excluding leaves of absence without pay. 739 1. The employee’s election must be in writing or by 740 electronic means and must be filed with the third-party 741 administrator. The election to participate in the pension plan 742 or investment plan is irrevocable, except as provided in 743 paragraph (f). 744 2. If the employee fails to make an election of the pension 745 plan or investment plan within 8 months following the month of 746 hire, the employee is deemed to have elected the investment plan 747 and will be defaulted into the investment plan retroactively to 748 the employee’s date of employment. The employee’s option to 749 participate in the pension plan is forfeited, except as provided 750 in paragraph (f). 751 3. The amount of the employee and employer contributions 752 paid before the default to the investment plan shall be 753 transferred to the investment plan and placed in a default fund 754 as designated by the State Board of Administration. The employee 755 may move the contributions once an account is activated in the 756 investment plan. 757 4. Effective the first day of the month after an eligible 758 employee makes a plan election of the pension plan or investment 759 plan, or after the month of default to the investment plan, the 760 employee and employer shall pay the applicable contributions 761 based on the employee membership class in the pension plan or 762 investment plan. 763(b)1. With respect to an eligible employee who is employed764in a regularly established position on September 1, 2002, by a765district school board employer:766a. Any such employee may elect to participate in the767investment plan in lieu of retaining his or her membership in768the pension plan. The election must be made in writing or by769electronic means and must be filed with the third-party770administrator by November 30, or, in the case of an active771employee who is on a leave of absence on July 1, 2002, by the772last business day of the 5th month following the month the leave773of absence concludes. This election is irrevocable, except as774provided in paragraph (g). Upon making such election, the775employee shall be enrolled as a member of the investment plan,776the employee’s membership in the Florida Retirement System is777governed by the provisions of this part, and the employee’s778membership in the pension plan terminates. The employee’s779enrollment in the investment plan is effective the first day of780the month for which a full month’s employer contribution is made781to the investment program.782b. Any such employee who fails to elect to participate in783the investment plan within the prescribed time period is deemed784to have elected to retain membership in the pension plan, and785the employee’s option to elect to participate in the investment786plan is forfeited.7872. With respect to employees who become eligible to788participate in the investment plan by reason of employment in a789regularly established position with a district school board790employer commencing after July 1, 2002:791a. Any such employee shall, by default, be enrolled in the792pension plan at the commencement of employment, and may, by the793last business day of the 5th month following the employee’s794month of hire, elect to participate in the investment plan. The795employee’s election must be made in writing or by electronic796means and must be filed with the third-party administrator. The797election to participate in the investment plan is irrevocable,798except as provided in paragraph (g).799b. If the employee files such election within the800prescribed time period, enrollment in the investment plan is801effective on the first day of employment. The employer802retirement contributions paid through the month of the employee803plan change shall be transferred to the investment plan, and,804effective the first day of the next month, the employer shall805pay the applicable contributions based on the employee806membership class in the investment plan.807c. Any such employee who fails to elect to participate in808the investment plan within the prescribed time period is deemed809to have elected to retain membership in the pension plan, and810the employee’s option to elect to participate in the investment811plan is forfeited.8123. For purposes of this paragraph, “district school board813employer” means any district school board that participates in814the Florida Retirement System for the benefit of certain815employees, or a charter school or charter technical career816center that participates in the Florida Retirement System as817provided in s. 121.051(2)(d).818(c)1. With respect to an eligible employee who is employed819in a regularly established position on December 1, 2002, by a820local employer:821a. Any such employee may elect to participate in the822investment plan in lieu of retaining his or her membership in823the pension plan. The election must be made in writing or by824electronic means and must be filed with the third-party825administrator by February 28, 2003, or, in the case of an active826employee who is on a leave of absence on October 1, 2002, by the827last business day of the 5th month following the month the leave828of absence concludes. This election is irrevocable, except as829provided in paragraph (g). Upon making such election, the830employee shall be enrolled as a participant of the investment831plan, the employee’s membership in the Florida Retirement System832is governed by the provisions of this part, and the employee’s833membership in the pension plan terminates. The employee’s834enrollment in the investment plan is effective the first day of835the month for which a full month’s employer contribution is made836to the investment plan.837b. Any such employee who fails to elect to participate in838the investment plan within the prescribed time period is deemed839to have elected to retain membership in the pension plan, and840the employee’s option to elect to participate in the investment841plan is forfeited.8422. With respect to employees who become eligible to843participate in the investment plan by reason of employment in a844regularly established position with a local employer commencing845after October 1, 2002:846a. Any such employee shall, by default, be enrolled in the847pension plan at the commencement of employment, and may, by the848last business day of the 5th month following the employee’s849month of hire, elect to participate in the investment plan. The850employee’s election must be made in writing or by electronic851means and must be filed with the third-party administrator. The852election to participate in the investment plan is irrevocable,853except as provided in paragraph (g).854b. If the employee files such election within the855prescribed time period, enrollment in the investment plan is856effective on the first day of employment. The employer857retirement contributions paid through the month of the employee858plan change shall be transferred to the investment plan, and,859effective the first day of the next month, the employer shall860pay the applicable contributions based on the employee861membership class in the investment plan.862c. Any such employee who fails to elect to participate in863the investment plan within the prescribed time period is deemed864to have elected to retain membership in the pension plan, and865the employee’s option to elect to participate in the investment866plan is forfeited.8673. For purposes of this paragraph, “local employer” means868any employer not included in paragraph (a) or paragraph (b).869 (c)(d)Contributions available for self-direction by a 870 member who has not selected one or more specific investment 871 products shall be allocated as prescribed by the state board. 872 The third-party administrator shall notify the member at least 873 quarterly that the member should take an affirmative action to 874 make an asset allocation among the investment products. 875 (d)(e)On or after July 1, 2011, a member of the pension 876 plan who obtains a refund of employee contributions retains his 877 or her prior plan choice upon return to employment in a 878 regularly established position with a participating employer. 879 (e)(f)A member of the investment plan who takes a 880 distribution of any contributions from his or her investment 881 plan account is considered a retiree. A memberretireewho 882 retiresis initially reemployed in a regularly established883positionon or after July 1, 2010, is not eligible to be 884 enrolled in renewed membership. A member who retired before July 885 1, 2010, and is employed on or after January 1, 2015, in a 886 regularly established position shall be a renewed member as 887 provided under s. 121.122. A retiree who returned to covered 888 employment before July 1, 2010, shall continue membership in the 889 plan as provided under s. 121.122. 890 (f)(g)After the period during which an eligible employee 891 had the choice to elect the pension plan or the investment plan, 892 or the month following the receipt of the eligible employee’s 893 plan election, if sooner, the employee shall have one 894 opportunity, at the employee’s discretion, tochoose tomove 895 from the pension plan to the investment plan or from the 896 investment plan to the pension plan. Eligible employees may 897 elect to move between plans only if they are earning service 898 credit in an employer-employee relationship consistent with s. 899 121.021(17)(b), excluding leaves of absence without pay. 900 Effective July 1, 2005, such elections are effective on the 901 first day of the month following the receipt of the election by 902 the third-party administrator and are not subject to the 903 requirements regarding an employer-employee relationship or 904 receipt of contributions for the eligible employee in the 905 effective month, except when the election is received by the 906 third-party administrator. This paragraph is contingent upon 907 approval by the Internal Revenue Service. This paragraph is not 908 applicable to compulsory members of the investment plan 909 described in paragraph (g). 910 1. If the employee chooses to move to the investment plan, 911the provisions ofsubsection (3) governsgovernthe transfer. 912 2. If the employee chooses to move to the pension plan, the 913 employee must transfer from his or her investment plan account, 914 and from other employee moneys as necessary, a sum representing 915 the present value of that employee’s accumulated benefit 916 obligation immediately following the time of such movement, 917 determined assuming that attained service equals the sum of 918 service in the pension plan and service in the investment plan. 919 Benefit commencement occurs on the first date the employee is 920 eligible for unreduced benefits, using the discount rate and 921 other relevant actuarial assumptions that were used to value the 922 pension plan liabilities in the most recent actuarial valuation. 923 For ananyemployee who, at the time of the second election, 924 already maintains an accrued benefit amount in the pension plan, 925 the then-present value of the accrued benefit is deemed part of 926 the required transfer amount. The division must ensure that the 927 transfer sum is prepared using a formula and methodology 928 certified by an enrolled actuary. A refund of any employee 929 contributions or additional member payments made which exceed 930 the employee contributions that would have accrued had the 931 member remained in the pension plan and not transferred to the 932 investment plan is not permitted. 933 3. Notwithstanding subparagraph 2., an employee who chooses 934 to move to the pension plan and who became eligible to 935 participate in the investment plan by reason of employment in a 936 regularly established position with a state employer after June 937 1, 2002; a district school board employer after September 1, 938 2002; or a local employer after December 1, 2002, must transfer 939 from his or her investment plan account, and from other employee 940 moneys as necessary, a sum representing the employee’s actuarial 941 accrued liability. A refund of any employee contributions or 942 additional memberparticipantpayments made which exceed the 943 employee contributions that would have accrued had the member 944 remained in the pension plan and not transferred to the 945 investment plan is not permitted. 946 4. An employee’s ability to transfer from the pension plan 947 to the investment plan pursuant to paragraphs (a) and (b)(a)948(d), and the ability of a current employee to have an option to 949 later transfer back into the pension plan under subparagraph 2., 950 shall be deemed a significant system amendment. Pursuant to s. 951 121.031(4), any resulting unfunded liability arising from actual 952 original transfers from the pension plan to the investment plan 953 must be amortized within 30 plan years as a separate unfunded 954 actuarial base independent of the reserve stabilization 955 mechanism describeddefinedin s. 121.031(3)(f). For the first 956 25 years, a direct amortization payment may not be calculated 957 for this base. During this 25-year period, the separate base 958 shall be used to offset the impact of employees exercising their 959 second program election under this paragraph. The actuarial 960 funded status of the pension plan will not be affected by such 961 second program elections in any significant manner, after due 962 recognition of the separate unfunded actuarial base. Following 963 the initial 25-year period, any remaining balance of the 964 original separate base shall be amortized over the remaining 5 965 years of the required 30-year amortization period. 966 5. If the employee chooses to transfer from the investment 967 plan to the pension plan and retains an excess account balance 968 in the investment plan after satisfying the buy-in requirements 969 under this paragraph, the excess may not be distributed until 970 the member retires from the pension plan. The excess account 971 balance may be rolled over to the pension plan and used to 972 purchase service credit or upgrade creditable service in the 973 pension plan. 974 (g) Except for members of the Elected Officers Class 975 eligible to withdraw from the Florida Retirement System under s. 976 121.052(3)(d) or eligible for optional retirement programs under 977 s. 121.051(1)(a), s. 121.051(2)(c), or s. 121.35, or described 978 in s. 121.052(2)(a)2. or (2)(b), an employee initially enrolled 979 in the Florida Retirement System on or after July 1, 2015, and 980 whose first employment in a regularly established position is 981 covered by the Elected Officers’ Class are compulsory members of 982 the investment plan. Investment plan membership continues for a 983 compulsory member even if the employee is subsequently employed 984 in a position covered by another membership class. Membership in 985 the pension plan by a compulsory member is not permitted except 986 as provided in s. 121.591(2). 987 1. Employees initially enrolled in the system before July 988 1, 2015, may retain their membership in the pension plan or 989 investment plan and are eligible to use the election opportunity 990 specified in paragraph (f). Compulsory members are not eligible 991 to use the election opportunity. 992 2. Employees eligible to withdraw from the system under s. 993 121.052(3)(d) may withdraw from the system or participate in the 994 investment plan as provided under those provisions. Employees 995 eligible for optional retirement programs under s. 121.051(2)(c) 996 or s. 121.35 may participate in the optional retirement program 997 or the investment plan as provided in those provisions. Eligible 998 employees required to participate in the optional retirement 999 program pursuant to s. 121.051(1)(a) as provided under s. 121.35 1000 must participate in the investment plan if employed in a 1001 position not eligible for the optional retirement program. 1002 3. The amount of retirement contributions paid by the 1003 employee and employer, as required under s. 121.72, shall be 1004 placed in a default fund designated by the state board, until an 1005 account is activated in the investment plan, at which time the 1006 member may move the contributions from the default fund to other 1007 funds provided in the investment plan. 1008 (5) CONTRIBUTIONS.— 1009 (c) The state board, acting as plan fiduciary, shallmust1010 ensure that all plan assets are held in a trust, pursuant to s. 1011 401 of the Internal Revenue Code. The fiduciary shallmust1012 ensure that such contributions are allocated as follows: 1013 1. The employer and employee contribution portion earmarked 1014 for member accounts shall be used to purchase interests in the 1015 appropriate investment vehicles as specified by the member, or 1016 in accordance with paragraph (4)(c)(4)(d). 1017 2. The employer contribution portion earmarked for 1018 administrative and educational expenses shall be transferred to 1019 the Florida Retirement System Investment Plan Trust Fund. 1020 3. The employer contribution portion earmarked for 1021 disability benefits shall be transferred to the Florida 1022 Retirement System Trust Fund. 1023 (8) INVESTMENT PLAN ADMINISTRATION.—The investment plan 1024 shall be administered by the state board and affected employers. 1025 The state board may require oaths, by affidavit or otherwise, 1026 and acknowledgments from persons in connection with the 1027 administration of its statutory duties and responsibilities for 1028 the investment plan. An oath, by affidavit or otherwise, ismay1029 notberequired of a member at the time of enrollment. Except 1030 for compulsory members described in paragraph (4)(g), 1031 acknowledgment of an employee’s election to participate in the 1032 program mayshallbe no greater than necessary to confirm the 1033 employee’s election. The state board shall adopt rules to carry 1034 out its statutory duties with respect to administering the 1035 investment plan, including establishing the roles and 1036 responsibilities of affected state, local government, and 1037 education-related employers, the state board, the department, 1038 and third-party contractors. The department shall adopt rules 1039 necessary to administer the investment plan in coordination with 1040 the pension plan and the disability benefits available under the 1041 investment plan. 1042 (a)1. The state board shall select and contract with a 1043 third-party administrator to provide administrative services if 1044 those services cannot be competitively and contractually 1045 provided by the division. With the approval of the state board, 1046 the third-party administrator may subcontract to provide 1047 components of the administrative services. As a cost of 1048 administration, the state board may compensateanysuch 1049 contractor for its services, in accordance with the terms of the 1050 contract, as is deemed necessary or proper by the board. The 1051 third-party administrator may not be an approved provider or be 1052 affiliated with an approved provider. 1053 2. These administrative services may include, but are not 1054 limited to, enrollment of eligible employees, collection of 1055 employer and employee contributions, disbursement of 1056 contributions to approved providers in accordance with the 1057 allocation directions of members; services relating to 1058 consolidated billing; individual and collective recordkeeping 1059 and accounting; asset purchase, control, and safekeeping; and 1060 direct disbursement of funds to and from the third-party 1061 administrator, the division, the state board, employers, 1062 members, approved providers, and beneficiaries. This section 1063 does not prevent or prohibit a bundled provider from providing 1064 any administrative or customer service, including accounting and 1065 administration of individual member benefits and contributions; 1066 individual member recordkeeping; asset purchase, control, and 1067 safekeeping; direct execution of the member’s instructions as to 1068 asset and contribution allocation; calculation of daily net 1069 asset values; direct access to member account information; or 1070 periodic reporting to members, at least quarterly, on account 1071 balances and transactions, if these services are authorized by 1072 the state board as part of the contract. 1073 (b)1. The state board shall select and contract with one or 1074 more organizations to provide educational services. With 1075 approval of the state board, the organizations may subcontract 1076 to provide components of the educational services. As a cost of 1077 administration, the state board may compensate any such 1078 contractor for its services in accordance with the terms of the 1079 contract, as is deemed necessary or proper by the board. The 1080 education organization may not be an approved provider or be 1081 affiliated with an approved provider. 1082 2. Educational services shall be designed by the state 1083 board and department to assist employers, eligible employees, 1084 members, and beneficiaries in order to maintain compliance with 1085 United States Department of Labor regulations under s. 404(c) of 1086 the Employee Retirement Income Security Act of 1974 and to 1087 assist employees in their choice of pension plan or investment 1088 plan retirement alternatives. Educational services include, but 1089 are not limited to, disseminating educational materials; 1090 providing retirement planning education; explaining the pension 1091 plan and the investment plan; and offering financial planning 1092 guidance on matters such as investment diversification, 1093 investment risks, investment costs, and asset allocation. An 1094 approved provider may also provide educational information, 1095 including retirement planning and investment allocation 1096 information concerning its products and services. 1097 (c)1. In evaluating and selecting a third-party 1098 administrator, the state board shall establish criteria for 1099 evaluating the relative capabilities and qualifications of each 1100 proposed administrator. In developing such criteria, the state 1101 board shall consider: 1102 a. The administrator’s demonstrated experience in providing 1103 administrative services to public or private sector retirement 1104 systems. 1105 b. The administrator’s demonstrated experience in providing 1106 daily valued recordkeeping to defined contribution programs. 1107 c. The administrator’s ability and willingness to 1108 coordinate its activities with employers, the state board, and 1109 the division, and to supply to such employers, the board, and 1110 the division the information and data they require, including, 1111 but not limited to, monthly management reports, quarterly member 1112 reports, and ad hoc reports requested by the department or state 1113 board. 1114 d. The cost-effectiveness and levels of the administrative 1115 services provided. 1116 e. The administrator’s ability to interact with the 1117 members, the employers, the state board, the division, and the 1118 providers; the means by which members may access account 1119 information, direct investment of contributions, make changes to 1120 their accounts, transfer moneys between available investment 1121 vehicles, and transfer moneys between investment products; and 1122 any fees that apply to such activities. 1123 f. Any other factor deemed necessary by the state board. 1124 2. In evaluating and selecting an educational provider, the 1125 state board shall establish criteria under which it shall 1126 consider the relative capabilities and qualifications of each 1127 proposed educational provider. In developing such criteria, the 1128 state board shall consider: 1129 a. Demonstrated experience in providing educational 1130 services to public or private sector retirement systems. 1131 b. Ability and willingness to coordinate its activities 1132 with the employers, the state board, and the division, and to 1133 supply to such employers, the board, and the division the 1134 information and data they require, including, but not limited 1135 to, reports on educational contacts. 1136 c. The cost-effectiveness and levels of the educational 1137 services provided. 1138 d. Ability to provide educational services via different 1139 media, including, but not limited to, the Internet, personal 1140 contact, seminars, brochures, and newsletters. 1141 e. Any other factor deemed necessary by the state board. 1142 3. The establishment of the criteria shall be solely within 1143 the discretion of the state board. 1144 (d) The state board shall develop the form and content of 1145 any contracts to be offered under the investment plan. In 1146 developing the contracts, the board shall consider: 1147 1. The nature and extent of the rights and benefits to be 1148 afforded in relation to the contributions required under the 1149 plan. 1150 2. The suitability of the rights and benefits provided and 1151 the interests of employers in the recruitment and retention of 1152 eligible employees. 1153 (e)1. The state board may contract for professional 1154 services, including legal, consulting, accounting, and actuarial 1155 services, deemed necessary to implement and administer the 1156 investment plan. The state board may enter into a contract with 1157 one or more vendors to provide low-cost investment advice to 1158 members, supplemental to education provided by the third-party 1159 administrator. All fees under any such contract shall be paid by 1160 those members who choose to use the services of the vendor. 1161 2. The department may contract for professional services, 1162 including legal, consulting, accounting, and actuarial services, 1163 deemed necessary to implement and administer the investment plan 1164 in coordination with the pension plan. The department, in 1165 coordination with the state board, may enter into a contract 1166 with the third-party administrator in order to coordinate 1167 services common to the various programs within the Florida 1168 Retirement System. 1169 (f) The third-party administrator may not receive direct or 1170 indirect compensation from an approved provider, except as 1171 specifically providedforin the contract with the state board. 1172 (g) The state board shall receive and resolve member 1173 complaints against the program, the third-party administrator, 1174 or any program vendor or provider; shall resolve any conflict 1175 between the third-party administrator and an approved provider 1176 if such conflict threatens the implementation or administration 1177 of the program or the quality of services to employees; and may 1178 resolve any other conflicts. The third-party administrator shall 1179 retain all member records for at least 5 years for use in 1180 resolvinganymember conflicts. The state board, the third-party 1181 administrator, or a provider is not required to produce 1182 documentation or an audio recording to justify action taken with 1183 regard to a member if the action occurred 5 or more years before 1184 the complaint is submitted to the state board. It is presumed 1185 that all action taken 5 or more years before the complaint is 1186 submitted was taken at the request of the member and with the 1187 member’s full knowledge and consent. To overcome this 1188 presumption, the member must present documentary evidence or an 1189 audio recording demonstrating otherwise. 1190 (10) EDUCATION COMPONENT.— 1191 (a) The state board, in coordination with the department, 1192 shall provideforan education component for eligible employees 1193system membersin a manner consistent withthe provisions of1194 this subsectionsection.The education component must be1195available to eligible employees at least 90 days prior to the1196beginning date of the election period for the employees of the1197respective types of employers.1198 (b) Except for compulsory members described in paragraph 1199 (4)(g), the education component must provide system members with 1200 impartial and balanced information about plan choices. The 1201 education component must involve multimedia formats. Program 1202 comparisons must, to the greatest extent possible, be based upon 1203 the retirement income that different retirement programs may 1204 provide to the member. The state board shall monitor the 1205 performance of the contract to ensure that the program is 1206 conducted in accordance with the contract, applicable law, and 1207 the rules of the state board. 1208 (c) Except for compulsory members described in paragraph 1209 (4)(g), the state board, in coordination with the department, 1210 shall provide for an initial and ongoing transfer education 1211 component to provide system members with information necessary 1212 to make informed plan choice decisions. The transfer education 1213 component must include, but is not limited to, information on: 1214 1. The amount of money available to a member to transfer to 1215 the defined contribution program. 1216 2. The features of and differences between the pension plan 1217 and the defined contribution program, both generally and 1218 specifically, as those differences may affect the member. 1219 3. The expected benefit available if the member were to 1220 retire under each of the retirement programs, based on 1221 appropriate alternative sets of assumptions. 1222 4. The rate of return from investments in the defined 1223 contribution program and the period of time over which such rate 1224 of return must be achieved to equal or exceed the expected 1225 monthly benefit payable to the member under the pension plan. 1226 5. The historical rates of return for the investment 1227 alternatives available in the defined contribution programs. 1228 6. The benefits and historical rates of return on 1229 investments available in a typical deferred compensation plan or 1230 a typical plan under s. 403(b) of the Internal Revenue Code for 1231 which the employee may be eligible. 1232 7. The program choices available to employees of the State 1233 University System and the comparative benefits of each available 1234 program, if applicable. 1235 8. Payout options available in each of the retirement 1236 programs. 1237(h) Pursuant to subsection (8), all Florida Retirement1238System employers have an obligation to regularly communicate the1239existence of the two Florida Retirement System plans and the1240plan choice in the natural course of administering their1241personnel functions, using the educational materials supplied by1242the state board and the Department of Management Services.1243 Section 10. Paragraph (b) of subsection (2) of section 1244 121.591, Florida Statutes, is amended to read: 1245 121.591 Payment of benefits.—Benefits may not be paid under 1246 the Florida Retirement System Investment Plan unless the member 1247 has terminated employment as provided in s. 121.021(39)(a) or is 1248 deceased and a proper application has been filed as prescribed 1249 by the state board or the department. Benefits, including 1250 employee contributions, are not payable under the investment 1251 plan for employee hardships, unforeseeable emergencies, loans, 1252 medical expenses, educational expenses, purchase of a principal 1253 residence, payments necessary to prevent eviction or foreclosure 1254 on an employee’s principal residence, or any other reason except 1255 a requested distribution for retirement, a mandatory de minimis 1256 distribution authorized by the administrator, or a required 1257 minimum distribution provided pursuant to the Internal Revenue 1258 Code. The state board or department, as appropriate, may cancel 1259 an application for retirement benefits if the member or 1260 beneficiary fails to timely provide the information and 1261 documents required by this chapter and the rules of the state 1262 board and department. In accordance with their respective 1263 responsibilities, the state board and the department shall adopt 1264 rules establishing procedures for application for retirement 1265 benefits and for the cancellation of such application if the 1266 required information or documents are not received. The state 1267 board and the department, as appropriate, are authorized to cash 1268 out a de minimis account of a member who has been terminated 1269 from Florida Retirement System covered employment for a minimum 1270 of 6 calendar months. A de minimis account is an account 1271 containing employer and employee contributions and accumulated 1272 earnings of not more than $5,000 made under the provisions of 1273 this chapter. Such cash-out must be a complete lump-sum 1274 liquidation of the account balance, subject to the provisions of 1275 the Internal Revenue Code, or a lump-sum direct rollover 1276 distribution paid directly to the custodian of an eligible 1277 retirement plan, as defined by the Internal Revenue Code, on 1278 behalf of the member. Any nonvested accumulations and associated 1279 service credit, including amounts transferred to the suspense 1280 account of the Florida Retirement System Investment Plan Trust 1281 Fund authorized under s. 121.4501(6), shall be forfeited upon 1282 payment of any vested benefit to a member or beneficiary, except 1283 for de minimis distributions or minimum required distributions 1284 as provided under this section. If any financial instrument 1285 issued for the payment of retirement benefits under this section 1286 is not presented for payment within 180 days after the last day 1287 of the month in which it was originally issued, the third-party 1288 administrator or other duly authorized agent of the state board 1289 shall cancel the instrument and credit the amount of the 1290 instrument to the suspense account of the Florida Retirement 1291 System Investment Plan Trust Fund authorized under s. 1292 121.4501(6). Any amounts transferred to the suspense account are 1293 payable upon a proper application, not to include earnings 1294 thereon, as provided in this section, within 10 years after the 1295 last day of the month in which the instrument was originally 1296 issued, after which time such amounts and any earnings 1297 attributable to employer contributions shall be forfeited. Any 1298 forfeited amounts are assets of the trust fund and are not 1299 subject to chapter 717. 1300 (2) DISABILITY RETIREMENT BENEFITS.—Benefits provided under 1301 this subsection are payable in lieu of the benefits that would 1302 otherwise be payable under the provisions of subsection (1). 1303 Such benefits must be funded from employer contributions made 1304 under s. 121.571, transferred employee contributions and funds 1305 accumulated pursuant to paragraph (a), and interest and earnings 1306 thereon. 1307 (b) Disability retirement; entitlement.— 1308 1.a. A member of the investment plan initially enrolled 1309 before July 1, 2015, who becomes totally and permanently 1310 disabled, as defined in paragraph (d), after completing 8 years 1311 of creditable service, or a member who becomes totally and 1312 permanently disabled in the line of duty regardless of length of 1313 service, is entitled to a monthly disability benefit. 1314 b. A member of the investment plan initially enrolled on or 1315 after July 1, 2015, who becomes totally and permanently 1316 disabled, as defined in paragraph (d), after completing 10 years 1317 of creditable service, or a member who becomes totally and 1318 permanently disabled in the line of duty regardless of service, 1319 is entitled to a monthly disability benefit. 1320 2. In order for service to apply toward the8years of 1321 creditable service required for regular disability benefits, or 1322 toward the creditable service used in calculating a service 1323 based benefit as provided under paragraph (g), the service must 1324 be creditable service as described below: 1325 a. The member’s period of service under the investment plan 1326 isshall beconsidered creditable service, except as provided in 1327 subparagraph d. 1328 b. If the member has elected to retain credit for service 1329 under the pension plan as provided under s. 121.4501(3), all 1330 such service isshall beconsidered creditable service. 1331 c. If the member elects to transfer to his or her member 1332 accounts a sum representing the present value of his or her 1333 retirement credit under the pension plan as provided under s. 1334 121.4501(3), the period of service under the pension plan 1335 represented in the present value amounts transferred isshall be1336 considered creditable service, except as provided in 1337 subparagraph d. 1338 d. If a member has terminated employment and has taken 1339 distribution of his or her funds as provided in subsection (1), 1340 all creditable service represented by such distributed funds is 1341 forfeited for purposes of this subsection. 1342 Section 11. Section 238.072, Florida Statutes, is amended 1343 to read: 1344 238.072 Special service provisions for extension 1345 personnel.—All state and county cooperative extension personnel 1346 holding appointments by the United States Department of 1347 Agriculture for extension work in agriculture and home economics 1348 in this state who are joint representatives of the University of 1349 Florida and the United States Department of Agriculture, as 1350 provided in s. 121.051(8)s.121.051(7), who are members of the 1351 Teachers’ Retirement System, chapter 238, and who are prohibited 1352 from transferring to and participating in the Florida Retirement 1353 System, chapter 121, may retire with full benefits upon 1354 completion of 30 years of creditable service and shall be 1355 considered to have attained normal retirement age under this 1356 chapter, any law to the contrary notwithstanding. In order to 1357 comply withthe provisions ofs. 14, Art. X of the State 1358 Constitution, any liability accruing to the Florida Retirement 1359 System Trust Fund as a result ofthe provisions ofthis section 1360 shall be paid on an annual basis from the General Revenue Fund. 1361 Section 12. Subsection (11) of section 413.051, Florida 1362 Statutes, is amended to read: 1363 413.051 Eligible blind persons; operation of vending 1364 stands.— 1365 (11) Effective July 1, 1996, blind licensees who remain 1366 members of the Florida Retirement System pursuant to s. 1367 121.051(7)(b)1.121.051(6)(b)1.shall pay any unappropriated 1368 retirement costs from their net profits or from program income. 1369 Within 30 days after the effective date of this act, each blind 1370 licensee who is eligible to maintain membership in the Florida 1371 Retirement System under s. 121.051(7)(b)1.121.051(6)(b)1., but 1372 who elects to withdraw from the system as provided in s. 1373 121.051(7)(b)3.121.051(6)(b)3., must, on or before July 31, 1374 1996, notify the Division of Blind Services and the Department 1375 of Management Services in writing of his or her election to 1376 withdraw. Failure to timely notify the divisions shall be deemed 1377 a decision to remain a compulsory member of the Florida 1378 Retirement System. However, if, at any time after July 1, 1996, 1379 sufficient funds are not paid by a blind licensee to cover the 1380 required contribution to the Florida Retirement System, that 1381 blind licensee shall become ineligible to participate in the 1382 Florida Retirement System on the last day of the first month for 1383 which no contribution is made or the amount contributed is 1384 insufficient to cover the required contribution. For any blind 1385 licensee who becomes ineligible to participate in the Florida 1386 Retirement System as described in this subsection,nocreditable 1387 service may notshallbe earned under the Florida Retirement 1388 System for any period following the month that retirement 1389 contributions ceased to be reported. However,anysuch person 1390 may participate in the Florida Retirement System in the future 1391 if employed by a participating employer in a covered position. 1392 Section 13. (1) As soon as practicable, the State Board of 1393 Administration and the Department of Management Services shall 1394 request a determination letter from the United States Internal 1395 Revenue Service as to whether any portion of this act will cause 1396 the Florida Retirement System or a portion thereof to be 1397 disqualified for tax purposes under the Internal Revenue Code. 1398 If the Internal Revenue Service refuses to act upon a request 1399 for a determination letter, a legal opinion from a qualified tax 1400 attorney or firm may be substituted for the determination 1401 letter. If the board or the department receives notification 1402 from the Internal Revenue Service that this act or any portion 1403 of this act will cause the Florida Retirement System, or a 1404 portion thereof, to be disqualified for tax purposes under the 1405 Internal Revenue Code, that portion that will cause the 1406 disqualification does not apply. Upon receipt of such notice, 1407 the state board and the department shall notify the President of 1408 the Senate and the Speaker of the House of Representatives. 1409 (2) The State Board of Administration and the Department of 1410 Management Services shall also seek guidance from the United 1411 States Internal Revenue Service regarding potential consequences 1412 to the qualified status of the Florida Retirement System if the 1413 pension plan and the investment plan were to offer different 1414 pretax employee contributions rates to members participating in 1415 the same membership class. Upon receipt of such guidance, the 1416 state board and the department shall notify the President of the 1417 Senate and the Speaker of the House of Representatives. 1418 1419 ================= T I T L E A M E N D M E N T ================ 1420 And the title is amended as follows: 1421 Delete lines 8 - 96 1422 and insert: 1423 providing for compulsory membership in the Florida 1424 Retirement System Investment Plan for certain members 1425 of the Elected Officers’ Class initially enrolled 1426 after a certain date; amending s. 121.052, F.S.; 1427 differentiating between cabinet members and judicial 1428 members of the Elected Officers Class; prohibiting 1429 members of the Elected Officers’ Class from joining 1430 the Senior Management Service Class after a specified 1431 date; amending s. 121.053, F.S.; authorizing renewed 1432 membership in the retirement system for retirees who 1433 are reemployed in a position eligible for the Elected 1434 Officers’ Class under certain circumstances; amending 1435 s. 121.055, F.S.; limiting the options of elected 1436 officers employed after a certain date to enroll in 1437 the Senior Management Service Class or in the Senior 1438 Management Service Optional Annuity Program; closing 1439 the Senior Management Optional Annuity Program to new 1440 members after a specified date; amending s. 121.091, 1441 F.S.; providing that certain members are entitled to a 1442 monthly disability benefit; revising provisions to 1443 conform to changes made by the act; amending s. 1444 121.122, F.S.; requiring that certain retirees who are 1445 employed on or after a specified date be renewed 1446 members in the investment plan; providing exceptions; 1447 providing that creditable service does not accrue for 1448 a reemployed retiree during a specified period; 1449 prohibiting certain funds from being paid into a 1450 renewed member’s investment plan account for a 1451 specified period of employment; requiring the renewed 1452 member to satisfy vesting requirements; prohibiting a 1453 renewed member from receiving disability benefits; 1454 specifying requirements and limitations; requiring the 1455 employer and the retiree to make applicable 1456 contributions to the member’s investment plan account; 1457 providing for the administration of the employer and 1458 employee contributions; prohibiting the purchase of 1459 past service in the investment plan during certain 1460 dates; authorizing a renewed member to receive 1461 additional credit toward the health insurance subsidy 1462 under certain circumstances; providing that a retiree 1463 employed on or after a specified date in a regularly 1464 established position eligible for the State University 1465 System Optional Retirement Program is a renewed member 1466 of that program; specifying requirements and 1467 limitations; requiring the employer and the retiree to 1468 make applicable contributions; prohibiting the 1469 purchase of past service in the program during certain 1470 dates; providing that a retiree employed on or after a 1471 specified date in a regularly established position 1472 eligible for the State Community College System 1473 Optional Retirement Program is a renewed member of 1474 that program; specifying requirements and limitations; 1475 requiring the employer and the retiree to make 1476 applicable contributions; prohibiting the purchase of 1477 past service in the program for certain dates; 1478 amending s. 121.35, F.S.; providing that certain 1479 participants in the optional retirement program for 1480 the State University System have a choice between the 1481 optional retirement program and the Florida Retirement 1482 System Investment Plan; amending s. 121.4501, F.S.; 1483 requiring certain employees initially enrolled in the 1484 Florida Retirement System on or after a specified date 1485 to be compulsory members of the investment plan; 1486 revising the definition of the terms “eligible 1487 employee” and “member” or “employee”; revising a 1488 provision relating to acknowledgment of an employee’s 1489 election to participate in the investment plan; 1490 placing certain employees in the pension plan from 1491 their respective dates of hire until they are 1492 automatically enrolled in the investment plan or 1493 timely elect enrollment in the pension plan; 1494 authorizing certain employees to elect to participate 1495 in the pension plan, rather than the default 1496 investment plan, within a specified time; specifying 1497 that a retiree who has returned to covered employment 1498 before a specified date may continue membership in his 1499 or her selected retirement plan; conforming a 1500 provision to changes made by the act; providing for 1501 the transfer of certain contributions; revising the 1502 education component; deleting the obligation of system 1503 employers to communicate the existence of both 1504 retirement plans; conforming provisions and cross 1505 references to changes made by the act; amending s. 1506 121.591, F.S.; revising provisions relating to 1507 disability retirement benefits; amending ss. 238.072 1508 and 413.051, F.S.; conforming cross-references; 1509 requiring the State Board of Administration and 1510 Department of Management Services to request a 1511 determination letter from the Internal Revenue Service 1512 as to whether any provision under the act will cause 1513 the Florida Retirement System to be disqualified for 1514 tax purposes and, if so, to notify the Legislature; 1515 requiring the board and department to also seek 1516 guidance regarding the consequences of differing tax 1517 contributions; providing that the act