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