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

 

DEPARTMENT OF MANAGEMENT SERVICES
IFAS Supplemental Benefit Program

RULE NOS.:RULE TITLES:
60W-4.002Statements of Policy
60W-4.007Optional Supplemental Benefits
60W-4.008Designation of Beneficiary
60W-4.009Reemployment of Participants Receiving Supplemental Benefits
60W-4.010Cost-of-Living Adjustments
60W-4.011Deductions from Monthly Benefits
PURPOSE AND EFFECT: Amending the rules of the Division of Retirement to correspond with statutory changes up through the 2012 Legislative session and deleting obsolete language.
SUMMARY: Incorporate by reference six division forms; update rule references though out the rule; update forfeiture provisions in accordance with Section 121.091(5)(f)-(k), F.S.; update cost-of-living adjustments in accordance with the provisions of Section 121.101, F.S.; update deductions from benefits in accordance with section 121.091(14), F.S.; and make gender specific changes throughout rule.
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: 121.40(13) FS.
LAW IMPLEMENTED: 112.3173, 121.091, 121.40, 121.40(7), (9), (10), (11) 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:

60W-4.002 Statements of Policy.

(1) No change.

(2) It shall be the responsibility of the participant or his or her surviving joint annuitant to make proper application for supplemental benefits to the Division through the Institute on Form IF-11 (Rev 07/06), http://www.flrules.org/Gateway/reference.asp?No=Ref-01852, Florida Retirement System Application for Institute of Food and Agricultural Sciences (IFAS) Supplemental Retirement, herein adopted by reference, which may be obtained by calling the Division’s Bureau of Retirement Calculations toll free at [phone], if calling from outside the Tallahassee calling area or locally at [phone], or if hearing or speech impaired by calling the Division via T.D.D. at the Florida Relay System by dialing 711 or [phone]. and on such Such application shall give notice of the date on which he or she will be eligible to begin receiving a supplemental benefit as provided in subsection 60W-4.002(4), F.A.C. The Institute shall forward to the Division the participant’s application and other required documents when completed but no earlier than 6 months prior to the date the participant or joint annuitant becomes eligible to receive a supplemental benefit.

(3) The supplemental benefit shall be based only on service by a participant as a Florida Cooperative Extension Service employee of the Institute after December 1, 1970.

(4) The supplemental benefit shall commence on the later of:

(a) through (c) No change.

(d) If the participant or his or her surviving joint annuitant fails to make application for the supplemental benefit within 30 calendar days of becoming eligible for the supplement, the supplemental benefit shall commence on the first day of the month following receipt of the application by the Division of Retirement.

(5) - (6) No changes.

(7) A participant shall not be entitled to receive the following:

(a) Disability benefits if he or she becomes totally and permanently disabled; or

(b) No change

(c) Early retirement benefits if he or she retires from the Institute and the federal Civil Service Retirement System prior to attaining age 62 as provided by paragraph 60W-4.003(2), F.A.C. Such a participant shall become eligible to receive a supplemental benefit upon attaining age 62 as provided in subsection 60W-4.006(3), F.A.C.

(8) Immediately upon reducing, suspending or terminating a benefit or, if possible, prior to taking such action, the Division may give notice in writing to each person known by the Division to be substantially affected by the action. The notice shall:

(a) No change.

(b) State that a person who does not agree with the action may, within 21 days of receipt of the notice, request a hearing on the decision by filing a petition prepared in accordance with Rule 28-106.201 Model Rule 28-5.201, F.A.C.

(c) State that a person who does not file a petition within 21 days of receipt of the notice shall have waived his or her right to request a hearing on the decision.

(d) Contain a reference to this rule and enclose a copy of Rule 28-106.201 Model Rule 28-5.201, F.A.C.

(9) Benefits under the Institute’s Supplemental Benefit Program are subject to the same forfeiture provisions applicable to regular members of the Florida Retirement System as provided in Section 121.091(5)(f)-(k), F.S. Any participant who is convicted of a specified offense committed prior to retirement, or whose employment is terminated by reason of his admitted commitment, aiding, or abetting of a specified offense, shall forfeit all rights and benefits under the Institute’s Supplemental Benefit Program. Specified offenses shall include the committing, aiding or abetting of an embezzlement of public funds or any theft by a participant from his employer; bribery in connection with the employment of a public officer or employer; the committing of an impeachable offense; any felony specified in Chapter 838, F.S., or any felony by an employee who willfully and with intent to defraud the public or his employer of the right to receive the faithful performance of his duty as a public employee, obtains, or attempts to obtain a profit or advantage for himself or some other person through the use or attempted use of the power, rights, or position of his employment. If such participant is subsequently reemployed, he shall be eligible for benefits based on creditable service earned subsequent to his reemployment, but shall not be eligible to claim as creditable service any period prior to his reemployment for which he was required to forfeit all rights and benefits.

Rulemaking Specific Authority 121.40(13)(14) FS. Law Implemented 112.3173, 121.40 FS. History–New 2-4-86, Amended 9-5-90, Formerly 22Q-4.002, Amended 8-4-94, Amended__________.

60W-4.007 Optional Supplemental Benefits.

(1) A participant who is eligible for a supplemental benefit computed in accordance with Rule 60W-4.004, F.A.C., shall select prior to the receipt of his or her first monthly supplemental benefit payment, one of the four optional forms of payment of such benefit as provided in paragraphs (a), (b), (c) or (d) on Form FRS-11o (IFAS) (Rev. 07/10), http://www.flrules.org/Gateway/reference.asp?No=Ref-01851, Florida Retirement System Pension Plan Option Selection for Institute of Food and Agricultural Sciences, herein incorporated by reference, which also requires such participant to to attest to his or her marital status on Form SA-1 (Rev. 01/10), http://www.flrules.org/Gateway/reference.asp?No=Ref-01855, Florida Retirement System Pension Plan Spousal Acknowledgment Form, as adopted in Rule 60S-4.010, F.A.C., herein incorporated by reference. A married participant who selects option 1 under paragraph (a) or option 2 under paragraph (b) shall also be required to have his or her spouse complete the spousal acknowledgement section of Form SA-1. Such forms shall be submitted to the Division and may be obtained by calling the Division’s Bureau of Retirement Calculations toll free at [phone], if calling from outside the Tallahassee calling area or locally at [phone], or if hearing or speech impaired by calling the Division via T.D.D. at the Florida Relay System by dialing 711 or [phone]. The supplemental benefit payment options are as followselect in the manner prescribed by the Division, prior to the receipt of his first monthly supplemental benefit payment, to receive the supplemental benefits for which he is eligible in accordance with one of the following options:

(a) Option 1. The maximum supplemental benefit payable to the participant during his or her lifetime.

(b) Option 2. A supplemental benefit payable during his or her lifetime and, in the event of death within a period of 10 years after his or her retirement, the same monthly amount to be payable to his or her beneficiary for the balance of such 10-year period.

(c) Option 3. A supplemental benefit which shall be payable during the joint lifetime of both the participant and his or her joint annuitant and which shall continue after death of either during the lifetime of the survivor in the same amount.

(d) Option 4. A supplemental benefit payable during the joint lifetime of the participant and his or her joint annuitant, and which shall continue after death of either, during the lifetime of the survivor in an amount equal to 66 2/3 percent of the amount which was payable during the joint lifetime of the participant and his or her joint annuitant.

(2) through (5) No change.

(6) The election of an option shall be null and void if either the participant, designated beneficiary, or designated joint annuitant should die before the first day of the month during which supplemental benefits commence, as provided in subsection 60W-4.002(4), F.A.C. If a participant should die prior to such date, his or her employment will be considered to have been terminated by death (even if the death occurred after his or her last day of employment), and supplemental benefits shall be payable in accordance with the provisions of Rule 60W-4.005, F.A.C. If the participant should die after such date, his or her employment will be considered to have been terminated by retirement, and supplemental benefits shall be payable in accordance with the supplemental benefit option selected as provided by this section, except when death occurs prior to the cashing or depositing of the first supplemental benefit warrant by the participant, and the surviving spouse or other dependent is the designated beneficiary or designated joint annuitant, in which case supplemental benefits shall be payable in accordance with the provisions of Rule 60W-4.005, F.A.C.

(7)(a) A participant who elects Option 3 or 4 shall, on a form provided for that purpose, designate his or her spouse or other joint annuitant dependent to receive the benefits which continue to be payable upon his or her death on the application for supplemental benefits, Form IF-11, as adopted by reference in Section 60W-4.002 (2), F.A.C. If, after benefits have commenced under Option 3 or 4, the retired participant desires to change his or her designation of a joint annuitant, he or she may do so twice during his or her retired life. A retired participant desiring to change his or her designation shall file with the Division a notarized Form JA-1 (Rev. 12/02), http://www.flrules.org/Gateway/reference.asp?No=Ref-01853, Florida Retirement System Pension Plan Change of Joint Annuitant Form (Retired members only), as adopted in Rule 60S-4.010, F.A.C., herein incorporated by reference, and proof of birth for the new joint annuitant, a copy of the marriage certificate if the new joint annuitant is a spouse and a copy of the death certificate if the previously designated joint annuitant is deceased. The JA-1 form may be obtained by calling the Division’s Survivor Benefits Section toll free at [phone], if calling from outside the Tallahassee calling area or locally at [phone], or if hearing or speech impaired by calling the Division via T.D.D. at the Florida Relay System by dialing 711 or [phone]. The participant is also required to notify “Change of Joint Annuitant” form and notify, in writing, his or her former joint annuitant, if living, of such change in writing. Upon the Division’s receipt of the a completed Form JA-1, “Change of Joint Annuitant” form, the Division shall adjust the retired participant’s monthly benefit by application of actuarial tables and calculations developed to ensure that the benefit paid is the actuarial equivalent of the present value of the participant’s monthly benefit at the time of the joint annuitant change. The consent of a retired participant's first designated joint annuitant to any such change shall not be required. The effective date of the change will be the first day of the month following receipt of the JA-1 “Change of Joint Annuitant” form by the Division.

(b) In the event of the dissolution of marriage of a retired member and his or her designated joint annuitant, such member may, on or after June 17, 1998, elect to nullify the joint annuitant designation of the former spouse, unless there is an existing qualified domestic relations order preventing such action. The member must file with the Division a notarized statement of nullification on Form JA-NUL (Rev. 07/99), http://www.flrules.org/Gateway/reference.asp?No=Ref-01854, Florida Retirement System Pension Plan Joint Annuitant Nullification Form, as adopted in Rule 60S-4.010, F.A.C., herein adopted by reference and a copy of the divorce decree. Form JA-NUL may be obtained by calling the Division’s Survivor Benefits Section toll free at [phone], if calling from outside the Tallahassee calling area or locally at [phone]. Individuals with a hearing or speech impairment may call the Division via T.D.D. at the Florida Relay System by dialing 711 or [phone]. The nullification shall be effective on the first day of the next month following receipt by the Division of the properly completed form and a copy of the divorce decree. Benefits due the member shall be adjusted, if appropriate, and shall be paid as if the former spouse predeceased the member. A member who makes such an election may not reverse the nullification. Such nullification shall not count as a change of joint annuitant unless the member chooses to designate a new joint annuitant in accordance with paragraph (a), in which case the member’s monthly benefit will be adjusted as though the member’s nullified joint annuitant is not living.

Rulemaking Specific Authority 121.40(13)(14) FS. Law Implemented 121.40(7) FS. History–New 2-4-86, Formerly 22Q-4.007, Amended__________.

60W-4.008 Designation of Beneficiary.

(1) A participant, prior to applying for supplemental benefits, may designate on a form provided by the Division, a beneficiary to receive the benefits which may be payable in the event of the participant’s death pursuant to these rules on Form BEN-001 (Rev. 06/04), http://www.flrules.org/Gateway/reference.asp?No=Ref-01848, Florida Retirement System Pension Plan Beneficiary Designation Form Active Members Only, as adopted in Rule 60S-4.011, F.A.C., herein incorporated by reference. This form may be obtained from the Forms page of the Division’s website, www.frs.MyFlorida.com, or by calling the Division’s Bureau of Retirement Calculations toll free at [phone], if calling from outside the Tallahassee calling area or locally at [phone], or if hearing or speech impaired by calling the Division via T.D.D. at the Florida Relay System by dialing 711 or [phone].

(2) A participant may designate multiple beneficiaries, sequentially or jointly, on the BEN-001 form provided by the Division.

(3) A participant may change his or her designation of a beneficiary at any time prior to applying for supplemental benefits by submitting a new BEN-001 form to on the form provided by the Division.

(4) Upon application for the supplemental benefit, a participant shall be required to complete a new designation of beneficiary on the application form as provided by the Division.

(5) through (6) No change.

Rulemaking Specific Authority 121.40(13)(14) FS. Law Implemented 121.40(9) FS. History–New 2-4-86, Formerly 22Q-4.008, Amended _________.

60W-4.009 Reemployment of Participants Receiving Supplemental Benefits.

(1) Any retired participant who is receiving a supplemental benefit under this chapter and is reemployed at the institute in a position as a cooperative extension employee of the institute, shall forfeit all rights to supplemental retirement benefits as provided in Section 121.40 (11), F.S.

(2)(1) Any retired participant who is receiving a supplemental benefit under this chapter may be employed by a private employer or a public employer, including one who participates does not participate in the Florida Retirement System, without affecting his or her supplemental benefits.

(3)(2) Any retired participant who is receiving a supplemental benefit under this chapter may be reemployed by an employer who participates in the Florida Retirement System in either a regularly established position or a temporary position., subject to the following:

(a) He shall not be eligible for membership in the Florida Retirement System.

(b) He shall not concurrently receive supplemental benefits and compensation from employment with a Florida Retirement System employer for 12 months immediately after the date his supplemental benefit commences.

(c) If he is reemployed by a Florida Retirement System employer prior to completion of the 12-month limitation period stated in paragraph 60W-4.009(2)(b), F.A.C., he shall:

1. Notify the Division in writing of such employment and have his supplemental benefits suspended effective the first day of the first month of reemployment. This suspension shall remain in effect for the balance of the 12-month limitation period or for every month of the 12-month limitation period in which he is employed;

2. Notify the employer in writing that he is receiving supplemental benefits from the Institute’s Supplemental Benefit Program;

3. Upon completion of the 12-month limitation period or upon termination of employment prior to completion of the 12-month limitation period, notify the Division in writing that his 12-month limitation period has been completed or that he is no longer employed and desires to have his supplemental benefits reinstated. Upon verification by his employer, his supplemental benefits will then be reinstated effective the first day of the month following termination of employment or completion of the 12-month limitation period;

4. If he returns to work again during the 12-month limitation period, notify the Division to suspend his supplemental benefits again for any month in which he is employed.

(d) If he is reemployed by a Florida Retirement System employer and fails to have his supplemental benefits suspended during the 12-month limitation period he shall:

1. Have his supplemental benefits suspended;

2. Repay to the Division any supplemental benefits received while reemployed during the 12-month limitation period. Such suspension shall continue until full payment has been made to the trust fund for all supplemental benefits received during the 12-month limitation period stated in paragraph 60W-4.009(2)(b), F.A.C. Supplemental benefits suspended beyond the 12-month reemployment limitation shall apply toward repayment of supplemental benefits received in violation of the reemployment limitation.

(4)(3) Any retired participant who is reemployed under the provisions of subsection 60W-4.009(2), F.A.C., shall not have his average final compensation or years of creditable service adjusted because of such employment.

(5)(4) Any employer who participates in the Florida Retirement System and who employs a retired participant of the Institute who is receiving a supplemental benefit, in a regularly established position, shall pay the required contributions in accordance with Rule 60W-3.004, F.A.C.:

(a) Submit a Personal History Record, Form FRS-M10, for each employee, and

(b) Pay the required contributions in accordance with Rule 60W-3.004, F.A.C.

(6)(5) A retired participant who is reemployed by an employer who participates in the Florida Retirement System may or may not have to make Social Security contributions, depending on the following:

(a) If the retired participant fills a regularly established position, the retired participant shall make Social Security contributions on all compensation received from such employment unless the position filled is a part-time position established and designated exclusively for the employment of retirees and the position does not require more than 500 hours of work per calendar year.

(b) If the retired participant fills a temporary position (as defined in paragraphs 60S-1.004(5)(a) and (b ), (b) and (c), F.A.C.), the retired participant shall not make Social Security contributions during such temporary reemployment except as provided in paragraph 60W-4.009(5)(c), F.A.C.

(c) If the employer has absolute Social Security coverage, the retired participant who is reemployed must make Social Security contributions irrespective of the type position he or she is filling beginning with his or her first day of reemployment.

RulemakingSpecific Authority 121.40(13)(14) FS. Law Implemented 121.40(11) FS. History–New 2-4-86, Formerly 22Q-4.009, Amended_________.

60W-4.010 Cost-of-Living Adjustments.

(1) Effective July 1, 1986, and each July 1 thereafter, a cost-of-living adjustment shall be made to the supplemental benefits of all recipients of such benefits as provided in Section 121.101, F.S..

(2) The amount of such adjustment, which shall be added to the July supplemental benefit., shall be computed as follows:

(a) For previously adjusted supplemental benefits – The supplemental benefit effective immediately preceding the adjustment shall be multiplied by 3 percent. This sum shall be added to the supplemental benefit.

(b) For supplemental benefits not previously adjusted – The adjustment shall be prorated by multiplying the initial supplemental benefit by a percentage equal to three times the number of months the participant has received a supplemental benefit divided by twelve. This sum shall be added to the supplemental benefit.

Rulemaking Specific Authority 121.40(13)(14) FS. Law Implemented 121.40(10) FS. History–New 2-4-86, Amended 2-7-89, Formerly 22Q-4.010, Amended________________.

60W-4.011 Deductions from Monthly Benefits.

A Subject to approval by the Division, a participant receiving supplemental benefits under this chapter may have federal income tax and health insurance premiums deducted from his monthly supplemental benefit, provided:

(1) Have federal income tax withheld from his or her monthly supplemental benefit in accordance with federal law unless the payee elects otherwise as provided in Section 121.091(14)(a), F.S. A request for federal income tax deductions is submitted on a form provided by the Division.

(2) Have certain other payments as provided in and in accordance with Section 121.091(14)(b), F.S., deducted from his or her monthly supplemental benefit:The deductions for health insurance premiums are authorized in writing by the participant and by the insurance company prior to the date his supplemental benefit commences.

Rulemaking Specific Authority 121.40 FS. Law Implemented 121.40, 121.091 FS. History–New 2-4-86, Formerly 22Q-4.011, Amended________.

NAME OF PERSON ORIGINATING PROPOSED RULE: Sarabeth Snuggs, Director, Division of Retirement
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Craig J. Nichols, Secretary, Department of Management Services
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: November 8, 2012
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: October 3, 2012, Vol. 38/42