ENROLLED
       2011 Legislature                          SB 2100, 3rd Engrossed
       
       
       
       
       
       
                                                             20112100er
    1  
    2         An act relating to retirement; amending ss. 110.123,
    3         112.0801, 112.363, 112.65, and 121.011, F.S.;
    4         conforming provisions to changes made by the act;
    5         amending s. 121.021, F.S.; revising definitions;
    6         amending s. 121.051, F.S.; requiring that a local
    7         governmental entity or the governing body of a charter
    8         school or charter technical career center make certain
    9         elections regarding benefits at the time the entity or
   10         governing body joins the Florida Retirement System;
   11         requiring employee retirement contributions; providing
   12         that employer-paid employee contributions are subject
   13         to certain taxes; amending s. 121.0515, F.S.;
   14         redefining membership in the Special Risk Class;
   15         redefining criteria for Special Risk Class membership;
   16         providing for employee contributions to be used, if
   17         applicable, when purchasing credit for past service;
   18         amending s. 121.052, F.S., relating to the membership
   19         class of elected officers; conforming provisions to
   20         changes made by the act; requiring member
   21         contributions; providing for a refund of contributions
   22         under certain circumstances for an officer who leaves
   23         office; providing that a member who obtains a refund
   24         of contributions waives certain rights under the
   25         Florida Retirement System; amending s. 121.053, F.S.;
   26         clarifying the employer contributions required for
   27         Elected Officers’ Class members who participate in the
   28         Deferred Retirement Option Program; amending s.
   29         121.055, F.S., relating to the Senior Management
   30         Service Class; conforming provisions to changes made
   31         by the act; requiring employee contributions;
   32         providing for a refund of contributions under certain
   33         circumstances for a member who terminates employment;
   34         providing that a member who obtains a refund of
   35         contributions waives certain rights under the Florida
   36         Retirement System; limiting the payment of benefits
   37         prior to a participant’s termination of employment;
   38         amending s. 121.061, F.S.; conforming provisions to
   39         changes made by the act; amending s. 121.071, F.S.;
   40         requiring employer and employee contributions to the
   41         retirement system; providing for a refund of
   42         contributions under certain circumstances following
   43         termination of employment; prohibiting such refund if
   44         an approved qualified domestic relations order is
   45         filed against the participant’s retirement account;
   46         providing that a member who obtains a refund of
   47         contributions waives certain rights under the Florida
   48         Retirement System; requiring repayment plus interest
   49         of an invalid refund; amending s. 121.081, F.S.;
   50         providing and revising requirements for contributions
   51         for prior service performed on or after a certain
   52         date; amending s. 121.091, F.S.; modifying the early
   53         retirement benefit calculation for those members
   54         retiring on or after a certain date or before the
   55         normal retirement date to reflect the change in normal
   56         retirement age; revising provisions relating to
   57         disability retirement for judges; providing for the
   58         refund of accumulated contributions if a member’s
   59         employment is terminated for any reason other than
   60         retirement; revising the interest rate on benefits for
   61         members enrolling in drop after a certain date;
   62         conforming provisions to changes made by the act;
   63         amending s. 121.1001, F.S.; conforming provisions to
   64         changes made by the act; amending s. 121.101, F.S.;
   65         revising the cost-of-living adjustment depending on
   66         the date of retirement; amending s. 121.1115, F.S.;
   67         conforming provisions to changes made by the act;
   68         amending s. 121.1122, F.S.; conforming provisions to
   69         changes made by the act; amending s. 121.121, F.S.;
   70         requiring that the purchase of creditable service
   71         following an authorized leave of absence be purchased
   72         at the employer and employee contribution rates in
   73         effect during the leave of absence after a certain
   74         date; amending s. 121.125, F.S.; requiring that a
   75         penalty be assessed against certain employers that
   76         fail to pay the required contributions for workers’
   77         compensation; reenacting s. 121.161, F.S.; conforming
   78         provisions to changes made by the act; amending s.
   79         121.182, F.S.; conforming provisions to changes made
   80         by the act; amending s. 121.35, F.S., relating to the
   81         optional retirement program for the State University
   82         System; requiring employee contributions; limiting the
   83         payment of benefits before a participant’s termination
   84         of employment; conforming provisions to changes made
   85         by the act; amending s. 121.355, F.S.; conforming
   86         provisions to changes made by the act; amending s.
   87         121.4501, F.S.; changing the name of the Public
   88         Employee Optional Retirement Program to the Florida
   89         Retirement System Investment Plan; requiring members
   90         to make certain contributions to the plan; revising
   91         and providing definitions; revising the benefit
   92         commencement age for a member enrolled on or after a
   93         certain date; providing for contribution adjustments
   94         as a result of employer errors or corrections;
   95         requiring an employer to receive a credit for excess
   96         contributions and to reimburse an employee for excess
   97         contributions, subject to certain limitations;
   98         providing for a pension plan participant to retain his
   99         or her prior plan choice following a return to
  100         employment; prohibiting a retiree who is reemployed
  101         from renewing membership in the plan; limiting certain
  102         refunds of contributions which exceed the amount that
  103         would have accrued had the member remained in the
  104         defined benefit program; providing certain
  105         requirements and limitations with respect to
  106         contributions; clarifying that participant and
  107         employer contributions are earmarked for specified
  108         purposes; providing duties of the third-party
  109         administrator; providing that a member is fully and
  110         immediately vested with respect to employee
  111         contributions paid by the member; providing for the
  112         forfeiture of nonvested employer contributions and
  113         service credit under certain circumstances; conforming
  114         provisions to changes made by the act; amending s.
  115         121.4502, F.S.; changing the name of the Public
  116         Employee Optional Retirement Program Trust Fund to the
  117         Florida Retirement System Investment Plan Trust Fund;
  118         amending s. 121.4503, F.S.; providing for the deposit
  119         of employee contributions into the Florida Retirement
  120         System Contributions Clearing Trust Fund; amending s.
  121         121.571, F.S.; providing requirements for submitting
  122         employee contributions; amending s. 121.591, F.S.;
  123         limiting the payment of benefits prior to a member’s
  124         termination of employment; providing for the
  125         forfeiture of nonvested accumulations and service
  126         credits upon payment of certain vested benefits;
  127         providing that the distribution payment method
  128         selected by the member or beneficiary is final and
  129         irrevocable at the time of benefit distribution;
  130         prohibiting a distribution of employee contributions
  131         if a qualified domestic relations order is filed
  132         against the participant’s account; conforming
  133         provisions to changes made by the act; amending s.
  134         121.5911, F.S.; conforming provisions to changes made
  135         by the act; amending s. 121.70, F.S.; revising
  136         legislative intent; amending s. 121.71, F.S.;
  137         requiring that employee contributions be deducted from
  138         the employee’s monthly salary, beginning on a
  139         specified date, and treated as employer contributions
  140         under certain provisions of federal law; clarifying
  141         that an employee may not receive such contributions
  142         directly; specifying the required employee retirement
  143         contribution rates for the membership of each
  144         membership class and subclass of the Florida
  145         Retirement System; specifying the required employer
  146         retirement contribution rates for each membership
  147         class and subclass of the Florida Retirement System in
  148         order to address unfunded actuarial liabilities of the
  149         system; requiring an assessment to be imposed if the
  150         employee contributions remitted are less than the
  151         amount required under certain circumstances; providing
  152         for the employer to receive a credit for excess
  153         contributions remitted and to apply such credit
  154         against future contributions owed; amending ss.
  155         121.72, 121.73, 121.74, 121.75, and 121.77, F.S.;
  156         conforming provisions to changes made by the act;
  157         amending s. 121.78, F.S.; requiring that certain fees
  158         be imposed for delinquent payments for retirement
  159         contributions; providing that an employer is
  160         responsible for recovering any refund provided to an
  161         employee in error; revising the terms of an authorized
  162         waiver of delinquency; requiring an employer to
  163         receive a credit for excess contributions and to
  164         reimburse an employee for excess contributions,
  165         subject to certain limitations; amending s. 1012.875,
  166         F.S.; requiring employer and employee contributions
  167         for members of the State Community College System
  168         Optional Retirement Program on a certain date;
  169         limiting the payment of benefits prior to a
  170         participant’s termination of employment; requiring the
  171         State Board of Administration and the Department of
  172         Management Services to request a determination letter
  173         and private letter ruling from the United States
  174         Internal Revenue Service; providing legislative
  175         findings; providing that the act fulfills an important
  176         state interest; providing appropriations to and
  177         authorizing additional positions for the Division of
  178         Retirement within the Department of Management
  179         Services; providing effective dates.
  180  
  181  Be It Enacted by the Legislature of the State of Florida:
  182  
  183         Section 1. Paragraph (g) of subsection (2) of section
  184  110.123, Florida Statutes, is amended to read:
  185         110.123 State group insurance program.—
  186         (2) DEFINITIONS.—As used in this section, the term:
  187         (g) “Retired state officer or employee” or “retiree” means
  188  any state or state university officer or employee who retires
  189  under a state retirement system or a state optional annuity or
  190  retirement program or is placed on disability retirement, and
  191  who was insured under the state group insurance program at the
  192  time of retirement, and who begins receiving retirement benefits
  193  immediately after retirement from state or state university
  194  office or employment. The term also includes In addition to
  195  these requirements, any state officer or state employee who
  196  retires under the Florida Retirement System Investment Plan
  197  Public Employee Optional Retirement Program established under
  198  part II of chapter 121 shall be considered a “retired state
  199  officer or employee” or “retiree” as used in this section if he
  200  or she:
  201         1. Meets the age and service requirements to qualify for
  202  normal retirement as set forth in s. 121.021(29); or
  203         2. Has attained the age specified by s. 72(t)(2)(A)(i) of
  204  the Internal Revenue Code and has 6 years of creditable service.
  205         Section 2. Section 112.0801, Florida Statutes, is amended
  206  to read:
  207         112.0801 Group insurance; participation by retired
  208  employees.—
  209         (1) Any state agency, county, municipality, special
  210  district, community college, or district school board that which
  211  provides life, health, accident, hospitalization, or annuity
  212  insurance, or all of any kinds of such insurance, for its
  213  officers and employees and their dependents upon a group
  214  insurance plan or self-insurance plan shall allow all former
  215  personnel who have retired before prior to October 1, 1987, as
  216  well as those who retire on or after such date, and their
  217  eligible dependents, the option of continuing to participate in
  218  the such group insurance plan or self-insurance plan. Retirees
  219  and their eligible dependents shall be offered the same health
  220  and hospitalization insurance coverage as is offered to active
  221  employees at a premium cost of no more than the premium cost
  222  applicable to active employees. For the retired employees and
  223  their eligible dependents, the cost of any such continued
  224  participation in any type of plan or any of the cost thereof may
  225  be paid by the employer or by the retired employees. To
  226  determine health and hospitalization plan costs, the employer
  227  shall commingle the claims experience of the retiree group with
  228  the claims experience of the active employees; and, for other
  229  types of coverage, the employer may commingle the claims
  230  experience of the retiree group with the claims experience of
  231  active employees. Retirees covered under Medicare may be
  232  experience-rated separately from the retirees not covered by
  233  Medicare and from active employees if, provided that the total
  234  premium does not exceed that of the active group and coverage is
  235  basically the same as for the active group.
  236         (2) For purposes of this section, “retiree” means any
  237  officer or employee who retires under a state retirement system
  238  or a state optional annuity or retirement program or is placed
  239  on disability retirement and who begins receiving retirement
  240  benefits immediately after retirement from employment. In
  241  addition to these requirements, any officer or employee who
  242  retires under the Florida Retirement System Investment Plan
  243  Public Employee Optional Retirement Program established under
  244  part II of chapter 121 is shall be considered a “retired officer
  245  or employee” or “retiree” as used in this section if he or she:
  246         (a) Meets the age and service requirements to qualify for
  247  normal retirement as set forth in s. 121.021(29); or
  248         (b) Has attained the age specified by s. 72(t)(2)(A)(i) of
  249  the Internal Revenue Code and has the years of service required
  250  for vesting as set forth in s. 121.021(45) 6 years of creditable
  251  service.
  252         Section 3. Paragraphs (b) and (c) of subsection (2) and
  253  paragraph (e) of subsection (3) of section 112.363, Florida
  254  Statutes, are amended to read:
  255         112.363 Retiree health insurance subsidy.—
  256         (2) ELIGIBILITY FOR RETIREE HEALTH INSURANCE SUBSIDY.—
  257         (b) For purposes of this section, a person is deemed
  258  retired from a state-administered retirement system when he or
  259  she terminates employment with all employers participating in
  260  the Florida Retirement System as described in s. 121.021(39)
  261  and:
  262         1. For a member participant of the investment plan Public
  263  Employee Optional Retirement Program established under part II
  264  of chapter 121, the participant meets the age or service
  265  requirements to qualify for normal retirement as set forth in s.
  266  121.021(29) and meets the definition of retiree in s.
  267  121.4501(2).
  268         2. For a member of the Florida Retirement System Pension
  269  Plan defined benefit program, or any employee who maintains
  270  creditable service under both the pension plan defined benefit
  271  program and the investment plan Public Employee Optional
  272  Retirement Program, the member begins drawing retirement
  273  benefits from the pension plan defined benefit program of the
  274  Florida Retirement System.
  275         (c)1. Effective July 1, 2001, any person retiring on or
  276  after that such date as a member of the Florida Retirement
  277  System, including a member any participant of the investment
  278  plan defined contribution program administered pursuant to part
  279  II of chapter 121, must have satisfied the vesting requirements
  280  for his or her membership class under the pension plan Florida
  281  Retirement System defined benefit program as administered under
  282  part I of chapter 121. However,
  283         2. Notwithstanding the provisions of subparagraph 1., a
  284  person retiring due to disability must either qualify for a
  285  regular or in-line-of-duty disability benefit as provided in s.
  286  121.091(4) or qualify for a disability benefit under a
  287  disability plan established under part II of chapter 121, as
  288  appropriate.
  289         (3) RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.—
  290         (e)1. Beginning July 1, 2001, each eligible retiree of the
  291  pension plan defined benefit program of the Florida Retirement
  292  System, or, if the retiree is deceased, his or her beneficiary
  293  who is receiving a monthly benefit from such retiree’s account
  294  and who is a spouse, or a person who meets the definition of
  295  joint annuitant in s. 121.021(28), shall receive a monthly
  296  retiree health insurance subsidy payment equal to the number of
  297  years of creditable service, as defined in s. 121.021(17),
  298  completed at the time of retirement multiplied by $5; however,
  299  no eligible retiree or beneficiary may receive a subsidy payment
  300  of more than $150 or less than $30. If there are multiple
  301  beneficiaries, the total payment may must not be greater than
  302  the payment to which the retiree was entitled. The health
  303  insurance subsidy amount payable to any person receiving the
  304  retiree health insurance subsidy payment on July 1, 2001, may
  305  shall not be reduced solely by operation of this subparagraph.
  306         2. Beginning July 1, 2002, each eligible member participant
  307  of the investment plan Public Employee Optional Retirement
  308  Program of the Florida Retirement System who has met the
  309  requirements of this section, or, if the member participant is
  310  deceased, his or her spouse who is the member’s participant’s
  311  designated beneficiary, shall receive a monthly retiree health
  312  insurance subsidy payment equal to the number of years of
  313  creditable service, as provided in this subparagraph, completed
  314  at the time of retirement, multiplied by $5; however, an no
  315  eligible retiree or beneficiary may not receive a subsidy
  316  payment of more than $150 or less than $30. For purposes of
  317  determining a member’s participant’s creditable service used to
  318  calculate the health insurance subsidy, a member’s participant’s
  319  years of service credit or fraction thereof shall be based on
  320  the member’s participant’s work year as defined in s.
  321  121.021(54). Credit must shall be awarded for a full work year
  322  if whenever health insurance subsidy contributions have been
  323  made as required by law for each month in the member’s
  324  participant’s work year. In addition, all years of creditable
  325  service retained under the Florida Retirement System Pension
  326  Plan must defined benefit program shall be included as
  327  creditable service for purposes of this section. Notwithstanding
  328  any other provision in this section to the contrary, the spouse
  329  at the time of death is shall be the member’s participant’s
  330  beneficiary unless such member participant has designated a
  331  different beneficiary subsequent to the member’s participant’s
  332  most recent marriage.
  333         Section 4. Subsection (1) of section 112.65, Florida
  334  Statutes, is amended to read:
  335         112.65 Limitation of benefits.—
  336         (1) ESTABLISHMENT OF PROGRAM.—The normal retirement benefit
  337  or pension payable to a retiree who becomes a member of any
  338  retirement system or plan and who has not previously
  339  participated in such plan, on or after January 1, 1980, may
  340  shall not exceed 100 percent of his or her average final
  341  compensation. However, nothing contained in this section does
  342  not shall apply to supplemental retirement benefits or to
  343  pension increases attributable to cost-of-living increases or
  344  adjustments. For the purposes of this section, benefits accruing
  345  in individual member participant accounts established under the
  346  investment plan Public Employee Optional Retirement Program
  347  established in part II of chapter 121 are considered
  348  supplemental benefits. As used in this section, the term
  349  “average final compensation” means the average of the member’s
  350  earnings over a period of time which the governmental entity has
  351  established by statute, charter, or ordinance.
  352         Section 5. Paragraph (g) of subsection (3) of section
  353  121.011, Florida Statutes, is amended, and paragraph (h) is
  354  added to that subsection, to read:
  355         121.011 Florida Retirement System.—
  356         (3) PRESERVATION OF RIGHTS.—
  357         (g) Any member of the Florida Retirement System or any
  358  member of an existing system under this chapter who is not
  359  retired and who is, has been, or shall be dismissed from
  360  employment shall be considered terminated from active membership
  361  in such system.
  362         1. If such dismissal is rescinded by proper authority or
  363  through legal proceedings, the member is eligible to receive
  364  retirement service credit for such period of dismissal if
  365  provided:
  366         a. The dismissal action taken against the member is
  367  determined to be incorrect and is negated, the employee is made
  368  whole for the period of the dismissal or any portion thereof,
  369  and employment is reinstated; and
  370         b. The employer pays into the Retirement System Trust Fund
  371  the total required employer contributions for the period for
  372  which the employee is made whole, plus interest at 6.5 percent
  373  compounded annually until full payment is made. The employee
  374  shall pay the total employee contributions, plus interest, if
  375  applicable. The employer shall pay the interest on employee
  376  contributions, if applicable.
  377         2. If the dismissal action is subsequently changed to a
  378  suspension by proper authority or through legal proceedings, the
  379  member is eligible to receive retirement service credit,
  380  provided the member’s employment is reinstated, restoring the
  381  employee-employer relationship, and the employee pays the total
  382  required employer and employee contributions and complies with
  383  all requirements in paragraph (e).
  384         (h) Effective July 1, 2011, the retirement system shall
  385  require employer and employee contributions as provided in s.
  386  121.071 and part III of this chapter.
  387         Section 6. Subsections (3), (7), and (15), paragraph (a) of
  388  subsection (19), paragraph (b) of subsection (22), and
  389  subsections (24), (29), (38), (39), (45), (55), and (59) of
  390  section 121.021, Florida Statutes, are amended to read:
  391         121.021 Definitions.—The following words and phrases as
  392  used in this chapter have the respective meanings set forth
  393  unless a different meaning is plainly required by the context:
  394         (3) “Florida Retirement System” or “system” means the
  395  general retirement system established by this chapter, to be
  396  known and cited as the “Florida Retirement System,” including,
  397  but not limited to, the defined benefit retirement program
  398  administered under the provisions of part I of this part,
  399  referred to as the “Florida Retirement System Pension Plan” or
  400  “pension plan,” chapter and the defined contribution retirement
  401  program known as the Public Employee Optional Retirement Program
  402  and administered under the provisions of part II of this
  403  chapter, referred to as the “Florida Retirement System
  404  Investment Plan” or “investment plan”.
  405         (7) “Division” means the Division of Retirement in the
  406  department. “City” means any municipality duly incorporated
  407  under the laws of the state.
  408         (15) “Special risk member” or “Special Risk Class member”
  409  means a member of the Florida Retirement System who meets the
  410  eligibility and criteria required under s. 121.0515 for
  411  participation in the Special Risk Class.
  412         (a) Until October 1, 1978, “special risk member” means any
  413  officer or employee whose application is approved by the
  414  administrator and who receives salary payments for work
  415  performed as a peace officer; law enforcement officer; police
  416  officer; highway patrol officer; custodial employee at a
  417  correctional or detention facility; correctional agency employee
  418  whose duties and responsibilities involve direct contact with
  419  inmates, but excluding secretarial and clerical employees;
  420  firefighter; or an employee in any other job in the field of law
  421  enforcement or fire protection if the duties of such person are
  422  certified as hazardous by his or her employer.
  423         (b) Effective October 1, 1978, “special risk member” means
  424  a member of the Florida Retirement System who is designated as a
  425  special risk member by the division in accordance with s.
  426  121.0515. Such member must be employed as a law enforcement
  427  officer, a firefighter, or a correctional officer and must meet
  428  certain other special criteria as set forth in s. 121.0515.
  429         (c) Effective October 1, 1999, “special risk member” means
  430  a member of the Florida Retirement System who is designated as a
  431  special risk member by the division in accordance with s.
  432  121.0515. Such member must be employed as a law enforcement
  433  officer, a firefighter, a correctional officer, an emergency
  434  medical technician, or a paramedic and must meet certain other
  435  special criteria as set forth in s. 121.0515.
  436         (d)1. Effective January 1, 2001, “special risk member”
  437  includes any member who is employed as a community-based
  438  correctional probation officer and meets the special criteria
  439  set forth in s. 121.0515(2)(e).
  440         2. Effective January 1, 2001, “special risk member”
  441  includes any professional health care bargaining unit or non
  442  unit member who is employed by the Department of Corrections or
  443  the Department of Children and Family Services and meets the
  444  special criteria set forth in s. 121.0515(2)(f).
  445         (e) Effective July 1, 2001, the term “special risk member”
  446  includes any member who is employed as a youth custody officer
  447  by the Department of Juvenile Justice and meets the special
  448  criteria set forth in s. 121.0515(2)(g).
  449         (f) Effective August 1, 2008, “special risk member”
  450  includes any member who meets the special criteria for continued
  451  membership set forth in s. 121.0515(2)(k).
  452         (19) “Prior service” under part I of this chapter means:
  453         (a) Service for which the member had credit under one of
  454  the existing systems and received a refund of his or her
  455  contributions upon termination of employment. Prior service
  456  shall also includes include that service between December 1,
  457  1970, and the date the system becomes noncontributory for which
  458  the member had credit under the Florida Retirement System and
  459  received a refund of his or her contributions upon termination
  460  of employment.
  461         (22) “Compensation” means the monthly salary paid a member
  462  by his or her employer for work performed arising from that
  463  employment.
  464         (b) Under no circumstances shall Compensation for a member
  465  participating in the pension plan defined benefit retirement
  466  program or the investment plan Public Employee Optional
  467  Retirement Program of the Florida Retirement System may not
  468  include:
  469         1. Fees paid professional persons for special or particular
  470  services or include salary payments made from a faculty practice
  471  plan authorized by the Board of Governors of the State
  472  University System for eligible clinical faculty at a college in
  473  a state university that has a faculty practice plan; or
  474         2. Any bonuses or other payments prohibited from inclusion
  475  in the member’s average final compensation and defined in
  476  subsection (47).
  477         (24)(a) “Average final compensation” means:
  478         1. For members initially enrolled before July 1, 2011, the
  479  average of the 5 highest fiscal years of compensation for
  480  creditable service before prior to retirement, termination, or
  481  death. For in-line-of-duty disability benefits, if less than 5
  482  years of creditable service have been completed, the term
  483  “average final compensation” means the average annual
  484  compensation of the total number of years of creditable service.
  485  Each year used to calculate the in the calculation of average
  486  final compensation commences shall commence on July 1.
  487         2. For members initially enrolled on or after July 1, 2011,
  488  the average of the 8 highest fiscal years of compensation for
  489  creditable service before retirement, termination, or death. For
  490  in-line-of-duty disability benefits, if less than 8 years of
  491  creditable service have been completed, the term means the
  492  average annual compensation of the total number of years of
  493  creditable service. Each year used to calculate average final
  494  compensation commences on July 1.
  495         (b)(a) The average final compensation includes shall
  496  include:
  497         1. Accumulated annual leave payments, not to exceed 500
  498  hours; and
  499         2. All payments defined as compensation in subsection (22).
  500         (c)(b) The average final compensation does shall not
  501  include:
  502         1. Compensation paid to professional persons for special or
  503  particular services;
  504         2. Payments for accumulated sick leave made due to
  505  retirement or termination;
  506         3. Payments for accumulated annual leave in excess of 500
  507  hours;
  508         4. Bonuses as defined in subsection (47);
  509         5. Third party payments made on and after July 1, 1990; or
  510         6. Fringe benefits (for example, automobile allowances or
  511  housing allowances).
  512         (29) “Normal retirement date” means the date a member
  513  attains normal retirement age and is vested, which is determined
  514  as follows:
  515         (a)1. If a Regular Class member, a Senior Management
  516  Service Class member, or an Elected Officers’ Class member
  517  initially enrolled before July 1, 2011:
  518         a.1. The first day of the month the member completes 6 or
  519  more years of creditable service and attains age 62; or
  520         b.2. The first day of the month following the date the
  521  member completes 30 years of creditable service, regardless of
  522  age.
  523         2. If a Regular Class member, a Senior Management Service
  524  Class member, or an Elected Officers’ Class member initially
  525  enrolled on or after July 1, 2011:
  526         a. The first day of the month the member attains age 65; or
  527         b. The first day of the month following the date the member
  528  completes 33 years of creditable service, regardless of age.
  529         (b)1. If a Special Risk Class member initially enrolled
  530  before July 1, 2011:
  531         a.1. The first day of the month the member completes 6 or
  532  more years of creditable service in the Special Risk Class and
  533  attains age 55 and completes the years of creditable service in
  534  the Special Risk Class equal to or greater than the years of
  535  service required for vesting;
  536         b.2. The first day of the month following the date the
  537  member completes 25 years of creditable service in the Special
  538  Risk Class, regardless of age; or
  539         c.3. The first day of the month following the date the
  540  member completes 25 years of creditable service and attains age
  541  52, which service may include a maximum of 4 years of military
  542  service credit if as long as such credit is not claimed under
  543  any other system and the remaining years are in the Special Risk
  544  Class.
  545         2. If a Special Risk Class member initially enrolled on or
  546  after July 1, 2011:
  547         a. The first day of the month the member attains age 60 and
  548  completes the years of creditable service in the Special Risk
  549  Class equal to or greater than the years of service required for
  550  vesting;
  551         b. The first day of the month following the date the member
  552  completes 30 years of creditable service in the Special Risk
  553  Class, regardless of age; or
  554         c. The first day of the month following the date the member
  555  completes 30 years of creditable service and attains age 57,
  556  which service may include a maximum of 4 years of military
  557  service credit if such credit is not claimed under any other
  558  system and the remaining years are in the Special Risk Class.
  559  
  560  “Normal retirement age” is attained on the “normal retirement
  561  date.”
  562         (38) “Continuous service” means creditable service as a
  563  member, beginning with the first day of employment with an
  564  employer covered under a state-administered retirement system
  565  consolidated herein and continuing for as long as the member
  566  remains in an employer-employee relationship with an employer
  567  covered under this chapter. An absence of 1 calendar month or
  568  more from an employer’s payroll shall be considered a break in
  569  continuous service, except for periods of absence during which
  570  an employer-employee relationship continues to exist and such
  571  period of absence is creditable under this chapter or under one
  572  of the existing systems consolidated herein. However, a law
  573  enforcement officer as defined in s. 121.0515(3)(2)(a) who was a
  574  member of a state-administered retirement system under chapter
  575  122 or chapter 321 and who resigned and was subsequently
  576  reemployed in a law enforcement position within 12 calendar
  577  months of such resignation by an employer under such state
  578  administered retirement system shall be deemed to have not
  579  experienced a break in service. Further, with respect to a
  580  state-employed law enforcement officer who meets the criteria
  581  specified in s. 121.0515(3)(2)(a), if the absence from the
  582  employer’s payroll is the result of a “layoff” as defined in s.
  583  110.107 or a resignation to run for an elected office that meets
  584  the criteria specified in s. 121.0515(3)(2)(a), no break in
  585  continuous service shall be deemed to have occurred if the
  586  member is reemployed as a state law enforcement officer or is
  587  elected to an office which meets the criteria specified in s.
  588  121.0515(3)(2)(a) within 12 calendar months after the date of
  589  the layoff or resignation, notwithstanding the fact that such
  590  period of layoff or resignation is not creditable service under
  591  this chapter. A withdrawal of contributions will constitute a
  592  break in service. Continuous service also includes past service
  593  purchased under this chapter, provided such service is
  594  continuous within this definition and the rules established by
  595  the administrator. The administrator may establish
  596  administrative rules and procedures for applying this definition
  597  to creditable service authorized under this chapter. Any
  598  correctional officer, as defined in s. 943.10, whose
  599  participation in the state-administered retirement system is
  600  terminated due to the transfer of a county detention facility
  601  through a contractual agreement with a private entity pursuant
  602  to s. 951.062, shall be deemed an employee with continuous
  603  service in the Special Risk Class, provided return to employment
  604  with the former employer takes place within 3 years due to
  605  contract termination or the officer is employed by a covered
  606  employer in a special risk position within 1 year after his or
  607  her initial termination of employment by such transfer of its
  608  detention facilities to the private entity.
  609         (39)(a) “Termination” occurs, except as provided in
  610  paragraph (b), when a member ceases all employment relationships
  611  with participating employers an employer, however:
  612         1. For retirements effective before July 1, 2010, if a
  613  member is employed by any such employer within the next calendar
  614  month, termination shall be deemed not to have occurred. A leave
  615  of absence constitutes a continuation of the employment
  616  relationship, except that a leave of absence without pay due to
  617  disability may constitute termination if such member makes
  618  application for and is approved for disability retirement in
  619  accordance with s. 121.091(4). The department or state board may
  620  require other evidence of termination as it deems necessary.
  621         2. For retirements effective on or after July 1, 2010, if a
  622  member is employed by any such employer within the next 6
  623  calendar months, termination shall be deemed not to have
  624  occurred. A leave of absence constitutes a continuation of the
  625  employment relationship, except that a leave of absence without
  626  pay due to disability may constitute termination if such member
  627  makes application for and is approved for disability retirement
  628  in accordance with s. 121.091(4). The department or state board
  629  may require other evidence of termination as it deems necessary.
  630         (b) “Termination” for a member electing to participate in
  631  the Deferred Retirement Option Program occurs when the program
  632  participant ceases all employment relationships with
  633  participating employers an employer in accordance with s.
  634  121.091(13), however:
  635         1. For termination dates occurring before July 1, 2010, if
  636  the member participant is employed by any such employer within
  637  the next calendar month, termination will be deemed not to have
  638  occurred, except as provided in s. 121.091(13)(b)4.c. A leave of
  639  absence shall constitute a continuation of the employment
  640  relationship.
  641         2. For termination dates occurring on or after July 1,
  642  2010, if the member participant becomes employed by any such
  643  employer within the next 6 calendar months, termination will be
  644  deemed not to have occurred, except as provided in s.
  645  121.091(13)(b)4.c. A leave of absence constitutes a continuation
  646  of the employment relationship.
  647         (c) Effective July 1, 2011, “termination” for a member
  648  receiving a refund of employee contributions occurs when a
  649  member ceases all employment relationships with participating
  650  employers for 3 calendar months. A leave of absence constitutes
  651  a continuation of the employment relationship.
  652         (45)(a) “Vested” or “vesting” means the guarantee that a
  653  member is eligible to receive a future retirement benefit upon
  654  completion of the required years of creditable service for the
  655  employee’s class of membership, even though the member may have
  656  terminated covered employment before reaching normal or early
  657  retirement date. Being vested does not entitle a member to a
  658  disability benefit. Provisions governing entitlement to
  659  disability benefits are set forth under s. 121.091(4).
  660         (a)(b) Effective July 1, 2001, through June 30, 2011, a 6
  661  year vesting requirement shall be implemented for the defined
  662  benefit program of the Florida Retirement System Pension Plan
  663  System. Pursuant thereto:
  664         1. Any member employed in a regularly established position
  665  on July 1, 2001, who completes or has completed a total of 6
  666  years of creditable service is shall be considered vested as
  667  described in paragraph (a).
  668         2. Any member not employed in a regularly established
  669  position on July 1, 2001, shall be deemed vested upon completion
  670  of 6 years of creditable service if, provided that such member
  671  is employed in a covered position for at least 1 work year after
  672  July 1, 2001. However, a no member is not shall be required to
  673  complete more years of creditable service than would have been
  674  required for that member to vest under retirement laws in effect
  675  before July 1, 2001.
  676         3. Any member initially enrolled in the Florida Retirement
  677  System on July 1, 2001, through June 30, 2011, shall be deemed
  678  vested upon completion of 6 years of creditable service.
  679         (b) Any member initially enrolled in the Florida Retirement
  680  System on or after July 1, 2011, shall be vested upon completion
  681  of 8 years of creditable service.
  682         (55) “Benefit” means any pension payment, lump-sum or
  683  periodic, to a member, retiree, or beneficiary, based partially
  684  or entirely on employer contributions or employee contributions,
  685  if applicable.
  686         (59) “Payee” means a retiree or beneficiary of a retiree
  687  who has received or is receiving a retirement benefit payment.
  688         Section 7. Paragraphs (b) and (c) of subsection (2) and
  689  subsection (3) of section 121.051, Florida Statutes, are amended
  690  to read:
  691         121.051 Participation in the system.—
  692         (2) OPTIONAL PARTICIPATION.—
  693         (b)1. The governing body of any municipality, metropolitan
  694  planning organization, or special district in the state may
  695  elect to participate in the Florida Retirement System upon
  696  proper application to the administrator and may cover all or any
  697  of its units as approved by the Secretary of Health and Human
  698  Services and the administrator. The department shall adopt rules
  699  establishing procedures provisions for the submission of
  700  documents necessary for such application. Before Prior to being
  701  approved for participation in the Florida Retirement system, the
  702  governing body of a any such municipality, metropolitan planning
  703  organization, or special district that has a local retirement
  704  system must shall submit to the administrator a certified
  705  financial statement showing the condition of the local
  706  retirement system as of a date within 3 months before prior to
  707  the proposed effective date of membership in the Florida
  708  Retirement System. The statement must be certified by a
  709  recognized accounting firm that is independent of the local
  710  retirement system. All required documents necessary for
  711  extending Florida Retirement System coverage must be received by
  712  the department for consideration at least 15 days before prior
  713  to the proposed effective date of coverage. If the municipality,
  714  metropolitan planning organization, or special district does not
  715  comply with this requirement, the department may require that
  716  the effective date of coverage be changed.
  717         2. A municipality Any city, metropolitan planning
  718  organization, or special district that has an existing
  719  retirement system covering the employees in the units that are
  720  to be brought under the Florida Retirement System may
  721  participate only after holding a referendum in which all
  722  employees in the affected units have the right to participate.
  723  Only those employees electing coverage under the Florida
  724  Retirement System by affirmative vote in the said referendum are
  725  shall be eligible for coverage under this chapter, and those not
  726  participating or electing not to be covered by the Florida
  727  Retirement System shall remain in their present systems and are
  728  shall not be eligible for coverage under this chapter. After the
  729  referendum is held, all future employees are shall be compulsory
  730  members of the Florida Retirement System.
  731         3. At the time of joining the Florida Retirement System,
  732  the governing body of a municipality any city, metropolitan
  733  planning organization, or special district complying with
  734  subparagraph 1. may elect to provide, or not provide, benefits
  735  based on past service of officers and employees as described in
  736  s. 121.081(1). However, if such employer elects to provide past
  737  service benefits, such benefits must be provided for all
  738  officers and employees of its covered group.
  739         4. Once this election is made and approved it may not be
  740  revoked, except pursuant to subparagraphs 5. and 6., and all
  741  present officers and employees electing coverage under this
  742  chapter and all future officers and employees are shall be
  743  compulsory members of the Florida Retirement System.
  744         5. Subject to the conditions set forth in subparagraph 6.,
  745  the governing body of a any hospital licensed under chapter 395
  746  which is governed by the board of a special district as defined
  747  in s. 189.403(1) or by the board of trustees of a public health
  748  trust created under s. 154.07, hereinafter referred to as
  749  “hospital district,” and which participates in the Florida
  750  Retirement System, may elect to cease participation in the
  751  system with regard to future employees in accordance with the
  752  following procedure:
  753         a. No more than 30 days and at least 7 days before adopting
  754  a resolution to partially withdraw from the Florida Retirement
  755  system and establish an alternative retirement plan for future
  756  employees, a public hearing must be held on the proposed
  757  withdrawal and proposed alternative plan.
  758         b. From 7 to 15 days before such hearing, notice of intent
  759  to withdraw, specifying the time and place of the hearing, must
  760  be provided in writing to employees of the hospital district
  761  proposing partial withdrawal and must be published in a
  762  newspaper of general circulation in the area affected, as
  763  provided by ss. 50.011-50.031. Proof of publication must of such
  764  notice shall be submitted to the Department of Management
  765  Services.
  766         c. The governing body of a any hospital district seeking to
  767  partially withdraw from the system must, before such hearing,
  768  have an actuarial report prepared and certified by an enrolled
  769  actuary, as defined in s. 112.625(3), illustrating the cost to
  770  the hospital district of providing, through the retirement plan
  771  that the hospital district is to adopt, benefits for new
  772  employees comparable to those provided under the Florida
  773  Retirement system.
  774         d. Upon meeting all applicable requirements of this
  775  subparagraph, and subject to the conditions set forth in
  776  subparagraph 6., partial withdrawal from the system and adoption
  777  of the alternative retirement plan may be accomplished by
  778  resolution duly adopted by the hospital district board. The
  779  hospital district board must provide written notice of such
  780  withdrawal to the division by mailing a copy of the resolution
  781  to the division, postmarked by no later than December 15, 1995.
  782  The withdrawal shall take effect January 1, 1996.
  783         6. Following the adoption of a resolution under sub
  784  subparagraph 5.d., all employees of the withdrawing hospital
  785  district who were members of participants in the Florida
  786  Retirement system before prior to January 1, 1996, shall remain
  787  as members of participants in the system for as long as they are
  788  employees of the hospital district, and all rights, duties, and
  789  obligations between the hospital district, the system, and the
  790  employees shall remain in full force and effect. Any employee
  791  who is hired or appointed on or after January 1, 1996, may not
  792  participate in the Florida Retirement system, and the
  793  withdrawing hospital district has shall have no obligation to
  794  the system with respect to such employees.
  795         (c) Employees of public community colleges or charter
  796  technical career centers sponsored by public community colleges,
  797  designated in s. 1000.21(3), who are members of the Regular
  798  Class of the Florida Retirement System and who comply with the
  799  criteria set forth in this paragraph and s. 1012.875 may, in
  800  lieu of participating in the Florida Retirement System, elect to
  801  withdraw from the system altogether and participate in the State
  802  Community College System Optional Retirement Program provided by
  803  the employing agency under s. 1012.875.
  804         1.a. Through June 30, 2001, the cost to the employer for
  805  benefits under the optional retirement program such annuity
  806  equals the normal cost portion of the employer retirement
  807  contribution which would be required if the employee were a
  808  member of the pension plan’s Regular Class defined benefit
  809  program, plus the portion of the contribution rate required by
  810  s. 112.363(8) which would otherwise be assigned to the Retiree
  811  Health Insurance Subsidy Trust Fund.
  812         b. Effective July 1, 2001, through June 30, 2011, each
  813  employer shall contribute on behalf of each member of
  814  participant in the optional program an amount equal to 10.43
  815  percent of the employee’s participant’s gross monthly
  816  compensation. The employer shall deduct an amount for the
  817  administration of the program.
  818         c. Effective July 1, 2011, each member shall contribute an
  819  amount equal to the employee contribution required under s.
  820  121.71(3). The employer shall contribute on behalf of each
  821  program member an amount equal to the difference between 10.43
  822  percent of the employee’s gross monthly compensation and the
  823  employee’s required contribution based on the employee’s gross
  824  monthly compensation.
  825         d. The employer shall contribute an additional amount to
  826  the Florida Retirement System Trust Fund equal to the unfunded
  827  actuarial accrued liability portion of the Regular Class
  828  contribution rate.
  829         2. The decision to participate in the an optional
  830  retirement program is irrevocable as long as the employee holds
  831  a position eligible for participation, except as provided in
  832  subparagraph 3. Any service creditable under the Florida
  833  Retirement System is retained after the member withdraws from
  834  the system; however, additional service credit in the system may
  835  not be earned while a member of the optional retirement program.
  836         3. An employee who has elected to participate in the
  837  optional retirement program shall have one opportunity, at the
  838  employee’s discretion, to transfer from the optional retirement
  839  program to the pension plan defined benefit program of the
  840  Florida Retirement System or to the investment plan established
  841  under part II of this chapter Public Employee Optional
  842  Retirement Program, subject to the terms of the applicable
  843  optional retirement program contracts.
  844         a. If the employee chooses to move to the investment plan
  845  Public Employee Optional Retirement Program, any contributions,
  846  interest, and earnings creditable to the employee under the
  847  State Community College System optional retirement program are
  848  retained by the employee in the State Community College System
  849  optional retirement program, and the applicable provisions of s.
  850  121.4501(4) govern the election.
  851         b. If the employee chooses to move to the pension plan
  852  defined benefit program of the Florida Retirement System, the
  853  employee shall receive service credit equal to his or her years
  854  of service under the State Community College System optional
  855  retirement program.
  856         (I) The cost for such credit is the amount representing the
  857  present value of the employee’s accumulated benefit obligation
  858  for the affected period of service. The cost shall be calculated
  859  as if the benefit commencement occurs on the first date the
  860  employee becomes eligible for unreduced benefits, using the
  861  discount rate and other relevant actuarial assumptions that were
  862  used to value the Florida Retirement System Pension defined
  863  benefit Plan liabilities in the most recent actuarial valuation.
  864  The calculation must include any service already maintained
  865  under the pension defined benefit plan in addition to the years
  866  under the State Community College System optional retirement
  867  program. The present value of any service already maintained
  868  must be applied as a credit to total cost resulting from the
  869  calculation. The division shall ensure that the transfer sum is
  870  prepared using a formula and methodology certified by an
  871  enrolled actuary.
  872         (II) The employee must transfer from his or her State
  873  Community College System optional retirement program account and
  874  from other employee moneys as necessary, a sum representing the
  875  present value of the employee’s accumulated benefit obligation
  876  immediately following the time of such movement, determined
  877  assuming that attained service equals the sum of service in the
  878  pension plan defined benefit program and service in the State
  879  Community College System optional retirement program.
  880         4. Participation in the optional retirement program is
  881  limited to employees who satisfy the following eligibility
  882  criteria:
  883         a. The employee is must be otherwise eligible for
  884  membership or renewed membership in the Regular Class of the
  885  Florida Retirement System, as provided in s. 121.021(11) and
  886  (12) or s. 121.122.
  887         b. The employee is must be employed in a full-time position
  888  classified in the Accounting Manual for Florida’s Public
  889  Community Colleges as:
  890         (I) Instructional; or
  891         (II) Executive Management, Instructional Management, or
  892  Institutional Management and the, if a community college
  893  determines that recruiting to fill a vacancy in the position is
  894  to be conducted in the national or regional market, and the
  895  duties and responsibilities of the position include the
  896  formulation, interpretation, or implementation of policies, or
  897  the performance of functions that are unique or specialized
  898  within higher education and that frequently support the mission
  899  of the community college.
  900         c. The employee is must be employed in a position not
  901  included in the Senior Management Service Class of the Florida
  902  Retirement System, as described in s. 121.055.
  903         5. Members of Participants in the program are subject to
  904  the same reemployment limitations, renewed membership
  905  provisions, and forfeiture provisions as are applicable to
  906  regular members of the Florida Retirement System under ss.
  907  121.091(9), 121.122, and 121.091(5), respectively. A member
  908  participant who receives a program distribution funded by
  909  employer and required employee contributions is shall be deemed
  910  to be retired from a state-administered retirement system if the
  911  member participant is subsequently employed with an employer
  912  that participates in the Florida Retirement System.
  913         6. Eligible community college employees are compulsory
  914  members of the Florida Retirement System until, pursuant to s.
  915  1012.875, a written election to withdraw from the system and
  916  participate in the State Community College System optional
  917  retirement program is filed with the program administrator and
  918  received by the division.
  919         a. A community college employee whose program eligibility
  920  results from initial employment shall must be enrolled in the
  921  State Community College System optional retirement program
  922  retroactive to the first day of eligible employment. The
  923  employer and employee retirement contributions paid through the
  924  month of the employee plan change shall be transferred to the
  925  community college to the employee’s optional program account,
  926  and, effective the first day of the next month, the employer
  927  shall pay the applicable contributions based upon subparagraph
  928  1.
  929         b. A community college employee whose program eligibility
  930  is due to the subsequent designation of the employee’s position
  931  as one of those specified in subparagraph 4., or due to the
  932  employee’s appointment, promotion, transfer, or reclassification
  933  to a position specified in subparagraph 4., must be enrolled in
  934  the program on the first day of the first full calendar month
  935  that such change in status becomes effective. The employer and
  936  employee retirement contributions paid from the effective date
  937  through the month of the employee plan change must be
  938  transferred to the community college to the employee’s optional
  939  program account, and, effective the first day of the next month,
  940  the employer shall pay the applicable contributions based upon
  941  subparagraph 1.
  942         7. Effective July 1, 2003, through December 31, 2008, any
  943  member participant of the State Community College System
  944  optional retirement program who has service credit in the
  945  pension defined benefit plan of the Florida Retirement System
  946  for the period between his or her first eligibility to transfer
  947  from the pension defined benefit plan to the optional retirement
  948  program and the actual date of transfer may, during employment,
  949  transfer to the optional retirement program a sum representing
  950  the present value of the accumulated benefit obligation under
  951  the defined benefit retirement program for the period of service
  952  credit. Upon transfer, all service credit previously earned
  953  under the pension plan defined benefit program of the Florida
  954  Retirement System during this period is nullified for purposes
  955  of entitlement to a future benefit under the pension plan
  956  defined benefit program of the Florida Retirement System.
  957         (3) SOCIAL SECURITY COVERAGE.—Social security coverage
  958  shall be provided for all officers and employees who become
  959  members under the provisions of subsection (1) or subsection
  960  (2). Any modification of the present agreement with the Social
  961  Security Administration, or referendum required under the Social
  962  Security Act, for the purpose of providing social security
  963  coverage for any member shall be requested by the state agency
  964  in compliance with the applicable provisions of the Social
  965  Security Act governing such coverage. However, retroactive
  966  social security coverage for service before prior to December 1,
  967  1970, with the employer may shall not be provided for a any
  968  member who was not covered under the agreement as of November
  969  30, 1970. The employer-paid employee contributions specified in
  970  s. 121.71(3) are subject to taxes imposed under the Federal
  971  Insurance Contributions Act, 26 U.S.C. ss. 3101-3128.
  972         Section 8. Section 121.0515, Florida Statutes, is amended
  973  to read:
  974         121.0515 Special Risk Class membership.—
  975         (1) ESTABLISHMENT OF CLASS LEGISLATIVE INTENT.—A separate
  976  In creating the Special Risk class of membership within the
  977  Florida Retirement System, to be known as the “Special Risk
  978  Class,” is established it is the intent and purpose of the
  979  Legislature to recognize that persons employed in certain
  980  categories of law enforcement, firefighting, criminal detention,
  981  and emergency medical care positions are required as one of the
  982  essential functions of their positions to perform work that is
  983  physically demanding or arduous, or work that requires
  984  extraordinary agility and mental acuity, and that such persons,
  985  because of diminishing physical and mental faculties, may find
  986  that they are not able, without risk to the health and safety of
  987  themselves, the public, or their coworkers, to continue
  988  performing such duties and thus enjoy the full career and
  989  retirement benefits enjoyed by persons employed in other
  990  membership classes positions and that, if they find it
  991  necessary, due to the physical and mental limitations of their
  992  age, to retire at an earlier age and usually with less service,
  993  they will suffer an economic deprivation therefrom. To address
  994  Therefore, as a means of recognizing the peculiar and special
  995  problems of this class of employees, it is the intent and
  996  purpose of the Legislature to establish a class of retirement
  997  membership is established that awards more retirement credit per
  998  year of service than that awarded to other employees; however,
  999  nothing contained herein shall require ineligibility for Special
 1000  Risk Class membership upon reaching age 55.
 1001         (2) MEMBERSHIP.—
 1002         (a) Until October 1, 1978, “special risk member” means any
 1003  officer or employee whose application is approved by the
 1004  administrator and who receives salary payments for work
 1005  performed as a peace officer; law enforcement officer; police
 1006  officer; highway patrol officer; custodial employee at a
 1007  correctional or detention facility; correctional agency employee
 1008  whose duties and responsibilities involve direct contact with
 1009  inmates, but excluding secretarial and clerical employees;
 1010  firefighter; or an employee in any other job in the field of law
 1011  enforcement or fire protection if the duties of such person are
 1012  certified as hazardous by his or her employer.
 1013         (b) Effective October 1, 1978, through September 30, 1999,
 1014  “special risk member” means a member of the Florida Retirement
 1015  System who is designated as a special risk member by the
 1016  division in accordance with this section. Such member must be
 1017  employed as a law enforcement officer, a firefighter, or a
 1018  correctional officer and must meet certain other special
 1019  criteria as set forth in this section.
 1020         (c) Effective October 1, 1999, “special risk member” means
 1021  a member of the Florida Retirement System who is designated as a
 1022  special risk member by the division in accordance with this
 1023  section. Such member must be employed as a law enforcement
 1024  officer, a firefighter, a correctional officer, an emergency
 1025  medical technician, or a paramedic and must meet certain other
 1026  special criteria as set forth in this section.
 1027         (d) Effective January 1, 2001, “special risk member”
 1028  includes:
 1029         1. Any member who is employed as a community-based
 1030  correctional probation officer and meets the special criteria
 1031  set forth in paragraph (3)(e).
 1032         2. Any professional health care bargaining unit or non-unit
 1033  member who is employed by the Department of Corrections or the
 1034  Department of Children and Family Services and meets the special
 1035  criteria set forth in paragraph (3)(f).
 1036         (e) Effective July 1, 2001, “special risk member” includes
 1037  any member who is employed as a youth custody officer by the
 1038  Department of Juvenile Justice and meets the special criteria
 1039  set forth in paragraph (3)(g).
 1040         (f) Effective October 1, 2005, through June 30, 2008, the
 1041  member must be employed by a law enforcement agency or medical
 1042  examiner’s office in a forensic discipline and meet the special
 1043  criteria set forth in paragraph (3)(h).
 1044         (g) Effective July 1, 2008, the member must be employed by
 1045  the Department of Law Enforcement in the crime laboratory or by
 1046  the Division of State Fire Marshal in the forensic laboratory
 1047  and meet the special criteria set forth in paragraph (3)(i).
 1048         (h) Effective July 1, 2008, the member must be employed by
 1049  a local government law enforcement agency or medical examiner’s
 1050  office and meet the special criteria set forth in paragraph
 1051  (3)(j).
 1052         (i) Effective August 1, 2008, “special risk member”
 1053  includes any member who meets the special criteria for continued
 1054  membership set forth in paragraph (3)(k).
 1055         (3)(2) CRITERIA.—A member, to be designated as a special
 1056  risk member, must meet the following criteria:
 1057         (a) Effective October 1, 1978, the member must be employed
 1058  as a law enforcement officer and be certified, or required to be
 1059  certified, in compliance with s. 943.1395; however, sheriffs and
 1060  elected police chiefs are shall be excluded from meeting the
 1061  certification requirements of this paragraph. In addition, the
 1062  member’s duties and responsibilities must include the pursuit,
 1063  apprehension, and arrest of law violators or suspected law
 1064  violators; or as of July 1, 1982, the member must be an active
 1065  member of a bomb disposal unit whose primary responsibility is
 1066  the location, handling, and disposal of explosive devices; or
 1067  the member must be the supervisor or command officer of a member
 1068  or members who have such responsibilities.; provided, however,
 1069  Administrative support personnel, including, but not limited to,
 1070  those whose primary duties and responsibilities are in
 1071  accounting, purchasing, legal, and personnel, are shall not be
 1072  included;
 1073         (b) Effective October 1, 1978, the member must be employed
 1074  as a firefighter and be certified, or required to be certified,
 1075  in compliance with s. 633.35 and be employed solely within the
 1076  fire department of a local government employer or an agency of
 1077  state government with firefighting responsibilities. In
 1078  addition, the member’s duties and responsibilities must include
 1079  on-the-scene fighting of fires; as of October 1, 2001, fire
 1080  prevention, or firefighter training; as of October 1, 2001,
 1081  direct supervision of firefighting units, fire prevention, or
 1082  firefighter training; or as of July 1, 2001, aerial firefighting
 1083  surveillance performed by fixed-wing aircraft pilots employed by
 1084  the Division of Forestry of the Department of Agriculture and
 1085  Consumer Services; or the member must be the supervisor or
 1086  command officer of a member or members who have such
 1087  responsibilities.; provided, however, Administrative support
 1088  personnel, including, but not limited to, those whose primary
 1089  duties and responsibilities are in accounting, purchasing,
 1090  legal, and personnel, are shall not be included. and further
 1091  provided that All periods of creditable service in fire
 1092  prevention or firefighter training, or as the supervisor or
 1093  command officer of a member or members who have such
 1094  responsibilities, and for which the employer paid the special
 1095  risk contribution rate, are shall be included;
 1096         (c) Effective October 1, 1978, the member must be employed
 1097  as a correctional officer and be certified, or required to be
 1098  certified, in compliance with s. 943.1395. In addition, the
 1099  member’s primary duties and responsibilities must be the
 1100  custody, and physical restraint when necessary, of prisoners or
 1101  inmates within a prison, jail, or other criminal detention
 1102  facility, or while on work detail outside the facility, or while
 1103  being transported; or as of July 1, 1984, the member must be the
 1104  supervisor or command officer of a member or members who have
 1105  such responsibilities.; provided, however, Administrative
 1106  support personnel, including, but not limited to, those whose
 1107  primary duties and responsibilities are in accounting,
 1108  purchasing, legal, and personnel, are shall not be included;
 1109  however, wardens and assistant wardens, as defined by rule, are
 1110  included shall participate in the Special Risk Class;
 1111         (d) Effective October 1, 1999, the member must be employed
 1112  by a licensed Advance Life Support (ALS) or Basic Life Support
 1113  (BLS) employer as an emergency medical technician or a paramedic
 1114  and be certified in compliance with s. 401.27. In addition, the
 1115  member’s primary duties and responsibilities must include on
 1116  the-scene emergency medical care or as of October 1, 2001,
 1117  direct supervision of emergency medical technicians or
 1118  paramedics, or the member must be the supervisor or command
 1119  officer of one or more members who have such responsibility.
 1120  However, Administrative support personnel, including, but not
 1121  limited to, those whose primary responsibilities are in
 1122  accounting, purchasing, legal, and personnel, are shall not be
 1123  included;
 1124         (e) Effective January 1, 2001, the member must be employed
 1125  as a community-based correctional probation officer and be
 1126  certified, or required to be certified, in compliance with s.
 1127  943.1395. In addition, the member’s primary duties and
 1128  responsibilities must be the supervised custody, surveillance,
 1129  control, investigation, and counseling of assigned inmates,
 1130  probationers, parolees, or community controllees within the
 1131  community; or the member must be the supervisor of a member or
 1132  members who have such responsibilities. Administrative support
 1133  personnel, including, but not limited to, those whose primary
 1134  duties and responsibilities are in accounting, purchasing, legal
 1135  services, and personnel management, are shall not be included;
 1136  however, probation and parole circuit and deputy circuit
 1137  administrators are included shall participate in the Special
 1138  Risk Class;
 1139         (f) Effective January 1, 2001, the member must be employed
 1140  in one of the following classes and must spend at least 75
 1141  percent of his or her time performing duties which involve
 1142  contact with patients or inmates in a correctional or forensic
 1143  facility or institution:
 1144         1. Dietitian (class codes 5203 and 5204);
 1145         2. Public health nutrition consultant (class code 5224);
 1146         3. Psychological specialist (class codes 5230 and 5231);
 1147         4. Psychologist (class code 5234);
 1148         5. Senior psychologist (class codes 5237 and 5238);
 1149         6. Regional mental health consultant (class code 5240);
 1150         7. Psychological Services Director—DCF (class code 5242);
 1151         8. Pharmacist (class codes 5245 and 5246);
 1152         9. Senior pharmacist (class codes 5248 and 5249);
 1153         10. Dentist (class code 5266);
 1154         11. Senior dentist (class code 5269);
 1155         12. Registered nurse (class codes 5290 and 5291);
 1156         13. Senior registered nurse (class codes 5292 and 5293);
 1157         14. Registered nurse specialist (class codes 5294 and
 1158  5295);
 1159         15. Clinical associate (class codes 5298 and 5299);
 1160         16. Advanced registered nurse practitioner (class codes
 1161  5297 and 5300);
 1162         17. Advanced registered nurse practitioner specialist
 1163  (class codes 5304 and 5305);
 1164         18. Registered nurse supervisor (class codes 5306 and
 1165  5307);
 1166         19. Senior registered nurse supervisor (class codes 5308
 1167  and 5309);
 1168         20. Registered nursing consultant (class codes 5312 and
 1169  5313);
 1170         21. Quality management program supervisor (class code
 1171  5314);
 1172         22. Executive nursing director (class codes 5320 and 5321);
 1173         23. Speech and hearing therapist (class code 5406); or
 1174         24. Pharmacy manager (class code 5251);
 1175         (g) Effective July 1, 2001, the member must be employed as
 1176  a youth custody officer and be certified, or required to be
 1177  certified, in compliance with s. 943.1395. In addition, the
 1178  member’s primary duties and responsibilities must be the
 1179  supervised custody, surveillance, control, investigation,
 1180  apprehension, arrest, and counseling of assigned juveniles
 1181  within the community;
 1182         (h) Effective October 1, 2005, through June 30, 2008, the
 1183  member must be employed by a law enforcement agency or medical
 1184  examiner’s office in a forensic discipline recognized by the
 1185  International Association for Identification and must qualify
 1186  for active membership in the International Association for
 1187  Identification. The member’s primary duties and responsibilities
 1188  must include the collection, examination, preservation,
 1189  documentation, preparation, or analysis of physical evidence or
 1190  testimony, or both, or the member must be the direct supervisor,
 1191  quality management supervisor, or command officer of one or more
 1192  individuals with such responsibility. Administrative support
 1193  personnel, including, but not limited to, those whose primary
 1194  responsibilities are clerical or in accounting, purchasing,
 1195  legal, and personnel, are shall not be included;
 1196         (i) Effective July 1, 2008, the member must be employed by
 1197  the Department of Law Enforcement in the crime laboratory or by
 1198  the Division of State Fire Marshal in the forensic laboratory in
 1199  one of the following classes:
 1200         1. Forensic technologist (class code 8459);
 1201         2. Crime laboratory technician (class code 8461);
 1202         3. Crime laboratory analyst (class code 8463);
 1203         4. Senior crime laboratory analyst (class code 8464);
 1204         5. Crime laboratory analyst supervisor (class code 8466);
 1205         6. Forensic chief (class code 9602); or
 1206         7. Forensic services quality manager (class code 9603);
 1207         (j) Effective July 1, 2008, the member must be employed by
 1208  a local government law enforcement agency or medical examiner’s
 1209  office and must spend at least 65 percent of his or her time
 1210  performing duties that involve the collection, examination,
 1211  preservation, documentation, preparation, or analysis of human
 1212  tissues or fluids or physical evidence having potential
 1213  biological, chemical, or radiological hazard or contamination,
 1214  or use chemicals, processes, or materials that may have
 1215  carcinogenic or health-damaging properties in the analysis of
 1216  such evidence, or the member must be the direct supervisor of
 1217  one or more individuals having such responsibility. If a special
 1218  risk member changes to another position within the same agency,
 1219  he or she must submit a complete application as provided in
 1220  paragraph (4)(3)(a); or
 1221         (k) The member must have already qualified for and be
 1222  actively participating in special risk membership under
 1223  paragraph (a), paragraph (b), or paragraph (c), must have
 1224  suffered a qualifying injury as defined in this paragraph, must
 1225  not be receiving disability retirement benefits as provided in
 1226  s. 121.091(4), and must satisfy the requirements of this
 1227  paragraph.
 1228         1. The ability to qualify for the class of membership
 1229  defined in paragraph (2)(f) occurs s. 121.021(15)(f) shall occur
 1230  when two licensed medical physicians, one of whom is a primary
 1231  treating physician of the member, certify the existence of the
 1232  physical injury and medical condition that constitute a
 1233  qualifying injury as defined in this paragraph and that the
 1234  member has reached maximum medical improvement after August 1,
 1235  2008. The certifications from the licensed medical physicians
 1236  must include, at a minimum, that the injury to the special risk
 1237  member has resulted in a physical loss, or loss of use, of at
 1238  least two of the following: left arm, right arm, left leg, or
 1239  right leg; and:
 1240         a. That this physical loss or loss of use is total and
 1241  permanent, except in the event that the loss of use is due to a
 1242  physical injury to the member’s brain, in which event the loss
 1243  of use is permanent with at least 75-percent loss of motor
 1244  function with respect to each arm or leg affected.
 1245         b. That this physical loss or loss of use renders the
 1246  member physically unable to perform the essential job functions
 1247  of his or her special risk position.
 1248         c. That, notwithstanding this physical loss or loss of use,
 1249  the individual is able to perform the essential job functions
 1250  required by the member’s new position, as provided in
 1251  subparagraph 3.
 1252         d. That use of artificial limbs is either not possible or
 1253  does not alter the member’s ability to perform the essential job
 1254  functions of the member’s position.
 1255         e. That the physical loss or loss of use is a direct result
 1256  of a physical injury and not a result of any mental,
 1257  psychological, or emotional injury.
 1258         2. For the purposes of this paragraph, “qualifying injury”
 1259  means an injury sustained in the line of duty, as certified by
 1260  the member’s employing agency, by a special risk member that
 1261  does not result in total and permanent disability as defined in
 1262  s. 121.091(4)(b). An injury is a qualifying injury if when the
 1263  injury is a physical injury to the member’s physical body
 1264  resulting in a physical loss, or loss of use, of at least two of
 1265  the following: left arm, right arm, left leg, or right leg.
 1266  Notwithstanding any other provision of anything in this section
 1267  to the contrary, an injury that would otherwise qualify as a
 1268  qualifying injury is shall not be considered a qualifying injury
 1269  if and when the member ceases employment with the employer for
 1270  whom he or she was providing special risk services on the date
 1271  the injury occurred.
 1272         3. The new position, as described in sub-subparagraph 1.c.,
 1273  that is required for qualification as a special risk member
 1274  under this paragraph is not required to be a position with
 1275  essential job functions that entitle an individual to special
 1276  risk membership. Whether a new position as described in sub
 1277  subparagraph 1.c. exists and is available to the special risk
 1278  member is a decision to be made solely by the employer in
 1279  accordance with its hiring practices and applicable law.
 1280         4. This paragraph does not grant or create additional
 1281  rights for any individual to continued employment or to be hired
 1282  or rehired by his or her employer that are not already provided
 1283  within the Florida Statutes, the State Constitution, the
 1284  Americans with Disabilities Act, if applicable, or any other
 1285  applicable state or federal law.
 1286         (4)(3) PROCEDURE FOR DESIGNATING.—
 1287         (a) Any member of the Florida Retirement System employed by
 1288  a county, municipality city, or special district who feels that
 1289  his or her position he or she meets the criteria set forth in
 1290  this section for membership in the Special Risk Class may
 1291  request that his or her employer submit an application to the
 1292  department requesting that the department designate him or her
 1293  as a Special Risk member. If the employer agrees that the member
 1294  meets the requirements for Special Risk Class membership, the
 1295  employer shall submit an application to the department on in
 1296  behalf of the employee containing a certification that the
 1297  member meets the criteria for Special Risk Class membership set
 1298  forth in this section and such other supporting documentation as
 1299  may be required by administrative rule. The department shall,
 1300  within 90 days, either designate or refuse to designate the
 1301  member as a special risk member. If the employer declines to
 1302  submit the member’s application to the department or if the
 1303  department does not designate the member as a special risk
 1304  member, the member or the employer may appeal to the State
 1305  Retirement Commission, as provided in s. 121.23, for designation
 1306  as a special risk member. A member who receives a final
 1307  affirmative ruling pursuant to such appeal for Special Risk
 1308  membership shall have Special Risk Class membership retroactive
 1309  to the date such member would have had Special Risk Class
 1310  membership had such membership been approved by the employer and
 1311  the department, as determined by the department, and the
 1312  employer contributions shall be paid in full within 1 year after
 1313  such final ruling.
 1314         (b)1. Applying the criteria set forth in this section, the
 1315  department of Management Services shall specify which current
 1316  and newly created classes of positions under the uniform
 1317  classification plan established pursuant to chapter 110 entitle
 1318  the incumbents of positions in those classes to membership in
 1319  the Special Risk Class. Only employees employed in the classes
 1320  so specified shall be special risk members.
 1321         2.If When a class is not specified by the department as
 1322  provided in subparagraph 1., the employing agency may petition
 1323  the State Retirement Commission for approval in accordance with
 1324  s. 121.23.
 1325         (5)(4) REMOVAL OF SPECIAL RISK CLASS MEMBERSHIP.—
 1326         (a) Any member who is a special risk member on October 1,
 1327  1978, and who fails to meet the criteria for Special Risk Class
 1328  membership established by this section shall have his or her
 1329  special risk designation removed and thereafter shall be a
 1330  regular member and shall earn only regular membership credit.
 1331  The department may shall have the authority to review the
 1332  special risk designation of members to determine whether or not
 1333  those members continue to meet the criteria for Special Risk
 1334  Class membership.
 1335         (b) Any member who is a special risk member on July 1,
 1336  2008, and who became eligible to participate under paragraph
 1337  (3)(2)(h) but fails to meet the criteria for Special Risk Class
 1338  membership established by paragraph (3)(2)(i) or paragraph
 1339  (3)(2)(j) shall have his or her special risk designation removed
 1340  and thereafter shall be a Regular Class member and earn only
 1341  Regular Class membership credit. The department may review the
 1342  special risk designation of members to determine whether or not
 1343  those members continue to meet the criteria for Special Risk
 1344  Class membership.
 1345         (6)(5) CREDIT FOR PAST SERVICE.—A special risk member may
 1346  purchase retirement credit in the Special Risk Class based upon
 1347  past service, and may upgrade retirement credit for such past
 1348  service, to the extent of 2 percent of the member’s average
 1349  monthly compensation as specified in s. 121.091(1)(a) for such
 1350  service as follows:
 1351         (a) The member may purchase special risk credit for past
 1352  service with a municipality city or special district which has
 1353  elected to join the Florida Retirement System, or with a
 1354  participating agency to which a member’s governmental unit was
 1355  transferred, merged, or consolidated as provided in s.
 1356  121.081(1)(f), if the member was employed with the municipality
 1357  city or special district at the time it commenced participating
 1358  in the Florida Retirement System or with the governmental unit
 1359  at the time of its transfer, merger, or consolidation with the
 1360  participating agency. The service must satisfy the criteria set
 1361  forth in subsection (3) (2) for Special Risk Class membership as
 1362  a law enforcement officer, firefighter, or correctional officer;
 1363  however, a no certificate or waiver of certificate of compliance
 1364  with s. 943.1395 or s. 633.35 is not shall be required for such
 1365  service.
 1366         (b) Contributions for upgrading the additional special risk
 1367  credit must pursuant to this subsection shall be equal to the
 1368  difference in the employer and, if applicable, employee
 1369  contributions paid and the special risk percentage rate of gross
 1370  salary in effect at the time of purchase for the period being
 1371  claimed, plus interest thereon at the rate of 4 percent a year
 1372  compounded annually from the date of such service until July 1,
 1373  1975, and 6.5 percent a year thereafter until the date of
 1374  payment. This past service may be purchased by the member or by
 1375  the employer on behalf of the member.
 1376         (7)(6) CREDIT FOR PRIOR SERVICE.—A special risk member who
 1377  has creditable service with an employer under chapter 122 or
 1378  chapter 321, or was employed as a correctional counselor with
 1379  the Department of Corrections between December 1, 1970, and
 1380  September 30, 1979, in a position that which satisfies the
 1381  criteria provided for in subsection (3) (2) for Special Risk
 1382  Class membership except the requirement for a certificate or
 1383  waiver of certificate, shall have those years of service counted
 1384  towards the attainment of the normal retirement date as a
 1385  special risk member under this chapter. The percentage value of
 1386  each such year of creditable service under chapter 122, chapter
 1387  321, or as a correctional counselor may shall not change as a
 1388  result of the application of this subsection. A special risk
 1389  member who has taken a refund of contributions for such
 1390  creditable service under chapter 122 or chapter 321 and has
 1391  reclaimed it as prior service credit under this chapter shall be
 1392  permitted to have such creditable service counted towards the
 1393  attainment of the normal retirement date for the Special Risk
 1394  Class of membership under this chapter.
 1395         (8)(7)SPECIAL RISK ADMINISTRATIVE SUPPORT CLASS RETENTION
 1396  OF SPECIAL RISK NORMAL RETIREMENT DATE.—
 1397         (a) A special risk member who is moved or reassigned to a
 1398  nonspecial risk law enforcement, firefighting, correctional, or
 1399  emergency medical care administrative support position with the
 1400  same agency, or who is subsequently employed in such a position
 1401  within with any law enforcement, firefighting, correctional, or
 1402  emergency medical care agency under the Florida Retirement
 1403  System, shall participate in the Special Risk Administrative
 1404  Support Class and shall earn credit for such service at the same
 1405  percentage rate as that earned by a regular member.
 1406  Notwithstanding the provisions of subsection (5) (4), service in
 1407  such an administrative support position shall, for purposes of
 1408  s. 121.091, applies apply toward satisfaction of the special
 1409  risk normal retirement date, as defined in s. 121.021(29)(b) if,
 1410  provided that, while in such position, the member remains
 1411  certified as a law enforcement officer, firefighter,
 1412  correctional officer, emergency medical technician, or
 1413  paramedic; remains subject to reassignment at any time to a
 1414  position qualifying for special risk membership; and completes
 1415  an aggregate of the 6 or more years of service as a designated
 1416  special risk member before prior to retirement which is equal to
 1417  or greater than the years of service required to be vested.
 1418         (b) Upon application by a member, the provisions of this
 1419  subsection shall apply, with respect to such member,
 1420  retroactively to October 1, 1978, if provided that the member
 1421  was removed from the Special Risk Class effective October 1,
 1422  1978, due to a change in special risk criteria as a result of
 1423  the enactment of chapter 78-308, Laws of Florida, or was
 1424  reassigned or employed for training or career development or to
 1425  fill a critical agency need.
 1426         (c) The department shall adopt such rules as are required
 1427  to administer this subsection.
 1428         (d) Notwithstanding any other provision of this subsection
 1429  to the contrary, this subsection does not apply to any special
 1430  risk member who qualifies for continued membership pursuant to
 1431  the provisions of paragraph (3)(2)(k).
 1432         (9)(8) RESTORATION OF SPECIAL RISK CREDIT FOR SPECIFIED
 1433  PERIOD OF EMPLOYMENT.—A special risk member who was removed from
 1434  the Special Risk Class effective October 1978, for the sole
 1435  reason that he or she did not possess the required certificate
 1436  or temporary waiver of certificate, and who obtained
 1437  certification and was approved for Special Risk Class membership
 1438  on or before June 30, 1982, may shall be permitted to have
 1439  special risk credit restored for that period upon:
 1440         (a) Certification by his or her employer that all
 1441  requirements for Special Risk Class membership except the
 1442  requirement for certification or temporary waiver of
 1443  certification were met; and
 1444         (b) Payment of contributions equal to the difference in the
 1445  contributions that were paid during the period and the
 1446  contributions required for special risk members during that
 1447  period, plus 6.5 percent interest thereon, compounded each June
 1448  30 from date of service until date of payment.
 1449  
 1450  This credit may be purchased by the member or by the employer on
 1451  behalf of the member.
 1452         (10)(9) CREDIT FOR UPGRADED SERVICE.—
 1453         (a) Any member of the Special Risk Class who has earned
 1454  creditable service through September 30, 1999, in another
 1455  membership class of the Florida Retirement System as an
 1456  emergency medical technician or paramedic, which service is
 1457  within the purview of the Special Risk Class, may purchase
 1458  additional retirement credit to upgrade such service to Special
 1459  Risk Class service, to the extent of the percentages of the
 1460  member’s average final compensation provided in s.
 1461  121.091(1)(a)2. Contributions for upgrading such service to
 1462  Special Risk Class credit must under this subsection shall be
 1463  equal to the difference in the contributions paid and the
 1464  Special Risk Class contribution rate as a percentage of gross
 1465  salary in effect for the period being claimed, plus interest
 1466  thereon at the rate of 6.5 percent a year, compounded annually
 1467  until the date of payment. This service credit may be purchased
 1468  by the employer on behalf of the member.
 1469         (b) Any member of the Special Risk Class who has earned
 1470  creditable service through September 30, 2001, in another
 1471  membership class of the Florida Retirement System whose
 1472  responsibilities included fire prevention or firefighter
 1473  training, which service is within the purview of the Special
 1474  Risk Class, may purchase additional retirement credit to upgrade
 1475  such service to Special Risk Class service, to the extent of the
 1476  percentages of the member’s average final compensation provided
 1477  in s. 121.091(1)(a)2. Contributions for upgrading such service
 1478  to Special Risk Class credit must under this subsection shall be
 1479  equal to the difference in the contributions paid and the
 1480  Special Risk Class contribution rate as a percentage of gross
 1481  salary in effect for the period being claimed, plus interest
 1482  thereon at the rate of 6.5 percent a year, compounded annually
 1483  until the date of payment. This service credit may be purchased
 1484  by the employer on behalf of the member.
 1485         (c) Any member of the Special Risk Class who has earned
 1486  creditable service through June 30, 2008, in another membership
 1487  class of the Florida Retirement System in a position with the
 1488  Department of Law Enforcement or the Division of State Fire
 1489  Marshal and became covered by the Special Risk Class as
 1490  described in paragraph (3)(2)(i), or with a local government law
 1491  enforcement agency or medical examiner’s office and became
 1492  covered by the Special Risk Class as described in paragraph
 1493  (3)(2)(j), which service is within the purview of the Special
 1494  Risk Class, and is employed in such position on or after July 1,
 1495  2008, may purchase additional retirement credit to upgrade such
 1496  service to Special Risk Class service, to the extent of the
 1497  percentages of the member’s average final compensation provided
 1498  in s. 121.091(1)(a)2. The cost for such credit must shall be an
 1499  amount representing the actuarial accrued liability for the
 1500  difference in accrual value during the affected period of
 1501  service. The cost shall be calculated using the discount rate
 1502  and other relevant actuarial assumptions that were used to value
 1503  the Florida Retirement System Pension defined benefit Plan
 1504  liabilities in the most recent actuarial valuation. The division
 1505  shall ensure that the transfer sum is prepared using a formula
 1506  and methodology certified by an enrolled actuary. The cost must
 1507  be paid immediately upon notification by the division. The local
 1508  government employer may purchase the upgraded service credit on
 1509  behalf of the member if the member has been employed by that
 1510  employer for at least 3 years.
 1511         Section 9. Paragraphs (a) and (d) of subsection (4),
 1512  paragraph (b) of subsection (7), and subsections (8) and (10) of
 1513  section 121.052, Florida Statutes, are amended, present
 1514  paragraph (c) of subsection (7) of that section is redesignated
 1515  as paragraph (d), and a new paragraph (c) is added to that
 1516  subsection, to read:
 1517         121.052 Membership class of elected officers.—
 1518         (4) PARTICIPATION BY ELECTED OFFICERS SERVING A SHORTENED
 1519  TERM DUE TO APPORTIONMENT, FEDERAL INTERVENTION, ETC.—
 1520         (a) A Any duly elected officer whose term of office was
 1521  shortened by legislative or judicial apportionment pursuant to
 1522  the provisions of s. 16, Art. III of the State Constitution may,
 1523  after the term of office to which he or she was elected is
 1524  completed, pay into the Florida Retirement System Trust Fund the
 1525  amount of contributions that would have been made by the officer
 1526  or the officer’s employer on his or her behalf, plus 4 percent
 1527  interest compounded annually from the date he or she left office
 1528  until July 1, 1975, and 6.5 percent interest compounded annually
 1529  thereafter, and may receive service credit for the length of
 1530  time the officer would have served if such term had not been
 1531  shortened by apportionment.
 1532         (d)1. Any justice or judge, or any retired justice or judge
 1533  who retired before July 1, 1993, who has attained the age of 70
 1534  years and who is prevented under s. 8, Art. V of the State
 1535  Constitution from completing his or her term of office because
 1536  of age may elect to purchase credit for all or a portion of the
 1537  months he or she would have served during the remainder of the
 1538  term of office; however, but he or she may claim those months
 1539  only after the date the service would have occurred. The justice
 1540  or judge must pay into the Florida Retirement System Trust Fund
 1541  the amount of contributions that would have been made by the
 1542  employer on his or her behalf for the period of time being
 1543  claimed, plus 6.5 percent interest thereon compounded each June
 1544  30 from the date he or she left office, in order to receive
 1545  service credit in this class for the period of time being
 1546  claimed. After the date the service would have occurred, and
 1547  upon payment of the required contributions, the retirement
 1548  benefit of a retired justice or judge shall will be adjusted
 1549  prospectively to include the this additional creditable service;
 1550  however, such adjustment may be made only once.
 1551         2. Any justice or judge who does not seek election to a
 1552  subsequent term of office because he or she would be prevented
 1553  under s. 8, Art. V of the State Constitution from completing
 1554  such term of office upon attaining the age of 70 years may elect
 1555  to purchase service credit for service as a temporary judge as
 1556  assigned by the court if the temporary assignment follows
 1557  immediately follows the last full term of office served and the
 1558  purchase is limited to the number of months of service needed to
 1559  vest retirement benefits. To receive retirement credit for such
 1560  temporary service beyond termination, the justice or judge must
 1561  pay into the Florida Retirement System Trust Fund the amount of
 1562  contributions that would have been made by the justice or judge
 1563  and the employer on his or her behalf had he or she continued in
 1564  office for the period of time being claimed, plus 6.5 percent
 1565  interest thereon compounded each June 30 from the date he or she
 1566  left office.
 1567         (7) CONTRIBUTIONS.—
 1568         (b) The employer paying the salary of a member of the
 1569  Elected Officers’ Class shall contribute an amount as specified
 1570  in this subsection or s. 121.71, as appropriate, which shall
 1571  constitute the entire employer retirement contribution with
 1572  respect to such member. The employer shall also withhold one
 1573  half of the entire contribution of the member required for
 1574  social security coverage. Effective July 1, 2011, each member of
 1575  the Elected Officers’ Class shall pay employee contributions as
 1576  specified in s. 121.71.
 1577         (c) If a member of the Elected Officers’ Class ceases to
 1578  fill an office covered by this class for 3 calendar months for
 1579  any reason other than retirement and has not been employed in
 1580  any capacity with any participating employer for 3 calendar
 1581  months, the member may receive a refund of all contributions he
 1582  or she has made to the pension plan, subject to the restrictions
 1583  otherwise provided in this chapter. Partial refunds are not
 1584  permitted. The refund shall not include any interest earnings on
 1585  the contributions for a member of the pension plan. Employer
 1586  contributions made on behalf of the member are not refundable. A
 1587  member may not receive a refund of employee contributions if a
 1588  pending or an approved qualified domestic relations order is
 1589  filed against the member’s retirement account. By obtaining a
 1590  refund of contributions, a member waives all rights under the
 1591  Florida Retirement System and the health insurance subsidy
 1592  provided under s. 112.363 to the service credit represented by
 1593  the refunded contributions, except the right to purchase his or
 1594  her prior service credit in accordance with s. 121.081(2).
 1595         (8) NORMAL RETIREMENT DATE; VESTING REQUIREMENT.—A member
 1596  of the Elected Officers’ Class shall have the same normal
 1597  retirement date and vesting requirement, as those terms are
 1598  defined in s. 121.021(29) and (45), for a member of the regular
 1599  class of the Florida Retirement System. Any public service
 1600  commissioner who was removed from the Elected State Officers’
 1601  Class on July 1, 1979, after attaining at least 8 years of
 1602  creditable service in that class is shall be considered to have
 1603  reached the normal retirement date upon attaining age 62 as
 1604  required in s. 121.021(29)(a).
 1605         (10) ACCRUED SERVICE VALUE.—A member of the Elected
 1606  Officers’ Class who is a Supreme Court justice, district court
 1607  of appeal judge, circuit judge, or county court judge shall
 1608  receive judicial retirement credit of 3 1/3 percent of average
 1609  final compensation, and all other members shall receive elected
 1610  officer accrual value retirement credit of 3 percent of average
 1611  final compensation, for each year of creditable service in such
 1612  class.
 1613         Section 10. Paragraph (a) of subsection (7) of section
 1614  121.053, Florida Statutes, is amended to read:
 1615         121.053 Participation in the Elected Officers’ Class for
 1616  retired members.—
 1617         (7) A member who is elected or appointed to an elective
 1618  office and who is participating in the Deferred Retirement
 1619  Option Program is not subject to termination as defined in s.
 1620  121.021, or reemployment limitations as provided in s.
 1621  121.091(9), until the end of his or her current term of office
 1622  or, if the officer is consecutively elected or reelected to an
 1623  elective office eligible for coverage under the Florida
 1624  Retirement System, until he or she no longer holds an elective
 1625  office, as follows:
 1626         (a) At the end of the 60-month DROP period:
 1627         1. The officer’s DROP account may not accrue additional
 1628  monthly benefits, but does continue to earn interest as provided
 1629  in s. 121.091(13). However, an officer whose DROP participation
 1630  begins on or after July 1, 2010, may not continue to earn such
 1631  interest.
 1632         2. Retirement contributions, except for unfunded actuarial
 1633  liability and health insurance subsidy contributions required in
 1634  ss. 121.71(5) and 121.76, are not required of the employer of
 1635  the elected officer and additional retirement credit may not be
 1636  earned under the Florida Retirement System.
 1637         Section 11. Paragraphs (b) and (j) of subsection (1),
 1638  paragraph (b) of subsection (3), paragraph (b) of subsection
 1639  (4), and paragraphs (c), (d), and (e) of subsection (6) of
 1640  section 121.055, Florida Statutes, are amended, present
 1641  paragraph (c) of subsection (3) of that section is redesignated
 1642  as paragraph (d), and a new paragraph (c) is added to that
 1643  subsection, to read:
 1644         121.055 Senior Management Service Class.—There is hereby
 1645  established a separate class of membership within the Florida
 1646  Retirement System to be known as the “Senior Management Service
 1647  Class,” which shall become effective February 1, 1987.
 1648         (1)
 1649         (b)1. Except as provided in subparagraph 2., effective
 1650  January 1, 1990, participation in the Senior Management Service
 1651  Class is shall be compulsory for the president of each community
 1652  college, the manager of each participating municipality city or
 1653  county, and all appointed district school superintendents.
 1654  Effective January 1, 1994, additional positions may be
 1655  designated for inclusion in the Senior Management Service Class
 1656  if of the Florida Retirement System, provided that:
 1657         a. Positions to be included in the class are shall be
 1658  designated by the local agency employer. Notice of intent to
 1659  designate positions for inclusion in the class must shall be
 1660  published once a week for 2 consecutive weeks in a newspaper of
 1661  general circulation published in the county or counties
 1662  affected, as provided in chapter 50.
 1663         b. Up to 10 nonelective full-time positions may be
 1664  designated for each local agency employer reporting to the
 1665  department of Management Services; for local agencies with 100
 1666  or more regularly established positions, additional nonelective
 1667  full-time positions may be designated, not to exceed 1 percent
 1668  of the regularly established positions within the agency.
 1669         c. Each position added to the class must be a managerial or
 1670  policymaking position filled by an employee who is not subject
 1671  to continuing contract and serves at the pleasure of the local
 1672  agency employer without civil service protection, and who:
 1673         (I) Heads an organizational unit; or
 1674         (II) Has responsibility to effect or recommend personnel,
 1675  budget, expenditure, or policy decisions in his or her areas of
 1676  responsibility.
 1677         2. In lieu of participation in the Senior Management
 1678  Service Class, members of the Senior Management Service Class,
 1679  pursuant to the provisions of subparagraph 1., may withdraw from
 1680  the Florida Retirement System altogether. The decision to
 1681  withdraw from the Florida Retirement system is shall be
 1682  irrevocable for as long as the employee holds the such a
 1683  position. Any service creditable under the Senior Management
 1684  Service Class shall be retained after the member withdraws from
 1685  the Florida Retirement system; however, additional service
 1686  credit in the Senior Management Service Class may shall not be
 1687  earned after such withdrawal. Such members are shall not be
 1688  eligible to participate in the Senior Management Service
 1689  Optional Annuity Program.
 1690         3. Effective January 1, 2006, through June 30, 2006, an
 1691  employee who has withdrawn from the Florida Retirement System
 1692  under subparagraph 2. has one opportunity to elect to
 1693  participate in either the pension plan defined benefit program
 1694  or the investment plan Public Employee Optional Retirement
 1695  Program of the Florida Retirement System.
 1696         a. If the employee elects to participate in the investment
 1697  plan Public Employee Optional Retirement Program, membership
 1698  shall be prospective, and the applicable provisions of s.
 1699  121.4501(4) shall govern the election.
 1700         b. If the employee elects to participate in the pension
 1701  plan defined benefit program of the Florida Retirement System,
 1702  the employee shall, upon payment to the system trust fund of the
 1703  amount calculated under sub-sub-subparagraph (I), receive
 1704  service credit for prior service based upon the time during
 1705  which the employee had withdrawn from the system.
 1706         (I) The cost for such credit shall be an amount
 1707  representing the actuarial accrued liability for the affected
 1708  period of service. The cost shall be calculated using the
 1709  discount rate and other relevant actuarial assumptions that were
 1710  used to value the pension Florida Retirement System defined
 1711  benefit plan liabilities in the most recent actuarial valuation.
 1712  The calculation must shall include any service already
 1713  maintained under the pension defined benefit plan in addition to
 1714  the period of withdrawal. The actuarial accrued liability
 1715  attributable to any service already maintained under the pension
 1716  defined benefit plan shall be applied as a credit to the total
 1717  cost resulting from the calculation. The division must shall
 1718  ensure that the transfer sum is prepared using a formula and
 1719  methodology certified by an actuary.
 1720         (II) The employee must transfer a sum representing the net
 1721  cost owed for the actuarial accrued liability in sub-sub
 1722  subparagraph (I) immediately following the time of such
 1723  movement, determined assuming that attained service equals the
 1724  sum of service in the pension plan defined benefit program and
 1725  the period of withdrawal.
 1726         (j) Except as may otherwise be provided, a any member of
 1727  the Senior Management Service Class may purchase additional
 1728  retirement credit in such class for creditable service within
 1729  the purview of the Senior Management Service Class retroactive
 1730  to February 1, 1987, and may upgrade retirement credit for such
 1731  service, to the extent of 2 percent of the member’s average
 1732  monthly compensation as specified in paragraph (4)(d) for such
 1733  service. Contributions for upgrading the additional Senior
 1734  Management Service credit must pursuant to this paragraph shall
 1735  be equal to the difference in the employer and, if applicable,
 1736  employee contributions paid and the Senior Management Service
 1737  Class contribution rate as a percentage of gross salary in
 1738  effect for the period being claimed, plus interest thereon at
 1739  the rate of 6.5 percent a year, compounded annually until the
 1740  date of payment. This service credit may be purchased by the
 1741  employer on behalf of the member.
 1742         (3)
 1743         (b) The employer paying the salary of a member of the
 1744  Senior Management Service Class shall contribute an amount as
 1745  specified in this section or s. 121.71, as appropriate, which
 1746  shall constitute the entire employer retirement contribution
 1747  with respect to such member. The employer shall also withhold
 1748  one-half of the entire contribution of the member required for
 1749  social security coverage. Effective July 1, 2011, each member
 1750  shall pay employee contributions as specified in s. 121.71.
 1751         (c) Upon termination of employment from all participating
 1752  employers for 3 calendar months for any reason other than
 1753  retirement pursuant to s. 121.021(39)(c), a member may receive a
 1754  refund of all contributions he or she has made to the pension
 1755  plan, subject to the restrictions otherwise provided in this
 1756  chapter. Partial refunds are not permitted. The refund shall not
 1757  include any interest earnings on the contributions for a member
 1758  of the pension plan. Employer contributions made on behalf of
 1759  the member are not refundable. A member may not receive a refund
 1760  of employee contributions if a pending or an approved qualified
 1761  domestic relations order is filed against the member’s
 1762  retirement account. By obtaining a refund of contributions, a
 1763  member waives all rights under the Florida Retirement System and
 1764  the health insurance subsidy provided under s. 112.363 to the
 1765  service credit represented by the refunded contributions, except
 1766  the right to purchase his or her prior service credit in
 1767  accordance with s. 121.081(2).
 1768         (4)
 1769         (b) Service in an eligible position before prior to
 1770  February 1, 1987, or after January 31, 1987, shall satisfy the
 1771  requirement of attaining the normal retirement date as defined
 1772  in s. 121.021(29) for a Senior Management Service Class member,
 1773  if provided the employee is a member of the Senior Management
 1774  Service Class after January 31, 1987. A member of this class who
 1775  fails to complete the 6 years of creditable service required for
 1776  vesting in an eligible position must shall be required to
 1777  satisfy the requirements for the normal retirement date for a
 1778  regular member as provided in s. 121.021(29) and vesting as
 1779  provided in s. 121.021(45).
 1780         (6)
 1781         (c) Participation.—
 1782         1. An eligible employee who is employed on or before
 1783  February 1, 1987, may elect to participate in the optional
 1784  annuity program in lieu of participating participation in the
 1785  Senior Management Service Class. Such election must be made in
 1786  writing and filed with the department and the personnel officer
 1787  of the employer on or before May 1, 1987. An eligible employee
 1788  who is employed on or before February 1, 1987, and who fails to
 1789  make an election to participate in the optional annuity program
 1790  by May 1, 1987, shall be deemed to have elected membership in
 1791  the Senior Management Service Class.
 1792         2. Except as provided in subparagraph 6., an employee who
 1793  becomes eligible to participate in the optional annuity program
 1794  by reason of initial employment commencing after February 1,
 1795  1987, may, within 90 days after the date of commencing
 1796  employment, elect to participate in the optional annuity
 1797  program. Such election must be made in writing and filed with
 1798  the personnel officer of the employer. An eligible employee who
 1799  does not within 90 days after commencing employment elect to
 1800  participate in the optional annuity program shall be deemed to
 1801  have elected membership in the Senior Management Service Class.
 1802         3. A person who is appointed to a position in the Senior
 1803  Management Service Class and who is a member of an existing
 1804  retirement system or the Special Risk or Special Risk
 1805  Administrative Support Classes of the Florida Retirement System
 1806  may elect to remain in such system or class in lieu of
 1807  participating participation in the Senior Management Service
 1808  Class or optional annuity program. Such election must be made in
 1809  writing and filed with the department and the personnel officer
 1810  of the employer within 90 days after of such appointment. An Any
 1811  eligible employee who fails to make an election to participate
 1812  in the existing system, the Special Risk Class of the Florida
 1813  Retirement System, the Special Risk Administrative Support Class
 1814  of the Florida Retirement System, or the optional annuity
 1815  program shall be deemed to have elected membership in the Senior
 1816  Management Service Class.
 1817         4. Except as provided in subparagraph 5., an employee’s
 1818  election to participate in the optional annuity program is
 1819  irrevocable if the employee continues to be employed in an
 1820  eligible position and continues to meet the eligibility
 1821  requirements set forth in this paragraph.
 1822         5. Effective from July 1, 2002, through September 30, 2002,
 1823  an any active employee in a regularly established position who
 1824  has elected to participate in the Senior Management Service
 1825  Optional Annuity Program has one opportunity to choose to move
 1826  from the Senior Management Service Optional Annuity Program to
 1827  the Florida Retirement System Pension Plan System defined
 1828  benefit program.
 1829         a. The election must be made in writing and must be filed
 1830  with the department and the personnel officer of the employer
 1831  before October 1, 2002, or, in the case of an active employee
 1832  who is on a leave of absence on July 1, 2002, within 90 days
 1833  after the conclusion of the leave of absence. This election is
 1834  irrevocable.
 1835         b. The employee shall receive service credit under the
 1836  pension plan defined benefit program of the Florida Retirement
 1837  System equal to his or her years of service under the Senior
 1838  Management Service Optional Annuity Program. The cost for such
 1839  credit is the amount representing the present value of that
 1840  employee’s accumulated benefit obligation for the affected
 1841  period of service.
 1842         c. The employee must transfer the total accumulated
 1843  employer contributions and earnings on deposit in his or her
 1844  Senior Management Service Optional Annuity Program account. If
 1845  the transferred amount is not sufficient to pay the amount due,
 1846  the employee must pay a sum representing the remainder of the
 1847  amount due. The employee may not retain any employer
 1848  contributions or earnings thereon from the Senior Management
 1849  Service Optional Annuity Program account.
 1850         6. A retiree of a state-administered retirement system who
 1851  is initially reemployed on or after July 1, 2010, may not renew
 1852  membership in the Senior Management Service Optional Annuity
 1853  Program.
 1854         (d) Contributions.—
 1855         1.a. Through June 30, 2001, each employer shall contribute
 1856  on behalf of each member of participant in the Senior Management
 1857  Service Optional Annuity Program an amount equal to the normal
 1858  cost portion of the employer retirement contribution which would
 1859  be required if the member participant were a Senior Management
 1860  Service Class member of the Florida Retirement System Pension
 1861  Plan defined benefit program, plus the portion of the
 1862  contribution rate required in s. 112.363(8) that would otherwise
 1863  be assigned to the Retiree Health Insurance Subsidy Trust Fund.
 1864         b. Effective July 1, 2001, through June 30, 2011, each
 1865  employer shall contribute on behalf of each member of
 1866  participant in the optional program an amount equal to 12.49
 1867  percent of the employee’s participant’s gross monthly
 1868  compensation.
 1869         c. Effective July 1, 2011, each member of the optional
 1870  annuity program shall contribute an amount equal to the employee
 1871  contribution required under s. 121.71(3). The employer shall
 1872  contribute on behalf of such employee an amount equal to the
 1873  difference between 12.49 percent of the employee’s gross monthly
 1874  compensation and the amount equal to the employee’s required
 1875  contribution based on the employee’s gross monthly compensation.
 1876         d. The department shall deduct an amount approved by the
 1877  Legislature to provide for the administration of this program.
 1878  The Payment of the contributions, including contributions made
 1879  by the employee, to the optional program which is required by
 1880  this subparagraph for each participant shall be made by the
 1881  employer to the department, which shall forward the
 1882  contributions to the designated company or companies contracting
 1883  for payment of benefits for the member participant under the
 1884  program.
 1885         2. Each employer shall contribute on behalf of each member
 1886  of participant in the Senior Management Service Optional Annuity
 1887  Program an amount equal to the unfunded actuarial accrued
 1888  liability portion of the employer contribution which would be
 1889  required for members of the Senior Management Service Class in
 1890  the Florida Retirement System. This contribution shall be paid
 1891  to the department for transfer to the Florida Retirement System
 1892  Trust Fund.
 1893         3. An Optional Annuity Program Trust Fund shall be
 1894  established in the State Treasury and administered by the
 1895  department to make payments to provider companies on behalf of
 1896  the optional annuity program members participants, and to
 1897  transfer the unfunded liability portion of the state optional
 1898  annuity program contributions to the Florida Retirement System
 1899  Trust Fund.
 1900         4. Contributions required for social security by each
 1901  employer and employee each participant, in the amount required
 1902  for social security coverage as now or hereafter may be provided
 1903  by the federal Social Security Act shall be maintained for each
 1904  member of participant in the Senior Management Service
 1905  retirement program and are shall be in addition to the
 1906  retirement contributions specified in this paragraph.
 1907         5. Each member of participant in the Senior Management
 1908  Service Optional Annuity Program may contribute by way of salary
 1909  reduction or deduction a percentage amount of the employee’s
 1910  participant’s gross compensation not to exceed the percentage
 1911  amount contributed by the employer to the optional annuity
 1912  program. Payment of the employee’s participant’s contributions
 1913  shall be made by the employer to the department, which shall
 1914  forward the contributions to the designated company or companies
 1915  contracting for payment of benefits for the member participant
 1916  under the program.
 1917         (e) Benefits.—
 1918         1. Benefits under the Senior Management Service Optional
 1919  Annuity Program are payable only to members of participants in
 1920  the program, or their beneficiaries as designated by the member
 1921  participant in the contract with the provider company, and must
 1922  be paid by the designated company in accordance with the terms
 1923  of the annuity contract applicable to the member participant. A
 1924  member participant must be terminated from all employment
 1925  relationships with Florida Retirement System employers for 3
 1926  calendar months as provided in s. 121.021(39) to begin receiving
 1927  the employer-funded and employee-funded benefit. The member must
 1928  meet the definition of termination in s. 121.021(39) beginning
 1929  the month after receiving a benefit, including a distribution.
 1930  Benefits funded by employer and employee contributions are
 1931  payable under the terms of the contract to the member
 1932  participant, his or her beneficiary, or his or her estate, in
 1933  addition to:
 1934         a. A lump-sum payment to the beneficiary upon the death of
 1935  the member participant;
 1936         b. A cash-out of a de minimis account upon the request of a
 1937  former member participant who has been terminated for a minimum
 1938  of 6 calendar months from the employment that entitled him or
 1939  her to optional annuity program participation. Such cash-out
 1940  must be a complete liquidation of the account balance with that
 1941  company and is subject to the Internal Revenue Code;
 1942         c. A mandatory distribution of a de minimis account of a
 1943  former member participant who has been terminated for a minimum
 1944  of 6 calendar months from the employment that entitled him or
 1945  her to optional annuity program participation as authorized by
 1946  the department; or
 1947         d. A lump-sum direct rollover distribution whereby all
 1948  accrued benefits, plus interest and investment earnings, are
 1949  paid from the member’s participant’s account directly to the
 1950  custodian of an eligible retirement plan, as defined in s.
 1951  402(c)(8)(B) of the Internal Revenue Code, on behalf of the
 1952  member participant.
 1953         2. Under the Senior Management Service Optional Annuity
 1954  Program, benefits, including employee contributions, are not
 1955  payable for employee hardships, unforeseeable emergencies,
 1956  loans, medical expenses, educational expenses, purchase of a
 1957  principal residence, payments necessary to prevent eviction or
 1958  foreclosure on an employee’s principal residence, or any other
 1959  reason before termination from all employment relationships with
 1960  participating employers for 3 calendar months.
 1961         3.2. The benefits payable to any person under the Senior
 1962  Management Service Optional Annuity Program, and any
 1963  contribution accumulated under such program, are not subject to
 1964  assignment, execution, or attachment or to any legal process
 1965  whatsoever.
 1966         4.3. Except as provided in subparagraph 5. 4., a member
 1967  participant who terminates employment and receives a
 1968  distribution, including a rollover or trustee-to-trustee
 1969  transfer, funded by employer and required employee contributions
 1970  is shall be deemed to be retired from a state-administered
 1971  retirement system if the member participant is subsequently
 1972  employed with an employer that participates in the Florida
 1973  Retirement System.
 1974         5.4. A member participant who receives optional annuity
 1975  program benefits funded by employer and employee contributions
 1976  as a mandatory distribution of a de minimis account authorized
 1977  by the department is not considered a retiree.
 1978  
 1979  As used in this paragraph, a “de minimis account” means an
 1980  account with a provider company containing employer and employee
 1981  contributions and accumulated earnings of not more than $5,000
 1982  made under this chapter.
 1983         Section 12. Subsection (2) of section 121.061, Florida
 1984  Statutes, is amended to read:
 1985         121.061 Funding.—
 1986         (2)(a) Should any employer other than a state employer fail
 1987  to make the retirement and social security contributions, both
 1988  member and employer contributions, required by this chapter,
 1989  then, upon request by the administrator, the Department of
 1990  Revenue or the Department of Financial Services, as the case may
 1991  be, shall deduct the amount owed by the employer from any funds
 1992  to be distributed by it to the county, municipality city,
 1993  metropolitan planning organization, special district, or
 1994  consolidated form of government. The amounts so deducted shall
 1995  be transferred to the administrator for further distribution to
 1996  the trust funds in accordance with this chapter.
 1997         (b) Should any employer for whom the municipality city or
 1998  county tax collector collects taxes, fail to make the retirement
 1999  and social security contributions required by this chapter, the
 2000  tax collector, at the request of the administrator and upon
 2001  receipt of a certificate from the administrator showing the
 2002  amount owed by the employer, shall deduct the amount so
 2003  certified from any taxes collected for the employer and remit
 2004  the amount to the administrator for further distribution to the
 2005  trust funds in accordance with this chapter.
 2006         (c) The governing body of each county, municipality city,
 2007  metropolitan planning organization, special district, or
 2008  consolidated form of government participating under this chapter
 2009  or the administrator, acting individually or jointly, is hereby
 2010  authorized to file and maintain an action in the courts of the
 2011  state to require any employer to remit any retirement or social
 2012  security member contributions or employer matching payments due
 2013  the retirement or social security trust funds under the
 2014  provisions of this chapter.
 2015         (d) Should the income of any constitutional fee officer, in
 2016  any year, be insufficient to make the matching payments required
 2017  by this chapter, the board of county commissioners shall provide
 2018  such fee officer sufficient funds to make these required
 2019  payments when due.
 2020         Section 13. Subsections (2) and (5) and paragraph (c) of
 2021  subsection (6) of section 121.071, Florida Statutes, are
 2022  amended, present paragraph (d) of subsection (6) of that section
 2023  is redesignated as paragraph (e), a new paragraph (d) is added
 2024  to that subsection, and subsection (7) is added to that section,
 2025  to read:
 2026         121.071 Contributions.—Contributions to the system shall be
 2027  made as follows:
 2028         (2)(a) Effective January 1, 1975, or October 1, 1975, as
 2029  applicable, and through June 30, 2011, each employer shall make
 2030  accomplish the contribution required by subsection (1) by a
 2031  procedure in which no employee’s gross salary is shall be
 2032  reduced. Effective July 1, 2011, each employer and employee
 2033  shall pay retirement contributions as specified in s. 121.71.
 2034         (b) Upon termination of employment from all participating
 2035  employers for 3 calendar months for any reason other than
 2036  retirement pursuant to s. 121.021(39)(c), a member may receive
 2037  shall be entitled to a full refund of all the contributions he
 2038  or she has made to the pension prior or subsequent to
 2039  participation in the noncontributory plan, subject to the
 2040  restrictions otherwise provided in this chapter. Partial refunds
 2041  are not permitted. The refund may not include any interest
 2042  earnings on the contributions for a member of the pension plan.
 2043  Employer contributions made on behalf of the member are not
 2044  refundable. A member may not receive a refund of employee
 2045  contributions if a pending or an approved qualified domestic
 2046  relations order is filed against his or her retirement account.
 2047  By obtaining a refund of contributions, a member waives all
 2048  rights under the Florida Retirement System and the health
 2049  insurance subsidy to the service credit represented by the
 2050  refunded contributions, except the right to purchase his or her
 2051  prior service credit in accordance with s. 121.081(2).
 2052         (5) Contributions made in accordance with subsections (1),
 2053  (2), (3), and (4), and s. 121.71 shall be paid by the employer
 2054  into the system trust funds in accordance with rules adopted by
 2055  the administrator pursuant to chapter 120, except as may be
 2056  otherwise specified herein. Effective July 1, 2002,
 2057  contributions paid under subsections (1) and (4) and
 2058  accompanying payroll data are due and payable no later than the
 2059  5th working day of the month immediately following the month
 2060  during which the payroll period ended.
 2061         (6)
 2062         (c) By obtaining a refund of contributions, a member waives
 2063  all rights under the Florida Retirement System and the health
 2064  insurance subsidy as provided in s. 112.363 to the service
 2065  credit represented by the refunded contributions, except the
 2066  right to purchase his or her prior service credit in accordance
 2067  with s. 121.081(2).
 2068         (d) If a member or former member of the pension plan
 2069  receives an invalid refund from the Florida Retirement System
 2070  Trust Fund, such person must repay the full amount of the
 2071  invalid refund, plus interest at 6.5 percent compounded annually
 2072  on each June 30 from the date of refund until full payment is
 2073  made to the trust fund. The invalid refund must be repaid before
 2074  the member retires or, if applicable, transfers to the
 2075  investment plan.
 2076         (7) Before termination of employment, benefits, including
 2077  employee contributions, are not payable under the pension plan
 2078  for employee hardships, unforeseeable emergencies, loans,
 2079  medical expenses, educational expenses, purchase of a principal
 2080  residence, payments necessary to prevent eviction or foreclosure
 2081  on an employee’s principal residence, or any other reason before
 2082  termination from all employment relationships with participating
 2083  employers.
 2084         Section 14. Paragraphs (b) and (c) of subsection (1) and
 2085  subsection (2) of section 121.081, Florida Statutes, are amended
 2086  to read:
 2087         121.081 Past service; prior service; contributions.
 2088  Conditions under which past service or prior service may be
 2089  claimed and credited are:
 2090         (1)
 2091         (b) Past service earned after January 1, 1975, may be
 2092  claimed by officers or employees of a municipality, metropolitan
 2093  planning organization, charter school, charter technical career
 2094  center, or special district who become a covered group under
 2095  this system. The governing body of a covered group may elect to
 2096  provide benefits for past service earned after January 1, 1975,
 2097  in accordance with this chapter., and The cost for such past
 2098  service is established by applying the following formula: The
 2099  employer shall contribute an amount equal to the employer
 2100  contribution rate in effect at the time the service was earned
 2101  and, if applicable, the employee contribution rate, multiplied
 2102  by the employee’s gross salary for each year of past service
 2103  claimed, plus 6.5 percent 6.5-percent interest thereon,
 2104  compounded annually, for figured on each year of past service,
 2105  with interest compounded from date of annual salary earned until
 2106  date of payment.
 2107         (c) If an employer joins the Florida Retirement System and
 2108  does Should the employer not elect to provide past service for
 2109  the member at the time of joining, then the member may claim and
 2110  pay for the service as provided in same, based on paragraphs (a)
 2111  and (b).
 2112         (2) Prior service, as defined in s. 121.021(19), may be
 2113  claimed as creditable service under the Florida Retirement
 2114  System after a member has been reemployed for 1 complete year of
 2115  creditable service within a period of 12 consecutive months,
 2116  except as provided in paragraph (c). Service performed as a
 2117  member participant of the optional retirement program for the
 2118  State University System under s. 121.35 or the Senior Management
 2119  Service Optional Annuity Program under s. 121.055 may be used to
 2120  satisfy the reemployment requirement of 1 complete year of
 2121  creditable service. The member shall not be permitted to make
 2122  any contributions for prior service until after completion of
 2123  the 1 year of creditable service. If a member does not wish to
 2124  claim credit for all of his or her prior service, the service
 2125  the member claims must be the most recent period of service. The
 2126  required contributions for claiming the various types of prior
 2127  service are:
 2128         (a) For prior service performed before prior to the date
 2129  the system becomes noncontributory for the member and for which
 2130  the member had credit under one of the existing retirement
 2131  systems and received a refund of contributions upon termination
 2132  of employment, the member shall contribute 4 percent of all
 2133  salary received during the period being claimed, plus 4 percent
 2134  4-percent interest compounded annually from date of refund until
 2135  July 1, 1975, and 6.5 percent 6.5-percent interest compounded
 2136  annually thereafter, until full payment is made to the Florida
 2137  Retirement System Trust Fund, and shall receive credit in the
 2138  Regular Class. A member who elected to transfer to the Florida
 2139  Retirement System from an existing system may receive credit for
 2140  prior service under the existing system if he or she was
 2141  eligible under the existing system to claim the prior service at
 2142  the time of the transfer. Contributions for such prior service
 2143  shall be determined by the applicable provisions of the system
 2144  under which the prior service is claimed and shall be paid by
 2145  the member, with matching contributions paid by the employer at
 2146  the time the service was performed. Effective July 1, 1978, the
 2147  account of a person who terminated under s. 238.05(3) may not be
 2148  charged interest for contributions that remained on deposit in
 2149  the Annuity Savings Trust Fund established under chapter 238,
 2150  upon retirement under this chapter or chapter 238.
 2151         (b) For prior service performed before prior to the date
 2152  the system becomes noncontributory for the member and for which
 2153  the member had credit under the Florida Retirement System and
 2154  received a refund of contributions upon termination of
 2155  employment, the member shall contribute at the rate that was
 2156  required of him or her during the period of service being
 2157  claimed, on all salary received during such period, plus 4
 2158  percent 4-percent interest compounded annually from date of
 2159  refund until July 1, 1975, and 6.5 percent 6.5-percent interest
 2160  compounded annually thereafter, until the full payment is made
 2161  to the Florida Retirement System Trust Fund, and shall receive
 2162  credit in the membership class in which the member participated
 2163  during the period claimed.
 2164         (c) For prior service as defined in s. 121.021(19)(b) and
 2165  (c) during which no contributions were made because the member
 2166  did not participate in a retirement system, the member shall
 2167  contribute 14.38 percent of all salary received during such
 2168  period or 14.38 percent of $100 per month during such period,
 2169  whichever is greater, plus 4 percent 4-percent interest
 2170  compounded annually from the first year of service claimed until
 2171  July 1, 1975, and 6.5 percent 6.5-percent interest compounded
 2172  annually thereafter, until full payment is made to the
 2173  Retirement Trust Fund, and shall receive credit in the Regular
 2174  Class.
 2175         (d) In order to claim credit for prior service as defined
 2176  in s. 121.021(19)(d) for which no retirement contributions were
 2177  paid during the period of such service, the member shall
 2178  contribute the total employee and employer contributions which
 2179  were required to be made to the Highway Patrol Pension Trust
 2180  Fund, as provided in chapter 321, during the period claimed,
 2181  plus 4 percent 4-percent interest compounded annually from the
 2182  first year of service until July 1, 1975, and 6.5 percent 6.5
 2183  percent interest compounded annually thereafter, until full
 2184  payment is made to the Retirement Trust Fund. However, any
 2185  governmental entity that which employed such member may elect to
 2186  pay up to 50 percent of the contributions and interest required
 2187  to purchase the this prior service credit. The service shall be
 2188  credited in accordance with the provisions of the Highway Patrol
 2189  Pension Plan in effect during the period claimed unless the
 2190  member terminated and withdrew his or her retirement
 2191  contributions and was thereafter enrolled in the State and
 2192  County Officers and Employees’ Retirement System or the Florida
 2193  Retirement System, in which case the service shall be credited
 2194  as Regular Class service.
 2195         (e) For service performed under the Florida Retirement
 2196  System after December 1, 1970, which that was never reported to
 2197  the division or the department due to error, retirement credit
 2198  may be claimed by a member of the Florida Retirement System. The
 2199  department shall adopt rules establishing criteria for claiming
 2200  such credit and detailing the documentation required to
 2201  substantiate the error.
 2202         (f) For prior service performed on or after July 1, 2011,
 2203  for which the member had credit under the Florida Retirement
 2204  System and received a refund of contributions 3 calendar months
 2205  after termination of employment, the member shall contribute at
 2206  the rate that was required during the period of service being
 2207  claimed, plus 6.5 percent interest, compounded annually on each
 2208  June 30 from date of refund until the full payment is made to
 2209  the Florida Retirement System Trust Fund, and receive credit in
 2210  the membership class in which the member participated during the
 2211  period claimed.
 2212         (g)(f) The employer may not be required to make
 2213  contributions for prior service credit for any member, except
 2214  that the employer shall pay the employer portion of
 2215  contributions for any legislator who elects to withdraw from the
 2216  Florida Retirement System and later rejoins the system and pays
 2217  any employee contributions required in accordance with s.
 2218  121.052(3)(d).
 2219         Section 15. Paragraphs (a) and (b) of subsection (3),
 2220  paragraphs (a) and (j) of subsection (4), paragraphs (a) and (c)
 2221  of subsection (5), paragraph (d) of subsection (9), paragraphs
 2222  (a) and (c) of subsection (13), and paragraph (d) of subsection
 2223  (14) of section 121.091, Florida Statutes, are amended to read:
 2224         121.091 Benefits payable under the system.—Benefits may not
 2225  be paid under this section unless the member has terminated
 2226  employment as provided in s. 121.021(39)(a) or begun
 2227  participation in the Deferred Retirement Option Program as
 2228  provided in subsection (13), and a proper application has been
 2229  filed in the manner prescribed by the department. The department
 2230  may cancel an application for retirement benefits when the
 2231  member or beneficiary fails to timely provide the information
 2232  and documents required by this chapter and the department’s
 2233  rules. The department shall adopt rules establishing procedures
 2234  for application for retirement benefits and for the cancellation
 2235  of such application when the required information or documents
 2236  are not received.
 2237         (3) EARLY RETIREMENT BENEFIT.—Upon retirement on his or her
 2238  early retirement date, the member shall receive an immediate
 2239  monthly benefit that shall begin to accrue on the first day of
 2240  the month of the retirement date and be payable on the last day
 2241  of that month and each month thereafter during his or her
 2242  lifetime. Such benefit shall be calculated as follows:
 2243         (a) For a member initially enrolled:
 2244         1. Before July 1, 2011, the amount of each monthly payment
 2245  shall be computed in the same manner as for a normal retirement
 2246  benefit, in accordance with subsection (1), but shall be based
 2247  on the member’s average monthly compensation and creditable
 2248  service as of the member’s early retirement date. The benefit so
 2249  computed shall be reduced by five-twelfths of 1 percent for each
 2250  complete month by which the early retirement date precedes the
 2251  normal retirement date of age 62 for a member of the Regular
 2252  Class, Senior Management Service Class, or the Elected Officers’
 2253  Class, and age 55 for a member of the Special Risk Class, or age
 2254  52 if a Special Risk member has completed 25 years of creditable
 2255  service in accordance with s. 121.021(29)(b)1.c.
 2256  121.021(29)(b)3.
 2257         2. On or after July 1, 2011, the amount of each monthly
 2258  payment shall be computed in the same manner as for a normal
 2259  retirement benefit, in accordance with subsection (1), but shall
 2260  be based on the member’s average monthly compensation and
 2261  creditable service as of the member’s early retirement date. The
 2262  benefit so computed shall be reduced by five-twelfths of 1
 2263  percent for each complete month by which the early retirement
 2264  date precedes the normal retirement date of age 65 for a member
 2265  of the Regular Class, Senior Management Service Class, or the
 2266  Elected Officers’ Class, and age 60 for a member of the Special
 2267  Risk Class, or age 57 if a special risk member has completed 30
 2268  years of creditable service in accordance with s.
 2269  121.021(29)(b)2.c.
 2270         (b) If the employment of a member is terminated by reason
 2271  of death within 10 years before normal retirement as described
 2272  in s. 121.021(29)(a)1.b. or s. 121.021(29)(a)2.b. subsequent to
 2273  the completion of 20 years of creditable service, the monthly
 2274  benefit payable to the member’s beneficiary shall be calculated
 2275  in accordance with subsection (1), but must shall be based on
 2276  average monthly compensation and creditable service as of the
 2277  date of death. The benefit so computed shall be reduced by five
 2278  twelfths of 1 percent for each complete month by which death
 2279  precedes the normal retirement date specified above or the date
 2280  on which the member would have attained the normal retirement
 2281  date 30 years of creditable service had he or she survived and
 2282  continued his or her employment, whichever provides a higher
 2283  benefit.
 2284         (4) DISABILITY RETIREMENT BENEFIT.—
 2285         (a) Disability retirement; entitlement and effective date.—
 2286         1.a. A member who becomes totally and permanently disabled,
 2287  as defined in paragraph (b), after completing 5 years of
 2288  creditable service, or a member who becomes totally and
 2289  permanently disabled in the line of duty regardless of service,
 2290  is shall be entitled to a monthly disability benefit; except
 2291  that any member with less than 5 years of creditable service on
 2292  July 1, 1980, or any person who becomes a member of the Florida
 2293  Retirement System on or after such date must have completed 10
 2294  years of creditable service before prior to becoming totally and
 2295  permanently disabled in order to receive disability retirement
 2296  benefits for any disability which occurs other than in the line
 2297  of duty. However, if a member employed on July 1, 1980, who has
 2298  with less than 5 years of creditable service as of that date,
 2299  becomes totally and permanently disabled after completing 5
 2300  years of creditable service and is found not to have attained
 2301  fully insured status for benefits under the federal Social
 2302  Security Act, such member is shall be entitled to a monthly
 2303  disability benefit.
 2304         b. Effective July 1, 2001, a member of the pension plan
 2305  defined benefit retirement program who becomes totally and
 2306  permanently disabled, as defined in paragraph (b), after
 2307  completing 8 years of creditable service, or a member who
 2308  becomes totally and permanently disabled in the line of duty
 2309  regardless of service, is shall be entitled to a monthly
 2310  disability benefit.
 2311         2. If the division has received from the employer the
 2312  required documentation of the member’s termination of
 2313  employment, the effective retirement date for a member who
 2314  applies and is approved for disability retirement shall be
 2315  established by rule of the division.
 2316         3. For a member who is receiving Workers’ Compensation
 2317  payments, the effective disability retirement date may not
 2318  precede the date the member reaches Maximum Medical Improvement
 2319  (MMI), unless the member terminates employment before prior to
 2320  reaching MMI.
 2321         (j) Disability retirement of justice or judge by order of
 2322  Supreme Court.—
 2323         1. If a member is a justice of the Supreme Court, judge of
 2324  a district court of appeal, circuit judge, or judge of a county
 2325  court who has served for the number of years equal to, or
 2326  greater than, the vesting requirement in s. 121.021(45) 6 years
 2327  or more as an elected constitutional judicial officer, including
 2328  service as a judicial officer, in any court abolished pursuant
 2329  to Art. V of the State Constitution, and who is retired for
 2330  disability by order of the Supreme Court upon recommendation of
 2331  the Judicial Qualifications Commission pursuant to the
 2332  provisions of Art. V of the State Constitution, the member’s
 2333  Option 1 monthly benefit as provided in subparagraph (6)(a)1.
 2334  may shall not be less than two-thirds of his or her monthly
 2335  compensation as of the member’s disability retirement date. Such
 2336  a member may alternatively elect to receive a disability
 2337  retirement benefit under any other option as provided in
 2338  paragraph (6)(a).
 2339         2. Should any justice or judge who is a member of the
 2340  Florida Retirement System be retired for disability by order of
 2341  the Supreme Court upon recommendation of the Judicial
 2342  Qualifications Commission pursuant to the provisions of Art. V
 2343  of the State Constitution, then all contributions to his or her
 2344  account and all contributions made on his or her behalf by the
 2345  employer shall be transferred to and deposited in the General
 2346  Revenue Fund of the state, and there is hereby appropriated
 2347  annually out of the General Revenue Fund, to be paid into the
 2348  Florida Retirement System Fund, an amount necessary to pay the
 2349  benefits of all justices and judges retired from the Florida
 2350  Retirement System pursuant to Art. V of the State Constitution.
 2351         (5) TERMINATION BENEFITS.—A member whose employment is
 2352  terminated prior to retirement retains membership rights to
 2353  previously earned member-noncontributory service credit, and to
 2354  member-contributory service credit, if the member leaves the
 2355  member contributions on deposit in his or her retirement
 2356  account. If a terminated member receives a refund of member
 2357  contributions, such member may reinstate membership rights to
 2358  the previously earned service credit represented by the refund
 2359  by completing 1 year of creditable service and repaying the
 2360  refunded member contributions, plus interest.
 2361         (a) A member whose employment is terminated for any reason
 2362  other than death or retirement before prior to becoming vested
 2363  is entitled to the return of his or her accumulated
 2364  contributions as of the date of termination. Effective July 1,
 2365  2011, upon termination of employment from all participating
 2366  employers for 3 calendar months as defined in s. 121.021(39)(c)
 2367  for any reason other than retirement, a member may receive a
 2368  refund of all contributions he or she has made to the pension
 2369  plan, subject to the restrictions otherwise provided in this
 2370  chapter. The refund may be received as a lump-sum payment, a
 2371  rollover to a qualified plan, or a combination of these methods.
 2372  Partial refunds are not permitted. The refund may not include
 2373  any interest earnings on the contributions for a member of the
 2374  pension plan. Employer contributions made on behalf of the
 2375  member are not refundable. A member may not receive a refund of
 2376  employee contributions if a pending or an approved qualified
 2377  domestic relations order is filed against his or her retirement
 2378  account. By obtaining a refund of contributions, a member waives
 2379  all rights under the Florida Retirement System and the health
 2380  insurance subsidy to the service credit represented by the
 2381  refunded contributions, except the right to purchase his or her
 2382  prior service credit in accordance with s. 121.081(2).
 2383         (c) In lieu of the deferred monthly benefit provided in
 2384  paragraph (b), the terminated member may elect to receive a
 2385  lump-sum amount equal to his or her accumulated contributions as
 2386  of the date of termination. Effective July 1, 2011, upon
 2387  termination of employment from all participating employers for 3
 2388  calendar months as defined in s. 121.021(39)(c) for any reason
 2389  other than retirement, a member may receive a refund of all
 2390  contributions he or she has made to the pension plan, subject to
 2391  the restrictions otherwise provided in this chapter. Partial
 2392  refunds are not permitted. The refund may not include any
 2393  interest earnings on the contributions for a member of the
 2394  pension plan. Employer contributions made on behalf of the
 2395  member are not refundable. A member may not receive a refund of
 2396  employee contributions if a pending or an approved qualified
 2397  domestic relations order is filed against his or her retirement
 2398  account. By obtaining a refund of contributions, a member waives
 2399  all rights under the Florida Retirement System and the health
 2400  insurance subsidy to the service credit represented by the
 2401  refunded contributions, except the right to purchase his or her
 2402  prior service credit in accordance with s. 121.081(2).
 2403         (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
 2404         (d) The provisions of This subsection applies apply to
 2405  retirees, as defined in s. 121.4501(2), of the Florida
 2406  Retirement System Investment Plan Public Employee Optional
 2407  Retirement Program, subject to the following conditions:
 2408         1. A retiree The retirees may not be reemployed with an
 2409  employer participating in the Florida Retirement System until
 2410  such person has been retired for 6 calendar months.
 2411         2. A retiree employed in violation of this subsection and
 2412  an employer that employs or appoints such person are jointly and
 2413  severally liable for reimbursement of any benefits paid to the
 2414  retirement trust fund from which the benefits were paid,
 2415  including the Retirement System Trust Fund and the Public
 2416  Employee Optional Retirement Program Trust Fund, as appropriate.
 2417  The employer must have a written statement from the retiree that
 2418  he or she is not retired from a state-administered retirement
 2419  system.
 2420         (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
 2421  subject to this section, the Deferred Retirement Option Program,
 2422  hereinafter referred to as DROP, is a program under which an
 2423  eligible member of the Florida Retirement System may elect to
 2424  participate, deferring receipt of retirement benefits while
 2425  continuing employment with his or her Florida Retirement System
 2426  employer. The deferred monthly benefits shall accrue in the
 2427  Florida Retirement System on behalf of the member participant,
 2428  plus interest compounded monthly, for the specified period of
 2429  the DROP participation, as provided in paragraph (c). Upon
 2430  termination of employment, the member participant shall receive
 2431  the total DROP benefits and begin to receive the previously
 2432  determined normal retirement benefits. Participation in the DROP
 2433  does not guarantee employment for the specified period of DROP.
 2434  Participation in DROP by an eligible member beyond the initial
 2435  60-month period as authorized in this subsection shall be on an
 2436  annual contractual basis for all participants.
 2437         (a) Eligibility of member to participate in DROP.—All
 2438  active Florida Retirement System members in a regularly
 2439  established position, and all active members of the Teachers’
 2440  Retirement System established in chapter 238 or the State and
 2441  County Officers’ and Employees’ Retirement System established in
 2442  chapter 122, which are consolidated within the Florida
 2443  Retirement System under s. 121.011, are eligible to elect
 2444  participation in DROP if:
 2445         1. The member is not a renewed member under s. 121.122 or a
 2446  member of the State Community College System Optional Retirement
 2447  Program under s. 121.051, the Senior Management Service Optional
 2448  Annuity Program under s. 121.055, or the optional retirement
 2449  program for the State University System under s. 121.35.
 2450         2. Except as provided in subparagraph 6., election to
 2451  participate is made within 12 months immediately following the
 2452  date on which the member first reaches normal retirement date,
 2453  or, for a member who reaches normal retirement date based on
 2454  service before he or she reaches age 62, or age 55 for Special
 2455  Risk Class members, election to participate may be deferred to
 2456  the 12 months immediately following the date the member attains
 2457  age 57, or age 52 for Special Risk Class members. A member who
 2458  delays DROP participation during the 12-month period immediately
 2459  following his or her maximum DROP deferral date, except as
 2460  provided in subparagraph 6., loses a month of DROP participation
 2461  for each month delayed. A member who fails to make an election
 2462  within the 12-month limitation period forfeits all rights to
 2463  participate in DROP. The member shall advise his or her employer
 2464  and the division in writing of the date DROP begins. The
 2465  beginning date may be subsequent to the 12-month election period
 2466  but must be within the original 60-month participation period
 2467  provided in subparagraph (b)1. When establishing eligibility of
 2468  the member to participate in DROP, the member may elect to
 2469  include or exclude any optional service credit purchased by the
 2470  member from the total service used to establish the normal
 2471  retirement date. A member who has dual normal retirement dates
 2472  is eligible to elect to participate in DROP after attaining
 2473  normal retirement date in either class.
 2474         3. The employer of a member electing to participate in
 2475  DROP, or employers if dually employed, shall acknowledge in
 2476  writing to the division the date the member’s participation in
 2477  DROP begins and the date the member’s employment and DROP
 2478  participation terminates will terminate.
 2479         4. Simultaneous employment of a member participant by
 2480  additional Florida Retirement System employers subsequent to the
 2481  commencement of a member’s participation in DROP is permissible
 2482  if such employers acknowledge in writing a DROP termination date
 2483  no later than the member’s participant’s existing termination
 2484  date or the maximum participation period provided in
 2485  subparagraph (b)1.
 2486         5. A member DROP participant may change employers while
 2487  participating in DROP, subject to the following:
 2488         a. A change of employment takes must take place without a
 2489  break in service so that the member receives salary for each
 2490  month of continuous DROP participation. If a member receives no
 2491  salary during a month, DROP participation ceases shall cease
 2492  unless the employer verifies a continuation of the employment
 2493  relationship for such member participant pursuant to s.
 2494  121.021(39)(b).
 2495         b. The member Such participant and new employer shall
 2496  notify the division of the identity of the new employer on forms
 2497  required by the division.
 2498         c. The new employer acknowledges shall acknowledge, in
 2499  writing, the member’s participant’s DROP termination date, which
 2500  may be extended but not beyond the maximum participation period
 2501  provided in subparagraph (b)1., acknowledges shall acknowledge
 2502  liability for any additional retirement contributions and
 2503  interest required if the member participant fails to timely
 2504  terminate employment, and is subject to the adjustment required
 2505  in sub-subparagraph (c)5.d.
 2506         6. Effective July 1, 2001, for instructional personnel as
 2507  defined in s. 1012.01(2), election to participate in DROP may be
 2508  made at any time following the date on which the member first
 2509  reaches normal retirement date. The member shall advise his or
 2510  her employer and the division in writing of the date on which
 2511  DROP begins. When establishing eligibility of the member to
 2512  participate in DROP for the 60-month participation period
 2513  provided in subparagraph (b)1., the member may elect to include
 2514  or exclude any optional service credit purchased by the member
 2515  from the total service used to establish the normal retirement
 2516  date. A member who has dual normal retirement dates is eligible
 2517  to elect to participate in either class.
 2518         (c) Benefits payable under DROP.—
 2519         1. Effective on the date of DROP participation, the
 2520  member’s initial normal monthly benefit, including creditable
 2521  service, optional form of payment, and average final
 2522  compensation, and the effective date of retirement are fixed.
 2523  The beneficiary established under the Florida Retirement System
 2524  is the beneficiary eligible to receive any DROP benefits payable
 2525  if the DROP participant dies before completing the period of
 2526  DROP participation. If a joint annuitant predeceases the member,
 2527  the member may name a beneficiary to receive accumulated DROP
 2528  benefits payable. The retirement benefit, the annual cost of
 2529  living adjustments provided in s. 121.101, and interest accrue
 2530  monthly in the Florida Retirement System Trust Fund. For members
 2531  whose DROP participation begins:
 2532         a. Before July 1, 2011, the interest accrues at an
 2533  effective annual rate of 6.5 percent compounded monthly, on the
 2534  prior month’s accumulated ending balance, up to the month of
 2535  termination or death, except as provided in s. 121.053(7).
 2536         b. On or after July 1, 2011, the interest accrues at an
 2537  effective annual rate of 1.3 percent, compounded monthly, on the
 2538  prior month’s accumulated ending balance, up to the month of
 2539  termination or death, except as provided in s. 121.053(7).
 2540         2. Each employee who elects to participate in DROP may
 2541  elect to receive a lump-sum payment for accrued annual leave
 2542  earned in accordance with agency policy upon beginning
 2543  participation in DROP. The accumulated leave payment certified
 2544  to the division upon commencement of DROP shall be included in
 2545  the calculation of the member’s average final compensation. The
 2546  employee electing the lump-sum payment is not eligible to
 2547  receive a second lump-sum payment upon termination, except to
 2548  the extent the employee has earned additional annual leave
 2549  which, combined with the original payment, does not exceed the
 2550  maximum lump-sum payment allowed by the employing agency’s
 2551  policy or rules. An early lump-sum payment shall be based on the
 2552  hourly wage of the employee at the time he or she begins
 2553  participation in DROP. If the member elects to wait and receive
 2554  a lump-sum payment upon termination of DROP and termination of
 2555  employment with the employer, any accumulated leave payment made
 2556  at that time may not be included in the member’s retirement
 2557  benefit, which was determined and fixed by law when the employee
 2558  elected to participate in DROP.
 2559         3. The effective date of DROP participation and the
 2560  effective date of retirement of a DROP participant shall be the
 2561  first day of the month selected by the member to begin
 2562  participation in DROP, provided such date is properly
 2563  established, with the written confirmation of the employer, and
 2564  the approval of the division, on forms required by the division.
 2565         4. Normal retirement benefits and any interest shall
 2566  continue to accrue in DROP until the established termination
 2567  date of DROP or until the member participant terminates
 2568  employment or dies before prior to such date, except as provided
 2569  in s. 121.053(7). Although individual DROP accounts may shall
 2570  not be established, a separate accounting of each member’s
 2571  participant’s accrued benefits under DROP shall be calculated
 2572  and provided to the member participants.
 2573         5. At the conclusion of the member’s participation in the
 2574  participant’s DROP, the division shall distribute the member’s
 2575  participant’s total accumulated DROP benefits, subject to the
 2576  following:
 2577         a. The division shall receive verification by the member’s
 2578  participant’s employer or employers that the member participant
 2579  has terminated all employment relationships as provided in s.
 2580  121.021(39).
 2581         b. The terminated DROP participant or, if deceased, the
 2582  member’s participant’s named beneficiary, shall elect on forms
 2583  provided by the division to receive payment of the DROP benefits
 2584  in accordance with one of the options listed below. If a member
 2585  participant or beneficiary fails to elect a method of payment
 2586  within 60 days after termination of DROP, the division shall pay
 2587  a lump sum as provided in sub-sub-subparagraph (I).
 2588         (I) Lump sum.—All accrued DROP benefits, plus interest,
 2589  less withholding taxes remitted to the Internal Revenue Service,
 2590  shall be paid to the DROP participant or surviving beneficiary.
 2591         (II) Direct rollover.—All accrued DROP benefits, plus
 2592  interest, shall be paid from DROP directly to the custodian of
 2593  an eligible retirement plan as defined in s. 402(c)(8)(B) of the
 2594  Internal Revenue Code. However, in the case of an eligible
 2595  rollover distribution to the surviving spouse of a deceased
 2596  member participant, an eligible retirement plan is an individual
 2597  retirement account or an individual retirement annuity as
 2598  described in s. 402(c)(9) of the Internal Revenue Code.
 2599         (III) Partial lump sum.—A portion of the accrued DROP
 2600  benefits shall be paid to DROP participant or surviving spouse,
 2601  less withholding taxes remitted to the Internal Revenue Service,
 2602  and the remaining DROP benefits must be transferred directly to
 2603  the custodian of an eligible retirement plan as defined in s.
 2604  402(c)(8)(B) of the Internal Revenue Code. However, in the case
 2605  of an eligible rollover distribution to the surviving spouse of
 2606  a deceased member participant, an eligible retirement plan is an
 2607  individual retirement account or an individual retirement
 2608  annuity as described in s. 402(c)(9) of the Internal Revenue
 2609  Code. The proportions must be specified by the DROP participant
 2610  or surviving beneficiary.
 2611         c. The form of payment selected by the DROP participant or
 2612  surviving beneficiary must comply with the minimum distribution
 2613  requirements of the Internal Revenue Code.
 2614         d. A DROP participant who fails to terminate all employment
 2615  relationships as provided in s. 121.021(39) shall be deemed as
 2616  not retired, and the DROP election is null and void. Florida
 2617  Retirement System membership shall be reestablished
 2618  retroactively to the date of the commencement of DROP, and each
 2619  employer with whom the member participant continues employment
 2620  must pay to the Florida Retirement System Trust Fund the
 2621  difference between the DROP contributions paid in paragraph (i)
 2622  and the contributions required for the applicable Florida
 2623  Retirement System class of membership during the period the
 2624  member participated in DROP, plus 6.5 percent interest
 2625  compounded annually.
 2626         6. The retirement benefits of any DROP participant who
 2627  terminates all employment relationships as provided in s.
 2628  121.021(39) but is reemployed in violation of the reemployment
 2629  provisions of subsection (9) are shall be suspended during those
 2630  months in which the retiree is in violation. Any retiree in
 2631  violation of this subparagraph and any employer that employs or
 2632  appoints such person without notifying the division of
 2633  Retirement to suspend retirement benefits are jointly and
 2634  severally liable for any benefits paid during the reemployment
 2635  limitation period. The employer must have a written statement
 2636  from the retiree that he or she is not retired from a state
 2637  administered retirement system. Any retirement benefits received
 2638  by a retiree while employed in violation of the reemployment
 2639  limitations must be repaid to the Florida Retirement System
 2640  Trust Fund, and his or her retirement benefits shall remain
 2641  suspended until payment is made. Benefits suspended beyond the
 2642  end of the reemployment limitation period apply toward repayment
 2643  of benefits received in violation of the reemployment
 2644  limitation.
 2645         7. The accrued benefits of any DROP participant, and any
 2646  contributions accumulated under the program, are not subject to
 2647  assignment, execution, attachment, or any legal process
 2648  whatsoever, except for qualified domestic relations court orders
 2649  by a court of competent jurisdiction, income deduction orders as
 2650  provided in s. 61.1301, and federal income tax levies.
 2651         8. DROP participants are not eligible for disability
 2652  retirement benefits as provided in subsection (4).
 2653         (14) PAYMENT OF BENEFITS.—This subsection applies to the
 2654  payment of benefits to a payee (retiree or beneficiary) under
 2655  the Florida Retirement System:
 2656         (d) A payee whose retirement benefits are reduced by the
 2657  application of maximum benefit limits under s. 415(b) of the
 2658  Internal Revenue Code, as specified in s. 121.30(5), shall have
 2659  the portion of his or her calculated benefit in the Florida
 2660  Retirement System Pension System defined benefit Plan which
 2661  exceeds such federal limitation paid through the Florida
 2662  Retirement System Preservation of Benefits Plan, as provided in
 2663  s. 121.1001.
 2664         Section 16. Subsection (1) and paragraph (a) of subsection
 2665  (2) of section 121.1001, Florida Statutes, are amended to read:
 2666         121.1001 Florida Retirement System Preservation of Benefits
 2667  Plan.—Effective July 1, 1999, the Florida Retirement System
 2668  Preservation of Benefits Plan is established as a qualified
 2669  governmental excess benefit arrangement pursuant to s. 415(m) of
 2670  the Internal Revenue Code. The Preservation of Benefits Plan is
 2671  created as a separate portion of the Florida Retirement System,
 2672  for the purpose of providing benefits to a payee (retiree or
 2673  beneficiary) of the Florida Retirement System whose benefits
 2674  would otherwise be limited by s. 415(b) of the Internal Revenue
 2675  Code.
 2676         (1) ELIGIBILITY TO PARTICIPATE IN THE PRESERVATION OF
 2677  BENEFITS PLAN.—A payee of the Florida Retirement System shall
 2678  participate in the Preservation of Benefits Plan if whenever his
 2679  or her earned benefit under the Florida Retirement System
 2680  Pension System defined benefit Plan exceeds the benefit maximum
 2681  established under s. 415(b) of the Internal Revenue Code.
 2682  Participation in the Preservation of Benefits Plan shall
 2683  continue for as long as the payee’s earned benefit under the
 2684  pension Florida Retirement System defined benefit plan is
 2685  reduced by the application of the maximum benefit limit under s.
 2686  415(b) of the Internal Revenue Code.
 2687         (2) BENEFITS PAYABLE UNDER THE PRESERVATION OF BENEFITS
 2688  PLAN.—
 2689         (a) On and after July 1, 1999, the division of Retirement
 2690  shall pay to each eligible payee of the Florida Retirement
 2691  System who retires before, on, or after that such date, a
 2692  supplemental retirement benefit equal to the difference between
 2693  the amount of the payee’s monthly retirement benefit which would
 2694  have been payable under the Florida Retirement System Pension
 2695  System defined benefit Plan if not for a reduction due to the
 2696  application of s. 415(b) of the Internal Revenue Code and the
 2697  reduced monthly retirement benefit as paid to the payee. The
 2698  Preservation of Benefits Plan benefit shall be computed and
 2699  payable under the same terms and conditions and to the same
 2700  person as would have applied under the pension Florida
 2701  Retirement System defined benefit plan were it not for the
 2702  federal limitation.
 2703         Section 17. Subsections (1) and (3) of section 121.101,
 2704  Florida Statutes, are amended, present subsections (4) through
 2705  (7) of that section are redesignated as subsections (6) through
 2706  (9), respectively, and new subsections (4) and (5) are added to
 2707  that section, to read:
 2708         121.101 Cost-of-living adjustment of benefits.—
 2709         (1) The purpose of this section is to provide cost-of
 2710  living adjustments to the monthly benefits payable to all
 2711  retired members of state-supported retirement systems.
 2712         (3) Commencing July 1, 1987, the benefit of each retiree
 2713  and annuitant whose effective retirement date is before July 1,
 2714  2011, shall be adjusted annually on each July 1 thereafter, as
 2715  follows:
 2716         (a) For those retirees and annuitants who have never
 2717  received a cost-of-living adjustment under this section, the
 2718  amount of the monthly benefit payable for the 12-month period
 2719  commencing on the adjustment date shall be the amount of the
 2720  member’s initial benefit plus an amount equal to a percentage of
 2721  the member’s initial benefit; this percentage is derived by
 2722  dividing the number of months the member has received an initial
 2723  benefit by 12, and multiplying the result by 3.
 2724         (b) For those retirees and annuitants who have received a
 2725  cost-of-living adjustment under this subsection section, the
 2726  adjusted monthly benefit shall be the amount of the monthly
 2727  benefit being received on June 30 immediately preceding the
 2728  adjustment date plus an amount equal to 3 percent of this
 2729  benefit.
 2730         (4) For members whose effective retirement date is on or
 2731  after July 1, 2011, the benefit of each retiree and annuitant
 2732  shall be adjusted annually on July 1 as follows:
 2733         (a) For those retirees and annuitants who have never
 2734  received a cost-of-living adjustment under this subsection, the
 2735  amount of the monthly benefit payable for the 12-month period
 2736  commencing on the adjustment date shall be the amount of the
 2737  member’s initial benefit plus an amount equal to a percentage of
 2738  the member’s initial benefit. This percentage is derived by
 2739  dividing the number of months the member has received an initial
 2740  benefit by 12, and multiplying the result by the factor
 2741  calculated pursuant to paragraph (c).
 2742         (b) For those retirees and annuitants who have received a
 2743  cost-of-living adjustment under this subsection, the adjusted
 2744  monthly benefit shall be the amount of the monthly benefit being
 2745  received on June 30 immediately preceding the adjustment date
 2746  plus an amount determined by multiplying the benefit by the
 2747  factor calculated pursuant to paragraph (c).
 2748         (c) The department shall calculate a cost-of-living factor
 2749  for each retiree and beneficiary retiring on or after July 1,
 2750  2011. This factor shall equal the product of 3 percent
 2751  multiplied by the quotient of the sum of the member’s service
 2752  credit earned for service before July 1, 2011, divided by the
 2753  sum of the member’s total service credit earned.
 2754         (5) Subject to the availability of funding and the
 2755  Legislature enacting sufficient employer contributions
 2756  specifically for the purpose of funding the expiration of the
 2757  cost-of-living adjustment specified in subsection (4), in
 2758  accordance with s. 14, Art. X of the State Constitution, the
 2759  cost-of-living adjustment formula provided for in subsection (4)
 2760  shall expire effective June 30, 2016, and the benefit of each
 2761  retiree and annuitant shall be adjusted on each July 1
 2762  thereafter, as provided in subsection (3).
 2763         Section 18. Paragraph (b) of subsection (1) of section
 2764  121.1115, Florida Statutes, is amended to read:
 2765         121.1115 Purchase of retirement credit for out-of-state or
 2766  federal service.—Effective January 1, 1995, a member may
 2767  purchase creditable service for periods of public employment in
 2768  another state and receive creditable service for such periods of
 2769  employment. Service with the Federal Government, including any
 2770  active military service, may be claimed. Upon completion of each
 2771  year of service earned under the Florida Retirement System, a
 2772  member may purchase up to 1 year of retirement credit for his or
 2773  her out-of-state service, subject to the following provisions:
 2774         (1) LIMITATIONS AND CONDITIONS.—To receive credit for the
 2775  out-of-state service:
 2776         (b) The member must have completed the a minimum of 6 years
 2777  of creditable service required for vesting under the Florida
 2778  Retirement System, excluding out-of-state service and in-state
 2779  service claimed and purchased under s. 121.1122.
 2780         Section 19. Paragraph (a) of subsection (2) of section
 2781  121.1122, Florida Statutes, is amended to read:
 2782         121.1122 Purchase of retirement credit for in-state public
 2783  service and in-state service in accredited nonpublic schools and
 2784  colleges, including charter schools and charter technical career
 2785  centers.—Effective January 1, 1998, a member of the Florida
 2786  Retirement System may purchase creditable service for periods of
 2787  certain public or nonpublic employment performed in this state,
 2788  as provided in this section.
 2789         (2) LIMITATIONS AND CONDITIONS.—
 2790         (a) A member is not eligible to receive credit for in-state
 2791  service under this section until he or she has completed the 6
 2792  years of creditable service required for vesting under the
 2793  Florida Retirement System, excluding service purchased under
 2794  this section and out-of-state service claimed and purchased
 2795  under s. 121.1115.
 2796         Section 20. Subsection (1) of section 121.121, Florida
 2797  Statutes, is amended to read:
 2798         121.121 Authorized leaves of absence.—
 2799         (1) A member may purchase creditable service for up to 2
 2800  work years of authorized leaves of absence, including any leaves
 2801  of absence covered under the Family Medical Leave Act, if:
 2802         (a) The member has completed the a minimum of 6 years of
 2803  creditable service required for vesting, excluding periods for
 2804  which a leave of absence was authorized;
 2805         (b) The leave of absence is authorized in writing by the
 2806  employer of the member and approved by the administrator;
 2807         (c) The member returns to active employment performing
 2808  service with a Florida Retirement System employer in a regularly
 2809  established position immediately upon termination of the leave
 2810  of absence and remains on the employer’s payroll for 1 calendar
 2811  month, except that a member who retires on disability while on a
 2812  medical leave of absence may shall not be required to return to
 2813  employment. A member whose work year is less than 12 months and
 2814  whose leave of absence terminates between school years is
 2815  eligible to receive credit for the leave of absence if as long
 2816  as he or she returns to the employment of his or her employer at
 2817  the beginning of the next school year and remains on the
 2818  employer’s payroll for 1 calendar month; and
 2819         (d) The member makes the required contributions for service
 2820  credit during the leave of absence, which shall be 8 percent
 2821  until January 1, 1975, and 9 percent thereafter of his or her
 2822  rate of monthly compensation in effect immediately before prior
 2823  to the commencement of such leave for each month of such period,
 2824  plus 4 percent interest until July 1, 1975, and 6.5 percent
 2825  interest thereafter on such contributions, compounded annually
 2826  each June 30 from the due date of the contribution to date of
 2827  payment.
 2828         1. Effective July 1, 1980, any leave of absence purchased
 2829  pursuant to this section is shall be at the contribution rates
 2830  specified in s. 121.071 or s. 121.71 in effect at the time the
 2831  leave is granted for the class of membership from which the
 2832  leave of absence was granted; however, any member who purchased
 2833  leave-of-absence credit before prior to July 1, 1980, for a
 2834  leave of absence from a position in a class other than the
 2835  regular membership class, may pay the appropriate additional
 2836  contributions plus compound interest thereon and receive
 2837  creditable service for such leave of absence in the membership
 2838  class from which the member was granted the leave of absence.
 2839         2. Effective July 1, 2011, any leave of absence purchased
 2840  by the member pursuant to this section shall be at the employer
 2841  and employee contribution rates specified in s. 121.71 in effect
 2842  during the leave for the class of membership from which the
 2843  leave of absence was granted.
 2844         Section 21. Section 121.125, Florida Statutes, is amended
 2845  to read:
 2846         121.125 Credit for workers’ compensation payment periods.—A
 2847  member of the retirement system created by this chapter who has
 2848  been eligible or becomes eligible to receive workers’
 2849  compensation payments for an injury or illness occurring during
 2850  his or her employment while a member of any state retirement
 2851  system shall, upon return to active employment with a covered
 2852  employer for 1 calendar month or upon approval for disability
 2853  retirement in accordance with s. 121.091(4), receive full
 2854  retirement credit for the period prior to such return to active
 2855  employment or disability retirement for which the workers’
 2856  compensation payments were received. However, a no member may
 2857  not receive retirement credit for any such period occurring
 2858  after the earlier of the date of maximum medical improvement as
 2859  defined in s. 440.02 or the date termination has occurred as
 2860  defined in s. 121.021(39). The employer of record at the time of
 2861  the worker’s compensation injury or illness shall make the
 2862  required employer and employee retirement contributions based on
 2863  the member’s rate of monthly compensation immediately prior to
 2864  his or her receiving workers’ compensation payments for
 2865  retirement credit received by the member. The employer of record
 2866  at the time of the workers’ compensation injury or illness shall
 2867  be assessed by the division a penalty of 1 percent of the
 2868  contributions on all contributions not paid on the first payroll
 2869  report after the member becomes eligible to receive credit. This
 2870  delinquent assessment may not be waived.
 2871         Section 22. Section 121.161, Florida Statutes, is reenacted
 2872  to read:
 2873         121.161 References to other laws include amendments.
 2874  References in this chapter to state or federal laws or
 2875  agreements are intended to include such laws as they now exist
 2876  or may hereafter be amended.
 2877         Section 23. Section 121.182, Florida Statutes, is amended
 2878  to read:
 2879         121.182 Retirement annuities authorized for city and county
 2880  personnel.—Municipalities Cities and counties are authorized to
 2881  purchase annuities for all municipal city and county personnel
 2882  with 25 or more years of creditable service who have reached age
 2883  50 and have applied for retirement under the Florida Retirement
 2884  System. No such annuity shall provide for more than the total
 2885  difference in retirement income between the retirement benefit
 2886  based on average monthly compensation and creditable service as
 2887  of the member’s early retirement date and the early retirement
 2888  benefit. Municipalities Cities and counties may also purchase
 2889  annuities for members of the Florida Retirement System who have
 2890  out-of-state service in another state or country which is
 2891  documented as valid by the appropriate city or county. Such
 2892  annuities may be based on no more than 5 years of out-of-state
 2893  service and may equal, but not exceed, the benefits that would
 2894  be payable under the Florida Retirement System if credit for
 2895  out-of-state service was authorized under that system.
 2896  Municipalities Cities and counties are authorized to invest
 2897  funds, purchase annuities, or provide local supplemental
 2898  retirement programs for purposes of providing annuities for city
 2899  or county personnel. All retirement annuities shall comply with
 2900  s. 14, Art. X of the State Constitution.
 2901         Section 24. Paragraphs (g) and (i) of subsection (3),
 2902  subsection (4), and subsection (5) of section 121.35, Florida
 2903  Statutes, are amended to read:
 2904         121.35 Optional retirement program for the State University
 2905  System.—
 2906         (3) ELECTION OF OPTIONAL PROGRAM.—
 2907         (g) An eligible employee who is a member of the Florida
 2908  Retirement System at the time of election to participate in the
 2909  optional retirement program shall retain all retirement service
 2910  credit earned under the Florida Retirement System, at the rate
 2911  earned. No Additional service credit in the Florida Retirement
 2912  System may not shall be earned while the employee participates
 2913  in the optional program, and nor shall the employee is not be
 2914  eligible for disability retirement under the Florida Retirement
 2915  System. An eligible employee may transfer from the Florida
 2916  Retirement System to his or her accounts under the State
 2917  University System Optional Retirement Program a sum representing
 2918  the present value of the employee’s accumulated benefit
 2919  obligation under the defined benefit program of the pension plan
 2920  Florida Retirement System for any service credit accrued from
 2921  the employee’s first eligible transfer date to the optional
 2922  retirement program through the actual date of such transfer, if
 2923  such service credit was earned in the period from July 1, 1984,
 2924  through December 31, 1992. The present value of the employee’s
 2925  accumulated benefit obligation shall be calculated as described
 2926  in s. 121.4501(3)(c)2. Upon such transfer, all such service
 2927  credit previously earned under the defined benefit program of
 2928  the pension plan Florida Retirement System during this period is
 2929  shall be nullified for purposes of entitlement to a future
 2930  benefit under the pension plan defined benefit program of the
 2931  Florida Retirement System.
 2932         (i) Effective January 1, 2008, through December 31, 2008,
 2933  except for an employee who is a mandatory participant of the
 2934  State University System Optional Retirement Program, an employee
 2935  who has elected to participate in the State University System
 2936  Optional Retirement Program shall have one opportunity, at the
 2937  employee’s discretion, to choose to transfer from this program
 2938  to the defined benefit program of the Florida Retirement System
 2939  Pension Plan or to the investment plan Public Employee Optional
 2940  Retirement Program, subject to the terms of the applicable
 2941  contracts of the State University System Optional Retirement
 2942  Program.
 2943         1. If the employee chooses to move to the investment plan
 2944  Public Employee Optional Retirement Program, any contributions,
 2945  interest, and earnings creditable to the employee under the
 2946  State University System Optional Retirement Program must shall
 2947  be retained by the employee in the State University System
 2948  Optional Retirement Program, and the applicable provisions of s.
 2949  121.4501(4) shall govern the election.
 2950         2. If the employee chooses to move to the pension plan
 2951  defined benefit program of the Florida Retirement System, the
 2952  employee shall receive service credit equal to his or her years
 2953  of service under the State University System Optional Retirement
 2954  Program.
 2955         a. The cost for such credit must be in shall be an amount
 2956  representing the actuarial accrued liability for the affected
 2957  period of service. The cost must shall be calculated using the
 2958  discount rate and other relevant actuarial assumptions that were
 2959  used to value the Florida Retirement System Pension defined
 2960  benefit Plan liabilities in the most recent actuarial valuation.
 2961  The calculation must shall include any service already
 2962  maintained under the pension defined benefit plan in addition to
 2963  the years under the State University System Optional Retirement
 2964  Program. The actuarial accrued liability of any service already
 2965  maintained under the pension defined benefit plan must shall be
 2966  applied as a credit to total cost resulting from the
 2967  calculation. The division must shall ensure that the transfer
 2968  sum is prepared using a formula and methodology certified by an
 2969  enrolled actuary.
 2970         b. The employee must transfer from his or her State
 2971  University System Optional Retirement Program account, and from
 2972  other employee moneys as necessary, a sum representing the
 2973  actuarial accrued liability immediately following the time of
 2974  such movement, determined assuming that attained service equals
 2975  the sum of service in the pension plan defined benefit program
 2976  and service in the State University System Optional Retirement
 2977  Program.
 2978         (4) CONTRIBUTIONS.—
 2979         (a)1. Through June 30, 2001, each employer shall contribute
 2980  on behalf of each member of participant in the optional
 2981  retirement program an amount equal to the normal cost portion of
 2982  the employer retirement contribution which would be required if
 2983  the employee participant were a regular member of the Florida
 2984  Retirement System Pension Plan System defined benefit program,
 2985  plus the portion of the contribution rate required in s.
 2986  112.363(8) that would otherwise be assigned to the Retiree
 2987  Health Insurance Subsidy Trust Fund.
 2988         2. Effective July 1, 2001, through June 30, 2011, each
 2989  employer shall contribute on behalf of each member of
 2990  participant in the optional retirement program an amount equal
 2991  to 10.43 percent of the employee’s participant’s gross monthly
 2992  compensation.
 2993         3. Effective July 1, 2011, each member of the optional
 2994  retirement program shall contribute an amount equal to the
 2995  employee contribution required in s. 121.71(3). The employer
 2996  shall contribute on behalf of each such member an amount equal
 2997  to the difference between 10.43 percent of the employee’s gross
 2998  monthly compensation and the amount equal to the employee’s
 2999  required contribution based on the employee’s gross monthly
 3000  compensation.
 3001         4.The department shall deduct an amount approved by the
 3002  Legislature to provide for the administration of this program.
 3003  The payment of the contributions, including contributions by the
 3004  employee, to the optional program which is required by this
 3005  paragraph for each participant shall be made by the employer to
 3006  the department, which shall forward the contributions to the
 3007  designated company or companies contracting for payment of
 3008  benefits for members of the participant under the program.
 3009  However, such contributions paid on behalf of an employee
 3010  described in paragraph (3)(c) may shall not be forwarded to a
 3011  company and do shall not begin to accrue interest until the
 3012  employee has executed a contract and notified the department.
 3013  The department shall deduct an amount from the contributions to
 3014  provide for the administration of this program.
 3015         (b) Each employer shall contribute on behalf of each member
 3016  of participant in the optional retirement program an amount
 3017  equal to the unfunded actuarial accrued liability portion of the
 3018  employer contribution which would be required for members of the
 3019  Florida Retirement System. This contribution shall be paid to
 3020  the department for transfer to the Florida Retirement System
 3021  Trust Fund.
 3022         (c) An Optional Retirement Program Trust Fund shall be
 3023  established in the State Treasury and administered by the
 3024  department to make payments to the provider companies on behalf
 3025  of the optional retirement program members participants, and to
 3026  transfer the unfunded liability portion of the state optional
 3027  retirement program contributions to the Florida Retirement
 3028  System Trust Fund.
 3029         (d) Contributions required for social security by each
 3030  employer and each employee participant, in the amount required
 3031  for social security coverage as now or hereafter may be provided
 3032  by the federal Social Security Act, shall be maintained for each
 3033  member of participant in the optional retirement program and are
 3034  shall be in addition to the retirement contributions specified
 3035  in this subsection.
 3036         (e) Each member of participant in the optional retirement
 3037  program who has executed a contract may contribute by way of
 3038  salary reduction or deduction a percentage amount of the
 3039  employee’s participant’s gross compensation not to exceed the
 3040  percentage amount contributed by the employer to the optional
 3041  program, but in no case may such contribution may not exceed
 3042  federal limitations. Payment of the employee’s participant’s
 3043  contributions shall be made by the financial officer of the
 3044  employer to the division which shall forward the contributions
 3045  to the designated company or companies contracting for payment
 3046  of benefits for members of the participant under the program. A
 3047  member participant may not make, through salary reduction, any
 3048  voluntary employee contributions to any other plan under s.
 3049  403(b) of the Internal Revenue Code, with the exception of a
 3050  custodial account under s. 403(b)(7) of the Internal Revenue
 3051  Code, until he or she has made an employee contribution to his
 3052  or her optional program equal to the employer contribution. An
 3053  employee A participant is responsible for monitoring his or her
 3054  individual tax-deferred income to ensure he or she does not
 3055  exceed the maximum deferral amounts permitted under the Internal
 3056  Revenue Code.
 3057         (f) The Optional Retirement Trust Fund may accept for
 3058  deposit into member participant contracts contributions in the
 3059  form of rollovers or direct trustee-to-trustee transfers by or
 3060  on behalf of members participants who are reasonably determined
 3061  by the department to be eligible for rollover or transfer to the
 3062  optional retirement program pursuant to the Internal Revenue
 3063  Code, if such contributions are made in accordance with rules
 3064  adopted by the department. Such contributions shall be accounted
 3065  for in accordance with any applicable requirements of the
 3066  Internal Revenue Code and department rules of the department.
 3067         (g) Effective July 1, 2008, for purposes of paragraph (a)
 3068  and notwithstanding s. 121.021(22)(b)1., the term “employee’s
 3069  participant’s gross monthly compensation” includes salary
 3070  payments made to eligible clinical faculty from a state
 3071  university using funds provided by a faculty practice plan
 3072  authorized by the Board of Governors of the State University
 3073  System if:
 3074         1. There is no not any employer contribution from the state
 3075  university to any other retirement program with respect to such
 3076  salary payments; and
 3077         2. The employer contribution on behalf of a member of the
 3078  participant in the optional retirement program with respect to
 3079  such salary payments is made using funds provided by the faculty
 3080  practice plan.
 3081         (5) BENEFITS.—
 3082         (a) Benefits are payable under the optional retirement
 3083  program only to vested members participating participants in the
 3084  program, or their beneficiaries as designated by the member
 3085  participant in the contract with a provider company, and such
 3086  benefits shall be paid only by the designated company in
 3087  accordance with s. 403(b) of the Internal Revenue Code and the
 3088  terms of the annuity contract or contracts applicable to the
 3089  member participant. Benefits accrue in individual accounts that
 3090  are member-directed participant-directed, portable, and funded
 3091  by employer and employee contributions and the earnings thereon.
 3092  The member participant must be terminated for 3 calendar months
 3093  from all employment relationships with all Florida Retirement
 3094  System employers, as provided in s. 121.021(39), to begin
 3095  receiving the employer-funded benefit. Benefits funded by
 3096  employer and employee contributions are payable in accordance
 3097  with the following terms and conditions:
 3098         1. Benefits shall be paid only to a participating member
 3099  participant, to his or her beneficiaries, or to his or her
 3100  estate, as designated by the member participant.
 3101         2. Benefits shall be paid by the provider company or
 3102  companies in accordance with the law, the provisions of the
 3103  contract, and any applicable department rule or policy.
 3104         3. In the event of a member’s participant’s death, moneys
 3105  accumulated by, or on behalf of, the member participant, less
 3106  withholding taxes remitted to the Internal Revenue Service, if
 3107  any, shall be distributed to the member’s participant’s
 3108  designated beneficiary or beneficiaries, or to the member’s
 3109  participant’s estate, as if the member participant retired on
 3110  the date of death, as provided in paragraph (d) (c). No other
 3111  death benefits are available to survivors of members
 3112  participants under the optional retirement program except for
 3113  such benefits, or coverage for such benefits, as are separately
 3114  afforded by the employer, at the employer’s discretion.
 3115         (b) Benefits, including employee contributions, are not
 3116  payable for employee hardships, unforeseeable emergencies,
 3117  loans, medical expenses, educational expenses, purchase of a
 3118  principal residence, payments necessary to prevent eviction or
 3119  foreclosure on an employee’s principal residence, or any other
 3120  reason before termination from all employment relationships with
 3121  participating employers for 3 calendar months.
 3122         (c)(b) Upon receipt by the provider company of a properly
 3123  executed application for distribution of benefits, the total
 3124  accumulated benefit is shall be payable to the participating
 3125  member participant, as:
 3126         1. A lump-sum distribution to the member participant;
 3127         2. A lump-sum direct rollover distribution whereby all
 3128  accrued benefits, plus interest and investment earnings, are
 3129  paid from the member’s participant’s account directly to an
 3130  eligible retirement plan, as defined in s. 402(c)(8)(B) of the
 3131  Internal Revenue Code, on behalf of the member participant;
 3132         3. Periodic distributions;
 3133         4. A partial lump-sum payment whereby a portion of the
 3134  accrued benefit is paid to the member participant and the
 3135  remaining amount is transferred to an eligible retirement plan,
 3136  as defined in s. 402(c)(8)(B) of the Internal Revenue Code, on
 3137  behalf of the member participant; or
 3138         5. Such other distribution options as are provided for in
 3139  the member’s participant’s optional retirement program contract.
 3140         (d)(c) Survivor benefits are shall be payable as:
 3141         1. A lump-sum distribution payable to the beneficiaries or
 3142  to the deceased member’s participant’s estate;
 3143         2. An eligible rollover distribution on behalf of the
 3144  surviving spouse of a deceased member participant, whereby all
 3145  accrued benefits, plus interest and investment earnings, are
 3146  paid from the deceased member’s participant’s account directly
 3147  to an eligible retirement plan, as described in s. 402(c)(8)(B)
 3148  of the Internal Revenue Code, on behalf of the surviving spouse;
 3149         3. Such other distribution options as are provided for in
 3150  the member’s participant’s optional retirement program contract;
 3151  or
 3152         4. A partial lump-sum payment whereby a portion of the
 3153  accrued benefit is paid to the deceased member’s participant’s
 3154  surviving spouse or other designated beneficiaries, less
 3155  withholding taxes remitted to the Internal Revenue Service, if
 3156  any, and the remaining amount is transferred directly to an
 3157  eligible retirement plan, as described in s. 402(c)(8)(B) of the
 3158  Internal Revenue Code, on behalf of the surviving spouse. The
 3159  proportions must be specified by the member participant or the
 3160  surviving beneficiary.
 3161  
 3162  This paragraph does not abrogate other applicable provisions of
 3163  state or federal law providing payment of death benefits.
 3164         (e)(d) The benefits payable to any person under the
 3165  optional retirement program, and any contribution accumulated
 3166  under such program, are shall not be subject to assignment,
 3167  execution, or attachment or to any legal process whatsoever.
 3168         (f)(e) A participating member participant who chooses to
 3169  receive his or her benefits must be terminated for 3 calendar
 3170  months to be eligible to receive benefits funded by employer and
 3171  employee contributions. The member upon termination as defined
 3172  in s. 121.021 must notify the provider company of the date he or
 3173  she wishes benefits funded by required employer and employee
 3174  contributions to begin and must be terminated as defined in s.
 3175  121.021 after the initial benefit payment or distribution is
 3176  received. Benefits may be deferred until the member participant
 3177  chooses to make such application.
 3178         (g)(f) Benefits funded by the participating member’s
 3179  voluntary participant’s personal contributions may be paid out
 3180  at any time and in any form within the limits provided in the
 3181  contract between the member participant and the his or her
 3182  provider company. The member participant shall notify the
 3183  provider company regarding the date and provisions under which
 3184  he or she wants to receive the employee-funded portion of the
 3185  plan.
 3186         (h)(g) For purposes of this section, “retiree” means a
 3187  former participating member participant of the optional
 3188  retirement program who has terminated employment and has taken a
 3189  distribution as provided in this subsection, except for a
 3190  mandatory distribution of a de minimis account authorized by the
 3191  department.
 3192         Section 25. Section 121.355, Florida Statutes, is amended
 3193  to read:
 3194         121.355 Community College Optional Retirement Program and
 3195  State University System Optional Retirement Program member
 3196  transfer.—Effective January 1, 2009, through December 31, 2009,
 3197  an employee who is a former member of participant in the
 3198  Community College Optional Retirement Program or the State
 3199  University System Optional Retirement Program and present
 3200  mandatory member of participant in the Florida Retirement System
 3201  Pension System defined benefit Plan may receive service credit
 3202  equal to his or her years of service under the Community College
 3203  Optional Retirement Program or the State University System
 3204  Optional Retirement Program under the following conditions:
 3205         (1) The cost for such credit must represent shall be an
 3206  amount representing the actuarial accrued liability for the
 3207  affected period of service. The cost shall be calculated using
 3208  the discount rate and other relevant actuarial assumptions that
 3209  were used to value the Florida Retirement System Pension System
 3210  defined benefit Plan liabilities in the most recent actuarial
 3211  valuation. The calculation must shall include any service
 3212  already maintained under the pension defined benefit plan in
 3213  addition to the years under the Community College Optional
 3214  Retirement Program or the State University System Optional
 3215  Retirement Program. The actuarial accrued liability of any
 3216  service already maintained under the pension defined benefit
 3217  plan shall be applied as a credit to total cost resulting from
 3218  the calculation. The division shall ensure that the transfer sum
 3219  is prepared using a formula and methodology certified by an
 3220  enrolled actuary.
 3221         (2) The employee must transfer from his or her Community
 3222  College Optional Retirement Program account or State University
 3223  System Optional Retirement Program account, subject to the terms
 3224  of the applicable optional retirement program contract, and from
 3225  other employee moneys as necessary, a sum representing the
 3226  actuarial accrued liability immediately following the time of
 3227  such movement, determined assuming that attained service equals
 3228  the sum of service in the pension plan defined benefit program
 3229  and service in the Community College Optional Retirement Program
 3230  or State University System Optional Retirement Program.
 3231         (3) The employee may not receive service credit for a
 3232  period of mandatory participation in the State University
 3233  Optional Retirement Program or for a period for which a
 3234  distribution was received from the Community College Optional
 3235  Retirement Program or State University System Optional
 3236  Retirement Program.
 3237         Section 26. Section 121.4501, Florida Statutes, is amended
 3238  to read:
 3239         121.4501 Florida Retirement System Investment Plan Public
 3240  Employee Optional Retirement Program.—
 3241         (1) The Trustees of the State Board of Administration shall
 3242  establish a an optional defined contribution retirement program
 3243  called the “Florida Retirement System Investment Plan” or
 3244  “investment plan” for members of the Florida Retirement System
 3245  under which retirement benefits will be provided for eligible
 3246  employees who elect to participate in the program. The
 3247  retirement benefits to be provided for or on behalf of
 3248  participants in such optional retirement program shall be
 3249  provided through member-directed employee-directed investments,
 3250  in accordance with s. 401(a) of the Internal Revenue Code and
 3251  its related regulations. The employer and employee employers
 3252  shall make contributions contribute, as provided in this section
 3253  and, ss. 121.571, and 121.71, to the Florida Retirement System
 3254  Investment Plan Public Employee Optional Retirement Program
 3255  Trust Fund toward the funding of such optional benefits.
 3256         (2) DEFINITIONS.—As used in this part, the term:
 3257         (a) “Approved provider” or “provider” means a private
 3258  sector company that is selected and approved by the state board
 3259  to offer one or more investment products or services to the
 3260  investment plan optional retirement program. The term includes a
 3261  bundled provider that offers members participants a range of
 3262  individually allocated or unallocated investment products and
 3263  may offer a range of administrative and customer services, which
 3264  may include accounting and administration of individual member
 3265  participant benefits and contributions; individual member
 3266  participant recordkeeping; asset purchase, control, and
 3267  safekeeping; direct execution of the member’s participant’s
 3268  instructions as to asset and contribution allocation;
 3269  calculation of daily net asset values; direct access to member
 3270  participant account information; periodic reporting to members
 3271  participants, at least quarterly, on account balances and
 3272  transactions; guidance, advice, and allocation services directly
 3273  relating to the provider’s own investment options or products,
 3274  but only if the bundled provider complies with the standard of
 3275  care of s. 404(a)(1)(A-B) of the Employee Retirement Income
 3276  Security Act of 1974 (ERISA), and if providing such guidance,
 3277  advice, or allocation services does not constitute a prohibited
 3278  transaction under s. 4975(c)(1) of the Internal Revenue Code or
 3279  s. 406 of ERISA, notwithstanding that such prohibited
 3280  transaction provisions do not apply to the optional retirement
 3281  program; a broad array of distribution options; asset
 3282  allocation; and retirement counseling and education. Private
 3283  sector companies include investment management companies,
 3284  insurance companies, depositories, and mutual fund companies.
 3285         (b) “Average monthly compensation” means one-twelfth of
 3286  average final compensation as defined in s. 121.021.
 3287         (c) “Covered employment” means employment in a regularly
 3288  established position as defined in s. 121.021.
 3289         (d) “Defined benefit program” means the defined benefit
 3290  program of the Florida Retirement System administered under part
 3291  I of this chapter.
 3292         (e) “Division” means the Division of Retirement within the
 3293  department.
 3294         (d)(f) “Electronic means” means by telephone, if the
 3295  required information is received on a recorded line, or through
 3296  Internet access, if the required information is captured online.
 3297         (e)(g) “Eligible employee” means an officer or employee, as
 3298  defined in s. 121.021, who:
 3299         1. Is a member of, or is eligible for membership in, the
 3300  Florida Retirement System, including any renewed member of the
 3301  Florida Retirement System initially enrolled before July 1,
 3302  2010; or
 3303         2. Participates in, or is eligible to participate in, the
 3304  Senior Management Service Optional Annuity Program as
 3305  established under s. 121.055(6), the State Community College
 3306  System Optional Retirement Program as established under s.
 3307  121.051(2)(c), or the State University System Optional
 3308  Retirement Program established under s. 121.35.
 3309  
 3310  The term does not include any member participating in the
 3311  Deferred Retirement Option Program established under s.
 3312  121.091(13), a retiree of a state-administered retirement system
 3313  initially reemployed on or after July 1, 2010, or a mandatory
 3314  participant of the State University System Optional Retirement
 3315  Program established under s. 121.35.
 3316         (f)(h) “Employer” means an employer, as defined in s.
 3317  121.021, of an eligible employee.
 3318         (g)(i)“Florida Retirement System Investment Plan” or
 3319  “investment plan” “Optional retirement program” or “optional
 3320  program” means the defined contribution program Public Employee
 3321  Optional Retirement Program established under this part.
 3322         (h) “Florida Retirement System Pension Plan” or “pension
 3323  plan” means the defined benefit program of the Florida
 3324  Retirement System administered under part I of this chapter.
 3325         (i)(j)“Member” or “employee” “Participant” means an
 3326  eligible employee who enrolls in the investment plan optional
 3327  program as provided in subsection (4), or a terminated Deferred
 3328  Retirement Option Program member participant as described in
 3329  subsection (21), or a beneficiary or alternate payee of a member
 3330  or employee.
 3331         (j) “Member contributions” or “employee contributions”
 3332  means the sum of all amounts deducted from the salary of a
 3333  member by his or her employer in accordance with s. 121.71(3)
 3334  and credited to his or her individual account in the investment
 3335  plan, plus any earnings on such amounts and any contributions
 3336  specified in paragraph (5)(e).
 3337         (k) “Retiree” means a former member participant of the
 3338  investment plan optional retirement program who has terminated
 3339  employment and has taken a distribution of vested employee or
 3340  employer contributions as provided in s. 121.591, except for a
 3341  mandatory distribution of a de minimis account authorized by the
 3342  state board or a minimum required distribution provided by s.
 3343  401(a)(9) of the Internal Revenue Code.
 3344         (l) “Vested” or “vesting” means the guarantee that a member
 3345  participant is eligible to receive a retirement benefit upon
 3346  completion of the required years of service under the investment
 3347  plan optional retirement program.
 3348         (3) ELIGIBILITY; RETIREMENT SERVICE CREDIT; TRANSFER OF
 3349  BENEFITS.—
 3350         (a) Participation in the Public Employee Optional
 3351  Retirement Program is limited to eligible employees.
 3352  Participation in the optional retirement program is in lieu of
 3353  participation in the defined benefit program of the Florida
 3354  Retirement System.
 3355         (a)(b) An eligible employee who is employed in a regularly
 3356  established position by a state employer on June 1, 2002; by a
 3357  district school board employer on September 1, 2002; or by a
 3358  local employer on December 1, 2002, and who is a member of the
 3359  pension plan defined benefit retirement program of the Florida
 3360  Retirement System at the time of his or her election to
 3361  participate in the investment plan Public Employee Optional
 3362  Retirement Program shall retain all retirement service credit
 3363  earned under the pension plan defined benefit retirement program
 3364  of the Florida Retirement System as credited under the system
 3365  and is shall be entitled to a deferred benefit upon termination,
 3366  if eligible under the system. However, election to enroll
 3367  participate in the investment plan Public Employee Optional
 3368  Retirement Program terminates the active membership of the
 3369  employee in the pension plan defined benefit program of the
 3370  Florida Retirement System, and the service of a member
 3371  participant in the investment plan is Public Employee Optional
 3372  Retirement Program shall not be creditable under the pension
 3373  plan defined benefit retirement program of the Florida
 3374  Retirement System for purposes of benefit accrual but is
 3375  creditable shall be credited for purposes of vesting.
 3376         (b)(c)1. Notwithstanding paragraph (a), an (b), each
 3377  eligible employee who elects to participate in the investment
 3378  plan Public Employee Optional Retirement Program and establishes
 3379  one or more individual member participant accounts under the
 3380  optional program may elect to transfer to the investment plan
 3381  optional program a sum representing the present value of the
 3382  employee’s accumulated benefit obligation under the pension plan
 3383  defined benefit retirement program of the Florida Retirement
 3384  System. Upon such transfer, all service credit previously earned
 3385  under the pension plan is defined benefit program of the Florida
 3386  Retirement System shall be nullified for purposes of entitlement
 3387  to a future benefit under the pension plan defined benefit
 3388  program of the Florida Retirement System. A member may not
 3389  transfer participant is precluded from transferring the
 3390  accumulated benefit obligation balance from the pension plan
 3391  after the time defined benefit program upon the expiration of
 3392  the period for enrolling afforded to enroll in the investment
 3393  plan has expired optional program.
 3394         1.2. For purposes of this subsection, the present value of
 3395  the member’s accumulated benefit obligation is based upon the
 3396  member’s estimated creditable service and estimated average
 3397  final compensation under the pension plan defined benefit
 3398  program, subject to recomputation under subparagraph 2. 3. For
 3399  state employees enrolling under subparagraph (4)(a)1., initial
 3400  estimates shall will be based upon creditable service and
 3401  average final compensation as of midnight on June 30, 2002; for
 3402  district school board employees enrolling under subparagraph
 3403  (4)(b)1., initial estimates shall will be based upon creditable
 3404  service and average final compensation as of midnight on
 3405  September 30, 2002; and for local government employees enrolling
 3406  under subparagraph (4)(c)1., initial estimates shall will be
 3407  based upon creditable service and average final compensation as
 3408  of midnight on December 31, 2002. The dates respectively
 3409  specified are above shall be construed as the “estimate date”
 3410  for these employees. The actuarial present value of the
 3411  employee’s accumulated benefit obligation shall be based on the
 3412  following:
 3413         a. The discount rate and other relevant actuarial
 3414  assumptions used to value the Florida Retirement System Trust
 3415  Fund at the time the amount to be transferred is determined,
 3416  consistent with the factors provided in sub-subparagraphs b. and
 3417  c.
 3418         b. A benefit commencement age, based on the member’s
 3419  estimated creditable service as of the estimate date.
 3420         c. Except as provided under sub-subparagraph d., for a
 3421  member initially enrolled:
 3422         (I) Before July 1, 2011, the benefit commencement age is
 3423  shall be the younger of the following, but may shall not be
 3424  younger than the member’s age as of the estimate date:
 3425         (A)(I) Age 62; or
 3426         (B)(II) The age the member would attain if the member
 3427  completed 30 years of service with an employer, assuming the
 3428  member worked continuously from the estimate date, and
 3429  disregarding any vesting requirement that would otherwise apply
 3430  under the pension plan defined benefit program of the Florida
 3431  Retirement System.
 3432         (II) On or after July 1, 2011, the benefit commencement age
 3433  is the younger of the following, but may not be younger than the
 3434  member’s age as of the estimate date:
 3435         (A) Age 65; or
 3436         (B) The age the member would attain if the member completed
 3437  33 years of service with an employer, assuming the member worked
 3438  continuously from the estimate date, and disregarding any
 3439  vesting requirement that would otherwise apply under the pension
 3440  plan.
 3441         d.c. For members of the Special Risk Class and for members
 3442  of the Special Risk Administrative Support Class entitled to
 3443  retain the special risk normal retirement date:
 3444         (I) Initially enrolled before July 1, 2011, the benefit
 3445  commencement age is shall be the younger of the following, but
 3446  may shall not be younger than the member’s age as of the
 3447  estimate date:
 3448         (A)(I) Age 55; or
 3449         (B)(II) The age the member would attain if the member
 3450  completed 25 years of service with an employer, assuming the
 3451  member worked continuously from the estimate date, and
 3452  disregarding any vesting requirement that would otherwise apply
 3453  under the pension plan defined benefit program of the Florida
 3454  Retirement System.
 3455         (II) Initially enrolled on or after July 1, 2011, the
 3456  benefit commencement age is the younger of the following, but
 3457  may not be younger than the member’s age as of the estimate
 3458  date:
 3459         (A) Age 60; or
 3460         (B) The age the member would attain if the member completed
 3461  30 years of service with an employer, assuming the member worked
 3462  continuously from the estimate date, and disregarding any
 3463  vesting requirement that would otherwise apply under the pension
 3464  plan.
 3465         e.d. The calculation must shall disregard vesting
 3466  requirements and early retirement reduction factors that would
 3467  otherwise apply under the pension plan defined benefit
 3468  retirement program.
 3469         2.3. For each member participant who elects to transfer
 3470  moneys from the pension plan defined benefit program to his or
 3471  her account in the investment plan optional program, the
 3472  division shall recompute the amount transferred under
 3473  subparagraph 1. within 2. not later than 60 days after the
 3474  actual transfer of funds based upon the member’s participant’s
 3475  actual creditable service and actual final average compensation
 3476  as of the initial date of participation in the investment plan
 3477  optional program. If the recomputed amount differs from the
 3478  amount transferred under subparagraph 2. by $10 or more, the
 3479  division shall:
 3480         a. Transfer, or cause to be transferred, from the Florida
 3481  Retirement System Trust Fund to the member’s participant’s
 3482  account in the optional program the excess, if any, of the
 3483  recomputed amount over the previously transferred amount
 3484  together with interest from the initial date of transfer to the
 3485  date of transfer under this subparagraph, based upon the
 3486  effective annual interest equal to the assumed return on the
 3487  actuarial investment which was used in the most recent actuarial
 3488  valuation of the system, compounded annually.
 3489         b. Transfer, or cause to be transferred, from the member’s
 3490  participant’s account to the Florida Retirement System Trust
 3491  Fund the excess, if any, of the previously transferred amount
 3492  over the recomputed amount, together with interest from the
 3493  initial date of transfer to the date of transfer under this
 3494  subparagraph, based upon 6 percent effective annual interest,
 3495  compounded annually, pro rata based on the member’s
 3496  participant’s allocation plan.
 3497         3. If contribution adjustments are made as a result of
 3498  employer errors or corrections, including plan corrections,
 3499  following recomputation of the amount transferred under
 3500  subparagraph 1., the member is entitled to the additional
 3501  contributions or is responsible for returning any excess
 3502  contributions resulting from the correction. However, any return
 3503  of such erroneous excess pretax contribution by the plan must be
 3504  made within the period allowed by the Internal Revenue Service.
 3505  The present value of the member’s accumulated benefit obligation
 3506  shall not be recalculated.
 3507         4. As directed by the member participant, the state board
 3508  shall transfer or cause to be transferred the appropriate
 3509  amounts to the designated accounts within. The board shall
 3510  establish transfer procedures by rule, but the actual transfer
 3511  shall not be later than 30 days after the effective date of the
 3512  member’s participation in the investment plan optional program
 3513  unless the major financial markets for securities available for
 3514  a transfer are seriously disrupted by an unforeseen event that
 3515  which also causes the suspension of trading on any national
 3516  securities exchange in the country where the securities were
 3517  issued. In that event, the such 30-day period of time may be
 3518  extended by a resolution of the state board trustees. Transfers
 3519  are not commissionable or subject to other fees and may be in
 3520  the form of securities or cash, as determined by the state
 3521  board. Such securities are shall be valued as of the date of
 3522  receipt in the member’s participant’s account.
 3523         5. If the state board or the division receives notification
 3524  from the United States Internal Revenue Service that this
 3525  paragraph or any portion of this paragraph will cause the
 3526  retirement system, or a portion thereof, to be disqualified for
 3527  tax purposes under the Internal Revenue Code, then the portion
 3528  that will cause the disqualification does not apply. Upon such
 3529  notice, the state board and the division shall notify the
 3530  presiding officers of the Legislature.
 3531         (4) PARTICIPATION; ENROLLMENT.—
 3532         (a)1. With respect to an eligible employee who is employed
 3533  in a regularly established position on June 1, 2002, by a state
 3534  employer:
 3535         a. Any such employee may elect to participate in the
 3536  investment plan Public Employee Optional Retirement Program in
 3537  lieu of retaining his or her membership in the pension plan
 3538  defined benefit program of the Florida Retirement System. The
 3539  election must be made in writing or by electronic means and must
 3540  be filed with the third-party administrator by August 31, 2002,
 3541  or, in the case of an active employee who is on a leave of
 3542  absence on April 1, 2002, by the last business day of the 5th
 3543  month following the month the leave of absence concludes. This
 3544  election is irrevocable, except as provided in paragraph (g)
 3545  (e). Upon making such election, the employee shall be enrolled
 3546  as a member participant of the investment plan Public Employee
 3547  Optional Retirement Program, the employee’s membership in the
 3548  Florida Retirement System is shall be governed by the provisions
 3549  of this part, and the employee’s membership in the pension plan
 3550  terminates defined benefit program of the Florida Retirement
 3551  System shall terminate. The employee’s enrollment in the
 3552  investment plan is Public Employee Optional Retirement Program
 3553  shall be effective the first day of the month for which a full
 3554  month’s employer contribution is made to the investment plan
 3555  optional program.
 3556         b. Any such employee who fails to elect to participate in
 3557  the investment plan Public Employee Optional Retirement Program
 3558  within the prescribed time period is deemed to have elected to
 3559  retain membership in the pension plan defined benefit program of
 3560  the Florida Retirement System, and the employee’s option to
 3561  elect to participate in the investment plan optional program is
 3562  forfeited.
 3563         2. With respect to employees who become eligible to
 3564  participate in the investment plan Public Employee Optional
 3565  Retirement Program by reason of employment in a regularly
 3566  established position with a state employer commencing after
 3567  April 1, 2002:
 3568         a. Any such employee shall, by default, be enrolled in the
 3569  pension plan defined benefit retirement program of the Florida
 3570  Retirement System at the commencement of employment, and may, by
 3571  the last business day of the 5th month following the employee’s
 3572  month of hire, elect to participate in the investment plan
 3573  Public Employee Optional Retirement Program. The employee’s
 3574  election must be made in writing or by electronic means and must
 3575  be filed with the third-party administrator. The election to
 3576  participate in the investment plan optional program is
 3577  irrevocable, except as provided in paragraph (g) (e).
 3578         b. If the employee files such election within the
 3579  prescribed time period, enrollment in the investment plan is
 3580  optional program shall be effective on the first day of
 3581  employment. The employer retirement contributions paid through
 3582  the month of the employee plan change shall be transferred to
 3583  the investment optional program, and, effective the first day of
 3584  the next month, the employer and employee must shall pay the
 3585  applicable contributions based on the employee membership class
 3586  in the optional program.
 3587         c. An Any such employee who fails to elect to participate
 3588  in the investment plan Public Employee Optional Retirement
 3589  Program within the prescribed time period is deemed to have
 3590  elected to retain membership in the pension plan defined benefit
 3591  program of the Florida Retirement System, and the employee’s
 3592  option to elect to participate in the investment plan optional
 3593  program is forfeited.
 3594         3. With respect to employees who become eligible to
 3595  participate in the investment plan Public Employee Optional
 3596  Retirement Program pursuant to s. 121.051(2)(c)3. or s.
 3597  121.35(3)(i), the any such employee may elect to participate in
 3598  the investment plan Public Employee Optional Retirement Program
 3599  in lieu of retaining his or her membership participation in the
 3600  State Community College System Optional Retirement Program or
 3601  the State University System Optional Retirement Program. The
 3602  election must be made in writing or by electronic means and must
 3603  be filed with the third-party administrator. This election is
 3604  irrevocable, except as provided in paragraph (g) (e). Upon
 3605  making such election, the employee shall be enrolled as a member
 3606  in participant of the investment plan Public Employee Optional
 3607  Retirement Program, the employee’s membership in the Florida
 3608  Retirement System is shall be governed by the provisions of this
 3609  part, and the employee’s participation in the State Community
 3610  College System Optional Retirement Program or the State
 3611  University System Optional Retirement Program terminates shall
 3612  terminate. The employee’s enrollment in the investment plan is
 3613  Public Employee Optional Retirement Program shall be effective
 3614  on the first day of the month for which a full month’s employer
 3615  and employee contribution is made to the investment plan
 3616  optional program.
 3617         4. For purposes of this paragraph, “state employer” means
 3618  any agency, board, branch, commission, community college,
 3619  department, institution, institution of higher education, or
 3620  water management district of the state, which participates in
 3621  the Florida Retirement System for the benefit of certain
 3622  employees.
 3623         (b)1. With respect to an eligible employee who is employed
 3624  in a regularly established position on September 1, 2002, by a
 3625  district school board employer:
 3626         a. Any such employee may elect to participate in the
 3627  investment plan Public Employee Optional Retirement Program in
 3628  lieu of retaining his or her membership in the pension plan
 3629  defined benefit program of the Florida Retirement System. The
 3630  election must be made in writing or by electronic means and must
 3631  be filed with the third-party administrator by November 30, or,
 3632  in the case of an active employee who is on a leave of absence
 3633  on July 1, 2002, by the last business day of the 5th month
 3634  following the month the leave of absence concludes. This
 3635  election is irrevocable, except as provided in paragraph (g)
 3636  (e). Upon making such election, the employee shall be enrolled
 3637  as a member participant of the investment plan Public Employee
 3638  Optional Retirement Program, the employee’s membership in the
 3639  Florida Retirement System is shall be governed by the provisions
 3640  of this part, and the employee’s membership in the pension plan
 3641  terminates defined benefit program of the Florida Retirement
 3642  System shall terminate. The employee’s enrollment in the
 3643  investment plan is Public Employee Optional Retirement Program
 3644  shall be effective the first day of the month for which a full
 3645  month’s employer contribution is made to the investment optional
 3646  program.
 3647         b. Any such employee who fails to elect to participate in
 3648  the investment plan Public Employee Optional Retirement Program
 3649  within the prescribed time period is deemed to have elected to
 3650  retain membership in the pension plan defined benefit program of
 3651  the Florida Retirement System, and the employee’s option to
 3652  elect to participate in the investment plan optional program is
 3653  forfeited.
 3654         2. With respect to employees who become eligible to
 3655  participate in the investment plan Public Employee Optional
 3656  Retirement Program by reason of employment in a regularly
 3657  established position with a district school board employer
 3658  commencing after July 1, 2002:
 3659         a. Any such employee shall, by default, be enrolled in the
 3660  pension plan defined benefit retirement program of the Florida
 3661  Retirement System at the commencement of employment, and may, by
 3662  the last business day of the 5th month following the employee’s
 3663  month of hire, elect to participate in the investment plan
 3664  Public Employee Optional Retirement Program. The employee’s
 3665  election must be made in writing or by electronic means and must
 3666  be filed with the third-party administrator. The election to
 3667  participate in the investment plan optional program is
 3668  irrevocable, except as provided in paragraph (g) (e).
 3669         b. If the employee files such election within the
 3670  prescribed time period, enrollment in the investment plan is
 3671  optional program shall be effective on the first day of
 3672  employment. The employer retirement contributions paid through
 3673  the month of the employee plan change shall be transferred to
 3674  the investment plan optional program, and, effective the first
 3675  day of the next month, the employer shall pay the applicable
 3676  contributions based on the employee membership class in the
 3677  investment plan optional program.
 3678         c. Any such employee who fails to elect to participate in
 3679  the investment plan Public Employee Optional Retirement Program
 3680  within the prescribed time period is deemed to have elected to
 3681  retain membership in the pension plan defined benefit program of
 3682  the Florida Retirement System, and the employee’s option to
 3683  elect to participate in the investment plan optional program is
 3684  forfeited.
 3685         3. For purposes of this paragraph, “district school board
 3686  employer” means any district school board that participates in
 3687  the Florida Retirement System for the benefit of certain
 3688  employees, or a charter school or charter technical career
 3689  center that participates in the Florida Retirement System as
 3690  provided in s. 121.051(2)(d).
 3691         (c)1. With respect to an eligible employee who is employed
 3692  in a regularly established position on December 1, 2002, by a
 3693  local employer:
 3694         a. Any such employee may elect to participate in the
 3695  investment plan Public Employee Optional Retirement Program in
 3696  lieu of retaining his or her membership in the pension plan
 3697  defined benefit program of the Florida Retirement System. The
 3698  election must be made in writing or by electronic means and must
 3699  be filed with the third-party administrator by February 28,
 3700  2003, or, in the case of an active employee who is on a leave of
 3701  absence on October 1, 2002, by the last business day of the 5th
 3702  month following the month the leave of absence concludes. This
 3703  election is irrevocable, except as provided in paragraph (g)
 3704  (e). Upon making such election, the employee shall be enrolled
 3705  as a participant of the investment plan Public Employee Optional
 3706  Retirement Program, the employee’s membership in the Florida
 3707  Retirement System is shall be governed by the provisions of this
 3708  part, and the employee’s membership in the pension plan
 3709  terminates defined benefit program of the Florida Retirement
 3710  System shall terminate. The employee’s enrollment in the
 3711  investment plan is Public Employee Optional Retirement Program
 3712  shall be effective the first day of the month for which a full
 3713  month’s employer contribution is made to the investment plan
 3714  optional program.
 3715         b. Any such employee who fails to elect to participate in
 3716  the investment plan Public Employee Optional Retirement Program
 3717  within the prescribed time period is deemed to have elected to
 3718  retain membership in the pension plan defined benefit program of
 3719  the Florida Retirement System, and the employee’s option to
 3720  elect to participate in the investment plan optional program is
 3721  forfeited.
 3722         2. With respect to employees who become eligible to
 3723  participate in the investment plan Public Employee Optional
 3724  Retirement Program by reason of employment in a regularly
 3725  established position with a local employer commencing after
 3726  October 1, 2002:
 3727         a. Any such employee shall, by default, be enrolled in the
 3728  pension plan defined benefit retirement program of the Florida
 3729  Retirement System at the commencement of employment, and may, by
 3730  the last business day of the 5th month following the employee’s
 3731  month of hire, elect to participate in the investment plan
 3732  Public Employee Optional Retirement Program. The employee’s
 3733  election must be made in writing or by electronic means and must
 3734  be filed with the third-party administrator. The election to
 3735  participate in the investment plan optional program is
 3736  irrevocable, except as provided in paragraph (g) (e).
 3737         b. If the employee files such election within the
 3738  prescribed time period, enrollment in the investment plan is
 3739  optional program shall be effective on the first day of
 3740  employment. The employer retirement contributions paid through
 3741  the month of the employee plan change shall be transferred to
 3742  the investment plan optional program, and, effective the first
 3743  day of the next month, the employer shall pay the applicable
 3744  contributions based on the employee membership class in the
 3745  investment plan optional program.
 3746         c. Any such employee who fails to elect to participate in
 3747  the investment plan Public Employee Optional Retirement Program
 3748  within the prescribed time period is deemed to have elected to
 3749  retain membership in the pension plan defined benefit program of
 3750  the Florida Retirement System, and the employee’s option to
 3751  elect to participate in the investment plan optional program is
 3752  forfeited.
 3753         3. For purposes of this paragraph, “local employer” means
 3754  any employer not included in paragraph (a) or paragraph (b).
 3755         (d) Contributions available for self-direction by a member
 3756  participant who has not selected one or more specific investment
 3757  products shall be allocated as prescribed by the state board.
 3758  The third-party administrator shall notify the member any such
 3759  participant at least quarterly that the member participant
 3760  should take an affirmative action to make an asset allocation
 3761  among the investment optional program products.
 3762         (e) On or after July 1, 2011, a member of the pension plan
 3763  who obtains a refund of employee contributions retains his or
 3764  her prior plan choice upon return to employment in a regularly
 3765  established position with a participating employer.
 3766         (f) A member of the investment plan who takes a
 3767  distribution of any contributions from his or her investment
 3768  plan account is considered a retiree. A retiree who is initially
 3769  reemployed on or after July 1, 2010, is not eligible for renewed
 3770  membership.
 3771         (g)(e) After the period during which an eligible employee
 3772  had the choice to elect the pension plan defined benefit program
 3773  or the investment plan optional retirement program, or the month
 3774  following the receipt of the eligible employee’s plan election,
 3775  if sooner, the employee shall have one opportunity, at the
 3776  employee’s discretion, to choose to move from the pension plan
 3777  defined benefit program to the investment plan optional
 3778  retirement program or from the investment plan optional
 3779  retirement program to the pension plan defined benefit program.
 3780  Eligible employees may elect to move between plans Florida
 3781  Retirement System programs only if they are earning service
 3782  credit in an employer-employee relationship consistent with s.
 3783  121.021(17)(b), excluding leaves of absence without pay.
 3784  Effective July 1, 2005, such elections are effective on the
 3785  first day of the month following the receipt of the election by
 3786  the third-party administrator and are not subject to the
 3787  requirements regarding an employer-employee relationship or
 3788  receipt of contributions for the eligible employee in the
 3789  effective month, except when the election is received by the
 3790  third-party administrator. This paragraph is contingent upon
 3791  approval by from the Internal Revenue Service for including the
 3792  choice described herein within the programs offered by the
 3793  Florida Retirement System.
 3794         1. If the employee chooses to move to the investment plan
 3795  optional retirement program, the applicable provisions of
 3796  subsection (3) this section shall govern the transfer.
 3797         2. If the employee chooses to move to the pension plan
 3798  defined benefit program, the employee must transfer from his or
 3799  her investment plan optional retirement program account, and
 3800  from other employee moneys as necessary, a sum representing the
 3801  present value of that employee’s accumulated benefit obligation
 3802  immediately following the time of such movement, determined
 3803  assuming that attained service equals the sum of service in the
 3804  pension plan defined benefit program and service in the
 3805  investment plan optional retirement program. Benefit
 3806  commencement occurs on the first date the employee is eligible
 3807  for unreduced benefits, using the discount rate and other
 3808  relevant actuarial assumptions that were used to value the
 3809  pension defined benefit plan liabilities in the most recent
 3810  actuarial valuation. For any employee who, at the time of the
 3811  second election, already maintains an accrued benefit amount in
 3812  the pension plan defined benefit program, the then-present value
 3813  of the accrued benefit is shall be deemed part of the required
 3814  transfer amount. The division must shall ensure that the
 3815  transfer sum is prepared using a formula and methodology
 3816  certified by an enrolled actuary. A refund of any employee
 3817  contributions or additional member payments made which exceed
 3818  the employee contributions that would have accrued had the
 3819  member remained in the pension plan and not transferred to the
 3820  investment plan is not permitted.
 3821         3. Notwithstanding subparagraph 2., an employee who chooses
 3822  to move to the pension plan defined benefit program and who
 3823  became eligible to participate in the investment plan optional
 3824  retirement program by reason of employment in a regularly
 3825  established position with a state employer after June 1, 2002; a
 3826  district school board employer after September 1, 2002; or a
 3827  local employer after December 1, 2002, must transfer from his or
 3828  her investment plan optional retirement program account, and
 3829  from other employee moneys as necessary, a sum representing the
 3830  employee’s actuarial accrued liability. A refund of any employee
 3831  contributions or additional participant payments made which
 3832  exceed the employee contributions that would have accrued had
 3833  the member remained in the pension plan and not transferred to
 3834  the investment plan is not permitted.
 3835         4. An employee’s ability to transfer from the pension plan
 3836  defined benefit program to the investment plan optional
 3837  retirement program pursuant to paragraphs (a)-(d), and the
 3838  ability of a current employee to have an option to later
 3839  transfer back into the pension plan defined benefit program
 3840  under subparagraph 2., shall be deemed a significant system
 3841  amendment. Pursuant to s. 121.031(4), any resulting unfunded
 3842  liability arising from actual original transfers from the
 3843  pension plan defined benefit program to the investment plan
 3844  optional program must be amortized within 30 plan years as a
 3845  separate unfunded actuarial base independent of the reserve
 3846  stabilization mechanism defined in s. 121.031(3)(f). For the
 3847  first 25 years, a direct amortization payment may not be
 3848  calculated for this base. During this 25-year period, the
 3849  separate base shall be used to offset the impact of employees
 3850  exercising their second program election under this paragraph.
 3851  It is the intent of the Legislature that The actuarial funded
 3852  status of the pension plan will defined benefit program not be
 3853  affected by such second program elections in any significant
 3854  manner, after due recognition of the separate unfunded actuarial
 3855  base. Following the initial 25-year period, any remaining
 3856  balance of the original separate base shall be amortized over
 3857  the remaining 5 years of the required 30-year amortization
 3858  period.
 3859         5. If the employee chooses to transfer from the investment
 3860  plan optional retirement program to the pension plan defined
 3861  benefit program and retains an excess account balance in the
 3862  investment plan optional program after satisfying the buy-in
 3863  requirements under this paragraph, the excess may not be
 3864  distributed until the member retires from the pension plan
 3865  defined benefit program. The excess account balance may be
 3866  rolled over to the pension plan defined benefit program and used
 3867  to purchase service credit or upgrade creditable service in the
 3868  pension plan that program.
 3869         (5) CONTRIBUTIONS.—
 3870         (a) The employee and Each employer shall make the required
 3871  contributions to contribute on behalf of each participant in the
 3872  investment plan based on a percentage of the employee’s gross
 3873  monthly compensation Public Employee Optional Retirement
 3874  Program, as provided in part III of this chapter.
 3875         (b) Employee contributions shall be paid as provided in s.
 3876  121.71.
 3877         (c) The state board, acting as plan fiduciary, must shall
 3878  ensure that all plan assets are held in a trust, pursuant to s.
 3879  401 of the Internal Revenue Code. The fiduciary must shall
 3880  ensure that such said contributions are allocated as follows:
 3881         1. The employer and employee contribution portion earmarked
 3882  for member participant accounts shall be used to purchase
 3883  interests in the appropriate investment vehicles for the
 3884  accounts of each participant as specified by the member
 3885  participant, or in accordance with paragraph (4)(d).
 3886         2. The employer contribution portion earmarked for
 3887  administrative and educational expenses shall be transferred to
 3888  the Florida Retirement System Investment Plan Trust Fund board.
 3889         3. The employer contribution portion earmarked for
 3890  disability benefits shall be transferred to the Florida
 3891  Retirement System Trust Fund department.
 3892         (d)(b)The third-party administrator is Employers are
 3893  responsible for monitoring and notifying employers of the
 3894  participants regarding maximum contribution levels allowed for
 3895  members permitted under the Internal Revenue Code. If a member
 3896  participant contributes to any other tax-deferred plan, the
 3897  member he or she is responsible for ensuring that total
 3898  contributions made to the investment plan optional program and
 3899  to any other such plan do not exceed federally permitted
 3900  maximums.
 3901         (e)(c) The investment plan Public Employee Optional
 3902  Retirement Program may accept for deposit into member
 3903  participant accounts contributions in the form of rollovers or
 3904  direct trustee-to-trustee transfers by or on behalf of members
 3905  participants, reasonably determined by the state board to be
 3906  eligible for rollover or transfer to the investment plan
 3907  optional retirement program pursuant to the Internal Revenue
 3908  Code, if such contributions are made in accordance with rules as
 3909  may be adopted by the board. Such contributions must shall be
 3910  accounted for in accordance with any applicable Internal Revenue
 3911  Code requirements and rules of the state board.
 3912         (6) VESTING REQUIREMENTS.—
 3913         (a) A member is fully and immediately vested in all
 3914  employee contributions paid to the investment plan as provided
 3915  in s. 121.71, plus interest and earnings thereon and less
 3916  investment fees and administrative charges.
 3917         (b)(a)1. With respect to employer contributions paid on
 3918  behalf of the member participant to the investment plan optional
 3919  retirement program, plus interest and earnings thereon and less
 3920  investment fees and administrative charges, a member participant
 3921  is vested after completing 1 work year with an employer,
 3922  including any service while the member participant was a member
 3923  of the pension plan defined benefit program or an optional
 3924  retirement program authorized under s. 121.051(2)(c) or s.
 3925  121.055(6).
 3926         2. If the member participant terminates employment before
 3927  satisfying the vesting requirements, the nonvested accumulation
 3928  must be transferred from the member’s participant’s accounts to
 3929  the state board for deposit and investment by the state board in
 3930  its the suspense account created within the Florida Retirement
 3931  System Investment Plan Public Employee Optional Retirement
 3932  Program Trust Fund. If the terminated member participant is
 3933  reemployed as an eligible employee within 5 years, the state
 3934  board shall transfer to the member’s participant’s account any
 3935  amount previously transferred from the member’s participant’s
 3936  accounts to the suspense account, plus actual earnings on such
 3937  amount while in the suspense account.
 3938         (c)(b)1. With respect to amounts contributed by an employer
 3939  and transferred from the pension plan defined benefit program to
 3940  the investment plan program, plus interest and earnings, and
 3941  less investment fees and administrative charges, a member
 3942  participant shall be vested in the amount transferred upon
 3943  meeting the vesting service requirements for the member’s
 3944  participant’s membership class as set forth in s. 121.021(45)
 3945  121.021(29). The third-party administrator shall account for
 3946  such amounts for each member participant. The division shall
 3947  notify the member participant and the third-party administrator
 3948  when the member participant has satisfied the vesting period for
 3949  Florida Retirement System purposes.
 3950         2. If the member participant terminates employment before
 3951  satisfying the vesting requirements, the nonvested accumulation
 3952  must be transferred from the member’s participant’s accounts to
 3953  the state board for deposit and investment by the state board in
 3954  the suspense account created within the Florida Retirement
 3955  System Investment Plan Public Employee Optional Retirement
 3956  Program Trust Fund. If the terminated member participant is
 3957  reemployed as an eligible employee within 5 years, the state
 3958  board shall transfer to the member’s accounts participant’s
 3959  account any amount previously transferred from the member’s
 3960  participant’s accounts to the suspense account, plus the actual
 3961  earnings on such amount while in the suspense account.
 3962         (d)(c) Any nonvested accumulations transferred from a
 3963  member’s participant’s account to the state board’s suspense
 3964  account shall be forfeited, including accompanying service
 3965  credit, by the member participant if the member participant is
 3966  not reemployed as an eligible employee within 5 years after
 3967  termination.
 3968         (e) If the member elects to receive any of his or her
 3969  vested employee or employer contributions upon termination of
 3970  employment as provided in s. 121.021(39)(a), except for a
 3971  mandatory distribution of a de minimis account authorized by the
 3972  state board or a minimum required distribution provided by s.
 3973  401(a)(9) of the Internal Revenue Code, the member shall forfeit
 3974  all nonvested employer contributions, and accompanying service
 3975  credit, paid on behalf of the member to the investment plan.
 3976         (7) BENEFITS.—Under the investment plan, benefits must
 3977  Public Employee Optional Retirement Program:
 3978         (a) Benefits shall Be provided in accordance with s. 401(a)
 3979  of the Internal Revenue Code.
 3980         (b) Benefits shall Accrue in individual accounts that are
 3981  member-directed participant-directed, portable, and funded by
 3982  employer and employee contributions and earnings thereon.
 3983         (c) Benefits shall Be payable in accordance with the
 3984  provisions of s. 121.591.
 3985         (8) INVESTMENT PLAN ADMINISTRATION OF PROGRAM.—
 3986         (a) The investment plan optional retirement program shall
 3987  be administered by the state board and affected employers. The
 3988  state board may require oaths, by affidavit or otherwise, and
 3989  acknowledgments from persons in connection with the
 3990  administration of its statutory duties and responsibilities for
 3991  the investment plan this program. An oath, by affidavit or
 3992  otherwise, may not be required of a member an employee
 3993  participant at the time of enrollment. Acknowledgment of an
 3994  employee’s election to participate in the program shall be no
 3995  greater than necessary to confirm the employee’s election. The
 3996  state board shall adopt rules to carry out its statutory duties
 3997  with respect to administering the investment plan optional
 3998  retirement program, including establishing the roles and
 3999  responsibilities of affected state, local government, and
 4000  education-related employers, the state board, the department,
 4001  and third-party contractors. The department shall adopt rules
 4002  necessary to administer the investment plan optional program in
 4003  coordination with the pension plan defined benefit program and
 4004  the disability benefits available under the investment plan
 4005  optional program.
 4006         (a)(b)1. The state board shall select and contract with a
 4007  one third-party administrator to provide administrative services
 4008  if those services cannot be competitively and contractually
 4009  provided by the division of Retirement within the Department of
 4010  Management Services. With the approval of the state board, the
 4011  third-party administrator may subcontract with other
 4012  organizations or individuals to provide components of the
 4013  administrative services. As a cost of administration, the state
 4014  board may compensate any such contractor for its services, in
 4015  accordance with the terms of the contract, as is deemed
 4016  necessary or proper by the board. The third-party administrator
 4017  may not be an approved provider or be affiliated with an
 4018  approved provider.
 4019         2. These administrative services may include, but are not
 4020  limited to, enrollment of eligible employees, collection of
 4021  employer and employee contributions, disbursement of such
 4022  contributions to approved providers in accordance with the
 4023  allocation directions of members participants; services relating
 4024  to consolidated billing; individual and collective recordkeeping
 4025  and accounting; asset purchase, control, and safekeeping; and
 4026  direct disbursement of funds to and from the third-party
 4027  administrator, the division, the state board, employers, members
 4028  participants, approved providers, and beneficiaries. This
 4029  section does not prevent or prohibit a bundled provider from
 4030  providing any administrative or customer service, including
 4031  accounting and administration of individual member participant
 4032  benefits and contributions; individual member participant
 4033  recordkeeping; asset purchase, control, and safekeeping; direct
 4034  execution of the member’s participant’s instructions as to asset
 4035  and contribution allocation; calculation of daily net asset
 4036  values; direct access to member participant account information;
 4037  or periodic reporting to members participants, at least
 4038  quarterly, on account balances and transactions, if these
 4039  services are authorized by the state board as part of the
 4040  contract.
 4041         (b)1.3. The state board shall select and contract with one
 4042  or more organizations to provide educational services. With
 4043  approval of the state board, the organizations may subcontract
 4044  with other organizations or individuals to provide components of
 4045  the educational services. As a cost of administration, the state
 4046  board may compensate any such contractor for its services in
 4047  accordance with the terms of the contract, as is deemed
 4048  necessary or proper by the board. The education organization may
 4049  not be an approved provider or be affiliated with an approved
 4050  provider.
 4051         2.4. Educational services shall be designed by the state
 4052  board and department to assist employers, eligible employees,
 4053  members participants, and beneficiaries in order to maintain
 4054  compliance with United States Department of Labor regulations
 4055  under s. 404(c) of the Employee Retirement Income Security Act
 4056  of 1974 and to assist employees in their choice of pension plan
 4057  defined benefit or investment plan defined contribution
 4058  retirement alternatives. Educational services include, but are
 4059  not limited to, disseminating educational materials; providing
 4060  retirement planning education; explaining the pension
 4061  differences between the defined benefit retirement plan and the
 4062  investment defined contribution retirement plan; and offering
 4063  financial planning guidance on matters such as investment
 4064  diversification, investment risks, investment costs, and asset
 4065  allocation. An approved provider may also provide educational
 4066  information, including retirement planning and investment
 4067  allocation information concerning its products and services.
 4068         (c)1. In evaluating and selecting a third-party
 4069  administrator, the state board shall establish criteria for
 4070  evaluating under which it shall consider the relative
 4071  capabilities and qualifications of each proposed administrator.
 4072  In developing such criteria, the state board shall consider:
 4073         a. The administrator’s demonstrated experience in providing
 4074  administrative services to public or private sector retirement
 4075  systems.
 4076         b. The administrator’s demonstrated experience in providing
 4077  daily valued recordkeeping to defined contribution programs
 4078  plans.
 4079         c. The administrator’s ability and willingness to
 4080  coordinate its activities with the Florida Retirement System
 4081  employers, the state board, and the division, and to supply to
 4082  such employers, the board, and the division the information and
 4083  data they require, including, but not limited to, monthly
 4084  management reports, quarterly member participant reports, and ad
 4085  hoc reports requested by the department or state board.
 4086         d. The cost-effectiveness and levels of the administrative
 4087  services provided.
 4088         e. The administrator’s ability to interact with the members
 4089  participants, the employers, the state board, the division, and
 4090  the providers; the means by which members participants may
 4091  access account information, direct investment of contributions,
 4092  make changes to their accounts, transfer moneys between
 4093  available investment vehicles, and transfer moneys between
 4094  investment products; and any fees that apply to such activities.
 4095         f. Any other factor deemed necessary by the Trustees of the
 4096  state board of Administration.
 4097         2. In evaluating and selecting an educational provider, the
 4098  state board shall establish criteria under which it shall
 4099  consider the relative capabilities and qualifications of each
 4100  proposed educational provider. In developing such criteria, the
 4101  state board shall consider:
 4102         a. Demonstrated experience in providing educational
 4103  services to public or private sector retirement systems.
 4104         b. Ability and willingness to coordinate its activities
 4105  with the Florida Retirement System employers, the state board,
 4106  and the division, and to supply to such employers, the board,
 4107  and the division the information and data they require,
 4108  including, but not limited to, reports on educational contacts.
 4109         c. The cost-effectiveness and levels of the educational
 4110  services provided.
 4111         d. Ability to provide educational services via different
 4112  media, including, but not limited to, the Internet, personal
 4113  contact, seminars, brochures, and newsletters.
 4114         e. Any other factor deemed necessary by the Trustees of the
 4115  state board of Administration.
 4116         3. The establishment of the criteria shall be solely within
 4117  the discretion of the state board.
 4118         (d) The state board shall develop the form and content of
 4119  any contracts to be offered under the investment plan Public
 4120  Employee Optional Retirement Program. In developing the its
 4121  contracts, the board shall must consider:
 4122         1. The nature and extent of the rights and benefits to be
 4123  afforded in relation to the required contributions required
 4124  under the plan program.
 4125         2. The suitability of the rights and benefits provided to
 4126  be afforded and the interests of employers in the recruitment
 4127  and retention of eligible employees.
 4128         (e)1. The state board may contract with any consultant for
 4129  professional services, including legal, consulting, accounting,
 4130  and actuarial services, deemed necessary to implement and
 4131  administer the investment plan optional program by the Trustees
 4132  of the State Board of Administration. The state board may enter
 4133  into a contract with one or more vendors to provide low-cost
 4134  investment advice to members participants, supplemental to
 4135  education provided by the third-party administrator. All fees
 4136  under any such contract shall be paid by those members
 4137  participants who choose to use the services of the vendor.
 4138         2. The department may contract with consultants for
 4139  professional services, including legal, consulting, accounting,
 4140  and actuarial services, deemed necessary to implement and
 4141  administer the investment plan optional program in coordination
 4142  with the pension plan defined benefit program of the Florida
 4143  Retirement System. The department, in coordination with the
 4144  state board, may enter into a contract with the third-party
 4145  administrator in order to coordinate services common to the
 4146  various programs within the Florida Retirement System.
 4147         (f) The third-party administrator may shall not receive
 4148  direct or indirect compensation from an approved provider,
 4149  except as specifically provided for in the contract with the
 4150  state board.
 4151         (g) The state board shall receive and resolve member
 4152  participant complaints against the program, the third-party
 4153  administrator, or any program vendor or provider; shall resolve
 4154  any conflict between the third-party administrator and an
 4155  approved provider if such conflict threatens the implementation
 4156  or administration of the program or the quality of services to
 4157  employees; and may resolve any other conflicts. The third-party
 4158  administrator shall retain all member participant records for at
 4159  least 5 years for use in resolving any member participant
 4160  conflicts. The state board, the third-party administrator, or a
 4161  provider is not required to produce documentation or an audio
 4162  recording to justify action taken with regard to a member
 4163  participant if the action occurred 5 or more years before the
 4164  complaint is submitted to the state board. It is presumed that
 4165  all action taken 5 or more years before the complaint is
 4166  submitted was taken at the request of the member participant and
 4167  with the member’s participant’s full knowledge and consent. To
 4168  overcome this presumption, the member participant must present
 4169  documentary evidence or an audio recording demonstrating
 4170  otherwise.
 4171         (9) INVESTMENT OPTIONS OR PRODUCTS; PERFORMANCE REVIEW.—
 4172         (a) The state board shall develop policy and procedures for
 4173  selecting, evaluating, and monitoring the performance of
 4174  approved providers and investment products to which employees
 4175  may direct retirement contributions under the investment plan
 4176  program. In accordance with such policy and procedures, the
 4177  state board shall designate and contract for a number of
 4178  investment products as determined by the board. The board shall
 4179  also select one or more bundled providers, each of which whom
 4180  may offer multiple investment options and related services, if
 4181  when such an approach is determined by the board to provide
 4182  afford value to the members participants otherwise not available
 4183  through individual investment products. Each approved bundled
 4184  provider may offer investment options that provide members
 4185  participants with the opportunity to invest in each of the
 4186  following asset classes, to be composed of individual options
 4187  that represent either a single asset class or a combination
 4188  thereof: money markets, United States fixed income, United
 4189  States equities, and foreign stock. The state board shall review
 4190  and manage all educational materials, contract terms, fee
 4191  schedules, and other aspects of the approved provider
 4192  relationships to ensure that no provider is unduly favored or
 4193  penalized by virtue of its status within the investment plan.
 4194         (b) The state board shall consider investment options or
 4195  products it considers appropriate to give members participants
 4196  the opportunity to accumulate retirement benefits, subject to
 4197  the following:
 4198         1. The investment plan Public Employee Optional Retirement
 4199  Program must offer a diversified mix of low-cost investment
 4200  products that span the risk-return spectrum and may include a
 4201  guaranteed account as well as investment products, such as
 4202  individually allocated guaranteed and variable annuities, which
 4203  meet the requirements of this subsection and combine the ability
 4204  to accumulate investment returns with the option of receiving
 4205  lifetime income consistent with the long-term retirement
 4206  security of a pension plan and similar to the lifetime-income
 4207  benefit provided by the Florida Retirement System.
 4208         2. Investment options or products offered by the group of
 4209  approved providers may include mutual funds, group annuity
 4210  contracts, individual retirement annuities, interests in trusts,
 4211  collective trusts, separate accounts, and other such financial
 4212  instruments, and may include products that give members
 4213  participants the option of committing their contributions for an
 4214  extended time period in an effort to obtain returns higher than
 4215  those that could be obtained from investment products offering
 4216  full liquidity.
 4217         3. The state board may shall not contract with a any
 4218  provider that imposes a front-end, back-end, contingent, or
 4219  deferred sales charge, or any other fee that limits or restricts
 4220  the ability of members participants to select any investment
 4221  product available in the investment plan optional program. This
 4222  prohibition does not apply to fees or charges that are imposed
 4223  on withdrawals from products that give members participants the
 4224  option of committing their contributions for an extended time
 4225  period in an effort to obtain returns higher than those that
 4226  could be obtained from investment products offering full
 4227  liquidity, if provided that the product in question, net of all
 4228  fees and charges, produces material benefits relative to other
 4229  comparable products in the investment plan program offering full
 4230  liquidity.
 4231         4. Fees or charges for insurance features, such as
 4232  mortality and expense-risk charges, must be reasonable relative
 4233  to the benefits provided.
 4234         (c) In evaluating and selecting approved providers and
 4235  products, the state board shall establish criteria for
 4236  evaluating under which it shall consider the relative
 4237  capabilities and qualifications of each proposed provider
 4238  company and product. In developing such criteria, the board
 4239  shall consider the following to the extent such factors may be
 4240  applied in connection with investment products, services, or
 4241  providers:
 4242         1. Experience in the United States providing retirement
 4243  products and related financial services under defined
 4244  contribution retirement programs plans.
 4245         2. Financial strength and stability as which shall be
 4246  evidenced by the highest ratings assigned by nationally
 4247  recognized rating services when comparing proposed providers
 4248  that are so rated.
 4249         3. Intrastate and interstate portability of the product
 4250  offered, including early withdrawal options.
 4251         4. Compliance with the Internal Revenue Code.
 4252         5. The cost-effectiveness of the product provided and the
 4253  levels of service supporting the product relative to its
 4254  benefits and its characteristics, including, without limitation,
 4255  the level of risk borne by the provider.
 4256         6. The provider company’s ability and willingness to
 4257  coordinate its activities with Florida Retirement System
 4258  employers, the department, and the state board, and to supply
 4259  the to such employers, the department, and the board with the
 4260  information and data they require.
 4261         7. The methods available to members participants to
 4262  interact with the provider company; the means by which members
 4263  participants may access account information, direct investment
 4264  of contributions, make changes to their accounts, transfer
 4265  moneys between available investment vehicles, and transfer
 4266  moneys between provider companies; and any fees that apply to
 4267  such activities.
 4268         8. The provider company’s policies with respect to the
 4269  transfer of individual account balances, contributions, and
 4270  earnings thereon, both internally among investment products
 4271  offered by the provider company and externally between approved
 4272  providers, as well as any fees, charges, reductions, or
 4273  penalties that may be applied.
 4274         9. An evaluation of specific investment products, taking
 4275  into account each product’s experience in meeting its investment
 4276  return objectives net of all related fees, expenses, and
 4277  charges, including, but not limited to, investment management
 4278  fees, loads, distribution and marketing fees, custody fees,
 4279  recordkeeping fees, education fees, annuity expenses, and
 4280  consulting fees.
 4281         10. Organizational factors, including, but not limited to,
 4282  financial solvency, organizational depth, and experience in
 4283  providing institutional and retail investment services.
 4284         (d) By March 1, 2010, the state board shall identify and
 4285  offer at least one terror-free investment product that allocates
 4286  its funds among securities not subject to divestiture as
 4287  provided in s. 215.473 if the investment product is deemed by
 4288  the state board to be consistent with prudent investor
 4289  standards. A No person may not bring a civil, criminal, or
 4290  administrative action against an approved provider; the state
 4291  board; or any employee, officer, director, or trustee of such
 4292  provider based upon the divestiture of any security or the
 4293  offering of a terror-free investment product as specified in
 4294  this paragraph.
 4295         (e) As a condition of offering an any investment option or
 4296  product in the investment plan optional retirement program, the
 4297  approved provider must agree to make the investment product or
 4298  service available under the most beneficial terms offered to any
 4299  other customer, subject to approval by the Trustees of the state
 4300  board of Administration.
 4301         (f) The state board shall regularly review the performance
 4302  of each approved provider and product and related organizational
 4303  factors to ensure continued compliance with established
 4304  selection criteria and with board policy and procedures.
 4305  Providers and products may be terminated subject to contract
 4306  provisions. The state board shall adopt procedures to transfer
 4307  account balances from terminated products or providers to other
 4308  products or providers in the investment plan optional program.
 4309         (g)1. An approved provider shall comply with all applicable
 4310  federal and state securities and insurance laws and regulations
 4311  applicable to the provider, as well as with the applicable rules
 4312  and guidelines of the National Association of Securities Dealers
 4313  which govern the ethical marketing of investment products. In
 4314  furtherance of this mandate, an approved provider must agree in
 4315  its contract with the state board to establish and maintain a
 4316  compliance education and monitoring system to supervise the
 4317  activities of all personnel who directly communicate with
 4318  individual members participants and recommend investment
 4319  products, which system is consistent with rules of the National
 4320  Association of Securities Dealers.
 4321         2. Approved provider personnel who directly communicate
 4322  with individual members participants and who recommend
 4323  investment products shall make an independent and unbiased
 4324  determination as to whether an investment product is suitable
 4325  for a particular member participant.
 4326         3. The state board shall develop procedures to receive and
 4327  resolve member participant complaints against a provider or
 4328  approved provider personnel, and, if when appropriate, refer
 4329  such complaints to the appropriate agency.
 4330         4. Approved providers may not sell or in any way distribute
 4331  any customer list or member participant identification
 4332  information generated through their offering of products or
 4333  services through the investment plan optional retirement
 4334  program.
 4335         (10) EDUCATION COMPONENT.—
 4336         (a) The state board, in coordination with the department,
 4337  shall provide for an education component for system members in a
 4338  manner consistent with the provisions of this section. The
 4339  education component must be available to eligible employees at
 4340  least 90 days prior to the beginning date of the election period
 4341  for the employees of the respective types of employers.
 4342         (b) The education component must provide system members
 4343  with impartial and balanced information about plan choices. The
 4344  education component must involve multimedia formats. Program
 4345  comparisons must, to the greatest extent possible, be based upon
 4346  the retirement income that different retirement programs may
 4347  provide to the member participant. The state board shall monitor
 4348  the performance of the contract to ensure that the program is
 4349  conducted in accordance with the contract, applicable law, and
 4350  the rules of the state board.
 4351         (c) The state board, in coordination with the department,
 4352  shall provide for an initial and ongoing transfer education
 4353  component to provide system members with information necessary
 4354  to make informed plan choice decisions. The transfer education
 4355  component must include, but is not limited to, information on:
 4356         1. The amount of money available to a member to transfer to
 4357  the defined contribution program.
 4358         2. The features of and differences between the pension plan
 4359  defined benefit program and the defined contribution program,
 4360  both generally and specifically, as those differences may affect
 4361  the member.
 4362         3. The expected benefit available if the member were to
 4363  retire under each of the retirement programs, based on
 4364  appropriate alternative sets of assumptions.
 4365         4. The rate of return from investments in the defined
 4366  contribution program and the period of time over which such rate
 4367  of return must be achieved to equal or exceed the expected
 4368  monthly benefit payable to the member under the pension plan
 4369  defined benefit program.
 4370         5. The historical rates of return for the investment
 4371  alternatives available in the defined contribution programs.
 4372         6. The benefits and historical rates of return on
 4373  investments available in a typical deferred compensation plan or
 4374  a typical plan under s. 403(b) of the Internal Revenue Code for
 4375  which the employee may be eligible.
 4376         7. The program choices available to employees of the State
 4377  University System and the comparative benefits of each available
 4378  program, if applicable.
 4379         8. Payout options available in each of the retirement
 4380  programs.
 4381         (d) An ongoing education and communication component must
 4382  provide eligible employees system members with information
 4383  necessary to make informed decisions about choices within their
 4384  retirement system program of membership and in preparation for
 4385  retirement. The component must include, but is not limited to,
 4386  information concerning:
 4387         1. Rights and conditions of membership.
 4388         2. Benefit features within the program, options, and
 4389  effects of certain decisions.
 4390         3. Coordination of contributions and benefits with a
 4391  deferred compensation plan under s. 457 or a plan under s.
 4392  403(b) of the Internal Revenue Code.
 4393         4. Significant program changes.
 4394         5. Contribution rates and program funding status.
 4395         6. Planning for retirement.
 4396         (e) Descriptive materials must be prepared under the
 4397  assumption that the employee is an unsophisticated investor, and
 4398  all materials used in the education component must be approved
 4399  by the state board prior to dissemination.
 4400         (f) The state board and the department shall also establish
 4401  a communication component to provide program information to
 4402  participating employers and the employers’ personnel and payroll
 4403  officers and to explain their respective responsibilities in
 4404  conjunction with the retirement programs.
 4405         (g) Funding for education of new employees may reflect
 4406  administrative costs to the investment plan optional program and
 4407  the pension plan defined benefit program.
 4408         (h) Pursuant to subsection paragraph (8)(a), all Florida
 4409  Retirement System employers have an obligation to regularly
 4410  communicate the existence of the two Florida Retirement System
 4411  plans and the plan choice in the natural course of administering
 4412  their personnel functions, using the educational materials
 4413  supplied by the state board and the Department of Management
 4414  Services.
 4415         (11) MEMBER PARTICIPANT INFORMATION REQUIREMENTS.—The state
 4416  board shall ensure that each member participant is provided a
 4417  quarterly statement that accounts for the contributions made on
 4418  behalf of the member such participant; the interest and
 4419  investment earnings thereon; and any fees, penalties, or other
 4420  deductions that apply thereto. At a minimum, such statements
 4421  must:
 4422         (a) Indicate the member’s participant’s investment options.
 4423         (b) State the market value of the account at the close of
 4424  the current quarter and previous quarter.
 4425         (c) Show account gains and losses for the period and
 4426  changes in account accumulation unit values for the quarter
 4427  period.
 4428         (d) Itemize account contributions for the quarter.
 4429         (e) Indicate any account changes due to adjustment of
 4430  contribution levels, reallocation of contributions, balance
 4431  transfers, or withdrawals.
 4432         (f) Set forth any fees, charges, penalties, and deductions
 4433  that apply to the account.
 4434         (g) Indicate the amount of the account in which the member
 4435  participant is fully vested and the amount of the account in
 4436  which the member participant is not vested.
 4437         (h) Indicate each investment product’s performance relative
 4438  to an appropriate market benchmark.
 4439  
 4440  The third-party administrator shall provide quarterly and annual
 4441  summary reports to the state board and any other reports
 4442  requested by the department or the state board. In any
 4443  solicitation or offer of coverage under the investment plan an
 4444  optional retirement program, a provider company shall be
 4445  governed by the contract readability provisions of s. 627.4145,
 4446  notwithstanding s. 627.4145(6)(c). In addition, all descriptive
 4447  materials must be prepared under the assumption that the member
 4448  participant is an unsophisticated investor. Provider companies
 4449  must maintain an internal system of quality assurance, have
 4450  proven functional systems that are date-calculation compliant,
 4451  and be subject to a due-diligence inquiry that proves their
 4452  capacity and fitness to undertake service responsibilities.
 4453         (12) ADVISORY COUNCIL TO PROVIDE ADVICE AND ASSISTANCE.—The
 4454  Investment Advisory Council, created pursuant to s. 215.444,
 4455  shall assist the state board in implementing and administering
 4456  the investment plan Public Employee Optional Retirement Program.
 4457  The Investment Advisory council, created pursuant to s. 215.444,
 4458  shall review the state board’s initial recommendations regarding
 4459  the criteria to be used in selecting and evaluating approved
 4460  providers and investment products. The council may provide
 4461  comments on the recommendations to the state board within 45
 4462  days after receiving the initial recommendations. The state
 4463  board shall make the final determination as to whether any
 4464  investment provider or product, any contractor, or any and all
 4465  contract provisions are shall be approved for the investment
 4466  plan program.
 4467         (13) FEDERAL REQUIREMENTS.—
 4468         (a) Provisions of This section shall be construed, and the
 4469  investment plan Public Employee Optional Retirement Program
 4470  shall be administered, so as to comply with the Internal Revenue
 4471  Code, 26 U.S.C., and specifically with plan qualification
 4472  requirements imposed on governmental plans under s. 401(a) of
 4473  the Internal Revenue Code. The state board may shall have the
 4474  power and authority to adopt rules reasonably necessary to
 4475  establish or maintain the qualified status of the investment
 4476  plan Optional Retirement Program under the Internal Revenue Code
 4477  and to implement and administer the investment plan Optional
 4478  Retirement Program in compliance with the Internal Revenue Code
 4479  and as designated under this part; provided however, that the
 4480  board shall not have the authority to adopt any rule which makes
 4481  a substantive change to the investment plan Optional Retirement
 4482  Program as designed by this part.
 4483         (b) Any section or provision of this chapter which is
 4484  susceptible to more than one construction shall must be
 4485  interpreted in favor of the construction most likely to satisfy
 4486  requirements imposed by s. 401(a) of the Internal Revenue Code.
 4487         (c) Contributions payable under this section for any
 4488  limitation year may not exceed the maximum amount allowable for
 4489  qualified defined contribution pension plans under applicable
 4490  provisions of the Internal Revenue Code. If an employee who is
 4491  enrolled has elected to participate in the investment plan
 4492  Public Employee Optional Retirement Program participates in any
 4493  other plan that is maintained by the participating employer,
 4494  benefits that accrue under the investment plan Public Employee
 4495  Optional Retirement Program shall be considered primary for any
 4496  aggregate limitation applicable under s. 415 of the Internal
 4497  Revenue Code.
 4498         (14) INVESTMENT POLICY STATEMENT.—
 4499         (a) Investment products and approved providers selected for
 4500  the investment plan must Public Employee Optional Retirement
 4501  Program shall conform with the Florida Retirement System
 4502  Investment Plan Public Employee Optional Retirement Program
 4503  Investment Policy Statement, herein referred to as the
 4504  “statement,” as developed and approved by the trustees of the
 4505  state board of Administration. The statement must include, among
 4506  other items, the investment objectives of the investment plan
 4507  Public Employee Optional Retirement Program, manager selection
 4508  and monitoring guidelines, and performance measurement criteria.
 4509  As required from time to time, the executive director of the
 4510  state board may present recommended changes in the statement to
 4511  the board for approval.
 4512         (b) Prior to presenting the statement, or any recommended
 4513  changes thereto, to the state board, the executive director of
 4514  the board shall present such statement or changes to the
 4515  Investment Advisory Council for review. The council shall
 4516  present the results of its review to the board prior to the
 4517  board’s final approval of the statement or changes in the
 4518  statement.
 4519         (15) STATEMENT OF FIDUCIARY STANDARDS AND
 4520  RESPONSIBILITIES.—
 4521         (a) Investment of optional defined contribution retirement
 4522  plan assets shall be made for the sole interest and exclusive
 4523  purpose of providing benefits to members plan participants and
 4524  beneficiaries and defraying reasonable expenses of administering
 4525  the plan. The program’s assets shall are to be invested, on
 4526  behalf of the program members participants, with the care,
 4527  skill, and diligence that a prudent person acting in a like
 4528  manner would undertake. The performance of the investment duties
 4529  set forth in this paragraph shall comply with the fiduciary
 4530  standards set forth in the Employee Retirement Income Security
 4531  Act of 1974 at 29 U.S.C. s. 1104(a)(1)(A)-(C). In case of
 4532  conflict with other provisions of law authorizing investments,
 4533  the investment and fiduciary standards set forth in this
 4534  subsection shall prevail.
 4535         (b) If a member participant or beneficiary of the
 4536  investment plan Public Employee Optional Retirement Program
 4537  exercises control over the assets in his or her account, as
 4538  determined by reference to regulations of the United States
 4539  Department of Labor under s. 404(c) of the Employee Retirement
 4540  Income Security Act of 1974 and all applicable laws governing
 4541  the operation of the program, a no program fiduciary is not
 4542  shall be liable for any loss to a member’s participant’s or
 4543  beneficiary’s account which results from the member’s such
 4544  participant’s or beneficiary’s exercise of control.
 4545         (c) Subparagraph (8)(b)2.4. and paragraph (15)(b)
 4546  incorporate the federal law concept of participant control,
 4547  established by regulations of the United States Department of
 4548  Labor under s. 404(c) of the Employee Retirement Income Security
 4549  Act of 1974 (ERISA). The purpose of this paragraph is to assist
 4550  employers and the state board of Administration in maintaining
 4551  compliance with s. 404(c), while avoiding unnecessary costs and
 4552  eroding member participant benefits under the investment plan
 4553  Public Employee Optional Retirement Program. Pursuant to 29
 4554  C.F.R. s. 2550.404c-1(b)(2)(i)(B)(1)(viii), the state board of
 4555  Administration or its designated agents shall deliver to members
 4556  participants of the investment plan Public Employee Optional
 4557  Retirement Program a copy of the prospectus most recently
 4558  provided to the plan, and, pursuant to 29 C.F.R. s. 2550.404c
 4559  1(b)(2)(i)(B)(2)(ii), shall provide such members participants an
 4560  opportunity to obtain this information, except that:
 4561         1. The requirement to deliver a prospectus shall be deemed
 4562  to be satisfied by delivery of a fund profile or summary profile
 4563  that contains the information that would be included in a
 4564  summary prospectus as described by Rule 498 under the Securities
 4565  Act of 1933, 17 C.F.R. s. 230.498. If When the transaction fees,
 4566  expense information or other information provided by a mutual
 4567  fund in the prospectus does not reflect terms negotiated by the
 4568  state board of Administration or its designated agents, the
 4569  aforementioned requirement is deemed to be satisfied by delivery
 4570  of a separate document described by Rule 498 substituting
 4571  accurate information; and
 4572         2. Delivery shall be deemed to have been effected if
 4573  delivery is through electronic means and the following standards
 4574  are satisfied:
 4575         a. Electronically-delivered documents are prepared and
 4576  provided consistent with style, format, and content requirements
 4577  applicable to printed documents;
 4578         b. Each member participant is provided timely and adequate
 4579  notice of the documents that are to be delivered, and their
 4580  significance thereof, and of the member’s participant’s right to
 4581  obtain a paper copy of such documents free of charge;
 4582         c.(I)Members Participants have adequate access to the
 4583  electronic documents, at locations such as their worksites or
 4584  public facilities, and have the ability to convert the documents
 4585  to paper free of charge by the state board of Administration,
 4586  and the board or its designated agents take appropriate and
 4587  reasonable measures to ensure that the system for furnishing
 4588  electronic documents results in actual receipt., or
 4589         (II)Members Participants have provided consent to receive
 4590  information in electronic format, which consent may be revoked;
 4591  and
 4592         d. The state board of Administration, or its designated
 4593  agent, actually provides paper copies of the documents free of
 4594  charge, upon request.
 4595         (16) DISABILITY BENEFITS.—For any member participant of the
 4596  investment plan optional retirement program who becomes totally
 4597  and permanently disabled, benefits must shall be paid in
 4598  accordance with the provisions of s. 121.591.
 4599         (17) SOCIAL SECURITY COVERAGE.—Social security coverage
 4600  shall be provided for all officers and employees who become
 4601  members participants of the investment plan optional program.
 4602  Any modification of the present agreement with the Social
 4603  Security Administration, or referendum required under the Social
 4604  Security Act, for the purpose of providing social security
 4605  coverage for any member shall be requested by the state agency
 4606  in compliance with the applicable provisions of the Social
 4607  Security Act governing such coverage. However, retroactive
 4608  social security coverage for service prior to December 1, 1970,
 4609  with the employer may shall not be provided for any member who
 4610  was not covered under the agreement as of November 30, 1970.
 4611         (18) RETIREE HEALTH INSURANCE SUBSIDY.—All officers and
 4612  employees who are members participants of the investment plan
 4613  are optional program shall be eligible to receive the retiree
 4614  health insurance subsidy, subject to the provisions of s.
 4615  112.363.
 4616         (19) MEMBER PARTICIPANT RECORDS.—Personal identifying
 4617  information of a member participant in the investment plan
 4618  Public Employee Optional Retirement Program contained in Florida
 4619  Retirement System records held by the state board of
 4620  Administration or the department of Management Services is
 4621  exempt from s. 119.07(1) and s. 24(a), Art. I of the State
 4622  Constitution.
 4623         (20) DESIGNATION OF BENEFICIARIES.—
 4624         (a) Each member participant may, by electronic means or on
 4625  a form provided for that purpose, signed and filed with the
 4626  third-party administrator, designate a choice of one or more
 4627  persons, named sequentially or jointly, as his or her
 4628  beneficiary for receiving who shall receive the benefits, if
 4629  any, which may be payable pursuant to this chapter in the event
 4630  of the member’s participant’s death. If no beneficiary is named
 4631  in this manner, or if no beneficiary designated by the member
 4632  participant survives the member participant, the beneficiary
 4633  shall be the spouse of the deceased, if living. If the member’s
 4634  participant’s spouse is not alive at the time of the member’s
 4635  his or her death, the beneficiary shall be the living children
 4636  of the member participant. If no children survive, the
 4637  beneficiary shall be the member’s participant’s father or
 4638  mother, if living; otherwise, the beneficiary shall be the
 4639  member’s participant’s estate. The beneficiary most recently
 4640  designated by a member participant on a form or letter filed
 4641  with the third-party administrator shall be the beneficiary
 4642  entitled to any benefits payable at the time of the member’s
 4643  participant’s death. However Notwithstanding any other provision
 4644  in this subsection to the contrary, for a member participant who
 4645  dies prior to his or her effective date of retirement, the
 4646  spouse at the time of death shall be the member’s participant’s
 4647  beneficiary unless the member such participant designates a
 4648  different beneficiary as provided in this subsection subsequent
 4649  to the member’s participant’s most recent marriage.
 4650         (b) If a member participant designates a primary
 4651  beneficiary other than the member’s participant’s spouse, the
 4652  member’s participant’s spouse must sign the beneficiary
 4653  designation form to acknowledge the designation. This
 4654  requirement does not apply to the designation of one or more
 4655  contingent beneficiaries to receive benefits remaining upon the
 4656  death of the primary beneficiary or beneficiaries.
 4657         (c) Notwithstanding the member’s participant’s designation
 4658  of benefits to be paid through a trust to a beneficiary that is
 4659  a natural person, and notwithstanding the provisions of the
 4660  trust, benefits must shall be paid directly to the beneficiary
 4661  if the person is no longer a minor or an incapacitated person as
 4662  defined in s. 744.102.
 4663         (21) PARTICIPATION BY TERMINATED DEFERRED RETIREMENT OPTION
 4664  PROGRAM MEMBERS PARTICIPANTS.—Notwithstanding any other
 4665  provision of law to the contrary, members participants in the
 4666  Deferred Retirement Option Program offered under part I may,
 4667  after conclusion of their participation in the program, elect to
 4668  roll over or authorize a direct trustee-to-trustee transfer to
 4669  an account under the investment plan Public Employee Optional
 4670  Retirement Program of their Deferred Retirement Option Program
 4671  proceeds distributed as provided under s. 121.091(13)(c)5. The
 4672  transaction must constitute an “eligible rollover distribution”
 4673  within the meaning of s. 402(c)(4) of the Internal Revenue Code.
 4674         (a) The investment plan Public Employee Optional Retirement
 4675  Program may accept such amounts for deposit into member
 4676  participant accounts as provided in paragraph (5)(e)(c).
 4677         (b) The affected member participant shall direct the
 4678  investment of his or her investment account; however, unless he
 4679  or she becomes a renewed member of the Florida Retirement System
 4680  under s. 121.122 and elects to participate in the investment
 4681  plan Public Employee Optional Retirement Program, no employer
 4682  contributions may not be made to the member’s participant’s
 4683  account as provided under paragraph (5)(a).
 4684         (c) The state board or the department is not responsible
 4685  for locating those persons who may be eligible to participate in
 4686  the investment plan Public Employee Optional Retirement Program
 4687  under this subsection.
 4688         (22) CREDIT FOR MILITARY SERVICE.—Creditable service of any
 4689  member of the investment plan includes Public Employee Optional
 4690  Retirement Program shall include military service in the Armed
 4691  Forces of the United States as provided in the conditions
 4692  outlined in s. 121.111(1).
 4693         Section 27. Section 121.4502, Florida Statutes, is amended
 4694  to read:
 4695         121.4502 Florida Retirement System Investment Plan Public
 4696  Employee Optional Retirement Program Trust Fund.—
 4697         (1) The Florida Retirement System Investment Plan Public
 4698  Employee Optional Retirement Program Trust Fund is created to
 4699  hold the assets of the Florida Retirement System Investment Plan
 4700  Public Employee Optional Retirement Program in trust for the
 4701  exclusive benefit of the plan’s members such program’s
 4702  participants and beneficiaries, and for the payment of
 4703  reasonable administrative expenses of the plan program, in
 4704  accordance with s. 401 of the Internal Revenue Code, and shall
 4705  be administered by the state board of Administration as trustee.
 4706  Funds shall be credited to the trust fund as provided in this
 4707  part, to be used for the purposes of this part. The trust fund
 4708  is exempt from the service charges imposed by s. 215.20.
 4709         (2) The Florida Retirement System Investment Plan Public
 4710  Employee Optional Retirement Program Trust Fund is a retirement
 4711  trust fund of the Florida Retirement System that accounts for
 4712  retirement plan assets held by the state in a trustee capacity
 4713  as a fiduciary for individual participants in the Florida
 4714  Retirement System Investment Plan Public Employee Optional
 4715  Retirement Program and, pursuant to s. 19(f), Art. III of the
 4716  State Constitution, is not subject to termination.
 4717         (3) A forfeiture account shall be created within the
 4718  Florida Retirement System Investment Plan Public Employee
 4719  Optional Retirement Program Trust Fund to hold the assets
 4720  derived from the forfeiture of benefits by participants.
 4721  Pursuant to a private letter ruling from the Internal Revenue
 4722  Service, the forfeiture account may be used only for paying
 4723  expenses of the Florida Retirement System Investment Plan Public
 4724  Employee Optional Retirement Program and reducing future
 4725  employer contributions to the program. Consistent with Rulings
 4726  80-155 and 74-340 of the Internal Revenue Service, unallocated
 4727  reserves within the forfeiture account must be used as quickly
 4728  and as prudently as possible considering the state board’s
 4729  fiduciary duty. Expected withdrawals from the account must
 4730  endeavor to reduce the account to zero each fiscal year.
 4731         Section 28. Subsections (1) and (3) of section 121.4503,
 4732  Florida Statutes, are amended to read:
 4733         121.4503 Florida Retirement System Contributions Clearing
 4734  Trust Fund.—
 4735         (1) The Florida Retirement System Contributions Clearing
 4736  Trust Fund is created as a clearing fund for disbursing employer
 4737  and employee contributions to the component plans of the Florida
 4738  Retirement System and shall be administered by the Department of
 4739  Management Services. Funds shall be credited to the trust fund
 4740  as provided in this chapter and shall be held in trust for the
 4741  contributing employees and employers until such time as the
 4742  assets are transferred by the department to the Florida
 4743  Retirement System Trust Fund, the Florida Retirement System
 4744  Investment Plan Public Employee Optional Retirement Program
 4745  Trust Fund, or other trust funds as authorized by law, to be
 4746  used for the purposes of this chapter. The trust fund is exempt
 4747  from the service charges imposed by s. 215.20.
 4748         (3) The Department of Management Services may adopt rules
 4749  governing the receipt and disbursement of amounts received by
 4750  the Florida Retirement System Contributions Clearing Trust Fund
 4751  from employers and employees contributing to the component plans
 4752  of the Florida Retirement System.
 4753         Section 29. Section 121.571, Florida Statutes, is amended
 4754  to read:
 4755         121.571 Contributions.—Contributions to the Florida
 4756  Retirement System Investment Plan Public Employee Optional
 4757  Retirement Program shall be made as follows:
 4758         (1) CONTRIBUTORY NONCONTRIBUTORY PLAN.—Each employer and
 4759  employee shall submit accomplish the contributions as required
 4760  by s. 121.71 by a procedure in which no employee’s gross salary
 4761  shall be reduced.
 4762         (2) CONTRIBUTION RATES GENERALLY.—Contributions to fund the
 4763  retirement and disability benefits provided under this part must
 4764  shall be based on the uniform contribution rates established by
 4765  s. 121.71 and on the membership class or subclass of the member
 4766  participant. Such contributions must shall be allocated as
 4767  provided in ss. 121.72 and 121.73.
 4768         (3) CONTRIBUTIONS FOR SOCIAL SECURITY COVERAGE AND FOR
 4769  RETIREE HEALTH INSURANCE SUBSIDY.—Contributions required under
 4770  s. 121.71 are this section shall be in addition to employer and
 4771  member contributions required for social security and the
 4772  Retiree Health Insurance Subsidy Trust Fund as required under
 4773  provided in ss. 112.363, 121.052, 121.055, and 121.071, as
 4774  appropriate.
 4775         Section 30. Section 121.591, Florida Statutes, is amended
 4776  to read:
 4777         121.591 Payment of benefits payable under the Public
 4778  Employee Optional Retirement Program of the Florida Retirement
 4779  System.—Benefits may not be paid under the Florida Retirement
 4780  System Investment Plan this section unless the member has
 4781  terminated employment as provided in s. 121.021(39)(a) or is
 4782  deceased and a proper application has been filed as in the
 4783  manner prescribed by the state board or the department. Before
 4784  termination of employment, benefits, including employee
 4785  contributions, are not payable under the investment plan for
 4786  employee hardships, unforeseeable emergencies, loans, medical
 4787  expenses, educational expenses, purchase of a principal
 4788  residence, payments necessary to prevent eviction or foreclosure
 4789  on an employee’s principal residence, or any other reason prior
 4790  to termination from all employment relationships with
 4791  participating employers. The state board or department, as
 4792  appropriate, may cancel an application for retirement benefits
 4793  if when the member or beneficiary fails to timely provide the
 4794  information and documents required by this chapter and the rules
 4795  of the state board and department. In accordance with their
 4796  respective responsibilities as provided herein, the state board
 4797  of Administration and the department of Management Services
 4798  shall adopt rules establishing procedures for application for
 4799  retirement benefits and for the cancellation of such application
 4800  if when the required information or documents are not received.
 4801  The state board of Administration and the department of
 4802  Management Services, as appropriate, are authorized to cash out
 4803  a de minimis account of a member participant who has been
 4804  terminated from Florida Retirement System covered employment for
 4805  a minimum of 6 calendar months. A de minimis account is an
 4806  account containing employer and employee contributions and
 4807  accumulated earnings of not more than $5,000 made under the
 4808  provisions of this chapter. Such cash-out must either be a
 4809  complete lump-sum liquidation of the account balance, subject to
 4810  the provisions of the Internal Revenue Code, or a lump-sum
 4811  direct rollover distribution paid directly to the custodian of
 4812  an eligible retirement plan, as defined by the Internal Revenue
 4813  Code, on behalf of the member participant. Any nonvested
 4814  accumulations and associated service credit, including amounts
 4815  transferred to the suspense account of the Florida Retirement
 4816  System Investment Plan Trust Fund authorized under s.
 4817  121.4501(6), shall be forfeited upon payment of any vested
 4818  benefit to a member or beneficiary, except for de minimis
 4819  distributions or minimum required distributions as provided
 4820  under this section. If any financial instrument issued for the
 4821  payment of retirement benefits under this section is not
 4822  presented for payment within 180 days after the last day of the
 4823  month in which it was originally issued, the third-party
 4824  administrator or other duly authorized agent of the state board
 4825  of Administration shall cancel the instrument and credit the
 4826  amount of the instrument to the suspense account of the Florida
 4827  Retirement System Investment Plan Public Employee Optional
 4828  Retirement Program Trust Fund authorized under s. 121.4501(6).
 4829  Any such amounts transferred to the suspense account are payable
 4830  upon a proper application, not to include earnings thereon, as
 4831  provided in this section, within 10 years after the last day of
 4832  the month in which the instrument was originally issued, after
 4833  which time such amounts and any earnings attributable to
 4834  employer contributions thereon shall be forfeited. Any such
 4835  forfeited amounts are assets of the Public Employee Optional
 4836  Retirement Program trust fund and are not subject to the
 4837  provisions of chapter 717.
 4838         (1) NORMAL BENEFITS.—Under the investment plan Public
 4839  Employee Optional Retirement Program:
 4840         (a) Benefits in the form of vested accumulations as
 4841  described in s. 121.4501(6) are payable under this subsection in
 4842  accordance with the following terms and conditions:
 4843         1. To the extent vested, Benefits are payable only to a
 4844  member, an alternate payee of a qualified domestic relations
 4845  order, or a beneficiary participant.
 4846         2. Benefits shall be paid by the third-party administrator
 4847  or designated approved providers in accordance with the law, the
 4848  contracts, and any applicable board rule or policy.
 4849         3. To receive benefits, The member participant must be
 4850  terminated from all employment with all Florida Retirement
 4851  System employers, as provided in s. 121.021(39).
 4852         4. Benefit payments may not be made until the member
 4853  participant has been terminated for 3 calendar months, except
 4854  that the state board may authorize by rule for the distribution
 4855  of up to 10 percent of the member’s participant’s account after
 4856  being terminated for 1 calendar month if the member participant
 4857  has reached the normal retirement date as defined in s. 121.021
 4858  of the defined benefit plan.
 4859         5. If a member or former member of the Florida Retirement
 4860  System receives an invalid distribution from the Public Employee
 4861  Optional Retirement Program Trust Fund, such person must either
 4862  repay the full amount invalid distribution to the trust fund
 4863  within 90 days after receipt of final notification by the state
 4864  board or the third-party administrator that the distribution was
 4865  invalid, or, in lieu of repayment, the member must terminate
 4866  employment from all participating employers. If such person
 4867  fails to repay the full invalid distribution within 90 days
 4868  after receipt of final notification, the person may be deemed
 4869  retired from the investment plan optional retirement program by
 4870  the state board, as provided pursuant to s. 121.4501(2)(k), and
 4871  is subject to s. 121.122. If such person is deemed retired by
 4872  the state board, any joint and several liability set out in s.
 4873  121.091(9)(d)2. is becomes null and void, and the state board,
 4874  the department, or the employing agency is not liable for gains
 4875  on payroll contributions that have not been deposited to the
 4876  person’s account in the investment plan retirement program,
 4877  pending resolution of the invalid distribution. The member or
 4878  former member who has been deemed retired or who has been
 4879  determined by the state board to have taken an invalid
 4880  distribution may appeal the agency decision through the
 4881  complaint process as provided under s. 121.4501(9)(g)3. As used
 4882  in this subparagraph, the term “invalid distribution” means any
 4883  distribution from an account in the investment plan optional
 4884  retirement program which is taken in violation of this section,
 4885  s. 121.091(9), or s. 121.4501.
 4886         (b) If a member participant elects to receive his or her
 4887  benefits upon termination of employment as defined in s.
 4888  121.021, the member participant must submit a written
 4889  application or an application by electronic means to the third
 4890  party administrator indicating his or her preferred distribution
 4891  date and selecting an authorized method of distribution as
 4892  provided in paragraph (c). The member participant may defer
 4893  receipt of benefits until he or she chooses to make such
 4894  application, subject to federal requirements.
 4895         (c) Upon receipt by the third-party administrator of a
 4896  properly executed application for distribution of benefits, the
 4897  total accumulated benefit is shall be payable to the member pro
 4898  rata across all Florida Retirement System benefit sources
 4899  participant, as:
 4900         1. A lump-sum or partial distribution to the member
 4901  participant;
 4902         2. A lump-sum direct rollover distribution whereby all
 4903  accrued benefits, plus interest and investment earnings, are
 4904  paid from the member’s participant’s account directly to the
 4905  custodian of an eligible retirement plan, as defined in s.
 4906  402(c)(8)(B) of the Internal Revenue Code, on behalf of the
 4907  member participant; or
 4908         3. Periodic distributions, as authorized by the state
 4909  board.
 4910         (d) The distribution payment method selected by the member
 4911  or beneficiary, and the retirement of the member or beneficiary,
 4912  is final and irrevocable at the time a benefit distribution
 4913  payment is cashed, deposited, or transferred to another
 4914  financial institution. Any additional service that remains
 4915  unclaimed at retirement may not be claimed or purchased, and the
 4916  type of retirement may not be changed, except that if a member
 4917  recovers from a disability, the member may subsequently request
 4918  benefits under subsection (2).
 4919         (e) A member may not receive a distribution of employee
 4920  contributions if a pending qualified domestic relations order is
 4921  filed against the member’s investment plan account.
 4922         (2) DISABILITY RETIREMENT BENEFITS.—Benefits provided under
 4923  this subsection are payable in lieu of the benefits that which
 4924  would otherwise be payable under the provisions of subsection
 4925  (1). Such benefits must shall be funded entirely from employer
 4926  contributions made under s. 121.571, transferred employee
 4927  contributions and participant funds accumulated pursuant to
 4928  paragraph (a), and interest and earnings thereon. Pursuant
 4929  thereto:
 4930         (a) Transfer of funds.—To qualify to receive monthly
 4931  disability benefits under this subsection:
 4932         1. All moneys accumulated in the member’s account
 4933  participant’s Public Employee Optional Retirement Program
 4934  accounts, including vested and nonvested accumulations as
 4935  described in s. 121.4501(6), must shall be transferred from such
 4936  individual accounts to the division of Retirement for deposit in
 4937  the disability account of the Florida Retirement System Trust
 4938  Fund. Such moneys must shall be separately accounted for
 4939  separately. Earnings must shall be credited on an annual basis
 4940  for amounts held in the disability accounts of the Florida
 4941  Retirement System Trust Fund based on actual earnings of the
 4942  Florida Retirement System trust fund.
 4943         2. If the member participant has retained retirement credit
 4944  he or she had earned under the pension plan defined benefit
 4945  program of the Florida Retirement System as provided in s.
 4946  121.4501(3)(b), a sum representing the actuarial present value
 4947  of such credit within the Florida Retirement System Trust Fund
 4948  shall be reassigned by the division of Retirement from the
 4949  pension plan defined benefit program to the disability program
 4950  as implemented under this subsection and shall be deposited in
 4951  the disability account of the Florida Retirement System trust
 4952  fund. Such moneys must shall be separately accounted for
 4953  separately.
 4954         (b) Disability retirement; entitlement.—
 4955         1. A member participant of the investment plan Public
 4956  Employee Optional Retirement Program who becomes totally and
 4957  permanently disabled, as defined in paragraph (d) s.
 4958  121.091(4)(b), after completing 8 years of creditable service,
 4959  or a member participant who becomes totally and permanently
 4960  disabled in the line of duty regardless of his or her length of
 4961  service, is shall be entitled to a monthly disability benefit as
 4962  provided herein.
 4963         2. In order for service to apply toward the 8 years of
 4964  creditable service required to vest for regular disability
 4965  benefits, or toward the creditable service used in calculating a
 4966  service-based benefit as provided for under paragraph (g), the
 4967  service must be creditable service as described below:
 4968         a. The member’s participant’s period of service under the
 4969  investment plan shall Public Employee Optional Retirement
 4970  Program will be considered creditable service, except as
 4971  provided in subparagraph d.
 4972         b. If the member participant has elected to retain credit
 4973  for his or her service under the pension plan defined benefit
 4974  program of the Florida Retirement System as provided under s.
 4975  121.4501(3)(b), all such service shall will be considered
 4976  creditable service.
 4977         c. If the member elects participant has elected to transfer
 4978  to his or her member participant accounts a sum representing the
 4979  present value of his or her retirement credit under the pension
 4980  plan defined benefit program as provided under s.
 4981  121.4501(3)(c), the period of service under the pension plan
 4982  defined benefit program represented in the present value amounts
 4983  transferred shall will be considered creditable service for
 4984  purposes of vesting for disability benefits, except as provided
 4985  in subparagraph d.
 4986         d. If a member Whenever a participant has terminated
 4987  employment and has taken distribution of his or her funds as
 4988  provided in subsection (1), all creditable service represented
 4989  by such distributed funds is forfeited for purposes of this
 4990  subsection.
 4991         (c) Disability retirement effective date.—The effective
 4992  retirement date for a member participant who applies and is
 4993  approved for disability retirement shall be established as
 4994  provided under s. 121.091(4)(a)2. and 3.
 4995         (d) Total and permanent disability.—A member participant
 4996  shall be considered totally and permanently disabled if, in the
 4997  opinion of the division, he or she is prevented, by reason of a
 4998  medically determinable physical or mental impairment, from
 4999  rendering useful and efficient service as an officer or
 5000  employee.
 5001         (e) Proof of disability.The division, Before approving
 5002  payment of any disability retirement benefit, the division shall
 5003  require proof that the member participant is totally and
 5004  permanently disabled in the same manner as provided for members
 5005  of the defined benefit program of the Florida Retirement System
 5006  under s. 121.091(4)(c).
 5007         (f) Disability retirement benefit.—Upon the disability
 5008  retirement of a member participant under this subsection, the
 5009  member participant shall receive a monthly benefit that begins
 5010  accruing shall begin to accrue on the first day of the month of
 5011  disability retirement, as approved by the division, and is shall
 5012  be payable on the last day of that month and each month
 5013  thereafter during his or her lifetime and continued disability.
 5014  All disability benefits must payable to such member shall be
 5015  paid out of the disability account of the Florida Retirement
 5016  System Trust Fund established under this subsection.
 5017         (g) Computation of disability retirement benefit.—The
 5018  amount of each monthly payment must shall be calculated in the
 5019  same manner as provided for members of the defined benefit
 5020  program of the Florida Retirement System under s. 121.091(4)(f).
 5021  For such purpose, Creditable service under both the pension plan
 5022  defined benefit program and the investment plan Public Employee
 5023  Optional Retirement Program of the Florida Retirement System
 5024  shall be applicable as provided under paragraph (b).
 5025         (h) Reapplication.—A member participant whose initial
 5026  application for disability retirement is has been denied may
 5027  reapply for disability benefits in the same manner, and under
 5028  the same conditions, as provided in for members of the defined
 5029  benefit program of the Florida Retirement System under s.
 5030  121.091(4)(g).
 5031         (i) Membership.—Upon approval of a member’s an application
 5032  for disability benefits under this subsection, the member
 5033  applicant shall be transferred to the pension plan defined
 5034  benefit program of the Florida Retirement System, effective upon
 5035  his or her disability retirement effective date.
 5036         (j) Option to cancel.A member Any participant whose
 5037  application for disability benefits is approved may cancel the
 5038  his or her application if for disability benefits, provided that
 5039  the cancellation request is received by the division before a
 5040  disability retirement warrant has been deposited, cashed, or
 5041  received by direct deposit. Upon such cancellation:
 5042         1. The member’s participant’s transfer to the pension plan
 5043  defined benefit program under paragraph (i) shall be nullified;
 5044         2. The member participant shall be retroactively reinstated
 5045  in the investment plan Public Employee Optional Retirement
 5046  Program without hiatus;
 5047         3. All funds transferred to the Florida Retirement System
 5048  Trust Fund under paragraph (a) must shall be returned to the
 5049  member participant accounts from which the such funds were
 5050  drawn; and
 5051         4. The member participant may elect to receive the benefit
 5052  payable under the provisions of subsection (1) in lieu of
 5053  disability benefits as provided under this subsection.
 5054         (k) Recovery from disability.—
 5055         1. The division may require periodic reexaminations at the
 5056  expense of the disability program account of the Florida
 5057  Retirement System Trust Fund. Except as otherwise provided in
 5058  subparagraph 2., the requirements, procedures, and restrictions
 5059  relating to the conduct and review of such reexaminations,
 5060  discontinuation or termination of benefits, reentry into
 5061  employment, disability retirement after reentry into covered
 5062  employment, and all other matters relating to recovery from
 5063  disability shall be the same as provided are set forth under s.
 5064  121.091(4)(h).
 5065         2. Upon recovery from disability, the any recipient of
 5066  disability retirement benefits under this subsection shall be a
 5067  compulsory member of the investment plan Public Employee
 5068  Optional Retirement Program of the Florida Retirement System.
 5069  The net difference between the recipient’s original account
 5070  balance transferred to the Florida Retirement System Trust Fund,
 5071  including earnings, under paragraph (a) and total disability
 5072  benefits paid to such recipient, if any, shall be determined as
 5073  provided in sub-subparagraph a.
 5074         a. An amount equal to the total benefits paid shall be
 5075  subtracted from that portion of the transferred account balance
 5076  consisting of vested accumulations as described under s.
 5077  121.4501(6), if any, and an amount equal to the remainder of
 5078  benefit amounts paid, if any, shall then be subtracted from any
 5079  remaining portion consisting of nonvested accumulations as
 5080  described under s. 121.4501(6).
 5081         b. Amounts subtracted under sub-subparagraph a. must shall
 5082  be retained within the disability account of the Florida
 5083  Retirement System Trust Fund. Any remaining account balance
 5084  shall be transferred to the third-party administrator for
 5085  disposition as provided under sub-subparagraph c. or sub
 5086  subparagraph d., as appropriate.
 5087         c. If the recipient returns to covered employment,
 5088  transferred amounts must shall be deposited in individual
 5089  accounts under the investment plan Public Employee Optional
 5090  Retirement Program, as directed by the member participant.
 5091  Vested and nonvested amounts shall be separately accounted for
 5092  separately as provided in s. 121.4501(6).
 5093         d. If the recipient fails to return to covered employment
 5094  upon recovery from disability:
 5095         (I) Any remaining vested amount must shall be deposited in
 5096  individual accounts under the investment plan Public Employee
 5097  Optional Retirement Program, as directed by the member
 5098  participant, and is shall be payable as provided in subsection
 5099  (1).
 5100         (II) Any remaining nonvested amount must shall be held in a
 5101  suspense account and is shall be forfeitable after 5 years as
 5102  provided in s. 121.4501(6).
 5103         3. If present value was reassigned from the pension plan
 5104  defined benefit program to the disability program of the Florida
 5105  Retirement System as provided under subparagraph (a)2., the full
 5106  present value amount must shall be returned to the defined
 5107  benefit account within the Florida Retirement System Trust Fund
 5108  and the member’s affected individual’s associated retirement
 5109  credit under the pension plan must defined benefit program shall
 5110  be reinstated in full. Any benefit based upon such credit must
 5111  shall be calculated as provided in s. 121.091(4)(h)1.
 5112         (l) Nonadmissible causes of disability.—A member is
 5113  participant shall not be entitled to receive a disability
 5114  retirement benefit if the disability results from any injury or
 5115  disease sustained or inflicted as described in s. 121.091(4)(i).
 5116         (m) Disability retirement of justice or judge by order of
 5117  Supreme Court.—
 5118         1. If a member participant is a justice of the Supreme
 5119  Court, judge of a district court of appeal, circuit judge, or
 5120  judge of a county court who has served for the years equal to,
 5121  or greater than, the vesting requirement in s. 121.021(45) 6
 5122  years or more as an elected constitutional judicial officer,
 5123  including service as a judicial officer in any court abolished
 5124  pursuant to Art. V of the State Constitution, and who is retired
 5125  for disability by order of the Supreme Court upon recommendation
 5126  of the Judicial Qualifications Commission pursuant to s. 12, the
 5127  provisions of Art. V of the State Constitution, the member’s
 5128  participant’s Option 1 monthly disability benefit amount as
 5129  provided in s. 121.091(6)(a)1. shall be two-thirds of his or her
 5130  monthly compensation as of the member’s participant’s disability
 5131  retirement date. The member Such a participant may alternatively
 5132  elect to receive an actuarially adjusted disability retirement
 5133  benefit under any other option as provided in s. 121.091(6)(a),
 5134  or to receive the normal benefit payable under the Public
 5135  Employee Optional Retirement Program as set forth in subsection
 5136  (1).
 5137         2. If any justice or judge who is a member participant of
 5138  the investment plan Public Employee Optional Retirement Program
 5139  of the Florida Retirement System is retired for disability by
 5140  order of the Supreme Court upon recommendation of the Judicial
 5141  Qualifications Commission pursuant to s. 12, the provisions of
 5142  Art. V of the State Constitution and elects to receive a monthly
 5143  disability benefit under the provisions of this paragraph:
 5144         a. Any present value amount that was transferred to his or
 5145  her investment plan program account and all employer and
 5146  employee contributions made to such account on his or her
 5147  behalf, plus interest and earnings thereon, must shall be
 5148  transferred to and deposited in the disability account of the
 5149  Florida Retirement System Trust Fund; and
 5150         b. The monthly disability benefits payable under this
 5151  paragraph for any affected justice or judge retired from the
 5152  Florida Retirement System pursuant to Art. V of the State
 5153  Constitution shall be paid from the disability account of the
 5154  Florida Retirement System Trust Fund.
 5155         (n) Death of retiree or beneficiary.—Upon the death of a
 5156  disabled retiree or beneficiary of the retiree thereof who is
 5157  receiving monthly disability benefits under this subsection, the
 5158  monthly benefits shall be paid through the last day of the month
 5159  of death and shall terminate, or be adjusted, if applicable, as
 5160  of that date in accordance with the optional form of benefit
 5161  selected at the time of retirement. The department of Management
 5162  Services may adopt rules necessary to administer this paragraph.
 5163         (3) DEATH BENEFITS.—Under the Florida Retirement System
 5164  Investment Plan Public Employee Optional Retirement Program:
 5165         (a) Survivor benefits are shall be payable in accordance
 5166  with the following terms and conditions:
 5167         1. To the extent vested, benefits are shall be payable only
 5168  to a member’s participant’s beneficiary or beneficiaries as
 5169  designated by the member participant as provided in s.
 5170  121.4501(20).
 5171         2. Benefits shall be paid by the third-party administrator
 5172  or designated approved providers in accordance with the law, the
 5173  contracts, and any applicable state board rule or policy.
 5174         3. To receive benefits under this subsection, the member
 5175  participant must be deceased.
 5176         (b) In the event of a member’s participant’s death, all
 5177  vested accumulations as described in s. 121.4501(6), less
 5178  withholding taxes remitted to the Internal Revenue Service,
 5179  shall be distributed, as provided in paragraph (c) or as
 5180  described in s. 121.4501(20), as if the member participant
 5181  retired on the date of death. No other death benefits are shall
 5182  be available for survivors of members participants under the
 5183  Public Employee Optional Retirement Program, except for such
 5184  benefits, or coverage for such benefits, as are otherwise
 5185  provided by law or are separately provided afforded by the
 5186  employer, at the employer’s discretion.
 5187         (c) Upon receipt by the third-party administrator of a
 5188  properly executed application for distribution of benefits, the
 5189  total accumulated benefit is shall be payable by the third-party
 5190  administrator to the member’s participant’s surviving
 5191  beneficiary or beneficiaries, as:
 5192         1. A lump-sum distribution payable to the beneficiary or
 5193  beneficiaries, or to the deceased member’s participant’s estate;
 5194         2. An eligible rollover distribution, if permitted, on
 5195  behalf of the surviving spouse of a deceased member participant,
 5196  whereby all accrued benefits, plus interest and investment
 5197  earnings, are paid from the deceased member’s participant’s
 5198  account directly to the custodian of an eligible retirement
 5199  plan, as described in s. 402(c)(8)(B) of the Internal Revenue
 5200  Code, on behalf of the surviving spouse; or
 5201         3. A partial lump-sum payment whereby a portion of the
 5202  accrued benefit is paid to the deceased member’s participant’s
 5203  surviving spouse or other designated beneficiaries, less
 5204  withholding taxes remitted to the Internal Revenue Service, and
 5205  the remaining amount is transferred directly to the custodian of
 5206  an eligible retirement plan, if permitted, as described in s.
 5207  402(c)(8)(B) of the Internal Revenue Code, on behalf of the
 5208  surviving spouse. The proportions must be specified by the
 5209  member participant or the surviving beneficiary.
 5210  
 5211  This paragraph does not abrogate other applicable provisions of
 5212  state or federal law providing for payment of death benefits.
 5213         (4) LIMITATION ON LEGAL PROCESS.—The benefits payable to
 5214  any person under the Florida Retirement System Investment Plan
 5215  Public Employee Optional Retirement Program, and any
 5216  contributions accumulated under the plan such program, are not
 5217  subject to assignment, execution, attachment, or any legal
 5218  process, except for qualified domestic relations orders by a
 5219  court of competent jurisdiction, income deduction orders as
 5220  provided in s. 61.1301, and federal income tax levies.
 5221         Section 31. Section 121.5911, Florida Statutes, is amended
 5222  to read:
 5223         121.5911 Disability retirement program; qualified status;
 5224  rulemaking authority.—It is the intent of the Legislature that
 5225  the disability retirement program for members participants of
 5226  the Florida Retirement System Investment Plan Public Employee
 5227  Optional Retirement Program as created in this act must meet all
 5228  applicable requirements of federal law for a qualified plan. The
 5229  department of Management Services shall seek a private letter
 5230  ruling from the Internal Revenue Service on the disability
 5231  retirement program for participants of the Public Employee
 5232  Optional Retirement Program. Consistent with the private letter
 5233  ruling, the department of Management Services shall adopt any
 5234  necessary rules necessary required to maintain the qualified
 5235  status of the disability retirement program and the Florida
 5236  Retirement System Pension defined benefit Plan.
 5237         Section 32. Section 121.70, Florida Statutes, is amended to
 5238  read:
 5239         121.70 Legislative purpose and intent.—
 5240         (1) This part provides for a uniform system for funding
 5241  benefits provided under the Florida Retirement System Pension
 5242  Plan defined benefit program established under part I of this
 5243  chapter (referred to in this part as the pension plan defined
 5244  benefit program) and under the Florida Retirement System
 5245  Investment Plan Public Employee Optional Retirement Program
 5246  established under part II of this chapter (referred to in this
 5247  part as the investment plan optional retirement program). The
 5248  Legislature recognizes and declares that the Florida Retirement
 5249  System is a single retirement system, consisting of two
 5250  retirement plans and other nonintegrated programs. Employees and
 5251  employers participating in the Florida Retirement System
 5252  collectively shall be responsible for making contributions to
 5253  support the benefits provided afforded under both plans. The
 5254  employees and As provided in this part, employers participating
 5255  in the Florida Retirement System shall make contributions based
 5256  upon uniform contribution rates determined as a percentage of
 5257  the employee’s gross monthly compensation total payroll for the
 5258  employee’s each class or subclass of Florida Retirement System
 5259  membership, irrespective of the which retirement plan in which
 5260  the individual employee is enrolled employees may elect. This
 5261  shall be known as a uniform or blended contribution rate system.
 5262         (2) In establishing a uniform contribution rate system, it
 5263  is the intent of the Legislature to:
 5264         (a) Provide greater stability and certainty in financial
 5265  planning and budgeting for Florida Retirement System employers
 5266  by eliminating the fiscal instability that would be caused by
 5267  dual rates coupled with employee-selected plan participation;
 5268         (b) Provide greater fiscal equity and uniformity for system
 5269  employers by effectively distributing the financial burden and
 5270  benefit of short-term system deficits and surpluses,
 5271  respectively, in proportion to total system payroll; and
 5272         (c) Allow employees to make their retirement plan selection
 5273  decisions free of circumstances that may cause employers to
 5274  favor one plan choice over another.
 5275         Section 33. Section 121.71, Florida Statutes, is amended to
 5276  read:
 5277         121.71 Uniform rates; process; calculations; levy.—
 5278         (1) In conducting the system actuarial study required under
 5279  s. 121.031, the actuary shall follow all requirements specified
 5280  thereunder to determine, by Florida Retirement System employee
 5281  membership class, the dollar contribution amounts necessary for
 5282  the next forthcoming fiscal year for the pension plan defined
 5283  benefit program. In addition, the actuary shall determine, by
 5284  Florida Retirement System membership class, based on an estimate
 5285  for the next forthcoming fiscal year of the gross compensation
 5286  of employees participating in the investment plan optional
 5287  retirement program, the dollar contribution amounts necessary to
 5288  make the allocations required under ss. 121.72 and 121.73. For
 5289  each employee membership class and subclass, the actuarial study
 5290  must shall establish a uniform rate necessary to fund the
 5291  benefit obligations under both Florida Retirement System
 5292  retirement plans by dividing the sum of total dollars required
 5293  by the estimated gross compensation of members in both plans.
 5294         (2) Based on the uniform rates set forth in subsections
 5295  subsection (3), (4), and (5), employees and employers shall make
 5296  monthly contributions to the Division of Retirement as required
 5297  in s. 121.061(1), which shall initially deposit the funds into
 5298  the Florida Retirement System Contributions Clearing Trust Fund.
 5299  A change in a contribution rate is effective the first day of
 5300  the month for which a full month’s employer and employee
 5301  contribution may be made on or after the beginning date of the
 5302  change. Beginning July 1, 2011, each employee shall contribute
 5303  the contributions required in subsection (3). The employer shall
 5304  deduct the contribution from the employee’s monthly salary, and
 5305  the contribution shall be submitted to the division. These
 5306  contributions shall be reported as employer-paid employee
 5307  contributions, and credited to the account of the employee. The
 5308  contributions shall be deducted from the employee’s salary
 5309  before the computation of applicable federal taxes and treated
 5310  as employer contributions under 26 U.S.C. s. 414(h)(2). The
 5311  employer specifies that the contributions, although designated
 5312  as employee contributions, are being paid by the employer in
 5313  lieu of contributions by the employee. The employee does not
 5314  have the option of choosing to receive the contributed amounts
 5315  directly instead of having them paid by the employer to the
 5316  plan. Such contributions are mandatory and each employee is
 5317  considered to have consented to payroll deductions. Payment of
 5318  an employee’s salary or wages, less the contribution, is a full
 5319  and complete discharge and satisfaction of all claims and
 5320  demands for the service rendered by employees during the period
 5321  covered by the payment, except their claims to the benefits to
 5322  which they may be entitled under this chapter.
 5323         (3) Required employee retirement contribution rates for
 5324  each membership class and subclass of the Florida Retirement
 5325  System for both retirement plans are as follows:
 5326  
 5327  Membership Class                Percentage of Gross Compensation,Effective July 1, 2011
 5328  Regular Class                                3.00%             
 5329  Special Risk Class                           3.00%             
 5330  Special RiskAdministrative Support Class             3.00%             
 5331  Elected Officers’ Class—Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders             3.00%             
 5332  Elected Officers’ Class—Justices, Judges             3.00%             
 5333  Elected Officers’ Class—County Elected Officers             3.00%             
 5334  Senior Management Service Class              3.00%             
 5335  DROP                                         0.00%             
 5336         (4)(3) Required employer retirement contribution rates for
 5337  each membership class and subclass of the Florida Retirement
 5338  System for both retirement plans are as follows:
 5339  
 5340  Membership Class                Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009Percentage ofGrossCompensation,EffectiveJuly 1, 2012 2010
 5341                                  
 5342  Regular Class                     3.28% 8.69%     3.28% 9.63%  
 5343  Special Risk Class               10.21% 19.76%   10.21% 22.11% 
 5344  Special Risk Administrative Support Class  4.07% 11.39%   4.07% 12.10%  
 5345  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders  7.02% 13.32%   7.02% 15.20%  
 5346  Elected Officers’ Class— Justices, Judges  9.78% 18.40%   9.78% 20.65%  
 5347  Elected Officers’ Class— County Elected Officers  9.27% 15.37%   9.27% 17.50%  
 5348  Senior Management Service Class   4.81% 11.96%   4.81% 13.43%  
 5349  DROP                              3.31% 9.80%    3.31% 11.14%  
 5350         (5) In order to address unfunded actuarial liabilities of
 5351  the system, the required employer retirement contribution rates
 5352  for each membership class and subclass of the Florida Retirement
 5353  System for both retirement plans are as follows:
 5354  Membership Class            Percentage ofGrossCompensation,EffectiveJuly 1, 2011Percentage ofGrossCompensation,EffectiveJuly 1, 2012
 5355  Regular Class                            0.49%          2.16%       
 5356  Special Risk Class             2.75%     8.21%   
 5357  Special Risk Administrative Support Class  0.83%     21.40%   
 5358  Elected Officers’ Class—Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders  0.88%     21.76%   
 5359  Elected Officers’ Class—Justices, Judges  0.77%     12.86%   
 5360  Elected Officers’ Class—County Elected Officers  0.73%     22.05%   
 5361  Senior Management Service Class  0.32%     10.51%   
 5362  DROP                0.00%      6.36%   
 5363         (6) If a member is reported under an incorrect membership
 5364  class and the amount of contributions reported and remitted are
 5365  less than the amount required, the employer shall owe the
 5366  difference, plus the delinquent fee, of 1 percent for each
 5367  calendar month or part thereof that the contributions should
 5368  have been paid. The delinquent assessment may not be waived. If
 5369  the contributions reported and remitted are more than the amount
 5370  required, the employer shall receive a credit to be applied
 5371  against future contributions owed.
 5372         (7)(4) The state actuary shall recognize and use an
 5373  appropriate level of available excess assets of the Florida
 5374  Retirement System Trust Fund to offset the difference between
 5375  the normal costs of the Florida Retirement System and the
 5376  statutorily prescribed contribution rates.
 5377         Section 34. Section 121.72, Florida Statutes, is amended to
 5378  read:
 5379         121.72 Allocations to investment plan member optional
 5380  retirement program participant accounts; percentage amounts.—
 5381         (1) The allocations established in subsection (4) shall
 5382  fund retirement benefits under the investment plan optional
 5383  retirement program and shall be transferred monthly by the
 5384  Division of Retirement from the Florida Retirement System
 5385  Contributions Clearing Trust Fund to the third-party
 5386  administrator for deposit in each participating employee’s
 5387  individual account based on the membership class of the
 5388  participant.
 5389         (2) The allocations are stated as a percentage of each
 5390  investment plan member’s optional retirement program
 5391  participant’s gross compensation for the calendar month. A
 5392  change in a contribution percentage is effective the first day
 5393  of the month for which retirement contributions a full month’s
 5394  employer contribution may be made on or after the beginning date
 5395  of the change. Contribution percentages may be modified by
 5396  general law.
 5397         (3) Employer and employee participant contributions to
 5398  member participant accounts shall be accounted for separately.
 5399  Participant contributions may be made only if expressly
 5400  authorized by law. Interest and investment earnings on
 5401  contributions shall accrue on a tax-deferred basis until
 5402  proceeds are distributed.
 5403         (4) Effective July 1, 2002, allocations from the Florida
 5404  Retirement System Contributions Clearing Trust Fund to
 5405  investment plan member optional retirement program participant
 5406  accounts are shall be as follows:
 5407  Membership Class                       Percentage of Gross Compensation
 5408  Regular Class                                      9.00%            
 5409  Special Risk Class                                20.00%            
 5410  Special Risk Administrative Support Class           11.35%            
 5411  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders           13.40%            
 5412  Elected Officers’ Class— Justices, Judges           18.90%            
 5413  Elected Officers’ Class— County Elected Officers           16.20%            
 5414  Senior Management Service Class                   10.95%            
 5415         Section 35. Section 121.73, Florida Statutes, is amended to
 5416  read:
 5417         121.73 Allocations for member optional retirement program
 5418  participant disability coverage; percentage amounts.—
 5419         (1) The allocations established in subsection (3) shall be
 5420  used to provide disability coverage for members participants in
 5421  the investment plan optional retirement program and shall be
 5422  transferred monthly by the Division of Retirement from the
 5423  Florida Retirement System Contributions Clearing Trust Fund to
 5424  the disability account of the Florida Retirement System Trust
 5425  Fund.
 5426         (2) The allocations are stated as a percentage of each
 5427  investment plan member’s optional retirement program
 5428  participant’s gross compensation for the calendar month. A
 5429  change in a contribution percentage is effective the first day
 5430  of the month for which retirement contributions a full month’s
 5431  employer contribution may be made on or after the beginning date
 5432  of the change. Contribution percentages may be modified by
 5433  general law.
 5434         (3) Effective July 1, 2002, allocations from the Florida
 5435  Retirement System Contributions FRS Contribution Clearing Trust
 5436  Fund to provide disability coverage for members participants in
 5437  the investment plan optional retirement program, and to offset
 5438  the costs of administering said coverage, are shall be as
 5439  follows:
 5440  Membership Class                       Percentage of Gross Compensation
 5441  Regular Class                                      0.25%            
 5442  Special Risk Class                                 1.33%            
 5443  Special Risk Administrative Support Class            0.45%            
 5444  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders            0.41%            
 5445  Elected Officers’ Class— Justices, Judges            0.73%            
 5446  Elected Officers’ Class— County Elected Officers            0.41%            
 5447  Senior Management Service Class                    0.26%            
 5448         Section 36. Section 121.74, Florida Statutes, is amended to
 5449  read:
 5450         121.74 Administrative and educational expenses.—In addition
 5451  to contributions required under ss. s. 121.71 and 121.73,
 5452  effective July 1, 2010, through June 30, 2014, employers
 5453  participating in the Florida Retirement System shall contribute
 5454  an amount equal to 0.03 percent of the payroll reported for each
 5455  class or subclass of Florida Retirement System membership.;
 5456  Effective July 1, 2014, the contribution rate shall be 0.04
 5457  percent of the payroll reported for each class or subclass of
 5458  membership. The amount contributed shall be transferred by the
 5459  Division of Retirement from the Florida Retirement System
 5460  Contributions Clearing Trust Fund to the State Board of
 5461  Administration’s Administrative Trust Fund to offset the costs
 5462  of administering the investment plan optional retirement program
 5463  and the costs of providing educational services to members of
 5464  the Florida Retirement System participants in the defined
 5465  benefit program and the optional retirement program. Approval of
 5466  the trustees is required before the expenditure of these funds.
 5467  Payments for third-party administrative or educational expenses
 5468  shall be made only pursuant to the terms of the approved
 5469  contracts for such services.
 5470         Section 37. Section 121.75, Florida Statutes, is amended to
 5471  read:
 5472         121.75 Allocation for pension plan defined benefit
 5473  program.—After making the transfers required pursuant to ss.
 5474  121.71, 121.72, 121.73, and 121.74, the monthly balance of funds
 5475  in the Florida Retirement System Contributions Clearing Trust
 5476  Fund shall be transferred to the Florida Retirement System Trust
 5477  Fund to pay the costs of providing pension plan defined benefit
 5478  program benefits and plan administrative costs under the pension
 5479  plan defined benefit program.
 5480         Section 38. Section 121.77, Florida Statutes, is amended to
 5481  read:
 5482         121.77 Deductions from member participant accounts.—The
 5483  State Board of Administration may authorize the third-party
 5484  administrator to deduct reasonable fees and apply appropriate
 5485  charges to investment plan member optional retirement program
 5486  participant accounts. In no event may shall administrative and
 5487  educational expenses exceed the portion of employer
 5488  contributions earmarked for such expenses under this part,
 5489  except for reasonable administrative charges assessed against
 5490  member participant accounts of persons for whom no employer
 5491  contributions are made during the calendar quarter. Investment
 5492  management fees shall be deducted from member participant
 5493  accounts, pursuant to the terms of the contract between the
 5494  provider and the board.
 5495         Section 39. Section 121.78, Florida Statutes, is amended to
 5496  read:
 5497         121.78 Payment and distribution of contributions.—
 5498         (1) Contributions made pursuant to this part shall be paid
 5499  by the employer, including the employee contribution, to the
 5500  Division of Retirement by electronic funds transfer no later
 5501  than the 5th working day of the month immediately following the
 5502  month during which the payroll period ended. Accompanying
 5503  payroll data must be transmitted to the division concurrent with
 5504  the contributions.
 5505         (2) The division, the State Board of Administration, and
 5506  the third-party administrator, as applicable, shall ensure that
 5507  the contributions are distributed to the appropriate trust funds
 5508  or participant accounts in a timely manner.
 5509         (3)(a) Employee and employer contributions and accompanying
 5510  payroll data received after the 5th working day of the month are
 5511  considered late. The employer shall be assessed by the Division
 5512  of Retirement a penalty of 1 percent of the contributions due
 5513  for each calendar month or part thereof that the contributions
 5514  or accompanying payroll data are late. Proceeds from the 1
 5515  percent 1-percent assessment against contributions made on
 5516  behalf of members participants of the pension plan must defined
 5517  benefit program shall be deposited in the Florida Retirement
 5518  System Trust Fund, and proceeds from the 1-percent assessment
 5519  against contributions made on behalf of members participants of
 5520  the investment plan optional retirement program shall be
 5521  transferred to the third-party administrator for deposit into
 5522  member participant accounts, as provided in paragraph (c) (b).
 5523         (b) Retirement contributions paid for a prior period shall
 5524  be charged a delinquent fee of 1 percent for each calendar month
 5525  or part thereof that the contributions should have been paid.
 5526  This includes prior period contributions due to incorrect wages
 5527  and contributions from an earlier report or wages and
 5528  contributions that should have been reported but were not. The
 5529  delinquent assessments may not be waived.
 5530         (c)(b) If employee contributions or contributions made by
 5531  an employer on behalf of members participants of the investment
 5532  plan optional retirement program or accompanying payroll data
 5533  are not received within the calendar month they are due,
 5534  including, but not limited to, contribution adjustments as a
 5535  result of employer errors or corrections, and if that
 5536  delinquency results in market losses to members participants,
 5537  the employer shall reimburse each member’s participant’s account
 5538  for market losses resulting from the late contributions. If a
 5539  member participant has terminated employment and taken a
 5540  distribution, the member participant is responsible for
 5541  returning any excess contributions erroneously provided by
 5542  employers, adjusted for any investment gain or loss incurred
 5543  during the period such excess contributions were in the member’s
 5544  participant’s account. The state board or its designated agent
 5545  shall communicate to terminated members participants any
 5546  obligation to repay such excess contribution amounts. However,
 5547  the state board, its designated agents, the Florida Retirement
 5548  System Investment Plan Public Employee Optional Retirement
 5549  Program Trust Fund, the department, or the Florida Retirement
 5550  System Trust Fund may not incur any loss or gain as a result of
 5551  an employer’s correction of such excess contributions. The
 5552  third-party administrator, hired by the state board pursuant to
 5553  s. 121.4501(8), shall calculate the market losses for each
 5554  affected member participant. If contributions made on behalf of
 5555  members participants of the investment plan optional retirement
 5556  program or accompanying payroll data are not received within the
 5557  calendar month due, the employer shall also pay the cost of the
 5558  third-party administrator’s calculation and reconciliation
 5559  adjustments resulting from the late contributions. The third
 5560  party administrator shall notify the employer of the results of
 5561  the calculations and the total amount due from the employer for
 5562  such losses and the costs of calculation and reconciliation. The
 5563  employer shall remit to the Division of Retirement the amount
 5564  due within 30 working days after the date of the penalty notice
 5565  sent by the division. The division shall transfer that amount to
 5566  the third-party administrator, which shall deposit proceeds from
 5567  the 1-percent assessment and from individual market losses into
 5568  member participant accounts, as appropriate. The state board may
 5569  adopt rules to administer the provisions regarding late
 5570  contributions, late submission of payroll data, the process for
 5571  reimbursing member participant accounts for resultant market
 5572  losses, and the penalties charged to the employers.
 5573         (d) If employee contributions reported by an employer on
 5574  behalf of members are reduced as a result of employer errors or
 5575  corrections, and the member has terminated employment and taken
 5576  a refund or distribution, the employer shall be billed and is
 5577  responsible for recovering from the member any excess
 5578  contributions erroneously provided by the employer.
 5579         (e)(c) Delinquency fees specified in paragraph (a) may be
 5580  waived by the division of Retirement, with regard to pension
 5581  plan defined benefit program contributions, and by the state
 5582  board, with regard to investment plan optional retirement
 5583  program contributions, only if, in the opinion of the division
 5584  or the board, as appropriate, exceptional circumstances beyond
 5585  the employer’s control prevented remittance by the prescribed
 5586  due date notwithstanding the employer’s good faith efforts to
 5587  effect delivery. Such a waiver of delinquency may be granted an
 5588  employer only once each plan state fiscal year.
 5589         (f) If the employer submits excess employer or employee
 5590  contributions, the employer shall receive a credit to be applied
 5591  against future contributions owed. The employer is responsible
 5592  for reimbursing the member for any excess contributions
 5593  submitted if any return of such an erroneous excess pretax
 5594  contribution by the program is made within 1 year after making
 5595  erroneous contributions or such other period allowed under
 5596  applicable Internal Revenue guidance.
 5597         (g)(d) If contributions made by an employer on behalf of
 5598  members participants in the investment plan optional retirement
 5599  program are delayed in posting to member participant accounts
 5600  due to acts of God beyond the control of the Division of
 5601  Retirement, the state board, or the third-party administrator,
 5602  as applicable, market losses resulting from the late
 5603  contributions are not payable to the members participants.
 5604         Section 40. Paragraph (a) of subsection (4) and paragraph
 5605  (b) of subsection (5) of section 1012.875, Florida Statutes, are
 5606  amended, and subsection (7) is added to that section, to read:
 5607         1012.875 State Community College System Optional Retirement
 5608  Program.—Each community college may implement an optional
 5609  retirement program, if such program is established therefor
 5610  pursuant to s. 1001.64(20), under which annuity or other
 5611  contracts providing retirement and death benefits may be
 5612  purchased by, and on behalf of, eligible employees who
 5613  participate in the program, in accordance with s. 403(b) of the
 5614  Internal Revenue Code. Except as otherwise provided herein, this
 5615  retirement program, which shall be known as the State Community
 5616  College System Optional Retirement Program, may be implemented
 5617  and administered only by an individual community college or by a
 5618  consortium of community colleges.
 5619         (4)(a)1.Through June 30, 2011, each college must
 5620  contribute on behalf of each program member participant an
 5621  amount equal to 10.43 percent of the employee’s participant’s
 5622  gross monthly compensation.
 5623         2. Effective July 1, 2011, each member shall contribute an
 5624  amount equal to the employee contribution required under s.
 5625  121.71(3). The employer shall contribute on behalf of each
 5626  program member an amount equal to the difference between 10.43
 5627  percent of the employee’s gross monthly compensation and the
 5628  employee’s required contribution based on the employee’s gross
 5629  monthly compensation.
 5630         3. The college shall deduct an amount approved by the
 5631  district board of trustees of the college to provide for the
 5632  administration of the optional retirement program. Payment of
 5633  this contribution must be made either directly by the college or
 5634  through the program administrator to the designated company
 5635  contracting for payment of benefits to the program member
 5636  participant.
 5637         (5)
 5638         (b) Benefits are payable under the optional retirement
 5639  program to program participants or their beneficiaries, and the
 5640  benefits must be paid only by the designated company in
 5641  accordance with the terms of the contracts applicable to the
 5642  program participant. Benefits shall accrue in individual
 5643  accounts that are participant-directed, portable, and funded by
 5644  employer and employee contributions and the earnings thereon.
 5645  Benefits funded by employer and employee contributions are
 5646  payable in accordance with the following terms and conditions:
 5647         1. Benefits shall be payable only to a participant, to his
 5648  or her beneficiaries, or to his or her estate, as designated by
 5649  the participant.
 5650         2. Benefits shall be paid by the provider company or
 5651  companies in accordance with the law, the provisions of the
 5652  contract, and any applicable employer rule or policy.
 5653         3. In the event of a participant’s death, moneys
 5654  accumulated by, or on behalf of, the participant, less
 5655  withholding taxes remitted to the Internal Revenue Service, if
 5656  any, shall be distributed to the participant’s designated
 5657  beneficiary or beneficiaries, or to the participant’s estate, as
 5658  if the participant retired on the date of death as provided in
 5659  paragraph (d). No other death benefits are shall be available
 5660  for survivors of participants under the optional retirement
 5661  program except for such benefits, or coverage for such benefits,
 5662  as are separately afforded by the employer at the employer’s
 5663  discretion.
 5664         (7) Benefits, including employee contributions, are not
 5665  payable for employee hardships, unforeseeable emergencies,
 5666  loans, medical expenses, educational expenses, purchase of a
 5667  principal residence, payments necessary to prevent eviction or
 5668  foreclosure on an employee’s principal residence, or any other
 5669  reason before termination from all employment relationships with
 5670  participating employers for 3 calendar months.
 5671         Section 41. (1) Effective upon this act becoming a law, the
 5672  State Board of Administration and the Department of Management
 5673  Services shall request, as soon as practicable, a determination
 5674  letter and private letter ruling from the United States Internal
 5675  Revenue Service. If the United States Internal Revenue Service
 5676  refuses to act upon a request for a private letter ruling, then
 5677  a legal opinion from a qualified tax attorney or firm may be
 5678  substituted for such private letter ruling.
 5679         (2) If the board or the department receives notification
 5680  from the United States Internal Revenue Service that this act or
 5681  any portion of this act will cause the Florida Retirement
 5682  System, or a portion thereof, to be disqualified for tax
 5683  purposes under the Internal Revenue Code, then the portion that
 5684  will cause the disqualification does not apply. Upon receipt of
 5685  such notice, the state board and the department shall notify the
 5686  presiding officers of the Legislature.
 5687         Section 42. The Legislature finds that a proper and
 5688  legitimate state purpose is served when employees and retirees
 5689  of the state and its political subdivisions, and the dependents,
 5690  survivors, and beneficiaries of such employees and retirees, are
 5691  extended the basic protections afforded by governmental
 5692  retirement systems. These persons must be provided benefits that
 5693  are fair and adequate and that are managed, administered, and
 5694  funded in an actuarially sound manner, as required by s. 14,
 5695  Article X of the State Constitution and part VII of chapter 112,
 5696  Florida Statutes. Therefore, the Legislature determines and
 5697  declares that this act fulfills an important state interest.
 5698         Section 43. For the 2011-2012 fiscal year, the sums of
 5699  $207,070 of recurring funds and $31,184 of nonrecurring funds
 5700  from the Florida Retirement System Operating Trust Fund are
 5701  appropriated to, and four full-time equivalent positions are
 5702  authorized for, the Division of Retirement within the Department
 5703  of Management Services for the purpose of implementing this act.
 5704         Section 44. Except as otherwise expressly provided in this
 5705  act and except for this section, which shall take effect upon
 5706  this act becoming a law, this act shall take effect July 1,
 5707  2011.