19-11.007. Second Election Enrollment Procedures for the Florida Retirement System Retirement Programs

(1) This rule includes procedures for members who used their first or initial election enroll in the Florida Retirement System (FRS) Investment Plan, Investment Plan Hybrid Option or defaulted into the Investment Plan to use their 2nd election to transfer to the Pension Plan; and for members who used their first or initial election to enroll in the Pension Plan or defaulted into the Pension Plan to use their 2nd election to transfer to the Investment Plan or the Investment Plan Hybrid Option. This rule also includes procedures for members who elected to participate in the State Community College System Optional Retirement Program (SCCSORP), in lieu of the FRS membership and want to transfer to the FRS Pension Plan or participate prospectively in the FRS Investment Plan.

(2) A member may make a valid election only if the election is made and processed by the Plan Choice Administrator during the month in which the member is actively employed and earning salary and service credit in an employer-employee relationship consistent with the requirements of Section 121.021(17)(b), F.S. Members on an unpaid leave of absence or terminated members cannot use their election until they return to FRS-covered employment and are earning salary and service credit. Employees of an educational institution on summer break cannot use their election during the full calendar months of their summer break. For example, if the last day of the school term is May 21st and the first day of the new school term is August 17th, the employee may not file a 2nd election in the calendar months of June or July. The beginning of the school term is determined by the employer. In general terms, this means that the election can only be made and processed during the month in which the member is actively working and being paid for that work. An election received after a member’s date of death will be considered invalid, even if the member signed the election form prior to their date of death. It is the responsibility of the member to assure that the election is received by the Plan Choice Administrator no later than 4:00 p.m. (Eastern Time) on the last business day of the month the member is actively employed and earning salary and service credit.

(a) The following are examples of scenarios that could result in an invalid election. These are only examples and are not inclusive of all possible situations. Members and employers are encouraged to contact the MyFRS Financial Guidance Line to discuss their particular situation.

1. Example 1: A member goes on unpaid leave of absence on November 12. On December 4, the Investment Plan Administrator receives a 2nd election form from the member electing to transfer from the Pension Plan to the Investment Plan. The member returns from leave of absence on January 7. The member’s 2nd election is not valid because the member did not earn salary and service credit in the month of December. The member would be required to submit another 2nd election during the month in which he or she is actively employed and earning salary and service credit.

2. Example 2: A teacher is on summer break from June 6 through August 12. On July 21, the Investment Plan Administrator receives a 2nd election from the teacher electing to transfer from the Investment Plan to the Pension Plan. The teacher’s second election is not valid because the member did not earn salary and service credit in the month of July. The teacher would be required to submit a second election form during the month in which he or she is actively employed and earning salary and service credit once the member has returned from summer break.

3. Example 3: A member terminates FRS-covered employment on March 31. On April 1, the Investment Plan Administrator receives a 2nd election from the member electing to transfer from the Pension Plan to the Investment Plan. The member’s 2nd election is not valid because the second election form was received after the member terminated FRS-covered employment. The member would be required to return to FRS-covered employment and submit a 2nd election form during the month in which he or she is actively employed and earning salary and service credit.

(3) An active SCCSORP participant can, at his or her discretion within the terms of his or her SCCSORP contract, exercise a one-time opportunity to transfer to the FRS Pension Plan or participate prospectively in the FRS Investment Plan.

(4) General Procedures.

(a) All members who wish to change their FRS retirement plan using their 2nd election, or a SCCSORP member who wants to switch to the FRS, must submit an election to the Plan Choice Administrator.

1. A second election can be made by accessing the online Second Election Choice Service or online by completing the “2nd Election Retirement Plan Enrollment Form.” There are two types of enrollment forms. The “2nd Election Retirement Plan Enrollment Form,” Form ELE-2, rev. 07-23, http://www.flrules.org/Gateway/reference.asp?No=Ref-16167, which is hereby adopted and incorporated by reference. This form allows the member to select different investment fund options if the member is changing from the Pension Plan to either the Investment Plan or the Investment Plan Hybrid Option. Alternatively, the member can complete the “2nd Election EZ Retirement Plan Enrollment Form,” Form ELE-2EZ, rev. 07-21, http://www.flrules.org/Gateway/reference.asp?No=Ref-14019, which is hereby adopted and incorporated by reference. By completing this form, the member is choosing to have the employer and employee contributions and any transfers from the Pension Plan invested in an age appropriate retirement date fund as provided under the Plan provisions. The member may change the investment selection at any time after the Investment Plan or the Investment Plan Hybrid Option account is activated. Activation occurs when contributions are deposited to the member’s Investment Plan account.

2. Members who want to exercise their one-time opportunity to transfer from SCCSORP to the FRS Pension Plan or participate prospectively in the FRS Investment Plan must complete the State Community College Optional Retirement Program (SCCSORP) Retirement Plan Conversion form, Form OCC-2, rev. 07-23, http://www.flrules.org/Gateway/reference.asp?No=Ref-16172, which is hereby adopted and incorporated by reference.

(b) Election forms are available by calling the toll-free number for the MyFRS Financial Guidance Line: 1(866)446-9377, Option 4 or for members who are deaf, hard of hearing, or speech-impaired: TRS 711; or by using the MyFRS.com website and clicking on Forms.

(c) Elections made by form must be mailed to the Plan Choice Administrator, P.O. Box 785027, Orlando, Florida 32878-5027; or faxed toll-free to the number provided on the form. It is the responsibility of the member to ensure that the 2nd election form is received by the Plan Choice Administrator.

(d) For members transferring to the Investment Plan who provide a personal email address or cell phone number, the member has consented to electronic delivery of documents through the MyFRS.com website, including but not limited to prospectuses, quarterly account statements, account transaction confirmation statements, privacy notices, annual fee disclosure statement, and other documents. When one of these documents is available, an email notice will be sent to the email address or a text message to the cell phone number provided by the member notifying the member of the document’s availability. The member will need to log in to the MyFRS.com website to view and print any of these documents. Receipt of documents through MyFRS.com will continue until the member calls the MyFRS Financial Guidance Line at 1(866)446-9377, Option 4 and revokes the member’s consent.

(e) For members transferring to the Pension Plan, if the member’s Investment Plan or SCCSORP account balance was less than the calculated amount required to buy back into the Pension Plan, the election will require a personal payment. The member will receive notification and proper instructions from the Division of Retirement (Division) detailing where and in what form to send any personal payments. Such payment, if necessary, must be received by the date determined by the Division. If the required amount is not received by the Division by the date due, the election will be voided.

(f) A confirmation statement will be mailed to the member’s address of record once the completed form is received and processed.

(g) The member should carefully review the form and be sure that it is signed, dated, and sets forth the member’s election. A copy of the form should be retained for the member’s records.

(h) The Plan Choice Administrator shall determine that the employee’s enrollment is complete and the employee’s election is clearly indicated. If the Plan Choice Administrator determines that the enrollment is incomplete, the employee will be required to resubmit a completed enrollment. An incomplete enrollment is an enrollment which is missing the name of the member, sets forth a spelling of the member’s name or reflects a date of birth that does not match the information present in the Plan Choice Administrator’s database, missing the last four digits of the member’s social security number, plan selection, signature, or one on which the investment elections total greater than or less than 100%. The member will be required to resubmit a completed enrollment form. If the form is incomplete only because the member has made no investment selection, the form will be processed and the member will be defaulted into an age appropriate retirement date fund as provided under the Plan provisions for investing the member’s accumulated benefit obligation and all future contributions. Note that this default selection may be changed by the member at any time once the account is activated.

(i) The election will become final at 4:00 p.m. (Eastern Time) on the day it is received by the Plan Choice Administrator. Elections received after 4:00 p.m. (Eastern Time) will be considered as being received on the next business day. Elections received on a Saturday, Sunday or holiday will be considered as being received on the next business day.

(j) If an enrollment is received by electronic means, using an electronic signature, the member agrees that the electronic signature is the equivalent of a handwritten signature for the purposes of validity, enforceability, and admissibility.

(k) A member enrolled in the Investment Plan as a renewed member on or after July 1, 2017 is not eligible to use the second election specified in this rule or transfer to the Pension Plan.

(5) Grace Period.

(a) If a member files an election with the Plan Choice Administrator and the member realizes that the election was made in error, or if the member has reconsidered his or her plan choice, the State Board of Administration (SBA) will consider, on a case-by-case basis, whether the election will be reversed, subject to the following: The member must notify the SBA by calling the toll free MyFRS Financial Guidance Line at: 1(866)446-9377, or by sending written correspondence directly to the SBA, to the Plan Choice Administrator, to the MyFRS Financial Guidance Line, or to the Division, no later than 4:00 p.m. (Eastern Time) on the last business day of the election effective month.

(b) If the request to reverse the election is made timely and the SBA finds the election was made in error or grants the request for reconsideration, the member will be required to sign a release and return it to the SBA by the designated due date no later than 4:00 p.m. (Eastern Time). Failure to return a signed release by the requested due date will result in the member remaining in the elected retirement plan. Upon receipt of the release, the Division and the Plan Choice Administrator will be directed to take the necessary steps to reverse the election and to correct the member’s records to reflect the election reversal.

(c) A confirmation that the election was reversed will be sent to the member by the Plan Choice Administrator.

(d) The member retains the right to file a subsequent 2nd election consistent with subsections (2) and (3) above.

(e) Nothing contained in this subsection will interfere with a member’s right to file a complaint, as permitted by Section 121.4501(8)(g), F.S. and discussed in Rule 19-11.005, F.A.C.

Rulemaking Authority 121.4501(8) FS. Law Implemented 121.4501(3), (4), (8), (15)(b), (20) FS. History–New 10-21-04, Amended 3-9-06, 10-25-07, 12-8-08, 5-19-09, 1-7-10, 7-12-12, 12-16-12, 12-28-14, 8-18-14, 12-30-15, 4-12-17, 2-12-18, 2-19-19, 4-8-20, 5-11-22 7-26-23, 4-22-24.