Amending the rules of the Division of Retirement to correspond with statutory changes up through the 2012 Legislative session.

 

DEPARTMENT OF MANAGEMENT SERVICES
Division of Retirement

RULE NO.: RULE TITLE:
60S-6.001: Definitions
PURPOSE AND EFFECT: Amending the rules of the Division of Retirement to correspond with statutory changes up through the 2012 Legislative session.
SUMMARY: The amendments set forth amend the definitions of Average Final Compensation, Covered Group, Employer, Investment Plan, Local Agency Employer, Normal Retirement Age or Date, Officer or Employee, Past Service, Regularly Established Position, Temporary Position and Termination in accordance with statutory changes to these definitions resulting from chapter law 2011-68 and 2012-126.
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: 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.
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: 121.031, 121.052(14) FS.
LAW IMPLEMENTED: 121.021, 121.031, 121.051, 121.0511(6), 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(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):
DATE AND TIME: January 4, 2013, 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
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 48 hours before the workshop/meeting by contacting: Richard Clifford, Senior Benefits Analyst, Division of Retirement, Department of Management Services at [phone] or via e-mail at [e-mail]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
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) through (5) No change.

(6) AVERAGE FINAL COMPENSATION – For members initially enrolled in the Florida Retirement System before July 1, 2011, average final compensation means 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. For members initially enrolled in the Florida Retirement System on or after July 1, 2011, average final compensation means the average of the 8 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) through (b) No change.

(7) through (18)  No change.

(19) COVERED GROUP – Means a municipality city or independent special district or a unit thereof, a metropolitan planning organization, public charter school or a public charter technical career center that 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) through (26) No change.

(27) 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 municipality 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) through (34) No change.

(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) through (38) No change.

(39) LOCAL AGENCY EMPLOYER – Means any of the following entities that participate in the system for the benefit of certain of its employees: 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 municipality city or independent special district of the state; a metropolitan planning organzation; 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 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) through (42) No change.

(43) 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 subparagraph 60S-4.003(1)(c)1.subsection 60S-4.003(23), F.A.C.

(44) 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 municipality city or independent special district, or metropolitan planning organization, or participating public charter school or public charter technical career center of the state that participates in the Florida Retirement System. (See definition of “regularly established position”.)

(45) No change.

(46) 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 municipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center prior to the time such municipalitycity, independent 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 service can be purchased in accordance with applicable conditions and circumstances as set forth in Rule 60S-2.003, F.A.C.

(47) through (57) No change.

(58) REGULARLY ESTABLISHED POSITION – A regularly established position in a State agency is a position as defined in Section 121.021(52)(a), F.S. which is authorized and established pursuant to law and is compensated from a salaries and benefits appropriation pursuant to Sections 216.011(1)(c) and (dd), 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(1)(c) and (dd), F.S., as defined in Section 216.011(1)(mm), F.S. A regularly established position in a local agency (district school board, county agency, Florida College System Institutioncommunity college, participating muncipalitycity, independent special district, metropolitan planning organization, public charter school or charter technical career center) is an employment position as defined in Section 121.021(52)(b), F.S, except, effective October 1, 2012, a regularly established position in a water management district operating pursuant to chapter 373, F.S., is a position as defined in Section 121.021(52)(c), F.S. 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) through (67) No change.

(68) TEMPORARY POSITION – A temporary position in a state agency is an employment position as defined in Section 121.021(53)(a), F.S. that is compensated from an other personal services (OPS) account as provided for in Section 216.011(1)(dd), F.S. A temporary position in a local agency is an employment position as defined in Section 121.021(53)(b), F.S., except, effective October 1, 2012, a temporary position in a water management district operating pursuant to chapter 373, F.S., is a position as defined in Section 121.021(53)(c), F.S.that 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 is listed in subparagraph 60S-1.004(5)(b)3., F.A.C., regardless of whether it will exist for 6 consecutive calendar months or more

(69)(a) TERMINATION – Termination occurs, except as provided in paragraph (b) and (c), 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:

1. through 2. No change.

(b) No change.

(c) Effective July 1, 2011, termination for a member receiving a refund of employee contributions occurs when a member ceases all employment relationships with participating employers for 3 calendar months. A leave of absence constitutes a continuation of the employment relationship.

(70) through (72) No change.

Rulemaking Authority 121.031, 121.052(14) FS. Law Implemented 121.021, 121.031, 121.051, 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, 4-5-12,__________.

NAME OF PERSON ORIGINATING PROPOSED RULE: Sarabeth Snuggs, Retirement Director
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Craig J. Nichols, Secretary
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: November 08, 2012
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: October 19, 2012, Vol. 38/54