Amend forms including FST-11B, TR-11, FR-11, PR-13, FR-13, SVF-2, SRF-2, SRF-3, FRS-M81, JA-1, FST-12, and BEN-001. Create new form for Investment Plan members in the Special Risk Class. Amend birth verification documents and to require a marriage ...

 

DEPARTMENT OF MANAGEMENT SERVICES

Division of Retirement

RULE NOS.:RULE TITLES:

60S-4.0035Retirement Application and Effective Retirement Date

60S-4.008Benefits Payable Upon Death

60S-4.009Benefits Payable After Termination

60S-4.010Retirement Benefit Payment Options

60S-4.011Designation of Beneficiary

PURPOSE AND EFFECT: Amend forms including FST-11B, TR-11, FR-11, PR-13, FR-13, SVF-2, SRF-2, SRF-3, FRS-M81, JA-1, FST-12, and BEN-001. Create new form for Investment Plan members in the Special Risk Class. Amend birth verification documents and to require a marriage certificate at the time of application for members choosing option 3 or 4.

SUMMARY: To create a new beneficiary designation form for Special Risk Class members in the Investment Plan. To amend forms, including FST-11B, SVF-2, SRF-2, and the SRF-3 to address additional information for Special Risk members, forms TR-11, FR-11, PR-13, JA-1, FST-12, BEN-001 and the FR-13 to include contact information for beneficiaries, and form FRS-M81 to provide clarification and expand the explanation of the termination requirements for members seeking a refund of their employee contributions. To update rule language, including language pertinent to SB 7012 which provides death benefits to the surviving spouse or children at 100% of the member’s salary. To update rule language to amend documentation accepted for proof of birth verification. To require the submission of a marriage certificate the time of application for retirement if a member is choosing option 3 or 4 and naming their spouse as their beneficiary.

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: the economic review conducted 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, 121.4501(8), 121.052(14) FS.

LAW IMPLEMENTED: 121.055, 121.021, 121.091, 121.4501(16), 121.591(2), 121.052, 121.031(2) 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:

DATE AND TIME: Friday August 12, 2016 at 10:00 a.m.

PLACE: 2450 Shumard Oak Blvd., Bldg. 2, Tallahassee FL 32311

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Garry Green, Chief, Bureau of Research and Member Communications, Department of Management Services, Division of Retirement, 2450 Shumard Oak Blvd., Bldg. 2, Tallahassee FL 32311, [phone]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

60S-4.0035 Retirement Application and Effective Retirement Date.

(1) It shall be the responsibility of the FRS Pension Plan member, the State and County Officers’ and Employees’ Retirement System member, the Teachers’ Retirement System member or the beneficiary of any such member in the event of the member’s death, to make proper application to the Division for retirement benefits. A member may apply for retirement benefits within 6 months prior to his or her date of termination of employment. If a member terminates his or her employment and elects to defer his or her retirement to some future date, he or she may apply for deferred benefits up to 6 months prior to the date he or she desires his or her retirement to become effective.

Applications for retirement benefits may be obtained from Division’s website, http://frs.MyFlorida.com, or by calling the Division 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]. Applications are as follows:

(a) Application for normal or early retirement for FRS Pension Plan members as provided in Rules 60S-4.004 and 60S-4.005, F.A.C., respectively shall be made on Form FR-11, effective 07/16, (Rev. 11/10), http://www.flrules.org/Gateway/reference.asp?No=Ref-         http://www.flrules.org/Gateway/reference.asp?No=Ref-00349, Florida Retirement System Pension Plan Application for Service Retirement, herein adopted by reference;

(b) No change.

(c) Application for normal or early retirement for members of the Teachers’ Retirement System as provided in Rules 60S-4.004 and 60S-4.005, F.A.C., respectively, shall be filed with the Division on Form TR-11, effective 07/16,  (Rev. 09/07), http://www.flrules.org/Gateway/reference.asp?No=Ref-         http://www.flrules.org/Gateway/reference.asp?No=Ref-00382, Teachers’ Retirement System Application for Service Retirement, herein incorporated by reference;

(d) Application for retirement benefits by a beneficiary of a deceased FRS Pension Plan member, State and County Officers’ and Employees’ Retirement System member or a Teachers’ Retirement System member as provided in Rule 60S-4.008, F.A.C., shall be filed with the Division on Form FST-11b, effective 07/16, (Rev 12/02),

http://www.flrules.org/Gateway/reference.asp?No=Ref-          http://www.flrules.org/Gateway/reference.asp?No=Ref-00359, Florida Retirement System Pension Plan Application of Beneficiary for Monthly Retirement Benefits, herein incorporated by reference. Application for retirement benefits by the contingent beneficiary of a deceased FRS Pension Plan member who selected an Option 2 benefit as provided in Rule 60S-4.010, F.A.C., wherein the primary beneficiary receiving the Option 2 benefit dies within the 10-year period following the member’s effective date of retirement, shall be filed with the Division on Form FST-11so2 (Rev. 12/02), http://www.flrules.org/Gateway/reference.asp?No=Ref-00362, Florida Retirement System Pension Plan Application for Survivor Benefits, herein adopted by reference;

(e) Application for retirement benefits by a beneficiary of a deceased FRS Investment Plan Special Risk class member as provided in Rule 60S-4.008, F.A.C., shall be filed with the Division on Form FST-11b-IP, effective 07/16, http://www.flrules.org/Gateway/reference.asp?No=Ref-         , Florida Retirement System Investment Plan Application of Beneficiary for Monthly Retirement Benefits, herein incorporated by reference.

(f)(e) Application for disability retirement as provided in Rule 60S-4.007, F.A.C., shall be made as follows:

1. FRS Pension Plan members shall file such application for disability retirement with the Division on Form FR-13, effective 07/16 (Rev. 07/06), http://www.flrules.org/Gateway/reference.asp?No=Ref-________         http://www.flrules.org/Gateway/reference.asp?No=Ref-00350, Florida Retirement System Pension Plan Application for Disability Retirement, herein adopted by reference.

2. FRS Investment Plan members shall file such application for disability retirement with the Division on Form PR-13, effective 07/16 (Rev. 07/06), http://www.flrules.org/Gateway/reference.asp?No=Ref-         http://www.flrules.org/Gateway/reference.asp?No=Ref-00367, Florida Retirement System Investment Plan Application for Disability Retirement, herein adopted by reference.

3. through 4. No change.

(2) Proper application for benefits provided herein, shall include proof of age for the member and for the joint annuitant.

(a) Proof of age shall be established with one of the following types of evidence (except as provided in 9 7.):

1. Copy of a birth Birth certificate Certificate;

2. No change.

3. Valid, unexpired U.S. passport;

3. – 6. renumbered as 4. – 7. No change.

8. Florida drivers license issued after January 1, 2010 that indicates compliance with the federal REAL ID Act.

9. 7. In the absence of the above, a document from two of the following categories will be required:

a. Copy of a birth Birth certificate of child, showing age of parent;

b. through d. No change.

(b) through (c) No change.

(3) A copy of the marriage license if the spouse is named as beneficiary and the member selects option 3 or 4 as provided in Rule 60S-4.010, F.A.C., is required as part of a proper application for benefits under this section.

(4)(3) The Division shall establish the member’s effective retirement date as follows:

(a) through (c) No change.

(5)(4) When a member’s application for retirement benefits is received, the Division will:

(a) Acknowledge the receipt of the member’s application and advise him or her of any required information or documents that have not yet been received. Such information may include but is not limited to birthdate verification, beneficiary designation, option selection as required by Rule 60S-4.010, F.A.C., spousal acknowledgment by an FRS Pension member applying for retirement benefits or an Investment Plan participant applying for Disability retirement as required by subsection 60S-4.010(9), F.A.C., copy of the marriage license as provided in (3), any payments due the member’s account for purchase of additional service credit or a written statement from the member that the member does not wish to claim such service credit, and final certification of earnings.

(b) Establish the effective retirement date as provided in paragraph 60S-4.0035(4) (3)(a), F.A.C., for normal or early retirement, or as provided in paragraph 60S-4.0035(4)(3)(b), F.A.C., for disability retirement.

(c) through (e) No change.

Rulemaking Authority 121.031, 121.4501(8)(a) FS. Law Implemented 112.65, 121.021, 121.091, 121.4501(16), 121.591(2) FS. History–New 11-14-91, Formerly 22B-4.0035, Amended 8-4-94, 12-12-96, 8-13-03, 4-5-12,                  .

 

60S-4.008 Benefits Payable Upon Death.

(1)(a) If the death of an FRS Pension Plan member occurs, other than in-line-of-duty, prior to the member becoming vested, the member’s designated beneficiary shall receive a refund of the member’s accumulated contributions, except as provided in subsection 60S-2.010(4), F.A.C., and shall make application to the Division for such refund on Form FST-11g effective 12/15, http://www.flrules.org/Gateway/reference.asp?No=Ref-06736, Florida Retirement System Pension Plan Application of Beneficiary for Benefit Payment, herein adopted by reference, which may be obtained by calling the Division 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].

(b) No change.

(c)1. If the death of a Teachers’ Retirement System member occurs prior to the member obtaining 10 years of creditable service, the member’s designated beneficiary shall receive a refund of the member’s accumulated contributions as provided in Section 238.07, F.S., and shall make application to the Division for such refund on Form FST-11g, Florida Retirement System Pension Plan Application of Beneficiary for Benefit Payment as adopted in paragraph (a).

2. In addition, survivor benefits may be payable in accordance with Section 238.07(18), F.S. Survivors meeting the eligibility criteria for such benefits as provided in Section 238.07(18), F.S., shall make application to the Division on Form TR-11c (Rev. 12/02), https://www.flrules.org/Gateway/reference.asp?No=Ref-00383, Teachers’ Retirement System Application for Survivor Benefits herein incorporated by reference, which may be obtained by calling the Division 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]. An unmarried surviving dependent child of the deceased member over 18 years of age but not over 22 years of age and enrolled as a student in an accredited education institution meeting the eligibility criteria for survivor benefits under Section 238.07(18), F.S., shall also be required to submit the information in (d) following to the Division for survivor benefit eligibility determination.:

(d) An unmarried dependent child of a deceased member who is over the age 18 must submit the following documents:

a. An acceptance letter from an accredited educational institution or Form SRF-2, effective 07/16 (Rev. 07/99), http://www.flrules.org/Gateway/reference.asp?No=Ref-_____ http://www.flrules.org/Gateway/reference.asp?No=Ref-00379, Florida Teachers’ Retirement System Student Report Form, herein adopted by reference, which may be obtained by calling the Division 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], completed by the accredited educational institution; and

b. A completed Form SRF-3, effective 07/16 (Rev.07/99), http://www.flrules.org/Gateway/reference.asp?No=Ref-_____ http://www.flrules.org/Gateway/reference.asp?No=Ref-00380, Florida Teachers’ Retirement System Authorization for Release of Information, herein adopted by reference, which may be obtained by calling the Division 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

c. A completed Form SVF-2, effective 07/16 (Rev 07/99), http://www.flrules.org/Gateway/reference.asp?No=Ref-_____ http://www.flrules.org/Gateway/reference.asp?No=Ref-00381, Florida Teachers’ Retirement System Affidavit Attesting to Eligibility, herein adopted by reference, which may be obtained by calling the Division 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) through (3) No change.

(4) If an FRS Pension Plan member is killed in the line of duty, except as provided in (5) for certain Special Risk Class members, the following shall apply:

(a) For Pension Plan members except Special Risk Class members killed in the line of duty before July 1, 2013, regardless Regardless of the member’s length of service, the surviving spouse may elect a benefit equal to one-half of the member’s monthly salary, excluding overtime and lump sum payments, at time of death for the spouse’s lifetime; or if the member had completed ten or more years of creditable service, or eight or more years of creditable service as a member of the Elected Officers’ Class, or seven or more years of creditable service as a member of the Senior Management Service Class the surviving spouse may elect to receive a benefit as provided in paragraph 60S-4.008(2)(b), F.A.C.

(b) through (f) No change.

(5) If an FRS Pension Plan or Investment Plan Special Risk Class member is killed in the line of duty on or after July 1, 2013, the following shall apply to benefit payments beginning on or after July 1, 2016:

(a) Regardless of the member’s length of service, the surviving spouse may elect a benefit equal to 100 percent  of the member’s monthly salary, excluding overtime and lump sum payments, at time of death for the spouse’s lifetime.

(b) If the member had any children until 18 years of age at the time of his or her death, the surviving spouse shall not be permitted to receive a refund of the member’s contributions in lieu of the benefits provided in paragraph 60S-4.008(4)(a), F.A.C.

(c) If the surviving spouse is receiving a benefit as provided in paragraph 60S-4.008(5)(a), F.A.C., and dies, the benefits which would have been payable to the surviving spouse shall be paid for the use and benefit of such member’s child or children until the member’s youngest child reaches 18 years of age.

(d) If the member leaves no surviving spouse but is survived by a child or children under 18  years of age, the benefits shall be paid for the use and benefit of such member’s child or children until the member’s youngest child reaches 18 years of age.

(e) If the surviving child or children remains unmarried and a full time student, benefit may be paid after age 18 and until the youngest child reaches 25 year of age.

(f)The distribution of benefits as provided by this subsection shall supersede any other distribution that may have been provided for by the member’s designation of beneficiaries.

(5) through (9) renumbered (6) through (10) No change.

Rulemaking Authority 121.031 FS. Law Implemented 61.1301, 112.18, 112.181, 121.021(14), 121.052(5), 121.055, 121.091(7) FS. History–New 1-1-72, Amended 10-20-72, 12-31-74, 7-21-75, 8-26-81, Formerly 22B-4.08, Amended 2-6-84, 1-12-87, 2-7-89, 9-5-90, 5-15-91, 11-14-91, Formerly 22B-4.008, Amended 3-18-93, 1-25-94, 8-4-94, 12-12-96, 5-10-99, 8-13-03, 4-5-12, 1-20-14, 5-12-16,  _________.

 

60S-4.009 Benefits Payable After Termination.

(1) through (2) No change.

(3) In order to receive a refund of contributions under the Florida Retirement System, an FRS member must terminate all employment relationships with all FRS participating employers for three calendar months as provided in Section 121.021(39)(c), F.S., and submit a request for refund on Form FRS-M81, effective 07/16 (Rev. 05/11), http://www.flrules.org/Gateway/reference.asp?No=Ref-        http://www.flrules.org/Gateway/reference.asp?No=Ref-00358, Florida Retirement System Pension Plan Request for Refund, herein adopted by reference, to the division. Form FRS-M81 may be completed and submitted online from the Refund Application page of the member’s Online Services account accessible from the Division’s website (www.frs.MyFlorida.com) or may be obtained from the Forms page of the Division’s website, www.frs.MyFlorida.com, or by calling the Division 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 division shall acknowledge the receipt of the FRS-M81 and send the member Form REF-PAYT, effective 12/15, http://www.flrules.org/Gateway/reference.asp?No=Ref-06737, Florida Retirement System (FRS) Pension Plan Refund Payout Selection, herein adopted by reference, which may be obtained by calling the Division 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 member shall complete and return Form REF-PAYT to the division, indicating his or her refund payout selection. By obtaining a refund of contributions a member waives all rights under the Florida Retirement System to the service credit represented by the refunded contributions, except the right to purchase his or her prior service credit in accordance with Rule 60S-2.004, F.A.C. No refund of employee contributions shall be made until the employer has reported the employee’s termination through the payroll reporting process.

(4) through (5) No change.

Rulemaking Authority 121.031, 121.052(14) FS. Law Implemented 121.021, 121.052(5)(c), 121.055, 121.091 FS. History–New 1-1-72, Amended 10-10-72, 12-31-74, 1-16-77, 8-26-81, Formerly 22B-4.09, Amended 1-12-87, 2-7-89, 11-14-91, Formerly 22B-4.009, Amended 8-4-94, 2-24-99, 4-5-12, 3-25-13, 12-15-13, 5-12-16,                  .

 

60S-4.010 Retirement Benefit Payment Options.

(1) through (7) No change.

(8) A member who selects Option 3 or 4 shall designate a joint annuitant to receive the benefits which continue to be payable upon his or her death. If, after benefits have commenced under Option 3 or 4, the retired member desires to change his or her designation of a joint annuitant, he or she may do so as follows:

(a) From October 1, 1979 through June 30, 1984, a retired member may change his or her designated joint annuitant only if his or her first designated joint annuitant is alive and can show evidence of good health as shall be substantiated by a statement from a Florida licensed physician. A member desiring to change his or her designation shall file such change with the Division on Form JA-1, effective 07/16 (Rev. 12/02), http://www.flrules.org/Gateway/reference.asp?No=Ref-___________    http://www.flrules.org/Gateway/reference.asp?No=Ref-00364, “Florida Retirement System Pension Plan Change of Joint Annuitant (Retired members only)” herein adopted by reference and which may be obtained by calling the Division 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]. Upon receipt of the completed form, the Division shall adjust the member’s monthly benefit in accordance with subparagraph 60S-4.010(8)(c)1., F.A.C. The consent of a retired member’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 form by the Division.

(b) through (d) No change.

(9) through (11) No change.

Rulemaking Authority 121.031, 121.052(14) FS. Law Implemented 121.021, 121.031(2), 121.052, 121.055, 121.091(6), (11) FS. History–New 1-1-72, Amended 12-31-74, 7-1-79, 5-18-80, 8-26-81, 1-18-83, 11-6-84, 4-17-85, Formerly 22B-4.10, Amended 3-11-87, 9-5-90, 5-15-91, 9-8-92, Formerly 22B-4.010, Amended 3-12-96, 12-12-96, 2-24-99, 8-13-03, 4-5-12, 1-20-16,         _______.

 

60S-4.011 Designation of Beneficiary.

(1) through (3) No change.

(4) A member may designate a beneficiary or beneficiaries at any time prior to retirement, as follows:

(a) through (b) No change.

(c) Such beneficiary designation shall be made on the Form BEN-001, effective 07/16 (Rev. 09/13), http://www.flrules.org/Gateway/reference.asp?No=Ref-  http://www.flrules.org/Gateway/reference.asp?No=Ref-03976, Florida Retirement System Pension Plan Active Member Beneficiary Designation Form, herein adopted by reference, which may be obtained from the Forms page of the Division’s website, www.frs.MyFlorida.com, or by calling the Division 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].

(d) through (e) No change.

(5) Upon application for retirement, a member shall be required to complete a new designation of beneficiary on the appropriate application form as provided in subsection 60S-4.0035(1), F.A.C., as follows:

(a) A member who selects option 1 or 2, as provided in paragraphs 60S-4.010(1)(a) or (b), F.A.C., may:

1. through 2. No change.

3. Change his or her designation of beneficiary at any time on Form FST-12, effective 07/16 (Rev. 09/13), http://www.flrules.org/Gateway/reference.asp?No=Ref-   http://www.flrules.org/Gateway/reference.asp?No=Ref-03977, Florida Retirement System Pension Plan Retired Member and DROP Participant Beneficiary Designation Form, herein adopted by reference, which may be obtained from the Forms page of the Division’s website, www.frs.MyFlorida.com, or by calling the Division 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].

(b) through (c) No change.

(6) No change.

Rulemaking Authority 121.031 FS. Law Implemented 121.021, 121.091(6), (8) FS. History–New 1-1-72, Amended 12-31-74, 1-19-82, 9-9-82, Formerly 22B-4.11, Amended 2-7-89, 9-5-90, 5-15-91, 11-14-91, 9-8-92, Formerly 22B-4.011, Amended 3-12-96, 2-24-99, 8-13-03, 4-5-12, 5-1-14,                 .

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Elizabeth Stevens, Director

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

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: July 12, 2016

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: May 19, 2016, June 16, 2016