HOUSE AMENDMENT
    hbd06                                       Bill No. CS/HB 347
    Amendment No. ___ (for drafter's use only)
                            CHAMBER ACTION
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11  Representative(s) Fasano offered the following:
12  
13         Amendment (with title amendment) 
14         On page 1, line 13,
15  
16  insert:  
17         Section 1.  Paragraphs (b) through (j) of subsection
18  (2) of section 121.4501, Florida Statutes, are redesignated as
19  paragraphs (d) through (l), respectively, new paragraphs (b)
20  and (c) are added to said subsection, and subsections (7) and
21  (16) of said section are amended, to read:
22         121.4501  Public Employee Optional Retirement
23  Program.--
24         (2)  DEFINITIONS.--As used in this section, the term:
25         (b)  "Average monthly compensation" means one-twelfth
26  of average final compensation as defined in s. 121.021(24).
27         (c)  "Covered employment" means employment in a
28  regularly established position as defined in s. 121.021(52).
29         (7)  BENEFITS.--Under the Public Employee Optional
30  Retirement Program:
31         (a)  Benefits shall be provided in accordance with s.
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    File original & 9 copies    04/16/01                          
    hbd0005                     08:38 am         00347-0045-680221

HOUSE AMENDMENT hbd06 Bill No. CS/HB 347 Amendment No. ___ (for drafter's use only) 1 401(a) of the Internal Revenue Code. 2 (b) Benefits shall accrue in individual accounts that 3 are participant-directed, portable, and funded by employer 4 contributions and earnings thereon. 5 (c) Benefits shall be payable in accordance with s. 6 121.591. the following terms and conditions: 7 1. To the extent vested, benefits shall be payable 8 only to a participant, or to his or her beneficiaries as 9 designated by the participant. 10 2. Benefits shall be paid by the third-party 11 administrator or designated approved providers in accordance 12 with the law, the contracts, and any applicable board rule or 13 policy. 14 3. To begin receiving the benefits, the participant 15 must be terminated from all employment with all Florida 16 Retirement System employers, as provided in s. 121.021(39), or 17 the participant must be deceased. If a participant elects to 18 receive his or her benefits upon termination of employment, 19 the participant must submit a written application to the 20 third-party administrator indicating his or her preferred 21 distribution date and selecting an authorized method of 22 distribution as provided in paragraph (d). The participant may 23 defer receipt of benefits until he or she chooses to make such 24 application, subject to federal requirements. 25 4. In the event of a participant's death, moneys 26 accumulated by, or on behalf of, the participant, less 27 withholding taxes remitted to the Internal Revenue Service, 28 shall be distributed to the participant's designated 29 beneficiary or beneficiaries, or to the participant's estate, 30 as if the participant retired on the date of death, as 31 provided in paragraph (e). No other death benefits shall be 2 File original & 9 copies 04/16/01 hbd0005 08:38 am 00347-0045-680221
HOUSE AMENDMENT hbd06 Bill No. CS/HB 347 Amendment No. ___ (for drafter's use only) 1 available for survivors of participants under the Public 2 Employee Optional Retirement Program, except for such 3 benefits, or coverage for such benefits, as are separately 4 afforded by the employer, at the employer's discretion. 5 (d) Upon receipt by the third-party administrator of a 6 properly executed application for distribution of benefits, 7 the total accumulated benefit shall be payable to the 8 participant, as: 9 1. A lump-sum distribution to the participant; 10 2. A lump-sum direct rollover distribution whereby all 11 accrued benefits, plus interest and investment earnings, are 12 paid from the participant's account directly to the custodian 13 of an eligible retirement plan, as defined in s. 402(c)(8)(B) 14 of the Internal Revenue Code, on behalf of the participant; or 15 3. Periodic distributions, as authorized by the state 16 board. 17 (e) Survivor benefits shall be payable as: 18 1. A lump-sum distribution payable to the 19 beneficiaries, or to the deceased participant's estate; 20 2. An eligible rollover distribution on behalf of the 21 surviving spouse of a deceased participant, whereby all 22 accrued benefits, plus interest and investment earnings, are 23 paid from the deceased participant's account directly to the 24 custodian of an individual retirement account or an individual 25 retirement annuity, as described in s. 402(c)(9) of the 26 Internal Revenue Code, on behalf of the surviving spouse; or 27 3. A partial lump-sum payment whereby a portion of the 28 accrued benefit is paid to the deceased participant's 29 surviving spouse or other designated beneficiaries, less 30 withholding taxes remitted to the Internal Revenue Service, 31 and the remaining amount is transferred directly to the 3 File original & 9 copies 04/16/01 hbd0005 08:38 am 00347-0045-680221
HOUSE AMENDMENT hbd06 Bill No. CS/HB 347 Amendment No. ___ (for drafter's use only) 1 custodian of an individual retirement account or an individual 2 retirement annuity, as described in s. 402(c)(9) of the 3 Internal Revenue Code, on behalf of the surviving spouse. The 4 proportions must be specified by the participant or the 5 surviving beneficiary. 6 7 This paragraph does not abrogate other applicable provisions 8 of state or federal law providing for payment of death 9 benefits. 10 (f) The benefits payable to any person under the 11 Public Employee Optional Retirement Program, and any 12 contributions accumulated under such program, are not subject 13 to assignment, execution, attachment, or any legal process, 14 except for qualified domestic relations orders by a court of 15 competent jurisdiction, income deduction orders as provided in 16 s. 61.1301, and federal income tax levies. 17 (16) DISABILITY BENEFITS.--For any participant of the 18 optional retirement program who becomes totally and 19 permanently disabled, benefits shall be paid in accordance 20 with s. 121.591 as defined in s. 121.091(4)(b), the 21 participant shall be entitled to receive those moneys that 22 have accrued in his or her participant account. It is the 23 intent of the Legislature to design a disability benefit for 24 participants of the optional program similar to those 25 disability benefits afforded defined benefit program members. 26 The department is directed to study the potential options of 27 such coverage, including self-insurance and commercial 28 coverage, the alternative methods of administering such 29 benefits, and the fiscal impacts on the employees and 30 employers, and to make recommendations to the Legislature by 31 January 15, 2001. 4 File original & 9 copies 04/16/01 hbd0005 08:38 am 00347-0045-680221
HOUSE AMENDMENT hbd06 Bill No. CS/HB 347 Amendment No. ___ (for drafter's use only) 1 Section 2. Subsection (3) of section 121.571, Florida 2 Statutes, is amended to read: 3 121.571 Contributions.--Contributions to the Public 4 Employee Optional Retirement Program shall be made as follows: 5 (3) CONTRIBUTIONS TO DISABILITY ACCOUNT.-- 6 (a) All contributions made on behalf of a participant 7 pursuant to this subsection shall be transferred by the 8 employer to the third-party administrator for deposit in the 9 Public Employee Disability Trust Fund administered by the 10 Division of Retirement. Such contributions, less any fees or 11 charges authorized by the Legislature to offset the costs of 12 administering the disability component of the optional 13 retirement program, shall be used to provide disability 14 coverage for participants in the optional retirement program. 15 (b) Disability contributions for Regular Class members 16 of the optional retirement plan are as follows: 17 18 Dates of Contribution Employers 19 Rate Changes 20 Effective July 1, 2002: 0.25% 0.39% 21 22 (c) Disability contributions for Special Risk Class 23 members of the optional retirement plan are as follows: 24 25 Dates of Contribution Employers 26 Rate Changes 27 Effective July 1, 2002: 1.33% 1.25% 28 29 (d) Disability contributions for Special Risk 30 Administrative Support Class members of the optional 31 retirement plan are as follows: 5 File original & 9 copies 04/16/01 hbd0005 08:38 am 00347-0045-680221
HOUSE AMENDMENT hbd06 Bill No. CS/HB 347 Amendment No. ___ (for drafter's use only) 1 2 Dates of Contribution Employers 3 Rate Changes 4 Effective July 1, 2002: 0.45% 0.73% 5 6 (e) Disability contributions for Elected Officers' 7 Class members of the optional retirement plan are as follows: 8 9 Dates of Contribution Employers 10 Rate Changes 11 Effective July 1, 2002: 12 Legislators 0.41% 0.61% 13 Governor, Lt. Governor, 0.41% 0.61% 14 Cabinet Officers 15 State Attorneys, Public 0.41% 0.61% 16 Defenders 17 Justices, Judges 0.73% 1.45% 18 County Elected Officers 0.41% 0.86% 19 20 (f) Disability contributions for Senior Management 21 Service Class members of the optional retirement plan are as 22 follows: 23 24 Dates of Contribution Employers 25 Rate Changes 26 27 Effective July 1, 2002: 0.26% 0.50% 28 29 Section 3. Section 121.591, Florida Statutes, is 30 created to read: 31 121.591 Benefits payable under the Public Employee 6 File original & 9 copies 04/16/01 hbd0005 08:38 am 00347-0045-680221
HOUSE AMENDMENT hbd06 Bill No. CS/HB 347 Amendment No. ___ (for drafter's use only) 1 Optional Retirement Program of the Florida Retirement 2 System.--Benefits may not be paid under this section unless 3 the member has terminated employment as provided in s. 4 121.021(39)(a) or is deceased and a proper application has 5 been filed in the manner prescribed by the state board or the 6 department. The state board or the department, as appropriate, 7 may cancel an application for retirement benefits when the 8 member or beneficiary fails to timely provide the information 9 and documents required by this chapter and the rules of the 10 state board and the department. In accordance with their 11 respective responsibilities as provided in this section, the 12 state board and the department shall adopt rules establishing 13 procedures for application for retirement benefits and for the 14 cancellation of such application when the required information 15 or documents are not received. 16 (1) NORMAL BENEFIT.--Under the optional program: 17 (a) Benefits, in the form of vested accumulations as 18 described in s. 121.4501(6), shall be payable under this 19 subsection as follows: 20 1. To the extent vested, benefits shall be payable 21 only to a participant. 22 2. Benefits shall be paid by the third-party 23 administrator or designated approved providers in accordance 24 with the law, the contracts, and any applicable board rule or 25 policy. 26 3. To receive benefits under this subsection, the 27 participant must be terminated from all employment with all 28 Florida Retirement System employers, as provided in s. 29 121.021(39). 30 (b) If a participant elects to receive his or her 31 benefits upon termination of employment, the participant must 7 File original & 9 copies 04/16/01 hbd0005 08:38 am 00347-0045-680221
HOUSE AMENDMENT hbd06 Bill No. CS/HB 347 Amendment No. ___ (for drafter's use only) 1 submit a written application to the third-party administrator 2 indicating his or her preferred distribution date and 3 selecting an authorized method of distribution as provided in 4 paragraph (c). The participant may defer receipt of benefits 5 until he or she chooses to make such application, subject to 6 federal requirements. 7 (c) Upon receipt by the third-party administrator of a 8 properly executed application for distribution of benefits, 9 the total accumulated benefit shall be payable to the 10 participant as: 11 1. A lump-sum distribution to the participant; 12 2. A lump-sum direct rollover distribution whereby all 13 accrued benefits, plus interest and investment earnings, are 14 paid from the participant's account directly to the custodian 15 of an eligible retirement plan, as defined in s. 402(c)(8)(B) 16 of the Internal Revenue Code, as amended, on behalf of the 17 participant; or 18 3. Periodic distributions, as authorized by the state 19 board. 20 (2) DISABILITY RETIREMENT BENEFIT.--Benefits provided 21 under this subsection are payable in lieu of the benefits 22 which would otherwise be payable under the provisions of 23 subsection (1). 24 (a)1. If the participant has no credit under the 25 defined benefit program of the Florida Retirement System or 26 such credit has been nullified as provided under s. 27 121.4501(3)(c), all moneys accumulated in the participant's 28 optional program account, including vested and nonvested 29 accumulations as described in s. 121.4501(6), shall be 30 transferred from such individual account to the Division of 31 Retirement for deposit into the Public Employee Disability 8 File original & 9 copies 04/16/01 hbd0005 08:38 am 00347-0045-680221
HOUSE AMENDMENT hbd06 Bill No. CS/HB 347 Amendment No. ___ (for drafter's use only) 1 Trust Fund; or 2 2. If the participant is a former member of the 3 defined benefit program of the Florida Retirement System who 4 elected to retain the retirement credit he or she had earned 5 under that program as provided in s. 121.4501(3)(b), a sum 6 representing the actuarial present value of such credit shall 7 be transferred by the Division of Retirement from the Florida 8 Retirement System Trust Fund to the Public Employee Disability 9 Trust Fund. In addition, all moneys accumulated in the 10 participant's optional program account, including vested and 11 nonvested accumulations as described in s. 121.4501(6), shall 12 be transferred from such individual account to the Division of 13 Retirement for deposit into the Public Employee Disability 14 Trust Fund. 15 (b)1. A participant of the optional program who 16 becomes totally and permanently disabled, as defined in 17 paragraph (d), after completing 8 years of creditable service, 18 or a participant who becomes totally and permanently disabled 19 in the line of duty regardless of his or her length of 20 service, shall be entitled to a monthly disability benefit as 21 provided in this subsection. 22 2. For purposes of this subsection, the 8 years of 23 creditable service required to vest for regular disability 24 benefits must be creditable service under the defined benefit 25 program of the Florida Retirement System or service under the 26 optional program, subject to the following conditions: 27 a. In the case of present value transfers to a 28 participant's account under s. 121.4501(3)(c), the period of 29 service under the defined benefit program represented in the 30 present value amounts transferred shall only be considered 31 creditable service for purposes of vesting for disability 9 File original & 9 copies 04/16/01 hbd0005 08:38 am 00347-0045-680221
HOUSE AMENDMENT hbd06 Bill No. CS/HB 347 Amendment No. ___ (for drafter's use only) 1 benefits as long as such funds remain in the participant's 2 accounts under the optional program. 3 b. In the case of contributions made to a 4 participant's accounts under s. 121.4501(5), the period of 5 service under the optional program shall only be considered 6 creditable service for purposes of vesting for disability 7 benefits as long as such funds remain in the participant's 8 accounts under the optional program. 9 10 If a participant terminates employment and takes distribution 11 of such funds as provided in subsection (1), all credit for 12 the service represented by such distributed funds is forfeited 13 for purposes of qualifying for disability benefits under this 14 subsection. 15 (c)1. If the division has received from the employer 16 the required documentation of the participant's termination of 17 employment, the effective retirement date for a participant 18 who applies and is approved for disability retirement shall be 19 established by rule of the division. 20 2. For a participant who is receiving workers' 21 compensation payments, the effective disability retirement 22 date may not precede the date the participant reaches maximum 23 medical improvement, unless the participant terminates 24 employment prior to reaching maximum medical improvement. 25 (d) A participant shall be considered totally and 26 permanently disabled if, in the opinion of the division, he or 27 she is prevented by reason of a medically determinable 28 physical or mental impairment from rendering useful and 29 efficient service as an officer or employee. 30 (e) The division, before approving payment of any 31 disability retirement benefit, shall require proof that the 10 File original & 9 copies 04/16/01 hbd0005 08:38 am 00347-0045-680221
HOUSE AMENDMENT hbd06 Bill No. CS/HB 347 Amendment No. ___ (for drafter's use only) 1 participant is totally and permanently disabled as follows: 2 1. Such proof shall include the certification of the 3 participant's total and permanent disability by two licensed 4 physicians in this state and such other evidence of disability 5 as the division may require, including reports from vocational 6 rehabilitation, evaluation, or testing specialists who have 7 evaluated the applicant for employment. 8 2. It shall be documented that: 9 a. The participant's medical condition occurred or 10 became symptomatic during the time the participant was 11 employed in an employee/employer relationship with his or her 12 employer. 13 b. The participant was totally and permanently 14 disabled at the time he or she terminated covered employment. 15 c. The participant has not been employed with any 16 other employer after such termination. 17 3. If the application is for in-line-of-duty 18 disability, in addition to the requirements of subparagraph 19 2., it must be documented by competent medical evidence that 20 the disability was caused by a job-related illness or accident 21 which occurred while the participant was in an 22 employee/employer relationship with his or her employer. 23 4. The unavailability of an employment position that 24 the participant is physically and mentally capable of 25 performing shall not be considered as proof of total and 26 permanent disability. 27 (f) A participant whose application for regular 28 disability retirement has been denied and who has filed an 29 appeal to the State Retirement Commission under s. 121.23 may, 30 if eligible, elect to terminate employment and take 31 distribution of benefits as provided under subsection (1) 11 File original & 9 copies 04/16/01 hbd0005 08:38 am 00347-0045-680221
HOUSE AMENDMENT hbd06 Bill No. CS/HB 347 Amendment No. ___ (for drafter's use only) 1 while he or she is awaiting the decision on the appeal. In 2 that event: 3 1. If disability benefits are later approved as a 4 result of the appeal, to receive the disability benefit 5 payable under this subsection, the participant shall first 6 repay to the division for deposit in the Public Employee 7 Disability Trust Fund the total amount withdrawn under 8 subsection (1), less the amount that would have otherwise been 9 payable as a monthly disability benefit while the appeal was 10 pending if the application had been initially approved. 11 2. If the appeal is later denied, no further benefits 12 are payable to the terminated participant. 13 (g) Upon the disability retirement of a participant 14 under this subsection, the participant shall receive a monthly 15 benefit that shall begin to accrue on the first day of the 16 month of disability retirement, as approved by the division, 17 and shall be payable on the last day of that month and each 18 month thereafter during his or her lifetime and continued 19 disability. 20 (h) The amount of each monthly payment shall be 21 computed in the same manner as that computed for a normal 22 retirement benefit but shall be based on disability option 23 actuarial equivalency tables and the average monthly 24 compensation and creditable service of the participant as of 25 his or her disability retirement date, subject to the 26 following: 27 1. If the participant's disability occurred in the 28 line of duty, the monthly Option 1 benefit shall be a minimum 29 of: 30 a. Forty-two percent of the participant's average 31 monthly compensation as of the disability retirement date; or 12 File original & 9 copies 04/16/01 hbd0005 08:38 am 00347-0045-680221
HOUSE AMENDMENT hbd06 Bill No. CS/HB 347 Amendment No. ___ (for drafter's use only) 1 b. Sixty-five percent of the participant's average 2 monthly compensation as of the disability retirement date for 3 a participant of the special risk class who retires on or 4 after July 1, 2002. 5 2. If the participant's disability occurred other than 6 in the line of duty, the monthly Option 1 benefit shall be a 7 minimum of 25 percent of the participant's average monthly 8 compensation as of the disability retirement date. 9 (i) A participant whose initial application for 10 disability retirement has been denied may reapply for 11 disability benefits. However, such participant's reapplication 12 may be considered only if the participant presents new medical 13 evidence of a medical condition that existed prior to the 14 participant's termination of employment. The division may 15 prescribe by rule procedures for reapplication and for review 16 and approval or disapproval of reapplication. 17 (j) Nothing in this subsection shall be construed to 18 prevent a participant who has been approved for a disability 19 retirement benefit payable under this subsection from electing 20 to receive, in lieu of the benefit payable under this 21 subsection, the benefit payable to him or her under the 22 provisions of subsection (1), provided such election is made 23 prior to the deposit or cashing of a disability retirement 24 warrant or receipt of such warrant by electronic funds 25 transfer in accordance with the participant's authorization of 26 direct deposit of such funds. 27 (k) The division may require periodic reexaminations 28 at the expense of the Public Employee Disability Trust Fund. 29 The division may adopt rules establishing procedures for 30 conducting and review of such reexaminations. If the division 31 finds that a participant who is receiving disability benefits 13 File original & 9 copies 04/16/01 hbd0005 08:38 am 00347-0045-680221
HOUSE AMENDMENT hbd06 Bill No. CS/HB 347 Amendment No. ___ (for drafter's use only) 1 is no longer disabled, the division shall direct that the 2 disability benefits be discontinued and no further benefits 3 shall be payable under this subsection. The decision of the 4 division on this question shall be final and binding. Upon 5 termination of the monthly disability benefit: 6 1. If such participant does not reenter covered 7 employment following recovery from disability and had not 8 satisfied the vesting requirement as of the disability 9 retirement date for any or all of the moneys which had 10 accumulated in his or her participant accounts, the remainder 11 of the nonvested accumulation as described under subparagraph 12 5., if any, shall be held in a suspense account in the Public 13 Employee Disability Trust Fund. 14 a. If the participant returns to covered employment as 15 an eligible employee as defined in s. 121.4501(2) within 5 16 years after the date of recovery, the division shall transfer 17 any such moneys held in the suspense account, plus interest 18 calculated at an effective annual rate of 6 percent, to the 19 State Board of Administration for deposit in the participant's 20 individual account under the optional program, as directed by 21 the participant. 22 b. If the participant fails to return to covered 23 employment within 5 years after recovery, any such moneys held 24 in the suspense account in the Public Employee Disability 25 Trust Fund shall be forfeited. 26 2. If such participant does not reenter covered 27 employment following recovery from disability but had 28 satisfied vesting requirements as of the disability retirement 29 date for any or all of the moneys which had accumulated in his 30 or her accounts under the optional program, the amount 31 representing the remainder of his or her vested accumulation 14 File original & 9 copies 04/16/01 hbd0005 08:38 am 00347-0045-680221
HOUSE AMENDMENT hbd06 Bill No. CS/HB 347 Amendment No. ___ (for drafter's use only) 1 as described under subparagraph 5., if any, shall be 2 transferred from the Public Employee Disability Trust Fund to 3 the Public Employee Optional Retirement Program Trust Fund and 4 shall be payable as provided in subsection (1). 5 3. If such participant returns to covered employment 6 following recovery from disability as a participant in the 7 optional program, the amount representing the remainder of his 8 or her nonvested accumulation or the remainder of his or her 9 vested accumulation as described under subparagraph 5., if 10 any, shall be transferred from the Public Employee Disability 11 Trust Fund to the third-party administrator for deposit in the 12 participant's individual investment accounts as directed by 13 the participant. Vested accumulations shall be accounted for 14 separately from nonvested accumulations. 15 4. If such participant reenters covered employment as 16 a member of the defined benefit program of the Florida 17 Retirement System, and is continuously employed for a minimum 18 of 1 year of creditable service, he or she may claim as 19 creditable service the months during which he or she was 20 receiving a disability benefit, upon payment of the required 21 contributions as provided in s. 121.091(4)(h)1.d. 22 5. As used in reference to funds deposited in the 23 Public Employee Disability Trust Fund under paragraph (a): 24 a. The term "remainder of the nonvested accumulation" 25 means all employer contributions deposited on behalf of a 26 participant who had not met the vesting requirement set forth 27 in s. 121.4501(6)(a)1. as of his or her disability retirement 28 date and any transferred present value amount deposited on 29 behalf of a participant who had not met the vesting 30 requirement set forth in s. 121.4501(6)(b)1. as of his or her 31 disability retirement date, plus interest and earnings 15 File original & 9 copies 04/16/01 hbd0005 08:38 am 00347-0045-680221
HOUSE AMENDMENT hbd06 Bill No. CS/HB 347 Amendment No. ___ (for drafter's use only) 1 thereon, less the total amount of disability benefits received 2 by that participant. 3 b. The term "remainder of the vested accumulation" 4 means all employer contributions deposited on behalf of any 5 participant who had met the vesting requirement set forth in 6 s. 121.4501(6)(a)1. as of his or her disability retirement 7 date and any transferred present value amount deposited on 8 behalf of any participant who had met the vesting requirement 9 set forth in s. 121.4501(6)(b)1. as of his or her disability 10 retirement date, plus interest and earnings thereon, less the 11 total amount of disability benefits received by that 12 participant. 13 (l) Both the participant receiving disability benefits 14 who reenters employment and the employer employing such 15 disability retiree shall notify the division immediately upon 16 reemployment and the division shall terminate such 17 participant's disability benefits, effective upon the first 18 day of the month following the month in which notification of 19 recovery is received. If the participant is reemployed with a 20 Florida Retirement System employer at the time of benefit 21 termination and he or she has received disability retirement 22 benefit and salary payments concurrently prior to notifying 23 the division, he or she may elect within 30 days to: 24 1. Retain the retirement benefits received prior to 25 termination of disability benefits and begin receiving 26 retirement service credit effective upon the date of 27 termination of benefits; or 28 2. Repay, within 12 months after his or her decision 29 to receive service credit, the retirement benefits received 30 for each month of reemployment prior to termination of 31 disability benefits and begin receiving retirement service 16 File original & 9 copies 04/16/01 hbd0005 08:38 am 00347-0045-680221
HOUSE AMENDMENT hbd06 Bill No. CS/HB 347 Amendment No. ___ (for drafter's use only) 1 credit effective upon the date of reemployment. Any such 2 unpaid benefits shall have compound interest of 6.5 percent 3 added each June 30. 4 5 A participant may not receive both retirement service credit 6 for employment and retirement benefits for the same month. 7 (m) If, after recovery from disability and reentry 8 into covered employment, the participant again becomes 9 disabled and is again approved for disability retirement, the 10 Option 1 monthly retirement benefit shall not be less than the 11 Option 1 monthly benefit calculated at the time of the 12 previous disability, plus any cost-of-living increases payable 13 up to the time the disability benefit was terminated upon his 14 or her reentry into covered employment. 15 (n) A participant shall not be entitled to receive any 16 disability retirement benefit if the disability is a result 17 of: 18 1. Injury or disease sustained by the participant 19 while willfully participating in a riot, civil insurrection, 20 or other act of violence or while committing a felony; 21 2. Injury or disease sustained by the participant 22 after his or her employment has terminated; or 23 3. Intentional, self-inflicted injury. 24 (o)1. If a participant is a justice of the Supreme 25 Court, judge of a district court of appeal, circuit judge, or 26 judge of a county court who has served for 6 years or more as 27 an elected constitutional judicial officer, including service 28 as a judicial officer in any court abolished pursuant to Art. 29 V of the State Constitution, and who is retired for disability 30 by order of the Supreme Court upon recommendation of the 31 Judicial Qualifications Commission pursuant to the provisions 17 File original & 9 copies 04/16/01 hbd0005 08:38 am 00347-0045-680221
HOUSE AMENDMENT hbd06 Bill No. CS/HB 347 Amendment No. ___ (for drafter's use only) 1 of Art. V of the State Constitution, the participant's Option 2 1 monthly disability benefit amount as provided in s. 3 121.091(6)(a)1. shall be two-thirds of his or her monthly 4 compensation as of the participant's disability retirement 5 date. Such a participant may alternatively elect to receive an 6 actuarially adjusted disability retirement benefit under any 7 other option as provided in s. 121.091(6)(a), or to receive 8 the normal benefit payable under the optional program as set 9 forth under subsection (1). 10 2. If any justice or judge who is a participant of the 11 optional program is retired for disability by order of the 12 Supreme Court upon recommendation of the Judicial 13 Qualifications Commission pursuant to the provisions of Art. V 14 of the State Constitution and elects to receive a monthly 15 disability benefit under the provisions of this paragraph: 16 a. Any present value amount which was transferred to 17 his or her program account and all employer contributions made 18 to such account on his or her behalf, plus interest and 19 earnings thereon, shall be transferred to and deposited in the 20 Public Employee Disability Trust Fund. 21 b. The monthly benefits payable under this paragraph 22 for any affected justice or judge retired from the Florida 23 Retirement System pursuant to Art. V of the State Constitution 24 shall be paid from the Public Employee Disability Trust Fund. 25 (3) DEATH BENEFITS.--Under the optional program: 26 (a) Survivor benefits shall be payable in accordance 27 with the following terms and conditions: 28 1. To the extent vested, benefits shall be payable 29 only to a participant's beneficiary or beneficiaries as 30 designated by the participant. 31 2. Benefits shall be paid by the third-party 18 File original & 9 copies 04/16/01 hbd0005 08:38 am 00347-0045-680221
HOUSE AMENDMENT hbd06 Bill No. CS/HB 347 Amendment No. ___ (for drafter's use only) 1 administrator or designated approved providers in accordance 2 with the law, the contracts, and any applicable board rule or 3 policy. 4 3. To receive benefits under this subsection, the 5 participant must be deceased. 6 (b) In the event of a participant's death, all vested 7 accumulations as described in s. 121.4501(6), less withholding 8 taxes remitted to the Internal Revenue Service, shall be 9 distributed, as provided in paragraph (c), to the 10 participant's designated beneficiary or beneficiaries, or to 11 the participant's estate, as if the participant retired on the 12 date of death. No other death benefits shall be available for 13 survivors of participants under the optional program, except 14 for such benefits, or coverage for such benefits, as are 15 otherwise provided by law or are separately afforded by the 16 employer, at the employer's discretion. 17 (c) Upon receipt by the third-party administrator of a 18 properly executed application for distribution of benefits, 19 the total accumulated benefit shall be payable by the 20 third-party administrator to the participant's surviving 21 beneficiary or beneficiaries as: 22 1. A lump-sum distribution payable to the beneficiary 23 or beneficiaries or to the deceased participant's estate; 24 2. An eligible rollover distribution on behalf of the 25 surviving spouse of a deceased participant, whereby all 26 accrued benefits, plus interest and investment earnings, are 27 paid from the deceased participant's account directly to the 28 custodian of an individual retirement account or an individual 29 retirement annuity, as described in s. 402(c)(9) of the 30 Internal Revenue Code, on behalf of the surviving spouse; or 31 3. A partial lump-sum payment whereby a portion of the 19 File original & 9 copies 04/16/01 hbd0005 08:38 am 00347-0045-680221
HOUSE AMENDMENT hbd06 Bill No. CS/HB 347 Amendment No. ___ (for drafter's use only) 1 accrued benefit is paid to the deceased participant's 2 surviving spouse or other designated beneficiaries, less 3 withholding taxes remitted to the Internal Revenue Service, 4 and the remaining amount is transferred directly to the 5 custodian of an individual retirement account or an individual 6 retirement annuity, as described in s. 402(c)(9) of the 7 Internal Revenue Code, on behalf of the surviving spouse. The 8 proportions must be specified by the participant or the 9 surviving beneficiary. 10 11 This paragraph does not abrogate other applicable provisions 12 of state or federal law providing for payment of death 13 benefits. 14 (4) LIMITATION ON LEGAL PROCESS.--The benefits payable 15 to any person under the optional program and any contributions 16 accumulated under such program are not subject to assignment, 17 execution, attachment, or any legal process, except for 18 qualified domestic relations orders by a court of competent 19 jurisdiction, income deduction orders as provided in s. 20 61.1301, and federal income tax levies. 21 Section 4. The Legislature finds that a proper and 22 legitimate state purpose is served when employees and retirees 23 of the state and of its political subdivisions, and the 24 dependents, survivors, and beneficiaries of such employees and 25 retirees, are extended the basic protections afforded by 26 governmental retirement systems that provide fair and adequate 27 benefits that are managed, administered, and funded in an 28 actuarially sound manner, as required by section 14, Article X 29 of the State Constitution and part VII of chapter 112, Florida 30 Statutes. Therefore, the Legislature determines and declares 31 that this act fulfills an important state interest. 20 File original & 9 copies 04/16/01 hbd0005 08:38 am 00347-0045-680221
HOUSE AMENDMENT hbd06 Bill No. CS/HB 347 Amendment No. ___ (for drafter's use only) 1 ================ T I T L E A M E N D M E N T =============== 2 And the title is amended as follows: 3 On page 1, line 3, after Program; 4 5 insert: 6 amending s. 121.4501, F.S.; providing 7 additional definitions; providing for payment 8 of benefits pursuant to s. 121.591, F.S.; 9 amending s. 121.571, F.S.; revising employer 10 contribution rates to disability accounts; 11 creating s. 121.591, F.S.; providing for 12 payment of normal benefits, disability 13 retirement benefits, and death benefits under 14 the Public Employee Optional Retirement 15 Program; providing requirements, criteria, 16 procedures, and limitations; providing for 17 disability benefits for certain justices and 18 judges; limiting application of legal process 19 to such benefits; providing a declaration of 20 important state interest; 21 22 23 24 25 26 27 28 29 30 31 21 File original & 9 copies 04/16/01 hbd0005 08:38 am 00347-0045-680221