To address in a more clear and concise manner, the retirement contributions and payment thereof for Military Leave of Absence service credit.  

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    DEPARTMENT OF MANAGEMENT SERVICES

    Division of Retirement

    RULE NO.:RULE TITLE:

    60S-3.006Retirement Contributions for Military Service Credit

    PURPOSE AND EFFECT: To address in a more clear and concise manner, the retirement contributions and payment thereof for Military Leave of Absence service credit.

    SUMMARY: To comply with federal qualification requirements for specific HEART Act implementation to keep the FRS a qualified plan as required by Section 121.30, F.S. and IRS notice 2010-15.

    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.

    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 FS.

    LAW IMPLEMENTED: 121.021, 121.111 FS.

    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: Garry Green, Operations and Management Consultant Manager, Department of Management Services, Division of Retirement, 1317 Winewood Blvd., Bldg. 8, Tallahassee FL 32399-1560, (850)488-5706

     

    THE FULL TEXT OF THE PROPOSED RULE IS:

     

    60S-3.006 Retirement Contributions for Military Service Credit.

    (1) For mMilitary lLeave of aAbsence – The required contributions for active duty military leaves of absence in accordance with subsection 60S-2.005(1), F.A.C., shall equal:

    (a) For Members (Contribution rate × months claimed × compensation) (Contribution rate × months claimed × compensation) + interest.

    Where:

    The “contribution rate” is the employee contribution rate in effect during the time of the military leave of absence for the class of membership to which the member belonged immediately prior to the leave of absence; the employer contributions shall be paid by the member if he or she was released from military service prior to December 3, 1974, and, if applicable, any employee contributions shall be paid by the employee. The “contribution rate” is the total employee and employer contribution rates in effect during the time of the military service for the class of membership to which the member belonged immediately prior to the leave of absence; the employer contributions shall be paid by the employer if the member was released from military service on or after December 3, 1974, or by the member if he or she was released from military service prior to December 3, 1974, and, if applicable, any employee contributions shall be paid by the employee.

    The “months claimed” is the total number of months of military service credit claimed;

    The “compensation” is the member’s monthly rate of compensation that would have been received if working during the military leave of absence with credit given for any supplemental payments received during any month while on the leave; and

    No “interest” shall be charged to the member for the required employee contribution portion of the cost of this military leave of absence. The “interest” shall be as provided in Rule 60S-3.0035, F.A.C., beginning with the fiscal year of the military service claimed.

    (b) For Employers (Contribution rate × months claimed × compensation) + interest

    Where:

    The “contribution rate” is the employer contribution rate in effect during the time of the military leave of absence for the class of membership to which the member belonged immediately prior to the leave of absence; the employer contributions shall be paid by the employer if the member was released from military service on or after December 3, 1974.

    The “months claimed” is the total number of months of military service credit claimed;

    The “compensation” is the member’s monthly rate of compensation that would have been received if working during the military leave of absence with credit given for any supplemental payments received during any month while on the leave; and

    The “interest” shall be as provided in Rule 60S-3.0035, F.A.C., beginning with the fiscal year in which the military leave of absence is claimed.

    (2) through (3) No change.

    Rulemaking Authority 121.031,121.30(9) FS. Law Implemented 121.021, 121.30(7), 121.111 FS. History–New 1-1-72, Amended 12-31-74, 8-26-81, 2-6-84, 4-17-85, Formerly 22B-3.06, Amended 2-4-86, 2-7-89, 11-14-91, Formerly 22B-3.006, Amended 3-18-93, 8-13-03, 4-5-12,___________.

     

    NAME OF PERSON ORIGINATING PROPOSED RULE: Dan Drake, Director

    NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Craig J Nichols, Agency Secretary

    DATE PROPOSED RULE APPROVED BY AGENCY HEAD: November 19, 2013

    DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: November 21, 2013

Document Information

Comments Open:
12/3/2013
Summary:
To comply with federal qualification requirements for specific HEART Act implementation to keep the FRS a qualified plan as required by s. 121.30, F.S. and IRS notice 2010-15.
Purpose:
To address in a more clear and concise manner, the retirement contributions and payment thereof for Military Leave of Absence service credit.
Rulemaking Authority:
121.031 FS.
Law:
121.021, 121.111 FS.
Contact:
Garry Green, Operations and Management Consultant Manager, Department of Management Services, Division of Retirement, 1317 Winewood Blvd., Bldg. 8, Tallahassee FL 32399-1560, (850)488-5706
Related Rules: (1)
60S-3.006. Retirement Contributions for Military Service Credit