| 1 | A bill to be entitled |
| 2 | An act relating to retirement; amending ss. 110.123, |
| 3 | 112.363, and 112.65, F.S.; conforming provisions to |
| 4 | changes made by the act; amending s. 121.021, F.S.; |
| 5 | revising definitions; amending s. 121.051, F.S.; requiring |
| 6 | that a local governmental entity or the governing body of |
| 7 | a charter school or charter technical career center make |
| 8 | certain elections regarding benefits at the time the |
| 9 | entity or governing body joins the Florida Retirement |
| 10 | System; providing that employer-paid employee |
| 11 | contributions are subject to certain taxes; amending s. |
| 12 | 121.0515, F.S.; redefining membership in the Special Risk |
| 13 | Class; redefining criteria for Special Risk Class |
| 14 | membership; providing procedures for designation and |
| 15 | removal of designation of Special Risk Class members; |
| 16 | providing for employee contributions to be used, if |
| 17 | applicable, when purchasing credit for past service; |
| 18 | amending s. 121.052, F.S., relating to the membership |
| 19 | class of elected officers; conforming provisions to |
| 20 | changes made by the act; requiring member contributions; |
| 21 | providing for a refund of contributions under certain |
| 22 | circumstances for an officer who leaves office; providing |
| 23 | that a member who obtains a refund of contributions waives |
| 24 | certain rights under the Florida Retirement System; |
| 25 | amending s. 121.053, F.S.; clarifying the employer |
| 26 | contributions required for Elected Officers' Class members |
| 27 | who participate in the Deferred Retirement Option Program; |
| 28 | amending s. 121.055, F.S., relating to the Senior |
| 29 | Management Service Class; conforming provisions to changes |
| 30 | made by the act; requiring employee contributions; |
| 31 | providing for a refund of contributions under certain |
| 32 | circumstances for a member who terminates employment; |
| 33 | providing that a member who obtains a refund of |
| 34 | contributions waives certain rights under the Florida |
| 35 | Retirement System; limiting the payment of benefits prior |
| 36 | to a participant's termination of employment; amending s. |
| 37 | 121.071, F.S.; requiring employee and employer |
| 38 | contributions to the retirement system effective July 1, |
| 39 | 2011; providing for a refund of contributions under |
| 40 | certain circumstances following termination of employment; |
| 41 | prohibiting such refund if an approved qualified domestic |
| 42 | relations order is filed against the participant's |
| 43 | retirement account; requiring repayment plus interest of |
| 44 | an invalid refund; amending s. 121.081, F.S.; providing |
| 45 | and revising requirements for contributions for prior |
| 46 | service performed on or after July 1, 2011; amending s. |
| 47 | 121.091, F.S.; modifying the monthly benefit calculation |
| 48 | for those members retiring on or after July 1, 2011, to |
| 49 | reflect the change in normal retirement age; providing for |
| 50 | the refund of accumulated contributions if a member's |
| 51 | employment is terminated for any reason other than |
| 52 | retirement; closing the Deferred Retirement Option Program |
| 53 | to new participants on July 1, 2011; amending s. 121.121, |
| 54 | F.S., relating to the purchase of creditable service |
| 55 | following an authorized leave of absence; requiring that |
| 56 | service credit be purchased at the employee and employer |
| 57 | contribution rates in effect during the leave of absence |
| 58 | effective a certain date; amending s. 121.125, F.S.; |
| 59 | requiring that certain employers make the required |
| 60 | employee and employer retirement contributions following |
| 61 | an employee's workers' compensation injury or illness; |
| 62 | requiring that a penalty be assessed against certain |
| 63 | employers that fail to pay the required contributions; |
| 64 | reenacting s. 121.161, F.S., relating to the references of |
| 65 | other laws as amended; amending s. 121.35, F.S., relating |
| 66 | to the optional retirement program for the State |
| 67 | University System; limiting the payment of benefits prior |
| 68 | to a participant's termination of employment; amending s. |
| 69 | 121.4501, F.S.; changing the name of the Public Employee |
| 70 | Optional Retirement Program to the Florida Retirement |
| 71 | System Investment Plan; requiring members of the Florida |
| 72 | Retirement System Investment Plan to make certain |
| 73 | contributions to the Florida Retirement System Investment |
| 74 | Plan Trust Fund based on the employee's membership class; |
| 75 | revising and providing definitions; revising the benefit |
| 76 | commencement age for a member enrolled on or after July 1, |
| 77 | 2011; providing for contribution adjustments as a result |
| 78 | of employer errors or corrections; requiring an employer |
| 79 | to receive a credit for excess contributions and to |
| 80 | reimburse an employee for excess contributions, subject to |
| 81 | certain limitations; providing for a pension plan |
| 82 | participant to retain his or her prior plan choice |
| 83 | following a return to employment; limiting certain refunds |
| 84 | of contributions which exceed the amount that would have |
| 85 | accrued had the member remained in the defined benefit |
| 86 | program; providing certain requirements and limitations |
| 87 | with respect to contributions; clarifying that participant |
| 88 | and employer contributions are earmarked for specified |
| 89 | purposes; providing duties of the third-party |
| 90 | administrator; providing that a member is fully and |
| 91 | immediately vested with respect to employee contributions |
| 92 | paid by the member; providing for the forfeiture of |
| 93 | nonvested employer contributions and service credit under |
| 94 | certain circumstances; amending s. 121.4502, F.S.; |
| 95 | changing the name of the Public Employee Optional |
| 96 | Retirement Program Trust Fund to the Florida Retirement |
| 97 | System Investment Plan Trust Fund; amending s. 121.4503, |
| 98 | F.S.; providing for the deposit of participant |
| 99 | contributions into the Florida Retirement System |
| 100 | Contributions Clearing Trust Fund; amending s. 121.571, |
| 101 | F.S.; providing requirements for submitting employee |
| 102 | contributions; amending s. 121.591, F.S.; limiting the |
| 103 | payment of benefits prior to a participant's termination |
| 104 | of employment; providing for the forfeiture of nonvested |
| 105 | accumulations and service credits upon payment of certain |
| 106 | vested benefits; providing that the distribution payment |
| 107 | method selected by the participant or beneficiary is final |
| 108 | and irrevocable at the time of benefit distribution; |
| 109 | prohibiting a distribution of employee contributions if a |
| 110 | qualified domestic relations order is filed against the |
| 111 | participant's account; amending s. 121.5911, F.S.; |
| 112 | conforming provisions to changes made by the act; amending |
| 113 | s. 121.70, F.S.; revising legislative intent; amending s. |
| 114 | 121.71, F.S.; requiring that employee contributions be |
| 115 | deducted from the employee's monthly salary, beginning on |
| 116 | a specified date, and treated as employer contributions |
| 117 | under certain provisions of federal law; clarifying that |
| 118 | an employee may not receive such contributions directly; |
| 119 | specifying the required employee retirement contribution |
| 120 | rates for the membership of each membership class and |
| 121 | subclass of the Florida Retirement System; specifying the |
| 122 | required employer retirement contribution rates for each |
| 123 | membership class and subclass of the Florida Retirement |
| 124 | System in order to address unfunded actuarial liabilities |
| 125 | of the system; requiring an assessment to be imposed if |
| 126 | the employee contributions remitted are less than the |
| 127 | amount required under certain circumstances; providing for |
| 128 | the employer to receive a credit for excess contributions |
| 129 | remitted and to apply such credit against future |
| 130 | contributions owed; amending ss. 121.72, 121.73, 121.74, |
| 131 | 121.75, and 121.77, F.S.; conforming provisions to changes |
| 132 | made by the act; amending s. 121.78, F.S.; revising |
| 133 | certain requirements for administering the payment and |
| 134 | distribution of contributions; requiring that certain fees |
| 135 | be imposed for delinquent payments; providing that an |
| 136 | employer is responsible for recovering any refund provided |
| 137 | to an employee in error; revising the terms of an |
| 138 | authorized waiver of delinquency; requiring an employer to |
| 139 | receive a credit for excess contributions and to reimburse |
| 140 | an employee for excess contributions, subject to certain |
| 141 | limitations; requiring the State Board of Administration |
| 142 | and the Department of Management Services to request a |
| 143 | determination letter and private letter ruling from the |
| 144 | United States Internal Revenue Service; providing for |
| 145 | severability; providing legislative findings; providing |
| 146 | that the act fulfills an important state interest; |
| 147 | providing appropriations to and authorizing additional |
| 148 | positions for the Division of Retirement within the |
| 149 | Department of Management Services; providing an effective |
| 150 | date. |
| 151 |
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| 152 | Be It Enacted by the Legislature of the State of Florida: |
| 153 |
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| 154 | Section 1. Paragraph (g) of subsection (2) of section |
| 155 | 110.123, Florida Statutes, is amended to read: |
| 156 | 110.123 State group insurance program.- |
| 157 | (2) DEFINITIONS.-As used in this section, the term: |
| 158 | (g) "Retired state officer or employee" or "retiree" means |
| 159 | any state or state university officer or employee who retires |
| 160 | under a state retirement system or a state optional annuity or |
| 161 | retirement program or is placed on disability retirement, and |
| 162 | who was insured under the state group insurance program at the |
| 163 | time of retirement, and who begins receiving retirement benefits |
| 164 | immediately after retirement from state or state university |
| 165 | office or employment. The term also includes In addition to |
| 166 | these requirements, any state officer or state employee who |
| 167 | retires under the Florida Retirement System Investment Plan |
| 168 | Public Employee Optional Retirement Program established under |
| 169 | part II of chapter 121 shall be considered a "retired state |
| 170 | officer or employee" or "retiree" as used in this section if he |
| 171 | or she: |
| 172 | 1. Meets the age and service requirements to qualify for |
| 173 | normal retirement as set forth in s. 121.021(29); or |
| 174 | 2. Has attained the age specified by s. 72(t)(2)(A)(i) of |
| 175 | the Internal Revenue Code and has 6 years of creditable service. |
| 176 | Section 2. Paragraph (b) of subsection (2) and paragraph |
| 177 | (e) of subsection (3) of section 112.363, Florida Statutes, are |
| 178 | amended to read: |
| 179 | 112.363 Retiree health insurance subsidy.- |
| 180 | (2) ELIGIBILITY FOR RETIREE HEALTH INSURANCE SUBSIDY.- |
| 181 | (b) For purposes of this section, a person is deemed |
| 182 | retired from a state-administered retirement system when he or |
| 183 | she terminates employment with all employers participating in |
| 184 | the Florida Retirement System as described in s. 121.021(39) |
| 185 | and: |
| 186 | 1. For a member participant of the investment plan Public |
| 187 | Employee Optional Retirement Program established under part II |
| 188 | of chapter 121, the participant meets the age or service |
| 189 | requirements to qualify for normal retirement as set forth in s. |
| 190 | 121.021(29) and meets the definition of retiree in s. |
| 191 | 121.4501(2). |
| 192 | 2. For a member of the Florida Retirement System Pension |
| 193 | Plan defined benefit program, or any employee who maintains |
| 194 | creditable service under both the pension plan defined benefit |
| 195 | program and the investment plan Public Employee Optional |
| 196 | Retirement Program, the member begins drawing retirement |
| 197 | benefits from the pension plan defined benefit program of the |
| 198 | Florida Retirement System. |
| 199 | (3) RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.- |
| 200 | (e)1. Beginning July 1, 2001, each eligible retiree of the |
| 201 | pension plan defined benefit program of the Florida Retirement |
| 202 | System, or, if the retiree is deceased, his or her beneficiary |
| 203 | who is receiving a monthly benefit from such retiree's account |
| 204 | and who is a spouse, or a person who meets the definition of |
| 205 | joint annuitant in s. 121.021(28), shall receive a monthly |
| 206 | retiree health insurance subsidy payment equal to the number of |
| 207 | years of creditable service, as defined in s. 121.021(17), |
| 208 | completed at the time of retirement multiplied by $5; however, |
| 209 | no eligible retiree or beneficiary may receive a subsidy payment |
| 210 | of more than $150 or less than $30. If there are multiple |
| 211 | beneficiaries, the total payment may must not be greater than |
| 212 | the payment to which the retiree was entitled. The health |
| 213 | insurance subsidy amount payable to any person receiving the |
| 214 | retiree health insurance subsidy payment on July 1, 2001, may |
| 215 | shall not be reduced solely by operation of this subparagraph. |
| 216 | 2. Beginning July 1, 2002, each eligible participant of |
| 217 | the investment plan Public Employee Optional Retirement Program |
| 218 | of the Florida Retirement System who has met the requirements of |
| 219 | this section, or, if the participant is deceased, his or her |
| 220 | spouse who is the participant's designated beneficiary, shall |
| 221 | receive a monthly retiree health insurance subsidy payment equal |
| 222 | to the number of years of creditable service, as provided in |
| 223 | this subparagraph, completed at the time of retirement, |
| 224 | multiplied by $5; however, an no eligible retiree or beneficiary |
| 225 | may not receive a subsidy payment of more than $150 or less than |
| 226 | $30. For purposes of determining a participant's creditable |
| 227 | service used to calculate the health insurance subsidy, a |
| 228 | participant's years of service credit or fraction thereof shall |
| 229 | be based on the participant's work year as defined in s. |
| 230 | 121.021(54). Credit must shall be awarded for a full work year |
| 231 | if whenever health insurance subsidy contributions have been |
| 232 | made as required by law for each month in the participant's work |
| 233 | year. In addition, all years of creditable service retained |
| 234 | under the Florida Retirement System Pension Plan must defined |
| 235 | benefit program shall be included as creditable service for |
| 236 | purposes of this section. Notwithstanding any other provision in |
| 237 | this section to the contrary, the spouse at the time of death is |
| 238 | shall be the participant's beneficiary unless such participant |
| 239 | has designated a different beneficiary subsequent to the |
| 240 | participant's most recent marriage. |
| 241 | Section 3. Subsection (1) of section 112.65, Florida |
| 242 | Statutes, is amended to read: |
| 243 | 112.65 Limitation of benefits.- |
| 244 | (1) ESTABLISHMENT OF PROGRAM.-The normal retirement |
| 245 | benefit or pension payable to a retiree who becomes a member of |
| 246 | any retirement system or plan and who has not previously |
| 247 | participated in such plan, on or after January 1, 1980, may |
| 248 | shall not exceed 100 percent of his or her average final |
| 249 | compensation. However, nothing contained in this section does |
| 250 | not shall apply to supplemental retirement benefits or to |
| 251 | pension increases attributable to cost-of-living increases or |
| 252 | adjustments. For the purposes of this section, benefits accruing |
| 253 | in individual member participant accounts established under the |
| 254 | investment plan Public Employee Optional Retirement Program |
| 255 | established in part II of chapter 121 are considered |
| 256 | supplemental benefits. As used in this section, the term |
| 257 | "average final compensation" means the average of the member's |
| 258 | earnings over a period of time which the governmental entity has |
| 259 | established by statute, charter, or ordinance. |
| 260 | Section 4. Subsections (3) and (15), paragraph (a) of |
| 261 | subsection (19), paragraph (b) of subsection (22), and |
| 262 | subsections (29), (38), (39), (55), and (59) of section 121.021, |
| 263 | Florida Statutes, are amended to read: |
| 264 | 121.021 Definitions.-The following words and phrases as |
| 265 | used in this chapter have the respective meanings set forth |
| 266 | unless a different meaning is plainly required by the context: |
| 267 | (3) "System" means the general retirement system |
| 268 | established by this chapter to be known and cited as the |
| 269 | "Florida Retirement System," including, but not limited to, the |
| 270 | defined benefit retirement program administered under the |
| 271 | provisions of part I of this part, referred to as the "Florida |
| 272 | Retirement System Pension Plan" or "pension plan" chapter and |
| 273 | the defined contribution retirement program known as the Public |
| 274 | Employee Optional Retirement Program and administered under the |
| 275 | provisions of part II of this chapter, referred to as the |
| 276 | "Florida Retirement System Investment Plan" or "investment |
| 277 | plan". |
| 278 | (15) "Special risk member" or "Special Risk Class member" |
| 279 | means a member of the Florida Retirement System who meets the |
| 280 | eligibility and criteria in s. 121.0515 to participate in the |
| 281 | Special Risk Class. |
| 282 | (a) Until October 1, 1978, "special risk member" means any |
| 283 | officer or employee whose application is approved by the |
| 284 | administrator and who receives salary payments for work |
| 285 | performed as a peace officer; law enforcement officer; police |
| 286 | officer; highway patrol officer; custodial employee at a |
| 287 | correctional or detention facility; correctional agency employee |
| 288 | whose duties and responsibilities involve direct contact with |
| 289 | inmates, but excluding secretarial and clerical employees; |
| 290 | firefighter; or an employee in any other job in the field of law |
| 291 | enforcement or fire protection if the duties of such person are |
| 292 | certified as hazardous by his or her employer. |
| 293 | (b) Effective October 1, 1978, "special risk member" means |
| 294 | a member of the Florida Retirement System who is designated as a |
| 295 | special risk member by the division in accordance with s. |
| 296 | 121.0515. Such member must be employed as a law enforcement |
| 297 | officer, a firefighter, or a correctional officer and must meet |
| 298 | certain other special criteria as set forth in s. 121.0515. |
| 299 | (c) Effective October 1, 1999, "special risk member" means |
| 300 | a member of the Florida Retirement System who is designated as a |
| 301 | special risk member by the division in accordance with s. |
| 302 | 121.0515. Such member must be employed as a law enforcement |
| 303 | officer, a firefighter, a correctional officer, an emergency |
| 304 | medical technician, or a paramedic and must meet certain other |
| 305 | special criteria as set forth in s. 121.0515. |
| 306 | (d)1. Effective January 1, 2001, "special risk member" |
| 307 | includes any member who is employed as a community-based |
| 308 | correctional probation officer and meets the special criteria |
| 309 | set forth in s. 121.0515(2)(e). |
| 310 | 2. Effective January 1, 2001, "special risk member" |
| 311 | includes any professional health care bargaining unit or non- |
| 312 | unit member who is employed by the Department of Corrections or |
| 313 | the Department of Children and Family Services and meets the |
| 314 | special criteria set forth in s. 121.0515(2)(f). |
| 315 | (e) Effective July 1, 2001, the term "special risk member" |
| 316 | includes any member who is employed as a youth custody officer |
| 317 | by the Department of Juvenile Justice and meets the special |
| 318 | criteria set forth in s. 121.0515(2)(g). |
| 319 | (f) Effective August 1, 2008, "special risk member" |
| 320 | includes any member who meets the special criteria for continued |
| 321 | membership set forth in s. 121.0515(2)(k). |
| 322 | (19) "Prior service" under part I of this chapter means: |
| 323 | (a) Service for which the member had credit under one of |
| 324 | the existing systems and received a refund of his or her |
| 325 | contributions upon termination of employment. Prior service |
| 326 | shall also includes include that service between December 1, |
| 327 | 1970, and the date the system becomes noncontributory for which |
| 328 | the member had credit under the Florida Retirement System and |
| 329 | received a refund of his or her contributions upon termination |
| 330 | of employment. |
| 331 | (22) "Compensation" means the monthly salary paid a member |
| 332 | by his or her employer for work performed arising from that |
| 333 | employment. |
| 334 | (b) Under no circumstances shall Compensation for a member |
| 335 | participating in the pension plan defined benefit retirement |
| 336 | program or the investment plan Public Employee Optional |
| 337 | Retirement Program of the Florida Retirement System may not |
| 338 | include: |
| 339 | 1. Fees paid professional persons for special or |
| 340 | particular services or include salary payments made from a |
| 341 | faculty practice plan authorized by the Board of Governors of |
| 342 | the State University System for eligible clinical faculty at a |
| 343 | college in a state university that has a faculty practice plan; |
| 344 | or |
| 345 | 2. Any bonuses or other payments prohibited from inclusion |
| 346 | in the member's average final compensation and defined in |
| 347 | subsection (47). |
| 348 | (29) "Normal retirement date" means the date a member |
| 349 | attains normal retirement age and is vested, which is determined |
| 350 | as follows: |
| 351 | (a)1. If a Regular Class member, a Senior Management |
| 352 | Service Class member, or an Elected Officers' Class member |
| 353 | initially enrolled before July 1, 2011: |
| 354 | a.1. The first day of the month the member completes 6 or |
| 355 | more years of creditable service and attains age 62; or |
| 356 | b.2. The first day of the month following the date the |
| 357 | member completes 30 years of creditable service, regardless of |
| 358 | age. |
| 359 | 2. If a Regular Class member, a Senior Management Service |
| 360 | Class member, or an Elected Officers' Class member initially |
| 361 | enrolled on or after July 1, 2011: |
| 362 | a. The first day of the month the member completes 6 or |
| 363 | more years of creditable service and attains age 65; or |
| 364 | b. The first day of the month following the date the |
| 365 | member completes 33 years of creditable service, regardless of |
| 366 | age. |
| 367 | (b)1. If a Special Risk Class member initially enrolled |
| 368 | before July 1, 2011: |
| 369 | a.1. The first day of the month the member completes 6 or |
| 370 | more years of creditable service in the Special Risk Class and |
| 371 | attains age 55; |
| 372 | b.2. The first day of the month following the date the |
| 373 | member completes 25 years of creditable service in the Special |
| 374 | Risk Class, regardless of age; or |
| 375 | c.3. The first day of the month following the date the |
| 376 | member completes 25 years of creditable service and attains age |
| 377 | 52, which service may include a maximum of 4 years of military |
| 378 | service credit as long as such credit is not claimed under any |
| 379 | other system and the remaining years are in the Special Risk |
| 380 | Class. |
| 381 | 2. If a Special Risk Class member initially enrolled on or |
| 382 | after July 1, 2011: |
| 383 | a. The first day of the month the member completes 6 or |
| 384 | more years of creditable service in the Special Risk Class and |
| 385 | attains age 60; |
| 386 | b. The first day of the month following the date the |
| 387 | member completes 30 years of creditable service in the Special |
| 388 | Risk Class, regardless of age; or |
| 389 | c. The first day of the month following the date the |
| 390 | member completes 30 years of creditable service and attains age |
| 391 | 57, which service may include a maximum of 4 years of military |
| 392 | service credit as long as such credit is not claimed under any |
| 393 | other system and the remaining years are in the Special Risk |
| 394 | Class. |
| 395 |
|
| 396 | "Normal retirement age" is attained on the "normal retirement |
| 397 | date." |
| 398 | (38) "Continuous service" means creditable service as a |
| 399 | member, beginning with the first day of employment with an |
| 400 | employer covered under a state-administered retirement system |
| 401 | consolidated herein and continuing for as long as the member |
| 402 | remains in an employer-employee relationship with an employer |
| 403 | covered under this chapter. An absence of 1 calendar month or |
| 404 | more from an employer's payroll shall be considered a break in |
| 405 | continuous service, except for periods of absence during which |
| 406 | an employer-employee relationship continues to exist and such |
| 407 | period of absence is creditable under this chapter or under one |
| 408 | of the existing systems consolidated herein. However, a law |
| 409 | enforcement officer as defined in s. 121.0515(3)(2)(a) who was a |
| 410 | member of a state-administered retirement system under chapter |
| 411 | 122 or chapter 321 and who resigned and was subsequently |
| 412 | reemployed in a law enforcement position within 12 calendar |
| 413 | months of such resignation by an employer under such state- |
| 414 | administered retirement system shall be deemed to have not |
| 415 | experienced a break in service. Further, with respect to a |
| 416 | state-employed law enforcement officer who meets the criteria |
| 417 | specified in s. 121.0515(3)(2)(a), if the absence from the |
| 418 | employer's payroll is the result of a "layoff" as defined in s. |
| 419 | 110.107 or a resignation to run for an elected office that meets |
| 420 | the criteria specified in s. 121.0515(3)(2)(a), no break in |
| 421 | continuous service shall be deemed to have occurred if the |
| 422 | member is reemployed as a state law enforcement officer or is |
| 423 | elected to an office which meets the criteria specified in s. |
| 424 | 121.0515(3)(2)(a) within 12 calendar months after the date of |
| 425 | the layoff or resignation, notwithstanding the fact that such |
| 426 | period of layoff or resignation is not creditable service under |
| 427 | this chapter. A withdrawal of contributions will constitute a |
| 428 | break in service. Continuous service also includes past service |
| 429 | purchased under this chapter, provided such service is |
| 430 | continuous within this definition and the rules established by |
| 431 | the administrator. The administrator may establish |
| 432 | administrative rules and procedures for applying this definition |
| 433 | to creditable service authorized under this chapter. Any |
| 434 | correctional officer, as defined in s. 943.10, whose |
| 435 | participation in the state-administered retirement system is |
| 436 | terminated due to the transfer of a county detention facility |
| 437 | through a contractual agreement with a private entity pursuant |
| 438 | to s. 951.062, shall be deemed an employee with continuous |
| 439 | service in the Special Risk Class, provided return to employment |
| 440 | with the former employer takes place within 3 years due to |
| 441 | contract termination or the officer is employed by a covered |
| 442 | employer in a special risk position within 1 year after his or |
| 443 | her initial termination of employment by such transfer of its |
| 444 | detention facilities to the private entity. |
| 445 | (39)(a) "Termination" occurs, except as provided in |
| 446 | paragraph (b), when a member ceases all employment relationships |
| 447 | with participating employers an employer, however: |
| 448 | 1. For retirements effective before July 1, 2010, if a |
| 449 | member is employed by any such employer within the next calendar |
| 450 | month, termination shall be deemed not to have occurred. A leave |
| 451 | of absence constitutes a continuation of the employment |
| 452 | relationship, except that a leave of absence without pay due to |
| 453 | disability may constitute termination if such member makes |
| 454 | application for and is approved for disability retirement in |
| 455 | accordance with s. 121.091(4). The department or state board may |
| 456 | require other evidence of termination as it deems necessary. |
| 457 | 2. For retirements effective on or after July 1, 2010, if |
| 458 | a member is employed by any such employer within the next 6 |
| 459 | calendar months, termination shall be deemed not to have |
| 460 | occurred. A leave of absence constitutes a continuation of the |
| 461 | employment relationship, except that a leave of absence without |
| 462 | pay due to disability may constitute termination if such member |
| 463 | makes application for and is approved for disability retirement |
| 464 | in accordance with s. 121.091(4). The department or state board |
| 465 | may require other evidence of termination as it deems necessary. |
| 466 | (b) "Termination" for a member electing to participate in |
| 467 | the Deferred Retirement Option Program occurs when the program |
| 468 | participant ceases all employment relationships with |
| 469 | participating employers an employer in accordance with s. |
| 470 | 121.091(13), however: |
| 471 | 1. For termination dates occurring before July 1, 2010, if |
| 472 | the member participant is employed by any such employer within |
| 473 | the next calendar month, termination will be deemed not to have |
| 474 | occurred, except as provided in s. 121.091(13)(b)4.c. A leave of |
| 475 | absence shall constitute a continuation of the employment |
| 476 | relationship. |
| 477 | 2. For termination dates occurring on or after July 1, |
| 478 | 2010, if the member participant becomes employed by any such |
| 479 | employer within the next 6 calendar months, termination will be |
| 480 | deemed not to have occurred, except as provided in s. |
| 481 | 121.091(13)(b)4.c. A leave of absence constitutes a continuation |
| 482 | of the employment relationship. |
| 483 | (c) Effective July 1, 2011, "termination" for a member |
| 484 | receiving a refund of employee contributions occurs when a |
| 485 | member ceases all employment relationships with participating |
| 486 | employers for 3 calendar months. A leave of absence constitutes |
| 487 | a continuation of the employment relationship. |
| 488 | (55) "Benefit" means any pension payment, lump-sum or |
| 489 | periodic, to a member, retiree, or beneficiary, based partially |
| 490 | or entirely on employer contributions or employee contributions, |
| 491 | if applicable. |
| 492 | (59) "Payee" means a retiree or beneficiary of a retiree |
| 493 | who has received or is receiving a retirement benefit payment. |
| 494 | Section 5. Paragraphs (b) and (c) of subsection (2) and |
| 495 | subsection (3) of section 121.051, Florida Statutes, are amended |
| 496 | to read: |
| 497 | 121.051 Participation in the system.- |
| 498 | (2) OPTIONAL PARTICIPATION.- |
| 499 | (b)1. The governing body of any municipality, metropolitan |
| 500 | planning organization, or special district in the state may |
| 501 | elect to participate in the system upon proper application to |
| 502 | the administrator and may cover all or any of its units as |
| 503 | approved by the Secretary of Health and Human Services and the |
| 504 | administrator. The department shall adopt rules establishing |
| 505 | procedures provisions for the submission of documents necessary |
| 506 | for such application. Prior to being approved for participation |
| 507 | in the Florida Retirement System, the governing body of a any |
| 508 | such municipality, metropolitan planning organization, or |
| 509 | special district that has a local retirement system must shall |
| 510 | submit to the administrator a certified financial statement |
| 511 | showing the condition of the local retirement system as of a |
| 512 | date within 3 months prior to the proposed effective date of |
| 513 | membership in the Florida Retirement System. The statement must |
| 514 | be certified by a recognized accounting firm that is independent |
| 515 | of the local retirement system. All required documents necessary |
| 516 | for extending Florida Retirement System coverage must be |
| 517 | received by the department for consideration at least 15 days |
| 518 | prior to the proposed effective date of coverage. If the |
| 519 | municipality, metropolitan planning organization, or special |
| 520 | district does not comply with this requirement, the department |
| 521 | may require that the effective date of coverage be changed. |
| 522 | 2. Any city, metropolitan planning organization, or |
| 523 | special district that has an existing retirement system covering |
| 524 | the employees in the units that are to be brought under the |
| 525 | Florida Retirement System may participate only after holding a |
| 526 | referendum in which all employees in the affected units have the |
| 527 | right to participate. Only those employees electing coverage |
| 528 | under the Florida Retirement System by affirmative vote in said |
| 529 | referendum shall be eligible for coverage under this chapter, |
| 530 | and those not participating or electing not to be covered by the |
| 531 | Florida Retirement System shall remain in their present systems |
| 532 | and shall not be eligible for coverage under this chapter. After |
| 533 | the referendum is held, all future employees shall be compulsory |
| 534 | members of the Florida Retirement System. |
| 535 | 3. At the time of joining the Florida Retirement System, |
| 536 | the governing body of any city, metropolitan planning |
| 537 | organization, or special district complying with subparagraph 1. |
| 538 | may elect to provide, or not provide, benefits based on past |
| 539 | service of officers and employees as described in s. 121.081(1). |
| 540 | However, if such employer elects to provide past service |
| 541 | benefits, such benefits must be provided for all officers and |
| 542 | employees of its covered group. |
| 543 | 4. Once this election is made and approved it may not be |
| 544 | revoked, except pursuant to subparagraphs 5. and 6., and all |
| 545 | present officers and employees electing coverage under this |
| 546 | chapter and all future officers and employees shall be |
| 547 | compulsory members of the Florida Retirement System. |
| 548 | 5. Subject to the conditions set forth in subparagraph 6., |
| 549 | the governing body of a any hospital licensed under chapter 395 |
| 550 | which is governed by the board of a special district as defined |
| 551 | in s. 189.403(1) or by the board of trustees of a public health |
| 552 | trust created under s. 154.07, hereinafter referred to as |
| 553 | "hospital district," and which participates in the system, may |
| 554 | elect to cease participation in the system with regard to future |
| 555 | employees in accordance with the following procedure: |
| 556 | a. No more than 30 days and at least 7 days before |
| 557 | adopting a resolution to partially withdraw from the Florida |
| 558 | Retirement System and establish an alternative retirement plan |
| 559 | for future employees, a public hearing must be held on the |
| 560 | proposed withdrawal and proposed alternative plan. |
| 561 | b. From 7 to 15 days before such hearing, notice of intent |
| 562 | to withdraw, specifying the time and place of the hearing, must |
| 563 | be provided in writing to employees of the hospital district |
| 564 | proposing partial withdrawal and must be published in a |
| 565 | newspaper of general circulation in the area affected, as |
| 566 | provided by ss. 50.011-50.031. Proof of publication of such |
| 567 | notice shall be submitted to the Department of Management |
| 568 | Services. |
| 569 | c. The governing body of a any hospital district seeking |
| 570 | to partially withdraw from the system must, before such hearing, |
| 571 | have an actuarial report prepared and certified by an enrolled |
| 572 | actuary, as defined in s. 112.625(3), illustrating the cost to |
| 573 | the hospital district of providing, through the retirement plan |
| 574 | that the hospital district is to adopt, benefits for new |
| 575 | employees comparable to those provided under the Florida |
| 576 | Retirement System. |
| 577 | d. Upon meeting all applicable requirements of this |
| 578 | subparagraph, and subject to the conditions set forth in |
| 579 | subparagraph 6., partial withdrawal from the system and adoption |
| 580 | of the alternative retirement plan may be accomplished by |
| 581 | resolution duly adopted by the hospital district board. The |
| 582 | hospital district board must provide written notice of such |
| 583 | withdrawal to the division by mailing a copy of the resolution |
| 584 | to the division, postmarked by no later than December 15, 1995. |
| 585 | The withdrawal shall take effect January 1, 1996. |
| 586 | 6. Following the adoption of a resolution under sub- |
| 587 | subparagraph 5.d., all employees of the withdrawing hospital |
| 588 | district who were participants in the Florida Retirement System |
| 589 | before prior to January 1, 1996, shall remain as participants in |
| 590 | the system for as long as they are employees of the hospital |
| 591 | district, and all rights, duties, and obligations between the |
| 592 | hospital district, the system, and the employees shall remain in |
| 593 | full force and effect. Any employee who is hired or appointed on |
| 594 | or after January 1, 1996, may not participate in the Florida |
| 595 | Retirement System, and the withdrawing hospital district shall |
| 596 | have no obligation to the system with respect to such employees. |
| 597 | (c) Employees of public community colleges or charter |
| 598 | technical career centers sponsored by public community colleges, |
| 599 | designated in s. 1000.21(3), who are members of the Regular |
| 600 | Class of the Florida Retirement System and who comply with the |
| 601 | criteria set forth in this paragraph and s. 1012.875 may, in |
| 602 | lieu of participating in the Florida Retirement System, elect to |
| 603 | withdraw from the system altogether and participate in the State |
| 604 | Community College System Optional Retirement Program provided by |
| 605 | the employing agency under s. 1012.875. |
| 606 | 1. Through June 30, 2001, the cost to the employer for |
| 607 | benefits under the optional retirement program such annuity |
| 608 | equals the normal cost portion of the employer retirement |
| 609 | contribution which would be required if the employee were a |
| 610 | member of the pension plan's Regular Class defined benefit |
| 611 | program, plus the portion of the contribution rate required by |
| 612 | s. 112.363(8) which would otherwise be assigned to the Retiree |
| 613 | Health Insurance Subsidy Trust Fund. Effective July 1, 2001, |
| 614 | each employer shall contribute on behalf of each participant in |
| 615 | the optional program an amount equal to 10.43 percent of the |
| 616 | participant's gross monthly compensation. The employer shall |
| 617 | deduct an amount for the administration of the program. The |
| 618 | employer shall contribute an additional amount to the Florida |
| 619 | Retirement System Trust Fund equal to the unfunded actuarial |
| 620 | accrued liability portion of the Regular Class contribution |
| 621 | rate. |
| 622 | 2. The decision to participate in the an optional |
| 623 | retirement program is irrevocable as long as the employee holds |
| 624 | a position eligible for participation, except as provided in |
| 625 | subparagraph 3. Any service creditable under the Florida |
| 626 | Retirement System is retained after the member withdraws from |
| 627 | the system; however, additional service credit in the system may |
| 628 | not be earned while a member of the optional retirement program. |
| 629 | 3. An employee who has elected to participate in the |
| 630 | optional retirement program shall have one opportunity, at the |
| 631 | employee's discretion, to transfer from the optional retirement |
| 632 | program to the pension plan defined benefit program of the |
| 633 | Florida Retirement System or to the investment plan established |
| 634 | under part II of this chapter Public Employee Optional |
| 635 | Retirement Program, subject to the terms of the applicable |
| 636 | optional retirement program contracts. |
| 637 | a. If the employee chooses to move to the investment plan |
| 638 | Public Employee Optional Retirement Program, any contributions, |
| 639 | interest, and earnings creditable to the employee under the |
| 640 | State Community College System optional retirement program are |
| 641 | retained by the employee in the State Community College System |
| 642 | optional retirement program, and the applicable provisions of s. |
| 643 | 121.4501(4) govern the election. |
| 644 | b. If the employee chooses to move to the pension plan |
| 645 | defined benefit program of the Florida Retirement System, the |
| 646 | employee shall receive service credit equal to his or her years |
| 647 | of service under the State Community College System optional |
| 648 | retirement program. |
| 649 | (I) The cost for such credit is the amount representing |
| 650 | the present value of the employee's accumulated benefit |
| 651 | obligation for the affected period of service. The cost shall be |
| 652 | calculated as if the benefit commencement occurs on the first |
| 653 | date the employee becomes eligible for unreduced benefits, using |
| 654 | the discount rate and other relevant actuarial assumptions that |
| 655 | were used to value the Florida Retirement System pension defined |
| 656 | benefit plan liabilities in the most recent actuarial valuation. |
| 657 | The calculation must include any service already maintained |
| 658 | under the pension defined benefit plan in addition to the years |
| 659 | under the State Community College System optional retirement |
| 660 | program. The present value of any service already maintained |
| 661 | must be applied as a credit to total cost resulting from the |
| 662 | calculation. The division shall ensure that the transfer sum is |
| 663 | prepared using a formula and methodology certified by an |
| 664 | enrolled actuary. |
| 665 | (II) The employee must transfer from his or her State |
| 666 | Community College System optional retirement program account and |
| 667 | from other employee moneys as necessary, a sum representing the |
| 668 | present value of the employee's accumulated benefit obligation |
| 669 | immediately following the time of such movement, determined |
| 670 | assuming that attained service equals the sum of service in the |
| 671 | pension plan defined benefit program and service in the State |
| 672 | Community College System optional retirement program. |
| 673 | 4. Participation in the optional retirement program is |
| 674 | limited to employees who satisfy the following eligibility |
| 675 | criteria: |
| 676 | a. The employee is must be otherwise eligible for |
| 677 | membership or renewed membership in the Regular Class of the |
| 678 | Florida Retirement System, as provided in s. 121.021(11) and |
| 679 | (12) or s. 121.122. |
| 680 | b. The employee is must be employed in a full-time |
| 681 | position classified in the Accounting Manual for Florida's |
| 682 | Public Community Colleges as: |
| 683 | (I) Instructional; or |
| 684 | (II) Executive Management, Instructional Management, or |
| 685 | Institutional Management and the, if a community college |
| 686 | determines that recruiting to fill a vacancy in the position is |
| 687 | to be conducted in the national or regional market, and the |
| 688 | duties and responsibilities of the position include the |
| 689 | formulation, interpretation, or implementation of policies, or |
| 690 | the performance of functions that are unique or specialized |
| 691 | within higher education and that frequently support the mission |
| 692 | of the community college. |
| 693 | c. The employee is must be employed in a position not |
| 694 | included in the Senior Management Service Class of the Florida |
| 695 | Retirement System, as described in s. 121.055. |
| 696 | 5. Participants in the program are subject to the same |
| 697 | reemployment limitations, renewed membership provisions, and |
| 698 | forfeiture provisions as are applicable to regular members of |
| 699 | the Florida Retirement System under ss. 121.091(9), 121.122, and |
| 700 | 121.091(5), respectively. A participant who receives a program |
| 701 | distribution funded by employer contributions shall be deemed to |
| 702 | be retired from a state-administered retirement system if the |
| 703 | participant is subsequently employed with an employer that |
| 704 | participates in the Florida Retirement System. |
| 705 | 6. Eligible community college employees are compulsory |
| 706 | members of the Florida Retirement System until, pursuant to s. |
| 707 | 1012.875, a written election to withdraw from the system and |
| 708 | participate in the State Community College System optional |
| 709 | retirement program is filed with the program administrator and |
| 710 | received by the division. |
| 711 | a. A community college employee whose program eligibility |
| 712 | results from initial employment shall must be enrolled in the |
| 713 | State Community College System optional retirement program |
| 714 | retroactive to the first day of eligible employment. The |
| 715 | employer retirement contributions paid through the month of the |
| 716 | employee plan change shall be transferred to the community |
| 717 | college to the employee's optional program account, and, |
| 718 | effective the first day of the next month, the employer shall |
| 719 | pay the applicable contributions based upon subparagraph 1. |
| 720 | b. A community college employee whose program eligibility |
| 721 | is due to the subsequent designation of the employee's position |
| 722 | as one of those specified in subparagraph 4., or due to the |
| 723 | employee's appointment, promotion, transfer, or reclassification |
| 724 | to a position specified in subparagraph 4., must be enrolled in |
| 725 | the program on the first day of the first full calendar month |
| 726 | that such change in status becomes effective. The employer |
| 727 | retirement contributions paid from the effective date through |
| 728 | the month of the employee plan change must be transferred to the |
| 729 | community college to the employee's optional program account, |
| 730 | and, effective the first day of the next month, the employer |
| 731 | shall pay the applicable contributions based upon subparagraph |
| 732 | 1. |
| 733 | 7. Effective July 1, 2003, through December 31, 2008, any |
| 734 | participant in of the State Community College System optional |
| 735 | retirement program who has service credit in the pension defined |
| 736 | benefit plan of the Florida Retirement System for the period |
| 737 | between his or her first eligibility to transfer from the |
| 738 | pension defined benefit plan to the optional retirement program |
| 739 | and the actual date of transfer may, during employment, transfer |
| 740 | to the optional retirement program a sum representing the |
| 741 | present value of the accumulated benefit obligation under the |
| 742 | defined benefit retirement program for the period of service |
| 743 | credit. Upon transfer, all service credit previously earned |
| 744 | under the pension plan defined benefit program of the Florida |
| 745 | Retirement System during this period is nullified for purposes |
| 746 | of entitlement to a future benefit under the pension plan |
| 747 | defined benefit program of the Florida Retirement System. |
| 748 | (3) SOCIAL SECURITY COVERAGE.-Social security coverage |
| 749 | shall be provided for all officers and employees who become |
| 750 | members under the provisions of subsection (1) or subsection |
| 751 | (2). Any modification of the present agreement with the Social |
| 752 | Security Administration, or referendum required under the Social |
| 753 | Security Act, for the purpose of providing social security |
| 754 | coverage for any member shall be requested by the state agency |
| 755 | in compliance with the applicable provisions of the Social |
| 756 | Security Act governing such coverage. However, retroactive |
| 757 | social security coverage for service prior to December 1, 1970, |
| 758 | with the employer shall not be provided for a any member who was |
| 759 | not covered under the agreement as of November 30, 1970. The |
| 760 | employer-paid employee contributions specified in s. 121.71(2) |
| 761 | are subject to taxes imposed under the Federal Insurance |
| 762 | Contributions Act, 26 U.S.C. ss. 3101-3128. |
| 763 | Section 6. Section 121.0515, Florida Statutes, is amended |
| 764 | to read: |
| 765 | 121.0515 Special Risk Class membership.- |
| 766 | (1) ESTABLISHMENT OF CLASS LEGISLATIVE INTENT.-There is |
| 767 | established a separate In creating the Special Risk class of |
| 768 | membership within the Florida Retirement System, to be known as |
| 769 | the "Special Risk Class," it is the intent and purpose of the |
| 770 | Legislature to recognize that persons employed in certain |
| 771 | categories of law enforcement, firefighting, criminal detention, |
| 772 | and emergency medical care positions are required as one of the |
| 773 | essential functions of their positions to perform work that is |
| 774 | physically demanding or arduous, or work that requires |
| 775 | extraordinary agility and mental acuity, and that such persons, |
| 776 | because of diminishing physical and mental faculties, may find |
| 777 | that they are not able, without risk to the health and safety of |
| 778 | themselves, the public, or their coworkers, to continue |
| 779 | performing such duties and thus enjoy the full career and |
| 780 | retirement benefits enjoyed by persons employed in other |
| 781 | membership classes positions and that, if they find it |
| 782 | necessary, due to the physical and mental limitations of their |
| 783 | age, to retire at an earlier age and usually with less service, |
| 784 | they will suffer an economic deprivation therefrom. To address |
| 785 | Therefore, as a means of recognizing the peculiar and special |
| 786 | problems of this class of employees, it is the intent and |
| 787 | purpose of the Legislature to establish a class of retirement |
| 788 | membership is established that awards more retirement credit per |
| 789 | year of service than that awarded to other employees; however, |
| 790 | nothing contained herein shall require ineligibility for Special |
| 791 | Risk Class membership upon reaching age 55. |
| 792 | (2) MEMBERSHIP.- |
| 793 | (a) Until October 1, 1978, "special risk member" means any |
| 794 | officer or employee whose application is approved by the |
| 795 | administrator and who receives salary payments for work |
| 796 | performed as a peace officer; law enforcement officer; police |
| 797 | officer; highway patrol officer; custodial employee at a |
| 798 | correctional or detention facility; correctional agency employee |
| 799 | whose duties and responsibilities involve direct contact with |
| 800 | inmates, but excluding secretarial and clerical employees; |
| 801 | firefighter; or an employee in any other job in the field of law |
| 802 | enforcement or fire protection if the duties of such person are |
| 803 | certified as hazardous by his or her employer. |
| 804 | (b) Effective October 1, 1978, through September 30, 1999, |
| 805 | "special risk member" means a member of the Florida Retirement |
| 806 | System who is designated as a special risk member by the |
| 807 | division in accordance with this section. Such member must be |
| 808 | employed as a law enforcement officer, a firefighter, or a |
| 809 | correctional officer and must meet certain other special |
| 810 | criteria as set forth in this section. |
| 811 | (c) Effective October 1, 1999, "special risk member" means |
| 812 | a member of the Florida Retirement System who is designated as a |
| 813 | special risk member by the division in accordance with this |
| 814 | section. Such member must be employed as a law enforcement |
| 815 | officer, a firefighter, a correctional officer, an emergency |
| 816 | medical technician, or a paramedic and must meet certain other |
| 817 | special criteria as set forth in this section. |
| 818 | (d)1. Effective January 1, 2001, "special risk member" |
| 819 | includes any member who is employed as a community-based |
| 820 | correctional probation officer and meets the special criteria |
| 821 | set forth in paragraph (3)(e). |
| 822 | 2. Effective January 1, 2001, "special risk member" |
| 823 | includes any professional health care bargaining unit or non- |
| 824 | unit member who is employed by the Department of Corrections or |
| 825 | the Department of Children and Family Services and meets the |
| 826 | special criteria set forth in paragraph (3)(f). |
| 827 | (e) Effective July 1, 2001, the term "special risk member" |
| 828 | includes any member who is employed as a youth custody officer |
| 829 | by the Department of Juvenile Justice and meets the special |
| 830 | criteria set forth in paragraph (3)(g). |
| 831 | (f) Effective August 1, 2008, "special risk member" |
| 832 | includes any member who meets the special criteria for continued |
| 833 | membership set forth in paragraph (3)(k). |
| 834 | (3)(2) CRITERIA.-A member, to be designated as a special |
| 835 | risk member, must meet the following criteria: |
| 836 | (a) Effective October 1, 1978, the member must be employed |
| 837 | as a law enforcement officer and be certified, or required to be |
| 838 | certified, in compliance with s. 943.1395; however, sheriffs and |
| 839 | elected police chiefs shall be excluded from meeting the |
| 840 | certification requirements of this paragraph. In addition, the |
| 841 | member's duties and responsibilities must include the pursuit, |
| 842 | apprehension, and arrest of law violators or suspected law |
| 843 | violators; or as of July 1, 1982, the member must be an active |
| 844 | member of a bomb disposal unit whose primary responsibility is |
| 845 | the location, handling, and disposal of explosive devices; or |
| 846 | the member must be the supervisor or command officer of a member |
| 847 | or members who have such responsibilities; provided, however, |
| 848 | administrative support personnel, including, but not limited to, |
| 849 | those whose primary duties and responsibilities are in |
| 850 | accounting, purchasing, legal, and personnel, shall not be |
| 851 | included; |
| 852 | (b) Effective October 1, 1978, the member must be employed |
| 853 | as a firefighter and be certified, or required to be certified, |
| 854 | in compliance with s. 633.35 and be employed solely within the |
| 855 | fire department of a local government employer or an agency of |
| 856 | state government with firefighting responsibilities. In |
| 857 | addition, the member's duties and responsibilities must include |
| 858 | on-the-scene fighting of fires; as of October 1, 2001, fire |
| 859 | prevention, or firefighter training; as of October 1, 2001, |
| 860 | direct supervision of firefighting units, fire prevention, or |
| 861 | firefighter training; or as of July 1, 2001, aerial firefighting |
| 862 | surveillance performed by fixed-wing aircraft pilots employed by |
| 863 | the Division of Forestry of the Department of Agriculture and |
| 864 | Consumer Services; or the member must be the supervisor or |
| 865 | command officer of a member or members who have such |
| 866 | responsibilities; provided, however, administrative support |
| 867 | personnel, including, but not limited to, those whose primary |
| 868 | duties and responsibilities are in accounting, purchasing, |
| 869 | legal, and personnel, shall not be included and further provided |
| 870 | that all periods of creditable service in fire prevention or |
| 871 | firefighter training, or as the supervisor or command officer of |
| 872 | a member or members who have such responsibilities, and for |
| 873 | which the employer paid the special risk contribution rate, |
| 874 | shall be included; |
| 875 | (c) Effective October 1, 1978, the member must be employed |
| 876 | as a correctional officer and be certified, or required to be |
| 877 | certified, in compliance with s. 943.1395. In addition, the |
| 878 | member's primary duties and responsibilities must be the |
| 879 | custody, and physical restraint when necessary, of prisoners or |
| 880 | inmates within a prison, jail, or other criminal detention |
| 881 | facility, or while on work detail outside the facility, or while |
| 882 | being transported; or as of July 1, 1984, the member must be the |
| 883 | supervisor or command officer of a member or members who have |
| 884 | such responsibilities; provided, however, administrative support |
| 885 | personnel, including, but not limited to, those whose primary |
| 886 | duties and responsibilities are in accounting, purchasing, |
| 887 | legal, and personnel, shall not be included; however, wardens |
| 888 | and assistant wardens, as defined by rule, shall participate in |
| 889 | the Special Risk Class; |
| 890 | (d) Effective October 1, 1999, the member must be employed |
| 891 | by a licensed Advance Life Support (ALS) or Basic Life Support |
| 892 | (BLS) employer as an emergency medical technician or a paramedic |
| 893 | and be certified in compliance with s. 401.27. In addition, the |
| 894 | member's primary duties and responsibilities must include on- |
| 895 | the-scene emergency medical care or as of October 1, 2001, |
| 896 | direct supervision of emergency medical technicians or |
| 897 | paramedics, or the member must be the supervisor or command |
| 898 | officer of one or more members who have such responsibility. |
| 899 | However, administrative support personnel, including, but not |
| 900 | limited to, those whose primary responsibilities are in |
| 901 | accounting, purchasing, legal, and personnel, shall not be |
| 902 | included; |
| 903 | (e) Effective January 1, 2001, the member must be employed |
| 904 | as a community-based correctional probation officer and be |
| 905 | certified, or required to be certified, in compliance with s. |
| 906 | 943.1395. In addition, the member's primary duties and |
| 907 | responsibilities must be the supervised custody, surveillance, |
| 908 | control, investigation, and counseling of assigned inmates, |
| 909 | probationers, parolees, or community controllees within the |
| 910 | community; or the member must be the supervisor of a member or |
| 911 | members who have such responsibilities. Administrative support |
| 912 | personnel, including, but not limited to, those whose primary |
| 913 | duties and responsibilities are in accounting, purchasing, legal |
| 914 | services, and personnel management, shall not be included; |
| 915 | however, probation and parole circuit and deputy circuit |
| 916 | administrators shall participate in the Special Risk Class; |
| 917 | (f) Effective January 1, 2001, the member must be employed |
| 918 | in one of the following classes and must spend at least 75 |
| 919 | percent of his or her time performing duties which involve |
| 920 | contact with patients or inmates in a correctional or forensic |
| 921 | facility or institution: |
| 922 | 1. Dietitian (class codes 5203 and 5204); |
| 923 | 2. Public health nutrition consultant (class code 5224); |
| 924 | 3. Psychological specialist (class codes 5230 and 5231); |
| 925 | 4. Psychologist (class code 5234); |
| 926 | 5. Senior psychologist (class codes 5237 and 5238); |
| 927 | 6. Regional mental health consultant (class code 5240); |
| 928 | 7. Psychological Services Director-DCF (class code 5242); |
| 929 | 8. Pharmacist (class codes 5245 and 5246); |
| 930 | 9. Senior pharmacist (class codes 5248 and 5249); |
| 931 | 10. Dentist (class code 5266); |
| 932 | 11. Senior dentist (class code 5269); |
| 933 | 12. Registered nurse (class codes 5290 and 5291); |
| 934 | 13. Senior registered nurse (class codes 5292 and 5293); |
| 935 | 14. Registered nurse specialist (class codes 5294 and |
| 936 | 5295); |
| 937 | 15. Clinical associate (class codes 5298 and 5299); |
| 938 | 16. Advanced registered nurse practitioner (class codes |
| 939 | 5297 and 5300); |
| 940 | 17. Advanced registered nurse practitioner specialist |
| 941 | (class codes 5304 and 5305); |
| 942 | 18. Registered nurse supervisor (class codes 5306 and |
| 943 | 5307); |
| 944 | 19. Senior registered nurse supervisor (class codes 5308 |
| 945 | and 5309); |
| 946 | 20. Registered nursing consultant (class codes 5312 and |
| 947 | 5313); |
| 948 | 21. Quality management program supervisor (class code |
| 949 | 5314); |
| 950 | 22. Executive nursing director (class codes 5320 and |
| 951 | 5321); |
| 952 | 23. Speech and hearing therapist (class code 5406); or |
| 953 | 24. Pharmacy manager (class code 5251); |
| 954 | (g) Effective July 1, 2001, the member must be employed as |
| 955 | a youth custody officer and be certified, or required to be |
| 956 | certified, in compliance with s. 943.1395. In addition, the |
| 957 | member's primary duties and responsibilities must be the |
| 958 | supervised custody, surveillance, control, investigation, |
| 959 | apprehension, arrest, and counseling of assigned juveniles |
| 960 | within the community; |
| 961 | (h) Effective October 1, 2005, through June 30, 2008, the |
| 962 | member must be employed by a law enforcement agency or medical |
| 963 | examiner's office in a forensic discipline recognized by the |
| 964 | International Association for Identification and must qualify |
| 965 | for active membership in the International Association for |
| 966 | Identification. The member's primary duties and responsibilities |
| 967 | must include the collection, examination, preservation, |
| 968 | documentation, preparation, or analysis of physical evidence or |
| 969 | testimony, or both, or the member must be the direct supervisor, |
| 970 | quality management supervisor, or command officer of one or more |
| 971 | individuals with such responsibility. Administrative support |
| 972 | personnel, including, but not limited to, those whose primary |
| 973 | responsibilities are clerical or in accounting, purchasing, |
| 974 | legal, and personnel, shall not be included; |
| 975 | (i) Effective July 1, 2008, the member must be employed by |
| 976 | the Department of Law Enforcement in the crime laboratory or by |
| 977 | the Division of State Fire Marshal in the forensic laboratory in |
| 978 | one of the following classes: |
| 979 | 1. Forensic technologist (class code 8459); |
| 980 | 2. Crime laboratory technician (class code 8461); |
| 981 | 3. Crime laboratory analyst (class code 8463); |
| 982 | 4. Senior crime laboratory analyst (class code 8464); |
| 983 | 5. Crime laboratory analyst supervisor (class code 8466); |
| 984 | 6. Forensic chief (class code 9602); or |
| 985 | 7. Forensic services quality manager (class code 9603); |
| 986 | (j) Effective July 1, 2008, the member must be employed by |
| 987 | a local government law enforcement agency or medical examiner's |
| 988 | office and must spend at least 65 percent of his or her time |
| 989 | performing duties that involve the collection, examination, |
| 990 | preservation, documentation, preparation, or analysis of human |
| 991 | tissues or fluids or physical evidence having potential |
| 992 | biological, chemical, or radiological hazard or contamination, |
| 993 | or use chemicals, processes, or materials that may have |
| 994 | carcinogenic or health-damaging properties in the analysis of |
| 995 | such evidence, or the member must be the direct supervisor of |
| 996 | one or more individuals having such responsibility. If a special |
| 997 | risk member changes to another position within the same agency, |
| 998 | he or she must submit a complete application as provided in |
| 999 | paragraph (4)(3)(a); or |
| 1000 | (k) The member must have already qualified for and be |
| 1001 | actively participating in special risk membership under |
| 1002 | paragraph (a), paragraph (b), or paragraph (c), must have |
| 1003 | suffered a qualifying injury as defined in this paragraph, must |
| 1004 | not be receiving disability retirement benefits as provided in |
| 1005 | s. 121.091(4), and must satisfy the requirements of this |
| 1006 | paragraph. |
| 1007 | 1. The ability to qualify for the class of membership |
| 1008 | defined in paragraph (2)(f) s. 121.021(15)(f) shall occur when |
| 1009 | two licensed medical physicians, one of whom is a primary |
| 1010 | treating physician of the member, certify the existence of the |
| 1011 | physical injury and medical condition that constitute a |
| 1012 | qualifying injury as defined in this paragraph and that the |
| 1013 | member has reached maximum medical improvement after August 1, |
| 1014 | 2008. The certifications from the licensed medical physicians |
| 1015 | must include, at a minimum, that the injury to the special risk |
| 1016 | member has resulted in a physical loss, or loss of use, of at |
| 1017 | least two of the following: left arm, right arm, left leg, or |
| 1018 | right leg; and: |
| 1019 | a. That this physical loss or loss of use is total and |
| 1020 | permanent, except in the event that the loss of use is due to a |
| 1021 | physical injury to the member's brain, in which event the loss |
| 1022 | of use is permanent with at least 75-percent loss of motor |
| 1023 | function with respect to each arm or leg affected. |
| 1024 | b. That this physical loss or loss of use renders the |
| 1025 | member physically unable to perform the essential job functions |
| 1026 | of his or her special risk position. |
| 1027 | c. That, notwithstanding this physical loss or loss of |
| 1028 | use, the individual is able to perform the essential job |
| 1029 | functions required by the member's new position, as provided in |
| 1030 | subparagraph 3. |
| 1031 | d. That use of artificial limbs is either not possible or |
| 1032 | does not alter the member's ability to perform the essential job |
| 1033 | functions of the member's position. |
| 1034 | e. That the physical loss or loss of use is a direct |
| 1035 | result of a physical injury and not a result of any mental, |
| 1036 | psychological, or emotional injury. |
| 1037 | 2. For the purposes of this paragraph, "qualifying injury" |
| 1038 | means an injury sustained in the line of duty, as certified by |
| 1039 | the member's employing agency, by a special risk member that |
| 1040 | does not result in total and permanent disability as defined in |
| 1041 | s. 121.091(4)(b). An injury is a qualifying injury when the |
| 1042 | injury is a physical injury to the member's physical body |
| 1043 | resulting in a physical loss, or loss of use, of at least two of |
| 1044 | the following: left arm, right arm, left leg, or right leg. |
| 1045 | Notwithstanding anything in this section to the contrary, an |
| 1046 | injury that would otherwise qualify as a qualifying injury shall |
| 1047 | not be considered a qualifying injury if and when the member |
| 1048 | ceases employment with the employer for whom he or she was |
| 1049 | providing special risk services on the date the injury occurred. |
| 1050 | 3. The new position, as described in sub-subparagraph |
| 1051 | 1.c., that is required for qualification as a special risk |
| 1052 | member under this paragraph is not required to be a position |
| 1053 | with essential job functions that entitle an individual to |
| 1054 | special risk membership. Whether a new position as described in |
| 1055 | sub-subparagraph 1.c. exists and is available to the special |
| 1056 | risk member is a decision to be made solely by the employer in |
| 1057 | accordance with its hiring practices and applicable law. |
| 1058 | 4. This paragraph does not grant or create additional |
| 1059 | rights for any individual to continued employment or to be hired |
| 1060 | or rehired by his or her employer that are not already provided |
| 1061 | within the Florida Statutes, the State Constitution, the |
| 1062 | Americans with Disabilities Act, if applicable, or any other |
| 1063 | applicable state or federal law. |
| 1064 | (4)(3) PROCEDURE FOR DESIGNATING.- |
| 1065 | (a)1. Any Regular Class member of the Florida Retirement |
| 1066 | System employed by a county, city, or special district who feels |
| 1067 | that his or her position he or she meets the criteria set forth |
| 1068 | in this section for membership in the Special Risk Class may |
| 1069 | request that his or her employer submit an application to the |
| 1070 | department requesting that the department designate him or her |
| 1071 | as a Special Risk Class member. Such Regular Class member shall |
| 1072 | complete the appropriate portions of an Application for Special |
| 1073 | Risk Membership provided in Form FRS-400 or Form FRS-405. If the |
| 1074 | employer agrees that the member meets the requirements for |
| 1075 | Special Risk Class membership, the employer shall certify and |
| 1076 | submit an application as set forth in this section and submit a |
| 1077 | copy of the current official job description of the member's |
| 1078 | duties showing the percentage of time spent performing each duty |
| 1079 | and a copy of a personnel action form showing the effective date |
| 1080 | of membership in that position to the department on in behalf of |
| 1081 | the employee containing a certification that the member meets |
| 1082 | the criteria for special risk membership set forth in this |
| 1083 | section and such other supporting documentation as may be |
| 1084 | required by administrative rule. The department shall, within 90 |
| 1085 | days, either designate or refuse to designate the member as a |
| 1086 | special risk member. |
| 1087 | 2. Upon receipt of the completed application, proof of |
| 1088 | certification, and supporting documentation, the department |
| 1089 | shall determine if the member meets the requirements for Special |
| 1090 | Risk Class membership. If the requirements are met, the |
| 1091 | department shall approve the member for Special Risk Class |
| 1092 | membership. The employer shall certify to the department any |
| 1093 | changes to the duties and responsibilities of a Special Risk |
| 1094 | Class member. The department shall review the documentation for |
| 1095 | changes to duties and responsibilities and either continue the |
| 1096 | approval of Special Risk Class membership or reclassify the |
| 1097 | member to Regular Class membership. |
| 1098 | 3. If the employer refuses to certify the member's |
| 1099 | application for Special Risk Class membership, the employer |
| 1100 | shall notify the member of the employer's refusal to certify and |
| 1101 | the reasons for the refusal. If the employer declines to submit |
| 1102 | the member's application to the department, or if the department |
| 1103 | does not designate the member to the as a Special Risk Class, or |
| 1104 | the department removes the member from the Special Risk Class |
| 1105 | member, the member or the employer may appeal to the State |
| 1106 | Retirement Commission, as provided in s. 121.23, for designation |
| 1107 | as a Special Risk Class member. A member who receives a final |
| 1108 | affirmative ruling pursuant to such appeal for Special Risk |
| 1109 | Class membership shall have Special Risk Class membership |
| 1110 | retroactive to the date such member would have had Special Risk |
| 1111 | Class membership had such membership been approved by the |
| 1112 | employer and the department, as determined by the department, |
| 1113 | and the employer contributions shall be paid in full within 1 |
| 1114 | year after such final ruling. |
| 1115 | (b)1. Applying the criteria set forth in this section, the |
| 1116 | Department of Management Services shall specify which current |
| 1117 | and newly created classes of positions under the uniform |
| 1118 | classification plan established pursuant to chapter 110 entitle |
| 1119 | the incumbents of positions in those classes to membership in |
| 1120 | the Special Risk Class. Only employees employed in the classes |
| 1121 | so specified shall be special risk members. |
| 1122 | 2. When a class is not specified by the department as |
| 1123 | provided in subparagraph 1., the employing agency may petition |
| 1124 | the State Retirement Commission for approval in accordance with |
| 1125 | s. 121.23. |
| 1126 | (5)(4) REMOVAL OF SPECIAL RISK CLASS MEMBERSHIP.- |
| 1127 | (a) Any member who is a special risk member on October 1, |
| 1128 | 1978, and who fails to meet the criteria for special risk |
| 1129 | membership established by this section shall have his or her |
| 1130 | special risk designation removed and thereafter shall be a |
| 1131 | regular member and shall earn only regular membership credit. |
| 1132 | The department shall have the authority to review the special |
| 1133 | risk designation of members to determine whether or not those |
| 1134 | members continue to meet the criteria for special risk |
| 1135 | membership. |
| 1136 | (b) Any member who is a special risk member on July 1, |
| 1137 | 2008, and who became eligible to participate under paragraph |
| 1138 | (3)(2)(h) but fails to meet the criteria for special risk |
| 1139 | membership established by paragraph (3)(2)(i) or paragraph |
| 1140 | (3)(2)(j) shall have his or her special risk designation removed |
| 1141 | and thereafter shall be a Regular Class member and earn only |
| 1142 | Regular Class membership credit. The department may review the |
| 1143 | special risk designation of members to determine whether or not |
| 1144 | those members continue to meet the criteria for special risk |
| 1145 | membership. |
| 1146 | (c) Any member who is a Special Risk Class member and who |
| 1147 | fails to meet the criteria for the Special Risk Class shall have |
| 1148 | his or her special risk class designation removed and thereafter |
| 1149 | shall be a Regular Class member and earn only Regular Class |
| 1150 | membership service credit. The department may review the Special |
| 1151 | Risk Class designation of members to determine whether or not |
| 1152 | those members continue to meet the criteria for Special Risk |
| 1153 | Class membership. |
| 1154 | (6)(5) CREDIT FOR PAST SERVICE.-A special risk member may |
| 1155 | purchase retirement credit in the Special Risk Class based upon |
| 1156 | past service, and may upgrade retirement credit for such past |
| 1157 | service, to the extent of 2 percent of the member's average |
| 1158 | monthly compensation as specified in s. 121.091(1)(a) for such |
| 1159 | service as follows: |
| 1160 | (a) The member may purchase special risk credit for past |
| 1161 | service with a city or special district which has elected to |
| 1162 | join the Florida Retirement System, or with a participating |
| 1163 | agency to which a member's governmental unit was transferred, |
| 1164 | merged, or consolidated as provided in s. 121.081(1)(f), if the |
| 1165 | member was employed with the city or special district at the |
| 1166 | time it commenced participating in the Florida Retirement System |
| 1167 | or with the governmental unit at the time of its transfer, |
| 1168 | merger, or consolidation with the participating agency. The |
| 1169 | service must satisfy the criteria set forth in subsection (3) |
| 1170 | (2) for special risk membership as a law enforcement officer, |
| 1171 | firefighter, or correctional officer; however, no certificate or |
| 1172 | waiver of certificate of compliance with s. 943.1395 or s. |
| 1173 | 633.35 shall be required for such service. |
| 1174 | (b) Contributions for upgrading the additional special |
| 1175 | risk credit pursuant to this subsection shall be equal to the |
| 1176 | difference in the employer and, if applicable, employee |
| 1177 | contributions paid and the special risk percentage rate of gross |
| 1178 | salary in effect at the time of purchase for the period being |
| 1179 | claimed, plus interest thereon at the rate of 4 percent a year |
| 1180 | compounded annually from the date of such service until July 1, |
| 1181 | 1975, and 6.5 percent a year thereafter until the date of |
| 1182 | payment. This past service may be purchased by the member or by |
| 1183 | the employer on behalf of the member. |
| 1184 | (7)(6) CREDIT FOR PRIOR SERVICE.-A special risk member who |
| 1185 | has creditable service with an employer under chapter 122 or |
| 1186 | chapter 321, or was employed as a correctional counselor with |
| 1187 | the Department of Corrections between December 1, 1970, and |
| 1188 | September 30, 1979, in a position which satisfies the criteria |
| 1189 | provided for in subsection (3) (2) for special risk membership |
| 1190 | except the requirement for a certificate or waiver of |
| 1191 | certificate, shall have those years of service counted towards |
| 1192 | the attainment of the normal retirement date as a special risk |
| 1193 | member under this chapter. The percentage value of each such |
| 1194 | year of creditable service under chapter 122, chapter 321, or as |
| 1195 | a correctional counselor shall not change as a result of the |
| 1196 | application of this subsection. A special risk member who has |
| 1197 | taken a refund of contributions for such creditable service |
| 1198 | under chapter 122 or chapter 321 and has reclaimed it as prior |
| 1199 | service credit under this chapter shall be permitted to have |
| 1200 | such creditable service counted towards the attainment of the |
| 1201 | normal retirement date for the Special Risk Class of membership |
| 1202 | under this chapter. |
| 1203 | (8)(7) SPECIAL RISK ADMINISTRATIVE SUPPORT CLASS RETENTION |
| 1204 | OF SPECIAL RISK NORMAL RETIREMENT DATE.- |
| 1205 | (a) A special risk member who is moved or reassigned to a |
| 1206 | nonspecial risk law enforcement, firefighting, correctional, or |
| 1207 | emergency medical care administrative support position with the |
| 1208 | same agency, or who is subsequently employed in such a position |
| 1209 | with any law enforcement, firefighting, correctional, or |
| 1210 | emergency medical care agency under the Florida Retirement |
| 1211 | System, shall participate in the Special Risk Administrative |
| 1212 | Support Class and shall earn credit for such service at the same |
| 1213 | percentage rate as that earned by a regular member. |
| 1214 | Notwithstanding the provisions of subsection (5) (4), service in |
| 1215 | such an administrative support position shall, for purposes of |
| 1216 | s. 121.091, apply toward satisfaction of the special risk normal |
| 1217 | retirement date, as defined in s. 121.021(29)(b), provided that, |
| 1218 | while in such position, the member remains certified as a law |
| 1219 | enforcement officer, firefighter, correctional officer, |
| 1220 | emergency medical technician, or paramedic; remains subject to |
| 1221 | reassignment at any time to a position qualifying for special |
| 1222 | risk membership; and completes an aggregate of 6 or more years |
| 1223 | of service as a designated special risk member prior to |
| 1224 | retirement. |
| 1225 | (b) Upon application by a member, the provisions of this |
| 1226 | subsection shall apply, with respect to such member, |
| 1227 | retroactively to October 1, 1978, provided that the member was |
| 1228 | removed from the Special Risk Class effective October 1, 1978, |
| 1229 | due to a change in special risk criteria as a result of the |
| 1230 | enactment of chapter 78-308, Laws of Florida, or was reassigned |
| 1231 | or employed for training or career development or to fill a |
| 1232 | critical agency need. |
| 1233 | (c) The department shall adopt such rules as are required |
| 1234 | to administer this subsection. |
| 1235 | (d) Notwithstanding any provision of this subsection to |
| 1236 | the contrary, this subsection does not apply to any special risk |
| 1237 | member who qualifies for continued membership pursuant to the |
| 1238 | provisions of paragraph (3)(2)(k). |
| 1239 | (9)(8) RESTORATION OF SPECIAL RISK CREDIT FOR SPECIFIED |
| 1240 | PERIOD OF EMPLOYMENT.-A special risk member who was removed from |
| 1241 | the Special Risk Class effective October 1978, for the sole |
| 1242 | reason that he or she did not possess the required certificate |
| 1243 | or temporary waiver of certificate, and who obtained |
| 1244 | certification and was approved for special risk membership on or |
| 1245 | before June 30, 1982, shall be permitted to have special risk |
| 1246 | credit restored for that period upon: |
| 1247 | (a) Certification by his or her employer that all |
| 1248 | requirements for special risk membership except the requirement |
| 1249 | for certification or temporary waiver of certification were met; |
| 1250 | and |
| 1251 | (b) Payment of contributions equal to the difference in |
| 1252 | the contributions that were paid during the period and the |
| 1253 | contributions required for special risk members during that |
| 1254 | period, plus 6.5 percent interest thereon, compounded each June |
| 1255 | 30 from date of service until date of payment. |
| 1256 |
|
| 1257 | This credit may be purchased by the member or by the employer on |
| 1258 | behalf of the member. |
| 1259 | (10)(9) CREDIT FOR UPGRADED SERVICE.- |
| 1260 | (a) Any member of the Special Risk Class who has earned |
| 1261 | creditable service through September 30, 1999, in another |
| 1262 | membership class of the Florida Retirement System as an |
| 1263 | emergency medical technician or paramedic, which service is |
| 1264 | within the purview of the Special Risk Class, may purchase |
| 1265 | additional retirement credit to upgrade such service to Special |
| 1266 | Risk Class service, to the extent of the percentages of the |
| 1267 | member's average final compensation provided in s. |
| 1268 | 121.091(1)(a)2. Contributions for upgrading such service to |
| 1269 | Special Risk Class credit under this subsection shall be equal |
| 1270 | to the difference in the contributions paid and the Special Risk |
| 1271 | Class contribution rate as a percentage of gross salary in |
| 1272 | effect for the period being claimed, plus interest thereon at |
| 1273 | the rate of 6.5 percent a year, compounded annually until the |
| 1274 | date of payment. This service credit may be purchased by the |
| 1275 | employer on behalf of the member. |
| 1276 | (b) Any member of the Special Risk Class who has earned |
| 1277 | creditable service through September 30, 2001, in another |
| 1278 | membership class of the Florida Retirement System whose |
| 1279 | responsibilities included fire prevention or firefighter |
| 1280 | training, which service is within the purview of the Special |
| 1281 | Risk Class, may purchase additional retirement credit to upgrade |
| 1282 | such service to Special Risk Class service, to the extent of the |
| 1283 | percentages of the member's average final compensation provided |
| 1284 | in s. 121.091(1)(a)2. Contributions for upgrading such service |
| 1285 | to Special Risk Class credit under this subsection shall be |
| 1286 | equal to the difference in the contributions paid and the |
| 1287 | Special Risk Class contribution rate as a percentage of gross |
| 1288 | salary in effect for the period being claimed, plus interest |
| 1289 | thereon at the rate of 6.5 percent a year, compounded annually |
| 1290 | until the date of payment. This service credit may be purchased |
| 1291 | by the employer on behalf of the member. |
| 1292 | (c) Any member of the Special Risk Class who has earned |
| 1293 | creditable service through June 30, 2005, in another membership |
| 1294 | class of the Florida Retirement System in a position with the |
| 1295 | Department of Law Enforcement or the Division of State Fire |
| 1296 | Marshal and became covered by the Special Risk Class as |
| 1297 | described in paragraph (3)(2)(i), or with a local government law |
| 1298 | enforcement agency or medical examiner's office and became |
| 1299 | covered by the Special Risk Class as described in paragraph |
| 1300 | (3)(2)(j), which service is within the purview of the Special |
| 1301 | Risk Class, and is employed in such position on or after July 1, |
| 1302 | 2008, may purchase additional retirement credit to upgrade such |
| 1303 | service to Special Risk Class service, to the extent of the |
| 1304 | percentages of the member's average final compensation provided |
| 1305 | in s. 121.091(1)(a)2. The cost for such credit shall be an |
| 1306 | amount representing the actuarial accrued liability for the |
| 1307 | difference in accrual value during the affected period of |
| 1308 | service. The cost shall be calculated using the discount rate |
| 1309 | and other relevant actuarial assumptions that were used to value |
| 1310 | the Florida Retirement System Pension defined benefit Plan |
| 1311 | liabilities in the most recent actuarial valuation. The division |
| 1312 | shall ensure that the transfer sum is prepared using a formula |
| 1313 | and methodology certified by an enrolled actuary. The cost must |
| 1314 | be paid immediately upon notification by the division. The local |
| 1315 | government employer may purchase the upgraded service credit on |
| 1316 | behalf of the member if the member has been employed by that |
| 1317 | employer for at least 3 years. |
| 1318 | Section 7. Paragraphs (a) and (d) of subsection (4), |
| 1319 | paragraph (b) of subsection (7), and subsection (10) of section |
| 1320 | 121.052, Florida Statutes, are amended, present paragraph (c) of |
| 1321 | subsection (7) of that section is redesignated as paragraph (d), |
| 1322 | and a new paragraph (c) is added to that subsection, to read: |
| 1323 | 121.052 Membership class of elected officers.- |
| 1324 | (4) PARTICIPATION BY ELECTED OFFICERS SERVING A SHORTENED |
| 1325 | TERM DUE TO APPORTIONMENT, FEDERAL INTERVENTION, ETC.- |
| 1326 | (a) Any duly elected officer whose term of office was |
| 1327 | shortened by legislative or judicial apportionment pursuant to |
| 1328 | the provisions of s. 16, Art. III of the State Constitution may, |
| 1329 | after the term of office to which he or she was elected is |
| 1330 | completed, pay into the System Trust Fund the amount of |
| 1331 | contributions that would have been made by the officer or the |
| 1332 | officer's employer on his or her behalf, plus 4 percent interest |
| 1333 | compounded annually from the date he or she left office until |
| 1334 | July 1, 1975, and 6.5 percent interest compounded annually |
| 1335 | thereafter, and may receive service credit for the length of |
| 1336 | time the officer would have served if such term had not been |
| 1337 | shortened by apportionment. |
| 1338 | (d)1. Any justice or judge, or any retired justice or |
| 1339 | judge who retired before July 1, 1993, who has attained the age |
| 1340 | of 70 years and who is prevented under s. 8, Art. V of the State |
| 1341 | Constitution from completing his or her term of office because |
| 1342 | of age may elect to purchase credit for all or a portion of the |
| 1343 | months he or she would have served during the remainder of the |
| 1344 | term of office, but he or she may claim those months only after |
| 1345 | the date the service would have occurred. The justice or judge |
| 1346 | must pay into the System Trust Fund the amount of contributions |
| 1347 | that would have been made by the employer on his or her behalf |
| 1348 | for the period of time being claimed, plus 6.5 percent interest |
| 1349 | thereon compounded each June 30 from the date he or she left |
| 1350 | office, in order to receive service credit in this class for the |
| 1351 | period of time being claimed. After the date the service would |
| 1352 | have occurred, and upon payment of the required contributions, |
| 1353 | the retirement benefit of a retired justice or judge shall will |
| 1354 | be adjusted prospectively to include the this additional |
| 1355 | creditable service; however, such adjustment may be made only |
| 1356 | once. |
| 1357 | 2. Any justice or judge who does not seek election to a |
| 1358 | subsequent term of office because he or she would be prevented |
| 1359 | under s. 8, Art. V of the State Constitution from completing |
| 1360 | such term of office upon attaining the age of 70 years may elect |
| 1361 | to purchase service credit for service as a temporary judge as |
| 1362 | assigned by the court if the temporary assignment follows |
| 1363 | immediately the last full term of office served and the purchase |
| 1364 | is limited to the number of months of service needed to vest |
| 1365 | retirement benefits. To receive retirement credit for such |
| 1366 | temporary service beyond termination, the justice or judge must |
| 1367 | pay into the System Trust Fund the amount of contributions that |
| 1368 | would have been made by the justice or judge and the employer on |
| 1369 | his or her behalf had he or she continued in office for the |
| 1370 | period of time being claimed, plus 6.5 percent interest thereon |
| 1371 | compounded each June 30 from the date he or she left office. |
| 1372 | (7) CONTRIBUTIONS.- |
| 1373 | (b) The employer paying the salary of a member of the |
| 1374 | Elected Officers' Class shall contribute an amount as specified |
| 1375 | in this subsection or s. 121.71, as appropriate, which shall |
| 1376 | constitute the entire employer retirement contribution with |
| 1377 | respect to such member. The employer shall also withhold one- |
| 1378 | half of the entire contribution of the member required for |
| 1379 | social security coverage. Effective July 1, 2011, each member of |
| 1380 | the Elected Officers' Class shall pay employee contributions as |
| 1381 | specified in s. 121.71. |
| 1382 | (c) If a member of the Elected Officers' Class ceases to |
| 1383 | fill an office covered by this class for 3 calendar months for |
| 1384 | any reason other than retirement and has not been employed in |
| 1385 | any capacity with any participating employer for 3 calendar |
| 1386 | months, the member may receive a refund of all contributions he |
| 1387 | or she has made to the pension plan, subject to the restrictions |
| 1388 | otherwise provided in this chapter. Partial refunds are not |
| 1389 | permitted. The refund shall not include any interest earnings on |
| 1390 | the contributions for a member of the pension plan. Employer |
| 1391 | contributions made on behalf of the member are not refundable. A |
| 1392 | member may not receive a refund of employee contributions if a |
| 1393 | pending or an approved qualified domestic relations order is |
| 1394 | filed against the member's retirement account. By obtaining a |
| 1395 | refund of contributions, a member waives all rights under the |
| 1396 | Florida Retirement System and the health insurance subsidy |
| 1397 | provided under s. 112.363 to the service credit represented by |
| 1398 | the refunded contributions, except the right to purchase his or |
| 1399 | her prior service credit in accordance with s. 121.081(2). |
| 1400 | (10) ACCRUED SERVICE VALUE.-A member of the Elected |
| 1401 | Officers' Class who is a Supreme Court justice, district court |
| 1402 | of appeal judge, circuit judge, or county court judge shall |
| 1403 | receive judicial retirement credit of 3 1/3 percent of average |
| 1404 | final compensation, and all other members shall receive elected |
| 1405 | officer accrual value retirement credit of 3 percent of average |
| 1406 | final compensation, for each year of creditable service in such |
| 1407 | class. |
| 1408 | Section 8. Paragraph (a) of subsection (7) of section |
| 1409 | 121.053, Florida Statutes, is amended to read: |
| 1410 | 121.053 Participation in the Elected Officers' Class for |
| 1411 | retired members.- |
| 1412 | (7) A member who is elected or appointed to an elective |
| 1413 | office and who is participating in the Deferred Retirement |
| 1414 | Option Program is not subject to termination as defined in s. |
| 1415 | 121.021, or reemployment limitations as provided in s. |
| 1416 | 121.091(9), until the end of his or her current term of office |
| 1417 | or, if the officer is consecutively elected or reelected to an |
| 1418 | elective office eligible for coverage under the Florida |
| 1419 | Retirement System, until he or she no longer holds an elective |
| 1420 | office, as follows: |
| 1421 | (a) At the end of the 60-month DROP period: |
| 1422 | 1. The officer's DROP account may not accrue additional |
| 1423 | monthly benefits, but does continue to earn interest as provided |
| 1424 | in s. 121.091(13). However, an officer whose DROP participation |
| 1425 | begins on or after July 1, 2010, may not continue to earn such |
| 1426 | interest. |
| 1427 | 2. Retirement contributions, except for unfunded actuarial |
| 1428 | liability and health insurance subsidy contributions required in |
| 1429 | ss. 121.71(5) and 121.76, are not required of the employer of |
| 1430 | the elected officer and additional retirement credit may not be |
| 1431 | earned under the Florida Retirement System. |
| 1432 | Section 9. Paragraphs (b) and (j) of subsection (1), |
| 1433 | paragraph (b) of subsection (3), and paragraphs (d) and (e) of |
| 1434 | subsection (6) of section 121.055, Florida Statutes, are |
| 1435 | amended, present paragraph (c) of subsection (3) of that section |
| 1436 | is redesignated as paragraph (d), and a new paragraph (c) is |
| 1437 | added to that subsection, to read: |
| 1438 | 121.055 Senior Management Service Class.-There is hereby |
| 1439 | established a separate class of membership within the Florida |
| 1440 | Retirement System to be known as the "Senior Management Service |
| 1441 | Class," which shall become effective February 1, 1987. |
| 1442 | (1) |
| 1443 | (b)1. Except as provided in subparagraph 2., effective |
| 1444 | January 1, 1990, participation in the Senior Management Service |
| 1445 | Class is shall be compulsory for the president of each community |
| 1446 | college, the manager of each participating city or county, and |
| 1447 | all appointed district school superintendents. Effective January |
| 1448 | 1, 1994, additional positions may be designated for inclusion in |
| 1449 | the Senior Management Service Class of the Florida Retirement |
| 1450 | System, provided that: |
| 1451 | a. Positions to be included in the class are shall be |
| 1452 | designated by the local agency employer. Notice of intent to |
| 1453 | designate positions for inclusion in the class must shall be |
| 1454 | published once a week for 2 consecutive weeks in a newspaper of |
| 1455 | general circulation published in the county or counties |
| 1456 | affected, as provided in chapter 50. |
| 1457 | b. Up to 10 nonelective full-time positions may be |
| 1458 | designated for each local agency employer reporting to the |
| 1459 | department of Management Services; for local agencies with 100 |
| 1460 | or more regularly established positions, additional nonelective |
| 1461 | full-time positions may be designated, not to exceed 1 percent |
| 1462 | of the regularly established positions within the agency. |
| 1463 | c. Each position added to the class must be a managerial |
| 1464 | or policymaking position filled by an employee who is not |
| 1465 | subject to continuing contract and serves at the pleasure of the |
| 1466 | local agency employer without civil service protection, and who: |
| 1467 | (I) Heads an organizational unit; or |
| 1468 | (II) Has responsibility to effect or recommend personnel, |
| 1469 | budget, expenditure, or policy decisions in his or her areas of |
| 1470 | responsibility. |
| 1471 | 2. In lieu of participation in the Senior Management |
| 1472 | Service Class, members of the Senior Management Service Class, |
| 1473 | pursuant to the provisions of subparagraph 1., may withdraw from |
| 1474 | the Florida Retirement System altogether. The decision to |
| 1475 | withdraw from the Florida Retirement System is shall be |
| 1476 | irrevocable for as long as the employee holds the such a |
| 1477 | position. Any service creditable under the Senior Management |
| 1478 | Service Class shall be retained after the member withdraws from |
| 1479 | the Florida Retirement System; however, additional service |
| 1480 | credit in the Senior Management Service Class may shall not be |
| 1481 | earned after such withdrawal. Such members are shall not be |
| 1482 | eligible to participate in the Senior Management Service |
| 1483 | Optional Annuity Program. |
| 1484 | 3. Effective January 1, 2006, through June 30, 2006, an |
| 1485 | employee who has withdrawn from the Florida Retirement System |
| 1486 | under subparagraph 2. has one opportunity to elect to |
| 1487 | participate in either the pension plan defined benefit program |
| 1488 | or the investment plan Public Employee Optional Retirement |
| 1489 | Program of the Florida Retirement System. |
| 1490 | a. If the employee elects to participate in the investment |
| 1491 | plan Public Employee Optional Retirement Program, membership |
| 1492 | shall be prospective, and the applicable provisions of s. |
| 1493 | 121.4501(4) shall govern the election. |
| 1494 | b. If the employee elects to participate in the pension |
| 1495 | plan defined benefit program of the Florida Retirement System, |
| 1496 | the employee shall, upon payment to the system trust fund of the |
| 1497 | amount calculated under sub-sub-subparagraph (I), receive |
| 1498 | service credit for prior service based upon the time during |
| 1499 | which the employee had withdrawn from the system. |
| 1500 | (I) The cost for such credit shall be an amount |
| 1501 | representing the actuarial accrued liability for the affected |
| 1502 | period of service. The cost shall be calculated using the |
| 1503 | discount rate and other relevant actuarial assumptions that were |
| 1504 | used to value the pension Florida Retirement System defined |
| 1505 | benefit plan liabilities in the most recent actuarial valuation. |
| 1506 | The calculation must shall include any service already |
| 1507 | maintained under the pension defined benefit plan in addition to |
| 1508 | the period of withdrawal. The actuarial accrued liability |
| 1509 | attributable to any service already maintained under the pension |
| 1510 | defined benefit plan shall be applied as a credit to the total |
| 1511 | cost resulting from the calculation. The division must shall |
| 1512 | ensure that the transfer sum is prepared using a formula and |
| 1513 | methodology certified by an actuary. |
| 1514 | (II) The employee must transfer a sum representing the net |
| 1515 | cost owed for the actuarial accrued liability in sub-sub- |
| 1516 | subparagraph (I) immediately following the time of such |
| 1517 | movement, determined assuming that attained service equals the |
| 1518 | sum of service in the pension plan defined benefit program and |
| 1519 | the period of withdrawal. |
| 1520 | (j) Except as may otherwise be provided, a any member of |
| 1521 | the Senior Management Service Class may purchase additional |
| 1522 | retirement credit in such class for creditable service within |
| 1523 | the purview of the Senior Management Service Class retroactive |
| 1524 | to February 1, 1987, and may upgrade retirement credit for such |
| 1525 | service, to the extent of 2 percent of the member's average |
| 1526 | monthly compensation as specified in paragraph (4)(d) for such |
| 1527 | service. Contributions for upgrading the additional Senior |
| 1528 | Management Service credit pursuant to this paragraph shall be |
| 1529 | equal to the difference in the employer and, if applicable, |
| 1530 | employee contributions paid and the Senior Management Service |
| 1531 | Class contribution rate as a percentage of gross salary in |
| 1532 | effect for the period being claimed, plus interest thereon at |
| 1533 | the rate of 6.5 percent a year, compounded annually until the |
| 1534 | date of payment. This service credit may be purchased by the |
| 1535 | employer on behalf of the member. |
| 1536 | (3) |
| 1537 | (b) The employer paying the salary of a member of the |
| 1538 | Senior Management Service Class shall contribute an amount as |
| 1539 | specified in this section or s. 121.71, as appropriate, which |
| 1540 | shall constitute the entire employer retirement contribution |
| 1541 | with respect to such member. The employer shall also withhold |
| 1542 | one-half of the entire contribution of the member required for |
| 1543 | social security coverage. Effective July 1, 2011, each member |
| 1544 | shall pay employee contributions as specified in s. 121.71. |
| 1545 | (c) Upon termination of employment from all participating |
| 1546 | employers for 3 calendar months for any reason other than |
| 1547 | retirement pursuant to s. 121.021(39)(c), a member may receive a |
| 1548 | refund of all contributions he or she has made to the pension |
| 1549 | plan, subject to the restrictions otherwise provided in this |
| 1550 | chapter. Partial refunds are not permitted. The refund shall not |
| 1551 | include any interest earnings on the contributions for a member |
| 1552 | of the pension plan. Employer contributions made on behalf of |
| 1553 | the member are not refundable. A member may not receive a refund |
| 1554 | of employee contributions if a pending or an approved qualified |
| 1555 | domestic relations order is filed against the member's |
| 1556 | retirement account. By obtaining a refund of contributions, a |
| 1557 | member waives all rights under the Florida Retirement System and |
| 1558 | the health insurance subsidy provided under s. 112.363 to the |
| 1559 | service credit represented by the refunded contributions, except |
| 1560 | the right to purchase his or her prior service credit in |
| 1561 | accordance with s. 121.081(2). |
| 1562 | (6) |
| 1563 | (d) Contributions.- |
| 1564 | 1. Through June 30, 2001, each employer shall contribute |
| 1565 | on behalf of each participant in the Senior Management Service |
| 1566 | Optional Annuity Program an amount equal to the normal cost |
| 1567 | portion of the employer retirement contribution which would be |
| 1568 | required if the participant were a Senior Management Service |
| 1569 | Class member of the Florida Retirement System pension plan |
| 1570 | defined benefit program, plus the portion of the contribution |
| 1571 | rate required in s. 112.363(8) that would otherwise be assigned |
| 1572 | to the Retiree Health Insurance Subsidy Trust Fund. Effective |
| 1573 | July 1, 2001, each employer shall contribute on behalf of each |
| 1574 | participant in the optional program an amount equal to 12.49 |
| 1575 | percent of the participant's gross monthly compensation. The |
| 1576 | department shall deduct an amount approved by the Legislature to |
| 1577 | provide for the administration of this program. The payment of |
| 1578 | the contributions to the optional program which is required by |
| 1579 | this subparagraph for each participant shall be made by the |
| 1580 | employer to the department, which shall forward the |
| 1581 | contributions to the designated company or companies contracting |
| 1582 | for payment of benefits for the participant under the program. |
| 1583 | 2. Each employer shall contribute on behalf of each |
| 1584 | participant in the Senior Management Service Optional Annuity |
| 1585 | Program an amount equal to the unfunded actuarial accrued |
| 1586 | liability portion of the employer contribution which would be |
| 1587 | required for members of the Senior Management Service Class in |
| 1588 | the Florida Retirement System. This contribution shall be paid |
| 1589 | to the department for transfer to the Florida Retirement System |
| 1590 | Trust Fund. |
| 1591 | 3. An Optional Annuity Program Trust Fund shall be |
| 1592 | established in the State Treasury and administered by the |
| 1593 | department to make payments to provider companies on behalf of |
| 1594 | the optional annuity program participants, and to transfer the |
| 1595 | unfunded liability portion of the state optional annuity program |
| 1596 | contributions to the Florida Retirement System Trust Fund. |
| 1597 | 4. Contributions required for social security by each |
| 1598 | employer and each participant, in the amount required for social |
| 1599 | security coverage as now or hereafter may be provided by the |
| 1600 | federal Social Security Act shall be maintained for each |
| 1601 | participant in the Senior Management Service retirement program |
| 1602 | and shall be in addition to the retirement contributions |
| 1603 | specified in this paragraph. |
| 1604 | 5. Each participant in the Senior Management Service |
| 1605 | Optional Annuity Program may contribute by way of salary |
| 1606 | reduction or deduction a percentage amount of the participant's |
| 1607 | gross compensation not to exceed the percentage amount |
| 1608 | contributed by the employer to the optional annuity program. |
| 1609 | Payment of the participant's contributions shall be made by the |
| 1610 | employer to the department, which shall forward the |
| 1611 | contributions to the designated company or companies contracting |
| 1612 | for payment of benefits for the participant under the program. |
| 1613 | (e) Benefits.- |
| 1614 | 1. Benefits under the Senior Management Service Optional |
| 1615 | Annuity Program are payable only to participants in the program, |
| 1616 | or their beneficiaries as designated by the participant in the |
| 1617 | contract with the provider company, and must be paid by the |
| 1618 | designated company in accordance with the terms of the annuity |
| 1619 | contract applicable to the participant. A participant must be |
| 1620 | terminated from all employment relationships with Florida |
| 1621 | Retirement System employers as provided in s. 121.021(39) to |
| 1622 | begin receiving the employee-funded and employer-funded benefit. |
| 1623 | Benefits funded by employee and employer contributions are |
| 1624 | payable under the terms of the contract to the participant, his |
| 1625 | or her beneficiary, or his or her estate, in addition to: |
| 1626 | a. A lump-sum payment to the beneficiary upon the death of |
| 1627 | the participant; |
| 1628 | b. A cash-out of a de minimis account upon the request of |
| 1629 | a former participant who has been terminated for a minimum of 6 |
| 1630 | calendar months from the employment that entitled him or her to |
| 1631 | optional annuity program participation. Such cash-out must be a |
| 1632 | complete liquidation of the account balance with that company |
| 1633 | and is subject to the Internal Revenue Code; |
| 1634 | c. A mandatory distribution of a de minimis account of a |
| 1635 | former participant who has been terminated for a minimum of 6 |
| 1636 | calendar months from the employment that entitled him or her to |
| 1637 | optional annuity program participation as authorized by the |
| 1638 | department; or |
| 1639 | d. A lump-sum direct rollover distribution whereby all |
| 1640 | accrued benefits, plus interest and investment earnings, are |
| 1641 | paid from the participant's account directly to the custodian of |
| 1642 | an eligible retirement plan, as defined in s. 402(c)(8)(B) of |
| 1643 | the Internal Revenue Code, on behalf of the participant. |
| 1644 | 2. Under the Senior Management Service Optional Annuity |
| 1645 | Program, benefits are not payable for employee hardships, |
| 1646 | unforeseeable emergencies, loans, medical expenses, educational |
| 1647 | expenses, purchase of a principal residence, payments necessary |
| 1648 | to prevent eviction or foreclosure on an employee's principal |
| 1649 | residence, or any other reason prior to termination from all |
| 1650 | employment relationships with participating employers, as |
| 1651 | provided in s. 121.021(39). |
| 1652 | 3.2. The benefits payable to any person under the Senior |
| 1653 | Management Service Optional Annuity Program, and any |
| 1654 | contribution accumulated under such program, are not subject to |
| 1655 | assignment, execution, or attachment or to any legal process |
| 1656 | whatsoever. |
| 1657 | 4.3. Except as provided in subparagraph 5. 4., a |
| 1658 | participant who terminates employment and receives a |
| 1659 | distribution, including a rollover or trustee-to-trustee |
| 1660 | transfer, funded by employer contributions shall be deemed to be |
| 1661 | retired from a state-administered retirement system if the |
| 1662 | participant is subsequently employed with an employer that |
| 1663 | participates in the Florida Retirement System. |
| 1664 | 5.4. A participant who receives optional annuity program |
| 1665 | benefits funded by employee and employer contributions as a |
| 1666 | mandatory distribution of a de minimis account authorized by the |
| 1667 | department is not considered a retiree. |
| 1668 |
|
| 1669 | As used in this paragraph, a "de minimis account" means an |
| 1670 | account with a provider company containing employee and employer |
| 1671 | contributions and accumulated earnings of not more than $5,000 |
| 1672 | made under this chapter. |
| 1673 | Section 10. Subsections (2) and (5) and paragraph (c) of |
| 1674 | subsection (6) of section 121.071, Florida Statutes, are |
| 1675 | amended, present paragraph (d) of subsection (6) is redesignated |
| 1676 | as paragraph (e), and a new paragraph (d) is added to that |
| 1677 | subsection, to read: |
| 1678 | 121.071 Contributions.-Contributions to the system shall |
| 1679 | be made as follows: |
| 1680 | (2)(a) Effective January 1, 1975, or October 1, 1975, as |
| 1681 | applicable, and through June 30, 2011, each employer shall |
| 1682 | accomplish the contribution required by subsection (1) by a |
| 1683 | procedure in which no employee's gross salary shall be reduced. |
| 1684 | Effective July 1, 2011, each employee and employer shall pay |
| 1685 | retirement contributions as specified in s. 121.71. |
| 1686 | (b) Upon termination of employment from all participating |
| 1687 | employers for 3 calendar months for any reason other than |
| 1688 | retirement pursuant to s. 121.021(39)(c), a member may receive |
| 1689 | shall be entitled to a full refund of all the contributions he |
| 1690 | or she has made to the pension prior or subsequent to |
| 1691 | participation in the noncontributory plan, subject to the |
| 1692 | restrictions otherwise provided in this chapter. Partial refunds |
| 1693 | are not permitted. The refund shall not include any interest |
| 1694 | earnings on the contributions for a member of the pension plan. |
| 1695 | Employer contributions made on behalf of the member are not |
| 1696 | refundable. A member may not receive a refund of employee |
| 1697 | contributions if a pending or an approved qualified domestic |
| 1698 | relations order is filed against his or her retirement account. |
| 1699 | By obtaining a refund of contributions, a member waives all |
| 1700 | rights under the Florida Retirement System and the health |
| 1701 | insurance subsidy to the service credit represented by the |
| 1702 | refunded contributions, except the right to purchase his or her |
| 1703 | prior service credit in accordance with s. 121.081(2). |
| 1704 | (5) Contributions made in accordance with subsections (1), |
| 1705 | (2), (3), and (4), and s. 121.71 shall be paid by the employer |
| 1706 | into the system trust funds in accordance with rules adopted by |
| 1707 | the administrator pursuant to chapter 120, except as may be |
| 1708 | otherwise specified herein. Effective July 1, 2002, |
| 1709 | contributions paid under subsections (1) and (4) and |
| 1710 | accompanying payroll data are due and payable no later than the |
| 1711 | 5th working day of the month immediately following the month |
| 1712 | during which the payroll period ended. |
| 1713 | (6) |
| 1714 | (c) By obtaining a refund of contributions, a member |
| 1715 | waives all rights under the Florida Retirement System and the |
| 1716 | health insurance subsidy as provided in s. 112.363 to the |
| 1717 | service credit represented by the refunded contributions, except |
| 1718 | the right to purchase his or her prior service credit in |
| 1719 | accordance with s. 121.081(2). |
| 1720 | (d) If a member or former member of the pension plan |
| 1721 | receives an invalid refund from the Florida Retirement System |
| 1722 | Trust Fund, such person must repay the full amount of the |
| 1723 | invalid refund, plus interest at 6.5 percent compounded annually |
| 1724 | on each June 30 from the date of refund until full payment is |
| 1725 | made to the trust fund. The invalid refund must be repaid before |
| 1726 | the member retires or, if applicable, transfers to the |
| 1727 | investment plan. |
| 1728 | Section 11. Paragraphs (b) and (c) of subsection (1) and |
| 1729 | subsection (2) of section 121.081, Florida Statutes, are amended |
| 1730 | to read: |
| 1731 | 121.081 Past service; prior service; contributions.- |
| 1732 | Conditions under which past service or prior service may be |
| 1733 | claimed and credited are: |
| 1734 | (1) |
| 1735 | (b) Past service earned after January 1, 1975, may be |
| 1736 | claimed by officers or employees of a municipality, metropolitan |
| 1737 | planning organization, charter school, charter technical career |
| 1738 | center, or special district who become a covered group under |
| 1739 | this system. The governing body of a covered group may elect to |
| 1740 | provide benefits for past service earned after January 1, 1975, |
| 1741 | in accordance with this chapter, and the cost for such past |
| 1742 | service is established by applying the following formula: The |
| 1743 | employer shall contribute an amount equal to the employer |
| 1744 | contribution rate in effect at the time the service was earned |
| 1745 | and, if applicable, the employee contribution rate, multiplied |
| 1746 | by the employee's gross salary for each year of past service |
| 1747 | claimed, plus 6.5-percent interest thereon, compounded annually, |
| 1748 | figured on each year of past service, with interest compounded |
| 1749 | from date of annual salary earned until date of payment. |
| 1750 | (c) If an employer joins the Florida Retirement System |
| 1751 | prior to July 1, 2011, and does Should the employer not elect to |
| 1752 | provide past service for the member at the time of joining, then |
| 1753 | the member may claim and pay for the service as provided in |
| 1754 | same, based on paragraphs (a) and (b). |
| 1755 | (2) Prior service, as defined in s. 121.021(19), may be |
| 1756 | claimed as creditable service under the Florida Retirement |
| 1757 | System after a member has been reemployed for 1 complete year of |
| 1758 | creditable service within a period of 12 consecutive months, |
| 1759 | except as provided in paragraph (c). Service performed as a |
| 1760 | participant of the optional retirement program for the State |
| 1761 | University System under s. 121.35 or the Senior Management |
| 1762 | Service Optional Annuity Program under s. 121.055 may be used to |
| 1763 | satisfy the reemployment requirement of 1 complete year of |
| 1764 | creditable service. The member shall not be permitted to make |
| 1765 | any contributions for prior service until after completion of |
| 1766 | the 1 year of creditable service. If a member does not wish to |
| 1767 | claim credit for all of his or her prior service, the service |
| 1768 | the member claims must be the most recent period of service. The |
| 1769 | required contributions for claiming the various types of prior |
| 1770 | service are: |
| 1771 | (a) For prior service performed prior to the date the |
| 1772 | system becomes noncontributory for the member and for which the |
| 1773 | member had credit under one of the existing retirement systems |
| 1774 | and received a refund of contributions upon termination of |
| 1775 | employment, the member shall contribute 4 percent of all salary |
| 1776 | received during the period being claimed, plus 4-percent |
| 1777 | interest compounded annually from date of refund until July 1, |
| 1778 | 1975, and 6.5-percent interest compounded annually thereafter, |
| 1779 | until full payment is made to the Retirement Trust Fund, and |
| 1780 | shall receive credit in the Regular Class. A member who elected |
| 1781 | to transfer to the Florida Retirement System from an existing |
| 1782 | system may receive credit for prior service under the existing |
| 1783 | system if he or she was eligible under the existing system to |
| 1784 | claim the prior service at the time of the transfer. |
| 1785 | Contributions for such prior service shall be determined by the |
| 1786 | applicable provisions of the system under which the prior |
| 1787 | service is claimed and shall be paid by the member, with |
| 1788 | matching contributions paid by the employer at the time the |
| 1789 | service was performed. Effective July 1, 1978, the account of a |
| 1790 | person who terminated under s. 238.05(3) may not be charged |
| 1791 | interest for contributions that remained on deposit in the |
| 1792 | Annuity Savings Trust Fund established under chapter 238, upon |
| 1793 | retirement under this chapter or chapter 238. |
| 1794 | (b) For prior service performed prior to the date the |
| 1795 | system becomes noncontributory for the member and for which the |
| 1796 | member had credit under the Florida Retirement System and |
| 1797 | received a refund of contributions upon termination of |
| 1798 | employment, the member shall contribute at the rate that was |
| 1799 | required of him or her during the period of service being |
| 1800 | claimed, on all salary received during such period, plus 4- |
| 1801 | percent interest compounded annually from date of refund until |
| 1802 | July 1, 1975, and 6.5-percent interest compounded annually |
| 1803 | thereafter, until the full payment is made to the Retirement |
| 1804 | Trust Fund, and shall receive credit in the membership class in |
| 1805 | which the member participated during the period claimed. |
| 1806 | (c) For prior service as defined in s. 121.021(19)(b) and |
| 1807 | (c) during which no contributions were made because the member |
| 1808 | did not participate in a retirement system, the member shall |
| 1809 | contribute 14.38 percent of all salary received during such |
| 1810 | period or 14.38 percent of $100 per month during such period, |
| 1811 | whichever is greater, plus 4-percent interest compounded |
| 1812 | annually from the first year of service claimed until July 1, |
| 1813 | 1975, and 6.5-percent interest compounded annually thereafter, |
| 1814 | until full payment is made to the Retirement Trust Fund, and |
| 1815 | shall receive credit in the Regular Class. |
| 1816 | (d) In order to claim credit for prior service as defined |
| 1817 | in s. 121.021(19)(d) for which no retirement contributions were |
| 1818 | paid during the period of such service, the member shall |
| 1819 | contribute the total employee and employer contributions which |
| 1820 | were required to be made to the Highway Patrol Pension Trust |
| 1821 | Fund, as provided in chapter 321, during the period claimed, |
| 1822 | plus 4-percent interest compounded annually from the first year |
| 1823 | of service until July 1, 1975, and 6.5-percent interest |
| 1824 | compounded annually thereafter, until full payment is made to |
| 1825 | the Retirement Trust Fund. However, any governmental entity that |
| 1826 | which employed such member may elect to pay up to 50 percent of |
| 1827 | the contributions and interest required to purchase the this |
| 1828 | prior service credit. The service shall be credited in |
| 1829 | accordance with the provisions of the Highway Patrol Pension |
| 1830 | Plan in effect during the period claimed unless the member |
| 1831 | terminated and withdrew his or her retirement contributions and |
| 1832 | was thereafter enrolled in the State and County Officers and |
| 1833 | Employees' Retirement System or the Florida Retirement System, |
| 1834 | in which case the service shall be credited as Regular Class |
| 1835 | service. |
| 1836 | (e) For service performed under the Florida Retirement |
| 1837 | System after December 1, 1970, that was never reported to the |
| 1838 | division or the department due to error, retirement credit may |
| 1839 | be claimed by a member of the Florida Retirement System. The |
| 1840 | department shall adopt rules establishing criteria for claiming |
| 1841 | such credit and detailing the documentation required to |
| 1842 | substantiate the error. |
| 1843 | (f) For prior service performed on or after July 1, 2011, |
| 1844 | for which the member had credit under the Florida Retirement |
| 1845 | System and received a refund of contributions upon termination |
| 1846 | of employment for 3 calendar months, the member shall contribute |
| 1847 | at the rate that was required of him or her during the period of |
| 1848 | service being claimed, plus 6.5 percent interest, compounded |
| 1849 | annually on each June 30 from date of refund until the full |
| 1850 | payment is made to the Florida Retirement System Trust Fund, and |
| 1851 | shall receive credit in the membership class in which the member |
| 1852 | participated during the period claimed. |
| 1853 | (g)(f) The employer may not be required to make |
| 1854 | contributions for prior service credit for any member, except |
| 1855 | that the employer shall pay the employer portion of |
| 1856 | contributions for any legislator who elects to withdraw from the |
| 1857 | Florida Retirement System and later rejoins the system and pays |
| 1858 | any employee contributions required in accordance with s. |
| 1859 | 121.052(3)(d). |
| 1860 | Section 12. Subsection (1), paragraph (a) of subsection |
| 1861 | (3), paragraphs (a) and (c) of subsection (5), paragraph (d) of |
| 1862 | subsection (9), and paragraph (a) of subsection (13) of section |
| 1863 | 121.091, Florida Statutes, are amended, and paragraph (l) is |
| 1864 | added to subsection (13) of that section, to read: |
| 1865 | 121.091 Benefits payable under the system.-Benefits may |
| 1866 | not be paid under this section unless the member has terminated |
| 1867 | employment as provided in s. 121.021(39)(a) or begun |
| 1868 | participation in the Deferred Retirement Option Program as |
| 1869 | provided in subsection (13), and a proper application has been |
| 1870 | filed in the manner prescribed by the department. The department |
| 1871 | may cancel an application for retirement benefits when the |
| 1872 | member or beneficiary fails to timely provide the information |
| 1873 | and documents required by this chapter and the department's |
| 1874 | rules. The department shall adopt rules establishing procedures |
| 1875 | for application for retirement benefits and for the cancellation |
| 1876 | of such application when the required information or documents |
| 1877 | are not received. |
| 1878 | (1) NORMAL RETIREMENT BENEFIT.-Upon attaining his or her |
| 1879 | normal retirement date, the member, upon application to the |
| 1880 | administrator, shall receive a monthly benefit which shall begin |
| 1881 | to accrue on the first day of the month of retirement and be |
| 1882 | payable on the last day of that month and each month thereafter |
| 1883 | during his or her lifetime. The normal retirement benefit, |
| 1884 | including any past or additional retirement credit, may not |
| 1885 | exceed 100 percent of the average final compensation. The amount |
| 1886 | of monthly benefit shall be calculated as the product of A and |
| 1887 | B, subject to the adjustment of C, if applicable, as set forth |
| 1888 | below: |
| 1889 | (a)1. For creditable years of Regular Class service, A is |
| 1890 | 1.60 percent of the member's average final compensation, up to |
| 1891 | the member's normal retirement date. Upon completion of the |
| 1892 | first year after the normal retirement date, A is 1.63 percent |
| 1893 | of the member's average final compensation. Following the second |
| 1894 | year after the normal retirement date, A is 1.65 percent of the |
| 1895 | member's average final compensation. Following the third year |
| 1896 | after the normal retirement date, and for subsequent years, A is |
| 1897 | 1.68 percent of the member's average final compensation. |
| 1898 | 2. For creditable years of special risk service, A is: |
| 1899 | a. Two percent of the member's average final compensation |
| 1900 | for all creditable years prior to October 1, 1974.; |
| 1901 | b. Three percent of the member's average final |
| 1902 | compensation for all creditable years after September 30, 1974, |
| 1903 | and before October 1, 1978.; |
| 1904 | c. Two percent of the member's average final compensation |
| 1905 | for all creditable years after September 30, 1978, and before |
| 1906 | January 1, 1989.; |
| 1907 | d. Two and two-tenths percent of the member's final |
| 1908 | monthly compensation for all creditable years after December 31, |
| 1909 | 1988, and before January 1, 1990.; |
| 1910 | e. Two and four-tenths percent of the member's average |
| 1911 | final compensation for all creditable years after December 31, |
| 1912 | 1989, and before January 1, 1991.; |
| 1913 | f. Two and six-tenths percent of the member's average |
| 1914 | final compensation for all creditable years after December 31, |
| 1915 | 1990, and before January 1, 1992.; |
| 1916 | g. Two and eight-tenths percent of the member's average |
| 1917 | final compensation for all creditable years after December 31, |
| 1918 | 1991, and before January 1, 1993.; |
| 1919 | h. Three percent of the member's average final |
| 1920 | compensation for all creditable years after December 31, 1992.; |
| 1921 | and |
| 1922 | i. Three percent of the member's average final |
| 1923 | compensation for all creditable years of service after September |
| 1924 | 30, 1978, and before January 1, 1993, for any special risk |
| 1925 | member who retires after July 1, 2000, or any member of the |
| 1926 | Special Risk Administrative Support Class entitled to retain the |
| 1927 | special risk normal retirement date who was a member of the |
| 1928 | Special Risk Class during the time period and who retires after |
| 1929 | July 1, 2000. |
| 1930 | 3. For creditable years of Senior Management Service Class |
| 1931 | service after January 31, 1987, A is 2 percent.; |
| 1932 | 4. For creditable years of Elected Officers' Class service |
| 1933 | as a Supreme Court Justice, district court of appeal judge, |
| 1934 | circuit judge, or county court judge, A is 3 1/3 percent of the |
| 1935 | member's average final compensation, and for all other |
| 1936 | creditable service in such class, A is 3 percent of average |
| 1937 | final compensation.; |
| 1938 | (b) B is the number of the member's years and any |
| 1939 | fractional part of a year of creditable service earned |
| 1940 | subsequent to November 30, 1970.; and |
| 1941 | (c) C is the normal retirement benefit credit brought |
| 1942 | forward as of November 30, 1970, by a former member of an |
| 1943 | existing system. Such normal retirement benefit credit shall be |
| 1944 | determined as the product of X and Y when X is the percentage of |
| 1945 | average final compensation which the member would have been |
| 1946 | eligible to receive if the member had attained his or her normal |
| 1947 | retirement date as of November 30, 1970, all in accordance with |
| 1948 | the existing system under which the member is covered on |
| 1949 | November 30, 1970, and Y is average final compensation as |
| 1950 | defined in s. 121.021(24). However, any member of an existing |
| 1951 | retirement system who is eligible to retire and who does retire, |
| 1952 | become disabled, or die prior to April 15, 1971, may have his or |
| 1953 | her retirement benefits calculated on the basis of the best 5 of |
| 1954 | the last 10 years of service. |
| 1955 | (d) A member's average final compensation shall be |
| 1956 | determined by formula to obtain the coverage for the 5 highest |
| 1957 | fiscal years' salaries, calculated as provided by rule. |
| 1958 | (3) EARLY RETIREMENT BENEFIT.-Upon retirement on his or |
| 1959 | her early retirement date, the member shall receive an immediate |
| 1960 | monthly benefit that shall begin to accrue on the first day of |
| 1961 | the month of the retirement date and be payable on the last day |
| 1962 | of that month and each month thereafter during his or her |
| 1963 | lifetime. Such benefit shall be calculated as follows: |
| 1964 | (a)1. For a member initially enrolled before July 1, 2011, |
| 1965 | the amount of each monthly payment shall be computed in the same |
| 1966 | manner as for a normal retirement benefit, in accordance with |
| 1967 | subsection (1), but shall be based on the member's average |
| 1968 | monthly compensation and creditable service as of the member's |
| 1969 | early retirement date. The benefit so computed shall be reduced |
| 1970 | by five-twelfths of 1 percent for each complete month by which |
| 1971 | the early retirement date precedes the normal retirement date of |
| 1972 | age 62 for a member of the Regular Class, Senior Management |
| 1973 | Service Class, or the Elected Officers' Class, and age 55 for a |
| 1974 | member of the Special Risk Class, or age 52 if a Special Risk |
| 1975 | member has completed 25 years of creditable service in |
| 1976 | accordance with s. 121.021(29)(b)1.c. 121.021(29)(b)3. |
| 1977 | 2. For a member initially enrolled on or after July 1, |
| 1978 | 2011, the amount of each monthly payment shall be computed in |
| 1979 | the same manner as for a normal retirement benefit, in |
| 1980 | accordance with subsection (1), but shall be based on the |
| 1981 | member's average monthly compensation and creditable service as |
| 1982 | of the member's early retirement date. The benefit so computed |
| 1983 | shall be reduced by five-twelfths of 1 percent for each complete |
| 1984 | month by which the early retirement date precedes the normal |
| 1985 | retirement date of age 65 for a member of the Regular Class, |
| 1986 | Senior Management Service Class, or the Elected Officers' Class, |
| 1987 | and age 60 for a member of the Special Risk Class, or age 57 if |
| 1988 | a Special Risk member has completed 30 years of creditable |
| 1989 | service in accordance with s. 121.021(29)(b)2.c. |
| 1990 | (5) TERMINATION BENEFITS.-A member whose employment is |
| 1991 | terminated prior to retirement retains membership rights to |
| 1992 | previously earned member-noncontributory service credit, and to |
| 1993 | member-contributory service credit, if the member leaves the |
| 1994 | member contributions on deposit in his or her retirement |
| 1995 | account. If a terminated member receives a refund of member |
| 1996 | contributions, such member may reinstate membership rights to |
| 1997 | the previously earned service credit represented by the refund |
| 1998 | by completing 1 year of creditable service and repaying the |
| 1999 | refunded member contributions, plus interest. |
| 2000 | (a) A member whose employment is terminated for any reason |
| 2001 | other than death or retirement prior to becoming vested is |
| 2002 | entitled to the return of his or her accumulated contributions |
| 2003 | as of the date of termination. Effective July 1, 2011, upon |
| 2004 | termination of employment from all participating employers for 3 |
| 2005 | calendar months for any reason other than retirement pursuant to |
| 2006 | s. 121.021(39)(c), a member may receive a refund of all |
| 2007 | contributions he or she has made to the pension plan, subject to |
| 2008 | the restrictions otherwise provided in this chapter. Partial |
| 2009 | refunds are not permitted. The refund shall not include any |
| 2010 | interest earnings on the contributions for a member of the |
| 2011 | pension plan. Employer contributions made on behalf of the |
| 2012 | member are not refundable. A member may not receive a refund of |
| 2013 | employee contributions if a pending or an approved qualified |
| 2014 | domestic relations order is filed against his or her retirement |
| 2015 | account. By obtaining a refund of contributions, a member waives |
| 2016 | all rights under the Florida Retirement System and the health |
| 2017 | insurance subsidy to the service credit represented by the |
| 2018 | refunded contributions, except the right to purchase his or her |
| 2019 | prior service credit in accordance with s. 121.081(2). |
| 2020 | (c) In lieu of the deferred monthly benefit provided in |
| 2021 | paragraph (b), the terminated member may elect to receive a |
| 2022 | lump-sum amount equal to his or her accumulated contributions as |
| 2023 | of the date of termination. Effective July 1, 2011, upon |
| 2024 | termination of employment from all participating employers for 3 |
| 2025 | calendar months for any reason other than retirement pursuant to |
| 2026 | s. 121.021(39)(c), a member may receive a refund of all |
| 2027 | contributions he or she has made to the pension plan, subject to |
| 2028 | the restrictions otherwise provided in this chapter. Partial |
| 2029 | refunds are not permitted. The refund shall not include any |
| 2030 | interest earnings on the contributions for a member of the |
| 2031 | pension plan. Employer contributions made on behalf of the |
| 2032 | member are not refundable. A member may not receive a refund of |
| 2033 | employee contributions if a pending or an approved qualified |
| 2034 | domestic relations order is filed against his or her retirement |
| 2035 | account. By obtaining a refund of contributions, a member waives |
| 2036 | all rights under the Florida Retirement System and the health |
| 2037 | insurance subsidy to the service credit represented by the |
| 2038 | refunded contributions, except the right to purchase his or her |
| 2039 | prior service credit in accordance with s. 121.081(2). |
| 2040 | (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.- |
| 2041 | (d) The provisions of this subsection apply to retirees, |
| 2042 | as defined in s. 121.4501(2), of the investment plan Public |
| 2043 | Employee Optional Retirement Program, subject to the following |
| 2044 | conditions: |
| 2045 | 1. A retiree The retirees may not be reemployed with an |
| 2046 | employer participating in the Florida Retirement System until |
| 2047 | such person has been retired for 6 calendar months. |
| 2048 | 2. A retiree employed in violation of this subsection and |
| 2049 | an employer that employs or appoints such person are jointly and |
| 2050 | severally liable for reimbursement of any benefits paid to the |
| 2051 | retirement trust fund from which the benefits were paid, |
| 2052 | including the Florida Retirement System Trust Fund and the |
| 2053 | Florida Retirement System Investment Plan Public Employee |
| 2054 | Optional Retirement Program Trust Fund, as appropriate. The |
| 2055 | employer must have a written statement from the retiree that he |
| 2056 | or she is not retired from a state-administered retirement |
| 2057 | system. |
| 2058 | (13) DEFERRED RETIREMENT OPTION PROGRAM.-In general, and |
| 2059 | subject to this section, the Deferred Retirement Option Program, |
| 2060 | hereinafter referred to as DROP, is a program under which an |
| 2061 | eligible member of the Florida Retirement System may elect to |
| 2062 | participate, deferring receipt of retirement benefits while |
| 2063 | continuing employment with his or her Florida Retirement System |
| 2064 | employer. The deferred monthly benefits shall accrue in the |
| 2065 | Florida Retirement System on behalf of the participant, plus |
| 2066 | interest compounded monthly, for the specified period of the |
| 2067 | DROP participation, as provided in paragraph (c). Upon |
| 2068 | termination of employment, the participant shall receive the |
| 2069 | total DROP benefits and begin to receive the previously |
| 2070 | determined normal retirement benefits. Participation in the DROP |
| 2071 | does not guarantee employment for the specified period of DROP. |
| 2072 | Participation in DROP by an eligible member beyond the initial |
| 2073 | 60-month period as authorized in this subsection shall be on an |
| 2074 | annual contractual basis for all participants. |
| 2075 | (a) Eligibility of member to participate in DROP.-All |
| 2076 | active Florida Retirement System members in a regularly |
| 2077 | established position, and all active members of the Teachers' |
| 2078 | Retirement System established in chapter 238 or the State and |
| 2079 | County Officers' and Employees' Retirement System established in |
| 2080 | chapter 122, which are consolidated within the Florida |
| 2081 | Retirement System under s. 121.011, are eligible to elect |
| 2082 | participation in DROP if: |
| 2083 | 1. The member is not a renewed member under s. 121.122 or |
| 2084 | a member of the State Community College System Optional |
| 2085 | Retirement Program under s. 121.051, the Senior Management |
| 2086 | Service Optional Annuity Program under s. 121.055, or the |
| 2087 | optional retirement program for the State University System |
| 2088 | under s. 121.35. |
| 2089 | 2. Except as provided in subparagraph 6., election to |
| 2090 | participate is made within 12 months immediately following the |
| 2091 | date on which the member first reaches normal retirement date, |
| 2092 | or, for a member who reaches normal retirement date based on |
| 2093 | service before he or she reaches age 62, or age 55 for Special |
| 2094 | Risk Class members, election to participate may be deferred to |
| 2095 | the 12 months immediately following the date the member attains |
| 2096 | age 57, or age 52 for Special Risk Class members. A member who |
| 2097 | delays DROP participation during the 12-month period immediately |
| 2098 | following his or her maximum DROP deferral date, except as |
| 2099 | provided in subparagraph 6., loses a month of DROP participation |
| 2100 | for each month delayed. A member who fails to make an election |
| 2101 | within the 12-month limitation period forfeits all rights to |
| 2102 | participate in DROP. The member shall advise his or her employer |
| 2103 | and the division in writing of the date DROP begins. The |
| 2104 | beginning date may be subsequent to the 12-month election period |
| 2105 | but must be within the original 60-month participation period |
| 2106 | provided in subparagraph (b)1. When establishing eligibility of |
| 2107 | the member to participate in DROP, the member may elect to |
| 2108 | include or exclude any optional service credit purchased by the |
| 2109 | member from the total service used to establish the normal |
| 2110 | retirement date. A member who has dual normal retirement dates |
| 2111 | is eligible to elect to participate in DROP after attaining |
| 2112 | normal retirement date in either class. |
| 2113 | 3. The employer of a member electing to participate in |
| 2114 | DROP, or employers if dually employed, shall acknowledge in |
| 2115 | writing to the division the date the member's participation in |
| 2116 | DROP begins and the date the member's employment and DROP |
| 2117 | participation will terminate. |
| 2118 | 4. Simultaneous employment of a participant by additional |
| 2119 | Florida Retirement System employers subsequent to the |
| 2120 | commencement of participation in DROP is permissible if such |
| 2121 | employers acknowledge in writing a DROP termination date no |
| 2122 | later than the participant's existing termination date or the |
| 2123 | maximum participation period provided in subparagraph (b)1. |
| 2124 | 5. A DROP participant may change employers while |
| 2125 | participating in DROP, subject to the following: |
| 2126 | a. A change of employment must take place without a break |
| 2127 | in service so that the member receives salary for each month of |
| 2128 | continuous DROP participation. If a member receives no salary |
| 2129 | during a month, DROP participation shall cease unless the |
| 2130 | employer verifies a continuation of the employment relationship |
| 2131 | for such participant pursuant to s. 121.021(39)(b). |
| 2132 | b. Such participant and new employer shall notify the |
| 2133 | division of the identity of the new employer on forms required |
| 2134 | by the division. |
| 2135 | c. The new employer shall acknowledge, in writing, the |
| 2136 | participant's DROP termination date, which may be extended but |
| 2137 | not beyond the maximum participation period provided in |
| 2138 | subparagraph (b)1., shall acknowledge liability for any |
| 2139 | additional retirement contributions and interest required if the |
| 2140 | participant fails to timely terminate employment, and is subject |
| 2141 | to the adjustment required in sub-subparagraph (c)5.d. |
| 2142 | 6. Effective July 1, 2001, for instructional personnel as |
| 2143 | defined in s. 1012.01(2), election to participate in DROP may be |
| 2144 | made at any time following the date on which the member first |
| 2145 | reaches normal retirement date. The member shall advise his or |
| 2146 | her employer and the division in writing of the date on which |
| 2147 | DROP begins. When establishing eligibility of the member to |
| 2148 | participate in DROP for the 60-month participation period |
| 2149 | provided in subparagraph (b)1., the member may elect to include |
| 2150 | or exclude any optional service credit purchased by the member |
| 2151 | from the total service used to establish the normal retirement |
| 2152 | date. A member who has dual normal retirement dates is eligible |
| 2153 | to elect to participate in either class. |
| 2154 | 7. The effective date of DROP participation of a DROP |
| 2155 | participant is prior to July 1, 2011. |
| 2156 | (l) Closure of program to new participants.-Effective July |
| 2157 | 1, 2011, DROP is closed to new participants. Only members whose |
| 2158 | DROP effective date is prior to July 1, 2011, may participate in |
| 2159 | DROP. |
| 2160 | Section 13. Subsection (1) of section 121.121, Florida |
| 2161 | Statutes, is amended to read: |
| 2162 | 121.121 Authorized leaves of absence.- |
| 2163 | (1) A member may purchase creditable service for up to 2 |
| 2164 | work years of authorized leaves of absence, including any leaves |
| 2165 | of absence covered under the Family Medical Leave Act, if: |
| 2166 | (a) The member has completed a minimum of 6 years of |
| 2167 | creditable service, excluding periods for which a leave of |
| 2168 | absence was authorized; |
| 2169 | (b) The leave of absence is authorized in writing by the |
| 2170 | employer of the member and approved by the administrator; |
| 2171 | (c) The member returns to active employment performing |
| 2172 | service with a Florida Retirement System employer in a regularly |
| 2173 | established position immediately upon termination of the leave |
| 2174 | of absence and remains on the employer's payroll for 1 calendar |
| 2175 | month, except that a member who retires on disability while on a |
| 2176 | medical leave of absence may shall not be required to return to |
| 2177 | employment. A member whose work year is less than 12 months and |
| 2178 | whose leave of absence terminates between school years is |
| 2179 | eligible to receive credit for the leave of absence if as long |
| 2180 | as he or she returns to the employment of his or her employer at |
| 2181 | the beginning of the next school year and remains on the |
| 2182 | employer's payroll for 1 calendar month; and |
| 2183 | (d) The member makes the required contributions for |
| 2184 | service credit during the leave of absence, which shall be 8 |
| 2185 | percent until January 1, 1975, and 9 percent thereafter of his |
| 2186 | or her rate of monthly compensation in effect immediately prior |
| 2187 | to the commencement of such leave for each month of such period, |
| 2188 | plus 4 percent interest until July 1, 1975, and 6.5 percent |
| 2189 | interest thereafter on such contributions, compounded annually |
| 2190 | each June 30 from the due date of the contribution to date of |
| 2191 | payment. Effective July 1, 1980, any leave of absence purchased |
| 2192 | pursuant to this section shall be at the contribution rates |
| 2193 | specified in s. 121.071 or s. 121.71 in effect at the time the |
| 2194 | leave is granted for the class of membership from which the |
| 2195 | leave of absence was granted; however, any member who purchased |
| 2196 | leave-of-absence credit prior to July 1, 1980, for a leave of |
| 2197 | absence from a position in a class other than the regular |
| 2198 | membership class, may pay the appropriate additional |
| 2199 | contributions plus compound interest thereon and receive |
| 2200 | creditable service for such leave of absence in the membership |
| 2201 | class from which the member was granted the leave of absence. |
| 2202 |
|
| 2203 | Effective July 1, 2011, any leave of absence purchased by the |
| 2204 | member pursuant to this section shall be at the employee and |
| 2205 | employer contribution rates specified in s. 121.71 in effect |
| 2206 | during the leave for the class of membership from which the |
| 2207 | leave of absence was granted. |
| 2208 | Section 14. Section 121.125, Florida Statutes, is amended |
| 2209 | to read: |
| 2210 | 121.125 Credit for workers' compensation payment periods.- |
| 2211 | A member of the retirement system created by this chapter who |
| 2212 | has been eligible or becomes eligible to receive workers' |
| 2213 | compensation payments for an injury or illness occurring during |
| 2214 | his or her employment while a member of any state retirement |
| 2215 | system shall, upon return to active employment with a covered |
| 2216 | employer for 1 calendar month or upon approval for disability |
| 2217 | retirement in accordance with s. 121.091(4), receive full |
| 2218 | retirement credit for the period prior to such return to active |
| 2219 | employment or disability retirement for which the workers' |
| 2220 | compensation payments were received. However, a no member may |
| 2221 | not receive retirement credit for any such period occurring |
| 2222 | after the earlier of the date of maximum medical improvement as |
| 2223 | defined in s. 440.02 or the date termination has occurred as |
| 2224 | defined in s. 121.021(39). The employer of record at the time of |
| 2225 | the worker's compensation injury or illness shall make the |
| 2226 | required employee and employer retirement contributions based on |
| 2227 | the member's rate of monthly compensation immediately prior to |
| 2228 | his or her receiving workers' compensation payments for |
| 2229 | retirement credit received by the member. The employer of record |
| 2230 | at the time of the workers' compensation injury or illness shall |
| 2231 | be assessed by the division a penalty of 1 percent of the |
| 2232 | contributions on all contributions not paid on the first payroll |
| 2233 | report after the member becomes eligible to receive credit. This |
| 2234 | delinquent assessment may not be waived. |
| 2235 | Section 15. Section 121.161, Florida Statutes, is |
| 2236 | reenacted to read: |
| 2237 | 121.161 References to other laws include amendments.- |
| 2238 | References in this chapter to state or federal laws or |
| 2239 | agreements are intended to include such laws as they now exist |
| 2240 | or may hereafter be amended. |
| 2241 | Section 16. Paragraphs (g) and (i) of subsection (3), |
| 2242 | paragraph (a) of subsection (4), and subsection (5) of section |
| 2243 | 121.35, Florida Statutes, are amended to read: |
| 2244 | 121.35 Optional retirement program for the State |
| 2245 | University System.- |
| 2246 | (3) ELECTION OF OPTIONAL PROGRAM.- |
| 2247 | (g) An eligible employee who is a member of the Florida |
| 2248 | Retirement System at the time of election to participate in the |
| 2249 | optional retirement program shall retain all retirement service |
| 2250 | credit earned under the Florida Retirement System, at the rate |
| 2251 | earned. No Additional service credit in the Florida Retirement |
| 2252 | System may not shall be earned while the employee participates |
| 2253 | in the optional program, and nor shall the employee is not be |
| 2254 | eligible for disability retirement under the Florida Retirement |
| 2255 | System. An eligible employee may transfer from the Florida |
| 2256 | Retirement System to his or her accounts under the State |
| 2257 | University System Optional Retirement Program a sum representing |
| 2258 | the present value of the employee's accumulated benefit |
| 2259 | obligation under the defined benefit program of the Florida |
| 2260 | Retirement System pension plan for any service credit accrued |
| 2261 | from the employee's first eligible transfer date to the optional |
| 2262 | retirement program through the actual date of such transfer, if |
| 2263 | such service credit was earned in the period from July 1, 1984, |
| 2264 | through December 31, 1992. The present value of the employee's |
| 2265 | accumulated benefit obligation shall be calculated as described |
| 2266 | in s. 121.4501(3)(c)2. Upon such transfer, all such service |
| 2267 | credit previously earned under the defined benefit program of |
| 2268 | the Florida Retirement System pension plan during this period is |
| 2269 | shall be nullified for purposes of entitlement to a future |
| 2270 | benefit under the defined benefit program of the Florida |
| 2271 | Retirement System pension plan. |
| 2272 | (i) Effective January 1, 2008, through December 31, 2008, |
| 2273 | except for an employee who is a mandatory participant of the |
| 2274 | State University System Optional Retirement Program, an employee |
| 2275 | who has elected to participate in the State University System |
| 2276 | Optional Retirement Program shall have one opportunity, at the |
| 2277 | employee's discretion, to choose to transfer from this program |
| 2278 | to the defined benefit program of the Florida Retirement System |
| 2279 | pension plan or to the investment plan Public Employee Optional |
| 2280 | Retirement Program, subject to the terms of the applicable |
| 2281 | contracts of the State University System Optional Retirement |
| 2282 | Program. |
| 2283 | 1. If the employee chooses to move to the investment plan |
| 2284 | Public Employee Optional Retirement Program, any contributions, |
| 2285 | interest, and earnings creditable to the employee under the |
| 2286 | State University System Optional Retirement Program must shall |
| 2287 | be retained by the employee in the State University System |
| 2288 | Optional Retirement Program, and the applicable provisions of s. |
| 2289 | 121.4501(4) shall govern the election. |
| 2290 | 2. If the employee chooses to move to the pension plan |
| 2291 | defined benefit program of the Florida Retirement System, the |
| 2292 | employee shall receive service credit equal to his or her years |
| 2293 | of service under the State University System Optional Retirement |
| 2294 | Program. |
| 2295 | a. The cost for such credit must be in shall be an amount |
| 2296 | representing the actuarial accrued liability for the affected |
| 2297 | period of service. The cost must shall be calculated using the |
| 2298 | discount rate and other relevant actuarial assumptions that were |
| 2299 | used to value the Florida Retirement System pension defined |
| 2300 | benefit plan liabilities in the most recent actuarial valuation. |
| 2301 | The calculation must shall include any service already |
| 2302 | maintained under the pension defined benefit plan in addition to |
| 2303 | the years under the State University System Optional Retirement |
| 2304 | Program. The actuarial accrued liability of any service already |
| 2305 | maintained under the pension defined benefit plan must shall be |
| 2306 | applied as a credit to total cost resulting from the |
| 2307 | calculation. The division must shall ensure that the transfer |
| 2308 | sum is prepared using a formula and methodology certified by an |
| 2309 | enrolled actuary. |
| 2310 | b. The employee must transfer from his or her State |
| 2311 | University System Optional Retirement Program account, and from |
| 2312 | other employee moneys as necessary, a sum representing the |
| 2313 | actuarial accrued liability immediately following the time of |
| 2314 | such movement, determined assuming that attained service equals |
| 2315 | the sum of service in the pension plan defined benefit program |
| 2316 | and service in the State University System Optional Retirement |
| 2317 | Program. |
| 2318 | (4) CONTRIBUTIONS.- |
| 2319 | (a) Through June 30, 2001, each employer shall contribute |
| 2320 | on behalf of each participant in the optional retirement program |
| 2321 | an amount equal to the normal cost portion of the employer |
| 2322 | retirement contribution which would be required if the |
| 2323 | participant were a regular member of the Florida Retirement |
| 2324 | System pension plan defined benefit program, plus the portion of |
| 2325 | the contribution rate required in s. 112.363(8) that would |
| 2326 | otherwise be assigned to the Retiree Health Insurance Subsidy |
| 2327 | Trust Fund. Effective July 1, 2001, each employer shall |
| 2328 | contribute on behalf of each participant in the optional program |
| 2329 | an amount equal to 10.43 percent of the participant's gross |
| 2330 | monthly compensation. The department shall deduct an amount |
| 2331 | approved by the Legislature to provide for the administration of |
| 2332 | this program. The payment of the contributions to the optional |
| 2333 | program which is required by this paragraph for each participant |
| 2334 | shall be made by the employer to the department, which shall |
| 2335 | forward the contributions to the designated company or companies |
| 2336 | contracting for payment of benefits for the participant under |
| 2337 | the program. However, such contributions paid on behalf of an |
| 2338 | employee described in paragraph (3)(c) shall not be forwarded to |
| 2339 | a company and shall not begin to accrue interest until the |
| 2340 | employee has executed a contract and notified the department. |
| 2341 | (5) BENEFITS.- |
| 2342 | (a) Benefits are payable under the optional retirement |
| 2343 | program only to vested participants in the program, or their |
| 2344 | beneficiaries as designated by the participant in the contract |
| 2345 | with a provider company, and such benefits shall be paid only by |
| 2346 | the designated company in accordance with s. 403(b) of the |
| 2347 | Internal Revenue Code and the terms of the annuity contract or |
| 2348 | contracts applicable to the participant. Benefits accrue in |
| 2349 | individual accounts that are participant-directed, portable, and |
| 2350 | funded by employer contributions and the earnings thereon. The |
| 2351 | participant must be terminated for 3 calendar months from all |
| 2352 | employment relationships with all Florida Retirement System |
| 2353 | employers, as provided in s. 121.021(39), to begin receiving the |
| 2354 | employer-funded benefit. Benefits funded by employer |
| 2355 | contributions are payable in accordance with the following terms |
| 2356 | and conditions: |
| 2357 | 1. Benefits shall be paid only to a participant, to his or |
| 2358 | her beneficiaries, or to his or her estate, as designated by the |
| 2359 | participant. |
| 2360 | 2. Benefits shall be paid by the provider company or |
| 2361 | companies in accordance with the law, the provisions of the |
| 2362 | contract, and any applicable department rule or policy. |
| 2363 | 3. In the event of a participant's death, moneys |
| 2364 | accumulated by, or on behalf of, the participant, less |
| 2365 | withholding taxes remitted to the Internal Revenue Service, if |
| 2366 | any, shall be distributed to the participant's designated |
| 2367 | beneficiary or beneficiaries, or to the participant's estate, as |
| 2368 | if the participant retired on the date of death, as provided in |
| 2369 | paragraph (d) (c). No other death benefits are available to |
| 2370 | survivors of participants under the optional retirement program |
| 2371 | except for such benefits, or coverage for such benefits, as are |
| 2372 | separately afforded by the employer, at the employer's |
| 2373 | discretion. |
| 2374 | (b) Under the optional retirement program, benefits are |
| 2375 | not payable for employee hardships, unforeseeable emergencies, |
| 2376 | loans, medical expenses, educational expenses, purchase of a |
| 2377 | principal residence, payments necessary to prevent eviction or |
| 2378 | foreclosure on an employee's principal residence, or any other |
| 2379 | reason prior to termination from all employment relationships |
| 2380 | with participating employers, as provided in s. 121.021(39). |
| 2381 | (c)(b) Upon receipt by the provider company of a properly |
| 2382 | executed application for distribution of benefits, the total |
| 2383 | accumulated benefit shall be payable to the participant, as: |
| 2384 | 1. A lump-sum distribution to the participant; |
| 2385 | 2. A lump-sum direct rollover distribution whereby all |
| 2386 | accrued benefits, plus interest and investment earnings, are |
| 2387 | paid from the participant's account directly to an eligible |
| 2388 | retirement plan, as defined in s. 402(c)(8)(B) of the Internal |
| 2389 | Revenue Code, on behalf of the participant; |
| 2390 | 3. Periodic distributions; |
| 2391 | 4. A partial lump-sum payment whereby a portion of the |
| 2392 | accrued benefit is paid to the participant and the remaining |
| 2393 | amount is transferred to an eligible retirement plan, as defined |
| 2394 | in s. 402(c)(8)(B) of the Internal Revenue Code, on behalf of |
| 2395 | the participant; or |
| 2396 | 5. Such other distribution options as are provided for in |
| 2397 | the participant's optional retirement program contract. |
| 2398 | (d)(c) Survivor benefits shall be payable as: |
| 2399 | 1. A lump-sum distribution payable to the beneficiaries or |
| 2400 | to the deceased participant's estate; |
| 2401 | 2. An eligible rollover distribution on behalf of the |
| 2402 | surviving spouse of a deceased participant, whereby all accrued |
| 2403 | benefits, plus interest and investment earnings, are paid from |
| 2404 | the deceased participant's account directly to an eligible |
| 2405 | retirement plan, as described in s. 402(c)(8)(B) of the Internal |
| 2406 | Revenue Code, on behalf of the surviving spouse; |
| 2407 | 3. Such other distribution options as are provided for in |
| 2408 | the participant's optional retirement program contract; or |
| 2409 | 4. A partial lump-sum payment whereby a portion of the |
| 2410 | accrued benefit is paid to the deceased participant's surviving |
| 2411 | spouse or other designated beneficiaries, less withholding taxes |
| 2412 | remitted to the Internal Revenue Service, if any, and the |
| 2413 | remaining amount is transferred directly to an eligible |
| 2414 | retirement plan, as described in s. 402(c)(8)(B) of the Internal |
| 2415 | Revenue Code, on behalf of the surviving spouse. The proportions |
| 2416 | must be specified by the participant or the surviving |
| 2417 | beneficiary. |
| 2418 |
|
| 2419 | This paragraph does not abrogate other applicable provisions of |
| 2420 | state or federal law providing payment of death benefits. |
| 2421 | (e)(d) The benefits payable to any person under the |
| 2422 | optional retirement program, and any contribution accumulated |
| 2423 | under such program, shall not be subject to assignment, |
| 2424 | execution, or attachment or to any legal process whatsoever. |
| 2425 | (f)(e) A participant who chooses to receive his or her |
| 2426 | benefits must be terminated for 3 calendar months to be eligible |
| 2427 | to receive benefits funded by employer contributions. A |
| 2428 | participant upon termination as defined in s. 121.021 must |
| 2429 | notify the provider company of the date he or she wishes |
| 2430 | benefits funded by required employee and employer contributions |
| 2431 | to begin and must meet termination as defined in s. 121.021 |
| 2432 | after the initial benefit payment or distribution. Benefits may |
| 2433 | be deferred until the participant chooses to make such |
| 2434 | application. |
| 2435 | (g)(f) Benefits funded by the participant's voluntary |
| 2436 | personal contributions may be paid out at any time and in any |
| 2437 | form within the limits provided in the contract between the |
| 2438 | participant and his or her provider company. The participant |
| 2439 | shall notify the provider company regarding the date and |
| 2440 | provisions under which he or she wants to receive the employee- |
| 2441 | funded portion of the plan. |
| 2442 | (h)(g) For purposes of this section, "retiree" means a |
| 2443 | former participant of the optional retirement program who has |
| 2444 | terminated employment and has taken a distribution as provided |
| 2445 | in this subsection, except for a mandatory distribution of a de |
| 2446 | minimis account authorized by the department. |
| 2447 | Section 17. Section 121.4501, Florida Statutes, is amended |
| 2448 | to read: |
| 2449 | 121.4501 Florida Retirement System Investment Plan Public |
| 2450 | Employee Optional Retirement Program.- |
| 2451 | (1) The Trustees of the State Board of Administration |
| 2452 | shall establish a an optional defined contribution retirement |
| 2453 | program called the "Florida Retirement System Investment Plan" |
| 2454 | or "investment plan" for members of the Florida Retirement |
| 2455 | System under which retirement benefits will be provided for |
| 2456 | eligible employees who elect to participate in the program. The |
| 2457 | retirement benefits to be provided for or on behalf of |
| 2458 | participants in such optional retirement program shall be |
| 2459 | provided through member-directed employee-directed investments, |
| 2460 | in accordance with s. 401(a) of the Internal Revenue Code and |
| 2461 | its related regulations. The employer and members employers |
| 2462 | shall make contributions contribute, as provided in this section |
| 2463 | and, ss. 121.571, and 121.71, to the Florida Retirement System |
| 2464 | Investment Plan Public Employee Optional Retirement Program |
| 2465 | Trust Fund toward the funding of such optional benefits. |
| 2466 | (2) DEFINITIONS.-As used in this part, the term: |
| 2467 | (a) "Approved provider" or "provider" means a private |
| 2468 | sector company that is selected and approved by the state board |
| 2469 | to offer one or more investment products or services to the |
| 2470 | investment plan optional retirement program. The term includes a |
| 2471 | bundled provider that offers members participants a range of |
| 2472 | individually allocated or unallocated investment products and |
| 2473 | may offer a range of administrative and customer services, which |
| 2474 | may include accounting and administration of individual member |
| 2475 | participant benefits and contributions; individual member |
| 2476 | participant recordkeeping; asset purchase, control, and |
| 2477 | safekeeping; direct execution of the member's participant's |
| 2478 | instructions as to asset and contribution allocation; |
| 2479 | calculation of daily net asset values; direct access to member |
| 2480 | participant account information; periodic reporting to members |
| 2481 | participants, at least quarterly, on account balances and |
| 2482 | transactions; guidance, advice, and allocation services directly |
| 2483 | relating to the provider's own investment options or products, |
| 2484 | but only if the bundled provider complies with the standard of |
| 2485 | care of s. 404(a)(1)(A-B) of the Employee Retirement Income |
| 2486 | Security Act of 1974 (ERISA), and if providing such guidance, |
| 2487 | advice, or allocation services does not constitute a prohibited |
| 2488 | transaction under s. 4975(c)(1) of the Internal Revenue Code or |
| 2489 | s. 406 of ERISA, notwithstanding that such prohibited |
| 2490 | transaction provisions do not apply to the optional retirement |
| 2491 | program; a broad array of distribution options; asset |
| 2492 | allocation; and retirement counseling and education. Private |
| 2493 | sector companies include investment management companies, |
| 2494 | insurance companies, depositories, and mutual fund companies. |
| 2495 | (b) "Average monthly compensation" means one-twelfth of |
| 2496 | average final compensation as defined in s. 121.021. |
| 2497 | (c) "Covered employment" means employment in a regularly |
| 2498 | established position as defined in s. 121.021. |
| 2499 | (d)(e) "Division" means the Division of Retirement within |
| 2500 | the department. |
| 2501 | (e)(f) "Electronic means" means by telephone, if the |
| 2502 | required information is received on a recorded line, or through |
| 2503 | Internet access, if the required information is captured online. |
| 2504 | (f)(g) "Eligible employee" means an officer or employee, |
| 2505 | as defined in s. 121.021, who: |
| 2506 | 1. Is a member of, or is eligible for membership in, the |
| 2507 | Florida Retirement System, including any renewed member of the |
| 2508 | Florida Retirement System initially enrolled before July 1, |
| 2509 | 2010; or |
| 2510 | 2. Participates in, or is eligible to participate in, the |
| 2511 | Senior Management Service Optional Annuity Program as |
| 2512 | established under s. 121.055(6), the State Community College |
| 2513 | System Optional Retirement Program as established under s. |
| 2514 | 121.051(2)(c), or the State University System Optional |
| 2515 | Retirement Program established under s. 121.35. |
| 2516 |
|
| 2517 | The term does not include any member participating in the |
| 2518 | Deferred Retirement Option Program established under s. |
| 2519 | 121.091(13), a retiree of a state-administered retirement system |
| 2520 | initially reemployed on or after July 1, 2010, or a mandatory |
| 2521 | participant of the State University System Optional Retirement |
| 2522 | Program established under s. 121.35. |
| 2523 | (g)(h) "Employer" means an employer, as defined in s. |
| 2524 | 121.021, of an eligible employee. |
| 2525 | (h)(i) "Florida Retirement System Investment Plan" or |
| 2526 | "investment plan" "Optional retirement program" or "optional |
| 2527 | program" means the defined contribution program Public Employee |
| 2528 | Optional Retirement Program established under this part. |
| 2529 | (i)(d) "Florida Retirement System Pension Plan" or |
| 2530 | "pension plan" means the defined benefit program of the Florida |
| 2531 | Retirement System administered under part I of this chapter. |
| 2532 | "Defined benefit program" means the defined benefit program of |
| 2533 | the Florida Retirement System administered under part I of this |
| 2534 | chapter. |
| 2535 | (j) "Participant," "member," or "employee" means an |
| 2536 | eligible employee who enrolls in the investment plan optional |
| 2537 | program as provided in subsection (4), or a terminated Deferred |
| 2538 | Retirement Option Program member participant as described in |
| 2539 | subsection (21), or a beneficiary or alternate payee. |
| 2540 | (k) "Participant contributions," "member contributions," |
| 2541 | or "employee contributions" mean the sum of all amounts deducted |
| 2542 | from the salary of a member by his or her employer in accordance |
| 2543 | with s. 121.71(2) and credited to his or her individual account |
| 2544 | in the investment plan, plus any earnings on such amounts and |
| 2545 | any contributions specified in paragraph (5)(e). |
| 2546 | (l)(k) "Retiree" means a former member participant of the |
| 2547 | investment plan optional retirement program who has terminated |
| 2548 | employment and has taken any a distribution of vested employee |
| 2549 | or employer contributions as provided in s. 121.591, except for |
| 2550 | a mandatory distribution of a de minimis account authorized by |
| 2551 | the state board or a minimum required distribution provided by |
| 2552 | s. 401(a)(9) of the Internal Revenue Code. |
| 2553 | (m)(l) "Vested" or "vesting" means the guarantee that a |
| 2554 | member participant is eligible to receive a retirement benefit |
| 2555 | upon completion of the required years of service under the |
| 2556 | investment plan optional retirement program. |
| 2557 | (3) ELIGIBILITY; RETIREMENT SERVICE CREDIT; TRANSFER OF |
| 2558 | BENEFITS.- |
| 2559 | (a) Participation in the Public Employee Optional |
| 2560 | Retirement Program is limited to eligible employees. |
| 2561 | Participation in the optional retirement program is in lieu of |
| 2562 | participation in the defined benefit program of the Florida |
| 2563 | Retirement System. |
| 2564 | (a)(b) An eligible employee who is employed in a regularly |
| 2565 | established position by a state employer on June 1, 2002; by a |
| 2566 | district school board employer on September 1, 2002; or by a |
| 2567 | local employer on December 1, 2002, and who is a member of the |
| 2568 | pension plan defined benefit retirement program of the Florida |
| 2569 | Retirement System at the time of his or her election to |
| 2570 | participate in the investment plan Public Employee Optional |
| 2571 | Retirement Program shall retain all retirement service credit |
| 2572 | earned under the pension plan defined benefit retirement program |
| 2573 | of the Florida Retirement System as credited under the system |
| 2574 | and is shall be entitled to a deferred benefit upon termination, |
| 2575 | if eligible under the system. However, election to participate |
| 2576 | in the investment plan Public Employee Optional Retirement |
| 2577 | Program terminates the active membership of the employee in the |
| 2578 | pension plan defined benefit program of the Florida Retirement |
| 2579 | System, and the service of a member participant in the |
| 2580 | investment plan is Public Employee Optional Retirement Program |
| 2581 | shall not be creditable under the pension plan defined benefit |
| 2582 | retirement program of the Florida Retirement System for purposes |
| 2583 | of benefit accrual but is creditable shall be credited for |
| 2584 | purposes of vesting. |
| 2585 | (b)(c)1. Notwithstanding paragraph (a), an (b), each |
| 2586 | eligible employee who elects to participate in the investment |
| 2587 | plan Public Employee Optional Retirement Program and establishes |
| 2588 | one or more individual member participant accounts under the |
| 2589 | optional program may elect to transfer to the investment plan |
| 2590 | optional program a sum representing the present value of the |
| 2591 | employee's accumulated benefit obligation under the pension plan |
| 2592 | defined benefit retirement program of the Florida Retirement |
| 2593 | System. Upon such transfer, all service credit previously earned |
| 2594 | under the pension plan is defined benefit program of the Florida |
| 2595 | Retirement System shall be nullified for purposes of entitlement |
| 2596 | to a future benefit under the pension plan defined benefit |
| 2597 | program of the Florida Retirement System. A member may not |
| 2598 | transfer participant is precluded from transferring the |
| 2599 | accumulated benefit obligation balance from the pension plan |
| 2600 | after the time defined benefit program upon the expiration of |
| 2601 | the period for enrolling afforded to enroll in the investment |
| 2602 | plan has expired optional program. |
| 2603 | 1.2. For purposes of this subsection, the present value of |
| 2604 | the member's accumulated benefit obligation is based upon the |
| 2605 | member's estimated creditable service and estimated average |
| 2606 | final compensation under the pension plan defined benefit |
| 2607 | program, subject to recomputation under subparagraph 2. 3. For |
| 2608 | state employees enrolling under subparagraph (4)(a)1., initial |
| 2609 | estimates shall will be based upon creditable service and |
| 2610 | average final compensation as of midnight on June 30, 2002; for |
| 2611 | district school board employees enrolling under subparagraph |
| 2612 | (4)(b)1., initial estimates shall will be based upon creditable |
| 2613 | service and average final compensation as of midnight on |
| 2614 | September 30, 2002; and for local government employees enrolling |
| 2615 | under subparagraph (4)(c)1., initial estimates shall will be |
| 2616 | based upon creditable service and average final compensation as |
| 2617 | of midnight on December 31, 2002. The dates respectively |
| 2618 | specified are above shall be construed as the "estimate date" |
| 2619 | for these employees. The actuarial present value of the |
| 2620 | employee's accumulated benefit obligation shall be based on the |
| 2621 | following: |
| 2622 | a. The discount rate and other relevant actuarial |
| 2623 | assumptions used to value the Florida Retirement System Trust |
| 2624 | Fund at the time the amount to be transferred is determined, |
| 2625 | consistent with the factors provided in sub-subparagraphs b. and |
| 2626 | c. |
| 2627 | b. A benefit commencement age, based on the member's |
| 2628 | estimated creditable service as of the estimate date. |
| 2629 | (I) For a member initially enrolled before July 1, 2011, |
| 2630 | the benefit commencement age is shall be the younger of the |
| 2631 | following, but may shall not be younger than the member's age as |
| 2632 | of the estimate date: |
| 2633 | (A)(I) Age 62; or |
| 2634 | (B)(II) The age the member would attain if the member |
| 2635 | completed 30 years of service with an employer, assuming the |
| 2636 | member worked continuously from the estimate date, and |
| 2637 | disregarding any vesting requirement that would otherwise apply |
| 2638 | under the pension plan defined benefit program of the Florida |
| 2639 | Retirement System. |
| 2640 | (II) For a member initially enrolled on or after July 1, |
| 2641 | 2011, the benefit commencement age is the younger of the |
| 2642 | following, but may not be younger than the member's age as of |
| 2643 | the estimate date: |
| 2644 | (A) Age 65; or |
| 2645 | (B) The age the member would attain if the member |
| 2646 | completed 33 years of service with an employer, assuming the |
| 2647 | member worked continuously from the estimate date, and |
| 2648 | disregarding any vesting requirement that would otherwise apply |
| 2649 | under the pension plan. |
| 2650 | c.(I) For members of the Special Risk Class and for |
| 2651 | members of the Special Risk Administrative Support Class |
| 2652 | entitled to retain the special risk normal retirement date, |
| 2653 | initially enrolled before July 1, 2011, the benefit commencement |
| 2654 | age is shall be the younger of the following, but may shall not |
| 2655 | be younger than the member's age as of the estimate date: |
| 2656 | (A)(I) Age 55; or |
| 2657 | (B)(II) The age the member would attain if the member |
| 2658 | completed 25 years of service with an employer, assuming the |
| 2659 | member worked continuously from the estimate date, and |
| 2660 | disregarding any vesting requirement that would otherwise apply |
| 2661 | under the pension plan defined benefit program of the Florida |
| 2662 | Retirement System. |
| 2663 | (II) For members of the Special Risk Class and for members |
| 2664 | of the Special Risk Administrative Support Class entitled to |
| 2665 | retain the special risk normal retirement date, initially |
| 2666 | enrolled on or after July 1, 2011, the benefit commencement age |
| 2667 | is the younger of the following, but may not be younger than the |
| 2668 | member's age as of the estimate date: |
| 2669 | (A) Age 60; or |
| 2670 | (B) The age the member would attain if the member |
| 2671 | completed 30 years of service with an employer, assuming the |
| 2672 | member worked continuously from the estimate date, and |
| 2673 | disregarding any vesting requirement that would otherwise apply |
| 2674 | under the pension plan. |
| 2675 | d. The calculation must shall disregard vesting |
| 2676 | requirements and early retirement reduction factors that would |
| 2677 | otherwise apply under the pension plan defined benefit |
| 2678 | retirement program. |
| 2679 | 2.3. For each member participant who elects to transfer |
| 2680 | moneys from the pension plan defined benefit program to his or |
| 2681 | her account in the investment plan optional program, the |
| 2682 | division shall recompute the amount transferred under |
| 2683 | subparagraph 1. within 2. not later than 60 days after the |
| 2684 | actual transfer of funds based upon the member's participant's |
| 2685 | actual creditable service and actual final average compensation |
| 2686 | as of the initial date of participation in the investment plan |
| 2687 | optional program. If the recomputed amount differs from the |
| 2688 | amount transferred under subparagraph 2. by $10 or more, the |
| 2689 | division shall: |
| 2690 | a. Transfer, or cause to be transferred, from the Florida |
| 2691 | Retirement System Trust Fund to the member's participant's |
| 2692 | account in the optional program the excess, if any, of the |
| 2693 | recomputed amount over the previously transferred amount |
| 2694 | together with interest from the initial date of transfer to the |
| 2695 | date of transfer under this subparagraph, based upon the |
| 2696 | effective annual interest equal to the assumed return on the |
| 2697 | actuarial investment which was used in the most recent actuarial |
| 2698 | valuation of the system, compounded annually. |
| 2699 | b. Transfer, or cause to be transferred, from the member's |
| 2700 | participant's account to the Florida Retirement System Trust |
| 2701 | Fund the excess, if any, of the previously transferred amount |
| 2702 | over the recomputed amount, together with interest from the |
| 2703 | initial date of transfer to the date of transfer under this |
| 2704 | subparagraph, based upon 6 percent effective annual interest, |
| 2705 | compounded annually, pro rata based on the member's |
| 2706 | participant's allocation plan. |
| 2707 | 3. If contribution adjustments are made as a result of |
| 2708 | employer errors or corrections, including plan corrections, |
| 2709 | following recomputation of the amount transferred under |
| 2710 | subparagraph 1., the member is entitled to the additional |
| 2711 | contributions or is responsible for returning any excess |
| 2712 | contributions resulting from the correction. However, any return |
| 2713 | of such erroneous excess pretax contribution by the plan must be |
| 2714 | made within the period allowed by the Internal Revenue Service. |
| 2715 | The present value of the member's accumulated benefit obligation |
| 2716 | shall not be recalculated. |
| 2717 | 4. As directed by the member participant, the state board |
| 2718 | shall transfer or cause to be transferred the appropriate |
| 2719 | amounts to the designated accounts within. The board shall |
| 2720 | establish transfer procedures by rule, but the actual transfer |
| 2721 | shall not be later than 30 days after the effective date of the |
| 2722 | member's participation in the investment plan optional program |
| 2723 | unless the major financial markets for securities available for |
| 2724 | a transfer are seriously disrupted by an unforeseen event that |
| 2725 | which also causes the suspension of trading on any national |
| 2726 | securities exchange in the country where the securities were |
| 2727 | issued. In that event, the such 30-day period of time may be |
| 2728 | extended by a resolution of the state board trustees. Transfers |
| 2729 | are not commissionable or subject to other fees and may be in |
| 2730 | the form of securities or cash, as determined by the state |
| 2731 | board. Such securities are shall be valued as of the date of |
| 2732 | receipt in the member's participant's account. |
| 2733 | 5. If the state board or the division receives |
| 2734 | notification from the United States Internal Revenue Service |
| 2735 | that this paragraph or any portion of this paragraph will cause |
| 2736 | the retirement system, or a portion thereof, to be disqualified |
| 2737 | for tax purposes under the Internal Revenue Code, then the |
| 2738 | portion that will cause the disqualification does not apply. |
| 2739 | Upon such notice, the state board and the division shall notify |
| 2740 | the presiding officers of the Legislature. |
| 2741 | (4) PARTICIPATION; ENROLLMENT.- |
| 2742 | (a)1. With respect to an eligible employee who is employed |
| 2743 | in a regularly established position on June 1, 2002, by a state |
| 2744 | employer: |
| 2745 | a. Any such employee may elect to participate in the |
| 2746 | investment plan Public Employee Optional Retirement Program in |
| 2747 | lieu of retaining his or her membership in the pension plan |
| 2748 | defined benefit program of the Florida Retirement System. The |
| 2749 | election must be made in writing or by electronic means and must |
| 2750 | be filed with the third-party administrator by August 31, 2002, |
| 2751 | or, in the case of an active employee who is on a leave of |
| 2752 | absence on April 1, 2002, by the last business day of the 5th |
| 2753 | month following the month the leave of absence concludes. This |
| 2754 | election is irrevocable, except as provided in paragraph (g) |
| 2755 | (e). Upon making such election, the employee shall be enrolled |
| 2756 | as a member participant of the investment plan Public Employee |
| 2757 | Optional Retirement Program, the employee's membership in the |
| 2758 | Florida Retirement System shall be governed by the provisions of |
| 2759 | this part, and the employee's membership in the pension plan |
| 2760 | defined benefit program of the Florida Retirement System shall |
| 2761 | terminate. The employee's enrollment in the investment plan |
| 2762 | Public Employee Optional Retirement Program shall be effective |
| 2763 | the first day of the month for which a full month's employer |
| 2764 | contribution is made to the investment plan optional program. |
| 2765 | b. Any such employee who fails to elect to participate in |
| 2766 | the investment plan Public Employee Optional Retirement Program |
| 2767 | within the prescribed time period is deemed to have elected to |
| 2768 | retain membership in the pension plan defined benefit program of |
| 2769 | the Florida Retirement System, and the employee's option to |
| 2770 | elect to participate in the investment plan optional program is |
| 2771 | forfeited. |
| 2772 | 2. With respect to employees who become eligible to |
| 2773 | participate in the investment plan Public Employee Optional |
| 2774 | Retirement Program by reason of employment in a regularly |
| 2775 | established position with a state employer commencing after |
| 2776 | April 1, 2002: |
| 2777 | a. Any such employee shall, by default, be enrolled in the |
| 2778 | pension plan defined benefit retirement program of the Florida |
| 2779 | Retirement System at the commencement of employment, and may, by |
| 2780 | the last business day of the 5th month following the employee's |
| 2781 | month of hire, elect to participate in the investment plan |
| 2782 | Public Employee Optional Retirement Program. The employee's |
| 2783 | election must be made in writing or by electronic means and must |
| 2784 | be filed with the third-party administrator. The election to |
| 2785 | participate in the investment plan optional program is |
| 2786 | irrevocable, except as provided in paragraph (g) (e). |
| 2787 | b. If the employee files such election within the |
| 2788 | prescribed time period, enrollment in the investment plan is |
| 2789 | optional program shall be effective on the first day of |
| 2790 | employment. The employer retirement contributions paid through |
| 2791 | the month of the employee plan change shall be transferred to |
| 2792 | the investment optional program, and, effective the first day of |
| 2793 | the next month, the employer and participant must shall pay the |
| 2794 | applicable contributions based on the employee membership class |
| 2795 | in the optional program. |
| 2796 | c. An Any such employee who fails to elect to participate |
| 2797 | in the investment plan Public Employee Optional Retirement |
| 2798 | Program within the prescribed time period is deemed to have |
| 2799 | elected to retain membership in the pension plan defined benefit |
| 2800 | program of the Florida Retirement System, and the employee's |
| 2801 | option to elect to participate in the investment plan optional |
| 2802 | program is forfeited. |
| 2803 | 3. With respect to employees who become eligible to |
| 2804 | participate in the investment plan Public Employee Optional |
| 2805 | Retirement Program pursuant to s. 121.051(2)(c)3. or s. |
| 2806 | 121.35(3)(i), the any such employee may elect to participate in |
| 2807 | the investment plan Public Employee Optional Retirement Program |
| 2808 | in lieu of retaining his or her membership participation in the |
| 2809 | State Community College System Optional Retirement Program or |
| 2810 | the State University System Optional Retirement Program. The |
| 2811 | election must be made in writing or by electronic means and must |
| 2812 | be filed with the third-party administrator. This election is |
| 2813 | irrevocable, except as provided in paragraph (g) (e). Upon |
| 2814 | making such election, the employee shall be enrolled as a member |
| 2815 | in participant of the investment plan Public Employee Optional |
| 2816 | Retirement Program, the employee's membership in the Florida |
| 2817 | Retirement System shall be governed by the provisions of this |
| 2818 | part, and the employee's participation in the State Community |
| 2819 | College System Optional Retirement Program or the State |
| 2820 | University System Optional Retirement Program shall terminate. |
| 2821 | The employee's enrollment in the investment plan is Public |
| 2822 | Employee Optional Retirement Program shall be effective on the |
| 2823 | first day of the month for which a full month's employer and |
| 2824 | employee contribution is made to the investment plan optional |
| 2825 | program. |
| 2826 | 4. For purposes of this paragraph, "state employer" means |
| 2827 | any agency, board, branch, commission, community college, |
| 2828 | department, institution, institution of higher education, or |
| 2829 | water management district of the state, which participates in |
| 2830 | the Florida Retirement System for the benefit of certain |
| 2831 | employees. |
| 2832 | (b)1. With respect to an eligible employee who is employed |
| 2833 | in a regularly established position on September 1, 2002, by a |
| 2834 | district school board employer: |
| 2835 | a. Any such employee may elect to participate in the |
| 2836 | investment plan Public Employee Optional Retirement Program in |
| 2837 | lieu of retaining his or her membership in the pension plan |
| 2838 | defined benefit program of the Florida Retirement System. The |
| 2839 | election must be made in writing or by electronic means and must |
| 2840 | be filed with the third-party administrator by November 30, or, |
| 2841 | in the case of an active employee who is on a leave of absence |
| 2842 | on July 1, 2002, by the last business day of the 5th month |
| 2843 | following the month the leave of absence concludes. This |
| 2844 | election is irrevocable, except as provided in paragraph (g) |
| 2845 | (e). Upon making such election, the employee shall be enrolled |
| 2846 | as a member participant of the investment plan Public Employee |
| 2847 | Optional Retirement Program, the employee's membership in the |
| 2848 | Florida Retirement System shall be governed by the provisions of |
| 2849 | this part, and the employee's membership in the pension plan |
| 2850 | defined benefit program of the Florida Retirement System shall |
| 2851 | terminate. The employee's enrollment in the investment plan |
| 2852 | Public Employee Optional Retirement Program shall be effective |
| 2853 | the first day of the month for which a full month's employer |
| 2854 | contribution is made to the investment optional program. |
| 2855 | b. Any such employee who fails to elect to participate in |
| 2856 | the investment plan Public Employee Optional Retirement Program |
| 2857 | within the prescribed time period is deemed to have elected to |
| 2858 | retain membership in the pension plan defined benefit program of |
| 2859 | the Florida Retirement System, and the employee's option to |
| 2860 | elect to participate in the investment plan optional program is |
| 2861 | forfeited. |
| 2862 | 2. With respect to employees who become eligible to |
| 2863 | participate in the investment plan Public Employee Optional |
| 2864 | Retirement Program by reason of employment in a regularly |
| 2865 | established position with a district school board employer |
| 2866 | commencing after July 1, 2002: |
| 2867 | a. Any such employee shall, by default, be enrolled in the |
| 2868 | pension plan defined benefit retirement program of the Florida |
| 2869 | Retirement System at the commencement of employment, and may, by |
| 2870 | the last business day of the 5th month following the employee's |
| 2871 | month of hire, elect to participate in the investment plan |
| 2872 | Public Employee Optional Retirement Program. The employee's |
| 2873 | election must be made in writing or by electronic means and must |
| 2874 | be filed with the third-party administrator. The election to |
| 2875 | participate in the investment plan optional program is |
| 2876 | irrevocable, except as provided in paragraph (g) (e). |
| 2877 | b. If the employee files such election within the |
| 2878 | prescribed time period, enrollment in the investment plan |
| 2879 | optional program shall be effective on the first day of |
| 2880 | employment. The employer retirement contributions paid through |
| 2881 | the month of the employee plan change shall be transferred to |
| 2882 | the investment plan optional program, and, effective the first |
| 2883 | day of the next month, the employer shall pay the applicable |
| 2884 | contributions based on the employee membership class in the |
| 2885 | investment plan optional program. |
| 2886 | c. Any such employee who fails to elect to participate in |
| 2887 | the investment plan Public Employee Optional Retirement Program |
| 2888 | within the prescribed time period is deemed to have elected to |
| 2889 | retain membership in the pension plan defined benefit program of |
| 2890 | the Florida Retirement System, and the employee's option to |
| 2891 | elect to participate in the investment plan optional program is |
| 2892 | forfeited. |
| 2893 | 3. For purposes of this paragraph, "district school board |
| 2894 | employer" means any district school board that participates in |
| 2895 | the Florida Retirement System for the benefit of certain |
| 2896 | employees, or a charter school or charter technical career |
| 2897 | center that participates in the Florida Retirement System as |
| 2898 | provided in s. 121.051(2)(d). |
| 2899 | (c)1. With respect to an eligible employee who is employed |
| 2900 | in a regularly established position on December 1, 2002, by a |
| 2901 | local employer: |
| 2902 | a. Any such employee may elect to participate in the |
| 2903 | investment plan Public Employee Optional Retirement Program in |
| 2904 | lieu of retaining his or her membership in the pension plan |
| 2905 | defined benefit program of the Florida Retirement System. The |
| 2906 | election must be made in writing or by electronic means and must |
| 2907 | be filed with the third-party administrator by February 28, |
| 2908 | 2003, or, in the case of an active employee who is on a leave of |
| 2909 | absence on October 1, 2002, by the last business day of the 5th |
| 2910 | month following the month the leave of absence concludes. This |
| 2911 | election is irrevocable, except as provided in paragraph (g) |
| 2912 | (e). Upon making such election, the employee shall be enrolled |
| 2913 | as a participant of the investment plan Public Employee Optional |
| 2914 | Retirement Program, the employee's membership in the Florida |
| 2915 | Retirement System shall be governed by the provisions of this |
| 2916 | part, and the employee's membership in the pension plan defined |
| 2917 | benefit program of the Florida Retirement System shall |
| 2918 | terminate. The employee's enrollment in the investment plan |
| 2919 | Public Employee Optional Retirement Program shall be effective |
| 2920 | the first day of the month for which a full month's employer |
| 2921 | contribution is made to the investment plan optional program. |
| 2922 | b. Any such employee who fails to elect to participate in |
| 2923 | the investment plan Public Employee Optional Retirement Program |
| 2924 | within the prescribed time period is deemed to have elected to |
| 2925 | retain membership in the pension plan defined benefit program of |
| 2926 | the Florida Retirement System, and the employee's option to |
| 2927 | elect to participate in the investment plan optional program is |
| 2928 | forfeited. |
| 2929 | 2. With respect to employees who become eligible to |
| 2930 | participate in the investment plan Public Employee Optional |
| 2931 | Retirement Program by reason of employment in a regularly |
| 2932 | established position with a local employer commencing after |
| 2933 | October 1, 2002: |
| 2934 | a. Any such employee shall, by default, be enrolled in the |
| 2935 | pension plan defined benefit retirement program of the Florida |
| 2936 | Retirement System at the commencement of employment, and may, by |
| 2937 | the last business day of the 5th month following the employee's |
| 2938 | month of hire, elect to participate in the investment plan |
| 2939 | Public Employee Optional Retirement Program. The employee's |
| 2940 | election must be made in writing or by electronic means and must |
| 2941 | be filed with the third-party administrator. The election to |
| 2942 | participate in the investment plan optional program is |
| 2943 | irrevocable, except as provided in paragraph (g) (e). |
| 2944 | b. If the employee files such election within the |
| 2945 | prescribed time period, enrollment in the investment plan |
| 2946 | optional program shall be effective on the first day of |
| 2947 | employment. The employer retirement contributions paid through |
| 2948 | the month of the employee plan change shall be transferred to |
| 2949 | the investment plan optional program, and, effective the first |
| 2950 | day of the next month, the employer shall pay the applicable |
| 2951 | contributions based on the employee membership class in the |
| 2952 | investment plan optional program. |
| 2953 | c. Any such employee who fails to elect to participate in |
| 2954 | the investment plan Public Employee Optional Retirement Program |
| 2955 | within the prescribed time period is deemed to have elected to |
| 2956 | retain membership in the pension plan defined benefit program of |
| 2957 | the Florida Retirement System, and the employee's option to |
| 2958 | elect to participate in the investment plan optional program is |
| 2959 | forfeited. |
| 2960 | 3. For purposes of this paragraph, "local employer" means |
| 2961 | any employer not included in paragraph (a) or paragraph (b). |
| 2962 | (d) Contributions available for self-direction by a member |
| 2963 | participant who has not selected one or more specific investment |
| 2964 | products shall be allocated as prescribed by the state board. |
| 2965 | The third-party administrator shall notify the member any such |
| 2966 | participant at least quarterly that the member participant |
| 2967 | should take an affirmative action to make an asset allocation |
| 2968 | among the investment optional program products. |
| 2969 | (e) On or after July 1, 2011, a member of the pension plan |
| 2970 | who obtains a refund of employee contributions retains his or |
| 2971 | her prior plan choice upon return to employment in a regularly |
| 2972 | established position with a participating employer. |
| 2973 | (f) A member of the investment plan who takes a |
| 2974 | distribution of any contributions from his or her investment |
| 2975 | plan account is considered a retiree. Upon reemployment in a |
| 2976 | regularly established position with a participating employer, |
| 2977 | the member returns as a new hire. A retiree who is initially |
| 2978 | reemployed on or after July 1, 2010, is not eligible for renewed |
| 2979 | membership. |
| 2980 | (g)(e) After the period during which an eligible employee |
| 2981 | had the choice to elect the pension plan defined benefit program |
| 2982 | or the investment plan optional retirement program, or the month |
| 2983 | following the receipt of the eligible employee's plan election, |
| 2984 | if sooner, the employee shall have one opportunity, at the |
| 2985 | employee's discretion, to choose to move from the pension plan |
| 2986 | defined benefit program to the investment plan optional |
| 2987 | retirement program or from the investment plan optional |
| 2988 | retirement program to the pension plan defined benefit program. |
| 2989 | Eligible employees may elect to move between Florida Retirement |
| 2990 | System programs only if they are earning service credit in an |
| 2991 | employer-employee relationship consistent with s. |
| 2992 | 121.021(17)(b), excluding leaves of absence without pay. |
| 2993 | Effective July 1, 2005, such elections are effective on the |
| 2994 | first day of the month following the receipt of the election by |
| 2995 | the third-party administrator and are not subject to the |
| 2996 | requirements regarding an employer-employee relationship or |
| 2997 | receipt of contributions for the eligible employee in the |
| 2998 | effective month, except when the election is received by the |
| 2999 | third-party administrator. This paragraph is contingent upon |
| 3000 | approval by from the Internal Revenue Service for including the |
| 3001 | choice described herein within the programs offered by the |
| 3002 | Florida Retirement System. |
| 3003 | 1. If the employee chooses to move to the investment plan |
| 3004 | optional retirement program, the applicable provisions of |
| 3005 | subsection (3) this section shall govern the transfer. |
| 3006 | 2. If the employee chooses to move to the pension plan |
| 3007 | defined benefit program, the employee must transfer from his or |
| 3008 | her investment plan optional retirement program account, and |
| 3009 | from other employee moneys as necessary, a sum representing the |
| 3010 | present value of that employee's accumulated benefit obligation |
| 3011 | immediately following the time of such movement, determined |
| 3012 | assuming that attained service equals the sum of service in the |
| 3013 | pension plan defined benefit program and service in the |
| 3014 | investment plan optional retirement program. Benefit |
| 3015 | commencement occurs on the first date the employee is eligible |
| 3016 | for unreduced benefits, using the discount rate and other |
| 3017 | relevant actuarial assumptions that were used to value the |
| 3018 | pension defined benefit plan liabilities in the most recent |
| 3019 | actuarial valuation. For any employee who, at the time of the |
| 3020 | second election, already maintains an accrued benefit amount in |
| 3021 | the pension plan defined benefit program, the then-present value |
| 3022 | of the accrued benefit shall be deemed part of the required |
| 3023 | transfer amount. The division shall ensure that the transfer sum |
| 3024 | is prepared using a formula and methodology certified by an |
| 3025 | enrolled actuary. A refund of any employee contributions or |
| 3026 | additional member payments made which exceed the employee |
| 3027 | contributions that would have accrued had the member remained in |
| 3028 | the pension plan and not transferred to the investment plan is |
| 3029 | not permitted. |
| 3030 | 3. Notwithstanding subparagraph 2., an employee who |
| 3031 | chooses to move to the pension plan defined benefit program and |
| 3032 | who became eligible to participate in the investment plan |
| 3033 | optional retirement program by reason of employment in a |
| 3034 | regularly established position with a state employer after June |
| 3035 | 1, 2002; a district school board employer after September 1, |
| 3036 | 2002; or a local employer after December 1, 2002, must transfer |
| 3037 | from his or her investment plan optional retirement program |
| 3038 | account, and from other employee moneys as necessary, a sum |
| 3039 | representing the employee's actuarial accrued liability. A |
| 3040 | refund of any employee contributions or additional participant |
| 3041 | payments made which exceed the employee contributions that would |
| 3042 | have accrued had the member remained in the pension plan and not |
| 3043 | transferred to the investment plan is not permitted. |
| 3044 | 4. An employee's ability to transfer from the pension plan |
| 3045 | defined benefit program to the investment plan optional |
| 3046 | retirement program pursuant to paragraphs (a)-(d), and the |
| 3047 | ability of a current employee to have an option to later |
| 3048 | transfer back into the pension plan defined benefit program |
| 3049 | under subparagraph 2., shall be deemed a significant system |
| 3050 | amendment. Pursuant to s. 121.031(4), any resulting unfunded |
| 3051 | liability arising from actual original transfers from the |
| 3052 | pension plan defined benefit program to the investment plan |
| 3053 | optional program must be amortized within 30 plan years as a |
| 3054 | separate unfunded actuarial base independent of the reserve |
| 3055 | stabilization mechanism defined in s. 121.031(3)(f). For the |
| 3056 | first 25 years, a direct amortization payment may not be |
| 3057 | calculated for this base. During this 25-year period, the |
| 3058 | separate base shall be used to offset the impact of employees |
| 3059 | exercising their second program election under this paragraph. |
| 3060 | It is the intent of the Legislature that The actuarial funded |
| 3061 | status of the pension plan will defined benefit program not be |
| 3062 | affected by such second program elections in any significant |
| 3063 | manner, after due recognition of the separate unfunded actuarial |
| 3064 | base. Following the initial 25-year period, any remaining |
| 3065 | balance of the original separate base shall be amortized over |
| 3066 | the remaining 5 years of the required 30-year amortization |
| 3067 | period. |
| 3068 | 5. If the employee chooses to transfer from the investment |
| 3069 | plan optional retirement program to the pension plan defined |
| 3070 | benefit program and retains an excess account balance in the |
| 3071 | investment plan optional program after satisfying the buy-in |
| 3072 | requirements under this paragraph, the excess may not be |
| 3073 | distributed until the member retires from the pension plan |
| 3074 | defined benefit program. The excess account balance may be |
| 3075 | rolled over to the pension plan defined benefit program and used |
| 3076 | to purchase service credit or upgrade creditable service in the |
| 3077 | pension plan that program. |
| 3078 | (5) CONTRIBUTIONS.- |
| 3079 | (a) The employee and Each employer shall make the required |
| 3080 | contributions to contribute on behalf of each participant in the |
| 3081 | investment plan based on a percentage of the employee's gross |
| 3082 | monthly compensation Public Employee Optional Retirement |
| 3083 | Program, as provided in part III of this chapter. |
| 3084 | (b) Employee contributions shall be paid as provided in s. |
| 3085 | 121.72(2). |
| 3086 | (c) The state board, acting as plan fiduciary, shall |
| 3087 | ensure that all plan assets are held in a trust, pursuant to s. |
| 3088 | 401 of the Internal Revenue Code. The fiduciary shall ensure |
| 3089 | that such said contributions are allocated as follows: |
| 3090 | 1. The employer and employee contribution portion |
| 3091 | earmarked for member participant accounts shall be used to |
| 3092 | purchase interests in the appropriate investment vehicles for |
| 3093 | the accounts of each participant as specified by the member |
| 3094 | participant, or in accordance with paragraph (4)(d). |
| 3095 | 2. The employer contribution portion earmarked for |
| 3096 | administrative and educational expenses shall be transferred to |
| 3097 | the Florida Retirement System Investment Plan Trust Fund board. |
| 3098 | 3. The employer contribution portion earmarked for |
| 3099 | disability benefits shall be transferred to the Florida |
| 3100 | Retirement System Trust Fund department. |
| 3101 | (d)(b) The third-party administrator is Employers are |
| 3102 | responsible for monitoring and notifying employers of the |
| 3103 | participants regarding maximum contribution levels allowed for |
| 3104 | members permitted under the Internal Revenue Code. If a member |
| 3105 | participant contributes to any other tax-deferred plan, the |
| 3106 | member he or she is responsible for ensuring that total |
| 3107 | contributions made to the investment plan optional program and |
| 3108 | to any other such plan do not exceed federally permitted |
| 3109 | maximums. |
| 3110 | (e)(c) The investment plan Public Employee Optional |
| 3111 | Retirement Program may accept for deposit into member |
| 3112 | participant accounts contributions in the form of rollovers or |
| 3113 | direct trustee-to-trustee transfers by or on behalf of members |
| 3114 | participants, reasonably determined by the state board to be |
| 3115 | eligible for rollover or transfer to the investment plan |
| 3116 | optional retirement program pursuant to the Internal Revenue |
| 3117 | Code, if such contributions are made in accordance with rules as |
| 3118 | may be adopted by the board. Such contributions must shall be |
| 3119 | accounted for in accordance with any applicable Internal Revenue |
| 3120 | Code requirements and rules of the state board. |
| 3121 | (6) VESTING REQUIREMENTS.- |
| 3122 | (a) A member is fully and immediately vested in all |
| 3123 | employee contributions paid to the investment plan as provided |
| 3124 | in s. 121.72(2), plus interest and earnings thereon and less |
| 3125 | investment fees and administrative charges. |
| 3126 | (b)(a)1. With respect to employer contributions paid on |
| 3127 | behalf of the member participant to the investment plan optional |
| 3128 | retirement program, plus interest and earnings thereon and less |
| 3129 | investment fees and administrative charges, a member participant |
| 3130 | is vested after completing 1 work year with an employer, |
| 3131 | including any service while the member participant was a member |
| 3132 | of the pension plan defined benefit program or an optional |
| 3133 | retirement program authorized under s. 121.051(2)(c) or s. |
| 3134 | 121.055(6). |
| 3135 | 2. If the member participant terminates employment before |
| 3136 | satisfying the vesting requirements, the nonvested accumulation |
| 3137 | must be transferred from the member's participant's accounts to |
| 3138 | the state board for deposit and investment by the state board in |
| 3139 | its the suspense account created within the Florida Retirement |
| 3140 | System Investment Plan Public Employee Optional Retirement |
| 3141 | Program Trust Fund. If the terminated member participant is |
| 3142 | reemployed as an eligible employee within 5 years, the state |
| 3143 | board shall transfer to the member's participant's account any |
| 3144 | amount previously transferred from the member's participant's |
| 3145 | accounts to the suspense account, plus actual earnings on such |
| 3146 | amount while in the suspense account. |
| 3147 | (c)(b)1. With respect to amounts contributed by an |
| 3148 | employer and transferred from the pension plan defined benefit |
| 3149 | program to the investment plan program, plus interest and |
| 3150 | earnings, and less investment fees and administrative charges, a |
| 3151 | member participant shall be vested in the amount transferred |
| 3152 | upon meeting the service requirements for the member's |
| 3153 | participant's membership class as set forth in s. 121.021(29). |
| 3154 | The third-party administrator shall account for such amounts for |
| 3155 | each member participant. The division shall notify the member |
| 3156 | participant and the third-party administrator when the member |
| 3157 | participant has satisfied the vesting period for Florida |
| 3158 | Retirement System purposes. |
| 3159 | 2. If the member participant terminates employment before |
| 3160 | satisfying the vesting requirements, the nonvested accumulation |
| 3161 | must be transferred from the member's participant's accounts to |
| 3162 | the state board for deposit and investment by the state board in |
| 3163 | the suspense account created within the Florida Retirement |
| 3164 | System Investment Plan Public Employee Optional Retirement |
| 3165 | Program Trust Fund. If the terminated member participant is |
| 3166 | reemployed as an eligible employee within 5 years, the state |
| 3167 | board shall transfer to the member's accounts participant's |
| 3168 | account any amount previously transferred from the member's |
| 3169 | participant's accounts to the suspense account, plus the actual |
| 3170 | earnings on such amount while in the suspense account. |
| 3171 | (d)(c) Any nonvested accumulations transferred from a |
| 3172 | member's participant's account to the state board's suspense |
| 3173 | account shall be forfeited, including accompanying service |
| 3174 | credit, by the member participant if the member participant is |
| 3175 | not reemployed as an eligible employee within 5 years after |
| 3176 | termination. |
| 3177 | (e) If the member elects to receive any of his or her |
| 3178 | vested employee or employer contributions upon termination of |
| 3179 | employment as provided in s. 121.021(39)(a), except for a |
| 3180 | mandatory distribution of a de minimis account authorized by the |
| 3181 | state board or a minimum required distribution provided by s. |
| 3182 | 401(a)(9) of the Internal Revenue Code, the member shall forfeit |
| 3183 | all nonvested employer contributions, and accompanying service |
| 3184 | credit, paid on behalf of the member to the investment plan. |
| 3185 | (7) BENEFITS.-Under the investment plan, benefits must |
| 3186 | Public Employee Optional Retirement Program: |
| 3187 | (a) Benefits shall Be provided in accordance with s. |
| 3188 | 401(a) of the Internal Revenue Code. |
| 3189 | (b) Benefits shall Accrue in individual accounts that are |
| 3190 | member-directed participant-directed, portable, and funded by |
| 3191 | employer and employee contributions and earnings thereon. |
| 3192 | (c) Benefits shall Be payable in accordance with the |
| 3193 | provisions of s. 121.591. |
| 3194 | (8) INVESTMENT PLAN ADMINISTRATION OF PROGRAM.- |
| 3195 | (a) The investment plan optional retirement program shall |
| 3196 | be administered by the state board and affected employers. The |
| 3197 | state board may require oaths, by affidavit or otherwise, and |
| 3198 | acknowledgments from persons in connection with the |
| 3199 | administration of its statutory duties and responsibilities for |
| 3200 | the investment plan this program. An oath, by affidavit or |
| 3201 | otherwise, may not be required of a member an employee |
| 3202 | participant at the time of enrollment. Acknowledgment of an |
| 3203 | employee's election to participate in the program shall be no |
| 3204 | greater than necessary to confirm the employee's election. The |
| 3205 | state board shall adopt rules to carry out its statutory duties |
| 3206 | with respect to administering the investment plan optional |
| 3207 | retirement program, including establishing the roles and |
| 3208 | responsibilities of affected state, local government, and |
| 3209 | education-related employers, the state board, the department, |
| 3210 | and third-party contractors. The department shall adopt rules |
| 3211 | necessary to administer the investment plan optional program in |
| 3212 | coordination with the pension plan defined benefit program and |
| 3213 | the disability benefits available under the investment plan |
| 3214 | optional program. |
| 3215 | (a)(b)1. The state board shall select and contract with a |
| 3216 | one third-party administrator to provide administrative services |
| 3217 | if those services cannot be competitively and contractually |
| 3218 | provided by the division of Retirement within the Department of |
| 3219 | Management Services. With the approval of the state board, the |
| 3220 | third-party administrator may subcontract with other |
| 3221 | organizations or individuals to provide components of the |
| 3222 | administrative services. As a cost of administration, the state |
| 3223 | board may compensate any such contractor for its services, in |
| 3224 | accordance with the terms of the contract, as is deemed |
| 3225 | necessary or proper by the board. The third-party administrator |
| 3226 | may not be an approved provider or be affiliated with an |
| 3227 | approved provider. |
| 3228 | 2. These administrative services may include, but are not |
| 3229 | limited to, enrollment of eligible employees, collection of |
| 3230 | employer and employee contributions, disbursement of such |
| 3231 | contributions to approved providers in accordance with the |
| 3232 | allocation directions of members participants; services relating |
| 3233 | to consolidated billing; individual and collective recordkeeping |
| 3234 | and accounting; asset purchase, control, and safekeeping; and |
| 3235 | direct disbursement of funds to and from the third-party |
| 3236 | administrator, the division, the state board, employers, members |
| 3237 | participants, approved providers, and beneficiaries. This |
| 3238 | section does not prevent or prohibit a bundled provider from |
| 3239 | providing any administrative or customer service, including |
| 3240 | accounting and administration of individual member participant |
| 3241 | benefits and contributions; individual member participant |
| 3242 | recordkeeping; asset purchase, control, and safekeeping; direct |
| 3243 | execution of the member's participant's instructions as to asset |
| 3244 | and contribution allocation; calculation of daily net asset |
| 3245 | values; direct access to member participant account information; |
| 3246 | or periodic reporting to members participants, at least |
| 3247 | quarterly, on account balances and transactions, if these |
| 3248 | services are authorized by the state board as part of the |
| 3249 | contract. |
| 3250 | (b)1.3. The state board shall select and contract with one |
| 3251 | or more organizations to provide educational services. With |
| 3252 | approval of the state board, the organizations may subcontract |
| 3253 | with other organizations or individuals to provide components of |
| 3254 | the educational services. As a cost of administration, the state |
| 3255 | board may compensate any such contractor for its services in |
| 3256 | accordance with the terms of the contract, as is deemed |
| 3257 | necessary or proper by the board. The education organization may |
| 3258 | not be an approved provider or be affiliated with an approved |
| 3259 | provider. |
| 3260 | 2.4. Educational services shall be designed by the state |
| 3261 | board and department to assist employers, eligible employees, |
| 3262 | members participants, and beneficiaries in order to maintain |
| 3263 | compliance with United States Department of Labor regulations |
| 3264 | under s. 404(c) of the Employee Retirement Income Security Act |
| 3265 | of 1974 and to assist employees in their choice of pension plan |
| 3266 | defined benefit or investment plan defined contribution |
| 3267 | retirement alternatives. Educational services include, but are |
| 3268 | not limited to, disseminating educational materials; providing |
| 3269 | retirement planning education; explaining the pension |
| 3270 | differences between the defined benefit retirement plan and the |
| 3271 | investment defined contribution retirement plan; and offering |
| 3272 | financial planning guidance on matters such as investment |
| 3273 | diversification, investment risks, investment costs, and asset |
| 3274 | allocation. An approved provider may also provide educational |
| 3275 | information, including retirement planning and investment |
| 3276 | allocation information concerning its products and services. |
| 3277 | (c)1. In evaluating and selecting a third-party |
| 3278 | administrator, the state board shall establish criteria for |
| 3279 | evaluating under which it shall consider the relative |
| 3280 | capabilities and qualifications of each proposed administrator. |
| 3281 | In developing such criteria, the state board shall consider: |
| 3282 | a. The administrator's demonstrated experience in |
| 3283 | providing administrative services to public or private sector |
| 3284 | retirement systems. |
| 3285 | b. The administrator's demonstrated experience in |
| 3286 | providing daily valued recordkeeping to defined contribution |
| 3287 | programs plans. |
| 3288 | c. The administrator's ability and willingness to |
| 3289 | coordinate its activities with the Florida Retirement System |
| 3290 | employers, the state board, and the division, and to supply to |
| 3291 | such employers, the board, and the division the information and |
| 3292 | data they require, including, but not limited to, monthly |
| 3293 | management reports, quarterly member participant reports, and ad |
| 3294 | hoc reports requested by the department or state board. |
| 3295 | d. The cost-effectiveness and levels of the administrative |
| 3296 | services provided. |
| 3297 | e. The administrator's ability to interact with the |
| 3298 | members participants, the employers, the state board, the |
| 3299 | division, and the providers; the means by which members |
| 3300 | participants may access account information, direct investment |
| 3301 | of contributions, make changes to their accounts, transfer |
| 3302 | moneys between available investment vehicles, and transfer |
| 3303 | moneys between investment products; and any fees that apply to |
| 3304 | such activities. |
| 3305 | f. Any other factor deemed necessary by the Trustees of |
| 3306 | the state board of Administration. |
| 3307 | 2. In evaluating and selecting an educational provider, |
| 3308 | the state board shall establish criteria under which it shall |
| 3309 | consider the relative capabilities and qualifications of each |
| 3310 | proposed educational provider. In developing such criteria, the |
| 3311 | state board shall consider: |
| 3312 | a. Demonstrated experience in providing educational |
| 3313 | services to public or private sector retirement systems. |
| 3314 | b. Ability and willingness to coordinate its activities |
| 3315 | with the Florida Retirement System employers, the state board, |
| 3316 | and the division, and to supply to such employers, the board, |
| 3317 | and the division the information and data they require, |
| 3318 | including, but not limited to, reports on educational contacts. |
| 3319 | c. The cost-effectiveness and levels of the educational |
| 3320 | services provided. |
| 3321 | d. Ability to provide educational services via different |
| 3322 | media, including, but not limited to, the Internet, personal |
| 3323 | contact, seminars, brochures, and newsletters. |
| 3324 | e. Any other factor deemed necessary by the Trustees of |
| 3325 | the state board of Administration. |
| 3326 | 3. The establishment of the criteria shall be solely |
| 3327 | within the discretion of the state board. |
| 3328 | (d) The state board shall develop the form and content of |
| 3329 | any contracts to be offered under the investment plan Public |
| 3330 | Employee Optional Retirement Program. In developing the its |
| 3331 | contracts, the board shall must consider: |
| 3332 | 1. The nature and extent of the rights and benefits to be |
| 3333 | afforded in relation to the required contributions required |
| 3334 | under the plan program. |
| 3335 | 2. The suitability of the rights and benefits provided to |
| 3336 | be afforded and the interests of employers in the recruitment |
| 3337 | and retention of eligible employees. |
| 3338 | (e)1. The state board may contract with any consultant for |
| 3339 | professional services, including legal, consulting, accounting, |
| 3340 | and actuarial services, deemed necessary to implement and |
| 3341 | administer the investment plan optional program by the Trustees |
| 3342 | of the State Board of Administration. The state board may enter |
| 3343 | into a contract with one or more vendors to provide low-cost |
| 3344 | investment advice to members participants, supplemental to |
| 3345 | education provided by the third-party administrator. All fees |
| 3346 | under any such contract shall be paid by those members |
| 3347 | participants who choose to use the services of the vendor. |
| 3348 | 2. The department may contract with consultants for |
| 3349 | professional services, including legal, consulting, accounting, |
| 3350 | and actuarial services, deemed necessary to implement and |
| 3351 | administer the investment plan optional program in coordination |
| 3352 | with the pension plan defined benefit program of the Florida |
| 3353 | Retirement System. The department, in coordination with the |
| 3354 | state board, may enter into a contract with the third-party |
| 3355 | administrator in order to coordinate services common to the |
| 3356 | various programs within the Florida Retirement System. |
| 3357 | (f) The third-party administrator may shall not receive |
| 3358 | direct or indirect compensation from an approved provider, |
| 3359 | except as specifically provided for in the contract with the |
| 3360 | state board. |
| 3361 | (g) The state board shall receive and resolve member |
| 3362 | participant complaints against the program, the third-party |
| 3363 | administrator, or any program vendor or provider; shall resolve |
| 3364 | any conflict between the third-party administrator and an |
| 3365 | approved provider if such conflict threatens the implementation |
| 3366 | or administration of the program or the quality of services to |
| 3367 | employees; and may resolve any other conflicts. The third-party |
| 3368 | administrator shall retain all member participant records for at |
| 3369 | least 5 years for use in resolving any member participant |
| 3370 | conflicts. The state board, the third-party administrator, or a |
| 3371 | provider is not required to produce documentation or an audio |
| 3372 | recording to justify action taken with regard to a member |
| 3373 | participant if the action occurred 5 or more years before the |
| 3374 | complaint is submitted to the state board. It is presumed that |
| 3375 | all action taken 5 or more years before the complaint is |
| 3376 | submitted was taken at the request of the member participant and |
| 3377 | with the member's participant's full knowledge and consent. To |
| 3378 | overcome this presumption, the member participant must present |
| 3379 | documentary evidence or an audio recording demonstrating |
| 3380 | otherwise. |
| 3381 | (9) INVESTMENT OPTIONS OR PRODUCTS; PERFORMANCE REVIEW.- |
| 3382 | (a) The state board shall develop policy and procedures |
| 3383 | for selecting, evaluating, and monitoring the performance of |
| 3384 | approved providers and investment products to which employees |
| 3385 | may direct retirement contributions under the investment plan |
| 3386 | program. In accordance with such policy and procedures, the |
| 3387 | state board shall designate and contract for a number of |
| 3388 | investment products as determined by the board. The board shall |
| 3389 | also select one or more bundled providers, each of which whom |
| 3390 | may offer multiple investment options and related services, if |
| 3391 | when such an approach is determined by the board to provide |
| 3392 | afford value to the members participants otherwise not available |
| 3393 | through individual investment products. Each approved bundled |
| 3394 | provider may offer investment options that provide members |
| 3395 | participants with the opportunity to invest in each of the |
| 3396 | following asset classes, to be composed of individual options |
| 3397 | that represent either a single asset class or a combination |
| 3398 | thereof: money markets, United States fixed income, United |
| 3399 | States equities, and foreign stock. The state board shall review |
| 3400 | and manage all educational materials, contract terms, fee |
| 3401 | schedules, and other aspects of the approved provider |
| 3402 | relationships to ensure that no provider is unduly favored or |
| 3403 | penalized by virtue of its status within the investment plan. |
| 3404 | (b) The state board shall consider investment options or |
| 3405 | products it considers appropriate to give members participants |
| 3406 | the opportunity to accumulate retirement benefits, subject to |
| 3407 | the following: |
| 3408 | 1. The investment plan Public Employee Optional Retirement |
| 3409 | Program must offer a diversified mix of low-cost investment |
| 3410 | products that span the risk-return spectrum and may include a |
| 3411 | guaranteed account as well as investment products, such as |
| 3412 | individually allocated guaranteed and variable annuities, which |
| 3413 | meet the requirements of this subsection and combine the ability |
| 3414 | to accumulate investment returns with the option of receiving |
| 3415 | lifetime income consistent with the long-term retirement |
| 3416 | security of a pension plan and similar to the lifetime-income |
| 3417 | benefit provided by the Florida Retirement System. |
| 3418 | 2. Investment options or products offered by the group of |
| 3419 | approved providers may include mutual funds, group annuity |
| 3420 | contracts, individual retirement annuities, interests in trusts, |
| 3421 | collective trusts, separate accounts, and other such financial |
| 3422 | instruments, and may include products that give members |
| 3423 | participants the option of committing their contributions for an |
| 3424 | extended time period in an effort to obtain returns higher than |
| 3425 | those that could be obtained from investment products offering |
| 3426 | full liquidity. |
| 3427 | 3. The state board may shall not contract with a any |
| 3428 | provider that imposes a front-end, back-end, contingent, or |
| 3429 | deferred sales charge, or any other fee that limits or restricts |
| 3430 | the ability of members participants to select any investment |
| 3431 | product available in the investment plan optional program. This |
| 3432 | prohibition does not apply to fees or charges that are imposed |
| 3433 | on withdrawals from products that give members participants the |
| 3434 | option of committing their contributions for an extended time |
| 3435 | period in an effort to obtain returns higher than those that |
| 3436 | could be obtained from investment products offering full |
| 3437 | liquidity, if provided that the product in question, net of all |
| 3438 | fees and charges, produces material benefits relative to other |
| 3439 | comparable products in the investment plan program offering full |
| 3440 | liquidity. |
| 3441 | 4. Fees or charges for insurance features, such as |
| 3442 | mortality and expense-risk charges, must be reasonable relative |
| 3443 | to the benefits provided. |
| 3444 | (c) In evaluating and selecting approved providers and |
| 3445 | products, the state board shall establish criteria for |
| 3446 | evaluating under which it shall consider the relative |
| 3447 | capabilities and qualifications of each proposed provider |
| 3448 | company and product. In developing such criteria, the board |
| 3449 | shall consider the following to the extent such factors may be |
| 3450 | applied in connection with investment products, services, or |
| 3451 | providers: |
| 3452 | 1. Experience in the United States providing retirement |
| 3453 | products and related financial services under defined |
| 3454 | contribution retirement programs plans. |
| 3455 | 2. Financial strength and stability as which shall be |
| 3456 | evidenced by the highest ratings assigned by nationally |
| 3457 | recognized rating services when comparing proposed providers |
| 3458 | that are so rated. |
| 3459 | 3. Intrastate and interstate portability of the product |
| 3460 | offered, including early withdrawal options. |
| 3461 | 4. Compliance with the Internal Revenue Code. |
| 3462 | 5. The cost-effectiveness of the product provided and the |
| 3463 | levels of service supporting the product relative to its |
| 3464 | benefits and its characteristics, including, without limitation, |
| 3465 | the level of risk borne by the provider. |
| 3466 | 6. The provider company's ability and willingness to |
| 3467 | coordinate its activities with Florida Retirement System |
| 3468 | employers, the department, and the state board, and to supply |
| 3469 | the to such employers, the department, and the board with the |
| 3470 | information and data they require. |
| 3471 | 7. The methods available to members participants to |
| 3472 | interact with the provider company; the means by which members |
| 3473 | participants may access account information, direct investment |
| 3474 | of contributions, make changes to their accounts, transfer |
| 3475 | moneys between available investment vehicles, and transfer |
| 3476 | moneys between provider companies; and any fees that apply to |
| 3477 | such activities. |
| 3478 | 8. The provider company's policies with respect to the |
| 3479 | transfer of individual account balances, contributions, and |
| 3480 | earnings thereon, both internally among investment products |
| 3481 | offered by the provider company and externally between approved |
| 3482 | providers, as well as any fees, charges, reductions, or |
| 3483 | penalties that may be applied. |
| 3484 | 9. An evaluation of specific investment products, taking |
| 3485 | into account each product's experience in meeting its investment |
| 3486 | return objectives net of all related fees, expenses, and |
| 3487 | charges, including, but not limited to, investment management |
| 3488 | fees, loads, distribution and marketing fees, custody fees, |
| 3489 | recordkeeping fees, education fees, annuity expenses, and |
| 3490 | consulting fees. |
| 3491 | 10. Organizational factors, including, but not limited to, |
| 3492 | financial solvency, organizational depth, and experience in |
| 3493 | providing institutional and retail investment services. |
| 3494 | (d) By March 1, 2010, the state board shall identify and |
| 3495 | offer at least one terror-free investment product that allocates |
| 3496 | its funds among securities not subject to divestiture as |
| 3497 | provided in s. 215.473 if the investment product is deemed by |
| 3498 | the state board to be consistent with prudent investor |
| 3499 | standards. A No person may not bring a civil, criminal, or |
| 3500 | administrative action against an approved provider; the state |
| 3501 | board; or any employee, officer, director, or trustee of such |
| 3502 | provider based upon the divestiture of any security or the |
| 3503 | offering of a terror-free investment product as specified in |
| 3504 | this paragraph. |
| 3505 | (e) As a condition of offering an any investment option or |
| 3506 | product in the investment plan optional retirement program, the |
| 3507 | approved provider must agree to make the investment product or |
| 3508 | service available under the most beneficial terms offered to any |
| 3509 | other customer, subject to approval by the Trustees of the state |
| 3510 | board of Administration. |
| 3511 | (f) The state board shall regularly review the performance |
| 3512 | of each approved provider and product and related organizational |
| 3513 | factors to ensure continued compliance with established |
| 3514 | selection criteria and with board policy and procedures. |
| 3515 | Providers and products may be terminated subject to contract |
| 3516 | provisions. The state board shall adopt procedures to transfer |
| 3517 | account balances from terminated products or providers to other |
| 3518 | products or providers in the investment plan optional program. |
| 3519 | (g)1. An approved provider shall comply with all |
| 3520 | applicable federal and state securities and insurance laws and |
| 3521 | regulations applicable to the provider, as well as with the |
| 3522 | applicable rules and guidelines of the National Association of |
| 3523 | Securities Dealers which govern the ethical marketing of |
| 3524 | investment products. In furtherance of this mandate, an approved |
| 3525 | provider must agree in its contract with the state board to |
| 3526 | establish and maintain a compliance education and monitoring |
| 3527 | system to supervise the activities of all personnel who directly |
| 3528 | communicate with individual members participants and recommend |
| 3529 | investment products, which system is consistent with rules of |
| 3530 | the National Association of Securities Dealers. |
| 3531 | 2. Approved provider personnel who directly communicate |
| 3532 | with individual members participants and who recommend |
| 3533 | investment products shall make an independent and unbiased |
| 3534 | determination as to whether an investment product is suitable |
| 3535 | for a particular member participant. |
| 3536 | 3. The state board shall develop procedures to receive and |
| 3537 | resolve member participant complaints against a provider or |
| 3538 | approved provider personnel, and, if when appropriate, refer |
| 3539 | such complaints to the appropriate agency. |
| 3540 | 4. Approved providers may not sell or in any way |
| 3541 | distribute any customer list or member participant |
| 3542 | identification information generated through their offering of |
| 3543 | products or services through the investment plan optional |
| 3544 | retirement program. |
| 3545 | (10) EDUCATION COMPONENT.- |
| 3546 | (a) The state board, in coordination with the department, |
| 3547 | shall provide for an education component for system members in a |
| 3548 | manner consistent with the provisions of this section. The |
| 3549 | education component must be available to eligible employees at |
| 3550 | least 90 days prior to the beginning date of the election period |
| 3551 | for the employees of the respective types of employers. |
| 3552 | (b) The education component must provide system members |
| 3553 | with impartial and balanced information about plan choices. The |
| 3554 | education component must involve multimedia formats. Program |
| 3555 | comparisons must, to the greatest extent possible, be based upon |
| 3556 | the retirement income that different retirement programs may |
| 3557 | provide to the member participant. The state board shall monitor |
| 3558 | the performance of the contract to ensure that the program is |
| 3559 | conducted in accordance with the contract, applicable law, and |
| 3560 | the rules of the state board. |
| 3561 | (c) The state board, in coordination with the department, |
| 3562 | shall provide for an initial and ongoing transfer education |
| 3563 | component to provide system members with information necessary |
| 3564 | to make informed plan choice decisions. The transfer education |
| 3565 | component must include, but is not limited to, information on: |
| 3566 | 1. The amount of money available to a member to transfer |
| 3567 | to the defined contribution program. |
| 3568 | 2. The features of and differences between the pension |
| 3569 | plan defined benefit program and the defined contribution |
| 3570 | program, both generally and specifically, as those differences |
| 3571 | may affect the member. |
| 3572 | 3. The expected benefit available if the member were to |
| 3573 | retire under each of the retirement programs, based on |
| 3574 | appropriate alternative sets of assumptions. |
| 3575 | 4. The rate of return from investments in the defined |
| 3576 | contribution program and the period of time over which such rate |
| 3577 | of return must be achieved to equal or exceed the expected |
| 3578 | monthly benefit payable to the member under the pension plan |
| 3579 | defined benefit program. |
| 3580 | 5. The historical rates of return for the investment |
| 3581 | alternatives available in the defined contribution programs. |
| 3582 | 6. The benefits and historical rates of return on |
| 3583 | investments available in a typical deferred compensation plan or |
| 3584 | a typical plan under s. 403(b) of the Internal Revenue Code for |
| 3585 | which the employee may be eligible. |
| 3586 | 7. The program choices available to employees of the State |
| 3587 | University System and the comparative benefits of each available |
| 3588 | program, if applicable. |
| 3589 | 8. Payout options available in each of the retirement |
| 3590 | programs. |
| 3591 | (d) An ongoing education and communication component must |
| 3592 | provide eligible employees system members with information |
| 3593 | necessary to make informed decisions about choices within their |
| 3594 | retirement system program of membership and in preparation for |
| 3595 | retirement. The component must include, but is not limited to, |
| 3596 | information concerning: |
| 3597 | 1. Rights and conditions of membership. |
| 3598 | 2. Benefit features within the program, options, and |
| 3599 | effects of certain decisions. |
| 3600 | 3. Coordination of contributions and benefits with a |
| 3601 | deferred compensation plan under s. 457 or a plan under s. |
| 3602 | 403(b) of the Internal Revenue Code. |
| 3603 | 4. Significant program changes. |
| 3604 | 5. Contribution rates and program funding status. |
| 3605 | 6. Planning for retirement. |
| 3606 | (e) Descriptive materials must be prepared under the |
| 3607 | assumption that the employee is an unsophisticated investor, and |
| 3608 | all materials used in the education component must be approved |
| 3609 | by the state board prior to dissemination. |
| 3610 | (f) The state board and the department shall also |
| 3611 | establish a communication component to provide program |
| 3612 | information to participating employers and the employers' |
| 3613 | personnel and payroll officers and to explain their respective |
| 3614 | responsibilities in conjunction with the retirement programs. |
| 3615 | (g) Funding for education of new employees may reflect |
| 3616 | administrative costs to the investment plan optional program and |
| 3617 | the pension plan defined benefit program. |
| 3618 | (h) Pursuant to subsection paragraph (8)(a), all Florida |
| 3619 | Retirement System employers have an obligation to regularly |
| 3620 | communicate the existence of the two Florida Retirement System |
| 3621 | plans and the plan choice in the natural course of administering |
| 3622 | their personnel functions, using the educational materials |
| 3623 | supplied by the state board and the Department of Management |
| 3624 | Services. |
| 3625 | (11) MEMBER PARTICIPANT INFORMATION REQUIREMENTS.-The |
| 3626 | state board shall ensure that each member participant is |
| 3627 | provided a quarterly statement that accounts for the |
| 3628 | contributions made on behalf of the member such participant; the |
| 3629 | interest and investment earnings thereon; and any fees, |
| 3630 | penalties, or other deductions that apply thereto. At a minimum, |
| 3631 | such statements must: |
| 3632 | (a) Indicate the member's participant's investment |
| 3633 | options. |
| 3634 | (b) State the market value of the account at the close of |
| 3635 | the current quarter and previous quarter. |
| 3636 | (c) Show account gains and losses for the period and |
| 3637 | changes in account accumulation unit values for the quarter |
| 3638 | period. |
| 3639 | (d) Itemize account contributions for the quarter. |
| 3640 | (e) Indicate any account changes due to adjustment of |
| 3641 | contribution levels, reallocation of contributions, balance |
| 3642 | transfers, or withdrawals. |
| 3643 | (f) Set forth any fees, charges, penalties, and deductions |
| 3644 | that apply to the account. |
| 3645 | (g) Indicate the amount of the account in which the member |
| 3646 | participant is fully vested and the amount of the account in |
| 3647 | which the member participant is not vested. |
| 3648 | (h) Indicate each investment product's performance |
| 3649 | relative to an appropriate market benchmark. |
| 3650 |
|
| 3651 | The third-party administrator shall provide quarterly and annual |
| 3652 | summary reports to the state board and any other reports |
| 3653 | requested by the department or the state board. In any |
| 3654 | solicitation or offer of coverage under the investment plan an |
| 3655 | optional retirement program, a provider company shall be |
| 3656 | governed by the contract readability provisions of s. 627.4145, |
| 3657 | notwithstanding s. 627.4145(6)(c). In addition, all descriptive |
| 3658 | materials must be prepared under the assumption that the member |
| 3659 | participant is an unsophisticated investor. Provider companies |
| 3660 | must maintain an internal system of quality assurance, have |
| 3661 | proven functional systems that are date-calculation compliant, |
| 3662 | and be subject to a due-diligence inquiry that proves their |
| 3663 | capacity and fitness to undertake service responsibilities. |
| 3664 | (12) ADVISORY COUNCIL TO PROVIDE ADVICE AND ASSISTANCE.- |
| 3665 | The Investment Advisory Council, created pursuant to s. 215.444, |
| 3666 | shall assist the state board in implementing and administering |
| 3667 | the investment plan Public Employee Optional Retirement Program. |
| 3668 | The Investment Advisory council, created pursuant to s. 215.444, |
| 3669 | shall review the state board's initial recommendations regarding |
| 3670 | the criteria to be used in selecting and evaluating approved |
| 3671 | providers and investment products. The council may provide |
| 3672 | comments on the recommendations to the state board within 45 |
| 3673 | days after receiving the initial recommendations. The state |
| 3674 | board shall make the final determination as to whether any |
| 3675 | investment provider or product, any contractor, or any and all |
| 3676 | contract provisions are shall be approved for the investment |
| 3677 | plan program. |
| 3678 | (13) FEDERAL REQUIREMENTS.- |
| 3679 | (a) Provisions of This section shall be construed, and the |
| 3680 | investment plan Public Employee Optional Retirement Program |
| 3681 | shall be administered, so as to comply with the Internal Revenue |
| 3682 | Code, 26 U.S.C., and specifically with plan qualification |
| 3683 | requirements imposed on governmental plans under s. 401(a) of |
| 3684 | the Internal Revenue Code. The state board may shall have the |
| 3685 | power and authority to adopt rules reasonably necessary to |
| 3686 | establish or maintain the qualified status of the investment |
| 3687 | plan Optional Retirement Program under the Internal Revenue Code |
| 3688 | and to implement and administer the investment plan Optional |
| 3689 | Retirement Program in compliance with the Internal Revenue Code |
| 3690 | and as designated under this part; provided however, that the |
| 3691 | board shall not have the authority to adopt any rule which makes |
| 3692 | a substantive change to the investment plan Optional Retirement |
| 3693 | Program as designed by this part. |
| 3694 | (b) Any section or provision of this chapter which is |
| 3695 | susceptible to more than one construction shall must be |
| 3696 | interpreted in favor of the construction most likely to satisfy |
| 3697 | requirements imposed by s. 401(a) of the Internal Revenue Code. |
| 3698 | (c) Contributions payable under this section for any |
| 3699 | limitation year may not exceed the maximum amount allowable for |
| 3700 | qualified defined contribution pension plans under applicable |
| 3701 | provisions of the Internal Revenue Code. If an employee who is |
| 3702 | enrolled has elected to participate in the investment plan |
| 3703 | Public Employee Optional Retirement Program participates in any |
| 3704 | other plan that is maintained by the participating employer, |
| 3705 | benefits that accrue under the investment plan Public Employee |
| 3706 | Optional Retirement Program shall be considered primary for any |
| 3707 | aggregate limitation applicable under s. 415 of the Internal |
| 3708 | Revenue Code. |
| 3709 | (14) INVESTMENT POLICY STATEMENT.- |
| 3710 | (a) Investment products and approved providers selected |
| 3711 | for the investment plan must Public Employee Optional Retirement |
| 3712 | Program shall conform with the Florida Retirement System |
| 3713 | Investment Plan Public Employee Optional Retirement Program |
| 3714 | Investment Policy Statement, herein referred to as the |
| 3715 | "statement," as developed and approved by the trustees of the |
| 3716 | state board of Administration. The statement must include, among |
| 3717 | other items, the investment objectives of the investment plan |
| 3718 | Public Employee Optional Retirement Program, manager selection |
| 3719 | and monitoring guidelines, and performance measurement criteria. |
| 3720 | As required from time to time, the executive director of the |
| 3721 | state board may present recommended changes in the statement to |
| 3722 | the board for approval. |
| 3723 | (b) Prior to presenting the statement, or any recommended |
| 3724 | changes thereto, to the state board, the executive director of |
| 3725 | the board shall present such statement or changes to the |
| 3726 | Investment Advisory Council for review. The council shall |
| 3727 | present the results of its review to the board prior to the |
| 3728 | board's final approval of the statement or changes in the |
| 3729 | statement. |
| 3730 | (15) STATEMENT OF FIDUCIARY STANDARDS AND |
| 3731 | RESPONSIBILITIES.- |
| 3732 | (a) Investment of optional defined contribution retirement |
| 3733 | plan assets shall be made for the sole interest and exclusive |
| 3734 | purpose of providing benefits to members plan participants and |
| 3735 | beneficiaries and defraying reasonable expenses of administering |
| 3736 | the plan. The program's assets shall are to be invested, on |
| 3737 | behalf of the program members participants, with the care, |
| 3738 | skill, and diligence that a prudent person acting in a like |
| 3739 | manner would undertake. The performance of the investment duties |
| 3740 | set forth in this paragraph shall comply with the fiduciary |
| 3741 | standards set forth in the Employee Retirement Income Security |
| 3742 | Act of 1974 at 29 U.S.C. s. 1104(a)(1)(A)-(C). In case of |
| 3743 | conflict with other provisions of law authorizing investments, |
| 3744 | the investment and fiduciary standards set forth in this |
| 3745 | subsection shall prevail. |
| 3746 | (b) If a member participant or beneficiary of the |
| 3747 | investment plan Public Employee Optional Retirement Program |
| 3748 | exercises control over the assets in his or her account, as |
| 3749 | determined by reference to regulations of the United States |
| 3750 | Department of Labor under s. 404(c) of the Employee Retirement |
| 3751 | Income Security Act of 1974 and all applicable laws governing |
| 3752 | the operation of the program, a no program fiduciary is not |
| 3753 | shall be liable for any loss to a member's participant's or |
| 3754 | beneficiary's account which results from the member's such |
| 3755 | participant's or beneficiary's exercise of control. |
| 3756 | (c) Subparagraph (8)(b)2.4. and paragraph (15)(b) |
| 3757 | incorporate the federal law concept of participant control, |
| 3758 | established by regulations of the United States Department of |
| 3759 | Labor under s. 404(c) of the Employee Retirement Income Security |
| 3760 | Act of 1974 (ERISA). The purpose of this paragraph is to assist |
| 3761 | employers and the state board of Administration in maintaining |
| 3762 | compliance with s. 404(c), while avoiding unnecessary costs and |
| 3763 | eroding member participant benefits under the investment plan |
| 3764 | Public Employee Optional Retirement Program. Pursuant to 29 |
| 3765 | C.F.R. s. 2550.404c-1(b)(2)(i)(B)(1)(viii), the state board of |
| 3766 | Administration or its designated agents shall deliver to members |
| 3767 | participants of the investment plan Public Employee Optional |
| 3768 | Retirement Program a copy of the prospectus most recently |
| 3769 | provided to the plan, and, pursuant to 29 C.F.R. s. 2550.404c- |
| 3770 | 1(b)(2)(i)(B)(2)(ii), shall provide such members participants an |
| 3771 | opportunity to obtain this information, except that: |
| 3772 | 1. The requirement to deliver a prospectus shall be deemed |
| 3773 | to be satisfied by delivery of a fund profile or summary profile |
| 3774 | that contains the information that would be included in a |
| 3775 | summary prospectus as described by Rule 498 under the Securities |
| 3776 | Act of 1933, 17 C.F.R. s. 230.498. If When the transaction fees, |
| 3777 | expense information or other information provided by a mutual |
| 3778 | fund in the prospectus does not reflect terms negotiated by the |
| 3779 | state board of Administration or its designated agents, the |
| 3780 | aforementioned requirement is deemed to be satisfied by delivery |
| 3781 | of a separate document described by Rule 498 substituting |
| 3782 | accurate information; and |
| 3783 | 2. Delivery shall be deemed to have been effected if |
| 3784 | delivery is through electronic means and the following standards |
| 3785 | are satisfied: |
| 3786 | a. Electronically-delivered documents are prepared and |
| 3787 | provided consistent with style, format, and content requirements |
| 3788 | applicable to printed documents; |
| 3789 | b. Each member participant is provided timely and adequate |
| 3790 | notice of the documents that are to be delivered, and their |
| 3791 | significance thereof, and of the member's participant's right to |
| 3792 | obtain a paper copy of such documents free of charge; |
| 3793 | c.(I) Members Participants have adequate access to the |
| 3794 | electronic documents, at locations such as their worksites or |
| 3795 | public facilities, and have the ability to convert the documents |
| 3796 | to paper free of charge by the state board of Administration, |
| 3797 | and the board or its designated agents take appropriate and |
| 3798 | reasonable measures to ensure that the system for furnishing |
| 3799 | electronic documents results in actual receipt., or |
| 3800 | (II) Members Participants have provided consent to receive |
| 3801 | information in electronic format, which consent may be revoked; |
| 3802 | and |
| 3803 | d. The state board of Administration, or its designated |
| 3804 | agent, actually provides paper copies of the documents free of |
| 3805 | charge, upon request. |
| 3806 | (16) DISABILITY BENEFITS.-For any member participant of |
| 3807 | the investment plan optional retirement program who becomes |
| 3808 | totally and permanently disabled, benefits must shall be paid in |
| 3809 | accordance with the provisions of s. 121.591. |
| 3810 | (17) SOCIAL SECURITY COVERAGE.-Social security coverage |
| 3811 | shall be provided for all officers and employees who become |
| 3812 | members participants of the investment plan optional program. |
| 3813 | Any modification of the present agreement with the Social |
| 3814 | Security Administration, or referendum required under the Social |
| 3815 | Security Act, for the purpose of providing social security |
| 3816 | coverage for any member shall be requested by the state agency |
| 3817 | in compliance with the applicable provisions of the Social |
| 3818 | Security Act governing such coverage. However, retroactive |
| 3819 | social security coverage for service prior to December 1, 1970, |
| 3820 | with the employer may shall not be provided for any member who |
| 3821 | was not covered under the agreement as of November 30, 1970. |
| 3822 | (18) RETIREE HEALTH INSURANCE SUBSIDY.-All officers and |
| 3823 | employees who are members participants of the investment plan |
| 3824 | are optional program shall be eligible to receive the retiree |
| 3825 | health insurance subsidy, subject to the provisions of s. |
| 3826 | 112.363. |
| 3827 | (19) MEMBER PARTICIPANT RECORDS.-Personal identifying |
| 3828 | information of a member participant in the investment plan |
| 3829 | Public Employee Optional Retirement Program contained in Florida |
| 3830 | Retirement System records held by the state board of |
| 3831 | Administration or the department of Management Services is |
| 3832 | exempt from s. 119.07(1) and s. 24(a), Art. I of the State |
| 3833 | Constitution. |
| 3834 | (20) DESIGNATION OF BENEFICIARIES.- |
| 3835 | (a) Each member participant may, by electronic means or on |
| 3836 | a form provided for that purpose, signed and filed with the |
| 3837 | third-party administrator, designate a choice of one or more |
| 3838 | persons, named sequentially or jointly, as his or her |
| 3839 | beneficiary for receiving who shall receive the benefits, if |
| 3840 | any, which may be payable pursuant to this chapter in the event |
| 3841 | of the member's participant's death. If no beneficiary is named |
| 3842 | in this manner, or if no beneficiary designated by the member |
| 3843 | participant survives the member participant, the beneficiary |
| 3844 | shall be the spouse of the deceased, if living. If the member's |
| 3845 | participant's spouse is not alive at the time of the |
| 3846 | beneficiary's his or her death, the beneficiary shall be the |
| 3847 | living children of the member participant. If no children |
| 3848 | survive, the beneficiary shall be the member's participant's |
| 3849 | father or mother, if living; otherwise, the beneficiary shall be |
| 3850 | the member's participant's estate. The beneficiary most recently |
| 3851 | designated by a member participant on a form or letter filed |
| 3852 | with the third-party administrator shall be the beneficiary |
| 3853 | entitled to any benefits payable at the time of the member's |
| 3854 | participant's death. However Notwithstanding any other provision |
| 3855 | in this subsection to the contrary, for a member participant who |
| 3856 | dies prior to his or her effective date of retirement, the |
| 3857 | spouse at the time of death shall be the member's participant's |
| 3858 | beneficiary unless the member such participant designates a |
| 3859 | different beneficiary as provided in this subsection subsequent |
| 3860 | to the member's participant's most recent marriage. |
| 3861 | (b) If a member participant designates a primary |
| 3862 | beneficiary other than the member's participant's spouse, the |
| 3863 | member's participant's spouse must sign the beneficiary |
| 3864 | designation form to acknowledge the designation. This |
| 3865 | requirement does not apply to the designation of one or more |
| 3866 | contingent beneficiaries to receive benefits remaining upon the |
| 3867 | death of the primary beneficiary or beneficiaries. |
| 3868 | (c) Notwithstanding the member's participant's designation |
| 3869 | of benefits to be paid through a trust to a beneficiary that is |
| 3870 | a natural person, and notwithstanding the provisions of the |
| 3871 | trust, benefits must shall be paid directly to the beneficiary |
| 3872 | if the person is no longer a minor or an incapacitated person as |
| 3873 | defined in s. 744.102. |
| 3874 | (21) PARTICIPATION BY TERMINATED DEFERRED RETIREMENT |
| 3875 | OPTION PROGRAM MEMBERS PARTICIPANTS.-Notwithstanding any other |
| 3876 | provision of law to the contrary, members participants in the |
| 3877 | Deferred Retirement Option Program offered under part I may, |
| 3878 | after conclusion of their participation in the program, elect to |
| 3879 | roll over or authorize a direct trustee-to-trustee transfer to |
| 3880 | an account under the investment plan Public Employee Optional |
| 3881 | Retirement Program of their Deferred Retirement Option Program |
| 3882 | proceeds distributed as provided under s. 121.091(13)(c)5. The |
| 3883 | transaction must constitute an "eligible rollover distribution" |
| 3884 | within the meaning of s. 402(c)(4) of the Internal Revenue Code. |
| 3885 | (a) The investment plan Public Employee Optional |
| 3886 | Retirement Program may accept such amounts for deposit into |
| 3887 | member participant accounts as provided in paragraph (5)(e)(c). |
| 3888 | (b) The affected member participant shall direct the |
| 3889 | investment of his or her investment account; however, unless he |
| 3890 | or she becomes a renewed member of the Florida Retirement System |
| 3891 | under s. 121.122 and elects to participate in the investment |
| 3892 | plan Public Employee Optional Retirement Program, no employer |
| 3893 | contributions may not be made to the member's participant's |
| 3894 | account as provided under paragraph (5)(a). |
| 3895 | (c) The state board or the department is not responsible |
| 3896 | for locating those persons who may be eligible to participate in |
| 3897 | the investment plan Public Employee Optional Retirement Program |
| 3898 | under this subsection. |
| 3899 | (22) CREDIT FOR MILITARY SERVICE.-Creditable service of |
| 3900 | any member of the investment plan includes Public Employee |
| 3901 | Optional Retirement Program shall include military service in |
| 3902 | the Armed Forces of the United States as provided in the |
| 3903 | conditions outlined in s. 121.111(1). |
| 3904 | Section 18. Section 121.4502, Florida Statutes, is amended |
| 3905 | to read: |
| 3906 | 121.4502 Florida Retirement System Investment Plan Public |
| 3907 | Employee Optional Retirement Program Trust Fund.- |
| 3908 | (1) The Florida Retirement System Investment Plan Public |
| 3909 | Employee Optional Retirement Program Trust Fund is created to |
| 3910 | hold the assets of the Florida Retirement System Investment Plan |
| 3911 | Public Employee Optional Retirement Program in trust for the |
| 3912 | exclusive benefit of such program's members participants and |
| 3913 | beneficiaries, and for the payment of reasonable administrative |
| 3914 | expenses of the program, in accordance with s. 401 of the |
| 3915 | Internal Revenue Code, and shall be administered by the state |
| 3916 | board of Administration as trustee. Funds shall be credited to |
| 3917 | the trust fund as provided in this part, to be used for the |
| 3918 | purposes of this part. The trust fund is exempt from the service |
| 3919 | charges imposed by s. 215.20. |
| 3920 | (2) The Florida Retirement System Investment Plan Public |
| 3921 | Employee Optional Retirement Program Trust Fund is a retirement |
| 3922 | trust fund of the Florida Retirement System that accounts for |
| 3923 | retirement plan assets held by the state in a trustee capacity |
| 3924 | as a fiduciary for individual participants in the Florida |
| 3925 | Retirement System Investment Plan Public Employee Optional |
| 3926 | Retirement Program and, pursuant to s. 19(f), Art. III of the |
| 3927 | State Constitution, is not subject to termination. |
| 3928 | (3) A forfeiture account shall be created within the |
| 3929 | Florida Retirement System Investment Plan Public Employee |
| 3930 | Optional Retirement Program Trust Fund to hold the assets |
| 3931 | derived from the forfeiture of benefits by participants. |
| 3932 | Pursuant to a private letter ruling from the Internal Revenue |
| 3933 | Service, the forfeiture account may be used only for paying |
| 3934 | expenses of the Florida Retirement System Investment Plan Public |
| 3935 | Employee Optional Retirement Program and reducing future |
| 3936 | employer contributions to the program. Consistent with Rulings |
| 3937 | 80-155 and 74-340 of the Internal Revenue Service, unallocated |
| 3938 | reserves within the forfeiture account must be used as quickly |
| 3939 | and as prudently as possible considering the state board's |
| 3940 | fiduciary duty. Expected withdrawals from the account must |
| 3941 | endeavor to reduce the account to zero each fiscal year. |
| 3942 | Section 19. Subsections (1) and (3) of section 121.4503, |
| 3943 | Florida Statutes, are amended to read: |
| 3944 | 121.4503 Florida Retirement System Contributions Clearing |
| 3945 | Trust Fund.- |
| 3946 | (1) The Florida Retirement System Contributions Clearing |
| 3947 | Trust Fund is created as a clearing fund for disbursing employee |
| 3948 | and employer contributions to the component plans of the Florida |
| 3949 | Retirement System and shall be administered by the Department of |
| 3950 | Management Services. Funds shall be credited to the trust fund |
| 3951 | as provided in this chapter and shall be held in trust for the |
| 3952 | contributing members and employers until such time as the assets |
| 3953 | are transferred by the department to the Florida Retirement |
| 3954 | System Trust Fund, the Florida Retirement System Investment Plan |
| 3955 | Public Employee Optional Retirement Program Trust Fund, or other |
| 3956 | trust funds as authorized by law, to be used for the purposes of |
| 3957 | this chapter. The trust fund is exempt from the service charges |
| 3958 | imposed by s. 215.20. |
| 3959 | (3) The Department of Management Services may adopt rules |
| 3960 | governing the receipt and disbursement of amounts received by |
| 3961 | the Florida Retirement System Contributions Clearing Trust Fund |
| 3962 | from employees and employers contributing to the component plans |
| 3963 | of the Florida Retirement System. |
| 3964 | Section 20. Section 121.571, Florida Statutes, is amended |
| 3965 | to read: |
| 3966 | 121.571 Contributions.-Contributions to the investment |
| 3967 | plan Public Employee Optional Retirement Program shall be made |
| 3968 | as follows: |
| 3969 | (1) CONTRIBUTORY NONCONTRIBUTORY PLAN.-Each member and |
| 3970 | employer shall submit accomplish the contributions as required |
| 3971 | by s. 121.71 by a procedure in which no employee's gross salary |
| 3972 | shall be reduced. |
| 3973 | (2) CONTRIBUTION RATES GENERALLY.-Contributions to fund |
| 3974 | the retirement and disability benefits provided under this part |
| 3975 | must shall be based on the uniform contribution rates |
| 3976 | established by s. 121.71 and on the membership class or subclass |
| 3977 | of the member participant. Such contributions must shall be |
| 3978 | allocated as provided in ss. 121.72 and 121.73. |
| 3979 | (3) CONTRIBUTIONS FOR SOCIAL SECURITY COVERAGE AND FOR |
| 3980 | RETIREE HEALTH INSURANCE SUBSIDY.-Contributions required under |
| 3981 | s. 121.71 are this section shall be in addition to employer and |
| 3982 | member contributions required for social security and the |
| 3983 | Retiree Health Insurance Subsidy Trust Fund as required under |
| 3984 | provided in ss. 112.363, 121.052, 121.055, and 121.071, as |
| 3985 | appropriate. |
| 3986 | Section 21. Section 121.591, Florida Statutes, is amended |
| 3987 | to read: |
| 3988 | 121.591 Payment of benefits payable under the Public |
| 3989 | Employee Optional Retirement Program of the Florida Retirement |
| 3990 | System.-Benefits may not be paid under the Florida Retirement |
| 3991 | System Investment Plan this section unless the member has |
| 3992 | terminated employment as provided in s. 121.021(39)(a) or is |
| 3993 | deceased and a proper application has been filed as in the |
| 3994 | manner prescribed by the state board or the department. Benefits |
| 3995 | are not payable under the investment plan before termination of |
| 3996 | employment as provided in s. 121.021(39)(a) for employee |
| 3997 | hardships, unforeseeable emergencies, loans, medical expenses, |
| 3998 | educational expenses, purchase of a principal residence, |
| 3999 | payments necessary to prevent eviction or foreclosure on an |
| 4000 | employee's principal residence, or any other reason prior to |
| 4001 | termination from all employment relationships with participating |
| 4002 | employers. The state board or department, as appropriate, may |
| 4003 | cancel an application for retirement benefits if when the member |
| 4004 | or beneficiary fails to timely provide the information and |
| 4005 | documents required by this chapter and the rules of the state |
| 4006 | board and department. In accordance with their respective |
| 4007 | responsibilities as provided herein, the state board of |
| 4008 | Administration and the department of Management Services shall |
| 4009 | adopt rules establishing procedures for application for |
| 4010 | retirement benefits and for the cancellation of such application |
| 4011 | if when the required information or documents are not received. |
| 4012 | The state board of Administration and the department of |
| 4013 | Management Services, as appropriate, are authorized to cash out |
| 4014 | a de minimis account of a member participant who has been |
| 4015 | terminated from Florida Retirement System covered employment for |
| 4016 | a minimum of 6 calendar months. A de minimis account is an |
| 4017 | account containing member and employer contributions and |
| 4018 | accumulated earnings of not more than $5,000 made under the |
| 4019 | provisions of this chapter. Such cash-out must either be a |
| 4020 | complete lump-sum liquidation of the account balance, subject to |
| 4021 | the provisions of the Internal Revenue Code, or a lump-sum |
| 4022 | direct rollover distribution paid directly to the custodian of |
| 4023 | an eligible retirement plan, as defined by the Internal Revenue |
| 4024 | Code, on behalf of the member participant. Any nonvested |
| 4025 | accumulations and associated service credit, including amounts |
| 4026 | transferred to the suspense account of the Florida Retirement |
| 4027 | System Investment Plan Trust Fund authorized under s. |
| 4028 | 121.4501(6), shall be forfeited upon payment of any vested |
| 4029 | benefit to a member or beneficiary, except for de minimis |
| 4030 | distributions or minimum required distributions as provided |
| 4031 | under this section. If any financial instrument issued for the |
| 4032 | payment of retirement benefits under this section is not |
| 4033 | presented for payment within 180 days after the last day of the |
| 4034 | month in which it was originally issued, the third-party |
| 4035 | administrator or other duly authorized agent of the state board |
| 4036 | of Administration shall cancel the instrument and credit the |
| 4037 | amount of the instrument to the suspense account of the Florida |
| 4038 | Retirement System Investment Plan Public Employee Optional |
| 4039 | Retirement Program Trust Fund authorized under s. 121.4501(6). |
| 4040 | Any such amounts transferred to the suspense account are payable |
| 4041 | upon a proper application, not to include earnings thereon, as |
| 4042 | provided in this section, within 10 years after the last day of |
| 4043 | the month in which the instrument was originally issued, after |
| 4044 | which time such amounts and any earnings attributable to |
| 4045 | employer contributions thereon shall be forfeited. Any such |
| 4046 | forfeited amounts are assets of the Florida Retirement System |
| 4047 | Investment Plan Public Employee Optional Retirement Program |
| 4048 | Trust Fund and are not subject to the provisions of chapter 717. |
| 4049 | (1) NORMAL BENEFITS.-Under the investment plan Public |
| 4050 | Employee Optional Retirement Program: |
| 4051 | (a) Benefits in the form of vested accumulations as |
| 4052 | described in s. 121.4501(6) are payable under this subsection in |
| 4053 | accordance with the following terms and conditions: |
| 4054 | 1. To the extent vested, Benefits are payable only to a |
| 4055 | member, an alternate payee of a qualified domestic relations |
| 4056 | order, or a beneficiary participant. |
| 4057 | 2. Benefits shall be paid by the third-party administrator |
| 4058 | or designated approved providers in accordance with the law, the |
| 4059 | contracts, and any applicable board rule or policy. |
| 4060 | 3. To receive benefits, The member participant must be |
| 4061 | terminated from all employment with all Florida Retirement |
| 4062 | System employers, as provided in s. 121.021(39). |
| 4063 | 4. Benefit payments may not be made until the member |
| 4064 | participant has been terminated for 3 calendar months, except |
| 4065 | that the state board may authorize by rule for the distribution |
| 4066 | of up to 10 percent of the member's participant's account after |
| 4067 | being terminated for 1 calendar month if the member participant |
| 4068 | has reached the normal retirement date as defined in s. 121.021 |
| 4069 | of the defined benefit plan. |
| 4070 | 5. If a member or former member of the Florida Retirement |
| 4071 | System receives an invalid distribution from the Public Employee |
| 4072 | Optional Retirement Program Trust Fund, such person must either |
| 4073 | repay the full amount invalid distribution to the trust fund |
| 4074 | within 90 days after receipt of final notification by the state |
| 4075 | board or the third-party administrator that the distribution was |
| 4076 | invalid, or, in lieu of repayment, the member must terminate |
| 4077 | employment from all participating employers. If such person |
| 4078 | fails to repay the full invalid distribution within 90 days |
| 4079 | after receipt of final notification, the person may be deemed |
| 4080 | retired from the investment plan optional retirement program by |
| 4081 | the state board, as provided pursuant to s. 121.4501(2)(k), and |
| 4082 | is subject to s. 121.122. If such person is deemed retired by |
| 4083 | the state board, any joint and several liability set out in s. |
| 4084 | 121.091(9)(d)2. is becomes null and void, and the state board, |
| 4085 | the department, or the employing agency is not liable for gains |
| 4086 | on payroll contributions that have not been deposited to the |
| 4087 | person's account in the investment plan retirement program, |
| 4088 | pending resolution of the invalid distribution. The member or |
| 4089 | former member who has been deemed retired or who has been |
| 4090 | determined by the state board to have taken an invalid |
| 4091 | distribution may appeal the agency decision through the |
| 4092 | complaint process as provided under s. 121.4501(9)(g)3. As used |
| 4093 | in this subparagraph, the term "invalid distribution" means any |
| 4094 | distribution from an account in the investment plan optional |
| 4095 | retirement program which is taken in violation of this section, |
| 4096 | s. 121.091(9), or s. 121.4501. |
| 4097 | (b) If a member participant elects to receive his or her |
| 4098 | benefits upon termination of employment as defined in s. |
| 4099 | 121.021, the member participant must submit a written |
| 4100 | application or an application by electronic means to the third- |
| 4101 | party administrator indicating his or her preferred distribution |
| 4102 | date and selecting an authorized method of distribution as |
| 4103 | provided in paragraph (c). The member participant may defer |
| 4104 | receipt of benefits until he or she chooses to make such |
| 4105 | application, subject to federal requirements. |
| 4106 | (c) Upon receipt by the third-party administrator of a |
| 4107 | properly executed application for distribution of benefits, the |
| 4108 | total accumulated benefit is shall be payable to the member pro |
| 4109 | rata across all Florida Retirement System benefit sources |
| 4110 | participant, as: |
| 4111 | 1. A lump-sum or partial distribution to the member |
| 4112 | participant; |
| 4113 | 2. A lump-sum direct rollover distribution whereby all |
| 4114 | accrued benefits, plus interest and investment earnings, are |
| 4115 | paid from the member's participant's account directly to the |
| 4116 | custodian of an eligible retirement plan, as defined in s. |
| 4117 | 402(c)(8)(B) of the Internal Revenue Code, on behalf of the |
| 4118 | member participant; or |
| 4119 | 3. Periodic distributions, as authorized by the state |
| 4120 | board. |
| 4121 | (d) The distribution payment method selected by the member |
| 4122 | or beneficiary, and the retirement of the member or beneficiary, |
| 4123 | shall be final and irrevocable at the time a benefit |
| 4124 | distribution payment is cashed, deposited, or transferred to |
| 4125 | another financial institution. Any additional service that |
| 4126 | remains unclaimed at retirement may not be claimed or purchased, |
| 4127 | and the type of retirement may not be changed, except that if a |
| 4128 | member recovers from a disability, the member may subsequently |
| 4129 | request benefits under subsection (2). |
| 4130 | (e) A member may not receive a distribution of employee |
| 4131 | contributions if a pending qualified domestic relations order is |
| 4132 | filed against the member's investment plan account. |
| 4133 | (2) DISABILITY RETIREMENT BENEFITS.-Benefits provided |
| 4134 | under this subsection are payable in lieu of the benefits that |
| 4135 | which would otherwise be payable under the provisions of |
| 4136 | subsection (1). Such benefits must shall be funded entirely from |
| 4137 | employer contributions made under s. 121.571, transferred |
| 4138 | employee contributions and participant funds accumulated |
| 4139 | pursuant to paragraph (a), and interest and earnings thereon. |
| 4140 | Pursuant thereto: |
| 4141 | (a) Transfer of funds.-To qualify to receive monthly |
| 4142 | disability benefits under this subsection: |
| 4143 | 1. All moneys accumulated in the member's participant's |
| 4144 | Public Employee Optional Retirement Program accounts, including |
| 4145 | vested and nonvested accumulations as described in s. |
| 4146 | 121.4501(6), must shall be transferred from such individual |
| 4147 | accounts to the division of Retirement for deposit in the |
| 4148 | disability account of the Florida Retirement System Trust Fund. |
| 4149 | Such moneys must shall be separately accounted for separately. |
| 4150 | Earnings must shall be credited on an annual basis for amounts |
| 4151 | held in the disability accounts of the Florida Retirement System |
| 4152 | Trust Fund based on actual earnings of the Florida Retirement |
| 4153 | System trust fund. |
| 4154 | 2. If the member participant has retained retirement |
| 4155 | credit he or she had earned under the pension plan defined |
| 4156 | benefit program of the Florida Retirement System as provided in |
| 4157 | s. 121.4501(3)(b), a sum representing the actuarial present |
| 4158 | value of such credit within the Florida Retirement System Trust |
| 4159 | Fund shall be reassigned by the division of Retirement from the |
| 4160 | pension plan defined benefit program to the disability program |
| 4161 | as implemented under this subsection and shall be deposited in |
| 4162 | the disability account of the Florida Retirement System trust |
| 4163 | fund. Such moneys must shall be separately accounted for |
| 4164 | separately. |
| 4165 | (b) Disability retirement; entitlement.- |
| 4166 | 1. A member participant of the investment plan Public |
| 4167 | Employee Optional Retirement Program who becomes totally and |
| 4168 | permanently disabled, as defined in paragraph (d) s. |
| 4169 | 121.091(4)(b), after completing 8 years of creditable service, |
| 4170 | or a member participant who becomes totally and permanently |
| 4171 | disabled in the line of duty regardless of his or her length of |
| 4172 | service, is shall be entitled to a monthly disability benefit as |
| 4173 | provided herein. |
| 4174 | 2. In order for service to apply toward the 8 years of |
| 4175 | creditable service required to vest for regular disability |
| 4176 | benefits, or toward the creditable service used in calculating a |
| 4177 | service-based benefit as provided for under paragraph (g), the |
| 4178 | service must be creditable service as described below: |
| 4179 | a. The member's participant's period of service under the |
| 4180 | investment plan shall Public Employee Optional Retirement |
| 4181 | Program will be considered creditable service, except as |
| 4182 | provided in subparagraph d. |
| 4183 | b. If the member participant has elected to retain credit |
| 4184 | for his or her service under the pension plan defined benefit |
| 4185 | program of the Florida Retirement System as provided under s. |
| 4186 | 121.4501(3)(b), all such service shall will be considered |
| 4187 | creditable service. |
| 4188 | c. If the member elects participant has elected to |
| 4189 | transfer to his or her member participant accounts a sum |
| 4190 | representing the present value of his or her retirement credit |
| 4191 | under the pension plan defined benefit program as provided under |
| 4192 | s. 121.4501(3)(c), the period of service under the pension plan |
| 4193 | defined benefit program represented in the present value amounts |
| 4194 | transferred shall will be considered creditable service for |
| 4195 | purposes of vesting for disability benefits, except as provided |
| 4196 | in subparagraph d. |
| 4197 | d. Whenever a member participant has terminated employment |
| 4198 | and has taken distribution of his or her funds as provided in |
| 4199 | subsection (1), all creditable service represented by such |
| 4200 | distributed funds is forfeited for purposes of this subsection. |
| 4201 | (c) Disability retirement effective date.-The effective |
| 4202 | retirement date for a member participant who applies and is |
| 4203 | approved for disability retirement shall be established as |
| 4204 | provided under s. 121.091(4)(a)2. and 3. |
| 4205 | (d) Total and permanent disability.-A member participant |
| 4206 | shall be considered totally and permanently disabled if, in the |
| 4207 | opinion of the division, he or she is prevented, by reason of a |
| 4208 | medically determinable physical or mental impairment, from |
| 4209 | rendering useful and efficient service as an officer or |
| 4210 | employee. |
| 4211 | (e) Proof of disability.-The division, Before approving |
| 4212 | payment of any disability retirement benefit, the division shall |
| 4213 | require proof that the member participant is totally and |
| 4214 | permanently disabled in the same manner as provided for members |
| 4215 | of the defined benefit program of the Florida Retirement System |
| 4216 | under s. 121.091(4)(c). |
| 4217 | (f) Disability retirement benefit.-Upon the disability |
| 4218 | retirement of a member participant under this subsection, the |
| 4219 | member participant shall receive a monthly benefit that begins |
| 4220 | accruing shall begin to accrue on the first day of the month of |
| 4221 | disability retirement, as approved by the division, and is shall |
| 4222 | be payable on the last day of that month and each month |
| 4223 | thereafter during his or her lifetime and continued disability. |
| 4224 | All disability benefits must payable to such member shall be |
| 4225 | paid out of the disability account of the Florida Retirement |
| 4226 | System Trust Fund established under this subsection. |
| 4227 | (g) Computation of disability retirement benefit.-The |
| 4228 | amount of each monthly payment must shall be calculated in the |
| 4229 | same manner as provided for members of the defined benefit |
| 4230 | program of the Florida Retirement System under s. 121.091(4)(f). |
| 4231 | For such purpose, Creditable service under both the pension plan |
| 4232 | defined benefit program and the investment plan Public Employee |
| 4233 | Optional Retirement Program of the Florida Retirement System |
| 4234 | shall be applicable as provided under paragraph (b). |
| 4235 | (h) Reapplication.-A member participant whose initial |
| 4236 | application for disability retirement is has been denied may |
| 4237 | reapply for disability benefits in the same manner, and under |
| 4238 | the same conditions, as provided for members of the defined |
| 4239 | benefit program of the Florida Retirement System under s. |
| 4240 | 121.091(4)(g). |
| 4241 | (i) Membership.-Upon approval of a member's an application |
| 4242 | for disability benefits under this subsection, the member |
| 4243 | applicant shall be transferred to the pension plan defined |
| 4244 | benefit program of the Florida Retirement System, effective upon |
| 4245 | his or her disability retirement effective date. |
| 4246 | (j) Option to cancel.-A member Any participant whose |
| 4247 | application for disability benefits is approved may cancel the |
| 4248 | his or her application if for disability benefits, provided that |
| 4249 | the cancellation request is received by the division before a |
| 4250 | disability retirement warrant has been deposited, cashed, or |
| 4251 | received by direct deposit. Upon such cancellation: |
| 4252 | 1. The member's participant's transfer to the pension plan |
| 4253 | defined benefit program under paragraph (i) shall be nullified; |
| 4254 | 2. The member participant shall be retroactively |
| 4255 | reinstated in the investment plan Public Employee Optional |
| 4256 | Retirement Program without hiatus; |
| 4257 | 3. All funds transferred to the Florida Retirement System |
| 4258 | Trust Fund under paragraph (a) must shall be returned to the |
| 4259 | member participant accounts from which the such funds were |
| 4260 | drawn; and |
| 4261 | 4. The member participant may elect to receive the benefit |
| 4262 | payable under the provisions of subsection (1) in lieu of |
| 4263 | disability benefits as provided under this subsection. |
| 4264 | (k) Recovery from disability.- |
| 4265 | 1. The division may require periodic reexaminations at the |
| 4266 | expense of the disability program account of the Florida |
| 4267 | Retirement System Trust Fund. Except as otherwise provided in |
| 4268 | subparagraph 2., the requirements, procedures, and restrictions |
| 4269 | relating to the conduct and review of such reexaminations, |
| 4270 | discontinuation or termination of benefits, reentry into |
| 4271 | employment, disability retirement after reentry into covered |
| 4272 | employment, and all other matters relating to recovery from |
| 4273 | disability shall be the same as provided are set forth under s. |
| 4274 | 121.091(4)(h). |
| 4275 | 2. Upon recovery from disability, the any recipient of |
| 4276 | disability retirement benefits under this subsection shall be a |
| 4277 | compulsory member of the investment plan Public Employee |
| 4278 | Optional Retirement Program of the Florida Retirement System. |
| 4279 | The net difference between the recipient's original account |
| 4280 | balance transferred to the Florida Retirement System Trust Fund, |
| 4281 | including earnings, under paragraph (a) and total disability |
| 4282 | benefits paid to such recipient, if any, shall be determined as |
| 4283 | provided in sub-subparagraph a. |
| 4284 | a. An amount equal to the total benefits paid shall be |
| 4285 | subtracted from that portion of the transferred account balance |
| 4286 | consisting of vested accumulations as described under s. |
| 4287 | 121.4501(6), if any, and an amount equal to the remainder of |
| 4288 | benefit amounts paid, if any, shall then be subtracted from any |
| 4289 | remaining portion consisting of nonvested accumulations as |
| 4290 | described under s. 121.4501(6). |
| 4291 | b. Amounts subtracted under sub-subparagraph a. must shall |
| 4292 | be retained within the disability account of the Florida |
| 4293 | Retirement System Trust Fund. Any remaining account balance |
| 4294 | shall be transferred to the third-party administrator for |
| 4295 | disposition as provided under sub-subparagraph c. or sub- |
| 4296 | subparagraph d., as appropriate. |
| 4297 | c. If the recipient returns to covered employment, |
| 4298 | transferred amounts must shall be deposited in individual |
| 4299 | accounts under the investment plan Public Employee Optional |
| 4300 | Retirement Program, as directed by the member participant. |
| 4301 | Vested and nonvested amounts shall be separately accounted for |
| 4302 | as provided in s. 121.4501(6). |
| 4303 | d. If the recipient fails to return to covered employment |
| 4304 | upon recovery from disability: |
| 4305 | (I) Any remaining vested amount must shall be deposited in |
| 4306 | individual accounts under the investment plan Public Employee |
| 4307 | Optional Retirement Program, as directed by the member |
| 4308 | participant, and is shall be payable as provided in subsection |
| 4309 | (1). |
| 4310 | (II) Any remaining nonvested amount must shall be held in |
| 4311 | a suspense account and is shall be forfeitable after 5 years as |
| 4312 | provided in s. 121.4501(6). |
| 4313 | 3. If present value was reassigned from the pension plan |
| 4314 | defined benefit program to the disability program of the Florida |
| 4315 | Retirement System as provided under subparagraph (a)2., the full |
| 4316 | present value amount must shall be returned to the defined |
| 4317 | benefit account within the Florida Retirement System Trust Fund |
| 4318 | and the member's affected individual's associated retirement |
| 4319 | credit under the pension plan must defined benefit program shall |
| 4320 | be reinstated in full. Any benefit based upon such credit must |
| 4321 | shall be calculated as provided in s. 121.091(4)(h)1. |
| 4322 | (l) Nonadmissible causes of disability.-A member is |
| 4323 | participant shall not be entitled to receive a disability |
| 4324 | retirement benefit if the disability results from any injury or |
| 4325 | disease sustained or inflicted as described in s. 121.091(4)(i). |
| 4326 | (m) Disability retirement of justice or judge by order of |
| 4327 | Supreme Court.- |
| 4328 | 1. If a member participant is a justice of the Supreme |
| 4329 | Court, judge of a district court of appeal, circuit judge, or |
| 4330 | judge of a county court who has served for 6 years or more as an |
| 4331 | elected constitutional judicial officer, including service as a |
| 4332 | judicial officer in any court abolished pursuant to Art. V of |
| 4333 | the State Constitution, and who is retired for disability by |
| 4334 | order of the Supreme Court upon recommendation of the Judicial |
| 4335 | Qualifications Commission pursuant to s. 12, the provisions of |
| 4336 | Art. V of the State Constitution, the member's participant's |
| 4337 | Option 1 monthly disability benefit amount as provided in s. |
| 4338 | 121.091(6)(a)1. shall be two-thirds of his or her monthly |
| 4339 | compensation as of the member's participant's disability |
| 4340 | retirement date. The member Such a participant may alternatively |
| 4341 | elect to receive an actuarially adjusted disability retirement |
| 4342 | benefit under any other option as provided in s. 121.091(6)(a), |
| 4343 | or to receive the normal benefit payable under the Public |
| 4344 | Employee Optional Retirement Program as set forth in subsection |
| 4345 | (1). |
| 4346 | 2. If any justice or judge who is a member participant of |
| 4347 | the investment plan Public Employee Optional Retirement Program |
| 4348 | of the Florida Retirement System is retired for disability by |
| 4349 | order of the Supreme Court upon recommendation of the Judicial |
| 4350 | Qualifications Commission pursuant to s. 12, the provisions of |
| 4351 | Art. V of the State Constitution and elects to receive a monthly |
| 4352 | disability benefit under the provisions of this paragraph: |
| 4353 | a. Any present value amount that was transferred to his or |
| 4354 | her investment plan program account and all employee and |
| 4355 | employer contributions made to such account on his or her |
| 4356 | behalf, plus interest and earnings thereon, must shall be |
| 4357 | transferred to and deposited in the disability account of the |
| 4358 | Florida Retirement System Trust Fund; and |
| 4359 | b. The monthly disability benefits payable under this |
| 4360 | paragraph for any affected justice or judge retired from the |
| 4361 | Florida Retirement System pursuant to Art. V of the State |
| 4362 | Constitution shall be paid from the disability account of the |
| 4363 | Florida Retirement System Trust Fund. |
| 4364 | (n) Death of retiree or beneficiary.-Upon the death of a |
| 4365 | disabled retiree or beneficiary of the retiree thereof who is |
| 4366 | receiving monthly disability benefits under this subsection, the |
| 4367 | monthly benefits shall be paid through the last day of the month |
| 4368 | of death and shall terminate, or be adjusted, if applicable, as |
| 4369 | of that date in accordance with the optional form of benefit |
| 4370 | selected at the time of retirement. The department of Management |
| 4371 | Services may adopt rules necessary to administer this paragraph. |
| 4372 | (3) DEATH BENEFITS.-Under the investment plan Public |
| 4373 | Employee Optional Retirement Program: |
| 4374 | (a) Survivor benefits are shall be payable in accordance |
| 4375 | with the following terms and conditions: |
| 4376 | 1. To the extent vested, benefits are shall be payable |
| 4377 | only to a member's participant's beneficiary or beneficiaries as |
| 4378 | designated by the member participant as provided in s. |
| 4379 | 121.4501(20). |
| 4380 | 2. Benefits shall be paid by the third-party administrator |
| 4381 | or designated approved providers in accordance with the law, the |
| 4382 | contracts, and any applicable state board rule or policy. |
| 4383 | 3. To receive benefits under this subsection, the member |
| 4384 | participant must be deceased. |
| 4385 | (b) In the event of a member's participant's death, all |
| 4386 | vested accumulations as described in s. 121.4501(6), less |
| 4387 | withholding taxes remitted to the Internal Revenue Service, |
| 4388 | shall be distributed, as provided in paragraph (c) or as |
| 4389 | described in s. 121.4501(20), as if the member participant |
| 4390 | retired on the date of death. No other death benefits are shall |
| 4391 | be available for survivors of members participants under the |
| 4392 | Public Employee Optional Retirement Program, except for such |
| 4393 | benefits, or coverage for such benefits, as are otherwise |
| 4394 | provided by law or are separately provided afforded by the |
| 4395 | employer, at the employer's discretion. |
| 4396 | (c) Upon receipt by the third-party administrator of a |
| 4397 | properly executed application for distribution of benefits, the |
| 4398 | total accumulated benefit is shall be payable by the third-party |
| 4399 | administrator to the member's participant's surviving |
| 4400 | beneficiary or beneficiaries, as: |
| 4401 | 1. A lump-sum distribution payable to the beneficiary or |
| 4402 | beneficiaries, or to the deceased member's participant's estate; |
| 4403 | 2. An eligible rollover distribution, if permitted, on |
| 4404 | behalf of the surviving spouse of a deceased member participant, |
| 4405 | whereby all accrued benefits, plus interest and investment |
| 4406 | earnings, are paid from the deceased member's participant's |
| 4407 | account directly to the custodian of an eligible retirement |
| 4408 | plan, as described in s. 402(c)(8)(B) of the Internal Revenue |
| 4409 | Code, on behalf of the surviving spouse; or |
| 4410 | 3. A partial lump-sum payment whereby a portion of the |
| 4411 | accrued benefit is paid to the deceased member's participant's |
| 4412 | surviving spouse or other designated beneficiaries, less |
| 4413 | withholding taxes remitted to the Internal Revenue Service, and |
| 4414 | the remaining amount is transferred directly to the custodian of |
| 4415 | an eligible retirement plan, if permitted, as described in s. |
| 4416 | 402(c)(8)(B) of the Internal Revenue Code, on behalf of the |
| 4417 | surviving spouse. The proportions must be specified by the |
| 4418 | member participant or the surviving beneficiary. |
| 4419 |
|
| 4420 | This paragraph does not abrogate other applicable provisions of |
| 4421 | state or federal law providing for payment of death benefits. |
| 4422 | (4) LIMITATION ON LEGAL PROCESS.-The benefits payable to |
| 4423 | any person under the investment plan Public Employee Optional |
| 4424 | Retirement Program, and any contributions accumulated under the |
| 4425 | investment plan such program, are not subject to assignment, |
| 4426 | execution, attachment, or any legal process, except for |
| 4427 | qualified domestic relations orders by a court of competent |
| 4428 | jurisdiction, income deduction orders as provided in s. 61.1301, |
| 4429 | and federal income tax levies. |
| 4430 | Section 22. Section 121.5911, Florida Statutes, is amended |
| 4431 | to read: |
| 4432 | 121.5911 Disability retirement program; qualified status; |
| 4433 | rulemaking authority.-It is the intent of the Legislature that |
| 4434 | the disability retirement program for members participants of |
| 4435 | the investment plan Public Employee Optional Retirement Program |
| 4436 | as created in this act must meet all applicable requirements of |
| 4437 | federal law for a qualified plan. The department of Management |
| 4438 | Services shall seek a private letter ruling from the Internal |
| 4439 | Revenue Service on the disability retirement program for |
| 4440 | participants of the Public Employee Optional Retirement Program. |
| 4441 | Consistent with the private letter ruling, the department of |
| 4442 | Management Services shall adopt any necessary rules necessary |
| 4443 | required to maintain the qualified status of the disability |
| 4444 | retirement program and the Florida Retirement System pension |
| 4445 | defined benefit plan. |
| 4446 | Section 23. Section 121.70, Florida Statutes, is amended |
| 4447 | to read: |
| 4448 | 121.70 Legislative purpose and intent.- |
| 4449 | (1) This part provides for a uniform system for funding |
| 4450 | benefits provided under the Florida Retirement System Pension |
| 4451 | Plan defined benefit program established under part I of this |
| 4452 | chapter (referred to in this part as the pension plan defined |
| 4453 | benefit program) and under the Florida Retirement System |
| 4454 | Investment Plan Public Employee Optional Retirement Program |
| 4455 | established under part II of this chapter (referred to in this |
| 4456 | part as the investment plan optional retirement program). The |
| 4457 | Legislature recognizes and declares that the Florida Retirement |
| 4458 | System is a single retirement system, consisting of two |
| 4459 | retirement plans and other nonintegrated programs. Employees and |
| 4460 | employers participating in the Florida Retirement System |
| 4461 | collectively shall be responsible for making contributions to |
| 4462 | support the benefits provided afforded under both plans. The |
| 4463 | employees and As provided in this part, employers participating |
| 4464 | in the Florida Retirement System shall make contributions based |
| 4465 | upon uniform contribution rates determined as a percentage of |
| 4466 | the employee's gross monthly compensation total payroll for the |
| 4467 | employee's each class or subclass of Florida Retirement System |
| 4468 | membership, irrespective of the which retirement plan in which |
| 4469 | the individual employee is enrolled employees may elect. This |
| 4470 | shall be known as a uniform or blended contribution rate system. |
| 4471 | (2) In establishing a uniform contribution rate system, it |
| 4472 | is the intent of the Legislature to: |
| 4473 | (a) Provide greater stability and certainty in financial |
| 4474 | planning and budgeting for Florida Retirement System employers |
| 4475 | by eliminating the fiscal instability that would be caused by |
| 4476 | dual rates coupled with employee-selected plan participation; |
| 4477 | (b) Provide greater fiscal equity and uniformity for |
| 4478 | system employers by effectively distributing the financial |
| 4479 | burden and benefit of short-term system deficits and surpluses, |
| 4480 | respectively, in proportion to total system payroll; and |
| 4481 | (c) Allow employees to make their retirement plan |
| 4482 | selection decisions free of circumstances that may cause |
| 4483 | employers to favor one plan choice over another. |
| 4484 | Section 24. Section 121.71, Florida Statutes, is amended |
| 4485 | to read: |
| 4486 | 121.71 Uniform rates; process; calculations; levy.- |
| 4487 | (1) In conducting the system actuarial study required |
| 4488 | under s. 121.031, the actuary shall follow all requirements |
| 4489 | specified thereunder to determine, by Florida Retirement System |
| 4490 | employee membership class, the dollar contribution amounts |
| 4491 | necessary for the next forthcoming fiscal year for the pension |
| 4492 | plan defined benefit program. In addition, the actuary shall |
| 4493 | determine, by Florida Retirement System membership class, based |
| 4494 | on an estimate for the next forthcoming fiscal year of the gross |
| 4495 | compensation of employees participating in the investment plan |
| 4496 | optional retirement program, the dollar contribution amounts |
| 4497 | necessary to make the allocations required under ss. 121.72 and |
| 4498 | 121.73. For each employee membership class and subclass, the |
| 4499 | actuarial study must shall establish a uniform rate necessary to |
| 4500 | fund the benefit obligations under both Florida Retirement |
| 4501 | System retirement plans by dividing the sum of total dollars |
| 4502 | required by the estimated gross compensation of members in both |
| 4503 | plans. |
| 4504 | (2) Based on the uniform rates set forth in subsections |
| 4505 | subsection (3), (4), and (5), employees and employers shall make |
| 4506 | monthly contributions to the Division of Retirement as required |
| 4507 | in s. 121.061(1), which shall initially deposit the funds into |
| 4508 | the Florida Retirement System Contributions Clearing Trust Fund. |
| 4509 | A change in a contribution rate is effective the first day of |
| 4510 | the month for which a full month's employee and employer |
| 4511 | contribution may be made on or after the beginning date of the |
| 4512 | change. Beginning July 1, 2011, each employee shall contribute |
| 4513 | the contributions required in subsection (3). The employer shall |
| 4514 | deduct the contribution from the employee's monthly salary, and |
| 4515 | the contribution shall be submitted to the Division of |
| 4516 | Retirement. These contributions shall be reported as employer- |
| 4517 | paid employee contributions, and shall be credited to the |
| 4518 | account of the employee. The contributions shall be deducted |
| 4519 | from the employee's salary before the computation of applicable |
| 4520 | federal taxes and shall be treated as employer contributions |
| 4521 | under 26 U.S.C. s. 414(h)(2). The employee specifies that the |
| 4522 | contributions, although designated as employee contributions, |
| 4523 | are being paid by the employer in lieu of contributions by the |
| 4524 | employee. The employee shall not have the option of choosing to |
| 4525 | receive the contributed amounts directly instead of having them |
| 4526 | paid by the employer to the plan. Such contributions are |
| 4527 | mandatory and each employee shall be considered to consent to |
| 4528 | payroll deductions. Payment of an employee's salary or wages, |
| 4529 | less the contribution, is a full and complete discharge and |
| 4530 | satisfaction of all claims and demands for the service rendered |
| 4531 | by employees during the period covered by the payment, except |
| 4532 | their claims to the benefits to which they may be entitled under |
| 4533 | the provisions of this chapter. |
| 4534 | (3) Required employee retirement contribution rates for |
| 4535 | each membership class of the Florida Retirement System for both |
| 4536 | retirement plans are as follows: |
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 |
|
| 4537 |
|
| | |
| 4538 |
|
| | |
| 4539 |
|
| | | Special Risk Administrative Support Class | 3.00% |
|
| 4540 |
|
| | | Elected Officers' Class | 3.00% |
|
| 4541 |
|
| | | Senior Management Class | 3.00% |
|
| 4542 |
|
| | |
| 4543 |
|
| 4544 | (4)(3) Required employer retirement contribution rates for |
| 4545 | each membership class and subclass of the Florida Retirement |
| 4546 | System for both retirement plans are as follows: |
| 4547 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
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| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 2009 |
|
| | | Membership Class |
| Percentage of Gross Compensation, Effective July 1, 2012 2010 |
|
| 4548 |
|
| | |
| 4549 |
|
| | | Regular Class | 6.16% 8.69% | 6.16% 9.63% |
|
| 4550 |
|
| | | Special Risk Class | 16.95% 19.76% | 16.95% 22.11% |
|
| 4551 |
|
| | | Special Risk Administrative Support Class | 7.23% 11.39% | 7.23% 12.10% |
|
| 4552 |
|
| | | Elected Officers' Class- Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders | 10.76% 13.32% | 10.76% 15.20% |
|
| 4553 |
|
| | | Elected Officers' Class- Justices, Judges | 15.19% 18.40% | 15.19% 20.65% |
|
| 4554 |
|
| | | Elected Officers' Class- County Elected Officers | 13.08% 15.37% | 13.08% 17.50% |
|
| 4555 |
|
| | | Senior Management Class | 8.14% 11.96% | 8.14% 13.43% |
|
| 4556 |
|
| | | DROP | 3.50% 9.80% | 3.50% 11.14% |
|
| 4557 |
|
| 4558 | (5) In order to address unfunded actuarial liabilities of |
| 4559 | the system, the required employer retirement contribution rates |
| 4560 | for each membership class and subclass of the Florida Retirement |
| 4561 | System for both retirement plans are as follows: |
| 4562 |
|
| | | Membership Class | Percentage of Gross Compensation, Effective July 1, 2011 | Percentage of Gross Compensation, Effective July 1, 2012 |
|
| 4563 |
|
| | |
| 4564 |
|
| | |
| 4565 |
|
| | | Special Risk Class | 1.17% | 6.88% |
|
| 4566 |
|
| | | Special Risk Administrative Support Class | 0.59% | 20.13% |
|
| 4567 |
|
| | | Elected Officers' Class- Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders | 0.51% | 20.55% |
|
| 4568 |
|
| | | Elected Officers' Class- Justices, Judges | 0.39% | 12.05% |
|
| 4569 |
|
| | | Elected Officers' Class- County Elected Officers | 0.42% | 20.70% |
|
| 4570 |
|
| | | Senior Management Class | 0.05% | 10.00% |
|
| 4571 |
|
| | |
| 4572 |
|
| 4573 | (6) If a member is reported under an incorrect membership |
| 4574 | class and the amount of contributions reported and remitted are |
| 4575 | less than the amount required, the employer shall owe the |
| 4576 | difference, plus the delinquent fee, of 1 percent for each |
| 4577 | calendar month or part thereof that the contributions should |
| 4578 | have been paid. This delinquent assessment may not be waived. If |
| 4579 | the contributions reported and remitted are more than the amount |
| 4580 | required, the employer shall receive a credit to be applied |
| 4581 | against future contributions owed. |
| 4582 | (7)(4) The state actuary shall recognize and use an |
| 4583 | appropriate level of available excess assets of the Florida |
| 4584 | Retirement System Trust Fund to offset the difference between |
| 4585 | the normal costs of the Florida Retirement System and the |
| 4586 | statutorily prescribed contribution rates. |
| 4587 | Section 25. Section 121.72, Florida Statutes, is amended |
| 4588 | to read: |
| 4589 | 121.72 Allocations to investment plan member optional |
| 4590 | retirement program participant accounts; percentage amounts.- |
| 4591 | (1) The allocations established in subsection (4) shall |
| 4592 | fund retirement benefits under the investment plan optional |
| 4593 | retirement program and shall be transferred monthly by the |
| 4594 | Division of Retirement from the Florida Retirement System |
| 4595 | Contributions Clearing Trust Fund to the third-party |
| 4596 | administrator for deposit in each participating employee's |
| 4597 | individual account based on the membership class of the |
| 4598 | participant. |
| 4599 | (2) The allocations are stated as a percentage of each |
| 4600 | investment plan member's optional retirement program |
| 4601 | participant's gross compensation for the calendar month. A |
| 4602 | change in a contribution percentage is effective the first day |
| 4603 | of the month for which retirement contributions a full month's |
| 4604 | employer contribution may be made on or after the beginning date |
| 4605 | of the change. Contribution percentages may be modified by |
| 4606 | general law. |
| 4607 | (3) Employer and employee participant contributions to |
| 4608 | member participant accounts shall be accounted for separately. |
| 4609 | Participant contributions may be made only if expressly |
| 4610 | authorized by law. Interest and investment earnings on |
| 4611 | contributions shall accrue on a tax-deferred basis until |
| 4612 | proceeds are distributed. |
| 4613 | (4) Effective July 1, 2002, allocations from the Florida |
| 4614 | Retirement System Contributions Clearing Trust Fund to |
| 4615 | investment plan member optional retirement program participant |
| 4616 | accounts shall be as follows: |
| 4617 |
|
| | | Membership Class | Percentage of Gross Compensation |
|
| 4618 |
|
| | |
| 4619 |
|
| | |
| 4620 |
|
| | |
| 4621 |
|
| | | Special Risk Administrative Support Class | 11.35% |
|
| 4622 |
|
| | | Elected Officers' Class- Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders | 13.40% |
|
| 4623 |
|
| | | Elected Officers' Class- Justices, Judges | 18.90% |
|
| 4624 |
|
| | | Elected Officers' Class- County Elected Officers | 16.20% |
|
| 4625 |
|
| | | Senior Management Service Class | 10.95% |
|
| 4626 |
|
| 4627 | Section 26. Section 121.73, Florida Statutes, is amended |
| 4628 | to read: |
| 4629 | 121.73 Allocations for member optional retirement program |
| 4630 | participant disability coverage; percentage amounts.- |
| 4631 | (1) The allocations established in subsection (3) shall be |
| 4632 | used to provide disability coverage for members participants in |
| 4633 | the investment plan optional retirement program and shall be |
| 4634 | transferred monthly by the Division of Retirement from the |
| 4635 | Florida Retirement System Contributions Clearing Trust Fund to |
| 4636 | the disability account of the Florida Retirement System Trust |
| 4637 | Fund. |
| 4638 | (2) The allocations are stated as a percentage of each |
| 4639 | investment plan member's optional retirement program |
| 4640 | participant's gross compensation for the calendar month. A |
| 4641 | change in a contribution percentage is effective the first day |
| 4642 | of the month for which retirement contributions a full month's |
| 4643 | employer contribution may be made on or after the beginning date |
| 4644 | of the change. Contribution percentages may be modified by |
| 4645 | general law. |
| 4646 | (3) Effective July 1, 2002, allocations from the Florida |
| 4647 | Retirement System Contributions FRS Contribution Clearing Trust |
| 4648 | Fund to provide disability coverage for members participants in |
| 4649 | the investment plan optional retirement program, and to offset |
| 4650 | the costs of administering said coverage, shall be as follows: |
| 4651 |
|
| | | Membership Class | Percentage of Gross Compensation |
|
| 4652 |
|
| | |
| 4653 |
|
| | |
| 4654 |
|
| | |
| 4655 |
|
| | | Special Risk Administrative Support Class | 0.45% |
|
| 4656 |
|
| | | Elected Officers' Class- Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders | 0.41% |
|
| 4657 |
|
| | | Elected Officers' Class- Justices, Judges | 0.73% |
|
| 4658 |
|
| | | Elected Officers' Class- County Elected Officers | 0.41% |
|
| 4659 |
|
| | | Senior Management Service Class | 0.26% |
|
| 4660 |
|
| 4661 | Section 27. Section 121.74, Florida Statutes, is amended |
| 4662 | to read: |
| 4663 | 121.74 Administrative and educational expenses.-In |
| 4664 | addition to contributions required under ss. s. 121.71 and |
| 4665 | 121.73, effective July 1, 2010, through June 30, 2014, employers |
| 4666 | participating in the Florida Retirement System shall contribute |
| 4667 | an amount equal to 0.03 percent of the payroll reported for each |
| 4668 | class or subclass of Florida Retirement System membership.; |
| 4669 | Effective July 1, 2014, the contribution rate shall be 0.04 |
| 4670 | percent of the payroll reported for each class or subclass of |
| 4671 | membership. The amount contributed shall be transferred by the |
| 4672 | Division of Retirement from the Florida Retirement System |
| 4673 | Contributions Clearing Trust Fund to the State Board of |
| 4674 | Administration's Administrative Trust Fund to offset the costs |
| 4675 | of administering the investment plan optional retirement program |
| 4676 | and the costs of providing educational services to members of |
| 4677 | the Florida Retirement System participants in the defined |
| 4678 | benefit program and the optional retirement program. Approval of |
| 4679 | the trustees is required before the expenditure of these funds. |
| 4680 | Payments for third-party administrative or educational expenses |
| 4681 | shall be made only pursuant to the terms of the approved |
| 4682 | contracts for such services. |
| 4683 | Section 28. Section 121.75, Florida Statutes, is amended |
| 4684 | to read: |
| 4685 | 121.75 Allocation for pension plan defined benefit |
| 4686 | program.-After making the transfers required pursuant to ss. |
| 4687 | 121.71, 121.72, 121.73, and 121.74, the monthly balance of funds |
| 4688 | in the Florida Retirement System Contributions Clearing Trust |
| 4689 | Fund shall be transferred to the Florida Retirement System Trust |
| 4690 | Fund to pay the costs of providing pension plan defined benefit |
| 4691 | program benefits and plan administrative costs under the pension |
| 4692 | plan defined benefit program. |
| 4693 | Section 29. Section 121.77, Florida Statutes, is amended |
| 4694 | to read: |
| 4695 | 121.77 Deductions from member participant accounts.-The |
| 4696 | State Board of Administration may authorize the third-party |
| 4697 | administrator to deduct reasonable fees and apply appropriate |
| 4698 | charges to investment plan member optional retirement program |
| 4699 | participant accounts. In no event may shall administrative and |
| 4700 | educational expenses exceed the portion of employer |
| 4701 | contributions earmarked for such expenses under this part, |
| 4702 | except for reasonable administrative charges assessed against |
| 4703 | member participant accounts of persons for whom no employer |
| 4704 | contributions are made during the calendar quarter. Investment |
| 4705 | management fees shall be deducted from member participant |
| 4706 | accounts, pursuant to the terms of the contract between the |
| 4707 | provider and the board. |
| 4708 | Section 30. Section 121.78, Florida Statutes, is amended |
| 4709 | to read: |
| 4710 | 121.78 Payment and distribution of contributions.- |
| 4711 | (1) Contributions made pursuant to this part shall be paid |
| 4712 | by the employer, including the employee contribution, to the |
| 4713 | Division of Retirement by electronic funds transfer no later |
| 4714 | than the 5th working day of the month immediately following the |
| 4715 | month during which the payroll period ended. Accompanying |
| 4716 | payroll data must be transmitted to the division concurrent with |
| 4717 | the contributions. |
| 4718 | (2) The division, the State Board of Administration, and |
| 4719 | the third-party administrator, as applicable, shall ensure that |
| 4720 | the contributions are distributed to the appropriate trust funds |
| 4721 | or participant accounts in a timely manner. |
| 4722 | (3)(a) Employee and employer contributions and |
| 4723 | accompanying payroll data received after the 5th working day of |
| 4724 | the month are considered late. The employer shall be assessed by |
| 4725 | the Division of Retirement a penalty of 1 percent of the |
| 4726 | contributions due for each calendar month or part thereof that |
| 4727 | the contributions or accompanying payroll data are late. |
| 4728 | Proceeds from the 1-percent assessment against contributions |
| 4729 | made on behalf of members participants of the pension plan must |
| 4730 | defined benefit program shall be deposited in the Florida |
| 4731 | Retirement System Trust Fund, and proceeds from the 1-percent |
| 4732 | assessment against contributions made on behalf of members |
| 4733 | participants of the investment plan optional retirement program |
| 4734 | shall be transferred to the third-party administrator for |
| 4735 | deposit into member participant accounts, as provided in |
| 4736 | paragraph (c) (b). |
| 4737 | (b) Retirement contributions paid for a prior period shall |
| 4738 | be charged a delinquent fee of 1 percent for each calendar month |
| 4739 | or part thereof that the contributions should have been paid. |
| 4740 | This includes prior period contributions due to incorrect wages |
| 4741 | and contributions from an earlier report or wages and |
| 4742 | contributions that should have been reported but were not. The |
| 4743 | delinquent assessments may not be waived. |
| 4744 | (c)(b) If employee contributions or contributions made by |
| 4745 | an employer on behalf of members participants of the investment |
| 4746 | plan optional retirement program or accompanying payroll data |
| 4747 | are not received within the calendar month they are due, |
| 4748 | including, but not limited to, contribution adjustments as a |
| 4749 | result of employer errors or corrections, and if that |
| 4750 | delinquency results in market losses to members participants, |
| 4751 | the employer shall reimburse each member's participant's account |
| 4752 | for market losses resulting from the late contributions. If a |
| 4753 | member participant has terminated employment and taken a |
| 4754 | distribution, the member participant is responsible for |
| 4755 | returning any excess contributions erroneously provided by |
| 4756 | employers, adjusted for any investment gain or loss incurred |
| 4757 | during the period such excess contributions were in the member's |
| 4758 | participant's account. The state board or its designated agent |
| 4759 | shall communicate to terminated members participants any |
| 4760 | obligation to repay such excess contribution amounts. However, |
| 4761 | the state board, its designated agents, the Florida Retirement |
| 4762 | System Investment Plan Public Employee Optional Retirement |
| 4763 | Program Trust Fund, the department, or the Florida Retirement |
| 4764 | System Trust Fund may not incur any loss or gain as a result of |
| 4765 | an employer's correction of such excess contributions. The |
| 4766 | third-party administrator, hired by the state board pursuant to |
| 4767 | s. 121.4501(8), shall calculate the market losses for each |
| 4768 | affected member participant. If contributions made on behalf of |
| 4769 | members participants of the investment plan optional retirement |
| 4770 | program or accompanying payroll data are not received within the |
| 4771 | calendar month due, the employer shall also pay the cost of the |
| 4772 | third-party administrator's calculation and reconciliation |
| 4773 | adjustments resulting from the late contributions. The third- |
| 4774 | party administrator shall notify the employer of the results of |
| 4775 | the calculations and the total amount due from the employer for |
| 4776 | such losses and the costs of calculation and reconciliation. The |
| 4777 | employer shall remit to the Division of Retirement the amount |
| 4778 | due within 30 working days after the date of the penalty notice |
| 4779 | sent by the division. The division shall transfer that amount to |
| 4780 | the third-party administrator, which shall deposit proceeds from |
| 4781 | the 1-percent assessment and from individual market losses into |
| 4782 | member participant accounts, as appropriate. The state board may |
| 4783 | adopt rules to administer the provisions regarding late |
| 4784 | contributions, late submission of payroll data, the process for |
| 4785 | reimbursing member participant accounts for resultant market |
| 4786 | losses, and the penalties charged to the employers. |
| 4787 | (d) If employee contributions reported by an employer on |
| 4788 | behalf of members are reduced as a result of employer errors or |
| 4789 | corrections, and the member has terminated employment and taken |
| 4790 | a refund or distribution, the employer shall be billed and is |
| 4791 | responsible for recovering from the member any excess |
| 4792 | contributions erroneously provided by the employer. |
| 4793 | (e)(c) Delinquency fees specified in paragraph (a) may be |
| 4794 | waived by the Division of Retirement, with regard to pension |
| 4795 | plan defined benefit program contributions, and by the state |
| 4796 | board, with regard to investment plan optional retirement |
| 4797 | program contributions, only if, in the opinion of the division |
| 4798 | or the board, as appropriate, exceptional circumstances beyond |
| 4799 | the employer's control prevented remittance by the prescribed |
| 4800 | due date notwithstanding the employer's good faith efforts to |
| 4801 | effect delivery. Such a waiver of delinquency may be granted an |
| 4802 | employer only once each plan state fiscal year. |
| 4803 | (f) If the employer submits excess employer or employee |
| 4804 | contributions, the employer shall receive a credit to be applied |
| 4805 | against future contributions owed. The employer is responsible |
| 4806 | for reimbursing the member for any excess contributions |
| 4807 | submitted if any return of such an erroneous excess pretax |
| 4808 | contribution by the program is made within 1 year after making |
| 4809 | erroneous contributions or such other period allowed under |
| 4810 | applicable Internal Revenue guidance. |
| 4811 | (g)(d) If contributions made by an employer on behalf of |
| 4812 | members participants in the investment plan optional retirement |
| 4813 | program are delayed in posting to member participant accounts |
| 4814 | due to acts of God beyond the control of the Division of |
| 4815 | Retirement, the state board, or the third-party administrator, |
| 4816 | as applicable, market losses resulting from the late |
| 4817 | contributions are not payable to the members participants. |
| 4818 | Section 31. (1) Effective upon this act becoming a law, |
| 4819 | the State Board of Administration and the Department of |
| 4820 | Management Services shall request, as soon as practicable, a |
| 4821 | determination letter and private letter ruling from the United |
| 4822 | States Internal Revenue Service. If the United States Internal |
| 4823 | Revenue Service refuses to act upon a request for a private |
| 4824 | letter ruling, then a legal opinion from a qualified tax |
| 4825 | attorney or firm may be substituted for such private letter |
| 4826 | ruling. |
| 4827 | (2) If the board or the department receives notification |
| 4828 | from the United States Internal Revenue Service that this act or |
| 4829 | any portion of this act will cause the Florida Retirement |
| 4830 | System, or a portion thereof, to be disqualified for tax |
| 4831 | purposes under the Internal Revenue Code, then the portion that |
| 4832 | will cause the disqualification does not apply. Upon such |
| 4833 | notice, the state board and the department shall notify the |
| 4834 | presiding officers of the Legislature. |
| 4835 | Section 32. The Legislature finds that a proper and |
| 4836 | legitimate state purpose is served when employees and retirees |
| 4837 | of the state and its political subdivisions, and the dependents, |
| 4838 | survivors, and beneficiaries of such employees and retirees, are |
| 4839 | extended the basic protections afforded by governmental |
| 4840 | retirement systems. These persons must be provided benefits that |
| 4841 | are fair and adequate and that are managed, administered, and |
| 4842 | funded in an actuarially sound manner, as required by s. 14, |
| 4843 | Article X of the State Constitution and part VII of chapter 112, |
| 4844 | Florida Statutes. Therefore, the Legislature determines and |
| 4845 | declares that this act fulfills an important state interest. |
| 4846 | Section 33. For the 2011-2012 fiscal year, the sums of |
| 4847 | $207,070 of recurring funds and $31,184 of nonrecurring funds |
| 4848 | from the Florida Retirement System Operating Trust Fund are |
| 4849 | appropriated to, and four full-time equivalent positions are |
| 4850 | authorized for, the Division of Retirement within the Department |
| 4851 | of Management Services for the purpose of implementing this act. |
| 4852 | Section 34. Except as otherwise expressly provided in this |
| 4853 | act, this act shall take effect July 1, 2011. |
