Care and Maintenance Trust Fund Withdrawals

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Funeral, Cemetery, and Consumer Services

RULE NO.:RULE TITLE:

69K-7.0012Care and Maintenance Trust Fund Withdrawals

 

NOTICE OF CHANGE

Notice is hereby given that the following changes have been made to the proposed rule in accordance with subparagraph 120.54(3)(d)1., F.S., published in Vol. 42 No. 119, June 20, 2016 issue of the Florida Administrative Register and Vol. 42 No. 157, August 12, 2016 issue of the Florida Administrative Register.

The change is in response to written comments submitted by the staff of the Joint Administrative Procedures Committee in a letter dated August 23, 2016. The changes are as follows:

 

69K-7.0012 Care and Maintenance Trust Fund Withdrawals

(1) No change.

(2) No change.

(3) Calculation of distribution under total return withdrawal method.

(a) through (d) No change.

(e) Application of subsection 497.2675(2)(b) l. and 2., F.S.

1. through 2. No change.

3. The application of subsection 497.2675(2)(b) 1. and 2., F.S, are illustrated in the examples below.

Example A

(a) No change.

 

Table A l

	2014	2015	2016
Beginning market value Principal addition	$100	$102.00	$104.20
	2.00 + 2.20	2.20
FMV for averaging purposes	$104.20	$104.20	$104.20

The average fair market value for the 2016 distribution equals $104.20.

 

(b) No change.

(c) No change.

Table A2

	2015	2016	2017
Beginning market value	$102.00	$104.20	$106.35
Deposits to trust	2.20 + 2.15	2.15
FMV for averaging purposes	$106.35	$106.35	$106.35

The average fair market value for the 2017 distribution equals $106.35.

Example B

(a) No change.

Table B l

	2014	2015	2016
Beginning market value	$100	$102.00	$99.20
Deposits to trust	2.00 + 2.20	2.20
Extraordinary distribution	(5.00)	(5.00)
FMV for averaging purposes	$99.20	$99.20	$99.20

The average fair market value for the 2016 distribution equals $99.20.

(b) No change.

(c) No change.

Table B2

	2015	201 6	2017
Beginning market value	$102.00	$99.20	$101.35
Deposits to trust	2.20 + 2.15	2.15
Extraordinary distribution	(5.00)
FMV for averaging purposes	$101.35	$101.35	$101.35

The average fair market value for the 2017 distribution equals $101.35.

Example C

(a) No change.

Table C l

	2014	2015	2016		Avg FMV
Beginning market value	$100	$103.00	$1 10
Deposits to trust	2.00 + 2.20	2.20
ordinary distribution	(5.00)	(5.00)		$1 10
FMV for averaging purposes	$99.20	$100.20	$110.00		$103.13

The average fair market value for the 2016 distribution equals $103 .13.

(b) No change.

Table C2

	2015	201 6	2017	Avg FMV
Beginning market value	$103.00	$110	$115
Deposits to trust	2.20 + 2.15	2.15
Extraordinary distribution	(5.00)
FMV for averaging purposes	$102.35	$112.15	$115	$109.83

The average fair market value for the 2017 distribution equals $109 .83.

(4) through (5) No change

(6) Monitoring Trust Fair Market Value; action or adverse trends.

(a) The Division shall monitor the fair market value of care and maintenance trust funds as reported by trustees in annual trust reports. If the Division shall detects that the ending fair market value of the trust for the most recent calendar year has decreased as compared to the average ending balance of the trust for the over the three most recent calendar years, the Division shall may conduct such investigation of the matter and may thereafter set the matter for review and action by the Board at a regularly scheduled meeting of the Board, and shall provide the licensee with 30 days advance notice that the matter will be set before the Board.  The Board shall thereupon review the matter and for the protection of the care and maintenance trust fund may order any one or a combination of the following corrective measures as the Board finds appropriate for the protection of the care and maintenance trust fund:

1. through 3. No change.

(b) No change.

(7) through (8) No change.

Rulemaking Authority 497.103, 497.2675 FS, Law Implemented 497.266, 497.2675, 497.268, 497.269 F.S., History-New__________________.