To adopt updated forms; to clarify/correct certain information; to add definitions for “default”/“default election” and “electronic signature.” There are no other rules incorporating these proposed amended rules. The proposed ....

 

STATE BOARD OF ADMINISTRATION

RULE NOS.:RULE TITLES:

19-11.001Definitions

19-11.002Beneficiary Designations and Distributions for FRS Investment Plan

19-11.006Enrollment Procedures for New Hires

19-11.007Second Election Enrollment Procedures for the Florida Retirement System Retirement Programs

19-11.008Forfeitures

19-11.009Reemployment with an FRS-Participating Employer after Retirement

19-11.011Employer and Employee Contributions and ABO or Present Value Transfer Procedures

19-11.012Rollovers or Plan to Plan Transfers to or from the FRS Investment Plan

PURPOSE AND EFFECT: To adopt updated forms; to clarify/correct certain information; to add definitions for “default”/“default election” and “electronic signature.” There are no other rules incorporating these proposed amended rules. The proposed amendments do not have an impact on any other rules. Legislative ratification of the rule amendments is not required.

SUBJECT AREA TO BE ADDRESSED: Rule 19-11.001 is being amended to add definitions for “default”/“default election” and “electronic signature.” Also, “member” is being revised to include a terminated DROP member who has effectuated a rollover. Rule 19-11.002 is being amended to set forth the most recent versions of the General Retirement Plan Enrollment Form and the 2nd Election Enrollment Form. Rule 19-11.006 is being amended to update procedures for various classes to enroll in the Florida Retirement System (“FRS”). The latest versions of the various enrollment forms are being adopted. Finally, the rule is being amended to state that if a member’s enrollment is incomplete, the election will not be processed, and the member will need to submit a new election.

Rule 19-11.007 is being amended to emphasize that members that are on unpaid leave cannot use their election until they return to FRS-covered employment and are earning salary and service credit. The rule also is being amended to adopt the latest versions of the 2nd election enrollment forms. Rule 19-11.008 is being amended to state that if a member, who had separated from service at a time in which he or she had an unvested account balance, returns to FRS-covered employment within 5 years of date of termination, that member will receive the unvested funds together with any earnings or losses those funds experienced while being in the FRS Core Plus Bond Fund. The rule also notes that if a member leaves FRS employment after vesting in the Investment Plan but before vesting in any transferred Pension Plan benefit, the member will only be able to receive his or her vested Investment Plan benefit. However, if the member takes a distribution of any Investment Plan funds, the member will immediately be considered “retired” and will forfeit any unvested Pension Plan funds, as well as any earnings on such funds and any service credit related thereto. Rule 19-11.009 is being amended to adopt the latest version of the Certification Form that is used to prevent the hiring of ineligible retirees. Rule 19-11.011 is being amended to makes some editorial revisions and to indicate that newly hired employees with prior FRS service who either elect or default into the FRS Investment Plan will have their Pension Plan accumulated benefit obligation (“ABO”) calculated and transferred to their Investment Plan account. Rule 19-11.012 is being amended to adopt the latest version of the Employee Rollover Deposit Instructions and Form, and to make some editorial revisions to emphasize that a member who has rolled over monies into the Investment Plan cannot receive a distribution of such funds until the member has terminated employment for three full months following termination of all FRS employment.

RULEMAKING AUTHORITY: 121.4501(8), FS.

LAW IMPLEMENTED: 119.07(4)(d), 120.569, 120.57, 120.573, 121.021(29), (39), 121.051, 121.055, 121.091(5)(j), (8), 121.35, 121.4501(1), (2), (3), (4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (15), 121.591(3), 121.77, 121.78. 732.802 FS

IF REQUESTED IN WRITING AND NOT DEEMED UNNECESSARY BY THE AGENCY HEAD, A RULE DEVELOPMENT WORKSHOP WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:

DATE AND TIME: Friday, May 5, 2023, 9:00 a.m. - 11:00 a.m.

PLACE: Room 116 (Hermitage Center Conference Room), 1801 Hermitage Blvd., Tallahassee, FL 32308.

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 5 days before the workshop/meeting by contacting: Tina Joanos, Agency Clerk, Office of the General Counsel, State Board of Administration, 1801 Hermitage Blvd., Tallahassee, FL 32303; [phone]; [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 DEVELOPMENT AND A COPY OF THE PRELIMINARY DRAFT, IF AVAILABLE, IS: Ruth A. Smith, Assistant General Counsel, Office of the General Counsel, State Board of Administration, 1801 Hermitage Blvd., Tallahassee, FL 32303; [phone]; [e-mail]

THE PRELIMINARY TEXT OF THE PROPOSED RULE DEVELOPMENT IS AVAILABLE AT NO CHARGE FROM THE CONTACT PERSON LISTED ABOVE.