The Florida Senate

¹121.571  Contributions.--Contributions to the Public Employee Optional Retirement Program shall be made as follows:

(1)  CONTRIBUTION RATES GENERALLY.--The contributions established in this section shall fund the Public Employee Optional Retirement Program and shall be paid by each participant's employer to the third-party administrator based on the class membership of the participant. The contributions are stated as a percentage of each participant's gross compensation for the calendar month. A change in a contribution rate is effective the first day of the month for which a full month's employer contribution is made on or after the beginning date of the change. Contribution rates may be modified by general law.

(2)  CONTRIBUTIONS TO PARTICIPANT ACCOUNTS.--Employer and participant contributions to participant accounts shall be accounted for separately. Interest and investment earnings on employer contributions shall accrue on a tax-deferred basis until proceeds are distributed. Pursuant thereto:

(a)  All contributions made on behalf of a participant pursuant to this subsection shall be transferred by the employer to the third-party administrator for deposit in the participant's account.

(b)  Retirement contributions for Regular Class members of the optional retirement plan are as follows:

(c)  Retirement contributions for Special Risk Class members of the optional retirement plan are as follows:

(d)  Retirement contributions for Special Risk Administrative Support Class members of the optional retirement plan are as follows:

(e)  Retirement contributions for Elected Officers' Class members of the optional retirement plan are as follows:

(f)  Retirement contributions for Senior Management Service Class members of the optional retirement plan are as follows:

(3)  CONTRIBUTIONS TO DISABILITY ACCOUNT.--

(a)  All contributions made on behalf of a participant pursuant to this subsection shall be transferred by the employer to the third-party administrator for deposit in the Public Employee Disability Trust Fund administered by the Division of Retirement. Such contributions, less any fees or charges authorized by the Legislature to offset the costs of administering the disability component of the optional retirement program, shall be used to provide disability coverage for participants in the optional retirement program.

(b)  Disability contributions for Regular Class members of the optional retirement plan are as follows:

(c)  Disability contributions for Special Risk Class members of the optional retirement plan are as follows:

(d)  Disability contributions for Special Risk Administrative Support Class members of the optional retirement plan are as follows:

(e)  Disability contributions for Elected Officers' Class members of the optional retirement plan are as follows:

(f)  Disability contributions for Senior Management Service Class members of the optional retirement plan are as follows:

(4)  CONTRIBUTIONS FOR SOCIAL SECURITY COVERAGE AND FOR RETIREE HEALTH INSURANCE SUBSIDY.--Contributions required under this section shall be in addition to employer and member contributions required for social security and the Retiree Health Insurance Subsidy Trust Fund as provided in s. 121.071.

(5)  ADMINISTRATIVE AND EDUCATIONAL CONTRIBUTIONS.--Effective June 1, 2002, the contribution rate for each employer shall be 0.1 percent on behalf of each participant to fund the administrative and educational expenses of the optional program. All contributions made on behalf of a participant pursuant to this subsection shall be transferred to the third-party administrator for deposit in the board's administrative fund.

(6)  DEDUCTIONS.--The board or the third-party administrator may deduct reasonable fees and apply appropriate charges to participant accounts. Payments for third-party administrative or educational expenses shall be made only pursuant to the terms of the approved contracts for such services. In no event shall administrative and educational expenses exceed the portion of employer contributions earmarked for such expenses pursuant to this section, except for reasonable administrative charges assessed against participant accounts of persons for whom no employer contributions are made during the year. Investment management fees shall be deducted from the gross returns earned by each authorized investment product or approved provider, pursuant to the terms of the contract between the provider and the board.

(7)  PAYMENT AND DISTRIBUTION OF CONTRIBUTIONS.--Contributions made pursuant to this section shall be paid by the employer to the third-party administrator by electronic funds transfer no later than the 5th day of the month immediately following the month during which the payroll period ended. The board and the third-party administrator shall ensure that the contributions are distributed to the appropriate trust funds or participant accounts in a timely manner.

History.--s. 3, ch. 2000-169.

¹Note.--

A.  Section 31, ch. 2000-169, provides that "[t]he State Board of Administration shall, as soon as practicable after the effective date of this act, request an expedited opinion from the United States Internal Revenue Service as to the qualified status of the defined contribution program."

B.  Section 32, ch. 2000-169, provides that:

"Except as otherwise provided herein, this act shall take effect July 1, 2000, and the Public Employee Optional Retirement Program created by this act shall be contingent upon:

"1.  The State Board of Administration receiving a favorable determination letter and a favorable private letter ruling from the Internal Revenue Service by May 1, 2002. If the Internal Revenue Service refuses to act upon a request for a private letter ruling, then a favorable legal opinion from a qualified tax attorney or firm may be substituted for such private letter ruling.

"2.  The State Board of Administration having selected and contracted with the third-party administrator.

"3.  The third-party administrator having successfully established data links with the employers participating in the Florida Retirement System.

"4.  The education component of the Public Employee Optional Retirement Program having been available for at least 90 days.

"5.  A diversified portfolio of financial instruments having become available to participants of the Public Employee Optional Retirement Program."