The Definitions section needed to be updated to remove unused or statutorily redundant definitions and update the name of a Division bureau.

 

DEPARTMENT OF MANAGEMENT SERVICES

Division of Retirement - Local Retirement

RULE NOS.:              RULE TITLES:

60T-1.001              Scope and Purpose

60T-1.002              Definitions

60T-1.003              Actuarial Reports

PURPOSE AND EFFECT: The Definitions section needed to be updated to remove unused or statutorily redundant definitions and update the name of a Division bureau.

SUMMARY: Amending the rule to remove unused or statutorily redundant definitions and update the name of a Division bureau.

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: 112.665 FS.

LAW IMPLEMENTED: 112.61, 112.63, 112.64, 112.661, 112.664, 112.665 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: April 27, 2015, 10:00 a.m., ET.

PLACE: Division of Retirement of the Department of Management Services, 2450 Shumard Oak Blvd., Bldg. 2, Tallahassee, FL

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: Stephanie Farmer, Administrative Assistant, Division of Retirement, Department of Management Services at [phone]. 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, Bureau Chief, Department of Management Services, Division of Retirement, 2450 Shumard Oak Blvd., Bldg. 2, Tallahassee, FL, [phone]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

60T-1.001 Scope and Purpose.

(1) This chapter sets forth the rules under which municipal and special district units of government are to provide information on their retirement systems to the Division of Retirement (Bureau of Program Services) pursuant to Part VII of Chapter 112, F.S. The provisions of this chapter shall be applicable to all municipal governments and special districts (or agencies and instrumentalities thereof) which operate or administer a retirement system or plan for public employees funded in whole or in part by public funds. This chapter shall not apply to municipalities or special districts with respect to any of their employees which participate as a covered group in the Florida Retirement System.

(2) The objectives of this chapter are to enhance and further clarify the implementation intent of Part VII, Chapter 112, F.S., so that governmental retirement systems may be managed, administered, operated, and funded in such manner as to maximize the protection of public employee retirement benefits. Inherent in this intent is the recognition that Tthe pension liabilities attributable to the benefits promised public employees are be fairly, orderly, and equitably funded by the current, as well as future, taxpayers. Accordingly, except as herein provided, it is the intent of these rules to prohibit the use of any procedure, methodology, or assumptions, the effect of which is to transfer to future taxpayers any portion of the costs which may reasonably be expected to be paid by the current taxpayers.

Rulemaking Authority 112.665(1) FS. Law Implemented 112.63 112.61 FS. History–New 5-6-81, Amended 9-19-83, Formerly 22D-1.01, Amended 11-14-91, Formerly 22D-1.001,__________.

 

60T-1.002 Definitions.

The words and phrases in this chapter shall be construed according to their plain meaning, in light of the context and subject matter, unless expressly defined otherwise in this rule, this chapter or in Section 112.625, F.S. Whenever used in this chapter, unless otherwise expressly stated, or unless the context or subject matter requires a different meaning, the following words and terms shall have the respective meaning indicated:

(1) “Actuarial Impact Statement” means a statement setting forth the actuarial liabilities and contribution requirements of a proposed change in the provisions of a local retirement system certified by an enrolled actuary or prepared by the plan administrator or plan sponsor.

(2) “Actuarial Report” means a report prepared and certified by an enrolled actuary based on actuarial evaluation of a local retirement system or plan.

(3) “Benefit Increase” means a change or amendment in the plan design or benefit structure which results in increased benefits or increased value of benefits for plan members or beneficiaries.

(4) “Concurrent Funding” means payment of the required contributions to fund benefit changes shall begin no later than the first of the next fiscal year after benefits change.

(3)(5) “Division” means the Division of Retirement, Bureau of Local Retirement Systems Program Services.

(6) “Enrolled Actuary” means an actuary who is a member of the Society of Actuaries or the American Academy of Actuaries and who is enrolled under subtitle C of Title III of the Employee Retirement Income Security Act of 1974.

(7) “Governmental Entity” means the state, for the Florida Retirement System, and the municipality or special district which is the employer of the member of a local retirement system or plan.

(4)(8) “Local Retirement System or Plan” means any employee pension benefit plan supported in whole or in part by public funds which is not specifically exempt by Section 112.625(1), F.S.

(9) “Plan Administrator” means the person so designated by the terms of the instrument or instruments, ordinance, or statute under which the plan is operated; or the plan sponsor where no plan administrator is designated.

(10) “Plan Sponsor” means the local governmental entity which has established or which may establish a local retirement system or plan.

(5)(11) “Significant Plan Amendment” means any change or changes in the retirement plan or system the net effect of which would require a current or potential increase in the contribution rate.

(12) “Statement Value” means the value of assets in accordance with Section 302(c)(2), F.S., of the Employee Retirement Income Security Act of 1974, and as permitted under regulations prescribed by the Secretary of the Treasury.

Rulemaking Authority 112.665(1) FS. Law Implemented 112.61, 112.625, 112.63, 112.64, 112.661, 112.664, 112.665 FS. History–New 5-6-81, Amended 9-19-83, Formerly 22D-1.02, Amended 11-14-91, Formerly 22D-1.002,_______.

 

60T-1.003 Actuarial Reports.

(1) No change.

(2) The results of each actuarial report shall be filed with the plan administrator within 60 days after completion and certification by the actuary and made available for inspection upon request. Also, the system or plan shall provide a copy of each actuarial report to the Division of Retirement within 60 days of receipt from the actuary.

(3) through (11) No change.

Rulemaking Authority 112.665(1) FS. Law Implemented 112.61, 112.63 FS. History–New 5-6-81, Amended 9-19-83, 8-15-84, Formerly 22D-1.03, Amended 11-14-91, Formerly 22D-1.003, Amended 2-23-95,_________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Dan Drake, Director

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Chad Poppell, Secretary

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: February 16, 2015

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: November 4, 2014