Amend rule language and forms to implement changes related to SB 7026. Remove repealed rule citations, any language duplicative of statute, and any other necessary changes.

 

DEPARTMENT OF MANAGEMENT SERVICES

Division of Retirement

RULE NOS.:RULE TITLES:

60S-4.012Employment After Retirement

60S-4.020Retiree Health Insurance Subsidy

PURPOSE AND EFFECT: Amend rule language and forms to implement changes related to SB 7026. Remove repealed rule citations, any language duplicative of statute, and any other necessary changes.

SUMMARY: Amend rule language and forms FR-23 and HIS-IP to reflect changes related to SB 7026. Remove language duplicative of statute.

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: 112.363(7), 121.031, FS.

LAW IMPLEMENTED: 112.363, 121.021, 121.031, 121.053, 121.091(9), 121.046(4), 238.181, 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, Chief, Bureau of Research and Education, Department of Management Services, Division of Retirement, 2450 Shumard Oak Blvd., Bldg. 2, Tallahassee FL 32311, 850-414-6349.

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

60S-4.012 Employment After Retirement.

(1) No change.

(2) The following reemployment limitations shall apply to any retiree of a state-administered retirement system who is reemployed by a Florida Retirement System employer in either a regularly established position or a temporary position, during the first 12 calendar months of retirement. For service retirements without DROP participation this 12 calendar month reemployment limitation period shall commence the month of the retiree’s effective date of retirement. For DROP participants such reemployment limitation period shall apply and commence in the calendar month following the participant’s DROP termination date. Any person employed in violation of any of the limitations in this section, and any employing agency which knowingly employs or appoints such person without notifying the Division to suspend retirement benefits shall be jointly and severally liable for reimbursement to the retirement trust fund of any benefits paid during the reemployment limitation period. Such employing agency shall have a written statement from the retiree that he or she is not retired from a state-administered retirement system or may use the State Board of Administration Form CERT (Rev. 06/2012) http://www.flrules.org/Gateway/reference.asp?No=Ref-01935, Florida Retirement System (FRS) – Certification Form, created for such purpose and herein adopted by reference, which may be obtained from the Employer 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 of speech impaired by calling the Division via T.D.D. at the Florida Relay System by dialing 711 or [phone].

(a) No change.

(b)1. through 2. No change.

3. If a retiree is reemployed during the calendars months of the reemployment limitation period applicable to his or her effective retirement date or DROP termination date as provided in sub paragraphs 1., or 2., above, he or she shall:

a. Notify the Division in writing of such employment and have his or her benefits suspended effective the first day of the first month of reemployment which may be done utilizing Form FR-23 effective ____ (Rev. 07/10), http://www.flrules.org/Gateway/reference.asp?No=Ref-__ http://www.flrules.org/Gateway/reference.asp?No=Ref-00355, Florida Retirement System Pension Plan Notification of Reemployment for Suspension of Retirement Benefits, 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]. This suspension shall remain in effect for the balance of the reemployment limitation period or for every month of the reemployment limitation period in which he or she is employed, and benefits that would have been paid during the period of suspension are forfeited;

b. through c. No change.

4. No change.

(3)(a) through (b) No change.

(c) For retirements without DROP participation effective on or after July 1, 2010 and for DROP termination dates on or after July 1, 2010. Exceptions for FRS retirees are outlined in Section 121.091(9), F.S., there are no reemployment limitation exceptions during the seventh through the twelfth calendar month of the reemployment limitation period.

(4) No change.

(5) Any employer who employs a retired member of a state administered retirement system, in a regularly established position, shall pay the required contributions in accordance with subsections 60S-3.003(6) and (7), F.A.C.

(a) Those retirees who are initially reemployed in a regularly established position prior to July 1, 2010 shall have renewed membership in the Florida Retirement System.

(b) Those retirees who are initially reemployed in a regularly established position on or after July 1, 2010 shall not be eligible for renewed membership in the Florida Retirement System.

(6)(a)1. Any person previously retired from a state-administered retirement system who holds an elective public office or an appointment to an elective public office on or before June 30, 2010, shall have renewed membership in the Florida Retirement System as provided by Rule 60S-1.0045, F.A.C., for an office not covered by the Elected Officers’ Class, or as provided by subsection 60S-1.0055(4), F.A.C., for an office that is covered by the Elected Officers’ Class. Such Elected Officers shall continue to receive retirement benefits as well as compensation for the elected office without regard to the limitations provided in this section.

2. Any person previously retired from a state-administered retirement system who is initially reemployed as a result of holding an elective public office or an appointment to an elective public office on or after July 1, 2010, shall not be eligible for renewed membership in the Florida Retirement System.

(b) Any retired member who was elected to an office prior to July 1, 1990, suspended his or her retirement benefit, and reinstated his or her Florida Retirement System membership, shall, upon subsequent retirement, have his or her retirement benefits recomputed using such period of creditable reemployment as provided in subsection 60S-2.008(1), F.A.C. All required contributions shall be made by the employer and/or the member for the entire period of reemployment, as required in Rule 60S-3.009, F.A.C.

(c) Any elected officer participating in the Deferred Retirement Optional Program as a member of the Elected Officers’ Class prior to July 1, 2002 may continue in elected office upon reaching the Deferred Retirement Optional Program end date and shall become a renewed member of the Elected Officers’ Class the first of the month following Deferred Retirement Optional Program termination.

(d)1. Effective July 1, 2002 through June 30, 2010, any elected officer participating in the Deferred Retirement Optional Program as a member of the Elected Officers’ Class may continue in elected office upon reaching the Deferred Retirement Optional Program end date and shall not be eligible to become a renewed member of the Florida Retirement System for as long as such officer holds an office covered by the Elected Officers’ Class under the Florida Retirement System. Any such elected officer who chooses to continue in elected office beyond his or her DROP end date would be subject to the termination requirements and reemployment limitations in effect on the date when he or she no longer holds elective office.

2. Effective on and after July 1, 2010, any elected officer participating in the Deferred Retirement Optional Program regardless of membership class on or after July 1, 2010 is subject to termination as defined in Section 121.021, F.S. and reemployment limitations as provided in Section 121.091(9), F.S., upon completion of his or her DROP participation period. However, such elected officer may defer termination and reemployment limitations until the end of his or her current term of office or, if the officer is consecutively elected or reelected to an elective office eligible for coverage under the Florida Retirement System, until he or she no longer holds an elective office. Such elected officer who chooses to defer termination and reemployment limitations beyond his or her DROP end date would be subject to the termination and reemployment limitations in effect on the date he or she terminates elective office.

3. Any elected officer as provided in subparagraph (d)1., above, who chooses to continue in elected office beyond his or her DROP end date or any elected officer as provided in subparagraph (d)2., above, who chooses to defer termination and reemployment limitations beyond his or her DROP end date the following applies:

a. The officer shall not be eligible to receive his or her accumulated DROP account and commence receiving monthly retirement benefits until termination of elective office. Monthly retirement benefits shall be paid on a prospective basis only.

b. The officer shall be subject to the termination requirement and reemployment limitations in effect on the date he or she terminates elective office.

c. The officer’s DROP account may not accrue additional monthly benefits beyond the DROP end date.

d. If the officer’s DROP participation began prior to July 1, 2010, the officer’s DROP account shall continue to earn interest beyond the DROP end date as provided in Section 121.091(13), F.S.

e. If the officer’s DROP participation began on or after July 1, 2010, the officer’s DROP account shall not earn interest beyond the DROP end date.

(7)(a) A retired Justice or Judge whose retirement without DROP participation is effective prior to July 1, 2010 or whose DROP termination date is prior to July 1, 2010 who after meeting termination as defined in Section 121.021, F.S., is assigned to active judicial service pursuant to Article V of the State Constitution shall continue to receive retirement benefits without being affected by the restrictions of this section but shall not be eligible for renewed membership in the Florida Retirement System.

(b) A retired Justice or Judge whose retirement without DROP participation is effective on or after July 1, 2010, or whose DROP termination date is on or after July 1, 2010, who after meeting termination as defined in Section 121.021, F.S., is assigned to active judicial service pursuant to Article V of the State Constitution shall be subject to reemployment limitations as provided in Section 121.091(9), F.S., and shall not be eligible for renewed membership in the Florida Retirement System.

(8) Any person who holds an elective public office and is concurrently employed in nonelected covered employment may elect to retire effective on or before June 1, 2010, from his or her nonelected employment while continuing employment in his or her elective public office. Such person shall be required to terminate his or her nonelected covered employment as provided in Rule 60S-6.001, F.A.C. (termination). Any person exercising this election shall receive his or her retirement benefits in addition to the compensation of the elective office without regard to the limitations otherwise provided in paragraph 60S-4.012(2)(b), F.A.C.; and,

(a) Effective July 1, 1990, any such person whose elective office is covered by the Elected Officers’ Class whose effective retirement date for his or her nonelected covered employment is on or before June 1, 2010, shall be reenrolled in such class as provided in subsection 60S-1.0055(4), F.A.C.

(b) Effective July 1, 1991 and through June 30, 2010, any such person whose elective office is covered by the Regular Class shall be reenrolled in such class as provided in subsection 60S-1.0045, F.A.C.

(9) From July 1, 1997 through December 31, 1998, any retiree of the Florida Retirement System may be reemployed by a covered employer during the second through twelfth months of the reemployment limitation period without suspending his or her retirement benefits, provided that the reemployment is for the sole purpose of working on the technical aspects of correcting or replacing the computer systems and programs necessary to resolve the year 2000 date problem for computing for such covered employer.

Rulemaking Authority 121.031 FS. Law Implemented 121.021, 121.053, 121.091(9), 121.046(4), 238.181 FS. History–New 1-1-72, Amended 10-20-72, Repromulgated 12-31-74, Amended 7-1-79, 8-26-81, 9-9-82, 10-11-82, 11-6-84, 4-17-85, 9-24-85, Formerly 22B-4.12, Amended 3-11-87, 2-7-89, 9-5-90, 11-14-91, 9-8-92, Formerly 22B-4.012, Amended 3-18-93, 4-5-95, 12-12-96, 2-24-99, 8-13-03, 4-5-12, 3-25-13,               .

 

60S-4.020 Retiree Health Insurance Subsidy.

(1) A monthly retiree health insurance subsidy shall be paid to each eligible retired member or beneficiary who is a spouse or financial dependent receiving a benefit from a state-administered retirement system except as follows:

(a) No change.

(b) Retired participants of the Senior Management Service Optional Annuity Program as provided in Section 121.055(6), F.S., or the State University System Optional Retirement Program as provided in Section 121.35, F.S., shall not receive the subsidy payments. The employer of such participants shall pay contributions as provided in subsections 60V-2.003(2) and 60U-2.003(1), F.A.C., which shall be applied to the purchase of the participant’s annuity contracts.

(2) Eligible retired members or beneficiaries must make application to the Division for the Health Insurance Subsidy and certify their health insurance coverage in accordance with procedures established by the Division in order to receive the Health Insurance Subsidy. FRS Pension Plan retirees or beneficiaries shall make application and certify their health insurance coverage to the Division on Form HIS-1 (Rev. 07/05) http://www.flrules.org/Gateway/reference.asp?No=Ref-00403, Florida Retirement System Pension Plan Health Insurance Subsidy Certification Form, herein adopted by reference, which is mailed to the FRS Pension Retiree’s address of record when placed on retired payroll and may also be obtained from the Forms page of the Division’s website, www.frs.MyFlorida.com, or by calling the Division’s Retired Payroll Section Toll Free at [phone] 1(888)377-7687, if calling from outside the Tallahassee calling area or locally at [phone] 488-4742, 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. FRS Investment Plan retirees or beneficiaries shall make application to the Division for the Health Insurance Subsidy on Form HIS-IP, effective        05/17, http://www.flrules.org/Gateway/reference.asp?No=Ref-    http://www.flrules.org/Gateway/reference.asp?No=Ref-08150, Florida Retirement System (FRS) Application for Health Insurance Subsidy for Investment Plan Retirees Members, herein adopted by reference, and shall certify their health insurance coverage to the Division on Form HIS-IP-2 (Rev 10/11) http://www.flrules.org/Gateway/reference.asp?No=Ref-00405, Florida Retirement System (FRS) Health Insurance Subsidy Certification for Investment Plan Members, herein adopted by reference. Both of these forms may be obtained from the Forms page of the Division’s website, www.frs.MyFlorida.com, or by calling the Division’s Bureau of Retirement Calculations Toll Free at [phone] 1(888)377-7687, if calling from outside the Tallahassee calling area or locally at [phone] 488-4742, 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. If the Division receives such application and certification of health insurance coverage within 6 months after retirement FRS benefits commence, the Retiree Health Insurance Subsidy may be paid retroactive up to the effective retirement date. If the Division receives the certification of insurance coverage 6 or more months after retirement benefits commence, the member will be eligible to receive retroactive payments for a maximum of 6 months only. Retroactive Retiree Health Insurance Subsidy benefits can only be paid for the months of certified health insurance coverage.

(3) through (4) No change.

Rulemaking Authority 112.363(7), 121.031(2) FS. Law Implemented 112.363, 121.031 FS. History–New 5-18-88, Amended 11-14-91, Formerly 22B-4.020, Amended 3-18-93, 2-24-99, 4-17-12, 3-25-13, 8-26-14, 12-3-14, 5-29-17,                .

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Elizabeth Stevens, Director

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Erin Rock, Secretary

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: July 19, 2018

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: June 21, 2018