Remove adoptions of forms DP-ELE and DP-EXT from rule, to be adopted by reference in proper rules; amend language regarding HB/CS 495; amend language and forms regarding SB 7026; amend form DP-11 to include section for applicant’s email; remove ...

 

DEPARTMENT OF MANAGEMENT SERVICES

Division of Retirement

RULE NOS.:RULE TITLES:

60S-11.001Definitions

60S-11.002Participation

60S-11.004Benefits

PURPOSE AND EFFECT: Remove adoptions of forms DP-ELE and DP-EXT from rule, to be adopted by reference in proper rules; amend language regarding HB/CS 495; amend language and forms regarding SB 7026; amend form DP-11 to include section for applicant’s email; remove repealed rule citations.

SUMMARY: Amend forms DP-11, DP-EXT, DP-ELE, DP-Term; Update language pertaining to HB/CS 495 and SB 7026

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, 121.091(13), 121.091(13)(k) FS.

LAW IMPLEMENTED: 121.091, 121.091(13), 121.021, 1012.01, 121.31 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, [phone].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

60S-11.001 Definitions.

The definitions in Rule 60S-6.001, F.A.C., apply to this section unless otherwise expressly stated, and when used in this section, the following words and terms have the meaning indicated:

(1) through (5) No change.

(6) DROP participation period – means the period of time a member participates in DROP, not to exceed 60 months, except as provided in s. 121.091(13), F.S. However, K-12 instructional personnel as defined in Section 1012.01(2)(a)-(d), F.S., who are employed by district school boards and authorized by the district school superintendent or K-12 instructional personnel as defined in Section 1012.01(2)(a)-(d), F.S., who are employed by the Florida School for the Deaf and the Blind and authorized by the Board of Trustees of the Florida School for the Deaf and the Blind; or K-12 instructional personnel as defined in Section 1012.01(2)(a), F.S., who are employed by a developmental research school and authorized by the school’s director, or if the school has no director, by the school’s principal, may participate in DROP for up to 36 months beyond the 60-month period with Division approval.

(7) No change.

(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, adopted by reference in rule 60S-11.002, F.A.C. (Rev. 04/09) http://www.flrules.org/Gateway/reference.asp?No=Ref-00391, 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, adopted by reference in rule 60S-11.004, F.A.C. effective 04/17, http://www.flrules.org/Gateway/reference.asp?No=Ref-08145, 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 Form DP-EXT 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]. 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.

(9) through (10) No change.

Rulemaking Authority 121.031, 121.091(13) FS. Law Implemented 121.091(13) FS. History–New 9-16-03, Amended 4-5-12, 3-25-13, 4-30-17,         .

 

60S-11.002 Participation.

(1) through (2) No change.

(3) Application to Participate –

(a) Member’s Responsibility – It shall be the responsibility of the eligible member to make proper application to the Division to participate in DROP. To qualify for DROP, the member shall submit to the Division:

1. Form DP-ELE, effective        , http://www.flrules.org/Gateway/reference.asp?No=Ref-       , 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 as adopted in subsection 60S‑11.001(8), F.A.C., which shall specify the DROP begin date and the DROP termination and resignation date, shall be acknowledged by the employer. If the member is simultaneously employed by more than one FRS employer, the member must submit a completed DP-ELE form from each employer. Such form shall be received by the Division no later than the end of the last month of the member’s 12-month election period described in subsection 60S-11.002(2), F.A.C., or a later date if authorized in subsection 60S-11.002(2), F.A.C. Such termination and resignation date shall constitute a binding letter of resignation with the employer. Failure to complete and submit Form DP-ELE within the limitations of subsection 60S-11.002(2), F.A.C., will result in the member being ineligible for DROP participation.

2. Form DP-11, effective   03/17, http://www.flrules.org/Gateway/reference.asp?No=Ref-____ http://www.flrules.org/Gateway/reference.asp?No=Ref-08092, Florida Retirement System Pension Plan Application for Service Retirement and the Deferred Retirement Option Program (DROP); or Form DS-11 (Rev. 07/06) http://www.flrules.org/Gateway/reference.asp?No=Ref-00400, State and County Officers’ and Employees’ Retirement System Application for Service Retirement and the Deferred Retirement Option Program (DROP); or Form DT-11, effective 08/16, http://www.flrules.org/Gateway/reference.asp?No=Ref-07334, 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, www.frs.MyFlorida.com, or by calling the Division Toll Free at [phone], if calling from outside the Tallahassee calling area or locally at (850)907607-6500. 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]. 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.

(b) through (d) No change.

Rulemaking Authority 121.031, 121.091(13) FS. Law Implemented 121.021, 121.091, 1012.01 FS. History–New 9-16-03, Amended 4-5-12, 3-25-13, 10-23-16, 4-30-17,      .

 

60S-11.004 Benefits.

(1) Calculation of Benefits.

(a) The retirement benefit of a member who has elected to participate in the DROP shall be calculated as provided in Rule 60S-4.004 or 60S-4.006, F.A.C.

(b) No change.

(2) Beneficiary Designation – The beneficiary eligible to receive any accrued DROP benefits payable if the DROP participant dies before the completion of the DROP participation period will be the most recent joint annuitant or beneficiary designated to receive retirement benefits upon the death of the participant, as directed by the participant on the Form DP-11, Application for Service Retirement and the Deferred Retirement Optional Retirement Program (Form DP-11), for FRS Pension Plan members as adopted in Rule 60S-11.00211.003, F.A.C.; Form DS-11, for State and County Officers’ and Employees’ Retirement System members as adopted in Rule 60S-11.00211.003, F.A.C.; Form DT-11, for Teachers’ Retirement System members as adopted in Rule 60S-11.00211.003, F.A.C.); or Form FST-12, Florida Retirement System Pension Plan ­Retired Member and DROP Participant Beneficiary Designation Form (Retired Members Only) as adopted in subsection 60S-4.011(5), F.A.C. However, if the beneficiary or joint annuitant dies during the DROP participation period, the participant may designate a new beneficiary as provided in Rule 60S-4.011, F.A.C., as follows:

(a) through (d) No change.

(3) Accrual of DROP Benefits.

(a) through (b) No change.

(c) The DROP benefit will be increased by the annual cost-of-living adjustment as provided in Rule 60S-4.013, F.A.C.

(4) No change.

(5) Employment During DROP Participation.

(a) No change.

(b) Employment continues during participation in DROP through the date the member preselected to stop participation in DROP, except that elected officers may continue in office after the DROP end date as provided in subsections (10) and (11), and certain instructional and administrative personnel, with approval of their employer and the Division, may extend their DROP participation for up to 36 calendar months beyond the 60-month period as provided in subparagraph 5.

1. No change.

2. If the participant is employed by two employers upon beginning participation in DROP, the member and both employers must complete and submit Form DP-ELE, Florida Retirement System Pension Plan Notice of Election to Participate in the Deferred Retirement Option Program (DROP) and Resignation of Employment, as adopted by reference in Rule 60S-11.002 60S-11.001(8), F.A.C. Only one employer is required to submit Form DP-11. A change or addition of a new employer after commencement of DROP only requires the employee and new employer to submit Form DP-ELE.

3. through 4. No change.

5. DROP participants who are eligible to participate in DROP beyond the participant’s initial 60-month DROP participation period as described in Section 121.091(13), F.S., instructional personnel employed by the Florida School for the Deaf and the Blind and authorized by the Board of Trustees of the Florida School for the Deaf and the Blind, who are instructional personnel as defined in Sections 1012.01(2)(a)-(d), F.S., in grades K-12 and authorized by the district school superintendent, or who are instructional personnel as defined in Section 1012.01(2)(a), F.S., employed by a developmental research school and authorized by the schools director, or if the school has no director, by the school’s principal, may participate in DROP for up to 36 calendar months beyond the 60-month participation period with Division approval. To apply for extended DROP participation, the eligible employee must submit to the division a completed Form DP-EXT, effective___, http://www.flrules.org/Gateway/reference.asp?No=Ref-     , Florida Retirement System Pension Plan Extension of Deferred Retirement Option Program (DROP) for Specified K-12 Instructional Personnel , as herein adopted by reference in subsection 60S-11.001(8), F.A.C., The application must be received prior to the DROP termination date established for the participant’s his or her initial 60-month DROP participation period, but no earlier than six months prior to such date. The applicant will receive confirmation from the Division when the DP-EXT is received and when the application for extension is approved or denied.

(6) Disability benefits – DROP participants shall not be eligible for disability benefits as described in Rule 60S-4.0073, F.A.C.

(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. 09/13), http://www.flrules.org/Gateway/reference.asp?No=Ref-04133, Florida Retirement System Pension Plan Beneficiary Designation Form for the Alternate Payee of a DROP Participant, herein adopted by reference, in the event the Alternate Payee predeceases the DROP participant during the period of DROP participation. Form DP-12 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].

(8) Death Benefits.

(a) No change.

(b) A DROP participant’s survivors shall not be eligible to receive FRS in-line-of-duty death benefits. as described in subsection 60S-4.008(4), F.A.C.

(c) through (d) No change.

(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, effective_______ (Rev. 02/12), http://www.flrules.org/Gateway/reference.asp?No=Ref-______     http://www.flrules.org/Gateway/reference.asp?No=Ref-01977, 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 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]. If a participant fails to terminate on or before the DROP termination and resignation date:

(a) through (c) No change.

(d) Each employer is liable for payment of or eligible for a refund of, as applicable, the difference between the DROP contributions paid and the required FRS retirement contributions for the applicable class of membership during the period of DROP participation. Payment of additional contributions shall include 1.3 6.5 percent interest compounded annually. No interest will be paid on refunds to employers.

(e) through (f) No change.

(10) through (13) No change.

(14) Reemployment After DROP – Except as otherwise provided in subsection (10):

(a) Upon the conclusion of DROP, the reemployment provisions specified in Rule 60S-4.012, F.A.C., are applicable to DROP participants.

(b)1. For DROP participants with DROP termination dates before July 1, 2010, reemployment with an employer during the first calendar month after concluding DROP shall result in cancellation of DROP and retirement. The member’s DROP application shall be void, and he or she shall be required to repay all DROP and monthly retirement benefits received. The employer who reemploys such member is liable for payment of or eligible for a refund of, as applicable, the difference between the DROP contributions paid and the required FRS retirement contributions for the applicable class of membership during the period of DROP participation. Payment of additional contributions shall include 6.5 percent interest compounded annually. No interest will be paid on refunds to employers.

2. For DROP participants with DROP termination dates on or after July 1, 2010, reemployment with an employer during the first six calendar months after concluding DROP shall result in cancellation of DROP and retirement. The member’s DROP application shall be void, and he or she shall be required to repay all DROP and monthly retirement benefits received. The employer who reemploys such member is liable for payment of or eligible for a refund of, as applicable, the difference between the DROP contributions paid and the required FRS retirement contributions for the applicable class of membership during the period of DROP participation. Payment of additional contributions shall include 6.5 percent interest compounded annually. No interest will be paid on refunds to employers.

Rulemaking Authority 121.031, 121.091(13)(k) FS. Law Implemented 121.091, 121.131 FS. History–New 9-16-03, Amended 4-5-12, 3-25-13, 5-19-14, 4-17-17,         .

 

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