SENATE AMENDMENT
Bill No. CS/HB 347, 1st Eng.
Amendment No. ___ Barcode 912778
CHAMBER ACTION
Senate House
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11 Senator Garcia moved the following amendment:
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13 Senate Amendment (with title amendment)
14 On page 6, line 1, through
15 page 13, line 12, delete those lines
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17 insert:
18 Section 5. Effective October 1, 2001, subsection (2)
19 of section 121.0515, Florida Statutes, is amended to read:
20 121.0515 Special risk membership.--
21 (2) CRITERIA.--A member, to be designated as a special
22 risk member, must meet the following criteria:
23 (a) The member must be employed as a law enforcement
24 officer and be certified, or required to be certified, in
25 compliance with s. 943.1395; however, sheriffs and elected
26 police chiefs shall be excluded from meeting the certification
27 requirements of this paragraph. In addition, the member's
28 duties and responsibilities must include the pursuit,
29 apprehension, and arrest of law violators or suspected law
30 violators; or the member must be an active member of a bomb
31 disposal unit whose primary responsibility is the location,
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1 handling, and disposal of explosive devices; or the member
2 must be the supervisor or command officer of a member or
3 members who have such responsibilities; provided, however,
4 administrative support personnel, including, but not limited
5 to, those whose primary duties and responsibilities are in
6 accounting, purchasing, legal, and personnel, shall not be
7 included;
8 (b) The member must be employed as a firefighter and
9 be certified, or required to be certified, in compliance with
10 s. 633.35 and be employed solely within the fire department of
11 a local government the employer or an agency of state
12 government with firefighting responsibilities. In addition,
13 the member's duties and responsibilities must include
14 on-the-scene fighting of fires, fire prevention, or
15 firefighter training; or direct supervision of firefighting
16 units, fire prevention, or firefighter training; or aerial
17 firefighting surveillance performed by fixed-wing pilots
18 employed by the Division of Forestry of the Department of
19 Agriculture and Consumer Services; or the member must be the
20 supervisor or command officer of a member or members who have
21 such responsibilities; provided, however, administrative
22 support personnel, including, but not limited to, those whose
23 primary duties and responsibilities are in accounting,
24 purchasing, legal, and personnel, shall not be included;
25 (c) The member must be employed as a correctional
26 officer and be certified, or required to be certified, in
27 compliance with s. 943.1395. In addition, the member's
28 primary duties and responsibilities must be the custody, and
29 physical restraint when necessary, of prisoners or inmates
30 within a prison, jail, or other criminal detention facility,
31 or while on work detail outside the facility, or while being
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1 transported; or the member must be the supervisor or command
2 officer of a member or members who have such responsibilities;
3 provided, however, administrative support personnel,
4 including, but not limited to, those whose primary duties and
5 responsibilities are in accounting, purchasing, legal, and
6 personnel, shall not be included; however, wardens and
7 assistant wardens, as defined by rule, shall participate in
8 the Special Risk Class;
9 (d) The member must be employed by a licensed Advance
10 Life Support (ALS) or Basic Life Support (BLS) employer as an
11 emergency medical technician or a paramedic and be certified
12 in compliance with s. 401.27. In addition, the member's
13 primary duties and responsibilities must include on-the-scene
14 emergency medical care or direct supervision of emergency
15 medical technicians or paramedics, or the member must be the
16 supervisor or command officer of one or more members who have
17 such responsibility. However, administrative support
18 personnel, including, but not limited to, those whose primary
19 responsibilities are in accounting, purchasing, legal, and
20 personnel, shall not be included;
21 (e) The member must be employed as a community-based
22 correctional probation officer and be certified, or required
23 to be certified, in compliance with s. 943.1395. In addition,
24 the member's primary duties and responsibilities must be the
25 supervised custody, surveillance, control, investigation, and
26 counseling of assigned inmates, probationers, parolees, or
27 community controllees within the community; or the member must
28 be the supervisor of a member or members who have such
29 responsibilities. Administrative support personnel, including,
30 but not limited to, those whose primary duties and
31 responsibilities are in accounting, purchasing, legal
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1 services, and personnel management, shall not be included;
2 however, probation and parole circuit and deputy circuit
3 administrators shall participate in the Special Risk Class; or
4 (f) The member must be employed in one of the
5 following classes and must spend at least 75 percent of his or
6 her time performing duties which involve contact with patients
7 or inmates in a correctional or forensic facility or
8 institution:
9 1. Dietitian (class codes 5203 and 5204).
10 2. Public health nutrition consultant (class code
11 5224).
12 3. Psychological specialist (class codes 5230 and
13 5231).
14 4. Psychologist (class code 5234).
15 5. Senior psychologist (class codes 5237 and 5238).
16 6. Regional mental health consultant (class code
17 5240).
18 7. Psychological Services Director--DCF (class code
19 5242).
20 8. Pharmacist (class codes 5245 and 5246).
21 9. Senior pharmacist (class codes 5248 and 5249).
22 10. Dentist (class code 5266).
23 11. Senior dentist (class code 5269).
24 12. Registered nurse (class codes 5290 and 5291).
25 13. Senior registered nurse (class codes 5292 and
26 5293).
27 14. Registered nurse specialist (class codes 5294 and
28 5295).
29 15. Clinical associate (class codes 5298 and 5299).
30 16. Advanced registered nurse practitioner (class
31 codes 5297 and 5300).
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1 17. Advanced registered nurse practitioner specialist
2 (class codes 5304 and 5305).
3 18. Registered nurse supervisor (class codes 5306 and
4 5307).
5 19. Senior registered nurse supervisor (class codes
6 5308 and 5309).
7 20. Registered nursing consultant (class codes 5312
8 and 5313).
9 21. Quality management program supervisor (class code
10 5314).
11 22. Executive nursing director (class codes 5320 and
12 5321).
13 23. Speech and hearing therapist (class code 5406); or
14 24. Pharmacy manager (class code 5251).
15 25. Unit treatment and rehabilitation director-F/C
16 (class code 5805).
17 26. Unit treatment and rehabilitation senior
18 supervisor I-F/C (class code 5793).
19 27. Unit treatment and rehabilitation supervisor
20 II-F/C (class code 5796).
21 28. Unit treatment and rehabilitation specialist-F/C
22 (class code 5791).
23 29. Unit treatment and rehabilitation supervisor I-F/C
24 (class code 5786).
25 30. Unit treatment and rehabilitation director (class
26 code 5779).
27 31. Unit treatment and rehabilitation senior
28 supervisor I (class code 5777).
29 32. Unit treatment and rehabilitation senior
30 supervisor II (class code 5778).
31 33. Unit treatment and rehabilitation senior
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1 supervisor III (class code 5780).
2 34. Unit treatment and rehabilitation senior
3 supervisor III-F/C (class code 5799).
4 35. Unit treatment and rehabilitation specialist
5 (class code 5776).
6 36. Unit treatment and rehabilitation supervisor I
7 (class code 5710).
8 Section 6. Effective October 1, 2001, subsection (1)
9 of section 121.055, Florida Statutes, is amended to read:
10 121.055 Senior Management Service Class.--There is
11 hereby established a separate class of membership within the
12 Florida Retirement System to be known as the "Senior
13 Management Service Class," which shall become effective
14 February 1, 1987.
15 (1)(a) Participation in the Senior Management Service
16 Class shall be limited to and compulsory for any member of the
17 Florida Retirement System who holds a position in the Senior
18 Management Service of the State of Florida, established by
19 part III of chapter 110, unless such member elects, within the
20 time specified herein, to participate in the Senior Management
21 Service Optional Annuity Program as established in subsection
22 (6).
23 (b)1. Except as provided in subparagraph 2., effective
24 January 1, 1990, participation in the Senior Management
25 Service Class shall be compulsory for the president of each
26 community college, the manager of each participating city or
27 county, and all appointed district school superintendents.
28 Effective January 1, 1994, additional positions may be
29 designated for inclusion in the Senior Management Service
30 Class of the Florida Retirement System, provided that:
31 a. Positions to be included in the class shall be
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1 designated by the local agency employer. Notice of intent to
2 designate positions for inclusion in the class shall be
3 published once a week for 2 consecutive weeks in a newspaper
4 of general circulation published in the county or counties
5 affected, as provided in chapter 50.
6 b. Up to 10 nonelective full-time positions may be
7 designated for each local agency employer reporting to the
8 Department of Management Services; for local agencies with 100
9 or more regularly established positions, additional
10 nonelective full-time positions may be designated, not to
11 exceed 1 percent of the regularly established positions within
12 the agency.
13 c. Each position added to the class must be a
14 managerial or policymaking position filled by an employee who
15 is not subject to continuing contract and serves at the
16 pleasure of the local agency employer without civil service
17 protection, and who:
18 (I) Heads an organizational unit; or
19 (II) Has responsibility to effect or recommend
20 personnel, budget, expenditure, or policy decisions in his or
21 her areas of responsibility.
22 2. In lieu of participation in the Senior Management
23 Service Class, members of the Senior Management Service Class
24 pursuant to the provisions of subparagraph 1. may withdraw
25 from the Florida Retirement System altogether. The decision to
26 withdraw from the Florida Retirement System shall be
27 irrevocable for as long as the employee holds such a position.
28 Any service creditable under the Senior Management Service
29 Class shall be retained after the member withdraws from the
30 Florida Retirement System; however, additional service credit
31 in the Senior Management Service Class shall not be earned
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1 after such withdrawal. Such members shall not be eligible to
2 participate in the Senior Management Service Optional Annuity
3 Program.
4 (c)1. Effective January 1, 1990, participation in the
5 Senior Management Service Class shall be compulsory for up to
6 75 nonelective positions at the level of committee staff
7 director or higher or equivalent managerial or policymaking
8 positions within the House of Representatives, as selected by
9 the Speaker of the House of Representatives, up to 50
10 nonelective positions at the level of committee staff director
11 or higher or equivalent managerial or policymaking positions
12 within the Senate, as selected by the President of the Senate,
13 all staff directors of joint committees and service offices of
14 the Legislature, the Auditor General and up to 9 managerial or
15 policymaking positions within his or her office as selected by
16 the Auditor General, and the executive director of the
17 Commission on Ethics.
18 2. Participation in this class shall be compulsory,
19 except as provided in subparagraph 3., for any legislative
20 employee who holds a position designated for coverage in the
21 Senior Management Service Class, and such participation shall
22 continue until the employee terminates employment in a covered
23 position.
24 3. In lieu of participation in the Senior Management
25 Service Class, at the discretion of the President of the
26 Senate and the Speaker of the House of Representatives, such
27 members may participate in the Senior Management Service
28 Optional Annuity Program as established in subsection (6).
29 (d) Effective January 1, 1991, participation in the
30 Senior Management Service Class shall be compulsory for any
31 member of the Florida Retirement System in a position that has
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1 been designated eligible for inclusion in the Executive
2 Service of the State University System or who holds a position
3 as president of a state university, unless such member elects,
4 pursuant to s. 121.35, to participate in the optional
5 retirement program.
6 (e) Effective January 1, 1991, participation in the
7 Senior Management Service Class shall be compulsory for the
8 number of senior managers who have policymaking authority with
9 the State Board of Administration, as determined by the
10 Governor, Treasurer, and Comptroller acting as the State Board
11 of Administration, unless such member elects to participate in
12 the Senior Management Service Optional Annuity Program as
13 established in subsection (6) in lieu of participation in the
14 Senior Management Service Class. Such election shall be made
15 in writing and filed with the division and the personnel
16 officer of the State Board of Administration within 90 days
17 after becoming eligible for membership in the Senior
18 Management Service Class.
19 (f) Effective July 1, 1997:
20 1. Any elected state officer eligible for membership
21 in the Elected Officers' Class under s. 121.052(2)(a), (b), or
22 (c) who elects membership in the Senior Management Service
23 Class under s. 121.052(3)(c) may, within 6 months after
24 assuming office or within 6 months after this act becomes a
25 law for serving elected state officers, elect to participate
26 in the Senior Management Service Optional Annuity Program, as
27 provided in subsection (6), in lieu of membership in the
28 Senior Management Service Class.
29 2. Any elected county officer eligible for membership
30 in the Elected Officers' Class under s. 121.052(2)(d) who
31 elects membership in the Senior Management Service Class under
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1 s. 121.052(3)(c) may, within 6 months after assuming office,
2 or within 6 months after this act becomes a law for serving
3 elected county officers, elect to participate in a lifetime
4 monthly annuity program, as provided in subparagraph (b)2., in
5 lieu of membership in the Senior Management Service Class.
6 (g) Effective July 1, 1996, participation in the
7 Senior Management Service Class shall be compulsory for any
8 member of the Florida Retirement System employed with the
9 Department of Military Affairs in the positions of the
10 Adjutant General, Assistant Adjutant General-Army, Assistant
11 Adjutant General-Air, State Quartermaster, Director of
12 Military Personnel, Director of Administration, and additional
13 directors as designated by the agency head, not to exceed a
14 total of 10 positions. In lieu of participation in the Senior
15 Management Service Class, such members may participate in the
16 Senior Management Service Optional Annuity Program as
17 established in subsection (6).
18 (h)1. Except as provided in subparagraph 3., effective
19 January 1, 1994, participation in the Senior Management
20 Service Class shall be compulsory for the State Courts
21 Administrator and the Deputy State Courts Administrators, the
22 Clerk of the Supreme Court, the Marshal of the Supreme Court,
23 the Executive Director of the Justice Administrative
24 Commission, the Capital Collateral Regional Counsels, the
25 clerks of the district courts of appeals, the marshals of the
26 district courts of appeals, and the trial court administrator
27 in each judicial circuit. Effective January 1, 1994,
28 additional positions in the offices of the state attorney and
29 public defender in each judicial circuit may be designated for
30 inclusion in the Senior Management Service Class of the
31 Florida Retirement System, provided that:
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1 a. Positions to be included in the class shall be
2 designated by the state attorney or public defender, as
3 appropriate. Notice of intent to designate positions for
4 inclusion in the class shall be published once a week for 2
5 consecutive weeks in a newspaper of general circulation
6 published in the county or counties affected, as provided in
7 chapter 50.
8 b. One nonelective full-time position may be
9 designated for each state attorney and public defender
10 reporting to the Department of Management Services; for
11 agencies with 200 or more regularly established positions
12 under the state attorney or public defender, additional
13 nonelective full-time positions may be designated, not to
14 exceed 0.5 percent of the regularly established positions
15 within the agency.
16 c. Each position added to the class must be a
17 managerial or policymaking position filled by an employee who
18 serves at the pleasure of the state attorney or public
19 defender without civil service protection, and who:
20 (I) Heads an organizational unit; or
21 (II) Has responsibility to effect or recommend
22 personnel, budget, expenditure, or policy decisions in his or
23 her areas of responsibility.
24 2. Participation in this class shall be compulsory,
25 except as provided in subparagraph 3., for any judicial
26 employee who holds a position designated for coverage in the
27 Senior Management Service Class, and such participation shall
28 continue until the employee terminates employment in a covered
29 position. Effective January 1, 2001, participation in this
30 class is compulsory for assistant state attorneys, assistant
31 statewide prosecutors, assistant public defenders, and
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1 assistant capital collateral regional counsels. Effective
2 January 1, 2002, participation in this class is compulsory for
3 assistant attorneys general.
4 3. In lieu of participation in the Senior Management
5 Service Class, such members, excluding assistant state
6 attorneys, assistant public defenders, assistant statewide
7 prosecutors, assistant attorneys general, and assistant
8 capital collateral regional counsels, may participate in the
9 Senior Management Service Optional Annuity Program as
10 established in subsection (6).
11 (i)1. Except as provided in subparagraph 2., effective
12 July 1, 1999, participation in the Senior Management Service
13 Class is compulsory for any member of the Florida Retirement
14 System who is employed as a judge of compensation claims with
15 the Office of the Judges of Compensation Claims within the
16 Department of Labor and Employment Security.
17 2. In lieu of participating in the Senior Management
18 Service Class, a judge of compensation claims may participate
19 in the Senior Management Service Optional Annuity Program
20 established under subsection (6).
21 (j) Except as may otherwise be provided, any member of
22 the Senior Management Service Class may purchase additional
23 retirement credit in such class for creditable service within
24 the purview of the Senior Management Service Class retroactive
25 to February 1, 1987, and may upgrade retirement credit for
26 such service, to the extent of 2 percent of the member's
27 average monthly compensation as specified in paragraph (4)(d)
28 for such service. Contributions for upgrading the additional
29 Senior Management Service credit pursuant to this paragraph
30 shall be equal to the difference in the contributions paid and
31 the Senior Management Service Class contribution rate as a
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1 percentage of gross salary in effect for the period being
2 claimed, plus interest thereon at the rate of 6.5 percent a
3 year, compounded annually until the date of payment. This
4 service credit may be purchased by the employer on behalf of
5 the member.
6 Section 7. Subsection (1), paragraph (a) of subsection
7 (2), paragraph (e) of subsection (4), paragraph (b) of
8 subsection (8), and paragraphs (a) and (b) of subsection (9)
9 of section 121.4501, Florida Statutes, are amended, and
10 paragraph (f) is added to subsection (9) of that section, to
11 read:
12 121.4501 Public Employee Optional Retirement
13 Program.--
14 (1) The Trustees of the State Board of Administration
15 shall establish an optional defined contribution retirement
16 program for members of the Florida Retirement System under
17 which retirement benefits will be provided for eligible
18 employees who elect to participate in the program. The
19 benefits to be provided for or on behalf of participants in
20 such optional retirement program shall be provided through
21 employee-directed investments, in accordance with s. 401(a) of
22 the Internal Revenue Code and its related regulations. The
23 employers shall contribute, as provided in this section and s.
24 121.571, to the Public Employee Optional Retirement Program
25 Trust Fund toward the funding of such optional benefits.
26 (2) DEFINITIONS.--As used in this section, the term:
27 (a) "Approved provider" or "provider" means a private
28 sector company that is selected and approved by the state
29 board to offer one or more investment products or services to
30 the Public Employee Optional Retirement Program. The term
31 includes a bundled provider that offers participants a range
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1 of individually allocated or unallocated investment products
2 and may offer a range of administrative and customer services,
3 which may include accounting and administration of individual
4 participant benefits and contributions; individual participant
5 recordkeeping; asset purchase, control, and safekeeping;
6 direct execution of the participant's instructions as to asset
7 and contribution allocation; calculation of daily net asset
8 values; direct access to participant account information;
9 periodic reporting to participants, at least quarterly, on
10 account balances and transactions; guidance, advice, and
11 allocation services directly relating to its own investment
12 options or products, but only if the bundled provider complies
13 with the standard of care of s. 404(a)(1)(A-B) of the Employee
14 Retirement Income Security Act of 1974 (ERISA) and if
15 providing such guidance, advice, or allocation services does
16 not constitute a prohibited transaction under s. 4975(c)(1) of
17 the Internal Revenue Code or s. 406 of ERISA, notwithstanding
18 that such prohibited transaction provisions do not apply to
19 the optional retirement program; a broad array of distribution
20 options; asset allocation; and retirement counseling and
21 education. Private sector companies include investment
22 management companies, insurance companies, depositories, and
23 mutual fund companies.
24 (4) PARTICIPATION; ENROLLMENT.--
25 (e) After the period during which an eligible employee
26 had the choice to elect the defined benefit program or the
27 Public Employee Optional Retirement Program, the employee
28 shall have one opportunity, at the employee's discretion, to
29 choose to move from the defined benefit program to the Public
30 Employee Optional Retirement Program or from the Public
31 Employee Optional Retirement Program to the defined benefit
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1 program. This paragraph shall be contingent upon approval from
2 the Internal Revenue Service for including the choice
3 described herein within the programs offered by the Florida
4 Retirement System.
5 1. If the employee chooses to move to the Public
6 Employee Optional Retirement Program, the applicable
7 provisions of this section shall govern the transfer.
8 2. If the employee chooses to move to the defined
9 benefit program, the employee must transfer from his or her
10 Public Employee Optional Retirement Program account and from
11 other employee moneys as necessary, a sum representing the
12 present value of that employee's accumulated benefit
13 obligation immediately following the time of such movement,
14 determined assuming that attained service equals the sum of
15 service in the defined benefit program and service in the
16 Public Employee Optional Retirement Program all contributions
17 that would have been made to the defined benefit plan for that
18 employee and the actual return that would have been earned on
19 those contributions had they been invested in the defined
20 benefit program. Benefit commencement occurs on the first date
21 the employee would become eligible for unreduced benefits,
22 using the discount rate and other relevant actuarial
23 assumptions that were used to value the Florida Retirement
24 System defined benefit plan liabilities in the most recent
25 actuarial valuation. For any employee who, at the time of the
26 second election, already maintains an accrued benefit amount
27 in the defined benefit plan, the then-present value of such
28 accrued benefit shall be deemed part of the required transfer
29 amount described in this subparagraph. The division shall
30 ensure that the transfer sum is prepared using a formula and
31 methodology certified by an enrolled actuary.
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1 3. Notwithstanding subparagraph 2., an employee who
2 chooses to move to the defined benefit program and who became
3 eligible to participate in the Public Employee Optional
4 Retirement Program by reason of employment in a regularly
5 established position with a state employer after June 1, 2002;
6 a district school board employer after September 1, 2002; or a
7 local employer after December 1, 2002, must transfer from his
8 or her Public Employee Optional Retirement Program account
9 and, from other employee moneys as necessary, a sum
10 representing that employee's actuarial accrued liability.
11 4. Employees' ability to transfer from the Florida
12 Retirement System defined benefit program to the Public
13 Employee Optional Retirement Program pursuant to paragraphs
14 (a) through (d), and the ability for current employees to have
15 an option to later transfer back into the defined benefit
16 program under subparagraph 2., shall be deemed a significant
17 system amendment. Pursuant to s. 121.031(4), any such
18 resulting unfunded liability arising from actual original
19 transfers from the defined benefit program to the optional
20 program shall be amortized within 30 plan years as a separate
21 unfunded actuarial base independent of the reserve
22 stabilization mechanism defined in s. 121.031(3)(f). For the
23 first 25 years, no direct amortization payment shall be
24 calculated for this base. During this 25-year period, such
25 separate base shall be used to offset the impact of employees
26 exercising their second program election under this paragraph.
27 It is the legislative intent that the actuarial funded status
28 of the Florida Retirement System defined benefit plan is
29 neither beneficially nor adversely impacted by such second
30 program elections in any significant manner, after due
31 recognition of the separate unfunded actuarial base. Following
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1 this initial 25-year period, any remaining balance of the
2 original separate base shall be amortized over the remaining 5
3 years of the required 30-year amortization period.
4 (8) ADMINISTRATION OF PROGRAM.--
5 (b)1. The state board shall select and contract with
6 one third-party administrator to provide administrative
7 services if those services cannot be competitively and
8 contractually provided by the Division of Retirement within
9 the Department of Management Services. With the approval of
10 the state board, the third-party administrator may subcontract
11 with other organizations or individuals to provide components
12 of the administrative services. As a cost of administration,
13 the board may compensate any such contractor for its services,
14 in accordance with the terms of the contract, as is deemed
15 necessary or proper by the board. The third-party
16 administrator may not be an approved provider or be affiliated
17 with an approved provider.
18 2. These administrative services may include, but are
19 not limited to, enrollment of eligible employees, collection
20 of employer contributions, disbursement of such contributions
21 to approved providers in accordance with the allocation
22 directions of participants; services relating to consolidated
23 billing; individual and collective recordkeeping and
24 accounting; asset purchase, control, and safekeeping; and
25 direct disbursement of funds to and from the third-party
26 administrator, the division, the board, employers,
27 participants, approved providers, and beneficiaries. This
28 section does not prevent or prohibit a bundled provider from
29 providing any administrative or customer service, including
30 accounting and administration of individual participant
31 benefits and contributions; individual participant
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1 recordkeeping; asset purchase, control, and safekeeping;
2 direct execution of the participant's instructions as to asset
3 and contribution allocation; calculation of daily net asset
4 values; direct access to participant account information; or
5 periodic reporting to participants, at least quarterly, on
6 account balances and transactions, if these services are
7 authorized by the board as part of the contract.
8 3. The state board shall select and contract with one
9 or more organizations to provide educational services. With
10 approval of the board, the organizations may subcontract with
11 other organizations or individuals to provide components of
12 the educational services. As a cost of administration, the
13 board may compensate any such contractor for its services in
14 accordance with the terms of the contract, as is deemed
15 necessary or proper by the board. The education organization
16 may not be an approved provider or be affiliated with an
17 approved provider.
18 4. Educational services shall be designed by the board
19 and department to assist employers, eligible employees,
20 participants, and beneficiaries in order to maintain
21 compliance with United States Department of Labor regulations
22 under s. 404(c) of the Employee Retirement Income Security Act
23 of 1974 and to assist employees in their choice of defined
24 benefit or defined contribution retirement alternatives.
25 Educational services include, but are not limited to,
26 disseminating educational materials; providing retirement
27 planning education; explaining the differences between the
28 defined benefit retirement plan and the defined contribution
29 retirement plan; and offering financial planning guidance on
30 matters such as investment diversification, investment risks,
31 investment costs, and asset allocation. An approved provider
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1 may also provide educational information, including retirement
2 planning and investment allocation information concerning its
3 products and services.
4 (9) INVESTMENT OPTIONS OR PRODUCTS; PERFORMANCE
5 REVIEW.--
6 (a) The board shall develop policy and procedures for
7 selecting, evaluating, and monitoring the performance of
8 approved providers and investment products to which employees
9 may direct retirement contributions under the program. In
10 accordance with such policy and procedures, the board shall
11 designate and contract for a number of investment products as
12 determined by the board. The board shall also select one or
13 more bundled providers each of whom may offer multiple who
14 offer multiple investment options and related services
15 products when such an approach is determined by the board to
16 afford value to the participants otherwise not available
17 through individual investment products. Each approved bundled
18 provider may offer investment options that provide
19 participants with the opportunity to invest in each of the
20 following asset classes, to be composed of individual options
21 that represent either a single asset class or a combination
22 thereof: money markets, United States fixed income, United
23 States equities, and foreign stock. The board shall review and
24 manage all educational materials, contract terms, fee
25 schedules, and other aspects of the approved provider
26 relationships to ensure that no provider is unduly favored or
27 penalized by virtue of its status within the plan.
28 (b) The board shall consider investment options or
29 products it considers appropriate to give participants the
30 opportunity to accumulate retirement benefits, subject to the
31 following:
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1 1. The Public Employee Optional Retirement Program
2 must offer a diversified mix of low-cost investment products
3 that span the risk-return spectrum and may include a
4 guaranteed account as well as investment products, such as
5 individually allocated guaranteed and variable annuities,
6 which meet the requirements of this subsection and combine the
7 ability to accumulate investment returns with the option of
8 receiving lifetime income consistent with the long-term
9 retirement security of a pension plan and similar to the
10 lifetime-income benefit provided by the Florida Retirement
11 System.
12 2. Investment options or products offered by the group
13 of approved providers may include mutual funds, group annuity
14 contracts, individual retirement annuities, interests in
15 trusts, collective trusts, separate accounts, and other such
16 financial instruments, and may include products that give
17 participants the option of committing their contributions for
18 an extended time period in an effort to obtain returns higher
19 than those that could be obtained from investment products
20 offering full liquidity.
21 3. The board shall not contract with any provider that
22 imposes a front-end, back-end, contingent, or deferred sales
23 charge, or any other fee that limits or restricts the ability
24 of participants to select any investment product available in
25 the optional program. This prohibition does not apply to fees
26 or charges that are imposed on withdrawals from products that
27 give participants the option of committing their contributions
28 for an extended time period in an effort to obtain returns
29 higher than those that could be obtained from investment
30 products offering full liquidity, provided that the product in
31 question, net of all fees and charges, produces material
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1 benefits relative to other comparable products in the program
2 offering full liquidity.
3 4. Fees or charges for insurance features, such as
4 mortality and expense-risk charges, must be reasonable
5 relative to the benefits provided.
6 (f)1. An approved provider shall comply with all
7 federal and state securities and insurance laws and
8 regulations applicable to the provider, as well as the
9 applicable rules and guidelines of the National Association of
10 Securities Dealers which govern the ethical marketing of
11 investment products. In furtherance of this mandate, an
12 approved provider must agree in its contract with the board to
13 establish and maintain a compliance education and monitoring
14 system to supervise the activities of all personnel who
15 directly communicate with individual participants and
16 recommend investment products, which system is consistent with
17 rules of the National Association of Securities Dealers.
18 2. Approved provider personnel who directly
19 communicate with individual participants and who recommend
20 investment products shall make an independent and unbiased
21 determination as to whether an investment product is suitable
22 for a particular participant.
23 3. The board shall develop procedures to receive and
24 resolve participant complaints against a provider or approved
25 provider personnel, and, when appropriate, refer such
26 complaints to the appropriate agency.
27 4. Approved providers may not sell or in any way
28 distribute any customer list or participant identification
29 information generated through their offering of products or
30 services through the optional retirement program.
31 Section 8. Subsection (9) is added to section
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1 121.0515, Florida Statutes, to read:
2 121.0515 Special risk membership.--
3 (9) CREDIT FOR UPGRADED SERVICE.--Any member of the
4 Special Risk Class who has earned creditable service in
5 another membership class of the Florida Retirement System as
6 an emergency medical technician or paramedic, which service is
7 within the purview of the Special Risk Class, may purchase
8 additional retirement credit to upgrade such service to
9 Special Risk Class service, to the extent of the percentages
10 of the member's average final compensation provided in s.
11 121.091(1)(a)2. Contributions for upgrading such service to
12 Special Risk Class credit under this subsection shall be equal
13 to the difference in the contributions paid and the Special
14 Risk Class contribution rate as a percentage of gross salary
15 in effect for the period being claimed, plus interest thereon
16 at the rate of 6.5 percent a year, compounded annually until
17 the date of payment. This service credit may be purchased by
18 the employer on behalf of the member.
19 Section 9. It is the intent of the Legislature that
20 any additional cost attributable to the upgrade in the
21 retirement benefits for emergency medical technicians and
22 paramedics above the contributions paid in accordance with
23 section 4 of this act shall be funded by recognition of the
24 necessary amount from the excess actuarial assets of the
25 Florida Retirement System Trust Fund.
26 Section 10. Paragraph (e) of subsection (3) of section
27 121.052, Florida Statutes, is amended to read:
28 121.052 Membership class of elected officers.--
29 (3) PARTICIPATION AND WITHDRAWAL,
30 GENERALLY.--Effective July 1, 1990, participation in the
31 Elected Officers' Class shall be compulsory for elected
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1 officers listed in paragraphs (2)(a)-(d) and (f) assuming
2 office on or after said date, unless the elected officer
3 elects membership in another class or withdraws from the
4 Florida Retirement System as provided in paragraphs
5 (3)(a)-(d):
6 (e) Effective July 1, 2001 1997, the governing body of
7 a municipality or special district may, by majority vote,
8 elect to designate all its elected positions for inclusion in
9 the Elected Officers' Class. Such election shall be made
10 between July 1, 2001 1997, and December 31, 2001 1997, and
11 shall be irrevocable. The designation of such positions shall
12 be effective the first day of the month following receipt by
13 the department of the ordinance or resolution passed by the
14 governing body.
15
16 (Redesignate subsequent sections.)
17
18
19 ================ T I T L E A M E N D M E N T ===============
20 And the title is amended as follows:
21 On page 1, lines 24-26, delete those lines
22
23 and insert:
24 amending s. 122.0515, F.S., relating to special
25 risk membership; revising criteria for members
26 employed as firefighters, emergency medical
27 technicians, or paramedics; adding specified
28 classes of members employed within a
29 correctional or forensic facility or
30 institution; amending s. 121.055, F.S.,
31 relating to the Senior Management Service
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1 Class; requiring participation in the class by
2 assistant attorneys general; amending s.
3 121.4501, F.S.; redefining the term "approved
4 provider" for purposes of the Public Employee
5 Optional Retirement Program; revising
6 requirements for transferring a member's
7 optional program account to the defined benefit
8 plan; providing for amortization of any
9 unfunded liability; providing requirements for
10 the State Board of Administration in
11 administering the program; revising
12 requirements for the board in selecting
13 providers of investment products; requiring
14 that providers comply with federal and state
15 securities and insurance laws and rules
16 governing the ethical marketing of investment
17 products; requiring that the board develop
18 procedures for resolving complaints of
19 participants; prohibiting providers from
20 selling or distributing customer lists
21 generated through the optional retirement
22 program; amending s. 121.0515, F.S.; allowing
23 certain Special Risk Class members of the
24 Florida Retirement System to purchase
25 additional retirement credit; providing for
26 funding; amending s. 121.052, F.S.; providing a
27 period in which municipalities and special
28 districts may designate elected positions for
29 inclusion in the Elected Officers' Class;
30
31
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