The purpose and effect are to amend Division of Retirement rules to correspond with statutory changes up through the 2010 Legislative session and delete obsolete language.

 

DEPARTMENT OF MANAGEMENT SERVICES
Division of Retirement

RULE NO.: RULE TITLE:
60S-6.001: Definitions

PURPOSE AND EFFECT: The purpose and effect are to amend Division of Retirement rules to correspond with statutory changes up through the 2010 Legislative session and delete obsolete language.

SUMMARY: The amendments in this rule: clarify that the authority and responsibility for administration of the Florida Retirement System (FRS) Pension Plan rest with the Department of Management Services, Division of Retirement. Also, clarify the definitions of the terms “termination,” “gross compensation,” and “average final compensation”; establish the blended or uniform contribution rate for employers participating in the FRS; add and expand certain definitions as required by statute.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COST:

No State of Estimated Regulatory Cost was prepared. The agency has determined that this rule shall not have an effect on small businesses as defined by Section 288.703, Florida Statutes, nor on small counties or small cities as defined by Section 120.52, Florida statutes.

Any person who wishes to provide information regarding the statement of estimated costs or to provide a proposal for a lower regulatory cost alternative must do so in writing within 21 days of this notice.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimate regulatory costs or if no SERC is required, the information expressly relied upon and described herein:

Not required because there are no adverse impacts on economic growth, business competitiveness or regulatory costs of more than $1M in the aggregate within five years of implementation.

RULEMAKING AUTHORITY: 121.031, 121.052(7) FS.
LAW IMPLEMENTED: 121.021, 121.031, 121.051, 121.0515, 121.052, 121.091(5)(e), 112.215, 121.4501, 121.70, 943.22(2)(e) FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:

DATE AND TIME: November 4, 2011, 10:00 a.m., ET

PLACE: Division of Retirement of the Department of Management Services, Director’s Conference Room, Suite 208, 1317 Winewood Blvd., Bldg 8, Tallahassee, Florida 32399-1560

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Garry Green, Operations and Management Consultant Manager, Department of Management Services, Division of Retirement, 1317 Winewood Blvd., Bldg. 8, Tallahassee FL 32399-1560, [phone]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

60S-6.001 Definitions.

Whenever used in these rules, unless otherwise expressly stated, or unless the context or subject matter requires a different meaning, the following words and terms shall have the respective meanings indicated:

(1) ACCUMULATED ANNUAL LEAVE PAYMENT – Means any payment, made either during an employee’s employment or at termination or retirement, for leave accrued during such employee’s career and which was intended but never utilized by the employee for his or her personal use. General leave, which may be used for both sickness and vacation, is considered accumulated annual leave. When leave is initially accrued separately as annual leave or sick leave and later combined into a consolidated leave account, only the payment for that portion which represents annual leave shall be considered as compensation. If any single lump-sum annual leave payment, made anytime during a member’s employment, exceeds 500 hours, only a maximum of 500 hours of such annual leave payment shall be considered as compensation. Accumulated annual leave payments that may be included in the Average Final Compensation are limited to a combined total of 500 hours as provided in subsection (6).

(2) ACCUMULATED CONTRIBUTIONS – Means the sum of:

(a) A member’s contributions without interest subsequent to December 1, 1970;, and

(b) The single-sum amount the member would have received if he or she were covered by an existing system prior to December 1, 1970, and had terminated membership in such system on November 30, 1970; subject to reduction on account of benefit payments as provided under certain options.

(3) ACCUMULATED SICK LEAVE PAYMENT – Means leave accrued during an employee’s career which was intended for use in the event of sickness, injury or other health problems of a member or his or her family. General leave that which may be used for both sickness and vacation is not considered sick leave. When leave is initially accrued separately as annual leave or sick leave and later combined into a consolidated leave account, the payment thatwhich represents sick leave shall not be considered compensation. Payment for any accumulated sick leave shall not be considered compensation for retirement purposes and shall not be included in the Average Final Compensation.

(4) ADMINISTRATOR – Means the person charged with the responsibility and authority for administering the Florida Retirement System Pension Plan. Such person is the Secretary of the Department of Management Services. From July 1, 1970, through June 30, 1972, this term means the Director of the Division of Personnel and Retirement of the Department of Administration. On and after July 1, 1972, this term shall mean the Director of the Division of Retirement.

(5) ANNUAL COMPENSATION – Means the total compensation paid a member during a fiscal year. A year is 12 continuous months.

(6) AVERAGE FINAL COMPENSATION – Means the average of the 5 highest fiscal years of compensation for creditable service prior to retirement, termination or death calculated in accordance with subsection 60S-4.004(1), F.A.C.

(a) The average final compensation shall include:

1. Accumulated annual leave payments as defined in subsection 60S-6.001(1), F.A.C., not to exceed 500 hours,

2. All payments defined as compensation in subsection 60S-6.001(16), F.A.C.,

(b) The average final compensation shall not include:

1. Compensation paid to professional persons for special or particular services.

2. Payments made due to retirement or termination for accumulated sick leave as defined in subsection 60S-6.001(3), F.A.C.

3. Payments for annual leave in excess of 500 hours.

4. Bonuses as defined in subsection 60S-6.001(11), F.A.C.

5. Third party payments made on and after July 1, 1990.

6. Automobile allowances.

7. Housing allowances.

8. Uniform or tool allowances.

9. Fair market value of employer-provided vehicles or reimbursement to employee of market value of employer-provided vehicles.

10. Stipends in lieu of an employer-furnished vehicle.

11. Stipends for reimbursement of parking expenses.

12. Value of meals and lodgings and/or reimbursement for the same.

13. Refunds of insurance premiums paid by the employee provided that the employee does not file an insurance claim.

14. Employer payments for a Health and Life Insurance Program in addition to the base salary.

15. Cash payments paid under a flexible benefits program when the employee’s base salary has not been increased.

(7) through (9) No change.

(10) BLENDED OR UNIFORM CONTRIBUTION RATE – Means the single contribution rate required for each class of membership in the Florida Retirement System, which shall be sufficient to fund both Part I and Part II of the Florida Retirement System in an actuarially sound manner, as provided in Part III of Chapter 121, F.S.

(11)(10) BONUS – Means a payment made in addition to an employee’s regular or overtime salary that is usually non-recurring, does not increase the employee’s base rate of pay and includes no commitment for payment in a subsequent year. Such payments are not considered compensation and, effective July 1, 1989, shall not be reported to the Division as salary, and retirement contributions shall not be made on such payments.

(a) A payment is a bonus if any one of the following applies apply:

1. The payments are not paid according to a formal written policy applying to all eligible employees equally; or

2. The payments commence later than the eleventh year of employment; or

3. The payments are not based on permanent eligibility; or

4. The payments are paid less than annually.;

(b) Bonuses shall include but not be limited to the following:

1. Exit bonus or severance pay;

2. Longevity payments made in conformance with the provisions of paragraph 60S-6.001(11)(a), F.A.C., above;

3. Salary increases granted due to an employee’s agreement to retire, including increases paid over several months or years prior to retirement;

4. Payments for accumulated overtime or compensatory time, reserve time, or holiday time worked, if not made within 11 months of the month in which the work was performed; and

5. Lump sum payments in recognition of employees’ accomplishments.

(12)(11) BREAK IN SERVICE – Means an interruption in the continuous service of a member where any of the following occurs:

(a) The member terminates his or her employment in a position covered by the Florida Retirement System or any existing retirement system and receives a refund of the accumulated contributions he or she has made, even though the member later claims prior service and repays the refunded contributions plus interest.

(b) The member has an absence of one calendar month or more from an employer’s payroll except for periods of absence where an employer-employee relationship continues to exist and such absence is creditable under the Florida Retirement System or one of the existing systems.

(13)(12) CALENDAR MONTH – Means one of the 12 divisions of a year as determined by the Gregorian calendar (e.g., January, April, etc.).

(14)(13) CALENDAR YEAR – Means a period of time beginning January 1 and ending on the following December 31.

(15)(14) CLOSED RETIREMENT SYSTEM – Means “existing systems” – the retirement systems which existed prior to December 1, 1970, and which were consolidated by Chapter 121, F.S. From December 1, 1970, through June 30, 1972, this term means the State and County Officers and Employees’ Retirement System, the Teachers’ Retirement System and the Highway Patrol Pension System created by Chapters 122, 238, and 321, F.S., respectively. On and after July 1, 1972, this term also includes shall include the Judicial Retirement System established by Chapter 123, F.S. On and after July 1, 2007, this term also includes the Institute of Food and Agricultural Sciences Supplemental Retirement Program, established by Section 121.40, F.S.

(16)(15) COMPENSATION OR GROSS COMPENSATION –

(a) Compensation means the total gross monthly salary paid a member by his or her employer for work performed arising from that employment, including:

1. Overtime payments, except as provided in subparagraph 60S-6.001(11)(b)4., F.A.C.;

2. Accumulated annual leave payments, as defined in subsection 60S-6.001(1), F.A.C.;

3. Payments in addition to the employee’s base rate of pay if all the following apply:

a. The payments are paid according to a formal written policy that applies to all eligible employees equally; and

b. The policy provides that payments shall commence not later than the eleventh year of employment; and

c. The payments are paid for as long as the employee continues his or her employment; and

d. The payments are paid at least annually.

4. Amounts withheld for tax-sheltered annuities or deferred compensation programs, or any other type of salary reduction plan authorized under the Internal Revenue Code;

5. Payments, whether made annually or in 12 or 26 equal payments within a 12-month period, made in lieu of a permanent increase in the base rate of pay when the member’s base pay is at the maximum of his or her pay range. When a portion of a member’s annual increase raises his or her base pay to the maximum of his or her pay range, and the excess is paid as a lump sum payment, such lump sum payment shall be compensation for retirement purposes.;

6. Salary supplements paid on or after July 1, 2002 and prior to July 1 2008, to teachers under the Excellent Teaching Program or the Florida Mentor Teacher Pilot Program, as provided in and subject to the requirements of Sections 1012.72 and 1012.73, F.S.

(b) Compensation shall not include:

1. Any bonuses or other payments prohibited from inclusion in the member’s average final compensation as defined in paragraph 60S-6.001(6)(b), F.A.C.;

2. Any public funds paid by an employer into an employee’s salary reduction, deferred compensation, or tax-sheltered annuity program on or after July 1, 1990 (the date as of which all employers were notified in writing by the Division to cease making contributions based on such amounts). However, if an employer was notified in writing by the Division to cease making such contributions as of a different date, that employer shall be subject to the requirements of such written notice.

3. Any amounts in excess of the Internal Revenue Code (IRC) Section 401(a)(17), F.S., limitation as follows:

a. For any person who first became a member before July 1, 1996, compensation for all plan years beginning on or after July 1, 1990, shall not include any amounts in excess of the maximum of $200,000 in 1989, adjusted for changes in the cost of living thereafter.;

b. For any person who first became a member on or after July 1, 1996, compensation for any plan year shall not include any amounts in excess of the maximum of $150,000 in 1996, adjusted for changes in the cost of living as published by the Internal Revenue Service only in increments of $10,000.

(17)(16) CONTINUOUS SERVICE – Means service in a regularly established position beginning with the first day of employment with an employer covered under a state-administered retirement system consolidated herein and continuing for as long as the member remains in an employer-employee relationship with an employer covered under the system. Continuous service shall cease if the member has a break in service as defined in subsection 60S-6.001(12), F.A.C. Continuous service shall also include past service provided such service is continuous within this definition.

The following types of creditable service shall be considered continuous if the specific criteria listed for each is met:

(a) Military Service Subsequent to Membership in a Retirement System: Military service which interrupts employment and for which retirement credit has been granted under an existing system or the Florida Retirement System pursuant to subsection 60S-2.005(1), F.A.C., shall constitute continuous service.

(b) Leave of Absence Credit: A leave of absence for which credit has been granted under the Florida Retirement System pursuant to Rule 60S-2.006, F.A.C., or an existing retirement system shall not constitute a break in continuous service.

(c) Past Service: Past service as defined by subsection 60S-6.001(46) 60S-6.001(42), F.A.C., may be claimed as continuous creditable service, if such service was, in fact, continuous within this definition.

(d) Workers’ Compensation Service: Creditable service received in accordance with Rule 60S-2.012, F.A.C., for periods during which workers’ compensation payments are received shall be considered continuous provided there has been no break in the continuous nature of the member’s service other than for the period for which workers’ compensation payments were received.

(e) Law Enforcement Service: A law enforcement officer who meets the criteria specified in Rule 60S-1.0051, F.A.C., and who is laid off from his position as provided in Section 110.203(24), F.S., resigns his position under Chapter 122 or 321, F.S., or resigns his position to run for an elected office covered by Rule 60S-1.0051, shall be deemed to have continuous service provided he meets the criteria specified in paragraph 60S-2.002(5)(e), (f), or (g), F.A.C.

(f) Correctional Officer Service: A correctional officer who meets the criteria specified in Rule 60S-1.0053, F.A.C., and whose membership is terminated by privatization of a county detention facility shall be deemed to have continuous service provided he meets the criteria specified in paragraph 60S-2.002(5)(h), F.A.C.

(18)(17) COVERED EMPLOYMENT – Means employment in a regularly established position with an employer that participates in the Florida Retirement System.

(19)(18) COVERED GROUP – Means a city or independent special district or a unit thereof, a metropolitan planning organization, public charter school or a public charter technical career center that which is approved for Social Security coverage by the United States Secretary of Health and Human Services and approved by the Administrator for membership in the Florida Retirement System.

(20)(19) CREDITABLE SERVICE – Means the sum of a member’s past service, prior service, military service, workers’ compensation credit, future service, and all other service allowed within the provisions of Chapter 121, F.S., and these rules and regulations, provided that all required contributions have been paid and all other requirements have been met; however, in no case shall a member receive credit for more than a year’s service during any 12-month period. Service as applied to a teacher or a non-academic employee of a school board shall be based on contract years of employment or school term years of employment as provided in Chapters 122 and 238, F.S., rather than 12-month periods of employment.

(21)(20) DEATH IN LINE OF DUTY – Means death arising out of and in the actual performance of duty required by a member’s employment during his or her regularly scheduled working hours or irregular working hours as required by the employer.

(22)(21) DISABILITY – Means total and permanent disability by reason of a medically determinable physical or mental impairment that which prevents a person from rendering useful and efficient service as an officer or employee.

(a) Disability In-Line-of-Duty – Means disability resulting from an injury or illness arising out of and in the actual performance of duty required by a member’s employment during his or her regularly scheduled working hours or irregular working hours as required by the employer.

(b) Regular Disability – Means other than in-line-of-duty disability.

(23)(22) DEFERRED MONTHLY BENEFIT – A benefit to which a member or his or her designated beneficiary is entitled at the time the member terminates employment, but for which the member or his or her designated beneficiary chooses to postpone applying until a later date. Upon application, the deferred monthly benefit shall commence based on the actual service earned, the average final compensation at the time of termination and the member’s age at the time of application.

(24)(23) EARLY RETIREMENT AGE – Means the first day of the month following the date a member satisfies the service requirements for vesting as provided in paragraph 60S-4.003(1)(b), F.A.C., and elects to receive retirement benefits when the member has not attained normal retirement age as provided in paragraph 60S-4.003(1)(c), F.A.C. Such benefits shall be based on the average monthly compensation and creditable service as of the member’s early retirement date, and the benefit so computed shall be reduced by 5/12 of 1 percent for each complete month by which the early retirement age precedes his or her normal retirement age.

(25)(24) EFFECTIVE RETIREMENT DATE – Means the first day of the month in which retirement benefits begin to accrue as provided in Rule 60S-4.0035 or subsection 60S-11.001(5), F.A.C. 60S-11.001(3), F.A.C.

(26)(25) ELECTED OFFICERS’ CLASS MEMBER – Means any governor, lieutenant governor, cabinet officer, legislator, supreme court justice, district court of appeal judge, county court judge, circuit judge, state attorney, public defender or any elected county officer of a county, municipality or independent special district who participates in the Elected Officers’ Class of the Florida Retirement System in accordance with Rule 60S-1.0055, F.A.C.

(27)(26) EMPLOYER – Means any agency, branch, department, institution, university, institution of higher education, or board of the state, or any county agency, branch, department, board, district school board, or independent special district, metropolitan planning organization, public charter school or public charter technical career center of the state or any city of the state which participates in the system for the benefit of certain of its employees. This term shall also apply to any hospital, municipality or independent special district that withdrew from the Florida Retirement under Sections 121.051(2)(b) and 121.0511, F.S., until such time their last remaining employee who retained membership in the Florida Retirement System terminates employment.

(28)(27) EXISTING SYSTEMS – Means the retirement systems that which existed prior to December 1, 1970, and which were consolidated by Chapter 121, F.S. From December 1, 1970, through June 30, 1972, this term means the State and County Officers and Employees’ Retirement System, the Teachers’ Retirement System and the Highway Patrol Pension System created by Chapters 122, 238, and 321, F.S., respectively. On and after July 1, 1972, this term also includes shall include the Judicial Retirement System established by Chapter 123, F.S. On or after July 1, 2007, this term also includes the Institute of Food and Agricultural Sciences Supplemental Retirement Program, established by Section 121.40, F.S.

(29)(28) FISCAL YEAR – Means a period of time beginning July 1 and ending on the following June 30, both dates inclusive.

(30)(29) FUTURE SERVICE – Means service subsequent to the date of the member’s participation in the Florida Retirement System and may include authorized leaves of absence as provided in Rule 60S-2.006, F.A.C.

(31)(30) HIGHWAY PATROL PENSION SYSTEM – Means the retirement system established by Chapter 321, F.S., for all employees of the Department of Highway Safety and Motor Vehicles who have subscribed to the constitutional oath of office.

(32)(31) INITIAL BENEFIT – Means the first monthly retirement benefit payable to a retiree or beneficiary in accordance with the laws governing the determination of such benefit at time of retirement or death.

(33)(32) INDEPENDENT CONTRACTOR – Means an individual who is not subject to the control and direction of the employer for whom work is being performed, with respect not only to what shall be done but also to how it shall be done. If the employer has the right to exert such control, an employee-employer relationship exists and the person is an employee and not an independent contractor. The Division has adopted the following factors as guidelines to aid in determining whether an individual is an employee or an independent contractor. The weight given each factor is not always the same and varies depending on the particular situation.

(a) INSTRUCTIONS: An employee must comply with instructions from his or her employer about when, where, and how to work. The instructions may be oral or may be in the form of manuals or written procedures that which show how the desired result is to be accomplished. Even if no actual instructions are given, the control factor is present if the employer has the right to give instructions.

(b) TRAINING: An employee is trained to perform services in a particular manner. This is relevant when the skills and experience which would be used as an independent contractor were gained as a result of previous employment. Independent contractors ordinarily use their own methods and receive no training from the purchasers of their services.

(c) INTEGRATION: An employee’s services are integrated into the business operations because the services are critical and essential to the success or continuation of an agency’s progress/operation. This shows that the employee is subject to direction and control.

(d) SERVICES RENDERED PERSONALLY: An employee renders services personally. This shows that the employer is interested in the methods as well as the results. Lack of employer control may be indicated when a person has the right to hire a substitute without the employer’s knowledge or approval.

(e) HIRING ASSISTANTS: An employee works for an employer who hires, supervises, and pays assistants. An independent contractor hires, supervises, and pays assistants under a contract that requires him or her to provide materials and labor and to be responsible only for the result.

(f) CONTINUING RELATIONSHIP: An employee has a continuing relationship with an employer. A continuing relationship may exist where work is performed at frequently recurring, although irregular intervals.

(g) SET HOURS OF WORK: An employee usually has set hours of work established by an employer. An independent contractor is the master of his or her own time and works on his or her own schedule.

(h) FULL-TIME OR PART-TIME WORK: An employee may work either full-time or part-time for an employer. Full-time does not necessarily mean an 8-hour day or a 5 or 6-day week. Its meanings may vary with the intent of the parties, the nature of the occupation and customs in the locality. These conditions should be considered in defining “full-time.” An independent contractor can work when and for whom he or she chooses.

(i) WORK DONE ON PREMISES: An employee works on the premises of an employer, or works on a route or at a location designated by an employer. The performance of work on the employer’s premises is not controlling in itself; however, it does imply that the employer has control over the employee. Work performed off the employer’s premises does indicate some freedom from control; however, it does not in itself mean the worker is not an employee.

(j) ORDER OR SEQUENCE OF SERVICES: An employee generally performs services in the order or sequence set by an employer. This shows that the employee is subject to direction and control of the employer.

(k) REPORTS: An employee submits oral or written reports to an employer. This shows that the employee must account to the employer for his or her actions.

(l) PAYMENTS: An employee is usually paid by the hour, week, or month. An independent contractor is paid periodically (usually a percent of the total payment) by the job or on a straight commission.

(m) EXPENSES: An employee’s business and/or travel expenses are paid by an employer. This shows that the employer is in a position to control expenses and therefore the employee is subject to regulations and control.

(n) TOOLS AND MATERIALS: An employee is furnished significant tools, materials, and other equipment by an employer. An independent contractor usually provides his or her own tools, materials, etc.

(o) INVESTMENT: An employee is usually furnished the necessary facilities. An independent contractor has a significant investment in the facilities he or she uses in performing services for someone else.

(p) PROFIT OR LOSS: An employee performs the services for an agreed upon wage and is not in a position to realize a profit or suffer a loss as a result of his or her services. An independent contractor can make a profit or suffer loss. Profit or loss implies the use of capital by the individual in an independent business of his or her own.

(q) WORKS FOR MORE THAN ONE PERSON OR FIRM: An employee usually works for one organization. However, a person may work for a number of people or organizations and still be an employee of one or all of them. An independent contractor provides his or her services to two or more unrelated persons or firms at the same time.

(r) OFFERS SERVICES TO GENERAL PUBLIC: An independent contractor makes his or her services available to the general public. This can be done in a number of ways: Having his/her own office and assistants, hanging out a “shingle”, holding business licenses, having listings in business directories and telephone directories, and advertising in newspapers, trade journals, etc.

(s) RIGHT TO TERMINATE EMPLOYMENT: An employee can be fired by an employer. An independent contractor cannot be fired so long as he or she produces a result that meets the specifications of the contract. An independent contractor can be terminated but usually he or she will be entitled to damages for expenses incurred, lost profit, etc.

(t) RIGHT TO QUIT: An employee can quit his or her job at any time without incurring liability. An independent contractor usually agrees to complete a specific job and is responsible for its satisfactory completion, or is legally obligated to make good for failure to complete it.

(34) INDEPENDENT SPECIAL DISTRICT – Means an independent local unit of special-purpose, as opposed to general-purpose, government within a limited boundary, created by general law, special act, local ordinance, or by rule of the Governor and Cabinet. The special purpose or purposes of special districts are implemented by specialized functions and related prescribed powers. The term does not include a school district, a community college district, a special improvement district created pursuant to Section 285.17, F.S., a municipal service taxing or benefit unit as specified in Section 125.01, F.S., or a board that provides electrical service and which is a political subdivision of a municipality or is part of a municipality. The membership of the governing body of an independent special district shall not be identical to, appointed by, or subject to removal by the governing body of a single county or a single municipality; nor shall the budget of an independent special district require approval by such a governing body. A district that includes more than one county is an independent special district.

(35) INVESTMENT PLAN – Means the Florida Retirement System defined contribution plan, otherwise known as the Public Employee Optional Retirement Program, as provided in Part II of Chapter 121, F.S.

(36)(33) JOINT ANNUITANT – Means:

(a) The spouse; or

(b) A natural or legally adopted child who is either under 25 or physically or mentally disabled and incapable of self-support, regardless of age, or any other person under 25 for whom the member is the legal guardian and who is financially dependent for no less than one-half of his or her support from the member at retirement or at the time of death of such member, whichever occurs first; or

(c) a parent, or grandparent, or a person age 25 or older for whom the member is the legal guardian, provided that such parent, grandparent, or other person is financially dependent for no less than one-half of his or her support from the deceased member at retirement or at time of the death of such member, whichever occurs first. See also paragraph 60S-4.011(5)(c), F.A.C.

(37)(34) JUDICIAL RETIREMENT SYSTEM – Means the retirement system established by Chapter 123, F.S., for supreme court justices, district court of appeal judges, and circuit judges of the state, consisting of:

(a) Division A – Members of the Judicial Retirement System who are members as of July 1, 1963, and who have not elected to become members of Division B.

(b) Division B – Members of the Judicial Retirement System who are members as of July 1, 1963, who elected to become members of Division B and receive social security coverage.

(c) Division C – Members of the Judicial Retirement System who became members on or after July 1, 1963.

(38)(35) LEAVE OF ABSENCE (Authorized Leave of Absence) – Means a leave of absence from employment under the Florida Retirement System, subsequent to November 30, 1970, for which retirement credit may be received in accordance with Rule 60S-2.006, F.A.C.

(39)(36) LOCAL AGENCY EMPLOYER – Means any of the following entities that which participate in the system for the benefit of certain of its employees: The the board of county commissioners or other legislative governing body of a county, including that of a consolidated or metropolitan government; a clerk of the circuit court; a sheriff, property appraiser, tax collector, or supervisor of elections, provided that such officer is elected or has been appointed to fill a vacancy in an elective office; a community college board of trustees or district school board; a public charter school; a public charter technical career center;, the governing body of any city or independent special district of the state; a metropolitan planning organization; or the governing body of any council, commission, authority, or other governmental entity that is created or authorized by general or special law, and that which is independent of any other local agency employer. This term shall also apply to any hospital, municipality or independent special district that withdrew from the Florida Retirement under Sections 121.051(2)(b) and 121.0511, F.S., until such time their last remaining employee who retained membership in the Florida Retirement System terminates employment.

(40)(37) MEMBER – Means any officer or employee who is covered by the provisions of the Florida Retirement System, including any officer or employee who is on an approved leave of absence.

(41) METROPOLITAN PLANNING ORGANIZATION OR MPO – Means an entity created by an interlocal agreement pursuant to Section 339.175, F.S., or any other entity created pursuant to Section 339.175, F.S., that has applied for and been approved for participation in the Florida Retirement System.

(42)(38) NON-COVERED EMPLOYER – Means any public or private employer that does not participate in the Florida Retirement System.

(43)(39) NORMAL RETIREMENT AGE OR DATE – Means the time at which a member is first eligible to receive a normal retirement benefit without actuarial reduction to such benefit because of early retirement as provided in subsection 60S‑4.003(23), F.A.C. paragraph 60S-4.003(1)(b), F.A.C.

(44)(40) OFFICER OR EMPLOYEE – Means any person receiving compensation for work performed in a regularly established position with any agency, branch, department, institution, university, institution of higher education, or board of the state, or any county agency, branch department, board, district school board, or any city or independent special district, or metropolitan planning organization, or participating public charter school or public charter technical career center of the state that which participates in the Florida Retirement System. (See definition of “regularly established position”.)

(45)(41) PARTICIPATION IN THE FLORIDA RETIREMENT SYSTEM – Means being subject to the provisions of the Florida Retirement System and making the contributions required by Chapter 121, F.S., and these rules and regulations.

(46)(42) PAST SERVICE – Means the number of years, complete months and any fractional part of a month of employment during which an employee is in the active employ of a city, independent or special district, metropolitan planning organization, public charter school or public charter technical career center prior to the time such city, independent or special district, metropolitan planning organization, public charter school or public charter technical career center becomes a covered group under the Florida Retirement System, or service prior to January 1, 1968, in the Cuban Refugee Assistance Program administered by the Florida State Department of Public Welfare or other service as described in Rule 60S-2.003, F.A.C. Credit for past Past service with a city or special district can be purchased in accordance with applicable conditions and circumstances as set forth in Rule 60S-2.003, F.A.C. claimed as creditable service only by a member who was in the active employ of said city or special district at the time the city or special district becomes a covered group under the Florida Retirement System. Credit for service in the Cuban Refugee Assistance Program may be granted only if credit for such service has not or will not be granted under any other state or federal retirement or pension system.

(47)(43) PAYEE – Means a retiree or beneficiary of a retiree who is receiving a retirement benefit payment.

(48) PENSION PLAN – Means the Florida Retirement System defined benefit plan as provided in Part I of Chapter 121, F.S.

(49)(44) PHASED RETIREMENT PROGRAM – Means a program contracted by the governing board of a participating university or community college in which a retired member may be reemployed in a faculty position provided:

(a) The member retired and met the definition of termination as provided in subsection 60S-6.001(69), F.A.C. in this section;

(b) The retired member is reemployed for not more than 780 hours during the first 12 months of retirement; and

(c) The retired member is reemployed with the university or community college from which he or she retired.

(50) PLAN CHOICE ADMINISTRATOR or THIRD-PARTY ADMINISTRATOR – Means the entity hired by the State Board of Administration, pursuant to Section 121.4501(8)(b)1., F.S., to provide administrative services for the Florida Retirement System Investment Plan and is responsible for processing enrollment forms received from employees making a retirement plan choice either by form, by telephone, or on the MyFRS.com website (www.MyFRS.com).

(51)(45) PLAN YEAR – Means the period of time beginning July 1 and ending on the following June 30, both dates inclusive, for all state-administered retirement systems.

(52)(46) PREVIOUS SERVICE – Means the number of years, complete months and any fractional part of a month, recognized and credited by an employer and approved by the Administrator, of service under one of the retirement systems established by Chapter 121, 122, 123, 238, or 321, F.S., on which the required contributions were paid at the member’s termination of employment, and for which the member has received no refund of contributions.

(53)(47) PRIOR SERVICE – Means employment in a regularly established position with an agency participating in a state administered retirement system in Florida for which no contributions were paid or contributions were withdrawn service as described in subsection 60S-2.004(1), F.A.C.

(48) PRIVATIZATION – Means the transfer of control or ownership of a county detention facility by contract with a private entity pursuant to Section 951.062, F.S.

(54) PUBLIC CHARTER SCHOOL – Means an public school established pursuant to Section 1002.33, F.S., which is established as a public employer in its charter as provided in subparagraph 1002.33(12)(i), F.S., that has applied for and been approved for participation in the Florida Retirement System.

(55) PUBLIC CHARTER TECHNICAL CAREER CENTER– Means a public school or a public technical center operated under a public charter granted by a district school board or community college board of trustees or a consortium, including one or more district school boards and community college boards of trustees, that includes the district in which the facility is located, pursuant to Section 1002.34(3)(a), F.S., that has applied for and been approved for participation in the Florida Retirement System.

(56)(49) PUBLIC OFFICE – Means an office created by the Constitution of the State of Florida or by the Legislature pursuant thereto, which must be filled by vote of the electorate.

(57)(50) REGULAR CLASS MEMBER – Means any member of the Florida Retirement System other than a Special Risk Class member, a Special Risk Administrative Support Class member, an Elected Officers’ Class member, or a Senior Management Service Class member.

(58)(51) REGULARLY ESTABLISHED POSITION – A regularly established position in a State agency is a position which is authorized and established pursuant to law and is compensated from a salaries and benefits appropriation pursuant to paragraphs Sections 216.011(1)(c) and (dd) (x)1. and 2., F.S., or an established position which is authorized pursuant to Sections 216.262(1)(a) and (b), F.S., and is compensated from a salaries and benefit appropriation pursuant to Sections 216.011(c) and 216.011(1)(dd), F.S., as defined in Section 216.011(mm), F.S. account in accordance with Rule 3A-10.031, F.A.C. A regularly established position in a local agency (district school board, county agency, community college, participating city, independent and special district, metropolitan planning organization, public charter school or charter technical career center) is an employment position which will be in existence for a period beyond 6 consecutive calendar months, except as provided in paragraph 60S-1.004(5)(d), F.A.C.

(59)(52) RETIREE – Means a former member of one of the retirement systems established by Chapters 121, 122, 123, 238, and 321, F.S., who has terminated his or her employment and is receiving benefits from the system in which he or she was a member. This term also includes a person who retired and is receiving benefits under Section 112.05, F.S., and a DROP participant as provided in Chapter 60S-11, F.A.C., who has not terminated his or her employment.

(60)(53) SENIOR MANAGEMENT SERVICE CLASS MEMBER – Means any member who is eligible to participate in the Senior Management Service Class of the Florida Retirement System in accordance with Rule 60S-1.0057, F.A.C.

(54) SPECIAL DISTRICT – Means an independent local unit of special-purpose, as opposed to general-purpose, government within a limited boundary, created by general law, special act, local ordinance, or by rule of the Governor and Cabinet. The special purpose or purposes of special districts are implemented by specialized functions and related prescribed powers. The term does not include a school district, a community college district, a special improvement district created pursuant to Section 285.17, F.S., a municipal service taxing or benefit unit as specified in Section 125.01, F.S., or a board which provides electrical service and which is a political subdivision of a municipality or is part of a municipality. The membership of the governing body of an independent special district shall not be identical to, appointed by, or subject to removal by the governing body of a single county or a single municipality; nor shall the budget of an independent special district require approval by such a governing body. A district that includes more than one county is an independent special district.

(61)(55) SPECIAL RISK CLASS MEMBER – Prior to October 1, 1978, Special Risk Class member means any officer or employee receiving salary payments for work performed as a peace officer, law enforcement officer, policeman, highway patrolman, custodial employee at a correctional or detention facility, fireman or any other job in the field of law enforcement or fire protection; provided that the duties of such person are certified as hazardous by his or her employer and approved by the Division of Retirement.

(a) Effective October 1, 1978, Special Risk Class member shall mean any officer or employee employed as a law enforcement officer, firefighter or correctional officer who complies with the criteria set forth in Rules 60S-1.0051, 60S-1.0052, and 60S-1.0053, F.A.C., and is approved for Special Risk Class special risk membership by the Division of Retirement pursuant to Rule 60S-1.005, F.A.C.

(b) Effective October 1, 1999, Special Risk Class member shall also include officer or employee employed as an emergency medical technician or paramedic who complies with the criteria set forth in Rule 60S-1.00535, F.A.C., and is approved for Special Risk Class special risk membership by the Division of Retirement pursuant to Rule 60S-1.005, F.A.C.

(c) Effective January 1, 2001, Special Risk Class member shall also mean any officer or employee employed as a community-based correctional probation officer, and certain professional health care members employed by the Department of Corrections or the Department of Children and Family Services as provided in paragraph 60S-1.0053(2)(d), F.A.C.; and shall also mean certain professional health care workers employed by the Department of Corrections or the Department of Children and Family Services who meet the criteria set forth in Section 60S-1.00537, F.A.C.

(d) Effective July 1, 2001, Special Risk Class member shall also mean any officer or employee employed by the Department of Juvenile Justice who meets the criteria set forth in paragraph 60S-1.0053(2)(f), F.A.C.

(e) Effective October 1, 2005 through June 30, 2008, Special Risk Class member shall also mean certain forensic workers employed by either an agency which proclaims itself to be a law enforcement agency or a medical examiner’s office who meet the criteria set forth in subsection 60S-1.00539(1), F.A.C.

(f) Effective July 1, 2008, Special Risk Class member shall also mean certain forensic workers employed by the Department of Law Enforcement in the crime laboratory, or the Division of State Fire Marshal in the forensic laboratory or certain forensic workers employed by a local government law enforcement agency or medical examiner’s office who meet the criteria set forth in subsection 60S-1.00539(2), F.A.C.

(62)(56) STATE – Means the State of Florida.

(63)(57) STATE-ADMINISTERED RETIREMENT SYSTEM – Means any of the retirement systems administered by the Division of Retirement, Department of Management Services state Division of Retirement. These systems are the Florida Retirement System (including the State University Optional Retirement Program and the Senior Management Service Optional Annuity Program), Teachers’ Retirement System, State and County Officers and Employees’ Retirement System, Highway Patrol Pension System, and Judicial Retirement System and Institute of Food and Agricultural Sciences Supplemental Retirement Program.

(64)(58) STATE AND COUNTY OFFICERS AND EMPLOYEES' RETIREMENT SYSTEM – Means the retirement system established by Chapter 122, F.S., for all full-time officers or employees who receive compensation for employment or service from any agency, branch, department, institution, or branch of the state or any county of the state, or any independent special district of the state, except those members of a retirement system established by Chapters 123, 238, or 321, F.S., and those employees who were hired prior to July 1, 1947, and who rejected membership in a retirement system, which consists of:

(a) Division A – Consists of those members of the State and County Officers and Employees’ Retirement System who were employed prior to January 1, 1958, or those members who were reemployed subsequent to January 1, 1958, and allowed to remain in Division A.

(b) Division B – Consists of those members of the State and County Officers and Employees’ Retirement System who elected to become members of Division B or who were employed on or after January 1, 1958, or Metro Dade County Employees, employed on or after July 1, 1969.

(65)(59) SUBORDINATE OFFICER – Means a person who has been delegated by an officer the authority to exercise the sovereign power of a state, county, district, or municipality.

(66)(60) SUPPORT – Means the total amount spent to provide food, lodging, clothing, education, medical and dental care, transportation, and similar necessities for a person. Support shall include the person’s gross income and any payments received by the person from any other person or agency. Expenses related to all members of a household, must be divided by the number of members in the household.

(67)(61) TEACHERS’ RETIREMENT SYSTEM – Means the retirement system established by Chapter 238, F.S., for all full-time members of the teaching or professional staff and all certificated employees of any public school system of the State, and any tax-supported institution of higher learning of the State, and employees of the Department of Education of the State and employees of the Teachers’ Retirement System, and any county school superintendent of public instruction who holds a valid Florida teacher’s certificate. Only those members electing Plan E of the Teachers’ Retirement System were eligible to transfer to the Florida Retirement System.

Plan E – Consists of those members of the Teachers’ Retirement System who were employed on or after July 1, 1955, or who elected to transfer to Plan E from one of the original retirement plans.

(68)(62) TEMPORARY POSITION – A temporary position in a state agency is an employment position that which is compensated from an other personal services (OPS) account as provided for in Section 216.011(1)(dd)(x), F.S. A temporary position in a local agency is an employment position that which will exist for less than 6 consecutive calendar months, or an instructional position which is established with no guarantee of continuation beyond one term to teach in a community college, district school board public school or participating public charter school or participating public charter technical career center as provided in subparagraph 60S-1.004(5)(b)2., F.A.C., or an employment position that which is listed in sub-paragraph 60S-1.004(5)(b)3.(d), F.A.C., regardless of whether it will exist for 6 consecutive calendar months or more.

(69)(a)(63) TERMINATION – Termination occurs, except as provided in paragraph (b), when a member of the Florida Retirement System or an existing system ceases all employment relationships with all covered employers which includes employment relationships with an employer that withdrew under Sections 121.051(2)(b) and 121.0511, F.S. However: provided that the member shall not be reemployed by any such employer within the next calendar month.

1. For retirements without Deferred Retirement Optional Program (DROP) participation effective before July 1, 2010, if a member is employed by any such employer within the next calendar month, termination shall be deemed not to have occurred, A leave of absence shall constitute a continuation of the employment relationship except as provided in paragraph 60S-4.002(4)(c), F.A.C., for certain members retiring on disability. The Division of Retirement may request additional evidence of termination if available evidence is conflicting, for example, a copy of the member’s resignation letter, a copy of the advertised vacancy of the member’s position, evidence of payments to the member for unused annual and sick leave or of loss of unused annual and sick leave due to termination, or a copy of the employer’s termination document.

2. For retirements without DROP participation effective on or after July 1, 2010, if a member is employed by any such employer within the next 6 calendar months, termination shall be deemed not to have occurred. A leave of absence shall constitute a continuation of the employment relationship except as provided in paragraph 60S-4.002(4)(c), F.A.C., for certain members retiring on disability. The Division of Retirement may request additional evidence of termination if available evidence is conflicting, for example, a copy of the member’s resignation letter, a copy of the advertised vacancy of the member’s position, evidence of payments to the member for unused annual and sick leave or of loss of unused annual and sick leave due to termination, or a copy of the employer’s termination document.

(b) Termination for a member electing to participate in the DROP occurs when the program participant ceases all employment relationships with all covered employers, which includes employment relationships with an employer that withdrew under Sections 121.051(2)(b) and 121.0511, F.S., however:

1. For DROP termination dates occurring before July 1, 2010, if the participant is employed by any such employer within the next calendar month, termination will be deemed not to have occurred, except as provided in Sections 121.090(13)(b)4.c., F.S. A leave of absence shall constitute a continuation of the employment relationship.

2. For DROP termination dates occurring on or after July 1, 2010, if the participant is employed by any such employer within the next six calendar months, termination will be deemed not to have occurred, except as provided in Sections 121.090(13)(b)4.c., F.S. A leave of absence shall constitute a continuation of the employment relationship.

(70)(64) VESTED OR VESTING – The guarantee that a member is eligible to receive a future retirement benefit upon completion of the required years of creditable service for the employee’s class of membership even though the member may have terminated covered employment before reaching normal or early retirement age, as defined in this section. A member will lose vested rights to any creditable service for which a refund of contributions is received; or if required to forfeit benefits as provided in Section 121.091(5), F.S. Being vested does not entitle a member to a disability benefit based on a disability caused by an injury or disease that occurs after termination of covered employment.

(71)(65) WORK YEAR – Means the period of time an employee is required to work to receive a full year of retirement credit, as determined in subsection 60S-2.002(4), F.A.C.

(72)(66) WORKERS’ COMPENSATION CREDIT – Means retirement credit received by a member for a period during which he or she is eligible to receive or receives Workers’ Compensation payments in accordance with Rule 60S-2.012, F.A.C., for an illness or injury occurring during his or her employment as a member.

(67) PENSION PLAN – Means the Florida Retirement System defined benefit plan as provided in Part I of Chapter 121, F.S.

(68) INVESTMENT PLAN – Means the Florida Retirement System defined contribution plan, otherwise known as the Public Employee Optional Retirement Program, as provided in Part II of Chapter 121, F.S.

(69) BLENDED OR UNIFORM CONTRIBUTION RATE – Means the single contribution rate required for each class of membership in the Florida Retirement System, which shall be sufficient to fund both Part I and Part II of the Florida Retirement System in an actuarially sound manner, as provided in Part III of Chapter 121, F.S.

Rulemaking Specific Authority 121.031, 121.052(7) FS. Law Implemented 121.021, 121.021(39), 121.031, 121.051, 121.051(2)(b)6., 121.0511(6), 121.0515, 121.052, 121.091(5)(e), 112.215, 121.4501, 121.70, 943.22(2)(e) FS. History–New 1-1-72, Amended 10-20-72, 12-31-74, 1-16-77, 10-3-78, 7-1-79, 8-26-81, 1-19-82, 9-9-82, 10-12-82, 1-18-83, 2-6-84, 11-6-84, 4-17-85, Formerly 22B-6.01, Amended 2-4-86, 1-12-87, 3-11-87, 2-7-89, 9-5-90, 5-15-91, 11-14-91, Formerly 22B-6.001, Amended 1-25-94, 8-4-94, 4-5-95, 3-12-96, 7-4-96, 12-12-96, 2-24-99, 8-13-03,_______.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Sarabeth Snuggs, Director, Division of Retirement

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: John P. Miles, Secretary, Department of Management Services

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: July 20, 2011

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: July 18, 2010, Vol. 36/24