Florida Senate - 2013                          SENATOR AMENDMENT
       Bill No. CS for CS for HB 7011
       
       
       
       
       
       
                                Barcode 268786                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                Floor: 2/F/2R          .                                
             04/30/2013 03:19 PM       .                                
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       Senator Simpson moved the following:
       
    1         Senate Substitute for Amendment (750668) (with title
    2  amendment)
    3  
    4         Delete everything after the enacting clause
    5  and insert:
    6         Section 1. Paragraph (c) of subsection (2) of section
    7  121.051, Florida Statutes, is amended, subsections (3) through
    8  (9) of that section are renumbered as subsections (4) through
    9  (10), respectively, and a new subsection (3) is added to that
   10  section, to read:
   11         121.051 Participation in the system.—
   12         (2) OPTIONAL PARTICIPATION.—
   13         (c) Employees of public community colleges or charter
   14  technical career centers sponsored by public community colleges,
   15  designated in s. 1000.21(3), who are members of the Regular
   16  Class of the Florida Retirement System and who comply with the
   17  criteria set forth in this paragraph and s. 1012.875 may, in
   18  lieu of participating in the Florida Retirement System, elect to
   19  withdraw from the system altogether and participate in the State
   20  Community College System Optional Retirement Program provided by
   21  the employing agency under s. 1012.875.
   22         1.a. Through June 30, 2001, the cost to the employer for
   23  benefits under the optional retirement program equals the normal
   24  cost portion of the employer retirement contribution which would
   25  be required if the employee were a member of the pension plan’s
   26  Regular Class, plus the portion of the contribution rate
   27  required by s. 112.363(8) which would otherwise be assigned to
   28  the Retiree Health Insurance Subsidy Trust Fund.
   29         b. Effective July 1, 2001, through June 30, 2011, each
   30  employer shall contribute on behalf of each member of the
   31  optional program an amount equal to 10.43 percent of the
   32  employee’s gross monthly compensation. The employer shall deduct
   33  an amount for the administration of the program.
   34         c. Effective July 1, 2011, through June 30, 2012, each
   35  member shall contribute an amount equal to the employee
   36  contribution required under s. 121.71(3). The employer shall
   37  contribute on behalf of each program member an amount equal to
   38  the difference between 10.43 percent of the employee’s gross
   39  monthly compensation and the employee’s required contribution
   40  based on the employee’s gross monthly compensation.
   41         d. Effective July 1, 2012, each member shall contribute an
   42  amount equal to the employee contribution required under s.
   43  121.71(3). The employer shall contribute on behalf of each
   44  program member an amount equal to the difference between 8.15
   45  percent of the employee’s gross monthly compensation and the
   46  employee’s required contribution based on the employee’s gross
   47  monthly compensation.
   48         e. The employer shall contribute an additional amount to
   49  the Florida Retirement System Trust Fund equal to the unfunded
   50  actuarial accrued liability portion of the Regular Class
   51  contribution rate.
   52         2. The decision to participate in the optional retirement
   53  program is irrevocable as long as the employee holds a position
   54  eligible for participation, except as provided in subparagraph
   55  3. Any service creditable under the Florida Retirement System is
   56  retained after the member withdraws from the system; however,
   57  additional service credit in the system may not be earned while
   58  a member of the optional retirement program.
   59         3. Effective July 1, 2003, through December 31, 2014, an
   60  employee who has elected to participate in the optional
   61  retirement program shall have one opportunity, at the employee’s
   62  discretion, to transfer from the optional retirement program to
   63  the pension plan of the Florida Retirement System or to the
   64  investment plan established under part II of this chapter,
   65  subject to the terms of the applicable optional retirement
   66  program contracts. Except as provided in subsection (3), an
   67  employee participating in the optional retirement program on or
   68  after January 1, 2015, is not eligible to transfer to the
   69  Florida Retirement System.
   70         a. If the employee chooses to move to the investment plan,
   71  any contributions, interest, and earnings creditable to the
   72  employee under the optional retirement program are retained by
   73  the employee in the optional retirement program, and the
   74  applicable provisions of s. 121.4501(4) govern the election.
   75         b. If the employee chooses to move to the pension plan of
   76  the Florida Retirement System, the employee shall receive
   77  service credit equal to his or her years of service under the
   78  optional retirement program.
   79         (I) The cost for such credit is the amount representing the
   80  present value of the employee’s accumulated benefit obligation
   81  for the affected period of service. The cost shall be calculated
   82  as if the benefit commencement occurs on the first date the
   83  employee becomes eligible for unreduced benefits, using the
   84  discount rate and other relevant actuarial assumptions that were
   85  used to value the Florida Retirement System Pension Plan
   86  liabilities in the most recent actuarial valuation. The
   87  calculation must include any service already maintained under
   88  the pension plan in addition to the years under the optional
   89  retirement program. The present value of any service already
   90  maintained must be applied as a credit to total cost resulting
   91  from the calculation. The division must ensure that the transfer
   92  sum is prepared using a formula and methodology certified by an
   93  enrolled actuary.
   94         (II) The employee must transfer from his or her optional
   95  retirement program account and from other employee moneys as
   96  necessary, a sum representing the present value of the
   97  employee’s accumulated benefit obligation immediately following
   98  the time of such movement, determined assuming that attained
   99  service equals the sum of service in the pension plan and
  100  service in the optional retirement program.
  101         4. Participation in the optional retirement program is
  102  limited to employees who satisfy the following eligibility
  103  criteria:
  104         a. The employee is otherwise eligible for membership or
  105  renewed membership in the Regular Class of the Florida
  106  Retirement System, as provided in s. 121.021(11) and (12) or s.
  107  121.122.
  108         b. The employee is employed in a full-time position
  109  classified in the Accounting Manual for Florida’s Public
  110  Community Colleges as:
  111         (I) Instructional; or
  112         (II) Executive Management, Instructional Management, or
  113  Institutional Management and the community college determines
  114  that recruiting to fill a vacancy in the position is to be
  115  conducted in the national or regional market, and the duties and
  116  responsibilities of the position include the formulation,
  117  interpretation, or implementation of policies, or the
  118  performance of functions that are unique or specialized within
  119  higher education and that frequently support the mission of the
  120  community college.
  121         c. The employee is employed in a position not included in
  122  the Senior Management Service Class of the Florida Retirement
  123  System as described in s. 121.055.
  124         5. Members of the program are subject to the same
  125  reemployment limitations, renewed membership provisions, and
  126  forfeiture provisions applicable to regular members of the
  127  Florida Retirement System under ss. 121.091(9), 121.122, and
  128  121.091(5), respectively. A member who receives a program
  129  distribution funded by employer and required employee
  130  contributions is deemed to be retired from a state-administered
  131  retirement system if the member is subsequently employed with an
  132  employer that participates in the Florida Retirement System.
  133         6. Eligible community college employees are compulsory
  134  members of the Florida Retirement System until, pursuant to s.
  135  1012.875, a written election to withdraw from the system and
  136  participate in the optional retirement program is filed with the
  137  program administrator and received by the division.
  138         a. A community college employee whose program eligibility
  139  results from initial employment shall be enrolled in the
  140  optional retirement program retroactive to the first day of
  141  eligible employment. The employer and employee retirement
  142  contributions paid through the month of the employee plan change
  143  shall be transferred to the community college to the employee’s
  144  optional program account, and, effective the first day of the
  145  next month, the employer shall pay the applicable contributions
  146  based upon subparagraph 1.
  147         b. A community college employee whose program eligibility
  148  is due to the subsequent designation of the employee’s position
  149  as one of those specified in subparagraph 4., or due to the
  150  employee’s appointment, promotion, transfer, or reclassification
  151  to a position specified in subparagraph 4., must be enrolled in
  152  the program on the first day of the first full calendar month
  153  that such change in status becomes effective. The employer and
  154  employee retirement contributions paid from the effective date
  155  through the month of the employee plan change must be
  156  transferred to the community college to the employee’s optional
  157  program account, and, effective the first day of the next month,
  158  the employer shall pay the applicable contributions based upon
  159  subparagraph 1.
  160         7. Effective July 1, 2003, through December 31, 2008, any
  161  member of the optional retirement program who has service credit
  162  in the pension plan of the Florida Retirement System for the
  163  period between his or her first eligibility to transfer from the
  164  pension plan to the optional retirement program and the actual
  165  date of transfer may, during employment, transfer to the
  166  optional retirement program a sum representing the present value
  167  of the accumulated benefit obligation under the defined benefit
  168  retirement program for the period of service credit. Upon
  169  transfer, all service credit previously earned under the pension
  170  plan during this period is nullified for purposes of entitlement
  171  to a future benefit under the pension plan.
  172         (3) INVESTMENT PLAN MEMBERSHIP COMPULSORY.-
  173         (a) All eligible employees, except those eligible to
  174  withdraw from the system under s. 121.052(3)(d) or s.
  175  121.055(1)(b)2., or those eligible for optional retirement
  176  programs under s. 121.051(1)(a), s. 121.051(2)(c), or s. 121.35,
  177  initially enrolled on or after January 1, 2015, are compulsory
  178  members of the investment plan, and membership in the pension
  179  plan is not permitted. Employees initially enrolled on or after
  180  January 1, 2015, are not eligible to use the election
  181  opportunity specified in s. 121.4501(4)(e).
  182         (b) Employees eligible to withdraw from the system under s.
  183  121.052(3)(d) or s. 121.055(1)(b)2., may choose to withdraw from
  184  the system or to participate in the investment plan as provided
  185  in those sections. Employees eligible for optional retirement
  186  programs under s. 121.051(2)(c) or s. 121.35, may choose to
  187  participate in the optional retirement program or the investment
  188  plan as provided in those sections. Eligible employees required
  189  to participate in the optional retirement program under s.
  190  121.35, pursuant to s. 121.051(1)(a), must participate in the
  191  investment plan when employed in a position not eligible for the
  192  optional retirement program.
  193         Section 2. Paragraph (c) of subsection (3) of section
  194  121.052, Florida Statutes, is amended to read:
  195         121.052 Membership class of elected officers.—
  196         (3) PARTICIPATION AND WITHDRAWAL, GENERALLY.—Effective July
  197  1, 1990, participation in the Elected Officers’ Class shall be
  198  compulsory for elected officers listed in paragraphs (2)(a)-(d)
  199  and (f) assuming office on or after said date, unless the
  200  elected officer elects membership in another class or withdraws
  201  from the Florida Retirement System as provided in paragraphs
  202  (3)(a)-(d):
  203         (c) Before January 1, 2014, any elected officer may, within
  204  6 months after assuming office, or within 6 months after this
  205  act becomes a law for serving elected officers, elect membership
  206  in the Senior Management Service Class as provided in s. 121.055
  207  in lieu of membership in the Elected Officers’ Class. Any such
  208  election made by a county elected officer shall have no effect
  209  upon the statutory limit on the number of nonelective full-time
  210  positions that may be designated by a local agency employer for
  211  inclusion in the Senior Management Service Class under s.
  212  121.055(1)(b)1.
  213         Section 3. Paragraph (f) of subsection (1) and paragraph
  214  (c) of subsection (6) of section 121.055, Florida Statutes, are
  215  amended to read:
  216         121.055 Senior Management Service Class.—There is hereby
  217  established a separate class of membership within the Florida
  218  Retirement System to be known as the “Senior Management Service
  219  Class,” which shall become effective February 1, 1987.
  220         (1)
  221         (f) Effective July 1, 1997, through December 31, 2013:
  222         1. Except as provided in subparagraphs subparagraph 3. and
  223  4., an elected state officer eligible for membership in the
  224  Elected Officers’ Class under s. 121.052(2)(a), (b), or (c) who
  225  elects membership in the Senior Management Service Class under
  226  s. 121.052(3)(c) may, within 6 months after assuming office or
  227  within 6 months after this act becomes a law for serving elected
  228  state officers, elect to participate in the Senior Management
  229  Service Optional Annuity Program, as provided in subsection (6),
  230  in lieu of membership in the Senior Management Service Class.
  231         2. Except as provided in subparagraphs subparagraph 3. and
  232  4., an elected officer of a local agency employer eligible for
  233  membership in the Elected Officers’ Class under s. 121.052(2)(d)
  234  who elects membership in the Senior Management Service Class
  235  under s. 121.052(3)(c) may, within 6 months after assuming
  236  office, or within 6 months after this act becomes a law for
  237  serving elected officers of a local agency employer, elect to
  238  withdraw from the Florida Retirement System, as provided in
  239  subparagraph (b)2., in lieu of membership in the Senior
  240  Management Service Class.
  241         3. A retiree of a state-administered retirement system who
  242  is initially reemployed in a regularly established position on
  243  or after July 1, 2010, as an elected official eligible for the
  244  Elected Officers’ Class may not be enrolled in renewed
  245  membership in the Senior Management Service Class or in the
  246  Senior Management Service Optional Annuity Program as provided
  247  in subsection (6), and may not withdraw from the Florida
  248  Retirement System as a renewed member as provided in
  249  subparagraph (b)2., as applicable, in lieu of membership in the
  250  Senior Management Service Class.
  251         4. On or after January 1, 2014, an elected official
  252  eligible for membership in the Elected Officers’ Class may not
  253  be enrolled in the Senior Management Service Class or in the
  254  Senior Management Service Optional Annuity Program as provided
  255  in subsection (6).
  256         (6)
  257         (c) Participation.—
  258         1. An eligible employee who is employed on or before
  259  February 1, 1987, may elect to participate in the optional
  260  annuity program in lieu of participating in the Senior
  261  Management Service Class. Such election must be made in writing
  262  and filed with the department and the personnel officer of the
  263  employer on or before May 1, 1987. An eligible employee who is
  264  employed on or before February 1, 1987, and who fails to make an
  265  election to participate in the optional annuity program by May
  266  1, 1987, shall be deemed to have elected membership in the
  267  Senior Management Service Class.
  268         2. Except as provided in subparagraph 6., an employee who
  269  becomes eligible to participate in the optional annuity program
  270  by reason of initial employment commencing after February 1,
  271  1987, may, within 90 days after the date of commencing
  272  employment, elect to participate in the optional annuity
  273  program. Such election must be made in writing and filed with
  274  the personnel officer of the employer. An eligible employee who
  275  does not within 90 days after commencing employment elect to
  276  participate in the optional annuity program shall be deemed to
  277  have elected membership in the Senior Management Service Class.
  278         3. A person who is appointed to a position in the Senior
  279  Management Service Class and who is a member of an existing
  280  retirement system or the Special Risk or Special Risk
  281  Administrative Support Classes of the Florida Retirement System
  282  may elect to remain in such system or class in lieu of
  283  participating in the Senior Management Service Class or optional
  284  annuity program. Such election must be made in writing and filed
  285  with the department and the personnel officer of the employer
  286  within 90 days after such appointment. An eligible employee who
  287  fails to make an election to participate in the existing system,
  288  the Special Risk Class of the Florida Retirement System, the
  289  Special Risk Administrative Support Class of the Florida
  290  Retirement System, or the optional annuity program shall be
  291  deemed to have elected membership in the Senior Management
  292  Service Class.
  293         4. Except as provided in subparagraph 5., an employee’s
  294  election to participate in the optional annuity program is
  295  irrevocable if the employee continues to be employed in an
  296  eligible position and continues to meet the eligibility
  297  requirements set forth in this paragraph.
  298         5. Effective from July 1, 2002, through September 30, 2002,
  299  an active employee in a regularly established position who has
  300  elected to participate in the Senior Management Service Optional
  301  Annuity Program has one opportunity to choose to move from the
  302  Senior Management Service Optional Annuity Program to the
  303  Florida Retirement System Pension Plan.
  304         a. The election must be made in writing and must be filed
  305  with the department and the personnel officer of the employer
  306  before October 1, 2002, or, in the case of an active employee
  307  who is on a leave of absence on July 1, 2002, within 90 days
  308  after the conclusion of the leave of absence. This election is
  309  irrevocable.
  310         b. The employee shall receive service credit under the
  311  pension plan equal to his or her years of service under the
  312  Senior Management Service Optional Annuity Program. The cost for
  313  such credit is the amount representing the present value of that
  314  employee’s accumulated benefit obligation for the affected
  315  period of service.
  316         c. The employee must transfer the total accumulated
  317  employer contributions and earnings on deposit in his or her
  318  Senior Management Service Optional Annuity Program account. If
  319  the transferred amount is not sufficient to pay the amount due,
  320  the employee must pay a sum representing the remainder of the
  321  amount due. The employee may not retain any employer
  322  contributions or earnings from the Senior Management Service
  323  Optional Annuity Program account.
  324         6. A retiree of a state-administered retirement system who
  325  is initially reemployed on or after July 1, 2010, may not renew
  326  membership in the Senior Management Service Optional Annuity
  327  Program.
  328         7. Effective January 1, 2014, the Senior Management Service
  329  Optional Annuity Program is closed to new members. Members
  330  enrolled in the Senior Management Service Optional Annuity
  331  Program before January 1, 2014, may retain their membership in
  332  the annuity program.
  333         Section 4. Paragraph (c) of subsection (3) of section
  334  121.35, Florida Statutes, is amended to read:
  335         121.35 Optional retirement program for the State University
  336  System.—
  337         (3) ELECTION OF OPTIONAL PROGRAM.—
  338         (c) Any employee who becomes eligible to participate in the
  339  optional retirement program on or after January 1, 1993, shall
  340  be a compulsory participant of the program unless such employee
  341  elects membership in the Florida Retirement System. Such
  342  election shall be made in writing and filed with the personnel
  343  officer of the employer. Any eligible employee who fails to make
  344  such election within the prescribed time period shall be deemed
  345  to have elected to participate in the optional retirement
  346  program.
  347         1. Any employee whose optional retirement program
  348  eligibility results from initial employment shall be enrolled in
  349  the program at the commencement of employment. If, within 90
  350  days after commencement of employment, the employee elects
  351  membership in the Florida Retirement System, such membership
  352  shall be effective retroactive to the date of commencement of
  353  employment as provided in s. 121.4501(4).
  354         2. Any employee whose optional retirement program
  355  eligibility results from a change in status due to the
  356  subsequent designation of the employee’s position as one of
  357  those specified in paragraph (2)(a) or due to the employee’s
  358  appointment, promotion, transfer, or reclassification to a
  359  position specified in paragraph (2)(a) shall be enrolled in the
  360  optional retirement program upon such change in status and shall
  361  be notified by the employer of such action. If, within 90 days
  362  after the date of such notification, the employee elects to
  363  retain membership in the Florida Retirement System, such
  364  continuation of membership shall be retroactive to the date of
  365  the change in status.
  366         3. Notwithstanding subparagraphs 1. and 2. the provisions
  367  of this paragraph, effective July 1, 1997, any employee who is
  368  eligible to participate in the Optional Retirement Program and
  369  who fails to execute a contract with one of the approved
  370  companies and to notify the department in writing as provided in
  371  subsection (4) within 90 days after the date of eligibility
  372  shall be deemed to have elected membership in the Florida
  373  Retirement System, except as provided in s. 121.051(1)(a). This
  374  provision shall also apply to any employee who terminates
  375  employment in an eligible position before executing the required
  376  investment annuity contract and notifying the department. Such
  377  membership shall be retroactive to the date of eligibility, and
  378  all appropriate contributions shall be transferred to the
  379  Florida Retirement System Trust Fund and the Health Insurance
  380  Subsidy Trust Fund. If a member is initially enrolled on or
  381  after January 1, 2015, the member is deemed to have elected
  382  membership in the Florida Retirement System Investment Plan and
  383  such membership shall be retroactive to the date of eligibility.
  384  All contributions required under s. 121.72, shall be transferred
  385  to a default fund in the investment plan as provided in s.
  386  121.4501(4)(f), and the Health Insurance Subsidy Trust Fund.
  387         Section 5. Subsections (1) and (4), paragraph (c) of
  388  subsection (5), subsection (8), paragraph (a) of subsection (9),
  389  paragraphs (a), (b), (c), and (h) of subsection (10), and
  390  paragraphs (a) and (c) of subsection (15) of section 121.4501,
  391  Florida Statutes, are amended, and paragraph (h) is added to
  392  subsection (9) of that section, to read:
  393         121.4501 Florida Retirement System Investment Plan.—
  394         (1) The Trustees of the State Board of Administration shall
  395  establish a defined contribution program called the “Florida
  396  Retirement System Investment Plan” or “investment plan” for
  397  members of the Florida Retirement System under which retirement
  398  benefits will be provided for eligible employees initially
  399  enrolled before January 1, 2015, who elect to participate in the
  400  program, and for all eligible employees initially enrolled on or
  401  after January 1, 2015, who shall be compulsory members unless
  402  otherwise eligible to withdraw from the system under s.
  403  121.052(3)(d) or s. 121.055(1)(b)2., or to participate in an
  404  optional retirement program under s. 121.051(1)(a), s.
  405  121.051(2)(c), or s. 121.35. The retirement benefits shall be
  406  provided through member-directed investments, in accordance with
  407  s. 401(a) of the Internal Revenue Code and related regulations.
  408  The employer and employee shall make contributions, as provided
  409  in this section and ss. 121.571 and 121.71, to the Florida
  410  Retirement System Investment Plan Trust Fund toward the funding
  411  of benefits.
  412         (4) PARTICIPATION; ENROLLMENT.—
  413         (a)1. Effective June 1, 2002, through February 28, 2003, a
  414  90-day election period is provided to each eligible employee
  415  participating in the Florida Retirement System, preceded by a
  416  90-day education period, permitting each eligible employee to
  417  elect membership in the investment plan, and an employee who
  418  fails to elect the investment plan during the election period
  419  remains in the pension plan. An eligible employee employed in a
  420  regularly established position during the election period is
  421  granted the option to make one subsequent election, as provided
  422  in paragraph (e). With respect to an eligible employee who does
  423  not participate in the initial election period or who is
  424  initially employed in a regularly established position after the
  425  close of the initial election period but before January 1, 2015,
  426  on June 1, 2002, by a state employer:
  427         a. Any such employee may elect to participate in the
  428  investment plan in lieu of retaining his or her membership in
  429  the pension plan. The election must be made in writing or by
  430  electronic means and must be filed with the third-party
  431  administrator by August 31, 2002, or, in the case of an active
  432  employee who is on a leave of absence on April 1, 2002, by the
  433  last business day of the 5th month following the month the leave
  434  of absence concludes. This election is irrevocable, except as
  435  provided in paragraph (g). Upon making such election, the
  436  employee shall be enrolled as a member of the investment plan,
  437  the employee’s membership in the Florida Retirement System is
  438  governed by the provisions of this part, and the employee’s
  439  membership in the pension plan terminates. The employee’s
  440  enrollment in the investment plan is effective the first day of
  441  the month for which a full month’s employer contribution is made
  442  to the investment plan.
  443         b. Any such employee who fails to elect to participate in
  444  the investment plan within the prescribed time period is deemed
  445  to have elected to retain membership in the pension plan, and
  446  the employee’s option to elect to participate in the investment
  447  plan is forfeited.
  448         2. With respect to employees who become eligible to
  449  participate in the investment plan by reason of employment in a
  450  regularly established position with a state employer commencing
  451  after April 1, 2002:
  452         a. Any such employee shall, by default, be enrolled in the
  453  pension plan at the commencement of employment, and may, by the
  454  last business day of the 5th month following the employee’s
  455  month of hire, elect to participate in the investment plan. The
  456  employee’s election must be made in writing or by electronic
  457  means and must be filed with the third-party administrator. The
  458  election to participate in the investment plan is irrevocable,
  459  except as provided in paragraph (e) (g).
  460         a.b. If the employee files such election within the
  461  prescribed time period, enrollment in the investment plan is
  462  effective on the first day of employment. The retirement
  463  contributions paid through the month of the employee plan change
  464  shall be transferred to the investment program, and, effective
  465  the first day of the next month, the employer and employee must
  466  pay the applicable contributions based on the employee
  467  membership class in the program.
  468         b.c. An employee who fails to elect to participate in the
  469  investment plan within the prescribed time period is deemed to
  470  have elected to retain membership in the pension plan, and the
  471  employee’s option to elect to participate in the investment plan
  472  is forfeited.
  473         2.3. With respect to employees who become eligible to
  474  participate in the investment plan pursuant to s.
  475  121.051(2)(c)3. or s. 121.35(3)(i), the employee may elect to
  476  participate in the investment plan in lieu of retaining his or
  477  her membership in the State Community College System Optional
  478  Retirement Program or the State University System Optional
  479  Retirement Program. The election must be made in writing or by
  480  electronic means and must be filed with the third-party
  481  administrator. This election is irrevocable, except as provided
  482  in paragraph (e) (g). Upon making such election, the employee
  483  shall be enrolled as a member in the investment plan, the
  484  employee’s membership in the Florida Retirement System is
  485  governed by the provisions of this part, and the employee’s
  486  participation in the State Community College System Optional
  487  Retirement Program or the State University System Optional
  488  Retirement Program terminates. The employee’s enrollment in the
  489  investment plan is effective on the first day of the month for
  490  which a full month’s employer and employee contribution is made
  491  to the investment plan.
  492         4. For purposes of this paragraph, “state employer” means
  493  any agency, board, branch, commission, community college,
  494  department, institution, institution of higher education, or
  495  water management district of the state, which participates in
  496  the Florida Retirement System for the benefit of certain
  497  employees.
  498         (b)1. With respect to an eligible employee who is employed
  499  in a regularly established position on September 1, 2002, by a
  500  district school board employer:
  501         a. Any such employee may elect to participate in the
  502  investment plan in lieu of retaining his or her membership in
  503  the pension plan. The election must be made in writing or by
  504  electronic means and must be filed with the third-party
  505  administrator by November 30, or, in the case of an active
  506  employee who is on a leave of absence on July 1, 2002, by the
  507  last business day of the 5th month following the month the leave
  508  of absence concludes. This election is irrevocable, except as
  509  provided in paragraph (g). Upon making such election, the
  510  employee shall be enrolled as a member of the investment plan,
  511  the employee’s membership in the Florida Retirement System is
  512  governed by the provisions of this part, and the employee’s
  513  membership in the pension plan terminates. The employee’s
  514  enrollment in the investment plan is effective the first day of
  515  the month for which a full month’s employer contribution is made
  516  to the investment program.
  517         b. Any such employee who fails to elect to participate in
  518  the investment plan within the prescribed time period is deemed
  519  to have elected to retain membership in the pension plan, and
  520  the employee’s option to elect to participate in the investment
  521  plan is forfeited.
  522         2. With respect to employees who become eligible to
  523  participate in the investment plan by reason of employment in a
  524  regularly established position with a district school board
  525  employer commencing after July 1, 2002:
  526         a. Any such employee shall, by default, be enrolled in the
  527  pension plan at the commencement of employment, and may, by the
  528  last business day of the 5th month following the employee’s
  529  month of hire, elect to participate in the investment plan. The
  530  employee’s election must be made in writing or by electronic
  531  means and must be filed with the third-party administrator. The
  532  election to participate in the investment plan is irrevocable,
  533  except as provided in paragraph (g).
  534         b. If the employee files such election within the
  535  prescribed time period, enrollment in the investment plan is
  536  effective on the first day of employment. The employer
  537  retirement contributions paid through the month of the employee
  538  plan change shall be transferred to the investment plan, and,
  539  effective the first day of the next month, the employer shall
  540  pay the applicable contributions based on the employee
  541  membership class in the investment plan.
  542         c. Any such employee who fails to elect to participate in
  543  the investment plan within the prescribed time period is deemed
  544  to have elected to retain membership in the pension plan, and
  545  the employee’s option to elect to participate in the investment
  546  plan is forfeited.
  547         3. For purposes of this paragraph, “district school board
  548  employer” means any district school board that participates in
  549  the Florida Retirement System for the benefit of certain
  550  employees, or a charter school or charter technical career
  551  center that participates in the Florida Retirement System as
  552  provided in s. 121.051(2)(d).
  553         (c)1. With respect to an eligible employee who is employed
  554  in a regularly established position on December 1, 2002, by a
  555  local employer:
  556         a. Any such employee may elect to participate in the
  557  investment plan in lieu of retaining his or her membership in
  558  the pension plan. The election must be made in writing or by
  559  electronic means and must be filed with the third-party
  560  administrator by February 28, 2003, or, in the case of an active
  561  employee who is on a leave of absence on October 1, 2002, by the
  562  last business day of the 5th month following the month the leave
  563  of absence concludes. This election is irrevocable, except as
  564  provided in paragraph (g). Upon making such election, the
  565  employee shall be enrolled as a participant of the investment
  566  plan, the employee’s membership in the Florida Retirement System
  567  is governed by the provisions of this part, and the employee’s
  568  membership in the pension plan terminates. The employee’s
  569  enrollment in the investment plan is effective the first day of
  570  the month for which a full month’s employer contribution is made
  571  to the investment plan.
  572         b. Any such employee who fails to elect to participate in
  573  the investment plan within the prescribed time period is deemed
  574  to have elected to retain membership in the pension plan, and
  575  the employee’s option to elect to participate in the investment
  576  plan is forfeited.
  577         2. With respect to employees who become eligible to
  578  participate in the investment plan by reason of employment in a
  579  regularly established position with a local employer commencing
  580  after October 1, 2002:
  581         a. Any such employee shall, by default, be enrolled in the
  582  pension plan at the commencement of employment, and may, by the
  583  last business day of the 5th month following the employee’s
  584  month of hire, elect to participate in the investment plan. The
  585  employee’s election must be made in writing or by electronic
  586  means and must be filed with the third-party administrator. The
  587  election to participate in the investment plan is irrevocable,
  588  except as provided in paragraph (g).
  589         b. If the employee files such election within the
  590  prescribed time period, enrollment in the investment plan is
  591  effective on the first day of employment. The employer
  592  retirement contributions paid through the month of the employee
  593  plan change shall be transferred to the investment plan, and,
  594  effective the first day of the next month, the employer shall
  595  pay the applicable contributions based on the employee
  596  membership class in the investment plan.
  597         c. Any such employee who fails to elect to participate in
  598  the investment plan within the prescribed time period is deemed
  599  to have elected to retain membership in the pension plan, and
  600  the employee’s option to elect to participate in the investment
  601  plan is forfeited.
  602         3. For purposes of this paragraph, “local employer” means
  603  any employer not included in paragraph (a) or paragraph (b).
  604         (b)(d) Contributions available for self-direction by a
  605  member who has not selected one or more specific investment
  606  products shall be allocated as prescribed by the state board.
  607  The third-party administrator shall notify the member at least
  608  quarterly that the member should take an affirmative action to
  609  make an asset allocation among the investment products.
  610         (c)(e) On or after July 1, 2011, a member of the pension
  611  plan who obtains a refund of employee contributions retains his
  612  or her prior plan choice upon return to employment in a
  613  regularly established position with a participating employer.
  614         (d)(f) A member of the investment plan who takes a
  615  distribution of any contributions from his or her investment
  616  plan account is considered a retiree. A retiree who is initially
  617  reemployed in a regularly established position on or after July
  618  1, 2010, is not eligible to be enrolled in renewed membership.
  619         (e)(g) After the period during which an eligible employee
  620  initially enrolled before January 1, 2015, had the choice to
  621  elect the pension plan or the investment plan, or the month
  622  following the receipt of the eligible employee’s plan election,
  623  if sooner, the employee shall have one opportunity, at the
  624  employee’s discretion, to choose to move from the pension plan
  625  to the investment plan or from the investment plan to the
  626  pension plan. Eligible employees may elect to move between plans
  627  only if they are earning service credit in an employer-employee
  628  relationship consistent with s. 121.021(17)(b), excluding leaves
  629  of absence without pay. Effective July 1, 2005, such elections
  630  are effective on the first day of the month following the
  631  receipt of the election by the third-party administrator and are
  632  not subject to the requirements regarding an employer-employee
  633  relationship or receipt of contributions for the eligible
  634  employee in the effective month, except when the election is
  635  received by the third-party administrator. This paragraph is
  636  contingent upon approval by the Internal Revenue Service.
  637         1. If the employee chooses to move to the investment plan,
  638  the provisions of subsection (3) govern the transfer.
  639         2. If the employee chooses to move to the pension plan, the
  640  employee must transfer from his or her investment plan account,
  641  and from other employee moneys as necessary, a sum representing
  642  the present value of that employee’s accumulated benefit
  643  obligation immediately following the time of such movement,
  644  determined assuming that attained service equals the sum of
  645  service in the pension plan and service in the investment plan.
  646  Benefit commencement occurs on the first date the employee is
  647  eligible for unreduced benefits, using the discount rate and
  648  other relevant actuarial assumptions that were used to value the
  649  pension plan liabilities in the most recent actuarial valuation.
  650  For any employee who, at the time of the second election,
  651  already maintains an accrued benefit amount in the pension plan,
  652  the then-present value of the accrued benefit is deemed part of
  653  the required transfer amount. The division must ensure that the
  654  transfer sum is prepared using a formula and methodology
  655  certified by an enrolled actuary. A refund of any employee
  656  contributions or additional member payments made which exceed
  657  the employee contributions that would have accrued had the
  658  member remained in the pension plan and not transferred to the
  659  investment plan is not permitted.
  660         3. Notwithstanding subparagraph 2., an employee who chooses
  661  to move to the pension plan and who became eligible to
  662  participate in the investment plan by reason of employment in a
  663  regularly established position with a state employer after June
  664  1, 2002; a district school board employer after September 1,
  665  2002; or a local employer after December 1, 2002, must transfer
  666  from his or her investment plan account, and from other employee
  667  moneys as necessary, a sum representing the employee’s actuarial
  668  accrued liability. A refund of any employee contributions or
  669  additional member participant payments made which exceed the
  670  employee contributions that would have accrued had the member
  671  remained in the pension plan and not transferred to the
  672  investment plan is not permitted.
  673         4. An employee’s ability to transfer from the pension plan
  674  to the investment plan pursuant to paragraph (a) paragraphs (a)
  675  (d), and the ability of a current employee to have an option to
  676  later transfer back into the pension plan under subparagraph 2.,
  677  shall be deemed a significant system amendment. Pursuant to s.
  678  121.031(4), any resulting unfunded liability arising from actual
  679  original transfers from the pension plan to the investment plan
  680  must be amortized within 30 plan years as a separate unfunded
  681  actuarial base independent of the reserve stabilization
  682  mechanism defined in s. 121.031(3)(f). For the first 25 years, a
  683  direct amortization payment may not be calculated for this base.
  684  During this 25-year period, the separate base shall be used to
  685  offset the impact of employees exercising their second program
  686  election under this paragraph. The actuarial funded status of
  687  the pension plan will not be affected by such second program
  688  elections in any significant manner, after due recognition of
  689  the separate unfunded actuarial base. Following the initial 25
  690  year period, any remaining balance of the original separate base
  691  shall be amortized over the remaining 5 years of the required
  692  30-year amortization period.
  693         5. If the employee chooses to transfer from the investment
  694  plan to the pension plan and retains an excess account balance
  695  in the investment plan after satisfying the buy-in requirements
  696  under this paragraph, the excess may not be distributed until
  697  the member retires from the pension plan. The excess account
  698  balance may be rolled over to the pension plan and used to
  699  purchase service credit or upgrade creditable service in the
  700  pension plan.
  701         (f) All eligible employees, except those eligible to
  702  withdraw from the system under s. 121.052(3)(d) or s.
  703  121.055(1)(b)2., or those eligible for optional retirement
  704  programs under s. 121.051(1)(a), s. 121.051(2)(c), or s. 121.35,
  705  initially enrolled on or after January 1, 2015, are compulsory
  706  members of the investment plan. Employees eligible to withdraw
  707  from the system under s. 121.052(3)(d) or s. 121.055(1)(b)2.,
  708  may choose to withdraw from the system or to participate in the
  709  investment plan as provided in those sections. Employees
  710  eligible for optional retirement programs under s. 121.051(2)(c)
  711  or s. 121.35, except as provided in s. 121.051(1)(a), may choose
  712  to participate in the optional retirement program or the
  713  investment plan as provided in those sections. Membership in the
  714  pension plan is not permitted except as provided in s.
  715  121.591(2).
  716         1. Employees initially enrolled on or after January 1,
  717  2015, are not permitted to use the election opportunity
  718  specified in paragraph (e).
  719         2. The amount of retirement contributions paid by the
  720  employee and employer, as required under s. 121.72, shall be
  721  placed in a default fund as designated by the state board, until
  722  an account is activated in the investment plan, at which time
  723  the member may move the contributions from the default fund to
  724  other funds provided in the investment plan.
  725         (5) CONTRIBUTIONS.—
  726         (c) The state board, acting as plan fiduciary, must ensure
  727  that all plan assets are held in a trust, pursuant to s. 401 of
  728  the Internal Revenue Code. The fiduciary must ensure that such
  729  contributions are allocated as follows:
  730         1. The employer and employee contribution portion earmarked
  731  for member accounts shall be used to purchase interests in the
  732  appropriate investment vehicles as specified by the member, or
  733  in accordance with paragraph (4)(b) (4)(d).
  734         2. The employer contribution portion earmarked for
  735  administrative and educational expenses shall be transferred to
  736  the Florida Retirement System Investment Plan Trust Fund.
  737         3. The employer contribution portion earmarked for
  738  disability benefits shall be transferred to the Florida
  739  Retirement System Trust Fund.
  740         (8) INVESTMENT PLAN ADMINISTRATION.—The investment plan
  741  shall be administered by the state board and affected employers.
  742  The state board may require oaths, by affidavit or otherwise,
  743  and acknowledgments from persons in connection with the
  744  administration of its statutory duties and responsibilities for
  745  the investment plan. An oath, by affidavit or otherwise, may not
  746  be required of a member at the time of enrollment. For members
  747  initially enrolled before January 1, 2015, acknowledgment of an
  748  employee’s election to participate in the program shall be no
  749  greater than necessary to confirm the employee’s election. The
  750  state board shall adopt rules to carry out its statutory duties
  751  with respect to administering the investment plan, including
  752  establishing the roles and responsibilities of affected state,
  753  local government, and education-related employers, the state
  754  board, the department, and third-party contractors. The
  755  department shall adopt rules necessary to administer the
  756  investment plan in coordination with the pension plan and the
  757  disability benefits available under the investment plan.
  758         (a)1. The state board shall select and contract with a
  759  third-party administrator to provide administrative services if
  760  those services cannot be competitively and contractually
  761  provided by the division. With the approval of the state board,
  762  the third-party administrator may subcontract to provide
  763  components of the administrative services. As a cost of
  764  administration, the state board may compensate any such
  765  contractor for its services, in accordance with the terms of the
  766  contract, as is deemed necessary or proper by the board. The
  767  third-party administrator may not be an approved provider or be
  768  affiliated with an approved provider.
  769         2. These administrative services may include, but are not
  770  limited to, enrollment of eligible employees, collection of
  771  employer and employee contributions, disbursement of
  772  contributions to approved providers in accordance with the
  773  allocation directions of members; services relating to
  774  consolidated billing; individual and collective recordkeeping
  775  and accounting; asset purchase, control, and safekeeping; and
  776  direct disbursement of funds to and from the third-party
  777  administrator, the division, the state board, employers,
  778  members, approved providers, and beneficiaries. This section
  779  does not prevent or prohibit a bundled provider from providing
  780  any administrative or customer service, including accounting and
  781  administration of individual member benefits and contributions;
  782  individual member recordkeeping; asset purchase, control, and
  783  safekeeping; direct execution of the member’s instructions as to
  784  asset and contribution allocation; calculation of daily net
  785  asset values; direct access to member account information; or
  786  periodic reporting to members, at least quarterly, on account
  787  balances and transactions, if these services are authorized by
  788  the state board as part of the contract.
  789         (b)1. The state board shall select and contract with one or
  790  more organizations to provide educational services. With
  791  approval of the state board, the organizations may subcontract
  792  to provide components of the educational services. As a cost of
  793  administration, the state board may compensate any such
  794  contractor for its services in accordance with the terms of the
  795  contract, as is deemed necessary or proper by the board. The
  796  education organization may not be an approved provider or be
  797  affiliated with an approved provider.
  798         2. Educational services shall be designed by the state
  799  board and department to assist employers, eligible employees,
  800  members, and beneficiaries in order to maintain compliance with
  801  United States Department of Labor regulations under s. 404(c) of
  802  the Employee Retirement Income Security Act of 1974 and to
  803  assist employees in their choice of pension plan or investment
  804  plan retirement alternatives. Educational services include, but
  805  are not limited to, disseminating educational materials;
  806  providing retirement planning education; explaining the pension
  807  plan and the investment plan; and offering financial planning
  808  guidance on matters such as investment diversification,
  809  investment risks, investment costs, and asset allocation. An
  810  approved provider may also provide educational information,
  811  including retirement planning and investment allocation
  812  information concerning its products and services.
  813         (c)1. In evaluating and selecting a third-party
  814  administrator, the state board shall establish criteria for
  815  evaluating the relative capabilities and qualifications of each
  816  proposed administrator. In developing such criteria, the state
  817  board shall consider:
  818         a. The administrator’s demonstrated experience in providing
  819  administrative services to public or private sector retirement
  820  systems.
  821         b. The administrator’s demonstrated experience in providing
  822  daily valued recordkeeping to defined contribution programs.
  823         c. The administrator’s ability and willingness to
  824  coordinate its activities with employers, the state board, and
  825  the division, and to supply to such employers, the board, and
  826  the division the information and data they require, including,
  827  but not limited to, monthly management reports, quarterly member
  828  reports, and ad hoc reports requested by the department or state
  829  board.
  830         d. The cost-effectiveness and levels of the administrative
  831  services provided.
  832         e. The administrator’s ability to interact with the
  833  members, the employers, the state board, the division, and the
  834  providers; the means by which members may access account
  835  information, direct investment of contributions, make changes to
  836  their accounts, transfer moneys between available investment
  837  vehicles, and transfer moneys between investment products; and
  838  any fees that apply to such activities.
  839         f. Any other factor deemed necessary by the state board.
  840         2. In evaluating and selecting an educational provider, the
  841  state board shall establish criteria under which it shall
  842  consider the relative capabilities and qualifications of each
  843  proposed educational provider. In developing such criteria, the
  844  state board shall consider:
  845         a. Demonstrated experience in providing educational
  846  services to public or private sector retirement systems.
  847         b. Ability and willingness to coordinate its activities
  848  with the employers, the state board, and the division, and to
  849  supply to such employers, the board, and the division the
  850  information and data they require, including, but not limited
  851  to, reports on educational contacts.
  852         c. The cost-effectiveness and levels of the educational
  853  services provided.
  854         d. Ability to provide educational services via different
  855  media, including, but not limited to, the Internet, personal
  856  contact, seminars, brochures, and newsletters.
  857         e. Any other factor deemed necessary by the state board.
  858         3. The establishment of the criteria shall be solely within
  859  the discretion of the state board.
  860         (d) The state board shall develop the form and content of
  861  any contracts to be offered under the investment plan. In
  862  developing the contracts, the board shall consider:
  863         1. The nature and extent of the rights and benefits to be
  864  afforded in relation to the contributions required under the
  865  plan.
  866         2. The suitability of the rights and benefits provided and
  867  the interests of employers in the recruitment and retention of
  868  eligible employees.
  869         (e)1. The state board may contract for professional
  870  services, including legal, consulting, accounting, and actuarial
  871  services, deemed necessary to implement and administer the
  872  investment plan. The state board may enter into a contract with
  873  one or more vendors to provide low-cost investment advice to
  874  members, supplemental to education provided by the third-party
  875  administrator. All fees under any such contract shall be paid by
  876  those members who choose to use the services of the vendor.
  877         2. The department may contract for professional services,
  878  including legal, consulting, accounting, and actuarial services,
  879  deemed necessary to implement and administer the investment plan
  880  in coordination with the pension plan. The department, in
  881  coordination with the state board, may enter into a contract
  882  with the third-party administrator in order to coordinate
  883  services common to the various programs within the Florida
  884  Retirement System.
  885         (f) The third-party administrator may not receive direct or
  886  indirect compensation from an approved provider, except as
  887  specifically provided for in the contract with the state board.
  888         (g) The state board shall receive and resolve member
  889  complaints against the program, the third-party administrator,
  890  or any program vendor or provider; shall resolve any conflict
  891  between the third-party administrator and an approved provider
  892  if such conflict threatens the implementation or administration
  893  of the program or the quality of services to employees; and may
  894  resolve any other conflicts. The third-party administrator shall
  895  retain all member records for at least 5 years for use in
  896  resolving any member conflicts. The state board, the third-party
  897  administrator, or a provider is not required to produce
  898  documentation or an audio recording to justify action taken with
  899  regard to a member if the action occurred 5 or more years before
  900  the complaint is submitted to the state board. It is presumed
  901  that all action taken 5 or more years before the complaint is
  902  submitted was taken at the request of the member and with the
  903  member’s full knowledge and consent. To overcome this
  904  presumption, the member must present documentary evidence or an
  905  audio recording demonstrating otherwise.
  906         (9) INVESTMENT OPTIONS OR PRODUCTS; PERFORMANCE REVIEW.—
  907         (a) The state board shall develop policy and procedures for
  908  selecting, evaluating, and monitoring the performance of
  909  approved providers and investment products under the investment
  910  plan. In accordance with such policy and procedures, the state
  911  board shall designate and contract for a number of investment
  912  products as determined by the board. The board shall also select
  913  one or more bundled providers, each of which may offer multiple
  914  investment options and related services, if such approach is
  915  determined by the board to provide value to the members
  916  otherwise not available through individual investment products.
  917  Each approved bundled provider may offer investment options that
  918  provide members with the opportunity to invest in each of the
  919  following asset classes, to be composed of individual options
  920  that represent a single asset class or a combination thereof:
  921  money markets, United States fixed income, United States
  922  equities, and foreign stock. The state board shall review and
  923  manage all educational materials, contract terms, fee schedules,
  924  and other aspects of the approved provider relationships to
  925  ensure that no provider is unduly favored or penalized by virtue
  926  of its status within the investment plan. Additionally, the
  927  state board, consistent with its fiduciary responsibilities,
  928  shall develop one or more investment products to be offered in
  929  the investment plan.
  930         (h) A self-directed brokerage account shall be offered as a
  931  service to investment plan members.
  932         1. Notwithstanding any other provision of this section, the
  933  state board shall select a provider to offer investment plan
  934  members additional investment alternatives by providing a self
  935  directed brokerage account.
  936         2. The state board shall contract with a provider to offer
  937  a self-directed brokerage account. In selecting the provider,
  938  the state board shall consider the following:
  939         a. Financial strength and stability as evidenced by the
  940  highest ratings assigned by nationally recognized rating
  941  services when comparing proposed providers that are so rated.
  942         b. Reasonableness of fees compared to other providers
  943  taking into consideration the quantity and quality of services
  944  being offered.
  945         c. Compliance with the Internal Revenue Code and all
  946  applicable federal and state securities laws.
  947         d. Available methods for members to interact with the
  948  provider and the means by which members may access account
  949  information, direct investment of funds, transfer funds, and
  950  receive funds prospectuses and related investment materials as
  951  required by state and federal regulations.
  952         e. The ability to provide prompt, efficient, and accurate
  953  responses to member directions, as well as providing
  954  confirmations and quarterly account statements in a timely
  955  fashion.
  956         f. The process by which assets are invested, as well as any
  957  waiting periods when monies are transferred.
  958         g. Organizational factors, including, but not limited to,
  959  financial solvency, organizational depth, and experience in
  960  providing self-directed brokerage account services to public
  961  defined contribution plans.
  962         3. The provider of the self-directed brokerage account
  963  shall:
  964         a. Make the self-directed brokerage account available under
  965  the most beneficial terms available to any customer.
  966         b. Agree not to sell or distribute member lists generated
  967  through services rendered to the investment plan.
  968         c. Not be a bundled provider.
  969         d. Provide for an education component approved by the state
  970  board that is available in multimedia formats and that provides
  971  impartial and balanced information about investment options and
  972  fees associated with participation in the self-directed
  973  brokerage account.
  974         4. The provider, as well as any of its related entities,
  975  may not offer any proprietary products as investment
  976  alternatives in the self-directed brokerage account.
  977         5. The state board shall monitor the selected provider to
  978  ensure continued compliance with established selection criteria,
  979  board policy and procedures, state and federal regulations, and
  980  any contractual provisions.
  981         6. The provider shall ensure that a member opening a self
  982  directed brokerage account is provided a quarterly statement
  983  that details member investments in the self-directed brokerage
  984  account. The statement shall be in lieu of, and satisfy the
  985  requirements of, subsection (11) with respect to the member
  986  investments in the self-directed brokerage account. The provider
  987  shall include in the statement the following details:
  988         a. Account investment options.
  989         b. The market value of the account at the close of the
  990  current quarter and the previous quarter.
  991         c. Account gains and losses.
  992         d. Transfers into and out of the account.
  993         e. Any fees, charges, penalties, and deductions that apply
  994  to the account.
  995         7. The self-directed brokerage account may include the
  996  following securities as investment alternatives:
  997         a. Stocks listed on a Securities and Exchange Commission
  998  regulated national exchange.
  999         b. Exchange traded funds.
 1000         c. Mutual funds.
 1001         8. The self-directed brokerage account may not include the
 1002  following as investment alternatives:
 1003         a. Illiquid investments.
 1004         b. Over-the-Counter Bulletin Board securities.
 1005         c. Pink Sheet securities.
 1006         d. Leveraged exchange traded funds.
 1007         e. Direct ownership of foreign securities.
 1008         f. Derivatives, including, but not limited to, futures and
 1009  options contracts on securities, market indexes, and
 1010  commodities.
 1011         g. Buying or trading on margin.
 1012         h. Investment plan products.
 1013         i. Any investment that would jeopardize the investment
 1014  plan’s tax qualified status.
 1015         9.  A member may participate in the self-directed brokerage
 1016  account if the member:
 1017         a. Maintains a minimum balance of $5,000 in the products
 1018  offered under the investment plan.
 1019         b. Makes a minimum initial transfer of funds into the self
 1020  directed brokerage account of $1,000.
 1021         c. Makes subsequent transfers of funds into the self
 1022  directed brokerage account in amounts of $1,000 or greater.
 1023         d. Pays all trading fees, commissions, administrative fees,
 1024  and any other expenses associated with participating in the
 1025  self-directed brokerage account from the funds in the self
 1026  directed brokerage account.
 1027         e. Does not violate any trading restrictions established by
 1028  the provider, the investment plan, or state or federal law.
 1029         10. Employer and employee contributions shall be initially
 1030  deposited into investment plan products and may be transferred
 1031  to the self-directed brokerage account.
 1032         11. Distributions are not permissible directly from assets
 1033  in the self-directed brokerage account. Assets must first be
 1034  transferred to investment plan products. A distribution may be
 1035  requested after the transfer is completed and all investment
 1036  plan distribution requirements are met.
 1037         12. The state board must notify members that:
 1038         a. The state board is not responsible for managing the
 1039  self-directed brokerage account beyond administrative
 1040  requirements as established between the state board and the
 1041  provider of the self-directed brokerage account.
 1042         b. Investment alternatives available through the self
 1043  directed brokerage account have not been subjected to any
 1044  selection process, are not monitored by the state board, require
 1045  investment expertise to prudently buy, manage, or dispose of,
 1046  and have a risk of substantial loss.
 1047         c. The member is responsible for all administrative,
 1048  investment, and trading fees associated with participating in
 1049  the self-directed brokerage account.
 1050         (10) EDUCATION COMPONENT.—
 1051         (a) The state board, in coordination with the department,
 1052  shall provide for an education component for eligible employees
 1053  system members in a manner consistent with the provisions of
 1054  this subsection section. The education component must be
 1055  available to eligible employees at least 90 days prior to the
 1056  beginning date of the election period for the employees of the
 1057  respective types of employers.
 1058         (b) The education component must provide system members
 1059  with impartial and balanced information about plan choices for
 1060  members initially enrolled before January 1, 2015. The education
 1061  component must involve multimedia formats. Program comparisons
 1062  must, to the greatest extent possible, be based upon the
 1063  retirement income that different retirement programs may provide
 1064  to the member. The state board shall monitor the performance of
 1065  the contract to ensure that the program is conducted in
 1066  accordance with the contract, applicable law, and the rules of
 1067  the state board.
 1068         (c) The state board, in coordination with the department,
 1069  shall provide for an initial and ongoing transfer education
 1070  component to provide system members initially enrolled before
 1071  January 1, 2015, with information necessary to make informed
 1072  plan choice decisions. The transfer education component must
 1073  include, but is not limited to, information on:
 1074         1. The amount of money available to a member to transfer to
 1075  the defined contribution program.
 1076         2. The features of and differences between the pension plan
 1077  and the defined contribution program, both generally and
 1078  specifically, as those differences may affect the member.
 1079         3. The expected benefit available if the member were to
 1080  retire under each of the retirement programs, based on
 1081  appropriate alternative sets of assumptions.
 1082         4. The rate of return from investments in the defined
 1083  contribution program and the period of time over which such rate
 1084  of return must be achieved to equal or exceed the expected
 1085  monthly benefit payable to the member under the pension plan.
 1086         5. The historical rates of return for the investment
 1087  alternatives available in the defined contribution programs.
 1088         6. The benefits and historical rates of return on
 1089  investments available in a typical deferred compensation plan or
 1090  a typical plan under s. 403(b) of the Internal Revenue Code for
 1091  which the employee may be eligible.
 1092         7. The program choices available to employees of the State
 1093  University System and the comparative benefits of each available
 1094  program, if applicable.
 1095         8. Payout options available in each of the retirement
 1096  programs.
 1097         (h) Pursuant to subsection (8), all Florida Retirement
 1098  System employers have an obligation to regularly communicate the
 1099  existence of the two Florida Retirement System plans and the
 1100  plan choice in the natural course of administering their
 1101  personnel functions, using the educational materials supplied by
 1102  the state board and the Department of Management Services.
 1103         (15) STATEMENT OF FIDUCIARY STANDARDS AND
 1104  RESPONSIBILITIES.—
 1105         (a) Investment of investment defined contribution plan
 1106  assets shall be made for the sole interest and exclusive purpose
 1107  of providing benefits to members and beneficiaries and defraying
 1108  reasonable expenses of administering the plan. The program’s
 1109  assets shall be invested on behalf of the program members with
 1110  the care, skill, and diligence that a prudent person acting in a
 1111  like manner would undertake. The performance of the investment
 1112  duties set forth in this paragraph shall comply with the
 1113  fiduciary standards set forth in the Employee Retirement Income
 1114  Security Act of 1974 at 29 U.S.C. s. 1104(a)(1)(A)-(C). In case
 1115  of conflict with other provisions of law authorizing
 1116  investments, the investment and fiduciary standards set forth in
 1117  this subsection shall prevail.
 1118         (c) Subparagraph (8)(b)2. and paragraph (b) incorporate the
 1119  federal law concept of participant control, established by
 1120  regulations of the United States Department of Labor under s.
 1121  404(c) of the Employee Retirement Income Security Act of 1974
 1122  (ERISA). The purpose of this paragraph is to assist employers
 1123  and the state board in maintaining compliance with s. 404(c),
 1124  while avoiding unnecessary costs and eroding member benefits
 1125  under the investment plan. Pursuant to 29 C.F.R. s. 2550.404a
 1126  5(d)(4) 2550.404c-1(b)(2)(i)(B)(1)(viii), the state board or its
 1127  designated agents shall deliver to members of the investment
 1128  plan a copy of the prospectus most recently provided to the
 1129  plan, and, pursuant to 29 C.F.R. s. 2550.404c
 1130  1(b)(2)(i)(B)(2)(ii), shall provide such members an opportunity
 1131  to obtain this information, except that:
 1132         1. The requirement to deliver a prospectus shall be
 1133  satisfied by delivery of a fund profile or summary profile that
 1134  contains the information that would be included in a summary
 1135  prospectus as described by Rule 498 under the Securities Act of
 1136  1933, 17 C.F.R. s. 230.498. If the transaction fees, expense
 1137  information or other information provided by a mutual fund in
 1138  the prospectus does not reflect terms negotiated by the state
 1139  board or its designated agents, the requirement is satisfied by
 1140  delivery of a separate document described by Rule 498
 1141  substituting accurate information; and
 1142         2. Delivery shall be effected if delivery is through
 1143  electronic means and the following standards are satisfied:
 1144         a. Electronically-delivered documents are prepared and
 1145  provided consistent with style, format, and content requirements
 1146  applicable to printed documents;
 1147         b. Each member is provided timely and adequate notice of
 1148  the documents that are to be delivered, and their significance,
 1149  and of the member’s right to obtain a paper copy of such
 1150  documents free of charge;
 1151         c. Members have adequate access to the electronic
 1152  documents, at locations such as their worksites or public
 1153  facilities, and have the ability to convert the documents to
 1154  paper free of charge by the state board, and the board or its
 1155  designated agents take appropriate and reasonable measures to
 1156  ensure that the system for furnishing electronic documents
 1157  results in actual receipt. Members have provided consent to
 1158  receive information in electronic format, which consent may be
 1159  revoked; and
 1160         d. The state board, or its designated agent, actually
 1161  provides paper copies of the documents free of charge, upon
 1162  request.
 1163         3. The state board is not required to deliver a prospectus
 1164  or other information for the underlying investments available
 1165  through the self-directed brokerage account authorized by
 1166  paragraph (9)(h).
 1167         Section 6. Subsection (3) of section 121.591, Florida
 1168  Statutes, is amended to read:
 1169         121.591 Payment of benefits.—Benefits may not be paid under
 1170  the Florida Retirement System Investment Plan unless the member
 1171  has terminated employment as provided in s. 121.021(39)(a) or is
 1172  deceased and a proper application has been filed as prescribed
 1173  by the state board or the department. Benefits, including
 1174  employee contributions, are not payable under the investment
 1175  plan for employee hardships, unforeseeable emergencies, loans,
 1176  medical expenses, educational expenses, purchase of a principal
 1177  residence, payments necessary to prevent eviction or foreclosure
 1178  on an employee’s principal residence, or any other reason except
 1179  a requested distribution for retirement, a mandatory de minimis
 1180  distribution authorized by the administrator, or a required
 1181  minimum distribution provided pursuant to the Internal Revenue
 1182  Code. The state board or department, as appropriate, may cancel
 1183  an application for retirement benefits if the member or
 1184  beneficiary fails to timely provide the information and
 1185  documents required by this chapter and the rules of the state
 1186  board and department. In accordance with their respective
 1187  responsibilities, the state board and the department shall adopt
 1188  rules establishing procedures for application for retirement
 1189  benefits and for the cancellation of such application if the
 1190  required information or documents are not received. The state
 1191  board and the department, as appropriate, are authorized to cash
 1192  out a de minimis account of a member who has been terminated
 1193  from Florida Retirement System covered employment for a minimum
 1194  of 6 calendar months. A de minimis account is an account
 1195  containing employer and employee contributions and accumulated
 1196  earnings of not more than $5,000 made under the provisions of
 1197  this chapter. Such cash-out must be a complete lump-sum
 1198  liquidation of the account balance, subject to the provisions of
 1199  the Internal Revenue Code, or a lump-sum direct rollover
 1200  distribution paid directly to the custodian of an eligible
 1201  retirement plan, as defined by the Internal Revenue Code, on
 1202  behalf of the member. Any nonvested accumulations and associated
 1203  service credit, including amounts transferred to the suspense
 1204  account of the Florida Retirement System Investment Plan Trust
 1205  Fund authorized under s. 121.4501(6), shall be forfeited upon
 1206  payment of any vested benefit to a member or beneficiary, except
 1207  for de minimis distributions or minimum required distributions
 1208  as provided under this section. If any financial instrument
 1209  issued for the payment of retirement benefits under this section
 1210  is not presented for payment within 180 days after the last day
 1211  of the month in which it was originally issued, the third-party
 1212  administrator or other duly authorized agent of the state board
 1213  shall cancel the instrument and credit the amount of the
 1214  instrument to the suspense account of the Florida Retirement
 1215  System Investment Plan Trust Fund authorized under s.
 1216  121.4501(6). Any amounts transferred to the suspense account are
 1217  payable upon a proper application, not to include earnings
 1218  thereon, as provided in this section, within 10 years after the
 1219  last day of the month in which the instrument was originally
 1220  issued, after which time such amounts and any earnings
 1221  attributable to employer contributions shall be forfeited. Any
 1222  forfeited amounts are assets of the trust fund and are not
 1223  subject to chapter 717.
 1224         (3) DEATH BENEFITS.—Under the Florida Retirement System
 1225  Investment Plan:
 1226         (a)1. Survivor benefits are payable in accordance with the
 1227  following terms and conditions:
 1228         a.1. To the extent vested, benefits are payable only to a
 1229  member’s beneficiary or beneficiaries as designated by the
 1230  member as provided in s. 121.4501(20).
 1231         b.2. Benefits shall be paid by the third-party
 1232  administrator or designated approved providers in accordance
 1233  with the law, the contracts, and any applicable state board rule
 1234  or policy.
 1235         c.3. To receive benefits, the member must be deceased.
 1236         2.(b) In the event of a member’s death, all vested
 1237  accumulations as described in s. 121.4501(6), less withholding
 1238  taxes remitted to the Internal Revenue Service, shall be
 1239  distributed, as provided in subparagraph 3. paragraph (c) or as
 1240  described in s. 121.4501(20), as if the member retired on the
 1241  date of death. No other death benefits are available for
 1242  survivors of members, except for benefits, or coverage for
 1243  benefits, as are otherwise provided by law or separately
 1244  provided by the employer, at the employer’s discretion.
 1245         3.(c) Upon receipt by the third-party administrator of a
 1246  properly executed application for distribution of benefits, the
 1247  total accumulated benefit is payable by the third-party
 1248  administrator to the member’s surviving beneficiary or
 1249  beneficiaries, as:
 1250         a.1. A lump-sum distribution payable to the beneficiary or
 1251  beneficiaries, or to the deceased member’s estate;
 1252         b.2. An eligible rollover distribution, if permitted, on
 1253  behalf of the surviving spouse of a deceased member, whereby all
 1254  accrued benefits, plus interest and investment earnings, are
 1255  paid from the deceased member’s account directly to the
 1256  custodian of an eligible retirement plan, as described in s.
 1257  402(c)(8)(B) of the Internal Revenue Code, on behalf of the
 1258  surviving spouse; or
 1259         c.3. A partial lump-sum payment whereby a portion of the
 1260  accrued benefit is paid to the deceased member’s surviving
 1261  spouse or other designated beneficiaries, less withholding taxes
 1262  remitted to the Internal Revenue Service, and the remaining
 1263  amount is transferred directly to the custodian of an eligible
 1264  retirement plan, if permitted, as described in s. 402(c)(8)(B)
 1265  of the Internal Revenue Code, on behalf of the surviving spouse.
 1266  The proportions must be specified by the member or the surviving
 1267  beneficiary.
 1268         (b) Each employer participating in the Florida Retirement
 1269  System shall purchase a life insurance policy from a state term
 1270  contract for each member of the Special Risk Class of the
 1271  investment plan who is initially enrolled in the Florida
 1272  Retirement System on or after January 1, 2015.
 1273         1. The Department of Management Services shall procure a
 1274  life insurance product on a state term contract with the
 1275  following attributes:
 1276         a. The benefit must be limited to Special Risk Class
 1277  members who are killed in the line of duty.
 1278         b. The benefit must be equal to 10 times the employee’s
 1279  annual salary at the time of death or $500,000, whichever is
 1280  greater.
 1281         c. The benefit must provide for monthly benefit payments,
 1282  including interest, to be paid to the designated beneficiary or
 1283  beneficiaries over a 20-year period.
 1284         d. The product must be guaranteed issue.
 1285         e. The product must provide level premium rates for the
 1286  term of the policy.
 1287         f. Any administrative fees shall be the responsibility of
 1288  the employer.
 1289         2. Survivor benefits provided by the life insurance policy
 1290  are payable in addition to the survivor benefit provided under
 1291  paragraph (a).
 1292  
 1293  This subsection paragraph does not abrogate other applicable
 1294  provisions of state or federal law providing for payment of
 1295  death benefits.
 1296         Section 7. Section 238.072, Florida Statutes, is amended to
 1297  read:
 1298         238.072 Special service provisions for extension
 1299  personnel.—All state and county cooperative extension personnel
 1300  holding appointments by the United States Department of
 1301  Agriculture for extension work in agriculture and home economics
 1302  in this state who are joint representatives of the University of
 1303  Florida and the United States Department of Agriculture, as
 1304  provided in s. 121.051(8) 121.051(7), who are members of the
 1305  Teachers’ Retirement System, chapter 238, and who are prohibited
 1306  from transferring to and participating in the Florida Retirement
 1307  System, chapter 121, may retire with full benefits upon
 1308  completion of 30 years of creditable service and shall be
 1309  considered to have attained normal retirement age under this
 1310  chapter, any law to the contrary notwithstanding. In order to
 1311  comply with the provisions of s. 14, Art. X of the State
 1312  Constitution, any liability accruing to the Florida Retirement
 1313  System Trust Fund as a result of the provisions of this section
 1314  shall be paid on an annual basis from the General Revenue Fund.
 1315         Section 8. Subsection (11) of section 413.051, Florida
 1316  Statutes, is amended to read:
 1317         413.051 Eligible blind persons; operation of vending
 1318  stands.—
 1319         (11) Effective July 1, 1996, blind licensees who remain
 1320  members of the Florida Retirement System pursuant to s.
 1321  121.051(7)(b)1. 121.051(6)(b)1. shall pay any unappropriated
 1322  retirement costs from their net profits or from program income.
 1323  Within 30 days after the effective date of this act, each blind
 1324  licensee who is eligible to maintain membership in the Florida
 1325  Retirement System under s. 121.051(7)(b)1. 121.051(6)(b)1., but
 1326  who elects to withdraw from the system as provided in s.
 1327  121.051(7)(b)3. 121.051(6)(b)3., must, on or before July 31,
 1328  1996, notify the Division of Blind Services and the Department
 1329  of Management Services in writing of his or her election to
 1330  withdraw. Failure to timely notify the divisions shall be deemed
 1331  a decision to remain a compulsory member of the Florida
 1332  Retirement System. However, if, at any time after July 1, 1996,
 1333  sufficient funds are not paid by a blind licensee to cover the
 1334  required contribution to the Florida Retirement System, that
 1335  blind licensee shall become ineligible to participate in the
 1336  Florida Retirement System on the last day of the first month for
 1337  which no contribution is made or the amount contributed is
 1338  insufficient to cover the required contribution. For any blind
 1339  licensee who becomes ineligible to participate in the Florida
 1340  Retirement System as described in this subsection, no creditable
 1341  service shall be earned under the Florida Retirement System for
 1342  any period following the month that retirement contributions
 1343  ceased to be reported. However, any such person may participate
 1344  in the Florida Retirement System in the future if employed by a
 1345  participating employer in a covered position.
 1346         Section 9. Pension Reform Study Committee.—
 1347         (1) The Pension Reform Study Committee is created for the
 1348  purpose of reviewing, analyzing, and evaluating the
 1349  sustainability of the Florida Retirement System and to recommend
 1350  reforms to maintain and enhance the long-term viability and
 1351  sustainability of the system.
 1352         (2) The study committee shall be composed of six members:
 1353         (a) Three members of the Senate appointed by the President
 1354  of the Senate.
 1355         (b) Three members of the House of Representatives appointed
 1356  by the Speaker of the House of Representatives.
 1357         (3) Members of the study committee must be appointed by
 1358  July 31, 2013. By August 31, 2013, the study committee shall
 1359  meet to establish procedures for the conduct of its business and
 1360  to elect a chair and vice chair. The study committee shall meet
 1361  at the call of the chair. A majority of the members constitutes
 1362  a quorum, and a quorum is necessary for the purpose of voting on
 1363  any action or recommendation of the study committee. All
 1364  meetings shall be held in Tallahassee, unless otherwise decided
 1365  by the study committee; however, no more than two such meetings
 1366  may be held in other locations for the purpose of taking public
 1367  testimony.
 1368         (4) The President of the Senate and the Speaker of the
 1369  House of Representatives shall designate legislative staff
 1370  knowledgeable in public pensions and the Florida Retirement
 1371  System to assist the study committee and provide all necessary
 1372  data collection, analysis, research, and support services.
 1373         (5) Study committee members shall serve without
 1374  compensation but are entitled to be reimbursed for per diem and
 1375  travel expenses as provided under s. 112.061, Florida Statutes.
 1376         (6) In reviewing, analyzing, and evaluating the
 1377  sustainability of the Florida Retirement System, and
 1378  recommending reforms to maintain and enhance the long-term
 1379  viability and sustainability of the system, the study committee
 1380  shall, at a minimum, consider the funding structure of the
 1381  system, system funding levels, benefits provided, and the
 1382  benefits of reforming the system structure, which must include
 1383  the benefits of providing a hybrid or cash-balance option in
 1384  lieu of or in addition to the current plan choices.
 1385         (7) The study committee shall submit a final report of its
 1386  recommendations to the President of the Senate and the Speaker
 1387  of the House of Representatives by January 1, 2014.
 1388         (8) The study committee is terminated June 30, 2014.
 1389         Section 10. (1) Effective January 1, 2015, in order to fund
 1390  the benefit changes provided in this act, the required employer
 1391  contribution rates for the unfunded actuarial liability of the
 1392  Florida Retirement System established in section 121.71(5),
 1393  Florida Statutes, shall be adjusted as follows:
 1394         (a) Elected Officers’ Class.—Legislators, the Governor, the
 1395  Lieutenant Governor, Cabinet Officers, State Attorneys, and
 1396  Public Defenders shall be increased by 0.02 percentage points.
 1397         (b) Elected Officers’ Class.—County Elected Officers shall
 1398  be increased by 0.02 percentage points.
 1399         (c) Senior Management Service Class.—The Senior Management
 1400  Service Class shall be increased by 0.01 percentage points.
 1401         (2) The adjustments provided in subsection (1) shall be in
 1402  addition to all other changes to such contribution rates which
 1403  may be enacted into law to take effect on July 1, 2014, and July
 1404  1, 2015. The Division of Law Revision and Information is
 1405  requested to adjust accordingly the contribution rates provided
 1406  in section 121.71, Florida Statutes.
 1407         Section 11. Except for the amendments made by this act to
 1408  ss. 121.051, 121.052, and 121.055, Florida Statutes, which apply
 1409  only to members of the State Community College System Optional
 1410  Retirement Program, Elected Officers’ Class, and the Senior
 1411  Management Service Class, respectively, this act does not modify
 1412  or limit any retirement benefit or plan choice currently
 1413  available to members who first enrolled in the Florida
 1414  Retirement System before January 1, 2015.
 1415         Section 12. The Legislature finds that a proper and
 1416  legitimate state purpose is served when employees and retirees
 1417  of the state and its political subdivisions, and the dependents,
 1418  survivors, and beneficiaries of such employees and retirees, are
 1419  extended the basic protections afforded by governmental
 1420  retirement systems. These persons must be provided benefits that
 1421  are fair and adequate and that are managed, administered, and
 1422  funded in an actuarially sound manner, as required by s. 14,
 1423  Article X of the State Constitution and part VII of chapter 112,
 1424  Florida Statutes. Therefore, the Legislature determines and
 1425  declares that this act fulfills an important state interest.
 1426         Section 13. (1) Effective upon this act becoming a law, the
 1427  State Board of Administration and the Department of Management
 1428  Services shall request, as soon as practicable, a determination
 1429  letter from the United States Internal Revenue Service. If the
 1430  Internal Revenue Service refuses to act upon a request for a
 1431  determination letter, then a legal opinion from a qualified tax
 1432  attorney or firm may be substituted for such letter.
 1433         (2) If the board or the department receives notification
 1434  from the United States Internal Revenue Service that this act or
 1435  any portion of this act will cause the Florida Retirement
 1436  System, or a portion thereof, to be disqualified for tax
 1437  purposes under the Internal Revenue Code, then the portion that
 1438  will cause the disqualification does not apply. Upon such
 1439  notice, the state board and the department shall notify the
 1440  presiding officers of the Legislature.
 1441         Section 14. Except as otherwise expressly provided in this
 1442  act and except for this section, which shall take effect upon
 1443  this act becoming a law, this act shall take effect July 1,
 1444  2013.
 1445  
 1446  ================= T I T L E  A M E N D M E N T ================
 1447         And the title is amended as follows:
 1448         Delete everything before the enacting clause
 1449  and insert:
 1450                        A bill to be entitled                      
 1451         An act relating to the Florida Retirement System;
 1452         amending s. 121.051, F.S.; limiting the ability of
 1453         members of an optional retirement program to transfer
 1454         to the Florida Retirement System; providing for
 1455         compulsory membership in the Florida Retirement System
 1456         Investment Plan for employees initially enrolled after
 1457         a specified date; authorizing certain employees to
 1458         participate in the investment plan; amending s.
 1459         121.052, F.S.; prohibiting members of the Elected
 1460         Officers’ Class from joining the Senior Management
 1461         Service Class after a specified date; amending s.
 1462         121.055, F.S.; closing the Senior Management Service
 1463         Optional Annuity Program to new members after a
 1464         specified date; prohibiting an elected official
 1465         eligible for membership in the Elected Officers’ Class
 1466         from enrolling in the Senior Management Service Class
 1467         or in the Senior Management Service Optional Annuity
 1468         Program; closing the Senior Management Service
 1469         Optional Annuity Program to new members after a
 1470         specified date; amending s. 121.35, F.S.; providing
 1471         that certain participants in the optional retirement
 1472         program for the State University System have a choice
 1473         between the optional retirement program and the
 1474         Florida Retirement System Investment Plan; providing
 1475         for compulsory membership in the investment plan for
 1476         certain employees; amending s. 121.4501, F.S.;
 1477         requiring certain employees initially enrolled in the
 1478         Florida Retirement System on or after a specified date
 1479         to be compulsory members of the investment plan;
 1480         providing for the transfer of certain contributions;
 1481         revising a provision relating to acknowledgment of an
 1482         employee’s election to participate in the investment
 1483         plan; requiring the State Board of Administration to
 1484         develop investment products to be offered in the
 1485         investment plan; requiring the State Board of
 1486         Administration to provide a self-directed brokerage
 1487         account as an investment option; requiring the state
 1488         board to contract with a provider to provide a self
 1489         directed brokerage account investment option;
 1490         providing self-directed brokerage account
 1491         requirements; revising the education component;
 1492         deleting the obligation of system employers to
 1493         communicate the existence of both retirement plans;
 1494         providing the state board and the provider of the
 1495         self-directed brokerage account investment option with
 1496         certain responsibilities; providing that the state
 1497         board is not required to deliver certain information
 1498         regarding the self-directed brokerage account; making
 1499         conforming changes; removing unnecessary language;
 1500         amending s. 121.591, F.S.; providing an additional
 1501         death benefit to specified members of the Special Risk
 1502         Class; amending ss. 238.072 and 413.051, F.S.;
 1503         conforming cross-references; creating a Pension Reform
 1504         Study Committee to evaluate and provide
 1505         recommendations relating to the Florida Retirement
 1506         System; providing for membership; requiring a report
 1507         to the Legislature; providing for termination;
 1508         adjusting the required employer contribution rates for
 1509         the unfunded actuarial liability of the Florida
 1510         Retirement System for select classes; providing a
 1511         directive to the Division of Law Revision and
 1512         Information; providing that the act does not modify or
 1513         limit benefits available to current members except as
 1514         specified; providing that the act fulfills an
 1515         important state interest; requiring the State Board of
 1516         Administration and the Department of Management
 1517         Services to request a determination letter from the
 1518         Internal Revenue Service; providing effective dates.