To create a rule to address the method by which local government retirement systems or plans submit biennial reports required by section 112.662, F.S. to the Department of Management Services, and to amend existing rules.....

 

DEPARTMENT OF MANAGEMENT SERVICES

Division of Retirement - Local Retirement

RULE NOS.:RULE TITLES:

60T-1.002Definitions

60T-1.008Biennial Report of Decision-Making in Voting and Adherence to Fiduciary Standards

PURPOSE AND EFFECT: To create a rule to address the method by which local government retirement systems or plans submit biennial reports required by section 112.662, F.S. to the Department of Management Services, and to amend existing rules.

SUMMARY: These rules address the biennial report which must be filed by local government retirement systems or plans by December 15 in each odd-numbered year detailing the plan’s governance policies concerning decision-making in vote decisions and adherence to fiduciary standards as required by section 112.662, F.S.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: the agency, utilizing the expertise of division personnel, determined no SERC was required after completing the SERC checklist analysis.

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

RULEMAKING AUTHORITY: 112.662, 112.665(1), F.S.

LAW IMPLEMENTED: 112.63, 112.64, 112.661, 112.662, 112.664, 112.665, F.S.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Keith Brinkman, 3189 S Blair Stone Road, Tallahassee, Florida 32399, [e-mail], [phone]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

60T-1.002 Definitions.

The words and phrases in this chapter shall be construed according to their plain meaning, in light of the context and subject matter, unless expressly defined otherwise in this rule, this chapter or in Section 112.625, F.S.

(1) – (3) No change.

(4) “Local Retirement System or Plan” means any employee pension benefit plan supported in whole or in part by public funds which is not specifically exempt by Section 112.625(8) 112.625(1), F.S.

(5) No change.

Rulemaking Authority 112.665(1) FS. Law Implemented 112.63, 112.64, 112.661, 112.664, 112.665 FS. History–New 5-6-81, Amended 9-19-83, Formerly 22D-1.02, Amended 11-14-91, Formerly 22D-1.002, Amended 7-16-15, [date].

 

60T-1.008 Biennial Report of Decision-Making in Voting and Adherence to Fiduciary Standards.

(1) By December 15 of each odd-numbered year, each Local Retirement System or Plan shall submit a comprehensive report to the Division which shall include:

a. A detailed description of the Local Retirement System or Plan’s governance policies concerning decision-making in vote decisions; and

b. A review of adherence to the fiduciary standards required in section 112.662, F.S., including the exercise of shareholder rights, since the previous comprehensive report submission.

(2) The comprehensive report shall be saved in a portable document format (.pdf) file and submitted electronically via the Division’s online web portal https://frs.fl.gov/#/local-retirement/comprehensive-report created for this purpose. At the time of submission of the report, the Local Retirement System or Plan shall indicate if it has complied with all the requirements set forth in section 112.662, F.S.

Rulemaking Authority 112.662 FS. Law Implemented 112.662 FS. History–New [date]

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Keith Brinkman, Bureau Chief, Department of Management Services

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Pedro Allende, Secretary, Department of Management Services

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: 10/16/2023

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: 10/04/2023