60S-3.011. Payment of Contributions

(1) All retirement contributions for current services rendered by covered employees of all state-administered retirement plans shall be paid to the Division of Retirement. The required contribution rate shall be the rate in effect at the time the member is paid, as determined by his or her class of membership. Retirement contributions and accompanying payroll data for each payroll period are due and payable each month no later than the 5th working day of the month following the month in which covered wages are paid.

(2) Retirement contributions and accompanying payroll data not received at the Division on or before the due date shall be considered delinquent, unless a waiver is granted pursuant to the following or, for participants of the FRS Investment Plan, as provided in Rule 19-11.001, F.A.C.

(a) If the contributions required pursuant to subsection (1) are delinquent, a fee of 1.0 percent shall be assessed for each calendar month or part thereof that said contributions are delinquent. Such delinquent assessment shall be billed to the employer by invoice upon determination of the contributions due.

(b) Effective January 1, 2000, if the delinquent assessment billed to the employer in paragraph (a) above is not received at the Division within 30 days following the Division’s invoice date, an additional delinquent assessment of 1.0 percent on the invoiced amount shall be assessed for each calendar month or part thereof that said invoice is delinquent.

(c) If, due to a calculation or reporting error the amount of contributions reported and remitted are less than the amount required, the employer shall owe the difference, plus the delinquent fee, if applicable, of 1.0 percent on the invoiced amount. If the invoiced amount is not paid within 30 days following the invoice date, an additional delinquent assessment of 1.0 percent shall be added to the invoiced amount each month or part-month thereafter until full payment is submitted. Such delinquent fee paid on behalf of contributions reported late on behalf of a participant of the Investment Plan shall be transferred to the participant’s investment account as provided in Rule 19-11.001, F.A.C. Such delinquent fee paid on behalf of contributions reported late on behalf of a participant of the Pension Plan shall be retained in the Florida Retirement System Trust Fund.

(d) In the event delinquent employer contributions and accompanying payroll data result in market losses to the participants of the Investment Plan, the employer is required to reimburse each participant’s account for such market losses resulting from the late contributions. Additionally, an administrative fee for the cost of the third-party administrator’s calculation of the participant’s losses shall be assessed against the employer, as provided in Chapter 121, Part III, F.S., and Rule 19-11.001, F.A.C.

(e) Retirement contributions paid for a prior period shall be charged a delinquent fee of 1.0 percent for each calendar month or part thereof that said contributions should have been paid. This includes prior period contributions due to incorrect wages and contributions from an earlier report or wages and contributions that should have been reported, but were not. This delinquent assessment cannot be waived. If the delinquent assessment is not remitted within 30 days following the Division’s invoice date, an additional delinquent assessment of 1.0 percent on the invoiced amount shall be assessed for each calendar month or part thereof that said invoice is delinquent.

(3) Social Security contributions on wages paid on and after January 1, 1987 shall be paid in accordance with subsection 60S-3.010(3), F.A.C.; Social Security contributions on wages paid prior to such date shall be paid to the Division.

(4) Retirement contributions not remitted timely as prescribed in subsection (1) shall be delinquent, unless in the opinion of the Division exceptional circumstances beyond the employer’s control prevented payment by the prescribed due date and a waiver of the delinquent fee is granted by the Division. A waiver may be granted only once for an employer during any one fiscal year. The employer shall fully explain and certify such waiver request in writing to the Division. Should the Division deny a waiver request, the employer shall pay the assessed delinquent fee, plus any additional delinquent charges which have accumulated during the time required to review the request for a waiver of the delinquency charge.

(5) If the agency fails to pay the total amount due within 120 calendar days from the date of the Division’s invoice, the following action shall be taken:

(a) In the case of a state agency, the Administrator shall notify the Governor and certify the amounts due to the Director of Planning and Budgeting, Office of the Governor. If arrangements cannot be made to pay the amount due, then the amount shall be appropriated from the General Revenue Fund of the state as prescribed in Section 121.061, F.S.

(b) In the case of a county, municipality, independent special district, metropolitan planning organization, public charter school or public charter technical career center, the Administrator shall request the Department of Banking and Finance or the Department of Revenue to withhold the amount owed to the Florida Retirement System Trust Fund or the Social Security Contribution Trust Fund from any State funds allocated to the county, municipality, independent or special district, metropolitan planning organization, public charter school or public charter technical career center. If existing funds do not equal the amount owed to the trust funds, the Administrator shall certify to the local tax collector the amount owed, and the tax collector shall deduct the amount so certified from any taxes collected for the employer and pay the amount to the proper trust fund.

(6) Contributions may not be made prior to the service being performed.

(7) Payment of the required employee retirement contributions for other than current service shall be made in accordance with subsection 60S-3.002(4) and Rule 60S-3.0035, F.A.C.

(8) Retirement contributions shall be made on the salary paid to any retired member who is reemployed under the provisions of subsections 60S-4.012(2) and (3), F.A.C., in accordance with subsection 60S-3.003(6), F.A.C.

(9) The Division will transfer all contributions paid on behalf of the members of the FRS Pension Plan and the participants of the FRS Investment Plan to the appropriate trust funds or third party administrator, as required in Sections 121.72, 121.73, 121.74, 121.75 and 121.76, F.S.

Rulemaking Authority 121.031 FS. Law Implemented 121.052(14), 121.055(3), 121.061, 121.071(3), (5), 121.091(7), (9), 121.113, 121.71, 121.72, 121.73, 121.74, 121.75, 121.76 FS. History–New 1-1-72, Amended 10-20-72, Repromulgated 12-31-74, Amended 7-1-79, 1-19-82, 10-12-82, 11-6-84, 9-24-85, Formerly 22B-3.11, Amended 5-15-91, Formerly 22B-3.011, Amended 12-30-99, 8-13-03, 4-5-12, 3-25-13.