Definitions, Participation, Benefits

DEPARTMENT OF MANAGEMENT SERVICES
Division of Retirement

RULE NO.: RULE TITLE:
60S-11.001: Definitions
60S-11.002: Participation
60S-11.004: Benefits

NOTICE OF CHANGE

Notice is hereby given that the following changes have been made to the proposed rule in accordance with subparagraph 120.54(3)(d)1., F.S., published in Vol. 37 No. 47, November 23, 2011 issue of the Florida Administrative Weekly.

60S-11.001 Definitions.

(8) DROP end date – means the date DROP participation ceases and shall be the date termination of all employment occurs as defined in paragraph 60S-6.001(69)(b), F.A.C., except as provided in subsection 60S-11.004(10) F.A.C., for elected officers. The DROP end date shall be effective as of the date of the participant’s designated deferred resignation, as stated on Form DP-ELE (Rev. 04/09), Florida Retirement System Pension Plan Notice of Election to Participate in the Deferred Retirement Option Program (DROP) and Resignation of Employment, herein adopted by reference; or if applicable on Form DP-EXT (Rev. 04/09), Florida Retirement System Pension Plan Extension of Deferred Retirement Option Program (DROP) For Specified K-12 Instructional Personnel, herein adopted by reference, or earlier if the participant terminates prior to the designated resignation date. Form DP-ELE and DP-EXT may be obtained from the Forms page of the Division’s website, http://frs.MyFlorida.com, or by calling the Division’s Bureau of Retirement Calculations Toll Free at 1(888)738-2252, 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 1(800)955-8771. The participant may cease participation in DROP prior to the designated resignation date only by satisfying the definition of termination as provided in paragraph 60S-6.001(69)(b), F.A.C.

60S-11.002 Participation.

(3) Application to Participate –

(a)1. No change.

2. Form DP-11 (Rev. 11/10), Florida Retirement System Pension Plan Application for Service Retirement and the Deferred Retirement Option Program (DROP); or Form DS-11 (Rev. 07/06), State and County Officers’ and Employees’ Retirement System Application for Service Retirement and the Deferred Retirement Option Program (DROP); or Form DT-11 (Rev. 07/06), Teachers’ Retirement System Application for Service Retirement and the Deferred Retirement Option Program (DROP). All such forms are herein adopted by reference and may be obtained from the Forms page of the Division’s website, http://frs.MyFlorida.com, or by calling the Division’s Bureau of Retirement Calculations Toll Free at 1(888)738-2252, 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 1(800)955-8771. Such application will be accepted by the Division up to 6 months in advance of the intended DROP begin date, and shall establish the member’s effective date of retirement and DROP begin date. The effective date of retirement and the DROP begin date shall both be the first day of the month that the member indicates on his or her application as the date he or she wishes his or her DROP participation to begin, provided the Division receives the member’s application no later than the close of business on the last day of the month in which the DROP begin date occurs. If a member fails to apply for DROP by the last day of the month in which his or her intended DROP begin date occurs, the effective date of retirement and the DROP begin date shall be the first day of the month in which the Division receives the member’s application, provided the application is received within the 12-month election as provided in subsection 60S-11.002(2), F.A.C.

60S-11.004 Benefits.

(7) DROP benefits shall be subject to the provisions of Rules 60S-4.014 and 60S-4.021, F.A.C., pertaining to assignment, execution, or attachment of benefits, and forfeiture of benefits, respectively. The Alternate Payee of a DROP participant as a result of an approved Qualified Domestic Relations Order may designate a beneficiary on Form DP-12 (Rev. 02/06), Florida Retirement System Pension Plan Beneficiary Designation Form for the Alternate Payee of a DROP Participant, herein adopted by reference, in the even the event the Alternate Payee predeceases the DROP participant during the period of DROP participation. Form DP-12 may be obtained by calling the Survivor Benefits Section of the Division Toll Free at 1(877)377-4347, 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 1(800)955-8771.

(9) Termination of Employment for Participants Other than Elected Officers – A DROP participant, except for an elected officer participating in any membership class, must terminate employment on or before the preselected resignation date specified on Form DP-ELE or if applicable on Form DP-EXT and will be required to submit to the Division a completed Form DP-TERM (Rev. 04/10), Florida Retirement System Pension Plan Deferred Retirement Option Program (DROP) Termination Notification, herein adopted by reference, upon termination from DROP. Form DP-Term may be obtained by calling the Division’s DROP Termination and Refund Payment Section Toll Free at 1(877)738-3767, 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 1(800)955-8771. If a participant fails to terminate on or before the DROP termination and resignation date:

(e) Should the DROP participant and his or her respective employer rescind the DROP participant’s resignation and employment shall continue beyond the rescinded resignation date, the DROP participant and his or her respective employer shall notify the Division on Form DP-VOID (Rev. 04/03), Florida Retirement System Pension Plan Deferred Retirement Option Program (DROP) Void Form, herein adopted by reference, no earlier than three months prior to, but no later than, the rescinded resignation date. Form DP-VOID may be obtained by calling the Division’s DROP Termination and Refund Payment Section Toll Free at 1(877)738-3767, 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 1(800)955-8771.

(10) Termination of Employment for Participants in the Elected Officers’ Class – A member of the Elected Officers’ Class participating in the DROP may continue to serve in elected office upon reaching the DROP end date as follows:

(a) For such officer who began participating in the DROP prior to July 1, 2002:

1. Such officer shall be required to submit to the Division a completed Form DP-TEOC (09/01), Florida Retirement System Pension Plan Deferred Retirement Option Program (DROP) Elected Officers’ Termination Notification, herein adopted by reference, upon termination from DROP. Form DP-TEOC may be obtained by calling the Division’s DROP Termination and Refund Payment Section Toll Free at 1(877)738-3767, 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 1(800)955-8771.

(b) For such officer who began participating in the DROP on or after July 1, 2002 through June 1, 2010:

1. Such officer shall be required to submit to the Division a completed Form DP-TEOC-2 (10/07), Florida Retirement System Pension Plan Deferred Retirement Option Program (DROP) Elected Officer DROP Termination Notification, herein adopted by reference, upon termination from DROP. Form DP-TEOC-2 may be obtained by calling the Division’s DROP Termination and Refund Payment Section Toll Free at 1(877)738-3767, 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 1(800)955-8771.

(12) DROP Distribution – Upon the participant’s termination of all employment as defined in paragraph 60S-6.001(69)(b), F.A.C., the deferred resignation becoming effective, and the conclusion of the DROP participation period, or upon the death of the participant, or for an elected officer as provided in paragraph (10)(a) benefits shall be paid or distributed as follows:

(b) The total accumulated DROP benefits will be distributed to the participant, or, if deceased, to the participant’s joint annuitant or beneficiary as appropriate, provided the Division receives:

2. From the elected officer participant, Form DP-TEOC-3 (10/07), Florida Retirement System Pension Plan Deferred Retirement Option Program (DROP) Elected Officer Employment Termination Notification, herein adopted by reference, signed by both the participant and employer or employers, verifying termination of employment. Form DP-TEOC-3 may be obtained by calling the Division’s DROP Termination and Refund Payment Section Toll Free at 1(877)738-3767, 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 1(800)955-8771.

3. From the participant who chose Option 4, Form DP-Joint (Rev. 09/99), Florida Retirement System Pension Plan Deferred Retirement Option Program (DROP) Joint Annuitant Verification, herein adopted by reference, signed by the participant verifying that his or her joint annuitant is still living and eligible for the full DROP Payout and the unreduced continuing monthly benefit. Form DP-Joint may be obtained by calling the Division’s DROP Termination and Refund Payment Section Toll Free at 1(877)738-3767, 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 1(800)955-8771.

4. From all participants, Form DP-PAYT (Rev. 05/11), Florida Retirement System Pension Plan Deferred Retirement Option Program (DROP) Selected Payout Method, herein adopted by reference, submitted by the participant which may be obtained by calling the Division’s DROP Termination and Refund Payment 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 1(800)955-8771, or if the participant has died, Form FST-11g, Florida Retirement System Pension Plan Application of Beneficiary for Benefit Payment, as adopted in paragraph 60S-4.008(1)(a), F.A.C., must be completed by his or her beneficiary, notifying the Division as to which of the following methods of payment he or she has chosen:

a. Lump sum,

b. Direct rollover, or

c. Combined partial lump sum and rollover.

A DROP participant or beneficiary who submits all required forms, but fails to elect a method of payment within 60 days of termination of DROP, will automatically receive a lump sum distribution, less applicable withheld taxes.