Bill Text: FL S1114 | 2014 | Regular Session | Engrossed
Bill Title: Retirement
Spectrum: Committee Bill
Status: (Introduced - Dead) 2014-05-02 - Died on Calendar, companion bill(s) passed, see HB 5005 (Ch. 2014-54) [S1114 Detail]
Download: Florida-2014-S1114-Engrossed.html
CS for CS for SB 1114 First Engrossed
20141114e1
1 A bill to be entitled
2 An act relating to retirement; amending s. 121.021,
3 F.S.; revising the definition of “vested” or “vesting”
4 to provide that a member initially enrolled in the
5 Florida Retirement System after a certain date is
6 vested in the pension plan after completing 10 years
7 of creditable service; amending s. 121.051, F.S.;
8 providing for compulsory membership in the Florida
9 Retirement System Investment Plan for certain members
10 of the Elected Officers’ Class initially enrolled
11 after a certain date; amending s. 121.052, F.S.;
12 differentiating between cabinet members and judicial
13 members of the Elected Officers Class; prohibiting
14 members of the Elected Officers’ Class from joining
15 the Senior Management Service Class after a specified
16 date; amending s. 121.053, F.S.; authorizing renewed
17 membership in the retirement system for retirees who
18 are reemployed in a position eligible for the Elected
19 Officers’ Class under certain circumstances; amending
20 s. 121.055, F.S.; limiting the options of elected
21 officers employed after a certain date to enroll in
22 the Senior Management Service Class or in the Senior
23 Management Service Optional Annuity Program; closing
24 the Senior Management Optional Annuity Program to new
25 members after a specified date; amending s. 121.091,
26 F.S.; providing that certain members are entitled to a
27 monthly disability benefit; revising provisions to
28 conform to changes made by the act; amending s.
29 121.122, F.S.; requiring that certain retirees who are
30 employed on or after a specified date be renewed
31 members in the investment plan; providing exceptions;
32 providing that creditable service does not accrue for
33 a reemployed retiree during a specified period;
34 prohibiting certain funds from being paid into a
35 renewed member’s investment plan account for a
36 specified period of employment; requiring the renewed
37 member to satisfy vesting requirements; prohibiting a
38 renewed member from receiving disability benefits;
39 specifying requirements and limitations; requiring the
40 employer and the retiree to make applicable
41 contributions to the member’s investment plan account;
42 providing for the administration of the employer and
43 employee contributions; prohibiting the purchase of
44 past service in the investment plan during certain
45 dates; authorizing a renewed member to receive
46 additional credit toward the health insurance subsidy
47 under certain circumstances; providing that a retiree
48 employed on or after a specified date in a regularly
49 established position eligible for the State University
50 System Optional Retirement Program is a renewed member
51 of that program; specifying requirements and
52 limitations; requiring the employer and the retiree to
53 make applicable contributions; prohibiting the
54 purchase of past service in the program during certain
55 dates; providing that a retiree employed on or after a
56 specified date in a regularly established position
57 eligible for the State Community College System
58 Optional Retirement Program is a renewed member of
59 that program; specifying requirements and limitations;
60 requiring the employer and the retiree to make
61 applicable contributions; prohibiting the purchase of
62 past service in the program for certain dates;
63 amending s. 121.35, F.S.; providing that certain
64 participants in the optional retirement program for
65 the State University System have a choice between the
66 optional retirement program and the Florida Retirement
67 System Investment Plan; amending s. 121.4501, F.S.;
68 requiring certain employees initially enrolled in the
69 Florida Retirement System on or after a specified date
70 to be compulsory members of the investment plan;
71 revising the definition of the terms “eligible
72 employee” and “member” or “employee”; revising a
73 provision relating to acknowledgment of an employee’s
74 election to participate in the investment plan;
75 placing certain employees in the pension plan from
76 their respective dates of hire until they are
77 automatically enrolled in the investment plan or
78 timely elect enrollment in the pension plan;
79 authorizing certain employees to elect to participate
80 in the pension plan, rather than the default
81 investment plan, within a specified time; specifying
82 that a retiree who has returned to covered employment
83 before a specified date may continue membership in his
84 or her selected retirement plan; conforming a
85 provision to changes made by the act; providing for
86 the transfer of certain contributions; revising the
87 education component; deleting the obligation of system
88 employers to communicate the existence of both
89 retirement plans; conforming provisions and cross
90 references to changes made by the act; amending s.
91 121.591, F.S.; revising provisions relating to
92 disability retirement benefits; amending ss. 238.072
93 and 413.051, F.S.; conforming cross-references;
94 requiring the State Board of Administration and
95 Department of Management Services to request a
96 determination letter from the Internal Revenue Service
97 as to whether any provision under the act will cause
98 the Florida Retirement System to be disqualified for
99 tax purposes and, if so, to notify the Legislature;
100 requiring the board and department to also seek
101 guidance regarding the consequences of differing tax
102 contributions; requiring the Department of Management
103 Services to conduct an actuarial study to determine
104 the costs of providing a new death benefit through the
105 pension plan for the families of members of the
106 investment plan killed in the line of duty and provide
107 the results of the study to the Governor and the
108 Legislature by a certain date; providing that the act
109 fulfills an important state interest; providing an
110 effective date.
111
112 Be It Enacted by the Legislature of the State of Florida:
113
114 Section 1. Subsection (45) of section 121.021, Florida
115 Statutes, is amended to read:
116 121.021 Definitions.—The following words and phrases as
117 used in this chapter have the respective meanings set forth
118 unless a different meaning is plainly required by the context:
119 (45) “Vested” or “vesting” means the guarantee that a
120 member is eligible to receive a future retirement benefit upon
121 completion of the required years of creditable service for the
122 employee’s class of membership, even though the member may have
123 terminated covered employment before reaching normal or early
124 retirement date. Being vested does not entitle a member to a
125 disability benefit. Provisions governing entitlement to
126 disability benefits are set forth under s. 121.091(4).
127 (a) Effective July 1, 2001, through June 30, 2011, a 6-year
128 vesting requirement shall be implemented for the Florida
129 Retirement System Pension Plan:
130 1. Any member employed in a regularly established position
131 on July 1, 2001, who completes or has completed a total of 6
132 years of creditable service is considered vested.
133 2. Any member initially enrolled in the Florida Retirement
134 System before July 1, 2001, but not employed in a regularly
135 established position on July 1, 2001, shall be deemed vested
136 upon completion of 6 years of creditable service if such member
137 is employed in a covered position for at least 1 work year after
138 July 1, 2001. However, a member is not required to complete more
139 years of creditable service than would have been required for
140 that member to vest under retirement laws in effect before July
141 1, 2001.
142 3. Any member initially enrolled in the Florida Retirement
143 System on July 1, 2001, through June 30, 2011, shall be deemed
144 vested upon completion of 6 years of creditable service.
145 (b) Any member initially enrolled in the Florida Retirement
146 System on or after July 1, 2011, through June 30, 2015, shall be
147 vested in the pension plan upon completion of 8 years of
148 creditable service.
149 (c) Any member initially enrolled in the Florida Retirement
150 System on or after July 1, 2015, shall be vested in the pension
151 plan upon completion of 10 years of creditable service.
152 Section 2. Present subsections (3) through (9) of section
153 121.051, Florida Statutes, are renumbered as subsections (4)
154 through (10), respectively, and a new subsection (3) is added to
155 that section, to read:
156 121.051 Participation in the system.—
157 (3) COMPULSORY INVESTMENT PLAN MEMBERSHIP.—Except for
158 members of the Elected Officers’ Class who withdraw from the
159 Florida Retirement System under s. 121.052(3)(d) or elect to
160 participate in an optional retirement program under s.
161 121.051(1)(a), s. 121.051(2)(c), or s. 121.35, or are described
162 in s. 121.052(2)(a)2. or s. 121.052(2)(b), employees initially
163 enrolled in the Florida Retirement System on or after July 1,
164 2015, and whose first employment in a regularly established
165 position is covered by the Elected Officers’ Class are
166 compulsory members of the investment plan. Investment plan
167 membership continues for a compulsory member even if the
168 employee is subsequently employed in a position covered by
169 another membership class. Membership in the pension plan by a
170 compulsory member is not permitted except as provided in s.
171 121.591(2).
172 (a) Employees initially enrolled in the Florida Retirement
173 System before July 1, 2015, may retain their membership in the
174 pension plan or investment plan and are eligible to use the
175 election opportunity specified in s. 121.4501(4)(f). Compulsory
176 members are not eligible to use the election opportunity.
177 (b) An employee eligible to withdraw from the system under
178 s. 121.052(3)(d) may withdraw from the system, participate in
179 the pension plan if not a compulsory member of the investment
180 plan, or participate in the investment plan as provided under
181 those provisions. An employee eligible for the optional
182 retirement programs under paragraph (2)(c) or s. 121.35 may
183 participate in the optional retirement program, participate in
184 the pension plan if not a compulsory member, or participate in
185 the investment plan as provided under those provisions. An
186 eligible employee required to participate pursuant to paragraph
187 (1)(a) in the optional retirement program as provided under s.
188 121.35 must participate in the investment plan if employed in a
189 position not eligible for the optional retirement program and
190 otherwise meeting the requirements as a compulsory member of the
191 investment plan.
192 Section 3. Paragraph (a) of subsection (2) and paragraph
193 (c) of subsection (3) of section 121.052, Florida Statutes, are
194 amended to read:
195 121.052 Membership class of elected officers.—
196 (2) MEMBERSHIP.—The following holders of elective office,
197 hereinafter referred to as “elected officers,” whether assuming
198 elective office by election, reelection, or appointment, are
199 members of the Elected Officers’ Class, except as provided in
200 subsection (3):
201 (a)1. A Any Governor, Lieutenant Governor, Cabinet officer,
202 legislator, Supreme Court justice, district court of appeal
203 judge, circuit judge, or state attorney assuming office on or
204 after July 1, 1972.
205 2. A Supreme Court justice, district court of appeal judge,
206 or circuit judge assuming office on or after July 1, 1972.
207 (3) PARTICIPATION AND WITHDRAWAL, GENERALLY.—Effective July
208 1, 1990, participation in the Elected Officers’ Class shall be
209 compulsory for elected officers listed in paragraphs (2)(a)-(d)
210 and (f) assuming office on or after said date, unless the
211 elected officer elects membership in another class or withdraws
212 from the Florida Retirement System as provided in paragraphs
213 (3)(a)-(d):
214 (c) Before July 1, 2015, an any elected officer may, within
215 6 months after assuming office, or within 6 months after May 30,
216 1997 this act becomes a law for serving elected officers, elect
217 membership in the Senior Management Service Class as provided in
218 s. 121.055 in lieu of membership in the Elected Officers’ Class.
219 Any Such election made by a county elected officer has shall
220 have no effect upon the statutory limit on the number of
221 nonelective full-time positions that may be designated by a
222 local agency employer for inclusion in the Senior Management
223 Service Class under s. 121.055(1)(b)1.
224 Section 4. Subsections (3) and (5) of section 121.053,
225 Florida Statutes, are amended to read:
226 121.053 Participation in the Elected Officers’ Class for
227 retired members.—
228 (3) On or after July 1, 2010:
229 (a) A retiree of a state-administered retirement system who
230 is initially reemployed in elected or appointed for the first
231 time to an elective office in a regularly established position
232 with a covered employer may not reenroll in the Florida
233 Retirement System, except as provided in s. 121.122.
234 (b) An elected officer who is elected or appointed to an
235 elective office and is participating in the Deferred Retirement
236 Option Program is subject to termination as defined in s.
237 121.021 upon completion of his or her DROP participation period.
238 An elected official may defer termination as provided in
239 subsection (7).
240 (5) A Any renewed member, as described in s. 121.122(1),
241 (3), (4), or (5) subsection (1) or subsection (2), who is not
242 receiving the maximum health insurance subsidy provided in s.
243 112.363 is entitled to earn additional credit toward the maximum
244 health insurance subsidy. Any additional subsidy due because of
245 such additional credit may be received only at the time of
246 payment of the second career retirement benefit. The total
247 health insurance subsidy received from initial and renewed
248 membership may not exceed the maximum allowed in s. 112.363.
249 Section 5. Paragraph (f) of subsection (1) and paragraph
250 (c) of subsection (6) of section 121.055, Florida Statutes, are
251 amended to read:
252 121.055 Senior Management Service Class.—There is hereby
253 established a separate class of membership within the Florida
254 Retirement System to be known as the “Senior Management Service
255 Class,” which shall become effective February 1, 1987.
256 (1)
257 (f) Effective July 1, 1997, through June 30, 2015:
258 1. Except as provided in subparagraphs subparagraph 3. and
259 4., an elected state officer eligible for membership in the
260 Elected Officers’ Class under s. 121.052(2)(a), (b), or (c) who
261 elects membership in the Senior Management Service Class under
262 s. 121.052(3)(c) may, within 6 months after assuming office or
263 within 6 months after this act becomes a law for serving elected
264 state officers, elect to participate in the Senior Management
265 Service Optional Annuity Program, as provided in subsection (6),
266 in lieu of membership in the Senior Management Service Class.
267 2. Except as provided in subparagraphs subparagraph 3. and
268 4., an elected officer of a local agency employer eligible for
269 membership in the Elected Officers’ Class under s. 121.052(2)(d)
270 who elects membership in the Senior Management Service Class
271 under s. 121.052(3)(c) may, within 6 months after assuming
272 office, or within 6 months after this act becomes a law for
273 serving elected officers of a local agency employer, elect to
274 withdraw from the Florida Retirement System, as provided in
275 subparagraph (b)2., in lieu of membership in the Senior
276 Management Service Class.
277 3. A retiree of a state-administered retirement system who
278 is initially reemployed in a regularly established position on
279 or after July 1, 2010, through December 31, 2014, as an elected
280 official eligible for the Elected Officers’ Class may not be
281 enrolled in renewed membership in the Senior Management Service
282 Class or in the Senior Management Service Optional Annuity
283 Program as provided in subsection (6), and may not withdraw from
284 the Florida Retirement System as a renewed member as provided in
285 subparagraph (b)2., as applicable, in lieu of membership in the
286 Senior Management Service Class.
287 4. Effective January 1, 2015, an eligible retiree of a
288 state-administered retirement system who retired before July 1,
289 2010, and is reemployed in a regularly established position with
290 a covered employer shall be enrolled as a renewed member as
291 provided in s. 121.122.
292 5. On or after July 1, 2015, an elected officer eligible
293 for membership in the Elected Officers’ Class may not be
294 enrolled in the Senior Management Service Class or in the Senior
295 Management Service Optional Annuity Program except as provided
296 in subsection (6).
297 (6)
298 (c) Participation.—
299 1. An eligible employee who is employed on or before
300 February 1, 1987, may elect to participate in the optional
301 annuity program in lieu of participating in the Senior
302 Management Service Class. Such election must be made in writing
303 and filed with the department and the personnel officer of the
304 employer on or before May 1, 1987. An eligible employee who is
305 employed on or before February 1, 1987, and who fails to make an
306 election to participate in the optional annuity program by May
307 1, 1987, shall be deemed to have elected membership in the
308 Senior Management Service Class.
309 2. Except as provided in subparagraph 6., an employee who
310 becomes eligible to participate in the optional annuity program
311 by reason of initial employment commencing after February 1,
312 1987, may, within 90 days after the date of commencing
313 employment, elect to participate in the optional annuity
314 program. Such election must be made in writing and filed with
315 the personnel officer of the employer. An eligible employee who
316 does not within 90 days after commencing employment elect to
317 participate in the optional annuity program shall be deemed to
318 have elected membership in the Senior Management Service Class.
319 3. A person who is appointed to a position in the Senior
320 Management Service Class and who is a member of an existing
321 retirement system or the Special Risk or Special Risk
322 Administrative Support Classes of the Florida Retirement System
323 may elect to remain in such system or class in lieu of
324 participating in the Senior Management Service Class or optional
325 annuity program. Such election must be made in writing and filed
326 with the department and the personnel officer of the employer
327 within 90 days after such appointment. An eligible employee who
328 fails to make an election to participate in the existing system,
329 the Special Risk Class of the Florida Retirement System, the
330 Special Risk Administrative Support Class of the Florida
331 Retirement System, or the optional annuity program shall be
332 deemed to have elected membership in the Senior Management
333 Service Class.
334 4. Except as provided in subparagraph 5., an employee’s
335 election to participate in the optional annuity program is
336 irrevocable if the employee continues to be employed in an
337 eligible position and continues to meet the eligibility
338 requirements set forth in this paragraph.
339 5. Effective from July 1, 2002, through September 30, 2002,
340 an active employee in a regularly established position who has
341 elected to participate in the Senior Management Service Optional
342 Annuity Program has one opportunity to choose to move from the
343 Senior Management Service Optional Annuity Program to the
344 Florida Retirement System Pension Plan.
345 a. The election must be made in writing and must be filed
346 with the department and the personnel officer of the employer
347 before October 1, 2002, or, in the case of an active employee
348 who is on a leave of absence on July 1, 2002, within 90 days
349 after the conclusion of the leave of absence. This election is
350 irrevocable.
351 b. The employee shall receive service credit under the
352 pension plan equal to his or her years of service under the
353 Senior Management Service Optional Annuity Program. The cost for
354 such credit is the amount representing the present value of that
355 employee’s accumulated benefit obligation for the affected
356 period of service.
357 c. The employee must transfer the total accumulated
358 employer contributions and earnings on deposit in his or her
359 Senior Management Service Optional Annuity Program account. If
360 the transferred amount is not sufficient to pay the amount due,
361 the employee must pay a sum representing the remainder of the
362 amount due. The employee may not retain any employer
363 contributions or earnings from the Senior Management Service
364 Optional Annuity Program account.
365 6. A retiree of a state-administered retirement system who
366 is initially reemployed on or after July 1, 2010, through
367 December 31, 2014, may not renew membership in the Senior
368 Management Service Optional Annuity Program. Effective January
369 1, 2015, an eligible retiree of a state-administered retirement
370 system who retired before July 1, 2010, and is reemployed in a
371 regularly established position with a covered employer shall be
372 enrolled as a renewed member as provided in s. 121.122.
373 7. Effective July 1, 2015, the Senior Management Service
374 Optional Annuity Program is closed to new members. Members
375 enrolled in the Senior Management Service Optional Annuity
376 Program before July 1, 2015, may retain their membership in the
377 annuity program.
378 Section 6. Paragraph (a) of subsection (4) of section
379 121.091, Florida Statutes, is amended to read:
380 121.091 Benefits payable under the system.—Benefits may not
381 be paid under this section unless the member has terminated
382 employment as provided in s. 121.021(39)(a) or begun
383 participation in the Deferred Retirement Option Program as
384 provided in subsection (13), and a proper application has been
385 filed in the manner prescribed by the department. The department
386 may cancel an application for retirement benefits when the
387 member or beneficiary fails to timely provide the information
388 and documents required by this chapter and the department’s
389 rules. The department shall adopt rules establishing procedures
390 for application for retirement benefits and for the cancellation
391 of such application when the required information or documents
392 are not received.
393 (4) DISABILITY RETIREMENT BENEFIT.—
394 (a) Disability retirement; entitlement and effective date.—
395 1.a. A member who becomes totally and permanently disabled,
396 as defined in paragraph (b), after completing 5 years of
397 creditable service, or a member who becomes totally and
398 permanently disabled in the line of duty regardless of service,
399 is entitled to a monthly disability benefit,; except that a any
400 member with less than 5 years of creditable service on July 1,
401 1980, or a any person who becomes a member of the Florida
402 Retirement System on or after such date must have completed 10
403 years of creditable service before becoming totally and
404 permanently disabled in order to receive disability retirement
405 benefits for a any disability that which occurs other than in
406 the line of duty. However, if a member employed on July 1, 1980,
407 who has less than 5 years of creditable service as of that date
408 becomes totally and permanently disabled after completing 5
409 years of creditable service and is found not to have attained
410 fully insured status for benefits under the federal Social
411 Security Act, such member is entitled to a monthly disability
412 benefit.
413 b. Effective July 1, 2001, a member of the pension plan
414 initially enrolled before July 1, 2015, who becomes totally and
415 permanently disabled, as defined in paragraph (b), after
416 completing 8 years of creditable service, or a member who
417 becomes totally and permanently disabled in the line of duty
418 regardless of service, is entitled to a monthly disability
419 benefit.
420 c. Effective July 1, 2015, a member of the pension plan
421 initially enrolled on or after July 1, 2015, who becomes totally
422 and permanently disabled, as defined in paragraph (b), after
423 completing 10 years of creditable service, or a member who
424 becomes totally and permanently disabled in the line of duty
425 regardless of service, is entitled to a monthly disability
426 benefit.
427 2. If the division has received from the employer the
428 required documentation of the member’s termination of employment
429 from the employer, the effective retirement date for a member
430 who applies and is approved for disability retirement shall be
431 as established by rule of the division.
432 3. For a member who is receiving Workers’ Compensation
433 payments, the effective disability retirement date may not
434 precede the date the member reaches Maximum Medical Improvement
435 (MMI), unless the member terminates employment before reaching
436 MMI.
437 Section 7. Subsection (2) of section 121.122, Florida
438 Statutes, is amended, and subsections (3), (4), and (5) are
439 added to that section, to read:
440 121.122 Renewed membership in system.—
441 (2) Except as provided in subsections (3)-(5), a retiree of
442 a state-administered retirement system who is initially
443 reemployed in a regularly established position on or after July
444 1, 2010, may not be enrolled as a renewed member.
445 (3) A retiree of the investment plan, the State University
446 System Optional Retirement Program, the Senior Management
447 Service Optional Annuity Program, or the State Community College
448 System Optional Retirement Program who retired before July 1,
449 2010, had less than 10 years of creditable service upon
450 retirement, and is employed in a regularly established position
451 with a covered employer on or after January 1, 2015, shall be a
452 renewed member of the Regular Class of the investment plan
453 regardless of the position held, unless employed in a position
454 eligible for participation in the State University System
455 Optional Retirement Program or the State Community College
456 System Optional Retirement Program as provided in subsections
457 (4) and (5), respectively. The renewed member must satisfy the
458 vesting requirements and other provisions of this chapter.
459 (a) Creditable service, including credit toward the retiree
460 health insurance subsidy provided in s. 112.363, does not accrue
461 for a retiree’s employment in a regularly established position
462 with a covered employer from July 1, 2010, through December 31,
463 2014.
464 (b) Employer and employee contributions, interest,
465 earnings, or any other funds may not be paid into a renewed
466 member’s investment plan account for any employment in a
467 regularly established position with a covered employer from July
468 1, 2010, through December 31, 2014, by the renewed member or the
469 employer on behalf of the member.
470 (c) To be eligible to receive a retirement benefit, the
471 renewed member must satisfy the vesting requirements in s.
472 121.4501(6).
473 (d) The member is ineligible to receive disability benefits
474 as provided in s. 121.091(4) or s. 121.591(2).
475 (e) The member is subject to the reemployment after
476 retirement limitations provided in s. 121.091(9), as applicable.
477 (f) The member must satisfy the requirements for
478 termination from employment provided in s. 121.021(39).
479 (g) Upon the renewed membership or reemployment of a
480 retiree, the employer and the retiree shall pay the applicable
481 employer and employee contributions required under ss. 112.363,
482 121.71, 121.74, and 121.76. The contributions are payable only
483 for employment and salary earned in a regularly established
484 position with a covered employer on or after January 1, 2015.
485 The employer and employee contributions shall be transferred to
486 the investment plan and placed in a default fund as designated
487 by the state board. The retiree may move the contributions once
488 an account is activated in the investment plan.
489 (h) The member may not purchase any past service in the
490 investment plan, including employment in a regularly established
491 position with a covered employer from July 1, 2010, through
492 December 31, 2014.
493 (i) A renewed member who is a retiree of the investment
494 plan and who is not receiving the maximum health insurance
495 subsidy provided in s. 112.363 is entitled to earn additional
496 credit toward the subsidy. Such credit may be earned only for
497 employment in a regularly established position with a covered
498 employer on or after January 1, 2015. Any additional subsidy due
499 because of additional credit may be received only at the time of
500 paying the second career retirement benefit. The total health
501 insurance subsidy received by a retiree receiving benefits from
502 initial and renewed membership may not exceed the maximum
503 allowed under s. 112.363.
504 (4) A retiree of the investment plan, the State University
505 System Optional Retirement Program, the Senior Management
506 Service Optional Annuity Program, or the State Community College
507 System Optional Retirement Program who retired before July 1,
508 2010, and who is employed in a regularly established position
509 eligible for participation in the State University System
510 Optional Retirement Program on or after January 1, 2015, shall
511 become a renewed member of the optional retirement program. The
512 renewed member must satisfy the vesting requirements and other
513 provisions of this chapter. Once enrolled, a renewed member
514 remains enrolled in the optional retirement program while
515 employed in an eligible position for the optional retirement
516 program. If employment in a different covered position results
517 in the retiree’s enrollment in the investment plan, the retiree
518 is no longer eligible to participate in the optional retirement
519 program unless employed in a mandatory position under s. 121.35.
520 (a) The member is subject to the reemployment after
521 retirement limitations provided in s. 121.091(9), as applicable.
522 (b) The member must satisfy the requirements for
523 termination of employment provided in s. 121.021(39).
524 (c) Upon renewed membership or reemployment of a retiree,
525 the employer and the retiree must pay the applicable employer
526 and employee contributions required under s. 121.35.
527 (d) The member, or the employer on behalf of the member,
528 may not purchase any prior service in the optional retirement
529 program or employment from July 1, 2010, to December 31, 2014.
530 (5) A retiree of the investment plan, the State University
531 System Optional Retirement Program, the Senior Management
532 Service System Optional Annuity Program, or the State Community
533 College System Optional Retirement Program who retired before
534 July 1, 2010, and who is employed in a regularly established
535 position eligible for participation in the State Community
536 College System Optional Retirement Program as provided in s.
537 121.051(2)(c)4. on or after January 1, 2015, shall become a
538 renewed member of the optional retirement program. The renewed
539 member must satisfy the eligibility requirements of this chapter
540 and s. 1012.875 for the optional retirement program. Once
541 enrolled, a renewed member remains enrolled in the optional
542 retirement program while employed in an eligible position for
543 the optional retirement program. If employment in a different
544 covered position results in the retiree’s enrollment in the
545 investment plan, the retiree is no longer eligible to
546 participate in the optional retirement program.
547 (a) The member is subject to the reemployment after
548 retirement limitations provided in s. 121.091(9), as applicable.
549 (b) The member must satisfy the requirements for
550 termination of employment provided in s. 121.021(39).
551 (c) Upon renewed membership or reemployment of a retiree,
552 the employer and the retiree must pay the applicable employer
553 and employee contributions required under ss. 121.051(2)(c) and
554 1012.875.
555 (d) The member, or the employer on behalf of the member,
556 may not purchase any past service in the optional retirement
557 program or employment accrued from July 1, 2010, to December 31,
558 2014.
559 Section 8. Paragraph (c) of subsection (3) of section
560 121.35, Florida Statutes, is amended to read:
561 121.35 Optional retirement program for the State University
562 System.—
563 (3) ELECTION OF OPTIONAL PROGRAM.—
564 (c) An Any employee who becomes eligible to participate in
565 the optional retirement program on or after January 1, 1993,
566 shall be a compulsory participant of the program unless such
567 employee elects membership in the Florida Retirement System.
568 Such election shall be made in writing and filed with the
569 personnel officer of the employer. An Any eligible employee who
570 fails to make such election within the prescribed time period
571 shall be deemed to have elected to participate in the optional
572 retirement program.
573 1. An Any employee whose optional retirement program
574 eligibility results from initial employment shall be enrolled in
575 the program at the commencement of employment. If, within 90
576 days after commencement of employment, the employee elects
577 membership in the Florida Retirement System, such membership is
578 shall be effective retroactive to the date of commencing
579 commencement of employment as provided in s. 121.4501(4).
580 2. An Any employee whose optional retirement program
581 eligibility results from a change in status due to the
582 subsequent designation of the employee’s position as one of
583 those specified in paragraph (2)(a) or due to the employee’s
584 appointment, promotion, transfer, or reclassification to a
585 position specified in paragraph (2)(a) shall be enrolled in the
586 optional retirement program upon such change in status and shall
587 be notified by the employer of such action. If, within 90 days
588 after the date of such notification, the employee elects to
589 retain membership in the Florida Retirement System, such
590 continuation of membership is shall be retroactive to the date
591 of the change in status.
592 3. Notwithstanding the provisions of this paragraph,
593 effective July 1, 1997, an any employee who is eligible to
594 participate in the Optional Retirement Program and who fails to
595 execute a contract with one of the approved companies and to
596 notify the department in writing as provided in subsection (4)
597 within 90 days after the date of eligibility shall be deemed to
598 have elected membership in the Florida Retirement System, except
599 as provided in s. 121.051(1)(a). This provision shall also
600 applies apply to an any employee who terminates employment in an
601 eligible position before executing the required investment
602 annuity contract and notifying the department. Such membership
603 is shall be retroactive to the date of eligibility, and all
604 appropriate contributions shall be transferred to the Florida
605 Retirement System Trust Fund and the Health Insurance Subsidy
606 Trust Fund.
607 Section 9. Subsection (1), paragraphs (e) and (i) of
608 subsection (2), paragraph (b) of subsection (3), subsection (4),
609 paragraph (c) of subsection (5), subsection (8), and paragraphs
610 (a), (b), (c), and (h) of subsection (10) of section 121.4501,
611 Florida Statutes, are amended to read:
612 121.4501 Florida Retirement System Investment Plan.—
613 (1) The Trustees of the State Board of Administration shall
614 establish a defined contribution program called the “Florida
615 Retirement System Investment Plan” or “investment plan” for
616 members of the Florida Retirement System under which retirement
617 benefits are will be provided for eligible employees who elect
618 to participate in the program, for employees who default into
619 the program, and for compulsory members described in paragraph
620 (4)(g). The retirement benefits shall be provided through
621 member-directed investments, in accordance with s. 401(a) of the
622 Internal Revenue Code and related regulations. The employer and
623 employee shall make contributions, as provided in this section
624 and ss. 121.571 and 121.71, to the Florida Retirement System
625 Investment Plan Trust Fund toward the funding of benefits.
626 (2) DEFINITIONS.—As used in this part, the term:
627 (e) “Eligible employee” means an officer or employee, as
628 defined in s. 121.021, who:
629 1. Is a member of, or is eligible for membership in, the
630 Florida Retirement System, including any renewed member of the
631 Florida Retirement System initially enrolled before July 1,
632 2010; or
633 2. Participates in, or is eligible to participate in, the
634 Senior Management Service Optional Annuity Program as
635 established under s. 121.055(6), the State Community College
636 System Optional Retirement Program as established under s.
637 121.051(2)(c), or the State University System Optional
638 Retirement Program established under s. 121.35; or
639 3. Is a retired member of the investment plan, the State
640 University System Optional Retirement Program, the Senior
641 Management Service Optional Annuity Program, or the State
642 Community College System Optional Retirement Program who retired
643 before July 1, 2010 and is employed in a regularly established
644 position on or after January 1, 2015, as provided in s. 121.122.
645
646 The term does not include any member participating in the
647 Deferred Retirement Option Program established under s.
648 121.091(13), a retiree of a state-administered retirement system
649 who retired initially reemployed in a regularly established
650 position on or after July 1, 2010, or a mandatory participant of
651 the State University System Optional Retirement Program
652 established under s. 121.35.
653 (i) “Member” or “employee” means an eligible employee who
654 enrolls, is defaulted into, or is a compulsory member of in the
655 investment plan as provided in subsection (4), a terminated
656 Deferred Retirement Option Program member as described in
657 subsection (21), or a beneficiary or alternate payee of a member
658 or employee.
659 (3) RETIREMENT SERVICE CREDIT; TRANSFER OF BENEFITS.—
660 (b) Notwithstanding paragraph (a), an eligible employee who
661 elects to participate in or is defaulted into the investment
662 plan and establishes one or more individual member accounts may
663 elect to transfer to the investment plan a sum representing the
664 present value of the employee’s accumulated benefit obligation
665 under the pension plan, except as provided in paragraph (4)(b).
666 Upon transfer, all service credit earned under the pension plan
667 is nullified for purposes of entitlement to a future benefit
668 under the pension plan. A member may not transfer the
669 accumulated benefit obligation balance from the pension plan
670 after the time period for enrolling in the investment plan has
671 expired.
672 1. For purposes of this subsection, the present value of
673 the member’s accumulated benefit obligation is based upon the
674 member’s estimated creditable service and estimated average
675 final compensation under the pension plan, subject to
676 recomputation under subparagraph 2. For state employees, initial
677 estimates shall be based upon creditable service and average
678 final compensation as of midnight on June 30, 2002; for district
679 school board employees, initial estimates shall be based upon
680 creditable service and average final compensation as of midnight
681 on September 30, 2002; and for local government employees,
682 initial estimates shall be based upon creditable service and
683 average final compensation as of midnight on December 31, 2002.
684 The dates specified are the “estimate date” for these employees.
685 The actuarial present value of the employee’s accumulated
686 benefit obligation shall be based on the following:
687 a. The discount rate and other relevant actuarial
688 assumptions used to value the Florida Retirement System Trust
689 Fund at the time the amount to be transferred is determined,
690 consistent with the factors provided in sub-subparagraphs b. and
691 c.
692 b. A benefit commencement age, based on the member’s
693 estimated creditable service as of the estimate date.
694 c. Except as provided under sub-subparagraph d., for a
695 member initially enrolled:
696 (I) Before July 1, 2011, the benefit commencement age is
697 the younger of the following, but may not be younger than the
698 member’s age as of the estimate date:
699 (A) Age 62; or
700 (B) The age the member would attain if the member completed
701 30 years of service with an employer, assuming the member worked
702 continuously from the estimate date, and disregarding any
703 vesting requirement that would otherwise apply under the pension
704 plan.
705 (II) On or after July 1, 2011, the benefit commencement age
706 is the younger of the following, but may not be younger than the
707 member’s age as of the estimate date:
708 (A) Age 65; or
709 (B) The age the member would attain if the member completed
710 33 years of service with an employer, assuming the member worked
711 continuously from the estimate date, and disregarding any
712 vesting requirement that would otherwise apply under the pension
713 plan.
714 d. For members of the Special Risk Class and for members of
715 the Special Risk Administrative Support Class entitled to retain
716 the special risk normal retirement date:
717 (I) Initially enrolled before July 1, 2011, the benefit
718 commencement age is the younger of the following, but may not be
719 younger than the member’s age as of the estimate date:
720 (A) Age 55; or
721 (B) The age the member would attain if the member completed
722 25 years of service with an employer, assuming the member worked
723 continuously from the estimate date, and disregarding any
724 vesting requirement that would otherwise apply under the pension
725 plan.
726 (II) Initially enrolled on or after July 1, 2011, the
727 benefit commencement age is the younger of the following, but
728 may not be younger than the member’s age as of the estimate
729 date:
730 (A) Age 60; or
731 (B) The age the member would attain if the member completed
732 30 years of service with an employer, assuming the member worked
733 continuously from the estimate date, and disregarding any
734 vesting requirement that would otherwise apply under the pension
735 plan.
736 e. The calculation must disregard vesting requirements and
737 early retirement reduction factors that would otherwise apply
738 under the pension plan.
739 2. For each member who elects to transfer moneys from the
740 pension plan to his or her account in the investment plan, the
741 division shall recompute the amount transferred under
742 subparagraph 1. within 60 days after the actual transfer of
743 funds based upon the member’s actual creditable service and
744 actual final average compensation as of the initial date of
745 participation in the investment plan. If the recomputed amount
746 differs from the amount transferred by $10 or more, the division
747 shall:
748 a. Transfer, or cause to be transferred, from the Florida
749 Retirement System Trust Fund to the member’s account the excess,
750 if any, of the recomputed amount over the previously transferred
751 amount together with interest from the initial date of transfer
752 to the date of transfer under this subparagraph, based upon the
753 effective annual interest equal to the assumed return on the
754 actuarial investment which was used in the most recent actuarial
755 valuation of the system, compounded annually.
756 b. Transfer, or cause to be transferred, from the member’s
757 account to the Florida Retirement System Trust Fund the excess,
758 if any, of the previously transferred amount over the recomputed
759 amount, together with interest from the initial date of transfer
760 to the date of transfer under this subparagraph, based upon 6
761 percent effective annual interest, compounded annually, pro rata
762 based on the member’s allocation plan.
763 3. If contribution adjustments are made as a result of
764 employer errors or corrections, including plan corrections,
765 following recomputation of the amount transferred under
766 subparagraph 1., the member is entitled to the additional
767 contributions or is responsible for returning any excess
768 contributions resulting from the correction. However, a any
769 return of such erroneous excess pretax contribution by the plan
770 must be made within the period allowed by the Internal Revenue
771 Service. The present value of the member’s accumulated benefit
772 obligation may shall not be recalculated.
773 4. As directed by the member, the state board shall
774 transfer or cause to be transferred the appropriate amounts to
775 the designated accounts within 30 days after the effective date
776 of the member’s participation in the investment plan unless the
777 major financial markets for securities available for a transfer
778 are seriously disrupted by an unforeseen event that causes the
779 suspension of trading on a any national securities exchange in
780 the country where the securities were issued. In that event, the
781 30-day period may be extended by a resolution of the state
782 board. Transfers are not commissionable or subject to other fees
783 and may be in the form of securities or cash, as determined by
784 the state board. Such securities are valued as of the date of
785 receipt in the member’s account.
786 5. If the state board or the division receives notification
787 from the United States Internal Revenue Service that this
788 paragraph or any portion of this paragraph will cause the
789 retirement system, or a portion thereof, to be disqualified for
790 tax purposes under the Internal Revenue Code, the portion that
791 will cause the disqualification does not apply. Upon such
792 notice, the state board and the division shall notify the
793 presiding officers of the Legislature.
794 (4) PARTICIPATION; ENROLLMENT.—
795 (a)1. Effective June 1, 2002, through February 28, 2003, a
796 90-day election period, preceded by a 90-day education period,
797 was provided to each eligible employee participating in the
798 Florida Retirement System which permitted each eligible employee
799 to elect membership in the investment plan, and an employee who
800 failed to elect the investment plan during the election period
801 remained in the pension plan. An eligible employee who was
802 employed in a regularly established position during the election
803 period was granted the option to make one subsequent election,
804 as provided in paragraph (f). With respect to an eligible
805 employee who did not participate in the initial election period
806 or who is initially employee who is employed in a regularly
807 established position after the close of the initial election
808 period but before July 1, 2015, on June 1, 2002, by a state
809 employer:
810 a. Any such employee may elect to participate in the
811 investment plan in lieu of retaining his or her membership in
812 the pension plan. The election must be made in writing or by
813 electronic means and must be filed with the third-party
814 administrator by August 31, 2002, or, in the case of an active
815 employee who is on a leave of absence on April 1, 2002, by the
816 last business day of the 5th month following the month the leave
817 of absence concludes. This election is irrevocable, except as
818 provided in paragraph (g). Upon making such election, the
819 employee shall be enrolled as a member of the investment plan,
820 the employee’s membership in the Florida Retirement System is
821 governed by the provisions of this part, and the employee’s
822 membership in the pension plan terminates. The employee’s
823 enrollment in the investment plan is effective the first day of
824 the month for which a full month’s employer contribution is made
825 to the investment plan.
826 b. Any such employee who fails to elect to participate in
827 the investment plan within the prescribed time period is deemed
828 to have elected to retain membership in the pension plan, and
829 the employee’s option to elect to participate in the investment
830 plan is forfeited.
831 2. With respect to employees who become eligible to
832 participate in the investment plan by reason of employment in a
833 regularly established position with a state employer commencing
834 after April 1, 2002:
835 a. Any such employee shall, by default, be enrolled in the
836 pension plan at the commencement of employment, and may, by the
837 last business day of the 5th month following the employee’s
838 month of hire, elect to participate in the investment plan. The
839 employee’s election must be made in writing or by electronic
840 means and must be filed with the third-party administrator. The
841 election to participate in the investment plan is irrevocable,
842 except as provided in paragraph (f) (g).
843 a.b. If the employee files such election within the
844 prescribed time period, enrollment in the investment plan is
845 effective on the first day of employment. The retirement
846 contributions paid through the month of the employee plan change
847 shall be transferred to the investment program, and, effective
848 the first day of the next month, the employer and employee must
849 pay the applicable contributions based on the employee
850 membership class in the program.
851 b.c. An employee who fails to elect to participate in the
852 investment plan within the prescribed time period is deemed to
853 have elected to retain membership in the pension plan, and the
854 employee’s option to elect to participate in the investment plan
855 is forfeited.
856 2.3. With respect to employees who become eligible to
857 participate in the investment plan pursuant to s.
858 121.051(2)(c)3. or s. 121.35(3)(i), the employee may elect to
859 participate in the investment plan in lieu of retaining his or
860 her membership in the State Community College System Optional
861 Retirement Program or the State University System Optional
862 Retirement Program. The election must be made in writing or by
863 electronic means and must be filed with the third-party
864 administrator. This election is irrevocable, except as provided
865 in paragraph (f) (g). Upon making such election, the employee
866 shall be enrolled as a member in the investment plan, the
867 employee’s membership in the Florida Retirement System is
868 governed by the provisions of this part, and the employee’s
869 participation in the State Community College System Optional
870 Retirement Program or the State University System Optional
871 Retirement Program terminates. The employee’s enrollment in the
872 investment plan is effective on the first day of the month for
873 which a full month’s employer and employee contribution is made
874 to the investment plan.
875 4. For purposes of this paragraph, “state employer” means
876 any agency, board, branch, commission, community college,
877 department, institution, institution of higher education, or
878 water management district of the state, which participates in
879 the Florida Retirement System for the benefit of certain
880 employees.
881 (b) With respect to employees who become eligible to
882 participate in the investment plan, except as provided in
883 paragraph (g), by reason of employment in a regularly
884 established position commencing on or after July 1, 2015, such
885 employee shall be enrolled in the pension plan at the
886 commencement of employment and may, by the last business day of
887 the 8th month following the employee’s month of hire, elect to
888 participate in the pension plan or the investment plan. Eligible
889 employees may make a plan election only if they are earning
890 service credit in an employer-employee relationship consistent
891 with s. 121.021(17)(b), excluding leaves of absence without pay.
892 1. The employee’s election must be in writing or by
893 electronic means and must be filed with the third-party
894 administrator. The election to participate in the pension plan
895 or investment plan is irrevocable, except as provided in
896 paragraph (f).
897 2. If the employee fails to make an election of the pension
898 plan or investment plan within 8 months following the month of
899 hire, the employee is deemed to have elected the investment plan
900 and will be defaulted into the investment plan retroactively to
901 the employee’s date of employment. The employee’s option to
902 participate in the pension plan is forfeited, except as provided
903 in paragraph (f).
904 3. The amount of the employee and employer contributions
905 paid before the default to the investment plan shall be
906 transferred to the investment plan and placed in a default fund
907 as designated by the State Board of Administration. The employee
908 may move the contributions once an account is activated in the
909 investment plan.
910 4. Effective the first day of the month after an eligible
911 employee makes a plan election of the pension plan or investment
912 plan, or after the month of default to the investment plan, the
913 employee and employer shall pay the applicable contributions
914 based on the employee membership class in the pension plan or
915 investment plan.
916 (b)1. With respect to an eligible employee who is employed
917 in a regularly established position on September 1, 2002, by a
918 district school board employer:
919 a. Any such employee may elect to participate in the
920 investment plan in lieu of retaining his or her membership in
921 the pension plan. The election must be made in writing or by
922 electronic means and must be filed with the third-party
923 administrator by November 30, or, in the case of an active
924 employee who is on a leave of absence on July 1, 2002, by the
925 last business day of the 5th month following the month the leave
926 of absence concludes. This election is irrevocable, except as
927 provided in paragraph (g). Upon making such election, the
928 employee shall be enrolled as a member of the investment plan,
929 the employee’s membership in the Florida Retirement System is
930 governed by the provisions of this part, and the employee’s
931 membership in the pension plan terminates. The employee’s
932 enrollment in the investment plan is effective the first day of
933 the month for which a full month’s employer contribution is made
934 to the investment program.
935 b. Any such employee who fails to elect to participate in
936 the investment plan within the prescribed time period is deemed
937 to have elected to retain membership in the pension plan, and
938 the employee’s option to elect to participate in the investment
939 plan is forfeited.
940 2. With respect to employees who become eligible to
941 participate in the investment plan by reason of employment in a
942 regularly established position with a district school board
943 employer commencing after July 1, 2002:
944 a. Any such employee shall, by default, be enrolled in the
945 pension plan at the commencement of employment, and may, by the
946 last business day of the 5th month following the employee’s
947 month of hire, elect to participate in the investment plan. The
948 employee’s election must be made in writing or by electronic
949 means and must be filed with the third-party administrator. The
950 election to participate in the investment plan is irrevocable,
951 except as provided in paragraph (g).
952 b. If the employee files such election within the
953 prescribed time period, enrollment in the investment plan is
954 effective on the first day of employment. The employer
955 retirement contributions paid through the month of the employee
956 plan change shall be transferred to the investment plan, and,
957 effective the first day of the next month, the employer shall
958 pay the applicable contributions based on the employee
959 membership class in the investment plan.
960 c. Any such employee who fails to elect to participate in
961 the investment plan within the prescribed time period is deemed
962 to have elected to retain membership in the pension plan, and
963 the employee’s option to elect to participate in the investment
964 plan is forfeited.
965 3. For purposes of this paragraph, “district school board
966 employer” means any district school board that participates in
967 the Florida Retirement System for the benefit of certain
968 employees, or a charter school or charter technical career
969 center that participates in the Florida Retirement System as
970 provided in s. 121.051(2)(d).
971 (c)1. With respect to an eligible employee who is employed
972 in a regularly established position on December 1, 2002, by a
973 local employer:
974 a. Any such employee may elect to participate in the
975 investment plan in lieu of retaining his or her membership in
976 the pension plan. The election must be made in writing or by
977 electronic means and must be filed with the third-party
978 administrator by February 28, 2003, or, in the case of an active
979 employee who is on a leave of absence on October 1, 2002, by the
980 last business day of the 5th month following the month the leave
981 of absence concludes. This election is irrevocable, except as
982 provided in paragraph (g). Upon making such election, the
983 employee shall be enrolled as a participant of the investment
984 plan, the employee’s membership in the Florida Retirement System
985 is governed by the provisions of this part, and the employee’s
986 membership in the pension plan terminates. The employee’s
987 enrollment in the investment plan is effective the first day of
988 the month for which a full month’s employer contribution is made
989 to the investment plan.
990 b. Any such employee who fails to elect to participate in
991 the investment plan within the prescribed time period is deemed
992 to have elected to retain membership in the pension plan, and
993 the employee’s option to elect to participate in the investment
994 plan is forfeited.
995 2. With respect to employees who become eligible to
996 participate in the investment plan by reason of employment in a
997 regularly established position with a local employer commencing
998 after October 1, 2002:
999 a. Any such employee shall, by default, be enrolled in the
1000 pension plan at the commencement of employment, and may, by the
1001 last business day of the 5th month following the employee’s
1002 month of hire, elect to participate in the investment plan. The
1003 employee’s election must be made in writing or by electronic
1004 means and must be filed with the third-party administrator. The
1005 election to participate in the investment plan is irrevocable,
1006 except as provided in paragraph (g).
1007 b. If the employee files such election within the
1008 prescribed time period, enrollment in the investment plan is
1009 effective on the first day of employment. The employer
1010 retirement contributions paid through the month of the employee
1011 plan change shall be transferred to the investment plan, and,
1012 effective the first day of the next month, the employer shall
1013 pay the applicable contributions based on the employee
1014 membership class in the investment plan.
1015 c. Any such employee who fails to elect to participate in
1016 the investment plan within the prescribed time period is deemed
1017 to have elected to retain membership in the pension plan, and
1018 the employee’s option to elect to participate in the investment
1019 plan is forfeited.
1020 3. For purposes of this paragraph, “local employer” means
1021 any employer not included in paragraph (a) or paragraph (b).
1022 (c)(d) Contributions available for self-direction by a
1023 member who has not selected one or more specific investment
1024 products shall be allocated as prescribed by the state board.
1025 The third-party administrator shall notify the member at least
1026 quarterly that the member should take an affirmative action to
1027 make an asset allocation among the investment products.
1028 (d)(e) On or after July 1, 2011, a member of the pension
1029 plan who obtains a refund of employee contributions retains his
1030 or her prior plan choice upon return to employment in a
1031 regularly established position with a participating employer.
1032 (e)(f) A member of the investment plan who takes a
1033 distribution of any contributions from his or her investment
1034 plan account is considered a retiree. A member retiree who
1035 retires is initially reemployed in a regularly established
1036 position on or after July 1, 2010, is not eligible to be
1037 enrolled in renewed membership. A member who retired before July
1038 1, 2010, and is employed on or after January 1, 2015, in a
1039 regularly established position shall be a renewed member as
1040 provided under s. 121.122. A retiree who returned to covered
1041 employment before July 1, 2010, shall continue membership in the
1042 plan as provided under s. 121.122.
1043 (f)(g) After the period during which an eligible employee
1044 had the choice to elect the pension plan or the investment plan,
1045 or the month following the receipt of the eligible employee’s
1046 plan election, if sooner, the employee shall have one
1047 opportunity, at the employee’s discretion, to choose to move
1048 from the pension plan to the investment plan or from the
1049 investment plan to the pension plan. Eligible employees may
1050 elect to move between plans only if they are earning service
1051 credit in an employer-employee relationship consistent with s.
1052 121.021(17)(b), excluding leaves of absence without pay.
1053 Effective July 1, 2005, such elections are effective on the
1054 first day of the month following the receipt of the election by
1055 the third-party administrator and are not subject to the
1056 requirements regarding an employer-employee relationship or
1057 receipt of contributions for the eligible employee in the
1058 effective month, except when the election is received by the
1059 third-party administrator. This paragraph is contingent upon
1060 approval by the Internal Revenue Service. This paragraph is not
1061 applicable to compulsory members of the investment plan
1062 described in paragraph (g).
1063 1. If the employee chooses to move to the investment plan,
1064 the provisions of subsection (3) governs govern the transfer.
1065 2. If the employee chooses to move to the pension plan, the
1066 employee must transfer from his or her investment plan account,
1067 and from other employee moneys as necessary, a sum representing
1068 the present value of that employee’s accumulated benefit
1069 obligation immediately following the time of such movement,
1070 determined assuming that attained service equals the sum of
1071 service in the pension plan and service in the investment plan.
1072 Benefit commencement occurs on the first date the employee is
1073 eligible for unreduced benefits, using the discount rate and
1074 other relevant actuarial assumptions that were used to value the
1075 pension plan liabilities in the most recent actuarial valuation.
1076 For an any employee who, at the time of the second election,
1077 already maintains an accrued benefit amount in the pension plan,
1078 the then-present value of the accrued benefit is deemed part of
1079 the required transfer amount. The division must ensure that the
1080 transfer sum is prepared using a formula and methodology
1081 certified by an enrolled actuary. A refund of any employee
1082 contributions or additional member payments made which exceed
1083 the employee contributions that would have accrued had the
1084 member remained in the pension plan and not transferred to the
1085 investment plan is not permitted.
1086 3. Notwithstanding subparagraph 2., an employee who chooses
1087 to move to the pension plan and who became eligible to
1088 participate in the investment plan by reason of employment in a
1089 regularly established position with a state employer after June
1090 1, 2002; a district school board employer after September 1,
1091 2002; or a local employer after December 1, 2002, must transfer
1092 from his or her investment plan account, and from other employee
1093 moneys as necessary, a sum representing the employee’s actuarial
1094 accrued liability. A refund of any employee contributions or
1095 additional member participant payments made which exceed the
1096 employee contributions that would have accrued had the member
1097 remained in the pension plan and not transferred to the
1098 investment plan is not permitted.
1099 4. An employee’s ability to transfer from the pension plan
1100 to the investment plan pursuant to paragraphs (a) and (b) (a)
1101 (d), and the ability of a current employee to have an option to
1102 later transfer back into the pension plan under subparagraph 2.,
1103 shall be deemed a significant system amendment. Pursuant to s.
1104 121.031(4), any resulting unfunded liability arising from actual
1105 original transfers from the pension plan to the investment plan
1106 must be amortized within 30 plan years as a separate unfunded
1107 actuarial base independent of the reserve stabilization
1108 mechanism described defined in s. 121.031(3)(f). For the first
1109 25 years, a direct amortization payment may not be calculated
1110 for this base. During this 25-year period, the separate base
1111 shall be used to offset the impact of employees exercising their
1112 second program election under this paragraph. The actuarial
1113 funded status of the pension plan will not be affected by such
1114 second program elections in any significant manner, after due
1115 recognition of the separate unfunded actuarial base. Following
1116 the initial 25-year period, any remaining balance of the
1117 original separate base shall be amortized over the remaining 5
1118 years of the required 30-year amortization period.
1119 5. If the employee chooses to transfer from the investment
1120 plan to the pension plan and retains an excess account balance
1121 in the investment plan after satisfying the buy-in requirements
1122 under this paragraph, the excess may not be distributed until
1123 the member retires from the pension plan. The excess account
1124 balance may be rolled over to the pension plan and used to
1125 purchase service credit or upgrade creditable service in the
1126 pension plan.
1127 (g) Except for members of the Elected Officers’ Class who
1128 withdraw from the Florida Retirement System under s.
1129 121.052(3)(d) or elect to participate in an optional retirement
1130 program under s. 121.051(1)(a), s. 121.051(2)(c), or s. 121.35,
1131 or are described in s. 121.052(2)(a)2. or (2)(b), employees
1132 initially enrolled in the Florida Retirement System on or after
1133 July 1, 2015, and whose first employment in a regularly
1134 established position is covered by the Elected Officers’ Class
1135 are compulsory members of the investment plan. Investment plan
1136 membership continues for a compulsory member even if the
1137 employee is subsequently employed in a position covered by
1138 another membership class. Membership in the pension plan by a
1139 compulsory member is not permitted except as provided in s.
1140 121.591(2).
1141 1. Employees initially enrolled in the system before July
1142 1, 2015, may retain their membership in the pension plan or
1143 investment plan and are eligible to use the election opportunity
1144 specified in paragraph (f). Compulsory members are not eligible
1145 to use the election opportunity.
1146 2. An employee eligible to withdraw from the system under
1147 s. 121.052(3)(d) may withdraw from the system, participate in
1148 the pension plan if not a compulsory member of the investment
1149 plan, or participate in the investment plan as provided under
1150 those provisions. An employee eligible for the optional
1151 retirement programs under s. 121.051(2)(c) or s. 121.35 may
1152 participate in the optional retirement program, participate in
1153 the pension plan if not a compulsory member of the investment
1154 plan, or participate in the investment plan as provided under
1155 those provisions. An eligible employee required to participate
1156 in the optional retirement program pursuant to s. 121.051(1)(a)
1157 as provided under s. 121.35 must participate in the investment
1158 plan if employed in a position not eligible for the optional
1159 retirement program and otherwise meeting the requirements as a
1160 compulsory member of the investment plan.
1161 3. The amount of retirement contributions paid by the
1162 employee and employer, as required under s. 121.72, shall be
1163 placed in a default fund designated by the state board, until an
1164 account is activated in the investment plan, at which time the
1165 member may move the contributions from the default fund to other
1166 funds provided in the investment plan.
1167 (5) CONTRIBUTIONS.—
1168 (c) The state board, acting as plan fiduciary, shall must
1169 ensure that all plan assets are held in a trust, pursuant to s.
1170 401 of the Internal Revenue Code. The fiduciary shall must
1171 ensure that such contributions are allocated as follows:
1172 1. The employer and employee contribution portion earmarked
1173 for member accounts shall be used to purchase interests in the
1174 appropriate investment vehicles as specified by the member, or
1175 in accordance with paragraph (4)(c) (4)(d).
1176 2. The employer contribution portion earmarked for
1177 administrative and educational expenses shall be transferred to
1178 the Florida Retirement System Investment Plan Trust Fund.
1179 3. The employer contribution portion earmarked for
1180 disability benefits shall be transferred to the Florida
1181 Retirement System Trust Fund.
1182 (8) INVESTMENT PLAN ADMINISTRATION.—The investment plan
1183 shall be administered by the state board and affected employers.
1184 The state board may require oaths, by affidavit or otherwise,
1185 and acknowledgments from persons in connection with the
1186 administration of its statutory duties and responsibilities for
1187 the investment plan. An oath, by affidavit or otherwise, is may
1188 not be required of a member at the time of enrollment. Except
1189 for compulsory members described in paragraph (4)(g),
1190 acknowledgment of an employee’s election to participate in the
1191 program may shall be no greater than necessary to confirm the
1192 employee’s election. The state board shall adopt rules to carry
1193 out its statutory duties with respect to administering the
1194 investment plan, including establishing the roles and
1195 responsibilities of affected state, local government, and
1196 education-related employers, the state board, the department,
1197 and third-party contractors. The department shall adopt rules
1198 necessary to administer the investment plan in coordination with
1199 the pension plan and the disability benefits available under the
1200 investment plan.
1201 (a)1. The state board shall select and contract with a
1202 third-party administrator to provide administrative services if
1203 those services cannot be competitively and contractually
1204 provided by the division. With the approval of the state board,
1205 the third-party administrator may subcontract to provide
1206 components of the administrative services. As a cost of
1207 administration, the state board may compensate any such
1208 contractor for its services, in accordance with the terms of the
1209 contract, as is deemed necessary or proper by the board. The
1210 third-party administrator may not be an approved provider or be
1211 affiliated with an approved provider.
1212 2. These administrative services may include, but are not
1213 limited to, enrollment of eligible employees, collection of
1214 employer and employee contributions, disbursement of
1215 contributions to approved providers in accordance with the
1216 allocation directions of members; services relating to
1217 consolidated billing; individual and collective recordkeeping
1218 and accounting; asset purchase, control, and safekeeping; and
1219 direct disbursement of funds to and from the third-party
1220 administrator, the division, the state board, employers,
1221 members, approved providers, and beneficiaries. This section
1222 does not prevent or prohibit a bundled provider from providing
1223 any administrative or customer service, including accounting and
1224 administration of individual member benefits and contributions;
1225 individual member recordkeeping; asset purchase, control, and
1226 safekeeping; direct execution of the member’s instructions as to
1227 asset and contribution allocation; calculation of daily net
1228 asset values; direct access to member account information; or
1229 periodic reporting to members, at least quarterly, on account
1230 balances and transactions, if these services are authorized by
1231 the state board as part of the contract.
1232 (b)1. The state board shall select and contract with one or
1233 more organizations to provide educational services. With
1234 approval of the state board, the organizations may subcontract
1235 to provide components of the educational services. As a cost of
1236 administration, the state board may compensate any such
1237 contractor for its services in accordance with the terms of the
1238 contract, as is deemed necessary or proper by the board. The
1239 education organization may not be an approved provider or be
1240 affiliated with an approved provider.
1241 2. Educational services shall be designed by the state
1242 board and department to assist employers, eligible employees,
1243 members, and beneficiaries in order to maintain compliance with
1244 United States Department of Labor regulations under s. 404(c) of
1245 the Employee Retirement Income Security Act of 1974 and to
1246 assist employees in their choice of pension plan or investment
1247 plan retirement alternatives. Educational services include, but
1248 are not limited to, disseminating educational materials;
1249 providing retirement planning education; explaining the pension
1250 plan and the investment plan; and offering financial planning
1251 guidance on matters such as investment diversification,
1252 investment risks, investment costs, and asset allocation. An
1253 approved provider may also provide educational information,
1254 including retirement planning and investment allocation
1255 information concerning its products and services.
1256 (c)1. In evaluating and selecting a third-party
1257 administrator, the state board shall establish criteria for
1258 evaluating the relative capabilities and qualifications of each
1259 proposed administrator. In developing such criteria, the state
1260 board shall consider:
1261 a. The administrator’s demonstrated experience in providing
1262 administrative services to public or private sector retirement
1263 systems.
1264 b. The administrator’s demonstrated experience in providing
1265 daily valued recordkeeping to defined contribution programs.
1266 c. The administrator’s ability and willingness to
1267 coordinate its activities with employers, the state board, and
1268 the division, and to supply to such employers, the board, and
1269 the division the information and data they require, including,
1270 but not limited to, monthly management reports, quarterly member
1271 reports, and ad hoc reports requested by the department or state
1272 board.
1273 d. The cost-effectiveness and levels of the administrative
1274 services provided.
1275 e. The administrator’s ability to interact with the
1276 members, the employers, the state board, the division, and the
1277 providers; the means by which members may access account
1278 information, direct investment of contributions, make changes to
1279 their accounts, transfer moneys between available investment
1280 vehicles, and transfer moneys between investment products; and
1281 any fees that apply to such activities.
1282 f. Any other factor deemed necessary by the state board.
1283 2. In evaluating and selecting an educational provider, the
1284 state board shall establish criteria under which it shall
1285 consider the relative capabilities and qualifications of each
1286 proposed educational provider. In developing such criteria, the
1287 state board shall consider:
1288 a. Demonstrated experience in providing educational
1289 services to public or private sector retirement systems.
1290 b. Ability and willingness to coordinate its activities
1291 with the employers, the state board, and the division, and to
1292 supply to such employers, the board, and the division the
1293 information and data they require, including, but not limited
1294 to, reports on educational contacts.
1295 c. The cost-effectiveness and levels of the educational
1296 services provided.
1297 d. Ability to provide educational services via different
1298 media, including, but not limited to, the Internet, personal
1299 contact, seminars, brochures, and newsletters.
1300 e. Any other factor deemed necessary by the state board.
1301 3. The establishment of the criteria shall be solely within
1302 the discretion of the state board.
1303 (d) The state board shall develop the form and content of
1304 any contracts to be offered under the investment plan. In
1305 developing the contracts, the board shall consider:
1306 1. The nature and extent of the rights and benefits to be
1307 afforded in relation to the contributions required under the
1308 plan.
1309 2. The suitability of the rights and benefits provided and
1310 the interests of employers in the recruitment and retention of
1311 eligible employees.
1312 (e)1. The state board may contract for professional
1313 services, including legal, consulting, accounting, and actuarial
1314 services, deemed necessary to implement and administer the
1315 investment plan. The state board may enter into a contract with
1316 one or more vendors to provide low-cost investment advice to
1317 members, supplemental to education provided by the third-party
1318 administrator. All fees under any such contract shall be paid by
1319 those members who choose to use the services of the vendor.
1320 2. The department may contract for professional services,
1321 including legal, consulting, accounting, and actuarial services,
1322 deemed necessary to implement and administer the investment plan
1323 in coordination with the pension plan. The department, in
1324 coordination with the state board, may enter into a contract
1325 with the third-party administrator in order to coordinate
1326 services common to the various programs within the Florida
1327 Retirement System.
1328 (f) The third-party administrator may not receive direct or
1329 indirect compensation from an approved provider, except as
1330 specifically provided for in the contract with the state board.
1331 (g) The state board shall receive and resolve member
1332 complaints against the program, the third-party administrator,
1333 or any program vendor or provider; shall resolve any conflict
1334 between the third-party administrator and an approved provider
1335 if such conflict threatens the implementation or administration
1336 of the program or the quality of services to employees; and may
1337 resolve any other conflicts. The third-party administrator shall
1338 retain all member records for at least 5 years for use in
1339 resolving any member conflicts. The state board, the third-party
1340 administrator, or a provider is not required to produce
1341 documentation or an audio recording to justify action taken with
1342 regard to a member if the action occurred 5 or more years before
1343 the complaint is submitted to the state board. It is presumed
1344 that all action taken 5 or more years before the complaint is
1345 submitted was taken at the request of the member and with the
1346 member’s full knowledge and consent. To overcome this
1347 presumption, the member must present documentary evidence or an
1348 audio recording demonstrating otherwise.
1349 (10) EDUCATION COMPONENT.—
1350 (a) The state board, in coordination with the department,
1351 shall provide for an education component for eligible employees
1352 system members in a manner consistent with the provisions of
1353 this subsection section. The education component must be
1354 available to eligible employees at least 90 days prior to the
1355 beginning date of the election period for the employees of the
1356 respective types of employers.
1357 (b) Except for compulsory members described in paragraph
1358 (4)(g), the education component must provide system members with
1359 impartial and balanced information about plan choices. The
1360 education component must involve multimedia formats. Program
1361 comparisons must, to the greatest extent possible, be based upon
1362 the retirement income that different retirement programs may
1363 provide to the member. The state board shall monitor the
1364 performance of the contract to ensure that the program is
1365 conducted in accordance with the contract, applicable law, and
1366 the rules of the state board.
1367 (c) Except for compulsory members described in paragraph
1368 (4)(g), the state board, in coordination with the department,
1369 shall provide for an initial and ongoing transfer education
1370 component to provide system members with information necessary
1371 to make informed plan choice decisions. The transfer education
1372 component must include, but is not limited to, information on:
1373 1. The amount of money available to a member to transfer to
1374 the defined contribution program.
1375 2. The features of and differences between the pension plan
1376 and the defined contribution program, both generally and
1377 specifically, as those differences may affect the member.
1378 3. The expected benefit available if the member were to
1379 retire under each of the retirement programs, based on
1380 appropriate alternative sets of assumptions.
1381 4. The rate of return from investments in the defined
1382 contribution program and the period of time over which such rate
1383 of return must be achieved to equal or exceed the expected
1384 monthly benefit payable to the member under the pension plan.
1385 5. The historical rates of return for the investment
1386 alternatives available in the defined contribution programs.
1387 6. The benefits and historical rates of return on
1388 investments available in a typical deferred compensation plan or
1389 a typical plan under s. 403(b) of the Internal Revenue Code for
1390 which the employee may be eligible.
1391 7. The program choices available to employees of the State
1392 University System and the comparative benefits of each available
1393 program, if applicable.
1394 8. Payout options available in each of the retirement
1395 programs.
1396 (h) Pursuant to subsection (8), all Florida Retirement
1397 System employers have an obligation to regularly communicate the
1398 existence of the two Florida Retirement System plans and the
1399 plan choice in the natural course of administering their
1400 personnel functions, using the educational materials supplied by
1401 the state board and the Department of Management Services.
1402 Section 10. Paragraph (b) of subsection (2) of section
1403 121.591, Florida Statutes, is amended to read:
1404 121.591 Payment of benefits.—Benefits may not be paid under
1405 the Florida Retirement System Investment Plan unless the member
1406 has terminated employment as provided in s. 121.021(39)(a) or is
1407 deceased and a proper application has been filed as prescribed
1408 by the state board or the department. Benefits, including
1409 employee contributions, are not payable under the investment
1410 plan for employee hardships, unforeseeable emergencies, loans,
1411 medical expenses, educational expenses, purchase of a principal
1412 residence, payments necessary to prevent eviction or foreclosure
1413 on an employee’s principal residence, or any other reason except
1414 a requested distribution for retirement, a mandatory de minimis
1415 distribution authorized by the administrator, or a required
1416 minimum distribution provided pursuant to the Internal Revenue
1417 Code. The state board or department, as appropriate, may cancel
1418 an application for retirement benefits if the member or
1419 beneficiary fails to timely provide the information and
1420 documents required by this chapter and the rules of the state
1421 board and department. In accordance with their respective
1422 responsibilities, the state board and the department shall adopt
1423 rules establishing procedures for application for retirement
1424 benefits and for the cancellation of such application if the
1425 required information or documents are not received. The state
1426 board and the department, as appropriate, are authorized to cash
1427 out a de minimis account of a member who has been terminated
1428 from Florida Retirement System covered employment for a minimum
1429 of 6 calendar months. A de minimis account is an account
1430 containing employer and employee contributions and accumulated
1431 earnings of not more than $5,000 made under the provisions of
1432 this chapter. Such cash-out must be a complete lump-sum
1433 liquidation of the account balance, subject to the provisions of
1434 the Internal Revenue Code, or a lump-sum direct rollover
1435 distribution paid directly to the custodian of an eligible
1436 retirement plan, as defined by the Internal Revenue Code, on
1437 behalf of the member. Any nonvested accumulations and associated
1438 service credit, including amounts transferred to the suspense
1439 account of the Florida Retirement System Investment Plan Trust
1440 Fund authorized under s. 121.4501(6), shall be forfeited upon
1441 payment of any vested benefit to a member or beneficiary, except
1442 for de minimis distributions or minimum required distributions
1443 as provided under this section. If any financial instrument
1444 issued for the payment of retirement benefits under this section
1445 is not presented for payment within 180 days after the last day
1446 of the month in which it was originally issued, the third-party
1447 administrator or other duly authorized agent of the state board
1448 shall cancel the instrument and credit the amount of the
1449 instrument to the suspense account of the Florida Retirement
1450 System Investment Plan Trust Fund authorized under s.
1451 121.4501(6). Any amounts transferred to the suspense account are
1452 payable upon a proper application, not to include earnings
1453 thereon, as provided in this section, within 10 years after the
1454 last day of the month in which the instrument was originally
1455 issued, after which time such amounts and any earnings
1456 attributable to employer contributions shall be forfeited. Any
1457 forfeited amounts are assets of the trust fund and are not
1458 subject to chapter 717.
1459 (2) DISABILITY RETIREMENT BENEFITS.—Benefits provided under
1460 this subsection are payable in lieu of the benefits that would
1461 otherwise be payable under the provisions of subsection (1).
1462 Such benefits must be funded from employer contributions made
1463 under s. 121.571, transferred employee contributions and funds
1464 accumulated pursuant to paragraph (a), and interest and earnings
1465 thereon.
1466 (b) Disability retirement; entitlement.—
1467 1.a. A member of the investment plan initially enrolled
1468 before July 1, 2015, who becomes totally and permanently
1469 disabled, as defined in paragraph (d), after completing 8 years
1470 of creditable service, or a member who becomes totally and
1471 permanently disabled in the line of duty regardless of length of
1472 service, is entitled to a monthly disability benefit.
1473 b. A member of the investment plan initially enrolled on or
1474 after July 1, 2015, who becomes totally and permanently
1475 disabled, as defined in paragraph (d), after completing 10 years
1476 of creditable service, or a member who becomes totally and
1477 permanently disabled in the line of duty regardless of service,
1478 is entitled to a monthly disability benefit.
1479 2. In order for service to apply toward the 8 years of
1480 creditable service required for regular disability benefits, or
1481 toward the creditable service used in calculating a service
1482 based benefit as provided under paragraph (g), the service must
1483 be creditable service as described below:
1484 a. The member’s period of service under the investment plan
1485 is shall be considered creditable service, except as provided in
1486 subparagraph d.
1487 b. If the member has elected to retain credit for service
1488 under the pension plan as provided under s. 121.4501(3), all
1489 such service is shall be considered creditable service.
1490 c. If the member elects to transfer to his or her member
1491 accounts a sum representing the present value of his or her
1492 retirement credit under the pension plan as provided under s.
1493 121.4501(3), the period of service under the pension plan
1494 represented in the present value amounts transferred is shall be
1495 considered creditable service, except as provided in
1496 subparagraph d.
1497 d. If a member has terminated employment and has taken
1498 distribution of his or her funds as provided in subsection (1),
1499 all creditable service represented by such distributed funds is
1500 forfeited for purposes of this subsection.
1501 Section 11. Section 238.072, Florida Statutes, is amended
1502 to read:
1503 238.072 Special service provisions for extension
1504 personnel.—All state and county cooperative extension personnel
1505 holding appointments by the United States Department of
1506 Agriculture for extension work in agriculture and home economics
1507 in this state who are joint representatives of the University of
1508 Florida and the United States Department of Agriculture, as
1509 provided in s. 121.051(8) s. 121.051(7), who are members of the
1510 Teachers’ Retirement System, chapter 238, and who are prohibited
1511 from transferring to and participating in the Florida Retirement
1512 System, chapter 121, may retire with full benefits upon
1513 completion of 30 years of creditable service and shall be
1514 considered to have attained normal retirement age under this
1515 chapter, any law to the contrary notwithstanding. In order to
1516 comply with the provisions of s. 14, Art. X of the State
1517 Constitution, any liability accruing to the Florida Retirement
1518 System Trust Fund as a result of the provisions of this section
1519 shall be paid on an annual basis from the General Revenue Fund.
1520 Section 12. Subsection (11) of section 413.051, Florida
1521 Statutes, is amended to read:
1522 413.051 Eligible blind persons; operation of vending
1523 stands.—
1524 (11) Effective July 1, 1996, blind licensees who remain
1525 members of the Florida Retirement System pursuant to s.
1526 121.051(7)(b)1. 121.051(6)(b)1. shall pay any unappropriated
1527 retirement costs from their net profits or from program income.
1528 Within 30 days after the effective date of this act, each blind
1529 licensee who is eligible to maintain membership in the Florida
1530 Retirement System under s. 121.051(7)(b)1. 121.051(6)(b)1., but
1531 who elects to withdraw from the system as provided in s.
1532 121.051(7)(b)3. 121.051(6)(b)3., must, on or before July 31,
1533 1996, notify the Division of Blind Services and the Department
1534 of Management Services in writing of his or her election to
1535 withdraw. Failure to timely notify the divisions shall be deemed
1536 a decision to remain a compulsory member of the Florida
1537 Retirement System. However, if, at any time after July 1, 1996,
1538 sufficient funds are not paid by a blind licensee to cover the
1539 required contribution to the Florida Retirement System, that
1540 blind licensee shall become ineligible to participate in the
1541 Florida Retirement System on the last day of the first month for
1542 which no contribution is made or the amount contributed is
1543 insufficient to cover the required contribution. For any blind
1544 licensee who becomes ineligible to participate in the Florida
1545 Retirement System as described in this subsection, no creditable
1546 service may not shall be earned under the Florida Retirement
1547 System for any period following the month that retirement
1548 contributions ceased to be reported. However, any such person
1549 may participate in the Florida Retirement System in the future
1550 if employed by a participating employer in a covered position.
1551 Section 13. (1) As soon as practicable, the State Board of
1552 Administration and the Department of Management Services shall
1553 request a determination letter from the United States Internal
1554 Revenue Service as to whether any portion of this act will cause
1555 the Florida Retirement System or a portion thereof to be
1556 disqualified for tax purposes under the Internal Revenue Code.
1557 If the Internal Revenue Service refuses to act upon a request
1558 for a determination letter, a legal opinion from a qualified tax
1559 attorney or firm may be substituted for the determination
1560 letter. If the board or the department receives notification
1561 from the Internal Revenue Service that this act or any portion
1562 of this act will cause the Florida Retirement System, or a
1563 portion thereof, to be disqualified for tax purposes under the
1564 Internal Revenue Code, that portion that will cause the
1565 disqualification does not apply. Upon receipt of such notice,
1566 the state board and the department shall notify the President of
1567 the Senate and the Speaker of the House of Representatives.
1568 (2) The State Board of Administration and the Department of
1569 Management Services shall also seek guidance from the United
1570 States Internal Revenue Service regarding potential consequences
1571 to the qualified status of the Florida Retirement System if the
1572 pension plan and the investment plan were to offer different
1573 pretax employee contributions rates to members participating in
1574 the same membership class. Upon receipt of such guidance, the
1575 state board and the department shall notify the President of the
1576 Senate and the Speaker of the House of Representatives.
1577 Section 14. The Department of Management Services shall
1578 commission a special actuarial study to determine the costs of
1579 providing a new death benefit through the pension plan for
1580 members of the Florida Retirement System Investment Plan who are
1581 killed in the line of duty. The study must examine the costs
1582 associated with offering a death benefit that allows the
1583 surviving spouse or surviving dependent children of an
1584 investment plan member killed in the line of duty to elect the
1585 death benefit provided under s. 121.091(7)(d), Florida Statutes,
1586 after transferring the value of the member’s investment account
1587 to the pension plan, in lieu of the current death benefit
1588 provided under the investment plan. The Department of Management
1589 Services shall consult with the Legislature about the
1590 alternatives to be considered and the level of detail to be
1591 included in the special study results. The results of such study
1592 shall be provided to the Governor, the President of the Senate,
1593 and the Speaker of the House of Representatives by March 1,
1594 2015.
1595 Section 15. The Legislature finds that a proper and
1596 legitimate state purpose is served when employees and retirees
1597 of the state and its political subdivisions, and the dependents,
1598 survivors, and beneficiaries of such employees and retirees, are
1599 extended the basic protections afforded by governmental
1600 retirement systems. These persons must be provided benefits that
1601 are fair and adequate and that are managed, administered, and
1602 funded in an actuarially sound manner, as required by s. 14,
1603 Article X of the State Constitution and part VII of chapter 112,
1604 Florida Statutes. Therefore, the Legislature determines and
1605 declares that this act fulfills an important state interest.
1606 Section 16. This act shall take effect July 1, 2014.
