Florida Senate - 2012 COMMITTEE AMENDMENT
Bill No. SB 2024
Barcode 930296
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
01/26/2012 .
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The Committee on Governmental Oversight and Accountability
(Latvala) recommended the following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 46 - 461
4 and insert:
5 Section 1. Paragraph (b) of subsection (29) and paragraph
6 (b) of subsection (45) of section 121.021, Florida Statutes, are
7 amended, and paragraph (c) is added to subsection (45) of that
8 section, to read:
9 121.021 Definitions.—The following words and phrases as
10 used in this chapter have the respective meanings set forth
11 unless a different meaning is plainly required by the context:
12 (29) “Normal retirement date” means the date a member
13 attains normal retirement age and is vested, which is determined
14 as follows:
15 (b)1. If a Special Risk Class member initially enrolled:
16 1. Before July 1, 2011:
17 a. The first day of the month the member attains age 55 and
18 completes the years of creditable service in the Special Risk
19 Class equal to or greater than the years of service required for
20 vesting;
21 b. The first day of the month following the date the member
22 completes 25 years of creditable service in the Special Risk
23 Class, regardless of age; or
24 c. The first day of the month following the date the member
25 completes 25 years of creditable service and attains age 52,
26 which service may include a maximum of 4 years of military
27 service credit if such credit is not claimed under any other
28 system and the remaining years are in the Special Risk Class.
29 2. If a Special Risk Class member initially enrolled On or
30 after July 1, 2011, but before July 1, 2012:
31 a. The first day of the month the member attains age 60 and
32 completes the years of creditable service in the Special Risk
33 Class equal to or greater than the years of service required for
34 vesting;
35 b. The first day of the month following the date the member
36 completes 30 years of creditable service in the Special Risk
37 Class, regardless of age; or
38 c. The first day of the month following the date the member
39 completes 30 years of creditable service and attains age 57,
40 which service may include a maximum of 4 years of military
41 service credit if such credit is not claimed under any other
42 system and the remaining years are in the Special Risk Class.
43 3. On or after July 1, 2012:
44 a. The first day of the month the member attains age 55 and
45 completes the years of creditable service in the Special Risk
46 Class equal to or greater than the years of service required for
47 vesting;
48 b. The first day of the month the member attains age 48 and
49 completes 25 years of creditable service in the Special Risk
50 Class; or
51 c. The first day of the month following the date the member
52 completes 25 years of creditable service and attains age 52,
53 which service may include a maximum of 4 years of military
54 service credit if such credit is not claimed under any other
55 system and the remaining years are in the Special Risk Class.
56
57 “Normal retirement age” is attained on the “normal retirement
58 date.”
59 (45) “Vested” or “vesting” means the guarantee that a
60 member is eligible to receive a future retirement benefit upon
61 completion of the required years of creditable service for the
62 employee’s class of membership, even though the member may have
63 terminated covered employment before reaching normal or early
64 retirement date. Being vested does not entitle a member to a
65 disability benefit. Provisions governing entitlement to
66 disability benefits are set forth under s. 121.091(4).
67 (b) Any member initially enrolled in the Florida Retirement
68 System on or after July 1, 2011, but before July 1, 2012, shall
69 be vested upon completion of 8 years of creditable service.
70 (c) Any member initially enrolled in the Florida Retirement
71 System on or after July 1, 2012, shall be vested upon completion
72 of 10 years of creditable service.
73 Section 2. Paragraph (k) of subsection (3) of section
74 121.0515, Florida Statutes, is amended to read:
75 121.0515 Special Risk Class.—
76 (3) CRITERIA.—A member, to be designated as a special risk
77 member, must meet the following criteria:
78 (k) The member must have already qualified for and be
79 actively participating in special risk membership under
80 paragraph (a), paragraph (b), or paragraph (c), must have
81 suffered a qualifying injury as defined in this paragraph, must
82 not be receiving disability retirement benefits under as
83 provided in s. 121.091(4), and must satisfy the requirements of
84 this paragraph.
85 1. The ability To qualify for the class of membership
86 defined in paragraph (2)(i), (2)(f) occurs when two licensed
87 medical physicians, one of whom is the member’s a primary
88 treating physician of the member, must certify the existence of
89 the physical injury and medical condition that constitute a
90 qualifying injury as defined in this paragraph and that the
91 member has reached maximum medical improvement after August 1,
92 2008. The certifications from the licensed medical physicians
93 must include, at a minimum, that the injury to the special risk
94 member has resulted in a physical loss, or loss of use, of at
95 least two of the following: left arm, right arm, left leg, or
96 right leg; and that:
97 a. The That this physical loss or loss of use is total and
98 permanent, unless except in the event that the loss of use is
99 due to a physical injury to the member’s brain, in which event
100 the loss of use is permanent with at least 75 percent loss of
101 motor function with respect to each arm or leg affected.
102 b. The That this physical loss or loss of use renders the
103 member physically unable to perform the essential job functions
104 of his or her special risk position.
105 c. That, Notwithstanding the this physical loss or loss of
106 use, the individual is able to perform the essential job
107 functions required by the member’s new position, as provided in
108 subparagraph 3.
109 d. The That use of artificial limbs is either not possible
110 or does not alter the member’s ability to perform the essential
111 job functions of the member’s position.
112 e. That The physical loss or loss of use is a direct result
113 of a physical injury and not a result of any mental,
114 psychological, or emotional injury.
115 2. For the purposes of this paragraph, “qualifying injury”
116 means a physical an injury and medical condition sustained in
117 the line of duty, as certified by the member’s employing agency,
118 by a special risk member which that does not result in total and
119 permanent disability as defined in s. 121.091(4)(b). An injury
120 is a qualifying injury if the injury is a physical injury to the
121 member’s physical body resulting in a physical loss, or loss of
122 use, of at least two of the following: left arm, right arm, left
123 leg, or right leg. Notwithstanding any other provision of this
124 section, an injury that would otherwise qualify as a qualifying
125 injury is not considered a qualifying injury if and when the
126 member ceases employment with the employer for whom he or she
127 was providing special risk services on the date the injury
128 occurred.
129 3. The new position, as described in sub-subparagraph 1.c.,
130 that is required for qualification as a special risk member
131 under this paragraph is not required to be a position with
132 essential job functions that entitle an individual to special
133 risk membership. Whether the a new position as described in sub
134 subparagraph 1.c. exists and is available to the special risk
135 member is a decision to be made solely by the employer in
136 accordance with its hiring practices and applicable law.
137 4. This paragraph does not grant or create additional
138 rights for an any individual to continued employment or to be
139 hired or rehired by his or her employer which that are not
140 already provided under state law within the Florida Statutes,
141 the State Constitution, the Americans with Disabilities Act, if
142 applicable, or any other applicable state or federal law.
143 Section 3. Paragraph (a) of subsection (3) of section
144 121.053, Florida Statutes, is amended to read:
145 121.053 Participation in the Elected Officers’ Class for
146 retired members.—
147 (3) On or after July 1, 2010:
148 (a) A retiree of a state-administered retirement system who
149 is elected or appointed for the first time to an elective office
150 in a regularly established position with a covered employer may
151 not be enrolled as a renewed member of a state-administered
152 reenroll in the Florida retirement system.
153 Section 4. Paragraph (f) of subsection (1) and paragraph
154 (e) of subsection (6) of section 121.055, Florida Statutes, are
155 amended to read:
156 121.055 Senior Management Service Class.—There is hereby
157 established a separate class of membership within the Florida
158 Retirement System to be known as the “Senior Management Service
159 Class,” which shall become effective February 1, 1987.
160 (1)
161 (f) Effective July 1, 1997:
162 1. Except as provided in subparagraph 3., an elected state
163 officer eligible for membership in the Elected Officers’ Class
164 under s. 121.052(2)(a), (b), or (c) who elects membership in the
165 Senior Management Service Class under s. 121.052(3)(c) may,
166 within 6 months after assuming office, or within 6 months after
167 this act becomes a law for serving elected state officers,
168 within 6 months after May 30, 1997, elect to participate in the
169 Senior Management Service Optional Annuity Program, as provided
170 in subsection (6), in lieu of membership in the Senior
171 Management Service Class.
172 2. Except as provided in subparagraph 3., an elected
173 officer of a local agency employer eligible for membership in
174 the Elected Officers’ Class under s. 121.052(2)(d) who elects
175 membership in the Senior Management Service Class under s.
176 121.052(3)(c) may, within 6 months after assuming office, or
177 within 6 months after this act becomes a law for serving elected
178 officers of a local agency employer, within 6 months after May
179 30, 1997, elect to withdraw from the Florida Retirement System,
180 as provided in subparagraph (b)2., in lieu of membership in the
181 Senior Management Service Class.
182 3. A retiree of a state-administered retirement system who
183 is initially reemployed in a regularly established position on
184 or after July 1, 2010, as an elected official eligible for the
185 Elected Officers’ Class may not be enrolled in renewed renew
186 membership in the Senior Management Service Class or in the
187 Senior Management Service Optional Annuity Program as provided
188 in subsection (6), and may not withdraw from the Florida
189 Retirement System as a renewed member as provided in
190 subparagraph (b)2., as applicable, in lieu of membership in the
191 Senior Management Service Class.
192 (6)
193 (e) Benefits.—
194 1. Benefits under the Senior Management Service Optional
195 Annuity Program are payable only to members of the program, or
196 their beneficiaries as designated by the member in the contract
197 with the provider company, and must be paid by the designated
198 company in accordance with the terms of the annuity contract
199 applicable to the member. A member must be terminated from all
200 employment relationships with Florida Retirement System
201 employers for 3 calendar months to begin receiving the employer
202 funded and employee-funded benefit. The member must meet the
203 definition of termination in s. 121.021(39) beginning the month
204 after receiving a benefit, including a distribution. Benefits
205 funded by employer and employee contributions are payable under
206 the terms of the contract to the member, his or her beneficiary,
207 or his or her estate, in addition to:
208 a. A lump-sum payment to the beneficiary upon the death of
209 the member;
210 b. A cash-out of a de minimis account upon the request of a
211 former member who has been terminated for a minimum of 6
212 calendar months from the employment that entitled him or her to
213 optional annuity program participation. Such cash-out must be a
214 complete liquidation of the account balance with that company
215 and is subject to the Internal Revenue Code;
216 c. A mandatory distribution of a de minimis account of a
217 former member who has been terminated for a minimum of 6
218 calendar months from the employment that entitled him or her to
219 optional annuity program participation as authorized by the
220 department; or
221 d. A lump-sum direct rollover distribution whereby all
222 accrued benefits, plus interest and investment earnings, are
223 paid from the member’s account directly to the custodian of an
224 eligible retirement plan, as defined in s. 402(c)(8)(B) of the
225 Internal Revenue Code, on behalf of the member.
226 2. Under the Senior Management Service Optional Annuity
227 Program, benefits, including employee contributions, are not
228 payable for employee hardships, unforeseeable emergencies,
229 loans, medical expenses, educational expenses, purchase of a
230 principal residence, payments necessary to prevent eviction or
231 foreclosure on an employee’s principal residence, or any other
232 reason except for a requested distribution for retirement, a
233 mandatory de minimis distribution authorized by the
234 administrator, or a minimum distribution required pursuant to
235 the Internal Revenue Code before termination from all employment
236 relationships with participating employers for 3 calendar
237 months.
238 3. The benefits payable to a any person under the Senior
239 Management Service Optional Annuity Program, and any
240 contribution accumulated under such program, are not subject to
241 assignment, execution, or attachment or to any legal process
242 whatsoever.
243 4. Except as provided in subparagraph 5., a member who
244 terminates employment and receives a distribution, including a
245 rollover or trustee-to-trustee transfer, funded by employer and
246 required employee contributions is a retiree of deemed to be
247 retired from a state-administered retirement system. Such
248 retiree, who is initially reemployed in a regularly established
249 position on or after July 1, 2010, may not be enrolled as a
250 renewed member if the member is subsequently employed with an
251 employer that participates in the Florida Retirement System.
252 5. A member who receives optional annuity program benefits
253 funded by employer and employee contributions as a mandatory
254 distribution of a de minimis account authorized by the
255 department is not considered a retiree.
256
257 As used in this paragraph, a “de minimis account” means an
258 account with a provider company containing employer and employee
259 contributions and accumulated earnings of up to not more than
260 $5,000 made under this chapter.
261 Section 5. Subsection (7) of section 121.071, Florida
262 Statutes, is amended to read:
263 121.071 Contributions.—Contributions to the system shall be
264 made as follows:
265 (7) Before termination of employment, Benefits, including
266 employee contributions, are not payable under the pension plan
267 for employee hardships, unforeseeable emergencies, loans,
268 medical expenses, educational expenses, purchase of a principal
269 residence, payments necessary to prevent eviction or foreclosure
270 on an employee’s principal residence, or any other reason except
271 for payment of retirement benefits, a refund of employee
272 contributions, or a minimum distribution required pursuant to
273 the Internal Revenue Code before termination from all employment
274 relationships with participating employers.
275 Section 6. Paragraph (a) of subsection (3) and paragraph
276 (a) of subsection (13) of section 121.091, Florida Statutes, are
277 amended to read:
278 121.091 Benefits payable under the system.—Benefits may not
279 be paid under this section unless the member has terminated
280 employment as provided in s. 121.021(39)(a) or begun
281 participation in the Deferred Retirement Option Program as
282 provided in subsection (13), and a proper application has been
283 filed in the manner prescribed by the department. The department
284 may cancel an application for retirement benefits when the
285 member or beneficiary fails to timely provide the information
286 and documents required by this chapter and the department’s
287 rules. The department shall adopt rules establishing procedures
288 for application for retirement benefits and for the cancellation
289 of such application when the required information or documents
290 are not received.
291 (3) EARLY RETIREMENT BENEFIT.—Upon retirement on his or her
292 early retirement date, the member shall receive an immediate
293 monthly benefit that shall begin to accrue on the first day of
294 the month of the retirement date and be payable on the last day
295 of that month and each month thereafter during his or her
296 lifetime. Such benefit shall be calculated as follows:
297 (a) For a member initially enrolled:
298 1. Before July 1, 2011, the amount of each monthly payment
299 shall be computed in the same manner as for a normal retirement
300 benefit, in accordance with subsection (1), but shall be based
301 on the member’s average monthly compensation and creditable
302 service as of the member’s early retirement date. The benefit so
303 computed shall be reduced by five-twelfths of 1 percent for each
304 complete month by which the early retirement date precedes the
305 normal retirement date of age 62 for a member of the Regular
306 Class, Senior Management Service Class, or the Elected Officers’
307 Class, and age 55 for a member of the Special Risk Class, or age
308 52 if a Special Risk member has completed 25 years of creditable
309 service in accordance with s. 121.021(29)(b)1.c.
310 2. On or after July 1, 2011, but before July 1, 2012, the
311 amount of each monthly payment shall be computed in the same
312 manner as for a normal retirement benefit, in accordance with
313 subsection (1), but shall be based on the member’s average
314 monthly compensation and creditable service as of the member’s
315 early retirement date. The benefit so computed shall be reduced
316 by five-twelfths of 1 percent for each complete month by which
317 the early retirement date precedes the normal retirement date of
318 age 65 for a member of the Regular Class, Senior Management
319 Service Class, or the Elected Officers’ Class, and age 60 for a
320 member of the Special Risk Class, or age 57 if a Special Risk
321 member has completed 30 years of creditable service in
322 accordance with s. 121.021(29)(b)2.c.
323 3. On or after July 1, 2012, the amount of each monthly
324 payment shall be computed in the same manner as a normal
325 retirement benefit in accordance with subsection (1), but shall
326 be based on the member’s average monthly compensation and
327 creditable service as of the member’s early retirement date. The
328 benefit so computed shall be reduced by five-twelfths of 1
329 percent for each complete month by which the early retirement
330 date precedes the normal retirement date of age 62 for a member
331 of the Regular Class, Senior Management Service Class, or the
332 Elected Officers’ Class, and age 55 for a member of the Special
333 Risk Class, or age 48 if a Special Risk member has completed 25
334 years of creditable service in accordance with s.
335 121.021(29)(b)3.c.
336 (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
337 subject to this section, the Deferred Retirement Option Program,
338 hereinafter referred to as DROP, is a program under which an
339 eligible member of the Florida Retirement System may elect to
340 participate, deferring receipt of retirement benefits while
341 continuing employment with his or her Florida Retirement System
342 employer. The deferred monthly benefits shall accrue in the
343 Florida Retirement System on behalf of the member, plus interest
344 compounded monthly, for the specified period of the DROP
345 participation, as provided in paragraph (c). Upon termination of
346 employment, the member shall receive the total DROP benefits and
347 begin to receive the previously determined normal retirement
348 benefits. Participation in the DROP does not guarantee
349 employment for the specified period of DROP. Participation in
350 DROP by an eligible member beyond the initial 60-month period as
351 authorized in this subsection shall be on an annual contractual
352 basis for all participants.
353 (a) Eligibility of member to participate in DROP.—All
354 active Florida Retirement System members in a regularly
355 established position, and all active members of the Teachers’
356 Retirement System established in chapter 238 or the State and
357 County Officers’ and Employees’ Retirement System established in
358 chapter 122, which are consolidated within the Florida
359 Retirement System under s. 121.011, may participate are eligible
360 to elect participation in DROP if:
361 1. The member is not a renewed member under s. 121.122 or a
362 member of the State Community College System Optional Retirement
363 Program under s. 121.051, the Senior Management Service Optional
364 Annuity Program under s. 121.055, or the optional retirement
365 program for the State University System under s. 121.35.
366 2. Except as provided in subparagraph 6., for members
367 initially enrolled before July 1, 2011, election to participate
368 must be is made within 12 months immediately following the date
369 on which the member first reaches normal retirement date;, or,
370 for a member who reaches normal retirement date based on service
371 before he or she reaches age 62, or age 55 for Special Risk
372 Class members, election to participate may be deferred to the 12
373 months immediately following the date the member attains age 57,
374 or age 52 for Special Risk Class members. Except as provided in
375 subparagraph 6., for members initially enrolled on or after July
376 1, 2011, election to participate must be made within the 12
377 months immediately following the date on which the member first
378 reaches normal retirement date; or, for a member who reaches
379 normal retirement date based on service before he or she reaches
380 age 65, or age 60 for Special Risk Class members, election to
381 participate may be deferred to the 12 months immediately
382 following the date the member attains age 60, or age 55 for
383 Special Risk Class members. A member who delays DROP
384 participation during the 12-month period immediately following
385 his or her maximum DROP deferral date, except as provided in
386 subparagraph 6., loses a month of DROP participation for each
387 month delayed. A member who fails to make an election within the
388 12-month limitation period forfeits all rights to participate in
389 DROP. The member shall advise his or her employer and the
390 division in writing of the date DROP begins. The beginning date
391 may be subsequent to the 12-month election period but must be
392 within the original 60-month participation period provided in
393 subparagraph (b)1. When establishing eligibility to participate
394 in DROP, the member may elect to include or exclude any optional
395 service credit purchased by the member from the total service
396 used to establish the normal retirement date. A member who has
397 dual normal retirement dates may is eligible to elect to
398 participate in DROP after attaining normal retirement date in
399 either class.
400 3. The employer of a member electing to participate in
401 DROP, or employers if dually employed, shall acknowledge in
402 writing to the division the date the member’s participation in
403 DROP begins and the date the member’s employment and DROP
404 participation terminates.
405 4. Simultaneous employment of a member by additional
406 Florida Retirement System employers subsequent to the
407 commencement of a member’s participation in DROP is permissible
408 if such employers acknowledge in writing a DROP termination date
409 no later than the member’s existing termination date or the
410 maximum participation period provided in subparagraph (b)1.
411 5. A member may change employers while participating in
412 DROP, subject to the following:
413 a. The A change of employment takes place without a break
414 in service so that the member receives salary for each month of
415 continuous DROP participation. If a member receives no salary
416 during a month, DROP participation ceases unless the employer
417 verifies a continuation of the employment relationship for such
418 member pursuant to s. 121.021(39)(b).
419 b. The member and new employer notify the division of the
420 identity of the new employer on forms required by the division.
421 c. The new employer acknowledges, in writing, the member’s
422 DROP termination date, which may be extended but not beyond the
423 maximum participation period provided in subparagraph (b)1.,
424 acknowledges liability for any additional retirement
425 contributions and interest required if the member fails to
426 timely terminate employment, and is subject to the adjustment
427 required in sub-subparagraph (c)5.d.
428 6. Effective July 1, 2001, for instructional personnel as
429 defined in s. 1012.01(2), election to participate in DROP may be
430 made at any time following the date on which the member first
431 reaches normal retirement date. The member shall advise his or
432 her employer and the division in writing of the date on which
433 DROP begins. When establishing eligibility of the member to
434 participate in DROP for the 60-month participation period
435 provided in subparagraph (b)1., the member may elect to include
436 or exclude any optional service credit purchased by the member
437 from the total service used to establish the normal retirement
438 date. A member who has dual normal retirement dates is eligible
439 to elect to participate in either class.
440 Section 7. Subsection (2) of section 121.122, Florida
441 Statutes, is amended to read:
442 121.122 Renewed membership in system.—
443 (2) A retiree of a state-administered retirement system who
444 is initially reemployed in a regularly established position on
445 or after July 1, 2010, may not be enrolled as a renewed member
446 is not eligible for renewed membership.
447 Section 8. Paragraphs (a), (b), (g), and (h) of subsection
448 (5) of section 121.35, Florida Statutes, are amended to read:
449 121.35 Optional retirement program for the State University
450 System.—
451 (5) BENEFITS.—
452 (a) Benefits are payable under the optional retirement
453 program only to vested members participating in the program, or
454 their beneficiaries as designated by the member in the contract
455 with a provider company, and such benefits shall be paid only by
456 the designated company in accordance with s. 403(b) of the
457 Internal Revenue Code and the terms of the annuity or investment
458 contract or contracts applicable to the member. Benefits accrue
459 in individual accounts that are member-directed, portable, and
460 funded by employer and employee contributions and the earnings
461 thereon. The member must be terminated for 3 calendar months
462 from all employment relationships with all Florida Retirement
463 System employers to begin receiving the benefit. Benefits funded
464 by employer and employee contributions are payable in accordance
465 with the following terms and conditions:
466 1. Benefits shall be paid only to a participating member,
467 to his or her beneficiaries, or to his or her estate, as
468 designated by the member.
469 2. Benefits shall be paid by the provider company or
470 companies in accordance with the law, the provisions of the
471 contract, and any applicable department rule or policy.
472 3. In the event of a member’s death, moneys accumulated by,
473 or on behalf of, the member, less withholding taxes remitted to
474 the Internal Revenue Service, if any, shall be distributed to
475 the member’s designated beneficiary or beneficiaries, or to the
476 member’s estate, as if the member retired on the date of death,
477 as provided in paragraph (d). No other death benefits are
478 available to survivors of members under the optional retirement
479 program except for such benefits, or coverage for such benefits,
480 as are separately afforded by the employer, at the employer’s
481 discretion.
482 (b) Benefits, including employee contributions, are not
483 payable for employee hardships, unforeseeable emergencies,
484 loans, medical expenses, educational expenses, purchase of a
485 principal residence, payments necessary to prevent eviction or
486 foreclosure on an employee’s principal residence, or any other
487 reason except for a requested distribution for retirement, a
488 mandatory de minimis distribution authorized by the
489 administrator, or a minimum distribution required pursuant to
490 the Internal Revenue Code before termination from all employment
491 relationships with participating employers for 3 calendar
492 months.
493 (g) Benefits funded by the participating member’s voluntary
494 personal contributions may be paid out after termination of
495 employment from all participating employers for 3 calendar
496 months at any time and in any form within the limits provided in
497 the contract between the member and the provider company. The
498 member shall notify the provider company regarding the date and
499 provisions under which he or she wants to receive the employee
500 funded portion of the plan.
501 (h) For purposes of this section, the term:
502 1. “Benefit” means a distribution requested by the member
503 or surviving beneficiary funded in part or in whole by the
504 employer or required employee contributions, plus earnings, and
505 includes rolling a distribution over to another qualified plan.
506 2. “Retiree” means a former participating member of the
507 optional retirement program who has terminated employment and
508 has taken a distribution as provided in this subsection, except
509 for a mandatory distribution of a de minimis account authorized
510 by the department.
511 Section 9. Paragraph (e) of subsection (2) and subsection
512 (4) of section 121.4501, Florida Statutes, are amended to read:
513 121.4501 Florida Retirement System Investment Plan.—
514 (2) DEFINITIONS.—As used in this part, the term:
515 (e) “Eligible employee” means an officer or employee, as
516 defined in s. 121.021, who:
517 1. Is a member of, or is eligible for membership in, the
518 Florida Retirement System, including any renewed member of the
519 Florida Retirement System initially enrolled before July 1,
520 2010; or
521 2. Participates in, or is eligible to participate in, the
522 Senior Management Service Optional Annuity Program as
523 established under s. 121.055(6), the State Community College
524 System Optional Retirement Program as established under s.
525 121.051(2)(c), or the State University System Optional
526 Retirement Program established under s. 121.35.
527
528 The term does not include a any member participating in the
529 Deferred Retirement Option Program established under s.
530 121.091(13), a retiree of a state-administered retirement system
531 initially reemployed in a regularly established position on or
532 after July 1, 2010, or a mandatory participant of the State
533 University System Optional Retirement Program established under
534 s. 121.35.
535 (4) PARTICIPATION; ENROLLMENT.—
536 (a)1. With respect to an eligible employee who is employed
537 in a regularly established position on June 1, 2002, by a state
538 employer:
539 a. Any such employee may elect to participate in the
540 investment plan in lieu of retaining his or her membership in
541 the pension plan. The election must be made in writing or by
542 electronic means and must be filed with the third-party
543 administrator by August 31, 2002, or, in the case of an active
544 employee who is on a leave of absence on April 1, 2002, by the
545 last business day of the 5th month following the month the leave
546 of absence concludes. This election is irrevocable, except as
547 provided in paragraph (g). Upon making such election, the
548 employee shall be enrolled as a member of the investment plan,
549 the employee’s membership in the Florida Retirement System is
550 governed by the provisions of this part, and the employee’s
551 membership in the pension plan terminates. The employee’s
552 enrollment in the investment plan is effective the first day of
553 the month for which a full month’s employer contribution is made
554 to the investment plan.
555 b. Any such employee who fails to elect to participate in
556 the investment plan within the prescribed time period is deemed
557 to have elected to retain membership in the pension plan, and
558 the employee’s option to elect to participate in the investment
559 plan is forfeited.
560 2. With respect to employees who become eligible to
561 participate in the investment plan by reason of employment in a
562 regularly established position with a state employer commencing
563 after April 1, 2002, but before July 1, 2012:
564 a. Any such employee shall, by default, be enrolled in the
565 pension plan at the commencement of employment, and may, by the
566 last business day of the 5th month following the employee’s
567 month of hire, elect to participate in the investment plan. The
568 employee’s election must be made in writing or by electronic
569 means and must be filed with the third-party administrator. The
570 election to participate in the investment plan is irrevocable,
571 except as provided in paragraph (g).
572 b. If the employee files such election within the
573 prescribed time period, enrollment in the investment plan is
574 effective on the first day of employment. The retirement
575 contributions paid through the month of the employee plan change
576 shall be transferred to the investment program, and, effective
577 the first day of the next month, the employer and employee must
578 pay the applicable contributions based on the employee
579 membership class in the program.
580 c. An employee who fails to elect to participate in the
581 investment plan within the prescribed time period is deemed to
582 have elected to retain membership in the pension plan, and the
583 employee’s option to elect to participate in the investment plan
584 is forfeited.
585 3. With respect to employees who become eligible to
586 participate in the investment plan pursuant to s.
587 121.051(2)(c)3. or s. 121.35(3)(i), the employee may elect to
588 participate in the investment plan in lieu of retaining his or
589 her membership in the State Community College System Optional
590 Retirement Program or the State University System Optional
591 Retirement Program. The election must be made in writing or by
592 electronic means and must be filed with the third-party
593 administrator. This election is irrevocable, except as provided
594 in paragraph (g). Upon making such election, the employee shall
595 be enrolled as a member in the investment plan, the employee’s
596 membership in the Florida Retirement System is governed by the
597 provisions of this part, and the employee’s participation in the
598 State Community College System Optional Retirement Program or
599 the State University System Optional Retirement Program
600 terminates. The employee’s enrollment in the investment plan is
601 effective on the first day of the month for which a full month’s
602 employer and employee contribution is made to the investment
603 plan.
604 4. With respect to employees who become eligible to
605 participate in the investment plan by reason of employment in a
606 regularly established position with a state employer commencing
607 on or after July 1, 2012:
608 a. The employee shall, by default, be enrolled in the
609 investment plan at the commencement of employment, and may, by
610 the last business day of the 12th month following the employee’s
611 month of hire, elect to participate in the pension plan. The
612 employee’s election must be made in writing or by electronic
613 means and filed with the third-party administrator.
614 b. If the employee files such election within the
615 prescribed time period, enrollment in the pension plan is
616 effective on the first day of employment. The present value of
617 his or her retirement contributions under the investment plan
618 paid through the month of the employee plan change shall be
619 transferred to the pension plan, and, effective the first day of
620 the next month, the employer and employee must pay the
621 applicable contributions based on the employee membership class
622 in the pension plan.
623 c. An employee who fails to elect to participate in the
624 pension plan within the prescribed time period is deemed to have
625 elected to retain membership in the investment plan, and the
626 employee’s option to elect to participate in the pension plan is
627 forfeited.
628 5.4. For purposes of this paragraph, “state employer” means
629 any agency, board, branch, commission, community college,
630 department, institution, institution of higher education, or
631 water management district of the state, which participates in
632 the Florida Retirement System for the benefit of certain
633 employees.
634 (b)1. With respect to an eligible employee who is employed
635 in a regularly established position on September 1, 2002, by a
636 district school board employer:
637 a. The Any such employee may elect to participate in the
638 investment plan in lieu of retaining his or her membership in
639 the pension plan. The election must be made in writing or by
640 electronic means and must be filed with the third-party
641 administrator by November 30, or, in the case of an active
642 employee who is on a leave of absence on July 1, 2002, by the
643 last business day of the 5th month following the month the leave
644 of absence concludes. This election is irrevocable, except as
645 provided in paragraph (g). Upon making such election, the
646 employee shall be enrolled as a member of the investment plan,
647 the employee’s membership in the Florida Retirement System is
648 governed by the provisions of this part, and the employee’s
649 membership in the pension plan terminates. The employee’s
650 enrollment in the investment plan is effective the first day of
651 the month for which a full month’s employer contribution is made
652 to the investment program.
653 b. An Any such employee who fails to elect to participate
654 in the investment plan within the prescribed time period is
655 deemed to have elected to retain membership in the pension plan,
656 and the employee’s option to elect to participate in the
657 investment plan is forfeited.
658 2. With respect to employees who become eligible to
659 participate in the investment plan by reason of employment in a
660 regularly established position with a district school board
661 employer commencing after July 1, 2002, but before July 1, 2012:
662 a. The Any such employee shall, by default, be enrolled in
663 the pension plan at the commencement of employment, and may, by
664 the last business day of the 5th month following the employee’s
665 month of hire, elect to participate in the investment plan. The
666 employee’s election must be made in writing or by electronic
667 means and must be filed with the third-party administrator. The
668 election to participate in the investment plan is irrevocable,
669 except as provided in paragraph (g).
670 b. If the employee files such election within the
671 prescribed time period, enrollment in the investment plan is
672 effective on the first day of employment. The employer
673 retirement contributions paid through the month of the employee
674 plan change shall be transferred to the investment plan, and,
675 effective the first day of the next month, the employer shall
676 pay the applicable contributions based on the employee
677 membership class in the investment plan.
678 c. An Any such employee who fails to elect to participate
679 in the investment plan within the prescribed time period is
680 deemed to have elected to retain membership in the pension plan,
681 and the employee’s option to elect to participate in the
682 investment plan is forfeited.
683 3. With respect to employees who become eligible to
684 participate in the investment plan by reason of employment in a
685 regularly established position with a district school board
686 employer commencing on or after July 1, 2012:
687 a. The employee shall, by default, be enrolled in the
688 investment plan at the commencement of employment, and may, by
689 the last business day of the 12th month following the employee’s
690 month of hire, elect to participate in the pension plan. The
691 employee’s election must be made in writing or by electronic
692 means and filed with the third-party administrator.
693 b. If the employee files such election within the
694 prescribed time period, enrollment in the pension plan is
695 effective on the first day of employment. The present value of
696 his or her retirement contributions under the investment plan
697 paid through the month of the employee plan change shall be
698 transferred to the pension plan, and, effective the first day of
699 the next month, the employer shall pay the applicable
700 contributions based on the employee membership class in the
701 pension plan.
702 c. An employee who fails to elect to participate in the
703 pension plan within the prescribed time period is deemed to have
704 elected to retain membership in the investment plan, and the
705 employee’s option to elect to participate in the pension plan is
706 forfeited.
707 4.3. For purposes of this paragraph, “district school board
708 employer” means any district school board that participates in
709 the Florida Retirement System for the benefit of certain
710 employees, or a charter school or charter technical career
711 center that participates in the Florida Retirement System as
712 provided in s. 121.051(2)(d).
713 (c)1. With respect to an eligible employee who is employed
714 in a regularly established position on December 1, 2002, by a
715 local employer:
716 a. The Any such employee may elect to participate in the
717 investment plan in lieu of retaining his or her membership in
718 the pension plan. The election must be made in writing or by
719 electronic means and must be filed with the third-party
720 administrator by February 28, 2003, or, in the case of an active
721 employee who is on a leave of absence on October 1, 2002, by the
722 last business day of the 5th month following the month the leave
723 of absence concludes. This election is irrevocable, except as
724 provided in paragraph (g). Upon making such election, the
725 employee shall be enrolled as a participant of the investment
726 plan, the employee’s membership in the Florida Retirement System
727 is governed by the provisions of this part, and the employee’s
728 membership in the pension plan terminates. The employee’s
729 enrollment in the investment plan is effective the first day of
730 the month for which a full month’s employer contribution is made
731 to the investment plan.
732 b. An Any such employee who fails to elect to participate
733 in the investment plan within the prescribed time period is
734 deemed to have elected to retain membership in the pension plan,
735 and the employee’s option to elect to participate in the
736 investment plan is forfeited.
737 2. With respect to employees who become eligible to
738 participate in the investment plan by reason of employment in a
739 regularly established position with a local employer commencing
740 after October 1, 2002, but before July 1, 2012:
741 a. The Any such employee shall, by default, be enrolled in
742 the pension plan at the commencement of employment, and may, by
743 the last business day of the 5th month following the employee’s
744 month of hire, elect to participate in the investment plan. The
745 employee’s election must be made in writing or by electronic
746 means and must be filed with the third-party administrator. The
747 election to participate in the investment plan is irrevocable,
748 except as provided in paragraph (g).
749 b. If the employee files such election within the
750 prescribed time period, enrollment in the investment plan is
751 effective on the first day of employment. The employer
752 retirement contributions paid through the month of the employee
753 plan change shall be transferred to the investment plan, and,
754 effective the first day of the next month, the employer shall
755 pay the applicable contributions based on the employee
756 membership class in the investment plan.
757 c. An Any such employee who fails to elect to participate
758 in the investment plan within the prescribed time period is
759 deemed to have elected to retain membership in the pension plan,
760 and the employee’s option to elect to participate in the
761 investment plan is forfeited.
762 3. With respect to employees who become eligible to
763 participate in the investment plan by reason of employment in a
764 regularly established position with a local employer commencing
765 on or after July 1, 2012:
766 a. The employee shall, by default, be enrolled in the
767 investment plan at the commencement of employment, and may, by
768 the last business day of the 12th month following the employee’s
769 month of hire, elect to participate in the pension plan. The
770 employee’s election must be made in writing or by electronic
771 means and must be filed with the third-party administrator.
772 b. If the employee files such election within the
773 prescribed time period, enrollment in the pension plan is
774 effective on the first day of employment. The present value of
775 his or her employer retirement contributions under the
776 investment plan paid through the month of the employee plan
777 change shall be transferred to the pension plan, and, effective
778 the first day of the next month, the employer shall pay the
779 applicable contributions based on the employee membership class
780 in the pension plan.
781 c. An employee who fails to elect to participate in the
782 pension plan within the prescribed time period is deemed to have
783 elected to retain membership in the investment plan, and the
784 employee’s option to elect to participate in the pension plan is
785 forfeited.
786 4.3. For purposes of this paragraph, “local employer” means
787 any employer not included in paragraph (a) or paragraph (b).
788 (d) Contributions available for self-direction by a member
789 who has not selected one or more specific investment products
790 shall be allocated as prescribed by the state board. The third
791 party administrator shall notify the member at least quarterly
792 that the member should take an affirmative action to make an
793 asset allocation among the investment products.
794 (e) On or after July 1, 2011, a member of the pension plan
795 who obtains a refund of employee contributions retains his or
796 her prior plan choice upon return to employment in a regularly
797 established position with a participating employer.
798 (f) A member of the investment plan who takes a
799 distribution of any contributions from his or her investment
800 plan account is considered a retiree. A retiree who is initially
801 reemployed on or after July 1, 2010, is not eligible for renewed
802 membership.
803 (g) After the period during which an eligible employee had
804 the choice to elect the pension plan or the investment plan, or
805 the month following the receipt of the eligible employee’s plan
806 election, if sooner, the employee shall have one opportunity, at
807 the employee’s discretion, to choose to move from the pension
808 plan to the investment plan or from the investment plan to the
809 pension plan. However, employees initially enrolled in the
810 investment plan on or after July 1, 2012, may not move from the
811 investment plan to the pension plan after the close of the
812 initial prescribed time period to do so. Eligible employees may
813 elect to move between plans only if they are earning service
814 credit in an employer-employee relationship consistent with s.
815 121.021(17)(b), excluding leaves of absence without pay.
816 Effective July 1, 2005, such elections are effective on the
817 first day of the month following the receipt of the election by
818 the third-party administrator and are not subject to the
819 requirements regarding an employer-employee relationship or
820 receipt of contributions for the eligible employee in the
821 effective month, except when the election is received by the
822 third-party administrator. This paragraph is contingent upon
823 approval by the Internal Revenue Service.
824 1. If the employee chooses to move to the investment plan,
825 the provisions of subsection (3) govern the transfer.
826 2. If the employee chooses to move to the pension plan, the
827 employee must transfer from his or her investment plan account,
828 and from other employee moneys as necessary, a sum representing
829 the present value of that employee’s accumulated benefit
830 obligation immediately following the time of such movement,
831 determined assuming that attained service equals the sum of
832 service in the pension plan and service in the investment plan.
833 Benefit commencement occurs on the first date the employee is
834 eligible for unreduced benefits, using the discount rate and
835 other relevant actuarial assumptions that were used to value the
836 pension plan liabilities in the most recent actuarial valuation.
837 For any employee who, at the time of the second election,
838 already maintains an accrued benefit amount in the pension plan,
839 the then-present value of the accrued benefit is deemed part of
840 the required transfer amount. The division must ensure that the
841 transfer sum is prepared using a formula and methodology
842 certified by an enrolled actuary. A refund of any employee
843 contributions or additional member payments made which exceed
844 the employee contributions that would have accrued had the
845 member remained in the pension plan and not transferred to the
846 investment plan is not permitted.
847 3. Notwithstanding subparagraph 2., an employee who chooses
848 to move to the pension plan and who became eligible to
849 participate in the investment plan by reason of employment in a
850 regularly established position with a state employer after June
851 1, 2002; a district school board employer after September 1,
852 2002; or a local employer after December 1, 2002, must transfer
853 from his or her investment plan account, and from other employee
854 moneys as necessary, a sum representing the employee’s actuarial
855 accrued liability. A refund of any employee contributions or
856 additional participant payments made which exceed the employee
857 contributions that would have accrued had the member remained in
858 the pension plan and not transferred to the investment plan is
859 not permitted.
860 4. An employee’s ability to transfer from the pension plan
861 to the investment plan pursuant to paragraphs (a)-(d), and the
862 ability of a current employee to have an option to later
863 transfer back into the pension plan under subparagraph 2., shall
864 be deemed a significant system amendment. Pursuant to s.
865 121.031(4), any resulting unfunded liability arising from actual
866 original transfers from the pension plan to the investment plan
867 must be amortized within 30 plan years as a separate unfunded
868 actuarial base independent of the reserve stabilization
869 mechanism defined in s. 121.031(3)(f). For the first 25 years, a
870 direct amortization payment may not be calculated for this base.
871 During this 25-year period, the separate base shall be used to
872 offset the impact of employees exercising their second program
873 election under this paragraph. The actuarial funded status of
874 the pension plan will not be affected by such second program
875 elections in any significant manner, after due recognition of
876 the separate unfunded actuarial base. Following the initial 25
877 year period, any remaining balance of the original separate base
878 shall be amortized over the remaining 5 years of the required
879 30-year amortization period.
880 5. If the employee chooses to transfer from the investment
881 plan to the pension plan and retains an excess account balance
882 in the investment plan after satisfying the buy-in requirements
883 under this paragraph, the excess may not be distributed until
884 the member retires from the pension plan. The excess account
885 balance may be rolled over to the pension plan and used to
886 purchase service credit or upgrade creditable service in the
887 pension plan.
888
889 ================= T I T L E A M E N D M E N T ================
890 And the title is amended as follows:
891 Delete lines 2 - 34
892 and insert:
893 An act relating to state retirement; amending s.
894 121.021, F.S.; revising definitions of the terms
895 “normal retirement date” and “vested” or “vesting”;
896 amending s. 121.0515, F.S.; correcting a cross
897 reference; amending s. 121.053, F.S.; specifying that
898 a retiree who is elected or appointed for the first
899 time to an elective office may not be enrolled as a
900 renewed member; amending s. 121.055, F.S.; specifying
901 that a retiree who is reemployed in a regularly
902 established position as an elected official may not
903 renew membership in the Senior Management Service
904 Class or an annuity program; providing exceptions from
905 the prohibition against paying benefits for certain
906 purposes under the Senior Management Service Optional
907 Annuity Program; specifying that a retiree who is
908 reemployed in a regularly established position on or
909 after a certain date may not be enrolled as a renewed
910 member; amending s. 121.071, F.S.; providing
911 exceptions from the prohibition against paying
912 benefits for certain purposes under the pension plan;
913 amending s. 121.091, F.S.; revising provisions
914 relating to the early retirement benefit calculation
915 to conform to changes made by the act; specifying the
916 age of eligibility to participate in DROP for members
917 enrolled after a certain date; amending s. 121.122,
918 F.S.; specifying that a retiree who is reemployed in a
919 regularly established position after a certain date
920 may not be enrolled as a renewed member; amending s.
921 121.35, F.S.; providing exceptions from the
922 prohibition against paying benefits for certain
923 purposes under the optional retirement program for the
924 State University System; clarifying when voluntary
925 contributions may be paid out; defining the term
926 “benefit” for the purposes of the optional program;
927 amending s. 121.4501, F.S.; specifying that the
928 definition of “eligible employee” does not include
929 certain members reemployed in a regularly established
930 position; requiring new employees to, by default, be
931 enrolled in the investment plan; extending the period
932 during which employees may elect to participate in the
933 pension plan; prohibiting certain employees from
934 choosing to move to the pension plan after a certain
935 period; amending s. 121.591, F.S.; providing