Florida Senate - 2013 CS for SB 1392
By the Committee on Governmental Oversight and Accountability;
and Senator Simpson
585-02415-13 20131392c1
1 A bill to be entitled
2 An act relating to retirement; amending s. 121.021,
3 F.S.; revising the definition of “vested” or
4 “vesting”; providing that a member initially enrolled
5 in the Florida Retirement System after a certain date
6 is vested in the pension plan after 10 years of
7 creditable service; amending s. 121.051, F.S.;
8 providing for compulsory membership in the Florida
9 Retirement System Investment Plan for employees in the
10 Elected Officers’ Class or the Senior Management
11 Service Class initially enrolled after a specified
12 date; conforming cross-references to changes made by
13 the act; amending s. 121.052, F.S.; prohibiting
14 members of the Elected Officers’ Class from joining
15 the Senior Management Service Class after a specified
16 date; amending s. 121.055, F.S.; prohibiting an
17 elected official eligible for membership in the
18 Elected Officers’ Class from enrolling in the Senior
19 Management Service Class or in the Senior Management
20 Service Optional Annuity Program; closing the Senior
21 Management Optional Annuity Program to new members
22 after a specified date; amending s. 121.091, F.S.;
23 providing that certain members are entitled to a
24 monthly disability benefit; revising provisions to
25 conform to changes made by the act; amending s.
26 121.4501, F.S.; requiring certain employees initially
27 enrolled in the Florida Retirement System on or after
28 a specified date to be compulsory members of the
29 investment plan; revising the definition of “member”
30 or “employee”; revising a provision relating to
31 acknowledgement of an employee’s election to
32 participate in the investment plan; placing certain
33 employees in the pension plan from their date of hire
34 until they are automatically enrolled in the
35 investment plan or timely elect enrollment in the
36 pension plan; authorizing certain employees to elect
37 to participate in the pension plan, rather than the
38 default investment plan, within a specified time;
39 providing for the transfer of certain contributions;
40 revising the education component; deleting the
41 obligation of system employers to communicate the
42 existence of both retirement plans; conforming
43 provisions and cross-references to changes made by the
44 act; amending s. 121.591, F.S.; revising provisions
45 relating to disability retirement benefits; amending
46 s. 121.71, F.S.; decreasing the employee retirement
47 contribution rates for investment plan members;
48 amending ss. 121.35, 238.072, 413.051, and 1012.875,
49 F.S.; conforming cross-references; providing for
50 contribution rate increases to fund the changes made
51 by this act; directing the Division of Law Revision
52 and Information to adjust contribution rates set forth
53 in s. 121.071, F.S.; providing that the act fulfills
54 an important state interest; providing an effective
55 date.
56
57 Be It Enacted by the Legislature of the State of Florida:
58
59 Section 1. Subsection (45) of section 121.021, Florida
60 Statutes, is amended to read:
61 121.021 Definitions.—The following words and phrases as
62 used in this chapter have the respective meanings set forth
63 unless a different meaning is plainly required by the context:
64 (45) “Vested” or “vesting” means the guarantee that a
65 member is eligible to receive a future retirement benefit upon
66 completion of the required years of creditable service for the
67 employee’s class of membership, even though the member may have
68 terminated covered employment before reaching normal or early
69 retirement date. Being vested does not entitle a member to a
70 disability benefit. Provisions governing entitlement to
71 disability benefits are set forth under s. 121.091(4).
72 (a) Effective July 1, 2001, through June 30, 2011, a 6-year
73 vesting requirement shall be implemented for the Florida
74 Retirement System Pension Plan:
75 1. Any member employed in a regularly established position
76 on July 1, 2001, who completes or has completed a total of 6
77 years of creditable service is considered vested.
78 2. Any member initially enrolled in the Florida Retirement
79 System before July 1, 2001, but not employed in a regularly
80 established position on July 1, 2001, shall be deemed vested
81 upon completion of 6 years of creditable service if such member
82 is employed in a covered position for at least 1 work year after
83 July 1, 2001. However, a member is not required to complete more
84 years of creditable service than would have been required for
85 that member to vest under retirement laws in effect before July
86 1, 2001.
87 3. Any member initially enrolled in the Florida Retirement
88 System on July 1, 2001, through June 30, 2011, shall be deemed
89 vested upon completion of 6 years of creditable service.
90 (b) Any member initially enrolled in the Florida Retirement
91 System on or after July 1, 2011, through December 31, 2013,
92 shall be vested in the pension plan upon completion of 8 years
93 of creditable service.
94 (c) Any member initially enrolled in the Florida Retirement
95 System on or after January 1, 2014, shall be vested in the
96 pension plan upon completion of 10 years of creditable service.
97 Section 2. Paragraph (c) of subsection (2) of section
98 121.051, Florida Statutes, is amended, present subsections (3)
99 through (9) of that section are renumbered as subsections (4)
100 through (10), respectively, and a new subsection (3) is added to
101 that section, to read:
102 121.051 Participation in the system.—
103 (2) OPTIONAL PARTICIPATION.—
104 (c) Employees of public community colleges or charter
105 technical career centers sponsored by public community colleges,
106 designated in s. 1000.21(3), who are members of the Regular
107 Class of the Florida Retirement System and who comply with the
108 criteria set forth in this paragraph and s. 1012.875 may, in
109 lieu of participating in the Florida Retirement System, elect to
110 withdraw from the system altogether and participate in the State
111 Community College System Optional Retirement Program provided by
112 the employing agency under s. 1012.875.
113 1.a. Through June 30, 2001, the cost to the employer for
114 benefits under the optional retirement program equals the normal
115 cost portion of the employer retirement contribution which would
116 be required if the employee were a member of the pension plan’s
117 Regular Class, plus the portion of the contribution rate
118 required by s. 112.363(8) which would otherwise be assigned to
119 the Retiree Health Insurance Subsidy Trust Fund.
120 b. Effective July 1, 2001, through June 30, 2011, each
121 employer shall contribute on behalf of each member of the
122 optional program an amount equal to 10.43 percent of the
123 employee’s gross monthly compensation. The employer shall deduct
124 an amount for the administration of the program.
125 c. Effective July 1, 2011, through June 30, 2012, each
126 member shall contribute an amount equal to the employee
127 contribution required under s. 121.71(3)(a). The employer shall
128 contribute on behalf of each program member an amount equal to
129 the difference between 10.43 percent of the employee’s gross
130 monthly compensation and the employee’s required contribution
131 based on the employee’s gross monthly compensation.
132 d. Effective July 1, 2012, each member shall contribute an
133 amount equal to the employee contribution required under s.
134 121.71(3)(a). The employer shall contribute on behalf of each
135 program member an amount equal to the difference between 8.15
136 percent of the employee’s gross monthly compensation and the
137 employee’s required contribution based on the employee’s gross
138 monthly compensation.
139 e. The employer shall contribute an additional amount to
140 the Florida Retirement System Trust Fund equal to the unfunded
141 actuarial accrued liability portion of the Regular Class
142 contribution rate.
143 2. The decision to participate in the optional retirement
144 program is irrevocable as long as the employee holds a position
145 eligible for participation, except as provided in subparagraph
146 3. Any service creditable under the Florida Retirement System is
147 retained after the member withdraws from the system; however,
148 additional service credit in the system may not be earned while
149 a member of the optional retirement program.
150 3. An employee who has elected to participate in the
151 optional retirement program shall have one opportunity, at the
152 employee’s discretion, to transfer from the optional retirement
153 program to the pension plan of the Florida Retirement System or
154 to the investment plan established under part II of this
155 chapter, subject to the terms of the applicable optional
156 retirement program contracts.
157 a. If the employee chooses to move to the investment plan,
158 any contributions, interest, and earnings creditable to the
159 employee under the optional retirement program are retained by
160 the employee in the optional retirement program, and the
161 applicable provisions of s. 121.4501(4) govern the election.
162 b. If the employee chooses to move to the pension plan of
163 the Florida Retirement System, the employee shall receive
164 service credit equal to his or her years of service under the
165 optional retirement program.
166 (I) The cost for such credit is the amount representing the
167 present value of the employee’s accumulated benefit obligation
168 for the affected period of service. The cost shall be calculated
169 as if the benefit commencement occurs on the first date the
170 employee becomes eligible for unreduced benefits, using the
171 discount rate and other relevant actuarial assumptions that were
172 used to value the Florida Retirement System Pension Plan
173 liabilities in the most recent actuarial valuation. The
174 calculation must include any service already maintained under
175 the pension plan in addition to the years under the optional
176 retirement program. The present value of any service already
177 maintained must be applied as a credit to total cost resulting
178 from the calculation. The division must ensure that the transfer
179 sum is prepared using a formula and methodology certified by an
180 enrolled actuary.
181 (II) The employee must transfer from his or her optional
182 retirement program account and from other employee moneys as
183 necessary, a sum representing the present value of the
184 employee’s accumulated benefit obligation immediately following
185 the time of such movement, determined assuming that attained
186 service equals the sum of service in the pension plan and
187 service in the optional retirement program.
188 4. Participation in the optional retirement program is
189 limited to employees who satisfy the following eligibility
190 criteria:
191 a. The employee is otherwise eligible for membership or
192 renewed membership in the Regular Class of the Florida
193 Retirement System, as provided in s. 121.021(11) and (12) or s.
194 121.122.
195 b. The employee is employed in a full-time position
196 classified in the Accounting Manual for Florida’s Public
197 Community Colleges as:
198 (I) Instructional; or
199 (II) Executive Management, Instructional Management, or
200 Institutional Management and the community college determines
201 that recruiting to fill a vacancy in the position is to be
202 conducted in the national or regional market, and the duties and
203 responsibilities of the position include the formulation,
204 interpretation, or implementation of policies, or the
205 performance of functions that are unique or specialized within
206 higher education and that frequently support the mission of the
207 community college.
208 c. The employee is employed in a position not included in
209 the Senior Management Service Class of the Florida Retirement
210 System as described in s. 121.055.
211 5. Members of the program are subject to the same
212 reemployment limitations, renewed membership provisions, and
213 forfeiture provisions applicable to regular members of the
214 Florida Retirement System under ss. 121.091(9), 121.122, and
215 121.091(5), respectively. A member who receives a program
216 distribution funded by employer and required employee
217 contributions is deemed to be retired from a state-administered
218 retirement system if the member is subsequently employed with an
219 employer that participates in the Florida Retirement System.
220 6. Eligible community college employees are compulsory
221 members of the Florida Retirement System until, pursuant to s.
222 1012.875, a written election to withdraw from the system and
223 participate in the optional retirement program is filed with the
224 program administrator and received by the division.
225 a. A community college employee whose program eligibility
226 results from initial employment shall be enrolled in the
227 optional retirement program retroactive to the first day of
228 eligible employment. The employer and employee retirement
229 contributions paid through the month of the employee plan change
230 shall be transferred to the community college to the employee’s
231 optional program account, and, effective the first day of the
232 next month, the employer shall pay the applicable contributions
233 based upon subparagraph 1.
234 b. A community college employee whose program eligibility
235 is due to the subsequent designation of the employee’s position
236 as one of those specified in subparagraph 4., or due to the
237 employee’s appointment, promotion, transfer, or reclassification
238 to a position specified in subparagraph 4., must be enrolled in
239 the program on the first day of the first full calendar month
240 that such change in status becomes effective. The employer and
241 employee retirement contributions paid from the effective date
242 through the month of the employee plan change must be
243 transferred to the community college to the employee’s optional
244 program account, and, effective the first day of the next month,
245 the employer shall pay the applicable contributions based upon
246 subparagraph 1.
247 7. Effective July 1, 2003, through December 31, 2008, any
248 member of the optional retirement program who has service credit
249 in the pension plan of the Florida Retirement System for the
250 period between his or her first eligibility to transfer from the
251 pension plan to the optional retirement program and the actual
252 date of transfer may, during employment, transfer to the
253 optional retirement program a sum representing the present value
254 of the accumulated benefit obligation under the defined benefit
255 retirement program for the period of service credit. Upon
256 transfer, all service credit previously earned under the pension
257 plan during this period is nullified for purposes of entitlement
258 to a future benefit under the pension plan.
259 (3) INVESTMENT PLAN MEMBERSHIP COMPULSORY.—
260 (a) Employees initially enrolled on or after January 1,
261 2014, in positions covered by the Elected Officers’ Class or the
262 Senior Management Service Class are compulsory members of the
263 investment plan, except those eligible to withdraw from the
264 system under s. 121.052(3)(d) or s. 121.055(1)(b)2., or those
265 eligible for optional retirement programs under paragraph
266 (1)(a), paragraph (2)(c), or s. 121.35. Investment plan
267 membership continues if there is subsequent employment in a
268 position covered by another membership class. Membership in the
269 pension plan is not permitted except as provided in s.
270 121.591(2). Employees initially enrolled in the Florida
271 Retirement System prior to January 1, 2014, may retain their
272 membership in the pension plan or investment plan and are
273 eligible to use the election opportunity specified in s.
274 121.4501(4)(f). Employees initially enrolled on or after January
275 1, 2014, are not eligible to use the election opportunity
276 specified in s. 121.4501(4)(f).
277 (b) Employees eligible to withdraw from the system under s.
278 121.052(3)(d) or s. 121.055(1)(b)2. may choose to withdraw from
279 the system or to participate in the investment plan as provided
280 in these sections. Employees eligible for optional retirement
281 programs under paragraph (2)(c) or s. 121.35 may choose to
282 participate in the optional retirement program or the investment
283 plan as provided in this paragraph or this section. Eligible
284 employees required to participate pursuant to (1)(a) in the
285 optional retirement program as provided under s. 121.35 must
286 participate in the investment plan when employed in a position
287 not eligible for the optional retirement program.
288 Section 3. Paragraph (c) of subsection (3) of section
289 121.052, Florida Statutes, is amended to read:
290 121.052 Membership class of elected officers.—
291 (3) PARTICIPATION AND WITHDRAWAL, GENERALLY.—Effective July
292 1, 1990, participation in the Elected Officers’ Class shall be
293 compulsory for elected officers listed in paragraphs (2)(a)-(d)
294 and (f) assuming office on or after said date, unless the
295 elected officer elects membership in another class or withdraws
296 from the Florida Retirement System as provided in paragraphs
297 (3)(a)-(d):
298 (c) Before January 1, 2014, any elected officer may, within
299 6 months after assuming office, or within 6 months after this
300 act becomes a law for serving elected officers, elect membership
301 in the Senior Management Service Class as provided in s. 121.055
302 in lieu of membership in the Elected Officers’ Class. Any such
303 election made by a county elected officer shall have no effect
304 upon the statutory limit on the number of nonelective full-time
305 positions that may be designated by a local agency employer for
306 inclusion in the Senior Management Service Class under s.
307 121.055(1)(b)1.
308 Section 4. Paragraph (f) of subsection (1) and paragraph
309 (c) of subsection (6) of section 121.055, Florida Statutes, are
310 amended to read:
311 121.055 Senior Management Service Class.—There is hereby
312 established a separate class of membership within the Florida
313 Retirement System to be known as the “Senior Management Service
314 Class,” which shall become effective February 1, 1987.
315 (1)
316 (f) Effective July 1, 1997, through December 31, 2013:
317 1. Except as provided in subparagraphs subparagraph 3. and
318 4., an elected state officer eligible for membership in the
319 Elected Officers’ Class under s. 121.052(2)(a), (b), or (c) who
320 elects membership in the Senior Management Service Class under
321 s. 121.052(3)(c) may, within 6 months after assuming office or
322 within 6 months after this act becomes a law for serving elected
323 state officers, elect to participate in the Senior Management
324 Service Optional Annuity Program, as provided in subsection (6),
325 in lieu of membership in the Senior Management Service Class.
326 2. Except as provided in subparagraphs subparagraph 3. and
327 4., an elected officer of a local agency employer eligible for
328 membership in the Elected Officers’ Class under s. 121.052(2)(d)
329 who elects membership in the Senior Management Service Class
330 under s. 121.052(3)(c) may, within 6 months after assuming
331 office, or within 6 months after this act becomes a law for
332 serving elected officers of a local agency employer, elect to
333 withdraw from the Florida Retirement System, as provided in
334 subparagraph (b)2., in lieu of membership in the Senior
335 Management Service Class.
336 3. A retiree of a state-administered retirement system who
337 is initially reemployed in a regularly established position on
338 or after July 1, 2010, as an elected official eligible for the
339 Elected Officers’ Class may not be enrolled in renewed
340 membership in the Senior Management Service Class or in the
341 Senior Management Service Optional Annuity Program as provided
342 in subsection (6), and may not withdraw from the Florida
343 Retirement System as a renewed member as provided in
344 subparagraph (b)2., as applicable, in lieu of membership in the
345 Senior Management Service Class.
346 4. On or after January 1, 2014, an elected officer eligible
347 for membership in the Elected Officers’ Class may not be
348 enrolled in the Senior Management Service Class or in the Senior
349 Management Service Optional Annuity Program as provided in
350 subsection (6).
351 (6)
352 (c) Participation.—
353 1. An eligible employee who is employed on or before
354 February 1, 1987, may elect to participate in the optional
355 annuity program in lieu of participating in the Senior
356 Management Service Class. Such election must be made in writing
357 and filed with the department and the personnel officer of the
358 employer on or before May 1, 1987. An eligible employee who is
359 employed on or before February 1, 1987, and who fails to make an
360 election to participate in the optional annuity program by May
361 1, 1987, shall be deemed to have elected membership in the
362 Senior Management Service Class.
363 2. Except as provided in subparagraph 6., an employee who
364 becomes eligible to participate in the optional annuity program
365 by reason of initial employment commencing after February 1,
366 1987, may, within 90 days after the date of commencing
367 employment, elect to participate in the optional annuity
368 program. Such election must be made in writing and filed with
369 the personnel officer of the employer. An eligible employee who
370 does not within 90 days after commencing employment elect to
371 participate in the optional annuity program shall be deemed to
372 have elected membership in the Senior Management Service Class.
373 3. A person who is appointed to a position in the Senior
374 Management Service Class and who is a member of an existing
375 retirement system or the Special Risk or Special Risk
376 Administrative Support Classes of the Florida Retirement System
377 may elect to remain in such system or class in lieu of
378 participating in the Senior Management Service Class or optional
379 annuity program. Such election must be made in writing and filed
380 with the department and the personnel officer of the employer
381 within 90 days after such appointment. An eligible employee who
382 fails to make an election to participate in the existing system,
383 the Special Risk Class of the Florida Retirement System, the
384 Special Risk Administrative Support Class of the Florida
385 Retirement System, or the optional annuity program shall be
386 deemed to have elected membership in the Senior Management
387 Service Class.
388 4. Except as provided in subparagraph 5., an employee’s
389 election to participate in the optional annuity program is
390 irrevocable if the employee continues to be employed in an
391 eligible position and continues to meet the eligibility
392 requirements set forth in this paragraph.
393 5. Effective from July 1, 2002, through September 30, 2002,
394 an active employee in a regularly established position who has
395 elected to participate in the Senior Management Service Optional
396 Annuity Program has one opportunity to choose to move from the
397 Senior Management Service Optional Annuity Program to the
398 Florida Retirement System Pension Plan.
399 a. The election must be made in writing and must be filed
400 with the department and the personnel officer of the employer
401 before October 1, 2002, or, in the case of an active employee
402 who is on a leave of absence on July 1, 2002, within 90 days
403 after the conclusion of the leave of absence. This election is
404 irrevocable.
405 b. The employee shall receive service credit under the
406 pension plan equal to his or her years of service under the
407 Senior Management Service Optional Annuity Program. The cost for
408 such credit is the amount representing the present value of that
409 employee’s accumulated benefit obligation for the affected
410 period of service.
411 c. The employee must transfer the total accumulated
412 employer contributions and earnings on deposit in his or her
413 Senior Management Service Optional Annuity Program account. If
414 the transferred amount is not sufficient to pay the amount due,
415 the employee must pay a sum representing the remainder of the
416 amount due. The employee may not retain any employer
417 contributions or earnings from the Senior Management Service
418 Optional Annuity Program account.
419 6. A retiree of a state-administered retirement system who
420 is initially reemployed on or after July 1, 2010, may not renew
421 membership in the Senior Management Service Optional Annuity
422 Program.
423 7. Effective January 1, 2014, the Senior Management Service
424 Optional Annuity Program is closed to new members. Members
425 enrolled in the Senior Management Service Optional Annuity
426 Program before January 1, 2014, may retain their membership in
427 the annuity program.
428 Section 5. Paragraph (a) of subsection (4) of section
429 121.091, Florida Statutes, is amended to read:
430 121.091 Benefits payable under the system.—Benefits may not
431 be paid under this section unless the member has terminated
432 employment as provided in s. 121.021(39)(a) or begun
433 participation in the Deferred Retirement Option Program as
434 provided in subsection (13), and a proper application has been
435 filed in the manner prescribed by the department. The department
436 may cancel an application for retirement benefits when the
437 member or beneficiary fails to timely provide the information
438 and documents required by this chapter and the department’s
439 rules. The department shall adopt rules establishing procedures
440 for application for retirement benefits and for the cancellation
441 of such application when the required information or documents
442 are not received.
443 (4) DISABILITY RETIREMENT BENEFIT.—
444 (a) Disability retirement; entitlement and effective date.—
445 1.a. A member who becomes totally and permanently disabled,
446 as defined in paragraph (b), after completing 5 years of
447 creditable service, or a member who becomes totally and
448 permanently disabled in the line of duty regardless of service,
449 is entitled to a monthly disability benefit; except that any
450 member with less than 5 years of creditable service on July 1,
451 1980, or any person who becomes a member of the Florida
452 Retirement System on or after such date must have completed 10
453 years of creditable service before becoming totally and
454 permanently disabled in order to receive disability retirement
455 benefits for any disability which occurs other than in the line
456 of duty. However, if a member employed on July 1, 1980, who has
457 less than 5 years of creditable service as of that date becomes
458 totally and permanently disabled after completing 5 years of
459 creditable service and is found not to have attained fully
460 insured status for benefits under the federal Social Security
461 Act, such member is entitled to a monthly disability benefit.
462 b. Effective July 1, 2001, a member of the pension plan
463 initially enrolled before January 1, 2014, who becomes totally
464 and permanently disabled, as defined in paragraph (b), after
465 completing 8 years of creditable service, or a member who
466 becomes totally and permanently disabled in the line of duty
467 regardless of service, is entitled to a monthly disability
468 benefit.
469 c. Effective January 1, 2014, a member of the pension plan
470 initially enrolled on or after January 1, 2014, who becomes
471 totally and permanently disabled, as defined in paragraph (b),
472 after completing 10 years of creditable service, or a member who
473 becomes totally and permanently disabled in the line of duty
474 regardless of service, is entitled to a monthly disability
475 benefit.
476 2. If the division has received from the employer the
477 required documentation of the member’s termination of
478 employment, the effective retirement date for a member who
479 applies and is approved for disability retirement shall be
480 established by rule of the division.
481 3. For a member who is receiving Workers’ Compensation
482 payments, the effective disability retirement date may not
483 precede the date the member reaches Maximum Medical Improvement
484 (MMI), unless the member terminates employment before reaching
485 MMI.
486 Section 6. Subsection (1), paragraph (i) of subsection (2),
487 paragraph (b) of subsection (3), subsection (4), paragraph (c)
488 of subsection (5), subsection (8), and paragraphs (a), (b), (c),
489 and (h) of subsection (10) of section 121.4501, Florida
490 Statutes, are amended to read:
491 121.4501 Florida Retirement System Investment Plan.—
492 (1) The Trustees of the State Board of Administration shall
493 establish a defined contribution program called the “Florida
494 Retirement System Investment Plan” or “investment plan” for
495 members of the Florida Retirement System under which retirement
496 benefits will be provided for eligible employees who elect to
497 participate in the program and for employees initially enrolled
498 on or after January 1, 2014, in positions covered by the Elected
499 Officers’ Class or the Senior Management Service Class and are
500 compulsory members of the investment plan unless otherwise
501 eligible to withdraw from the system under s. 121.052(3)(d) or
502 s. 121.055(1)(b)2., or to participate in an optional retirement
503 program under s. 121.051(1)(a), s. 121.051(2)(c), or s. 121.35.
504 Investment plan membership continues if there is subsequent
505 employment in a position covered by another membership class.
506 The retirement benefits shall be provided through member
507 directed investments, in accordance with s. 401(a) of the
508 Internal Revenue Code and related regulations. The employer and
509 employee shall make contributions, as provided in this section
510 and ss. 121.571 and 121.71, to the Florida Retirement System
511 Investment Plan Trust Fund toward the funding of benefits.
512 (2) DEFINITIONS.—As used in this part, the term:
513 (i) “Member” or “employee” means an eligible employee who
514 enrolls in or is defaulted into the investment plan as provided
515 in subsection (4), a terminated Deferred Retirement Option
516 Program member as described in subsection (21), or a beneficiary
517 or alternate payee of a member or employee.
518 (3) RETIREMENT SERVICE CREDIT; TRANSFER OF BENEFITS.—
519 (b) Notwithstanding paragraph (a), an eligible employee who
520 elects to participate in or is defaulted into the investment
521 plan and establishes one or more individual member accounts may
522 elect to transfer to the investment plan a sum representing the
523 present value of the employee’s accumulated benefit obligation
524 under the pension plan, except as provided in paragraph (4)(b).
525 Upon transfer, all service credit earned under the pension plan
526 is nullified for purposes of entitlement to a future benefit
527 under the pension plan. A member may not transfer the
528 accumulated benefit obligation balance from the pension plan
529 after the time period for enrolling in the investment plan has
530 expired.
531 1. For purposes of this subsection, the present value of
532 the member’s accumulated benefit obligation is based upon the
533 member’s estimated creditable service and estimated average
534 final compensation under the pension plan, subject to
535 recomputation under subparagraph 2. For state employees, initial
536 estimates shall be based upon creditable service and average
537 final compensation as of midnight on June 30, 2002; for district
538 school board employees, initial estimates shall be based upon
539 creditable service and average final compensation as of midnight
540 on September 30, 2002; and for local government employees,
541 initial estimates shall be based upon creditable service and
542 average final compensation as of midnight on December 31, 2002.
543 The dates specified are the “estimate date” for these employees.
544 The actuarial present value of the employee’s accumulated
545 benefit obligation shall be based on the following:
546 a. The discount rate and other relevant actuarial
547 assumptions used to value the Florida Retirement System Trust
548 Fund at the time the amount to be transferred is determined,
549 consistent with the factors provided in sub-subparagraphs b. and
550 c.
551 b. A benefit commencement age, based on the member’s
552 estimated creditable service as of the estimate date.
553 c. Except as provided under sub-subparagraph d., for a
554 member initially enrolled:
555 (I) Before July 1, 2011, the benefit commencement age is
556 the younger of the following, but may not be younger than the
557 member’s age as of the estimate date:
558 (A) Age 62; or
559 (B) The age the member would attain if the member completed
560 30 years of service with an employer, assuming the member worked
561 continuously from the estimate date, and disregarding any
562 vesting requirement that would otherwise apply under the pension
563 plan.
564 (II) On or after July 1, 2011, the benefit commencement age
565 is the younger of the following, but may not be younger than the
566 member’s age as of the estimate date:
567 (A) Age 65; or
568 (B) The age the member would attain if the member completed
569 33 years of service with an employer, assuming the member worked
570 continuously from the estimate date, and disregarding any
571 vesting requirement that would otherwise apply under the pension
572 plan.
573 d. For members of the Special Risk Class and for members of
574 the Special Risk Administrative Support Class entitled to retain
575 the special risk normal retirement date:
576 (I) Initially enrolled before July 1, 2011, the benefit
577 commencement age is the younger of the following, but may not be
578 younger than the member’s age as of the estimate date:
579 (A) Age 55; or
580 (B) The age the member would attain if the member completed
581 25 years of service with an employer, assuming the member worked
582 continuously from the estimate date, and disregarding any
583 vesting requirement that would otherwise apply under the pension
584 plan.
585 (II) Initially enrolled on or after July 1, 2011, the
586 benefit commencement age is the younger of the following, but
587 may not be younger than the member’s age as of the estimate
588 date:
589 (A) Age 60; or
590 (B) The age the member would attain if the member completed
591 30 years of service with an employer, assuming the member worked
592 continuously from the estimate date, and disregarding any
593 vesting requirement that would otherwise apply under the pension
594 plan.
595 e. The calculation must disregard vesting requirements and
596 early retirement reduction factors that would otherwise apply
597 under the pension plan.
598 2. For each member who elects to transfer moneys from the
599 pension plan to his or her account in the investment plan, the
600 division shall recompute the amount transferred under
601 subparagraph 1. within 60 days after the actual transfer of
602 funds based upon the member’s actual creditable service and
603 actual final average compensation as of the initial date of
604 participation in the investment plan. If the recomputed amount
605 differs from the amount transferred by $10 or more, the division
606 shall:
607 a. Transfer, or cause to be transferred, from the Florida
608 Retirement System Trust Fund to the member’s account the excess,
609 if any, of the recomputed amount over the previously transferred
610 amount together with interest from the initial date of transfer
611 to the date of transfer under this subparagraph, based upon the
612 effective annual interest equal to the assumed return on the
613 actuarial investment which was used in the most recent actuarial
614 valuation of the system, compounded annually.
615 b. Transfer, or cause to be transferred, from the member’s
616 account to the Florida Retirement System Trust Fund the excess,
617 if any, of the previously transferred amount over the recomputed
618 amount, together with interest from the initial date of transfer
619 to the date of transfer under this subparagraph, based upon 6
620 percent effective annual interest, compounded annually, pro rata
621 based on the member’s allocation plan.
622 3. If contribution adjustments are made as a result of
623 employer errors or corrections, including plan corrections,
624 following recomputation of the amount transferred under
625 subparagraph 1., the member is entitled to the additional
626 contributions or is responsible for returning any excess
627 contributions resulting from the correction. However, any return
628 of such erroneous excess pretax contribution by the plan must be
629 made within the period allowed by the Internal Revenue Service.
630 The present value of the member’s accumulated benefit obligation
631 shall not be recalculated.
632 4. As directed by the member, the state board shall
633 transfer or cause to be transferred the appropriate amounts to
634 the designated accounts within 30 days after the effective date
635 of the member’s participation in the investment plan unless the
636 major financial markets for securities available for a transfer
637 are seriously disrupted by an unforeseen event that causes the
638 suspension of trading on any national securities exchange in the
639 country where the securities were issued. In that event, the 30
640 day period may be extended by a resolution of the state board.
641 Transfers are not commissionable or subject to other fees and
642 may be in the form of securities or cash, as determined by the
643 state board. Such securities are valued as of the date of
644 receipt in the member’s account.
645 5. If the state board or the division receives notification
646 from the United States Internal Revenue Service that this
647 paragraph or any portion of this paragraph will cause the
648 retirement system, or a portion thereof, to be disqualified for
649 tax purposes under the Internal Revenue Code, the portion that
650 will cause the disqualification does not apply. Upon such
651 notice, the state board and the division shall notify the
652 presiding officers of the Legislature.
653 (4) PARTICIPATION; ENROLLMENT.—
654 (a)1. Effective June 1, 2002, through February 28, 2003, a
655 90-day election period was provided to each eligible employee
656 participating in the Florida Retirement System, preceded by a
657 90-day education period, permitting each eligible employee to
658 elect membership in the investment plan, and an employee who
659 failed to elect the investment plan during the election period
660 remained in the pension plan. An eligible employee who was
661 employed in a regularly established position during the election
662 period was granted the option to make one subsequent election,
663 as provided in paragraph (f). With respect to an eligible
664 employees who did not participate in the initial election period
665 or who are initially employee who is employed in a regularly
666 established position after the close of the initial election
667 period but before January 1, 2014, on June 1, 2002, by a state
668 employer:
669 a. Any such employee may elect to participate in the
670 investment plan in lieu of retaining his or her membership in
671 the pension plan. The election must be made in writing or by
672 electronic means and must be filed with the third-party
673 administrator by August 31, 2002, or, in the case of an active
674 employee who is on a leave of absence on April 1, 2002, by the
675 last business day of the 5th month following the month the leave
676 of absence concludes. This election is irrevocable, except as
677 provided in paragraph (g). Upon making such election, the
678 employee shall be enrolled as a member of the investment plan,
679 the employee’s membership in the Florida Retirement System is
680 governed by the provisions of this part, and the employee’s
681 membership in the pension plan terminates. The employee’s
682 enrollment in the investment plan is effective the first day of
683 the month for which a full month’s employer contribution is made
684 to the investment plan.
685 b. Any such employee who fails to elect to participate in
686 the investment plan within the prescribed time period is deemed
687 to have elected to retain membership in the pension plan, and
688 the employee’s option to elect to participate in the investment
689 plan is forfeited.
690 2. With respect to employees who become eligible to
691 participate in the investment plan by reason of employment in a
692 regularly established position with a state employer commencing
693 after April 1, 2002:
694 a. Any such employee shall, by default, be enrolled in the
695 pension plan at the commencement of employment, and may, by the
696 last business day of the 5th month following the employee’s
697 month of hire, elect to participate in the investment plan. The
698 employee’s election must be made in writing or by electronic
699 means and must be filed with the third-party administrator. The
700 election to participate in the investment plan is irrevocable,
701 except as provided in paragraph (f)(g).
702 a.b. If the employee files such election within the
703 prescribed time period, enrollment in the investment plan is
704 effective on the first day of employment. The retirement
705 contributions paid through the month of the employee plan change
706 shall be transferred to the investment program, and, effective
707 the first day of the next month, the employer and employee must
708 pay the applicable contributions based on the employee
709 membership class in the program.
710 b.c. An employee who fails to elect to participate in the
711 investment plan within the prescribed time period is deemed to
712 have elected to retain membership in the pension plan, and the
713 employee’s option to elect to participate in the investment plan
714 is forfeited.
715 2.3. With respect to employees who become eligible to
716 participate in the investment plan pursuant to s.
717 121.051(2)(c)3. or s. 121.35(3)(i), the employee may elect to
718 participate in the investment plan in lieu of retaining his or
719 her membership in the State Community College System Optional
720 Retirement Program or the State University System Optional
721 Retirement Program. The election must be made in writing or by
722 electronic means and must be filed with the third-party
723 administrator. This election is irrevocable, except as provided
724 in paragraph (f)(g). Upon making such election, the employee
725 shall be enrolled as a member in the investment plan, the
726 employee’s membership in the Florida Retirement System is
727 governed by the provisions of this part, and the employee’s
728 participation in the State Community College System Optional
729 Retirement Program or the State University System Optional
730 Retirement Program terminates. The employee’s enrollment in the
731 investment plan is effective on the first day of the month for
732 which a full month’s employer and employee contribution is made
733 to the investment plan.
734 (b)1. With respect to employees who become eligible to
735 participate in the investment plan, except as provided in
736 paragraph (g), by reason of employment in a regularly
737 established position commencing on or after January 1, 2014, any
738 such employee shall be enrolled in the pension plan at the
739 commencement of employment and may, by the last business day of
740 the 5th month following the employee’s month of hire, elect to
741 participate in the pension plan or the investment plan. Eligible
742 employees may make a plan election only if they are earning
743 service credit in an employer-employee relationship consistent
744 with s. 121.021(17)(b), excluding leaves of absence without pay.
745 2. The employee’s election must be made in writing or by
746 electronic means and must be filed with the third-party
747 administrator. The election to participate in the pension plan
748 or investment plan is irrevocable, except as provided in
749 paragraph (f).
750 3. If the employee fails to make an election of the pension
751 plan or investment plan within 5 months following the month of
752 hire, the employee is deemed to have elected the investment plan
753 and will be defaulted into the investment plan retroactively to
754 the employee’s date of employment. The employee’s option to
755 participate in the pension plan is forfeited, except as provided
756 in paragraph (f).
757 4. The amount of the employee and employer contributions
758 paid before the default to the investment plan shall be
759 transferred to the investment plan and shall be placed in a
760 default fund as designated by the State Board of Administration.
761 The employee may move the contributions once an account is
762 activated in the investment plan.
763 5. Effective the first day of the month after an eligible
764 employee makes a plan election of the pension plan or investment
765 plan, or after the month of default to the investment plan, the
766 employee and employer shall pay the applicable contributions
767 based on the employee membership class in the pension plan or
768 investment plan.
769 4. For purposes of this paragraph, “state employer” means
770 any agency, board, branch, commission, community college,
771 department, institution, institution of higher education, or
772 water management district of the state, which participates in
773 the Florida Retirement System for the benefit of certain
774 employees.
775 (b)1. With respect to an eligible employee who is employed
776 in a regularly established position on September 1, 2002, by a
777 district school board employer:
778 a. Any such employee may elect to participate in the
779 investment plan in lieu of retaining his or her membership in
780 the pension plan. The election must be made in writing or by
781 electronic means and must be filed with the third-party
782 administrator by November 30, or, in the case of an active
783 employee who is on a leave of absence on July 1, 2002, by the
784 last business day of the 5th month following the month the leave
785 of absence concludes. This election is irrevocable, except as
786 provided in paragraph (g). Upon making such election, the
787 employee shall be enrolled as a member of the investment plan,
788 the employee’s membership in the Florida Retirement System is
789 governed by the provisions of this part, and the employee’s
790 membership in the pension plan terminates. The employee’s
791 enrollment in the investment plan is effective the first day of
792 the month for which a full month’s employer contribution is made
793 to the investment program.
794 b. Any such employee who fails to elect to participate in
795 the investment plan within the prescribed time period is deemed
796 to have elected to retain membership in the pension plan, and
797 the employee’s option to elect to participate in the investment
798 plan is forfeited.
799 2. With respect to employees who become eligible to
800 participate in the investment plan by reason of employment in a
801 regularly established position with a district school board
802 employer commencing after July 1, 2002:
803 a. Any such employee shall, by default, be enrolled in the
804 pension plan at the commencement of employment, and may, by the
805 last business day of the 5th month following the employee’s
806 month of hire, elect to participate in the investment plan. The
807 employee’s election must be made in writing or by electronic
808 means and must be filed with the third-party administrator. The
809 election to participate in the investment plan is irrevocable,
810 except as provided in paragraph (g).
811 b. If the employee files such election within the
812 prescribed time period, enrollment in the investment plan is
813 effective on the first day of employment. The employer
814 retirement contributions paid through the month of the employee
815 plan change shall be transferred to the investment plan, and,
816 effective the first day of the next month, the employer shall
817 pay the applicable contributions based on the employee
818 membership class in the investment plan.
819 c. Any such employee who fails to elect to participate in
820 the investment plan within the prescribed time period is deemed
821 to have elected to retain membership in the pension plan, and
822 the employee’s option to elect to participate in the investment
823 plan is forfeited.
824 3. For purposes of this paragraph, “district school board
825 employer” means any district school board that participates in
826 the Florida Retirement System for the benefit of certain
827 employees, or a charter school or charter technical career
828 center that participates in the Florida Retirement System as
829 provided in s. 121.051(2)(d).
830 (c)1. With respect to an eligible employee who is employed
831 in a regularly established position on December 1, 2002, by a
832 local employer:
833 a. Any such employee may elect to participate in the
834 investment plan in lieu of retaining his or her membership in
835 the pension plan. The election must be made in writing or by
836 electronic means and must be filed with the third-party
837 administrator by February 28, 2003, or, in the case of an active
838 employee who is on a leave of absence on October 1, 2002, by the
839 last business day of the 5th month following the month the leave
840 of absence concludes. This election is irrevocable, except as
841 provided in paragraph (g). Upon making such election, the
842 employee shall be enrolled as a participant of the investment
843 plan, the employee’s membership in the Florida Retirement System
844 is governed by the provisions of this part, and the employee’s
845 membership in the pension plan terminates. The employee’s
846 enrollment in the investment plan is effective the first day of
847 the month for which a full month’s employer contribution is made
848 to the investment plan.
849 b. Any such employee who fails to elect to participate in
850 the investment plan within the prescribed time period is deemed
851 to have elected to retain membership in the pension plan, and
852 the employee’s option to elect to participate in the investment
853 plan is forfeited.
854 2. With respect to employees who become eligible to
855 participate in the investment plan by reason of employment in a
856 regularly established position with a local employer commencing
857 after October 1, 2002:
858 a. Any such employee shall, by default, be enrolled in the
859 pension plan at the commencement of employment, and may, by the
860 last business day of the 5th month following the employee’s
861 month of hire, elect to participate in the investment plan. The
862 employee’s election must be made in writing or by electronic
863 means and must be filed with the third-party administrator. The
864 election to participate in the investment plan is irrevocable,
865 except as provided in paragraph (g).
866 b. If the employee files such election within the
867 prescribed time period, enrollment in the investment plan is
868 effective on the first day of employment. The employer
869 retirement contributions paid through the month of the employee
870 plan change shall be transferred to the investment plan, and,
871 effective the first day of the next month, the employer shall
872 pay the applicable contributions based on the employee
873 membership class in the investment plan.
874 c. Any such employee who fails to elect to participate in
875 the investment plan within the prescribed time period is deemed
876 to have elected to retain membership in the pension plan, and
877 the employee’s option to elect to participate in the investment
878 plan is forfeited.
879 3. For purposes of this paragraph, “local employer” means
880 any employer not included in paragraph (a) or paragraph (b).
881 (c)(d) Contributions available for self-direction by a
882 member who has not selected one or more specific investment
883 products shall be allocated as prescribed by the state board.
884 The third-party administrator shall notify the member at least
885 quarterly that the member should take an affirmative action to
886 make an asset allocation among the investment products.
887 (d)(e) On or after July 1, 2011, a member of the pension
888 plan who obtains a refund of employee contributions retains his
889 or her prior plan choice upon return to employment in a
890 regularly established position with a participating employer.
891 (e)(f) A member of the investment plan who takes a
892 distribution of any contributions from his or her investment
893 plan account is considered a retiree. A retiree who is initially
894 reemployed in a regularly established position on or after July
895 1, 2010, is not eligible to be enrolled in renewed membership.
896 (f)(g) After the period during which an eligible employee
897 had the choice to elect the pension plan or the investment plan,
898 or the month following the receipt of the eligible employee’s
899 plan election, if sooner, the employee shall have one
900 opportunity, at the employee’s discretion, to choose to move
901 from the pension plan to the investment plan or from the
902 investment plan to the pension plan. Eligible employees may
903 elect to move between plans only if they are earning service
904 credit in an employer-employee relationship consistent with s.
905 121.021(17)(b), excluding leaves of absence without pay.
906 Effective July 1, 2005, such elections are effective on the
907 first day of the month following the receipt of the election by
908 the third-party administrator and are not subject to the
909 requirements regarding an employer-employee relationship or
910 receipt of contributions for the eligible employee in the
911 effective month, except when the election is received by the
912 third-party administrator. This paragraph is contingent upon
913 approval by the Internal Revenue Service. This paragraph is not
914 applicable to compulsory investment plan members under paragraph
915 (g).
916 1. If the employee chooses to move to the investment plan,
917 the provisions of subsection (3) govern the transfer.
918 2. If the employee chooses to move to the pension plan, the
919 employee must transfer from his or her investment plan account,
920 and from other employee moneys as necessary, a sum representing
921 the present value of that employee’s accumulated benefit
922 obligation immediately following the time of such movement,
923 determined assuming that attained service equals the sum of
924 service in the pension plan and service in the investment plan.
925 Benefit commencement occurs on the first date the employee is
926 eligible for unreduced benefits, using the discount rate and
927 other relevant actuarial assumptions that were used to value the
928 pension plan liabilities in the most recent actuarial valuation.
929 For any employee who, at the time of the second election,
930 already maintains an accrued benefit amount in the pension plan,
931 the then-present value of the accrued benefit is deemed part of
932 the required transfer amount. The division must ensure that the
933 transfer sum is prepared using a formula and methodology
934 certified by an enrolled actuary. A refund of any employee
935 contributions or additional member payments made which exceed
936 the employee contributions that would have accrued had the
937 member remained in the pension plan and not transferred to the
938 investment plan is not permitted.
939 3. Notwithstanding subparagraph 2., an employee who chooses
940 to move to the pension plan and who became eligible to
941 participate in the investment plan by reason of employment in a
942 regularly established position with a state employer after June
943 1, 2002; a district school board employer after September 1,
944 2002; or a local employer after December 1, 2002, must transfer
945 from his or her investment plan account, and from other employee
946 moneys as necessary, a sum representing the employee’s actuarial
947 accrued liability. A refund of any employee contributions or
948 additional member participant payments made which exceed the
949 employee contributions that would have accrued had the member
950 remained in the pension plan and not transferred to the
951 investment plan is not permitted.
952 4. An employee’s ability to transfer from the pension plan
953 to the investment plan pursuant to paragraphs (a) and (b)
954 paragraphs (a)-(d), and the ability of a current employee to
955 have an option to later transfer back into the pension plan
956 under subparagraph 2., shall be deemed a significant system
957 amendment. Pursuant to s. 121.031(4), any resulting unfunded
958 liability arising from actual original transfers from the
959 pension plan to the investment plan must be amortized within 30
960 plan years as a separate unfunded actuarial base independent of
961 the reserve stabilization mechanism defined in s. 121.031(3)(f).
962 For the first 25 years, a direct amortization payment may not be
963 calculated for this base. During this 25-year period, the
964 separate base shall be used to offset the impact of employees
965 exercising their second program election under this paragraph.
966 The actuarial funded status of the pension plan will not be
967 affected by such second program elections in any significant
968 manner, after due recognition of the separate unfunded actuarial
969 base. Following the initial 25-year period, any remaining
970 balance of the original separate base shall be amortized over
971 the remaining 5 years of the required 30-year amortization
972 period.
973 5. If the employee chooses to transfer from the investment
974 plan to the pension plan and retains an excess account balance
975 in the investment plan after satisfying the buy-in requirements
976 under this paragraph, the excess may not be distributed until
977 the member retires from the pension plan. The excess account
978 balance may be rolled over to the pension plan and used to
979 purchase service credit or upgrade creditable service in the
980 pension plan.
981 (g)1. All employees initially enrolled on or after January
982 1, 2014, in positions covered by the Elected Officers’ Class or
983 the Senior Management Service Class are compulsory members of
984 the investment plan, except those eligible to withdraw from the
985 system under s. 121.052(3)(d) or s. 121.055(1)(b)2., or those
986 eligible for optional retirement programs under s.
987 121.051(1)(a), s. 121.051(2)(c), or s. 121.35. Employees
988 eligible to withdraw from the system under s. 121.052(3)(d) or
989 s. 121.055(1)(b)2. may choose to withdraw from the system or to
990 participate in the investment plan as provided in those
991 sections. Employees eligible for optional retirement programs
992 under s. 121.051(2)(c) or s. 121.35, except as provided in s.
993 121.051(1)(a), may choose to participate in the optional
994 retirement program or the investment plan as provided in those
995 sections. Investment plan membership continues if there is
996 subsequent employment in a position covered by another
997 membership class. Membership in the pension plan is not
998 permitted except as provided in s. 121.591(2). Employees
999 initially enrolled in the Florida Retirement System prior to
1000 January 1, 2014, may retain their membership in the pension plan
1001 or investment plan and are eligible to use the election
1002 opportunity specified in s. 121.4501(4)(f).
1003 2. Employees initially enrolled on or after January 1,
1004 2014, are not permitted to use the election opportunity
1005 specified in paragraph (f).
1006 3. The amount of retirement contributions paid by the
1007 employee and employer, as required under s. 121.72, shall be
1008 placed in a default fund as designated by the state board, until
1009 an account is activated in the investment plan, at which time
1010 the member may move the contributions from the default fund to
1011 other funds provided in the investment plan.
1012 (5) CONTRIBUTIONS.—
1013 (c) The state board, acting as plan fiduciary, must ensure
1014 that all plan assets are held in a trust, pursuant to s. 401 of
1015 the Internal Revenue Code. The fiduciary must ensure that such
1016 contributions are allocated as follows:
1017 1. The employer and employee contribution portion earmarked
1018 for member accounts shall be used to purchase interests in the
1019 appropriate investment vehicles as specified by the member, or
1020 in accordance with paragraph (4)(c) (4)(d).
1021 2. The employer contribution portion earmarked for
1022 administrative and educational expenses shall be transferred to
1023 the Florida Retirement System Investment Plan Trust Fund.
1024 3. The employer contribution portion earmarked for
1025 disability benefits shall be transferred to the Florida
1026 Retirement System Trust Fund.
1027 (8) INVESTMENT PLAN ADMINISTRATION.—The investment plan
1028 shall be administered by the state board and affected employers.
1029 The state board may require oaths, by affidavit or otherwise,
1030 and acknowledgments from persons in connection with the
1031 administration of its statutory duties and responsibilities for
1032 the investment plan. An oath, by affidavit or otherwise, may not
1033 be required of a member at the time of enrollment.
1034 Acknowledgment of an employee’s election to participate in the
1035 program shall be no greater than necessary to confirm the
1036 employee’s election except for members initially enrolled on or
1037 after January 1, 2014, as provided in paragraph (4)(g). The
1038 state board shall adopt rules to carry out its statutory duties
1039 with respect to administering the investment plan, including
1040 establishing the roles and responsibilities of affected state,
1041 local government, and education-related employers, the state
1042 board, the department, and third-party contractors. The
1043 department shall adopt rules necessary to administer the
1044 investment plan in coordination with the pension plan and the
1045 disability benefits available under the investment plan.
1046 (a)1. The state board shall select and contract with a
1047 third-party administrator to provide administrative services if
1048 those services cannot be competitively and contractually
1049 provided by the division. With the approval of the state board,
1050 the third-party administrator may subcontract to provide
1051 components of the administrative services. As a cost of
1052 administration, the state board may compensate any such
1053 contractor for its services, in accordance with the terms of the
1054 contract, as is deemed necessary or proper by the board. The
1055 third-party administrator may not be an approved provider or be
1056 affiliated with an approved provider.
1057 2. These administrative services may include, but are not
1058 limited to, enrollment of eligible employees, collection of
1059 employer and employee contributions, disbursement of
1060 contributions to approved providers in accordance with the
1061 allocation directions of members; services relating to
1062 consolidated billing; individual and collective recordkeeping
1063 and accounting; asset purchase, control, and safekeeping; and
1064 direct disbursement of funds to and from the third-party
1065 administrator, the division, the state board, employers,
1066 members, approved providers, and beneficiaries. This section
1067 does not prevent or prohibit a bundled provider from providing
1068 any administrative or customer service, including accounting and
1069 administration of individual member benefits and contributions;
1070 individual member recordkeeping; asset purchase, control, and
1071 safekeeping; direct execution of the member’s instructions as to
1072 asset and contribution allocation; calculation of daily net
1073 asset values; direct access to member account information; or
1074 periodic reporting to members, at least quarterly, on account
1075 balances and transactions, if these services are authorized by
1076 the state board as part of the contract.
1077 (b)1. The state board shall select and contract with one or
1078 more organizations to provide educational services. With
1079 approval of the state board, the organizations may subcontract
1080 to provide components of the educational services. As a cost of
1081 administration, the state board may compensate any such
1082 contractor for its services in accordance with the terms of the
1083 contract, as is deemed necessary or proper by the board. The
1084 education organization may not be an approved provider or be
1085 affiliated with an approved provider.
1086 2. Educational services shall be designed by the state
1087 board and department to assist employers, eligible employees,
1088 members, and beneficiaries in order to maintain compliance with
1089 United States Department of Labor regulations under s. 404(c) of
1090 the Employee Retirement Income Security Act of 1974 and to
1091 assist employees in their choice of pension plan or investment
1092 plan retirement alternatives. Educational services include, but
1093 are not limited to, disseminating educational materials;
1094 providing retirement planning education; explaining the pension
1095 plan and the investment plan; and offering financial planning
1096 guidance on matters such as investment diversification,
1097 investment risks, investment costs, and asset allocation. An
1098 approved provider may also provide educational information,
1099 including retirement planning and investment allocation
1100 information concerning its products and services.
1101 (c)1. In evaluating and selecting a third-party
1102 administrator, the state board shall establish criteria for
1103 evaluating the relative capabilities and qualifications of each
1104 proposed administrator. In developing such criteria, the state
1105 board shall consider:
1106 a. The administrator’s demonstrated experience in providing
1107 administrative services to public or private sector retirement
1108 systems.
1109 b. The administrator’s demonstrated experience in providing
1110 daily valued recordkeeping to defined contribution programs.
1111 c. The administrator’s ability and willingness to
1112 coordinate its activities with employers, the state board, and
1113 the division, and to supply to such employers, the board, and
1114 the division the information and data they require, including,
1115 but not limited to, monthly management reports, quarterly member
1116 reports, and ad hoc reports requested by the department or state
1117 board.
1118 d. The cost-effectiveness and levels of the administrative
1119 services provided.
1120 e. The administrator’s ability to interact with the
1121 members, the employers, the state board, the division, and the
1122 providers; the means by which members may access account
1123 information, direct investment of contributions, make changes to
1124 their accounts, transfer moneys between available investment
1125 vehicles, and transfer moneys between investment products; and
1126 any fees that apply to such activities.
1127 f. Any other factor deemed necessary by the state board.
1128 2. In evaluating and selecting an educational provider, the
1129 state board shall establish criteria under which it shall
1130 consider the relative capabilities and qualifications of each
1131 proposed educational provider. In developing such criteria, the
1132 state board shall consider:
1133 a. Demonstrated experience in providing educational
1134 services to public or private sector retirement systems.
1135 b. Ability and willingness to coordinate its activities
1136 with the employers, the state board, and the division, and to
1137 supply to such employers, the board, and the division the
1138 information and data they require, including, but not limited
1139 to, reports on educational contacts.
1140 c. The cost-effectiveness and levels of the educational
1141 services provided.
1142 d. Ability to provide educational services via different
1143 media, including, but not limited to, the Internet, personal
1144 contact, seminars, brochures, and newsletters.
1145 e. Any other factor deemed necessary by the state board.
1146 3. The establishment of the criteria shall be solely within
1147 the discretion of the state board.
1148 (d) The state board shall develop the form and content of
1149 any contracts to be offered under the investment plan. In
1150 developing the contracts, the board shall consider:
1151 1. The nature and extent of the rights and benefits to be
1152 afforded in relation to the contributions required under the
1153 plan.
1154 2. The suitability of the rights and benefits provided and
1155 the interests of employers in the recruitment and retention of
1156 eligible employees.
1157 (e)1. The state board may contract for professional
1158 services, including legal, consulting, accounting, and actuarial
1159 services, deemed necessary to implement and administer the
1160 investment plan. The state board may enter into a contract with
1161 one or more vendors to provide low-cost investment advice to
1162 members, supplemental to education provided by the third-party
1163 administrator. All fees under any such contract shall be paid by
1164 those members who choose to use the services of the vendor.
1165 2. The department may contract for professional services,
1166 including legal, consulting, accounting, and actuarial services,
1167 deemed necessary to implement and administer the investment plan
1168 in coordination with the pension plan. The department, in
1169 coordination with the state board, may enter into a contract
1170 with the third-party administrator in order to coordinate
1171 services common to the various programs within the Florida
1172 Retirement System.
1173 (f) The third-party administrator may not receive direct or
1174 indirect compensation from an approved provider, except as
1175 specifically provided for in the contract with the state board.
1176 (g) The state board shall receive and resolve member
1177 complaints against the program, the third-party administrator,
1178 or any program vendor or provider; shall resolve any conflict
1179 between the third-party administrator and an approved provider
1180 if such conflict threatens the implementation or administration
1181 of the program or the quality of services to employees; and may
1182 resolve any other conflicts. The third-party administrator shall
1183 retain all member records for at least 5 years for use in
1184 resolving any member conflicts. The state board, the third-party
1185 administrator, or a provider is not required to produce
1186 documentation or an audio recording to justify action taken with
1187 regard to a member if the action occurred 5 or more years before
1188 the complaint is submitted to the state board. It is presumed
1189 that all action taken 5 or more years before the complaint is
1190 submitted was taken at the request of the member and with the
1191 member’s full knowledge and consent. To overcome this
1192 presumption, the member must present documentary evidence or an
1193 audio recording demonstrating otherwise.
1194 (10) EDUCATION COMPONENT.—
1195 (a) The state board, in coordination with the department,
1196 shall provide for an education component for eligible employees
1197 system members in a manner consistent with the provisions of
1198 this subsection section. The education component must be
1199 available to eligible employees at least 90 days prior to the
1200 beginning date of the election period for the employees of the
1201 respective types of employers.
1202 (b) The education component must provide system members
1203 with impartial and balanced information about plan choices
1204 except for members initially enrolled on or after January 1,
1205 2014, as provided in paragraph (4)(g). The education component
1206 must involve multimedia formats. Program comparisons must, to
1207 the greatest extent possible, be based upon the retirement
1208 income that different retirement programs may provide to the
1209 member. The state board shall monitor the performance of the
1210 contract to ensure that the program is conducted in accordance
1211 with the contract, applicable law, and the rules of the state
1212 board.
1213 (c) The state board, in coordination with the department,
1214 shall provide for an initial and ongoing transfer education
1215 component to provide system members except for those members
1216 initially enrolled on or after January 1, 2014, as provided in
1217 paragraph (4)(g), with information necessary to make informed
1218 plan choice decisions. The transfer education component must
1219 include, but is not limited to, information on:
1220 1. The amount of money available to a member to transfer to
1221 the defined contribution program.
1222 2. The features of and differences between the pension plan
1223 and the defined contribution program, both generally and
1224 specifically, as those differences may affect the member.
1225 3. The expected benefit available if the member were to
1226 retire under each of the retirement programs, based on
1227 appropriate alternative sets of assumptions.
1228 4. The rate of return from investments in the defined
1229 contribution program and the period of time over which such rate
1230 of return must be achieved to equal or exceed the expected
1231 monthly benefit payable to the member under the pension plan.
1232 5. The historical rates of return for the investment
1233 alternatives available in the defined contribution programs.
1234 6. The benefits and historical rates of return on
1235 investments available in a typical deferred compensation plan or
1236 a typical plan under s. 403(b) of the Internal Revenue Code for
1237 which the employee may be eligible.
1238 7. The program choices available to employees of the State
1239 University System and the comparative benefits of each available
1240 program, if applicable.
1241 8. Payout options available in each of the retirement
1242 programs.
1243 (h) Pursuant to subsection (8), all Florida Retirement
1244 System employers have an obligation to regularly communicate the
1245 existence of the two Florida Retirement System plans and the
1246 plan choice in the natural course of administering their
1247 personnel functions, using the educational materials supplied by
1248 the state board and the Department of Management Services.
1249 Section 7. Paragraph (b) of subsection (2) of section
1250 121.591, Florida Statutes, is amended to read:
1251 121.591 Payment of benefits.—Benefits may not be paid under
1252 the Florida Retirement System Investment Plan unless the member
1253 has terminated employment as provided in s. 121.021(39)(a) or is
1254 deceased and a proper application has been filed as prescribed
1255 by the state board or the department. Benefits, including
1256 employee contributions, are not payable under the investment
1257 plan for employee hardships, unforeseeable emergencies, loans,
1258 medical expenses, educational expenses, purchase of a principal
1259 residence, payments necessary to prevent eviction or foreclosure
1260 on an employee’s principal residence, or any other reason except
1261 a requested distribution for retirement, a mandatory de minimis
1262 distribution authorized by the administrator, or a required
1263 minimum distribution provided pursuant to the Internal Revenue
1264 Code. The state board or department, as appropriate, may cancel
1265 an application for retirement benefits if the member or
1266 beneficiary fails to timely provide the information and
1267 documents required by this chapter and the rules of the state
1268 board and department. In accordance with their respective
1269 responsibilities, the state board and the department shall adopt
1270 rules establishing procedures for application for retirement
1271 benefits and for the cancellation of such application if the
1272 required information or documents are not received. The state
1273 board and the department, as appropriate, are authorized to cash
1274 out a de minimis account of a member who has been terminated
1275 from Florida Retirement System covered employment for a minimum
1276 of 6 calendar months. A de minimis account is an account
1277 containing employer and employee contributions and accumulated
1278 earnings of not more than $5,000 made under the provisions of
1279 this chapter. Such cash-out must be a complete lump-sum
1280 liquidation of the account balance, subject to the provisions of
1281 the Internal Revenue Code, or a lump-sum direct rollover
1282 distribution paid directly to the custodian of an eligible
1283 retirement plan, as defined by the Internal Revenue Code, on
1284 behalf of the member. Any nonvested accumulations and associated
1285 service credit, including amounts transferred to the suspense
1286 account of the Florida Retirement System Investment Plan Trust
1287 Fund authorized under s. 121.4501(6), shall be forfeited upon
1288 payment of any vested benefit to a member or beneficiary, except
1289 for de minimis distributions or minimum required distributions
1290 as provided under this section. If any financial instrument
1291 issued for the payment of retirement benefits under this section
1292 is not presented for payment within 180 days after the last day
1293 of the month in which it was originally issued, the third-party
1294 administrator or other duly authorized agent of the state board
1295 shall cancel the instrument and credit the amount of the
1296 instrument to the suspense account of the Florida Retirement
1297 System Investment Plan Trust Fund authorized under s.
1298 121.4501(6). Any amounts transferred to the suspense account are
1299 payable upon a proper application, not to include earnings
1300 thereon, as provided in this section, within 10 years after the
1301 last day of the month in which the instrument was originally
1302 issued, after which time such amounts and any earnings
1303 attributable to employer contributions shall be forfeited. Any
1304 forfeited amounts are assets of the trust fund and are not
1305 subject to chapter 717.
1306 (2) DISABILITY RETIREMENT BENEFITS.—Benefits provided under
1307 this subsection are payable in lieu of the benefits that would
1308 otherwise be payable under the provisions of subsection (1).
1309 Such benefits must be funded from employer contributions made
1310 under s. 121.571, transferred employee contributions and funds
1311 accumulated pursuant to paragraph (a), and interest and earnings
1312 thereon.
1313 (b) Disability retirement; entitlement.—
1314 1.a. A member of the investment plan initially enrolled
1315 before January 1, 2014, who becomes totally and permanently
1316 disabled, as defined in paragraph (d), after completing 8 years
1317 of creditable service, or a member who becomes totally and
1318 permanently disabled in the line of duty regardless of length of
1319 service, is entitled to a monthly disability benefit.
1320 b. A member of the investment plan initially enrolled on or
1321 after January 1, 2014, who becomes totally and permanently
1322 disabled, as defined in paragraph (d), after completing 10 years
1323 of creditable service, or a member who becomes totally and
1324 permanently disabled in the line of duty regardless of service,
1325 is entitled to a monthly disability benefit.
1326 2. In order for service to apply toward the 8 years of
1327 creditable service required for regular disability benefits, or
1328 toward the creditable service used in calculating a service
1329 based benefit as provided under paragraph (g), the service must
1330 be creditable service as described below:
1331 a. The member’s period of service under the investment plan
1332 shall be considered creditable service, except as provided in
1333 subparagraph d.
1334 b. If the member has elected to retain credit for service
1335 under the pension plan as provided under s. 121.4501(3), all
1336 such service shall be considered creditable service.
1337 c. If the member elects to transfer to his or her member
1338 accounts a sum representing the present value of his or her
1339 retirement credit under the pension plan as provided under s.
1340 121.4501(3), the period of service under the pension plan
1341 represented in the present value amounts transferred shall be
1342 considered creditable service, except as provided in
1343 subparagraph d.
1344 d. If a member has terminated employment and has taken
1345 distribution of his or her funds as provided in subsection (1),
1346 all creditable service represented by such distributed funds is
1347 forfeited for purposes of this subsection.
1348 Section 8. Subsection (3) of section 121.71, Florida
1349 Statutes, is amended to read:
1350 121.71 Uniform rates; process; calculations; levy.—
1351 (3)(a) Required employee retirement contribution rates for
1352 each membership class and subclass of the Florida Retirement
1353 System for the pension plan both retirement plans are as
1354 follows:
1355 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011
1356
1357 Regular Class 3.00%
1358 Special Risk Class 3.00%
1359 Special Risk Administrative Support Class 3.00%
1360 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 3.00%
1361 Elected Officers’ Class— Justices, Judges 3.00%
1362 Elected Officers’ Class— County Elected Officers 3.00%
1363 Senior Management Service Class 3.00%
1364 DROP 0.00%
1365 (b) Required employee retirement contribution rates for
1366 each membership class and subclass of the Florida Retirement
1367 System for the investment plan are as follows:
1368 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011Percentage ofGrossCompensation,EffectiveJanuary 1, 2014
1369
1370 Regular Class 3.00% 2.00%
1371 Special Risk Class 3.00% 2.00%
1372 Special Risk Administrative Support Class 3.00% 2.00%
1373 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 3.00% 2.00%
1374 Elected Officers’ Class— Justices, Judges 3.00% 2.00%
1375 Elected Officers’ Class— County Elected Officers 3.00% 2.00%
1376 Senior Management Service Class 3.00% 2.00%
1377 Section 9. Paragraph (a) of subsection (4) of section
1378 121.35, Florida Statutes, is amended to read:
1379 121.35 Optional retirement program for the State University
1380 System.—
1381 (4) CONTRIBUTIONS.—
1382 (a)1. Through June 30, 2001, each employer shall contribute
1383 on behalf of each member of the optional retirement program an
1384 amount equal to the normal cost portion of the employer
1385 retirement contribution which would be required if the employee
1386 were a regular member of the Florida Retirement System Pension
1387 Plan, plus the portion of the contribution rate required in s.
1388 112.363(8) that would otherwise be assigned to the Retiree
1389 Health Insurance Subsidy Trust Fund.
1390 2. Effective July 1, 2001, through June 30, 2011, each
1391 employer shall contribute on behalf of each member of the
1392 optional retirement program an amount equal to 10.43 percent of
1393 the employee’s gross monthly compensation.
1394 3. Effective July 1, 2011, through June 30, 2012, each
1395 member of the optional retirement program shall contribute an
1396 amount equal to the employee contribution required in s.
1397 121.71(3)(a). The employer shall contribute on behalf of each
1398 such member an amount equal to the difference between 10.43
1399 percent of the employee’s gross monthly compensation and the
1400 amount equal to the employee’s required contribution based on
1401 the employee’s gross monthly compensation.
1402 4. Effective July 1, 2012, each member of the optional
1403 retirement program shall contribute an amount equal to the
1404 employee contribution required in s. 121.71(3)(a). The employer
1405 shall contribute on behalf of each such member an amount equal
1406 to the difference between 8.15 percent of the employee’s gross
1407 monthly compensation and the amount equal to the employee’s
1408 required contribution based on the employee’s gross monthly
1409 compensation.
1410 5. The payment of the contributions, including
1411 contributions by the employee, shall be made by the employer to
1412 the department, which shall forward the contributions to the
1413 designated company or companies contracting for payment of
1414 benefits for members of the program. However, such contributions
1415 paid on behalf of an employee described in paragraph (3)(c) may
1416 not be forwarded to a company and do not begin to accrue
1417 interest until the employee has executed a contract and notified
1418 the department. The department shall deduct an amount from the
1419 contributions to provide for the administration of this program.
1420 Section 10. Section 238.072, Florida Statutes, is amended
1421 to read:
1422 238.072 Special service provisions for extension
1423 personnel.—All state and county cooperative extension personnel
1424 holding appointments by the United States Department of
1425 Agriculture for extension work in agriculture and home economics
1426 in this state who are joint representatives of the University of
1427 Florida and the United States Department of Agriculture, as
1428 provided in s. 121.051(8) 121.051(7), who are members of the
1429 Teachers’ Retirement System, chapter 238, and who are prohibited
1430 from transferring to and participating in the Florida Retirement
1431 System, chapter 121, may retire with full benefits upon
1432 completion of 30 years of creditable service and shall be
1433 considered to have attained normal retirement age under this
1434 chapter, any law to the contrary notwithstanding. In order to
1435 comply with the provisions of s. 14, Art. X of the State
1436 Constitution, any liability accruing to the Florida Retirement
1437 System Trust Fund as a result of the provisions of this section
1438 shall be paid on an annual basis from the General Revenue Fund.
1439 Section 11. Subsection (11) of section 413.051, Florida
1440 Statutes, is amended to read:
1441 413.051 Eligible blind persons; operation of vending
1442 stands.—
1443 (11) Effective July 1, 1996, blind licensees who remain
1444 members of the Florida Retirement System pursuant to s.
1445 121.051(7)(b)1. 121.051(6)(b)1. shall pay any unappropriated
1446 retirement costs from their net profits or from program income.
1447 Within 30 days after the effective date of this act, each blind
1448 licensee who is eligible to maintain membership in the Florida
1449 Retirement System under s. 121.051(7)(b)1. 121.051(6)(b)1., but
1450 who elects to withdraw from the system as provided in s.
1451 121.051(7)(b)3. 121.051(6)(b)3., must, on or before July 31,
1452 1996, notify the Division of Blind Services and the Department
1453 of Management Services in writing of his or her election to
1454 withdraw. Failure to timely notify the divisions shall be deemed
1455 a decision to remain a compulsory member of the Florida
1456 Retirement System. However, if, at any time after July 1, 1996,
1457 sufficient funds are not paid by a blind licensee to cover the
1458 required contribution to the Florida Retirement System, that
1459 blind licensee shall become ineligible to participate in the
1460 Florida Retirement System on the last day of the first month for
1461 which no contribution is made or the amount contributed is
1462 insufficient to cover the required contribution. For any blind
1463 licensee who becomes ineligible to participate in the Florida
1464 Retirement System as described in this subsection, no creditable
1465 service shall be earned under the Florida Retirement System for
1466 any period following the month that retirement contributions
1467 ceased to be reported. However, any such person may participate
1468 in the Florida Retirement System in the future if employed by a
1469 participating employer in a covered position.
1470 Section 12. Paragraph (a) of subsection (4) of section
1471 1012.875, Florida Statutes, is amended to read:
1472 1012.875 State Community College System Optional Retirement
1473 Program.—Each Florida College System institution may implement
1474 an optional retirement program, if such program is established
1475 therefor pursuant to s. 1001.64(20), under which annuity or
1476 other contracts providing retirement and death benefits may be
1477 purchased by, and on behalf of, eligible employees who
1478 participate in the program, in accordance with s. 403(b) of the
1479 Internal Revenue Code. Except as otherwise provided herein, this
1480 retirement program, which shall be known as the State Community
1481 College System Optional Retirement Program, may be implemented
1482 and administered only by an individual Florida College System
1483 institution or by a consortium of Florida College System
1484 institutions.
1485 (4)(a)1. Through June 30, 2011, each college must
1486 contribute on behalf of each program member an amount equal to
1487 10.43 percent of the employee’s gross monthly compensation.
1488 2. Effective July 1, 2011, through June 30, 2012, each
1489 member shall contribute an amount equal to the employee
1490 contribution required under s. 121.71(3)(a). The employer shall
1491 contribute on behalf of each program member an amount equal to
1492 the difference between 10.43 percent of the employee’s gross
1493 monthly compensation and the employee’s required contribution
1494 based on the employee’s gross monthly compensation.
1495 3. Effective July 1, 2012, each member shall contribute an
1496 amount equal to the employee contribution required under s.
1497 121.71(3)(a). The employer shall contribute on behalf of each
1498 program member an amount equal to the difference between 8.15
1499 percent of the employee’s gross monthly compensation and the
1500 employee’s required contribution based on the employee’s gross
1501 monthly compensation.
1502 4. The college shall deduct an amount approved by the
1503 district board of trustees of the college to provide for the
1504 administration of the optional retirement program. Payment of
1505 this contribution must be made directly by the college or
1506 through the program administrator to the designated company
1507 contracting for payment of benefits to the program member.
1508 Section 13. (1) In order to fund the benefit changes
1509 provided for in this act, the required employer contribution
1510 rates of the Florida Retirement System established in 121.71(4),
1511 Florida Statutes, shall be adjusted as follows:
1512 (a) The Regular Class is increased by X.XX percentage
1513 points.
1514 (b) The Special Risk Class is increased by X.XX percentage
1515 points.
1516 (c) The Special Risk Administrative Support Class is
1517 increased by X.XX percentage points.
1518 (d) The Elected Officers’ Class—Legislators, Governor, Lt.
1519 Governor, Cabinet Officers, State Attorneys, Public Defenders is
1520 increased by X.XX percentage points.
1521 (e) The Elected Officers’ Class—Justices, Judges is
1522 increased by X.XX percentage points.
1523 (f) The Elected Officer’s Class—County Elected Officers is
1524 increased by X.XX percentage points.
1525 (g) The Senior Management Service Class is increased by
1526 X.XX percentage points.
1527 (h) The DROP class is increased by X.XX percentage points.
1528 (2) In order to fund for the benefit changes provided for
1529 in this act, the required employer contribution rates for the
1530 unfunded actuarial liability of the Florida Retirement System
1531 established in s. 121.71(5), Florida Statutes, shall be adjusted
1532 as follows:
1533 (a) The Regular Class is increased by X.XX percentage
1534 points.
1535 (b) The Special Risk Class is increased by X.XX percentage
1536 points.
1537 (c) The Special Risk Administrative Support Class is
1538 increased by X.XX percentage points.
1539 (d) The Elected Officers’ Class—Legislators, Governor, Lt.
1540 Governor, Cabinet Officers, State Attorneys, Public Defenders is
1541 increased by X.XX percentage points.
1542 (e) The Elected Officers’ Class—Justices, Judges is
1543 increased by X.XX percentage points.
1544 (f) The Elected Officer’s Class—County Elected Officers is
1545 increased by X.XX percentage points.
1546 (g) The Senior Management Service Class is increased by
1547 X.XX percentage points.
1548 (h) The DROP class is increased by X.XX percentage points.
1549 (3) The adjustments provided in subsections (1) and (2)
1550 shall be made in addition to other changes to such contribution
1551 rates which may be enacted into law to take effect on July 1,
1552 2013, and July 1, 2014. The Division of Law Revision and
1553 Information is requested to adjust accordingly the contribution
1554 rates provided in s. 121.71, Florida Statutes.
1555 Section 14. The Legislature finds that a proper and
1556 legitimate state purpose is served when employees and retirees
1557 of the state and its political subdivisions, and the dependents,
1558 survivors, and beneficiaries of such employees and retirees, are
1559 extended the basic protections afforded by governmental
1560 retirement systems. These persons must be provided benefits that
1561 are fair and adequate and that are managed, administered, and
1562 funded in an actuarially sound manner, as required by s. 14,
1563 Article X of the State Constitution and part VII of chapter 112,
1564 Florida Statutes. Therefore, the Legislature determines and
1565 declares that this act fulfills an important state interest.
1566 Section 15. This act shall take effect January 1, 2014.