Florida Senate - 2012 COMMITTEE AMENDMENT
Bill No. CS for SB 2024
Barcode 833344
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
02/28/2012 .
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The Committee on Budget (Richter) recommended the following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Section 121.012, Florida Statutes, is created to
6 read:
7 121.012 Inclusive provisions.—The provisions of part I of
8 this chapter shall be applicable to parts II and III to the
9 extent such provisions are not inconsistent with, or duplicative
10 of, the provisions of parts II and III.
11 Section 2. Subsection (29) and paragraph (b) of subsection
12 (45) of section 121.021, Florida Statutes, are amended to read:
13 121.021 Definitions.—The following words and phrases as
14 used in this chapter have the respective meanings set forth
15 unless a different meaning is plainly required by the context:
16 (29) “Normal retirement date” means the date a member
17 attains normal retirement age and is vested, which is determined
18 as follows:
19 (a)1. If a Regular Class member, a Senior Management
20 Service Class member, or an Elected Officers’ Class member
21 initially enrolled:
22 1. Before July 1, 2011:
23 a. The first day of the month the member attains age 62; or
24 b. The first day of the month following the date the member
25 completes 30 years of creditable service, regardless of age.
26 2. If a Regular Class member, a Senior Management Service
27 Class member, or an Elected Officers’ Class member initially
28 enrolled On or after July 1, 2011:
29 a. The first day of the month the member attains age 65; or
30 b. The first day of the month following the date the member
31 completes 33 years of creditable service, regardless of age.
32 (b)1. If a Special Risk Class member initially enrolled:
33 1. Before July 1, 2011:
34 a. The first day of the month the member attains age 55 and
35 completes the years of creditable service in the Special Risk
36 Class equal to or greater than the years of service required for
37 vesting;
38 b. The first day of the month following the date the member
39 completes 25 years of creditable service in the Special Risk
40 Class, regardless of age; or
41 c. The first day of the month following the date the member
42 completes 25 years of creditable service and attains age 52,
43 which service may include a maximum of 4 years of military
44 service credit if such credit is not claimed under any other
45 system and the remaining years are in the Special Risk Class.
46 2. If a Special Risk Class member initially enrolled On or
47 after July 1, 2011:
48 a. The first day of the month the member attains age 60 and
49 completes the years of creditable service in the Special Risk
50 Class equal to or greater than the years of service required for
51 vesting;
52 b. The first day of the month following the date the member
53 completes 30 years of creditable service in the Special Risk
54 Class, regardless of age; or
55 c. The first day of the month following the date the member
56 completes 30 years of creditable service and attains age 57,
57 which service may include a maximum of 4 years of military
58 service credit if such credit is not claimed under any other
59 system and the remaining years are in the Special Risk Class.
60
61 For pension plan members, “normal retirement age” is attained on
62 the “normal retirement date.” For investment plan members,
63 normal retirement age is the date a member attains his or her
64 normal retirement date as provided in this section, or the date
65 a member is vested under the investment plan as provided in s.
66 121.4501(6), whichever is later.
67 (45) “Vested” or “vesting” means the guarantee that a
68 member is eligible to receive a future retirement benefit upon
69 completion of the required years of creditable service for the
70 employee’s class of membership, even though the member may have
71 terminated covered employment before reaching normal or early
72 retirement date. Being vested does not entitle a member to a
73 disability benefit. Provisions governing entitlement to
74 disability benefits are set forth under s. 121.091(4).
75 (b) Any member initially enrolled in the Florida Retirement
76 System on or after July 1, 2011, shall be vested in the pension
77 plan upon completion of 8 years of creditable service.
78 Section 3. Paragraph (k) of subsection (3) of section
79 121.0515, Florida Statutes, is amended to read:
80 121.0515 Special Risk Class.—
81 (3) CRITERIA.—A member, to be designated as a special risk
82 member, must meet the following criteria:
83 (k) The member must have already qualified for and be
84 actively participating in special risk membership under
85 paragraph (a), paragraph (b), or paragraph (c), must have
86 suffered a qualifying injury as defined in this paragraph, must
87 not be receiving disability retirement benefits as provided in
88 s. 121.091(4), and must satisfy the requirements of this
89 paragraph.
90 1. The ability to qualify for the class of membership
91 defined in paragraph (2)(i) (2)(f) occurs when two licensed
92 medical physicians, one of whom is a primary treating physician
93 of the member, certify the existence of the physical injury and
94 medical condition that constitute a qualifying injury as defined
95 in this paragraph and that the member has reached maximum
96 medical improvement after August 1, 2008. The certifications
97 from the licensed medical physicians must include, at a minimum,
98 that the injury to the special risk member has resulted in a
99 physical loss, or loss of use, of at least two of the following:
100 left arm, right arm, left leg, or right leg; and:
101 a. That this physical loss or loss of use is total and
102 permanent, except in the event that the loss of use is due to a
103 physical injury to the member’s brain, in which event the loss
104 of use is permanent with at least 75 percent loss of motor
105 function with respect to each arm or leg affected.
106 b. That this physical loss or loss of use renders the
107 member physically unable to perform the essential job functions
108 of his or her special risk position.
109 c. That, notwithstanding this physical loss or loss of use,
110 the individual is able to perform the essential job functions
111 required by the member’s new position, as provided in
112 subparagraph 3.
113 d. That use of artificial limbs is either not possible or
114 does not alter the member’s ability to perform the essential job
115 functions of the member’s position.
116 e. That the physical loss or loss of use is a direct result
117 of a physical injury and not a result of any mental,
118 psychological, or emotional injury.
119 2. For the purposes of this paragraph, “qualifying injury”
120 means an injury sustained in the line of duty, as certified by
121 the member’s employing agency, by a special risk member that
122 does not result in total and permanent disability as defined in
123 s. 121.091(4)(b). An injury is a qualifying injury if the injury
124 is a physical injury to the member’s physical body resulting in
125 a physical loss, or loss of use, of at least two of the
126 following: left arm, right arm, left leg, or right leg.
127 Notwithstanding any other provision of this section, an injury
128 that would otherwise qualify as a qualifying injury is not
129 considered a qualifying injury if and when the member ceases
130 employment with the employer for whom he or she was providing
131 special risk services on the date the injury occurred.
132 3. The new position, as described in sub-subparagraph 1.c.,
133 that is required for qualification as a special risk member
134 under this paragraph is not required to be a position with
135 essential job functions that entitle an individual to special
136 risk membership. Whether a new position as described in sub
137 subparagraph 1.c. exists and is available to the special risk
138 member is a decision to be made solely by the employer in
139 accordance with its hiring practices and applicable law.
140 4. This paragraph does not grant or create additional
141 rights for any individual to continued employment or to be hired
142 or rehired by his or her employer that are not already provided
143 within the Florida Statutes, the State Constitution, the
144 Americans with Disabilities Act, if applicable, or any other
145 applicable state or federal law.
146 Section 4. Paragraph (f) of subsection (1) and paragraph
147 (e) of subsection (6) of section 121.055, Florida Statutes, are
148 amended to read:
149 121.055 Senior Management Service Class.—There is hereby
150 established a separate class of membership within the Florida
151 Retirement System to be known as the “Senior Management Service
152 Class,” which shall become effective February 1, 1987.
153 (1)
154 (f) Effective July 1, 1997:
155 1. Except as provided in subparagraph 3., an elected state
156 officer eligible for membership in the Elected Officers’ Class
157 under s. 121.052(2)(a), (b), or (c) who elects membership in the
158 Senior Management Service Class under s. 121.052(3)(c) may,
159 within 6 months after assuming office or within 6 months after
160 this act becomes a law for serving elected state officers, elect
161 to participate in the Senior Management Service Optional Annuity
162 Program, as provided in subsection (6), in lieu of membership in
163 the Senior Management Service Class.
164 2. Except as provided in subparagraph 3., an elected
165 officer of a local agency employer eligible for membership in
166 the Elected Officers’ Class under s. 121.052(2)(d) who elects
167 membership in the Senior Management Service Class under s.
168 121.052(3)(c) may, within 6 months after assuming office, or
169 within 6 months after this act becomes a law for serving elected
170 officers of a local agency employer, elect to withdraw from the
171 Florida Retirement System, as provided in subparagraph (b)2., in
172 lieu of membership in the Senior Management Service Class.
173 3. A retiree of a state-administered retirement system who
174 is initially reemployed in a regularly established position on
175 or after July 1, 2010, as an elected official eligible for the
176 Elected Officers’ Class may not be enrolled in renewed renew
177 membership in the Senior Management Service Class or in the
178 Senior Management Service Optional Annuity Program as provided
179 in subsection (6), and may not withdraw from the Florida
180 Retirement System as a renewed member as provided in
181 subparagraph (b)2., as applicable, in lieu of membership in the
182 Senior Management Service Class.
183 (6)
184 (e) Benefits.—
185 1. Benefits under the Senior Management Service Optional
186 Annuity Program are payable only to members of the program, or
187 their beneficiaries as designated by the member in the contract
188 with the provider company, and must be paid by the designated
189 company in accordance with the terms of the annuity contract
190 applicable to the member. A member must be terminated from all
191 employment relationships with Florida Retirement System
192 employers for 3 calendar months to begin receiving the employer
193 funded and employee-funded benefit. The department may authorize
194 a distribution of up to 10 percent of the member’s account after
195 being terminated from employment with all participating
196 employers for 1 calendar month if the member has reached the
197 normal retirement date as defined in s. 121.021. The department
198 may adopt rules to implement this subparagraph. The member must
199 meet the definition of termination in s. 121.021(39) beginning
200 the month after receiving a benefit, including a distribution.
201 Benefits funded by employer and employee contributions are
202 payable under the terms of the contract to the member, his or
203 her beneficiary, or his or her estate, in addition to:
204 a. A lump-sum payment to the beneficiary upon the death of
205 the member;
206 b. A cash-out of a de minimis account upon the request of a
207 former member who has been terminated for a minimum of 6
208 calendar months from the employment that entitled him or her to
209 optional annuity program participation. Such cash-out must be a
210 complete liquidation of the account balance with that company
211 and is subject to the Internal Revenue Code;
212 c. A mandatory distribution of a de minimis account of a
213 former member who has been terminated for a minimum of 6
214 calendar months from the employment that entitled him or her to
215 optional annuity program participation as authorized by the
216 department; or
217 d. A lump-sum direct rollover distribution whereby all
218 accrued benefits, plus interest and investment earnings, are
219 paid from the member’s account directly to the custodian of an
220 eligible retirement plan, as defined in s. 402(c)(8)(B) of the
221 Internal Revenue Code, on behalf of the member.
222 2. Under the Senior Management Service Optional Annuity
223 Program, benefits, including employee contributions, are not
224 payable for employee hardships, unforeseeable emergencies,
225 loans, medical expenses, educational expenses, purchase of a
226 principal residence, payments necessary to prevent eviction or
227 foreclosure on an employee’s principal residence, or any other
228 reason except a requested distribution for retirement, a
229 mandatory de minimis distribution authorized by the
230 administrator, or a required minimum distribution provided
231 pursuant to the Internal Revenue Code before termination from
232 all employment relationships with participating employers for 3
233 calendar months.
234 3. The benefits payable to any person under the Senior
235 Management Service Optional Annuity Program, and any
236 contribution accumulated under such program, are not subject to
237 assignment, execution, or attachment or to any legal process
238 whatsoever.
239 4. Except as provided in subparagraph 5., a member who
240 terminates employment and receives a distribution, including a
241 rollover or trustee-to-trustee transfer, funded by employer and
242 required employee contributions is a retiree of deemed to be
243 retired from a state-administered retirement system. A retiree
244 of a state-administered retirement system who is initially
245 reemployed in a regularly established position on or after July
246 1, 2010, is not eligible to be enrolled in renewed membership if
247 the member is subsequently employed with an employer that
248 participates in the Florida Retirement System.
249 5. A member who receives optional annuity program benefits
250 funded by employer and employee contributions as a mandatory
251 distribution of a de minimis account authorized by the
252 department is not considered a retiree.
253
254 As used in this paragraph, a “de minimis account” means an
255 account with a provider company containing employer and employee
256 contributions and accumulated earnings of not more than $5,000
257 made under this chapter.
258 Section 5. Subsection (7) of section 121.071, Florida
259 Statutes, is amended to read:
260 121.071 Contributions.—Contributions to the system shall be
261 made as follows:
262 (7) Before termination of employment, Benefits, including
263 employee contributions, are not payable under the pension plan
264 for employee hardships, unforeseeable emergencies, loans,
265 medical expenses, educational expenses, purchase of a principal
266 residence, payments necessary to prevent eviction or foreclosure
267 on an employee’s principal residence, or any other reason except
268 a requested distribution for retirement, a mandatory de minimis
269 distribution authorized by the administrator, or a required
270 minimum distribution provided pursuant to the Internal Revenue
271 Code before termination from all employment relationships with
272 participating employers.
273 Section 6. Paragraph (a) of subsection (13) of section
274 121.091, Florida Statutes, is amended to read:
275 121.091 Benefits payable under the system.—Benefits may not
276 be paid under this section unless the member has terminated
277 employment as provided in s. 121.021(39)(a) or begun
278 participation in the Deferred Retirement Option Program as
279 provided in subsection (13), and a proper application has been
280 filed in the manner prescribed by the department. The department
281 may cancel an application for retirement benefits when the
282 member or beneficiary fails to timely provide the information
283 and documents required by this chapter and the department’s
284 rules. The department shall adopt rules establishing procedures
285 for application for retirement benefits and for the cancellation
286 of such application when the required information or documents
287 are not received.
288 (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
289 subject to this section, the Deferred Retirement Option Program,
290 hereinafter referred to as DROP, is a program under which an
291 eligible member of the Florida Retirement System may elect to
292 participate, deferring receipt of retirement benefits while
293 continuing employment with his or her Florida Retirement System
294 employer. The deferred monthly benefits shall accrue in the
295 Florida Retirement System on behalf of the member, plus interest
296 compounded monthly, for the specified period of the DROP
297 participation, as provided in paragraph (c). Upon termination of
298 employment, the member shall receive the total DROP benefits and
299 begin to receive the previously determined normal retirement
300 benefits. Participation in the DROP does not guarantee
301 employment for the specified period of DROP. Participation in
302 DROP by an eligible member beyond the initial 60-month period as
303 authorized in this subsection shall be on an annual contractual
304 basis for all participants.
305 (a) Eligibility of member to participate in DROP.—All
306 active Florida Retirement System members in a regularly
307 established position, and all active members of the Teachers’
308 Retirement System established in chapter 238 or the State and
309 County Officers’ and Employees’ Retirement System established in
310 chapter 122, which are consolidated within the Florida
311 Retirement System under s. 121.011, are eligible to elect
312 participation in DROP if:
313 1. The member is not a renewed member under s. 121.122 or a
314 member of the State Community College System Optional Retirement
315 Program under s. 121.051, the Senior Management Service Optional
316 Annuity Program under s. 121.055, or the optional retirement
317 program for the State University System under s. 121.35.
318 2. Except as provided in subparagraph 6., for members
319 initially enrolled before July 1, 2011, election to participate
320 is made within 12 months immediately following the date on which
321 the member first reaches normal retirement date, or, for a
322 member who reaches normal retirement date based on service
323 before he or she reaches age 62, or age 55 for Special Risk
324 Class members, election to participate may be deferred to the 12
325 months immediately following the date the member attains age 57,
326 or age 52 for Special Risk Class members. Except as provided in
327 subparagraph 6., for members initially enrolled on or after July
328 1, 2011, election to participate is made within 12 months
329 immediately following the date on which the member first reaches
330 normal retirement date, or, for a member who reaches normal
331 retirement date based on service before he or she reaches age
332 65, or age 60 for Special Risk Class members, election to
333 participate may be deferred to the 12 months immediately
334 following the date the member attains age 60, or age 55 for
335 Special Risk Class members. A member who delays DROP
336 participation during the 12-month period immediately following
337 his or her maximum DROP deferral date, except as provided in
338 subparagraph 6., loses a month of DROP participation for each
339 month delayed. A member who fails to make an election within the
340 12-month limitation period forfeits all rights to participate in
341 DROP. The member shall advise his or her employer and the
342 division in writing of the date DROP begins. The beginning date
343 may be subsequent to the 12-month election period but must be
344 within the original 60-month participation period provided in
345 subparagraph (b)1. When establishing eligibility to participate
346 in DROP, the member may elect to include or exclude any optional
347 service credit purchased by the member from the total service
348 used to establish the normal retirement date. A member who has
349 dual normal retirement dates is eligible to elect to participate
350 in DROP after attaining normal retirement date in either class.
351 3. The employer of a member electing to participate in
352 DROP, or employers if dually employed, shall acknowledge in
353 writing to the division the date the member’s participation in
354 DROP begins and the date the member’s employment and DROP
355 participation terminates.
356 4. Simultaneous employment of a member by additional
357 Florida Retirement System employers subsequent to the
358 commencement of a member’s participation in DROP is permissible
359 if such employers acknowledge in writing a DROP termination date
360 no later than the member’s existing termination date or the
361 maximum participation period provided in subparagraph (b)1.
362 5. A member may change employers while participating in
363 DROP, subject to the following:
364 a. A change of employment takes place without a break in
365 service so that the member receives salary for each month of
366 continuous DROP participation. If a member receives no salary
367 during a month, DROP participation ceases unless the employer
368 verifies a continuation of the employment relationship for such
369 member pursuant to s. 121.021(39)(b).
370 b. The member and new employer notify the division of the
371 identity of the new employer on forms required by the division.
372 c. The new employer acknowledges, in writing, the member’s
373 DROP termination date, which may be extended but not beyond the
374 maximum participation period provided in subparagraph (b)1.,
375 acknowledges liability for any additional retirement
376 contributions and interest required if the member fails to
377 timely terminate employment, and is subject to the adjustment
378 required in sub-subparagraph (c)5.d.
379 6. Effective July 1, 2001, for instructional personnel as
380 defined in s. 1012.01(2), election to participate in DROP may be
381 made at any time following the date on which the member first
382 reaches normal retirement date. The member shall advise his or
383 her employer and the division in writing of the date on which
384 DROP begins. When establishing eligibility of the member to
385 participate in DROP for the 60-month participation period
386 provided in subparagraph (b)1., the member may elect to include
387 or exclude any optional service credit purchased by the member
388 from the total service used to establish the normal retirement
389 date. A member who has dual normal retirement dates is eligible
390 to elect to participate in either class.
391 Section 7. Subsection (2) of section 121.122, Florida
392 Statutes, is amended to read:
393 121.122 Renewed membership in system.—
394 (2) A retiree of a state-administered retirement system who
395 is initially reemployed in a regularly established position on
396 or after July 1, 2010, may not be enrolled as a renewed member
397 is not eligible for renewed membership.
398 Section 8. Paragraphs (a), (b), and (g) of subsection (5)
399 of section 121.35, Florida Statutes, are amended to read:
400 121.35 Optional retirement program for the State University
401 System.—
402 (5) BENEFITS.—
403 (a) Benefits are payable under the optional retirement
404 program only to vested members participating in the program, or
405 their beneficiaries as designated by the member in the contract
406 with a provider company, and such benefits shall be paid only by
407 the designated company in accordance with s. 403(b) of the
408 Internal Revenue Code and the terms of the annuity contract or
409 investment contracts applicable to the member. A benefit under
410 the optional retirement program is a distribution requested by
411 the member or surviving beneficiary funded in part or in whole
412 by employer or required employee contributions, plus earnings,
413 and includes rolling a distribution over to another qualified
414 plan. Benefits accrue in individual accounts that are member
415 directed, portable, and funded by employer and employee
416 contributions and the earnings thereon. The member must be
417 terminated for 3 calendar months from all employment
418 relationships with all Florida Retirement System employers to
419 begin receiving the benefit. The department may authorize a
420 distribution of up to 10 percent of the member’s account after
421 being terminated from employment with all participating
422 employers for 1 calendar month if the member has reached the
423 normal retirement date as defined in s. 121.021. The department
424 may adopt rules to implement this paragraph. Benefits funded by
425 employer and required employee contributions are payable in
426 accordance with the following terms and conditions:
427 1. Benefits shall be paid only to a participating member,
428 to his or her beneficiaries, or to his or her estate, as
429 designated by the member.
430 2. Benefits shall be paid by the provider company or
431 companies in accordance with the law, the provisions of the
432 contract, and any applicable department rule or policy.
433 3. In the event of a member’s death, moneys accumulated by,
434 or on behalf of, the member, less withholding taxes remitted to
435 the Internal Revenue Service, if any, shall be distributed to
436 the member’s designated beneficiary or beneficiaries, or to the
437 member’s estate, as if the member retired on the date of death,
438 as provided in paragraph (d). No other death benefits are
439 available to survivors of members under the optional retirement
440 program except for such benefits, or coverage for such benefits,
441 as are separately afforded by the employer, at the employer’s
442 discretion.
443 (b) Benefits, including employee contributions, are not
444 payable for employee hardships, unforeseeable emergencies,
445 loans, medical expenses, educational expenses, purchase of a
446 principal residence, payments necessary to prevent eviction or
447 foreclosure on an employee’s principal residence, or any other
448 reason except a requested distribution for retirement, a
449 mandatory de minimis distribution authorized by the
450 administrator, or a required minimum distribution provided
451 pursuant to the Internal Revenue Code before termination from
452 all employment relationships with participating employers for 3
453 calendar months.
454 (g) Benefits funded by the participating member’s voluntary
455 personal contributions may be paid out after termination from
456 employment with all participating employers for 3 calendar
457 months at any time and in any form within the limits provided in
458 the contract between the member and the provider company. The
459 member shall notify the provider company regarding the date and
460 provisions under which he or she wants to receive the employee
461 funded portion of the plan.
462 Section 9. Paragraph (e) of subsection (2) and paragraph
463 (f) of subsection (4) of section 121.4501, Florida Statutes, are
464 amended to read:
465 121.4501 Florida Retirement System Investment Plan.—
466 (2) DEFINITIONS.—As used in this part, the term:
467 (e) “Eligible employee” means an officer or employee, as
468 defined in s. 121.021, who:
469 1. Is a member of, or is eligible for membership in, the
470 Florida Retirement System, including any renewed member of the
471 Florida Retirement System initially enrolled before July 1,
472 2010; or
473 2. Participates in, or is eligible to participate in, the
474 Senior Management Service Optional Annuity Program as
475 established under s. 121.055(6), the State Community College
476 System Optional Retirement Program as established under s.
477 121.051(2)(c), or the State University System Optional
478 Retirement Program established under s. 121.35.
479
480 The term does not include any member participating in the
481 Deferred Retirement Option Program established under s.
482 121.091(13), a retiree of a state-administered retirement system
483 initially reemployed in a regularly established position on or
484 after July 1, 2010, or a mandatory participant of the State
485 University System Optional Retirement Program established under
486 s. 121.35.
487 (4) PARTICIPATION; ENROLLMENT.—
488 (f) A member of the investment plan who takes a
489 distribution of any contributions from his or her investment
490 plan account is considered a retiree. A retiree who is initially
491 reemployed in a regularly established position on or after July
492 1, 2010, is not eligible to be enrolled in for renewed
493 membership.
494 Section 10. Section 121.591, Florida Statutes, is amended
495 to read:
496 121.591 Payment of benefits.—Benefits may not be paid under
497 the Florida Retirement System Investment Plan unless the member
498 has terminated employment as provided in s. 121.021(39)(a) or is
499 deceased and a proper application has been filed as prescribed
500 by the state board or the department. Before termination of
501 employment, Benefits, including employee contributions, are not
502 payable under the investment plan for employee hardships,
503 unforeseeable emergencies, loans, medical expenses, educational
504 expenses, purchase of a principal residence, payments necessary
505 to prevent eviction or foreclosure on an employee’s principal
506 residence, or any other reason except a requested distribution
507 for retirement, a mandatory de minimis distribution authorized
508 by the administrator, or a required minimum distribution
509 provided pursuant to the Internal Revenue Code prior to
510 termination from all employment relationships with participating
511 employers. The state board or department, as appropriate, may
512 cancel an application for retirement benefits if the member or
513 beneficiary fails to timely provide the information and
514 documents required by this chapter and the rules of the state
515 board and department. In accordance with their respective
516 responsibilities, the state board and the department shall adopt
517 rules establishing procedures for application for retirement
518 benefits and for the cancellation of such application if the
519 required information or documents are not received. The state
520 board and the department, as appropriate, are authorized to cash
521 out a de minimis account of a member who has been terminated
522 from Florida Retirement System covered employment for a minimum
523 of 6 calendar months. A de minimis account is an account
524 containing employer and employee contributions and accumulated
525 earnings of not more than $5,000 made under the provisions of
526 this chapter. Such cash-out must be a complete lump-sum
527 liquidation of the account balance, subject to the provisions of
528 the Internal Revenue Code, or a lump-sum direct rollover
529 distribution paid directly to the custodian of an eligible
530 retirement plan, as defined by the Internal Revenue Code, on
531 behalf of the member. Any nonvested accumulations and associated
532 service credit, including amounts transferred to the suspense
533 account of the Florida Retirement System Investment Plan Trust
534 Fund authorized under s. 121.4501(6), shall be forfeited upon
535 payment of any vested benefit to a member or beneficiary, except
536 for de minimis distributions or minimum required distributions
537 as provided under this section. If any financial instrument
538 issued for the payment of retirement benefits under this section
539 is not presented for payment within 180 days after the last day
540 of the month in which it was originally issued, the third-party
541 administrator or other duly authorized agent of the state board
542 shall cancel the instrument and credit the amount of the
543 instrument to the suspense account of the Florida Retirement
544 System Investment Plan Trust Fund authorized under s.
545 121.4501(6). Any amounts transferred to the suspense account are
546 payable upon a proper application, not to include earnings
547 thereon, as provided in this section, within 10 years after the
548 last day of the month in which the instrument was originally
549 issued, after which time such amounts and any earnings
550 attributable to employer contributions shall be forfeited. Any
551 forfeited amounts are assets of the trust fund and are not
552 subject to chapter 717.
553 (1) NORMAL BENEFITS.—Under the investment plan:
554 (a) Benefits in the form of vested accumulations as
555 described in s. 121.4501(6) are payable under this subsection in
556 accordance with the following terms and conditions:
557 1. Benefits are payable only to a member, an alternate
558 payee of a qualified domestic relations order, or a beneficiary.
559 2. Benefits shall be paid by the third-party administrator
560 or designated approved providers in accordance with the law, the
561 contracts, and any applicable board rule or policy.
562 3. The member must be terminated from all employment with
563 all Florida Retirement System employers, as provided in s.
564 121.021(39).
565 4. Benefit payments may not be made until the member has
566 been terminated for 3 calendar months, except that the state
567 board may authorize by rule for the distribution of up to 10
568 percent of the member’s account after being terminated for 1
569 calendar month if the member has reached the normal retirement
570 date as defined in s. 121.021.
571 5. If a member or former member of the Florida Retirement
572 System receives an invalid distribution, such person must either
573 repay the full amount within 90 days after receipt of final
574 notification by the state board or the third-party administrator
575 that the distribution was invalid, or, in lieu of repayment, the
576 member must terminate employment from all participating
577 employers. If such person fails to repay the full invalid
578 distribution within 90 days after receipt of final notification,
579 the person may be deemed retired from the investment plan by the
580 state board and is subject to s. 121.122. If such person is
581 deemed retired, any joint and several liability set out in s.
582 121.091(9)(d)2. is void, and the state board, the department, or
583 the employing agency is not liable for gains on payroll
584 contributions that have not been deposited to the person’s
585 account in the investment plan, pending resolution of the
586 invalid distribution. The member or former member who has been
587 deemed retired or who has been determined by the state board to
588 have taken an invalid distribution may appeal the agency
589 decision through the complaint process as provided under s.
590 121.4501(9)(g)3. As used in this subparagraph, the term “invalid
591 distribution” means any distribution from an account in the
592 investment plan which is taken in violation of this section, s.
593 121.091(9), or s. 121.4501.
594 (b) If a member elects to receive his or her benefits upon
595 termination of employment as defined in s. 121.021, the member
596 must submit a written application or an application by
597 electronic means to the third-party administrator indicating his
598 or her preferred distribution date and selecting an authorized
599 method of distribution as provided in paragraph (c). The member
600 may defer receipt of benefits until he or she chooses to make
601 such application, subject to federal requirements.
602 (c) Upon receipt by the third-party administrator of a
603 properly executed application for distribution of benefits, the
604 total accumulated benefit is payable to the member pro rata
605 across all Florida Retirement System benefit sources as:
606 1. A lump-sum or partial distribution to the member;
607 2. A lump-sum direct rollover distribution whereby all
608 accrued benefits, plus interest and investment earnings, are
609 paid from the member’s account directly to the custodian of an
610 eligible retirement plan, as defined in s. 402(c)(8)(B) of the
611 Internal Revenue Code, on behalf of the member; or
612 3. Periodic distributions, as authorized by the state
613 board.
614 (d) The distribution payment method selected by the member
615 or beneficiary, and the retirement of the member or beneficiary,
616 is final and irrevocable at the time a benefit distribution
617 payment is cashed, deposited, or transferred to another
618 financial institution. Any additional service that remains
619 unclaimed at retirement may not be claimed or purchased, and the
620 type of retirement may not be changed, except that if a member
621 recovers from a disability, the member may subsequently request
622 benefits under subsection (2).
623 (e) A member may not receive a distribution of employee
624 contributions if a pending qualified domestic relations order is
625 filed against the member’s investment plan account.
626 (2) DISABILITY RETIREMENT BENEFITS.—Benefits provided under
627 this subsection are payable in lieu of the benefits that would
628 otherwise be payable under the provisions of subsection (1).
629 Such benefits must be funded from employer contributions made
630 under s. 121.571, transferred employee contributions and funds
631 accumulated pursuant to paragraph (a), and interest and earnings
632 thereon.
633 (a) Transfer of funds.—To qualify to receive monthly
634 disability benefits under this subsection:
635 1. All moneys accumulated in the member’s account,
636 including vested and nonvested accumulations as described in s.
637 121.4501(6), must be transferred from such individual accounts
638 to the division for deposit in the disability account of the
639 Florida Retirement System Trust Fund. Such moneys must be
640 accounted for separately. Earnings must be credited on an annual
641 basis for amounts held in the disability accounts of the Florida
642 Retirement System Trust Fund based on actual earnings of the
643 trust fund.
644 2. If the member has retained retirement credit earned
645 under the pension plan as provided in s. 121.4501(3), a sum
646 representing the actuarial present value of such credit within
647 the Florida Retirement System Trust Fund shall be reassigned by
648 the division from the pension plan to the disability program as
649 implemented under this subsection and shall be deposited in the
650 disability account of the trust fund. Such moneys must be
651 accounted for separately.
652 (b) Disability retirement; entitlement.—
653 1. A member of the investment plan who becomes totally and
654 permanently disabled, as defined in paragraph (d), after
655 completing 8 years of creditable service, or a member who
656 becomes totally and permanently disabled in the line of duty
657 regardless of length of service, is entitled to a monthly
658 disability benefit.
659 2. In order for service to apply toward the 8 years of
660 creditable service required for regular disability benefits, or
661 toward the creditable service used in calculating a service
662 based benefit as provided under paragraph (g), the service must
663 be creditable service as described below:
664 a. The member’s period of service under the investment plan
665 shall be considered creditable service, except as provided in
666 subparagraph d.
667 b. If the member has elected to retain credit for service
668 under the pension plan as provided under s. 121.4501(3), all
669 such service shall be considered creditable service.
670 c. If the member elects to transfer to his or her member
671 accounts a sum representing the present value of his or her
672 retirement credit under the pension plan as provided under s.
673 121.4501(3), the period of service under the pension plan
674 represented in the present value amounts transferred shall be
675 considered creditable service, except as provided in
676 subparagraph d.
677 d. If a member has terminated employment and has taken
678 distribution of his or her funds as provided in subsection (1),
679 all creditable service represented by such distributed funds is
680 forfeited for purposes of this subsection.
681 (c) Disability retirement effective date.—The effective
682 retirement date for a member who applies and is approved for
683 disability retirement shall be established as provided under s.
684 121.091(4)(a)2. and 3.
685 (d) Total and permanent disability.—A member shall be
686 considered totally and permanently disabled if, in the opinion
687 of the division, he or she is prevented, by reason of a
688 medically determinable physical or mental impairment, from
689 rendering useful and efficient service as an officer or
690 employee.
691 (e) Proof of disability.— Before approving payment of any
692 disability retirement benefit, the division shall require proof
693 that the member is totally and permanently disabled as provided
694 under s. 121.091(4)(c).
695 (f) Disability retirement benefit.—Upon the disability
696 retirement of a member under this subsection, the member shall
697 receive a monthly benefit that begins accruing on the first day
698 of the month of disability retirement, as approved by the
699 division, and is payable on the last day of that month and each
700 month thereafter during his or her lifetime and continued
701 disability. All disability benefits must be paid out of the
702 disability account of the Florida Retirement System Trust Fund
703 established under this subsection.
704 (g) Computation of disability retirement benefit.—The
705 amount of each monthly payment must be calculated as provided
706 under s. 121.091(4)(f). Creditable service under both the
707 pension plan and the investment plan shall be applicable as
708 provided under paragraph (b).
709 (h) Reapplication.—A member whose initial application for
710 disability retirement is denied may reapply for disability
711 benefits as provided in s. 121.091(4)(g).
712 (i) Membership.—Upon approval of a member’s application for
713 disability benefits, the member shall be transferred to the
714 pension plan, effective upon his or her disability retirement
715 effective date.
716 (j) Option to cancel.—A member whose application for
717 disability benefits is approved may cancel the application if
718 the cancellation request is received by the division before a
719 disability retirement warrant has been deposited, cashed, or
720 received by direct deposit. Upon cancellation:
721 1. The member’s transfer to the pension plan under
722 paragraph (i) shall be nullified;
723 2. The member shall be retroactively reinstated in the
724 investment plan without hiatus;
725 3. All funds transferred to the Florida Retirement System
726 Trust Fund under paragraph (a) must be returned to the member
727 accounts from which the funds were drawn; and
728 4. The member may elect to receive the benefit payable
729 under subsection (1) in lieu of disability benefits.
730 (k) Recovery from disability.—
731 1. The division may require periodic reexaminations at the
732 expense of the disability program account of the Florida
733 Retirement System Trust Fund. Except as provided in subparagraph
734 2., all other matters relating to recovery from disability shall
735 be as provided under s. 121.091(4)(h).
736 2. Upon recovery from disability, the recipient of
737 disability retirement benefits under this subsection shall be a
738 compulsory member of the investment plan. The net difference
739 between the recipient’s original account balance transferred to
740 the Florida Retirement System Trust Fund, including earnings and
741 total disability benefits paid to such recipient, if any, shall
742 be determined as provided in sub-subparagraph a.
743 a. An amount equal to the total benefits paid shall be
744 subtracted from that portion of the transferred account balance
745 consisting of vested accumulations as described under s.
746 121.4501(6), if any, and an amount equal to the remainder of
747 benefit amounts paid, if any, shall be subtracted from any
748 remaining nonvested accumulations.
749 b. Amounts subtracted under sub-subparagraph a. must be
750 retained within the disability account of the Florida Retirement
751 System Trust Fund. Any remaining account balance shall be
752 transferred to the third-party administrator for disposition as
753 provided under sub-subparagraph c. or sub-subparagraph d., as
754 appropriate.
755 c. If the recipient returns to covered employment,
756 transferred amounts must be deposited in individual accounts
757 under the investment plan, as directed by the member. Vested and
758 nonvested amounts shall be accounted for separately as provided
759 in s. 121.4501(6).
760 d. If the recipient fails to return to covered employment
761 upon recovery from disability:
762 (I) Any remaining vested amount must be deposited in
763 individual accounts under the investment plan, as directed by
764 the member, and is payable as provided in subsection (1).
765 (II) Any remaining nonvested amount must be held in a
766 suspense account and is forfeitable after 5 years as provided in
767 s. 121.4501(6).
768 3. If present value was reassigned from the pension plan to
769 the disability program as provided under subparagraph (a)2., the
770 full present value amount must be returned to the defined
771 benefit account within the Florida Retirement System Trust Fund
772 and the member’s associated retirement credit under the pension
773 plan must be reinstated in full. Any benefit based upon such
774 credit must be calculated as provided in s. 121.091(4)(h)1.
775 (l) Nonadmissible causes of disability.—A member is not
776 entitled to a disability retirement benefit if the disability
777 results from any injury or disease as described in s.
778 121.091(4)(i).
779 (m) Disability retirement of justice or judge by order of
780 Supreme Court.—
781 1. If a member is a justice of the Supreme Court, judge of
782 a district court of appeal, circuit judge, or judge of a county
783 court who has served for the years equal to, or greater than,
784 the vesting requirement in s. 121.021(45) as an elected
785 constitutional judicial officer, including service as a judicial
786 officer in any court abolished pursuant to Art. V of the State
787 Constitution, and who is retired for disability pursuant to s.
788 12, Art. V of the State Constitution, the member’s Option 1
789 monthly disability benefit amount as provided in s.
790 121.091(6)(a)1. shall be two-thirds of his or her monthly
791 compensation as of the member’s disability retirement date. The
792 member may alternatively elect to receive an actuarially
793 adjusted disability retirement benefit under any other option as
794 provided in s. 121.091(6)(a) or to receive the normal benefit
795 payable under subsection (1).
796 2. If any justice or judge who is a member of the
797 investment plan is retired for disability pursuant to s. 12,
798 Art. V of the State Constitution and elects to receive a monthly
799 disability benefit under the provisions of this paragraph:
800 a. Any present value amount that was transferred to his or
801 her investment plan account and all employer and employee
802 contributions made to such account on his or her behalf, plus
803 interest and earnings thereon, must be transferred to and
804 deposited in the disability account of the Florida Retirement
805 System Trust Fund; and
806 b. The monthly disability benefits payable under this
807 paragraph shall be paid from the disability account of the
808 Florida Retirement System Trust Fund.
809 (n) Death of retiree or beneficiary.—Upon the death of a
810 disabled retiree or beneficiary of the retiree who is receiving
811 monthly disability benefits under this subsection, the monthly
812 benefits shall be paid through the last day of the month of
813 death and shall terminate, or be adjusted, if applicable, as of
814 that date in accordance with the optional form of benefit
815 selected at the time of retirement. The department may adopt
816 rules necessary to administer this paragraph.
817 (3) DEATH BENEFITS.—Under the Florida Retirement System
818 Investment Plan:
819 (a) Survivor benefits are payable in accordance with the
820 following terms and conditions:
821 1. To the extent vested, benefits are payable only to a
822 member’s beneficiary or beneficiaries as designated by the
823 member as provided in s. 121.4501(20).
824 2. Benefits shall be paid by the third-party administrator
825 or designated approved providers in accordance with the law, the
826 contracts, and any applicable state board rule or policy.
827 3. To receive benefits, the member must be deceased.
828 (b) In the event of a member’s death, all vested
829 accumulations as described in s. 121.4501(6), less withholding
830 taxes remitted to the Internal Revenue Service, shall be
831 distributed, as provided in paragraph (c) or as described in s.
832 121.4501(20), as if the member retired on the date of death. No
833 other death benefits are available for survivors of members,
834 except for benefits, or coverage for benefits, as are otherwise
835 provided by law or separately provided by the employer, at the
836 employer’s discretion.
837 (c) Upon receipt by the third-party administrator of a
838 properly executed application for distribution of benefits, the
839 total accumulated benefit is payable by the third-party
840 administrator to the member’s surviving beneficiary or
841 beneficiaries, as:
842 1. A lump-sum distribution payable to the beneficiary or
843 beneficiaries, or to the deceased member’s estate;
844 2. An eligible rollover distribution, if permitted, on
845 behalf of the surviving spouse of a deceased member, whereby all
846 accrued benefits, plus interest and investment earnings, are
847 paid from the deceased member’s account directly to the
848 custodian of an eligible retirement plan, as described in s.
849 402(c)(8)(B) of the Internal Revenue Code, on behalf of the
850 surviving spouse; or
851 3. A partial lump-sum payment whereby a portion of the
852 accrued benefit is paid to the deceased member’s surviving
853 spouse or other designated beneficiaries, less withholding taxes
854 remitted to the Internal Revenue Service, and the remaining
855 amount is transferred directly to the custodian of an eligible
856 retirement plan, if permitted, as described in s. 402(c)(8)(B)
857 of the Internal Revenue Code, on behalf of the surviving spouse.
858 The proportions must be specified by the member or the surviving
859 beneficiary.
860
861 This paragraph does not abrogate other applicable provisions of
862 state or federal law providing for payment of death benefits.
863 (4) LIMITATION ON LEGAL PROCESS.—The benefits payable to
864 any person under the Florida Retirement System Investment Plan,
865 and any contributions accumulated under the plan, are not
866 subject to assignment, execution, attachment, or any legal
867 process, except for qualified domestic relations orders by a
868 court of competent jurisdiction, income deduction orders as
869 provided in s. 61.1301, and federal income tax levies.
870 Section 11. Paragraph (b) of subsection (5) and subsection
871 (7) of section 1012.875, Florida Statutes, are amended to read:
872 1012.875 State Community College System Optional Retirement
873 Program.—Each Florida College System institution may implement
874 an optional retirement program, if such program is established
875 therefor pursuant to s. 1001.64(20), under which annuity or
876 other contracts providing retirement and death benefits may be
877 purchased by, and on behalf of, eligible employees who
878 participate in the program, in accordance with s. 403(b) of the
879 Internal Revenue Code. Except as otherwise provided herein, this
880 retirement program, which shall be known as the State Community
881 College System Optional Retirement Program, may be implemented
882 and administered only by an individual Florida College System
883 institution or by a consortium of Florida College System
884 institutions.
885 (5)
886 (b) Benefits are payable under the optional retirement
887 program to program participants or their beneficiaries and paid
888 only by the designated company in accordance with the terms of
889 the contracts applicable to the program participant. Benefits
890 shall accrue in individual accounts that are participant
891 directed, portable, and funded by employer and employee
892 contributions and the earnings thereon. Benefit payments may not
893 be made until the member has been terminated for 3 calendar
894 months, except the college may authorize a distribution of up to
895 10 percent of the member’s account after the member is
896 terminated from employment with all Florida Retirement System
897 participating employers for 1 calendar month if the member has
898 reached the normal retirement date as defined in s. 121.021. The
899 board of trustees for the college may adopt rules to implement
900 this paragraph. Benefits funded by employer and employee
901 contributions are payable in accordance with the following terms
902 and conditions:
903 1. Benefits shall be payable only to a participant, to his
904 or her beneficiaries, or to his or her estate, as designated by
905 the participant.
906 2. Benefits shall be paid by the provider company or
907 companies in accordance with the law, the provisions of the
908 contract, and any applicable employer rule or policy.
909 3. In the event of a participant’s death, moneys
910 accumulated by, or on behalf of, the participant, less
911 withholding taxes remitted to the Internal Revenue Service, if
912 any, shall be distributed to the participant’s designated
913 beneficiary or beneficiaries, or to the participant’s estate, as
914 if the participant retired on the date of death as provided in
915 paragraph (d). No other death benefits are available for
916 survivors of participants under the optional retirement program
917 except for such benefits, or coverage for such benefits, as are
918 separately afforded by the employer at the employer’s
919 discretion.
920 (7) Benefits, including employee contributions, are not
921 payable for employee hardships, unforeseeable emergencies,
922 loans, medical expenses, educational expenses, purchase of a
923 principal residence, payments necessary to prevent eviction or
924 foreclosure on an employee’s principal residence, or any other
925 reason except a requested distribution for retirement, a
926 mandatory de minimis distribution authorized by the
927 administrator, or a required minimum distribution provided
928 pursuant to the Internal Revenue Code before termination from
929 all employment relationships with participating employers for 3
930 calendar months.
931 Section 12. This act shall take effect July 1, 2012.
932
933 ================= T I T L E A M E N D M E N T ================
934 And the title is amended as follows:
935 Delete everything before the enacting clause
936 and insert:
937 A bill to be entitled
938 An act relating to state retirement; creating s.
939 121.012, F.S.; providing applicability; amending s.
940 121.021, F.S.; clarifying the definitions of the terms
941 “normal retirement date” and “vesting”; amending s.
942 121.0515, F.S.; correcting a cross-reference; amending
943 s. 121.055, F.S.; authorizing distributions to a
944 member who is terminated from employment for 1
945 calendar month if the member has reached the normal
946 retirement date; providing rulemaking authority to the
947 Department of Management Services; clarifying
948 provisions related to the prohibition of hardship
949 loans or payments; clarifying that a retiree who is
950 reemployed in a regularly established position after a
951 certain date may not be enrolled as a renewed member;
952 amending s. 121.071, F.S.; clarifying provisions
953 related to the prohibition of hardship loans or
954 payments; amending s. 121.091, F.S.; making conforming
955 changes to the Deferred Retirement Option Program
956 regarding deferral age; amending s. 121.122, F.S.;
957 clarifying that a retiree who is reemployed in a
958 regularly established position after a certain date
959 may not be enrolled as a renewed member; amending s.
960 121.35, F.S.; providing that a benefit for the
961 purposes of the optional retirement program for the
962 State University System includes a certain
963 distribution; authorizing distributions to a member
964 who is terminated from employment for 1 calendar month
965 if the member has reached the normal retirement date;
966 providing rulemaking authority to the Department of
967 Management Services; clarifying provisions related to
968 the prohibition of hardship loans or payments;
969 clarifying when voluntary contributions may be paid
970 out; amending s. 121.4501, F.S.; specifying that the
971 definition of the term “eligible employee” does not
972 include certain members reemployed in regularly
973 established positions; clarifying that a retiree who
974 is reemployed in a regularly established position
975 after a certain date may not be enrolled as a renewed
976 member; amending s. 121.591, F.S.; clarifying
977 provisions related to the prohibition of hardship
978 loans or payments; amending s. 1012.875, F.S.;
979 authorizing distributions to a member who is
980 terminated from employment for 1 calendar month if the
981 member has reached the normal retirement date;
982 providing rulemaking authority to the boards of
983 trustees for colleges; clarifying provisions related
984 to the prohibition of hardship loans or payments;
985 providing an effective date.