The purpose and effect are to amend Division of Retirement rules to correspond with statutory changes up through the 2010 Legislative session and delete obsolete language.  

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    DEPARTMENT OF MANAGEMENT SERVICES
    Division of Retirement

    RULE NO.: RULE TITLE:
    60S-3.002: Statements of Policy
    60S-3.003: Retirement Contributions for Regular, Special Risk, Elected Officer, Special Risk Administrative Support and Senior Management Service Classes of the Pension and Investment Plans of the Florida Retirement System; Contributions for the Retiree Health Insurance Subsidy; and Contributions for the Deferred Retirement Option Program
    60S-3.004: Retirement Contributions for Past Service Credit
    60S-3.006: Retirement Contributions for Military Service Credit
    60S-3.007: Retirement Contributions for Leave of Absence Credit
    60S-3.010: Contributions for Social Security
    60S-3.011: Payment of Contributions
    60S-3.013: Retirement Contributions for Upgraded Previous Service Credit
    60S-3.015: Retirement Contributions for Retroactive Special Risk Service

    PURPOSE AND EFFECT: The purpose and effect are to amend Division of Retirement rules to correspond with statutory changes up through the 2010 Legislative session and delete obsolete language.

    SUMMARY: The amendments to this rule reflect the statutory revisions that: limit the renewal of membership in the Florida Retirement System (FRS); change contribution rates; allow metropolitan planning organizations, public charter schools and public charter technical career centers to participate in the FRS; and regulate the purchase of past service credit with the City of Jacksonville by certain employees of the Fourth Judicial Circuit. Other amendments to this rule: update compensation methodology used to calculate the contributions due for a military leave-of-absence, as necessary to comply with the Uniformed Services Employment and Reemployment Rights Act; clarify when a state university system employer may be subject to a special assessment based upon faculty salary increases; and the adopt by reference of one existing Division form previously adopted under Rule 60S-9.001, F.A.C.

    SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COST: No State of Estimated Regulatory Cost was prepared. The agency has determined that this rule shall not have an effect on small businesses as defined by Section 288.703, Florida Statutes, nor on small counties or small cities as defined by Section 120.52, Florida statutes.

    The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimate 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 the statement of estimated costs or to provide a proposal for a lower regulatory cost alternative must do so in writing within 21 days of this notice.

    RULEMAKING AUTHORITY: 112.363(7), 121.031, 121.052(7) FS.
    LAW IMPLEMENTED: 112.215(13), 112.363, 121.021, 121.031, 121.0515, 121.052, 121.055, 121.061, 121.071, 121.081, 121.091, 121.111, 121.113, 121.121(4), 121.122, 121.30, 121.70, 121.71, 121.72, 121.73, 121.74, 121.75, 121.76 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: November 4, 2011, 10:00 a.m., ET

    PLACE: Division of Retirement of the Department of Management Services, Director’s Conference Room, Suite 208, 1317 Winewood Blvd., Bldg 8, Tallahassee, Florida 32399-1560

    THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULES IS: Garry Green, Operations and Management Consultant Manager, Department of Management Services, Division of Retirement, 1317 Winewood Blvd., Bldg. 8, Tallahassee FL 32399-1560, (850)488-5706

     

    THE FULL TEXT OF THE PROPOSED RULES IS:

    60S-3.002 Statements of Policy.

    (1) through (2) No change.

    (3) All service credit for which the required contributions have been made and remain on deposit in the retirement trust fund shall be used in determining the benefits for which the member and his or her joint annuitant or surviving spouse are eligible.

    (4) The required employee contributions for all service other than current service, including but not limited to prior service, past service, military service, leave of absence service, and out-of-state and in-state service, shall be paid by cash, personal check, cashier’s check, or money order. Direct rollovers from eligible retirement plans as described in Section 401(a)(31), Internal Revenue Code, will be accepted for the purchase of creditable service, however, such payment must be accompanied with a properly executed Form PRO-1 (Rev. 10/07), Florida Retirement System Pension Plan (401(a)Plan) Pretax Direct Rollover Form, herein adopted by reference. Such contributions shall be accompanied by a statement identifying the service for which payment is made; and shall be made in a lump sum for the total amount due or in annual payments of not less than $100, except for the final payment if less than $100, unless another method of payment is authorized in these rules. Interest will be added annually to any unpaid balance not received at the Division on or before June 30 as provided in Rule 60S-3.0035, F.A.C.

    (5) No change.

    (6) On and after July 1, 1972, all remittances (including member contributions, matching contributions and all interest thereon) made by a member for the purchase of current service, prior service, past service, military service, leave of absence service or out-of-state service credit shall be credited to the member’s account. A refund of a member’s retirement contributions at termination, as provided in subsection 60S-4.009(3)(5), F.A.C., shall include all such remittances made by the member that have been credited to his or her account. If requested, a member may receive at the time of his or her retirement a refund of any contributions he or she made for the purchase of any additional service. A refund of member contributions cancels the member’s right to any retirement service credit represented by the refunded contributions. A member is not entitled to a refund of contributions paid by an employer, except as provided in subparagraph 60S-3.004(1)(c)4., F.A.C.

    (7) No change.

    (8) In the case of a State University System faculty member who receives compensation from faculty practice funds or other sources that do not contribute to the FRS, and who receives a salary increase from sources that do contribute to the FRS that are greater than twice the appropriated average State University System faculty salary percentage increase for that year (where such increase is determined by the Division to have significant fiscal impact upon the FRS), an assessment payable to the FRS may be required of the State University.

    Rulemaking Specific Authority 121.031 FS. Law Implemented 112.215(13), 121.031, 121.091(7), 121.71 FS. History–New 1-1-72, Amended 10-20-72, 12-31-74, 1-16-77, 8-26-81, 1-19-82, Formerly 22B-3.02, Amended 5-15-91, Formerly 22B-3.002, Amended 8-4-94, 8-13-03,________.

     

    60S-3.003 Retirement Contributions for Regular, Special Risk, Elected Officer, Special Risk Administrative Support and Senior Management Service Classes of the Pension and Investment Plans of the Florida Retirement System; Contributions for the Retiree Health Insurance Subsidy; and Contributions for the Deferred Retirement Option Program.

    The following tables state the required retirement and Retiree Health Insurance Subsidy contribution rates for members of the Florida Retirement System and their employers in terms of percentages of members’ gross compensation as defined in Rule 60S-6.001, F.A.C.; however, effective July 1, 1990, retirement contributions shall not be made on fiscal year compensation in excess of the Internal Revenue Code (IRC) section 401(a)(17) maximum as provided in the definition of Compensation in Rule 60S-6.001, F.A.C. Contribution rates for both members and employers have changed since they were originally established and these changes are reflected in these tables. Employer contribution rates for the Florida Retirement System Investment Plan are effective on and after July 1, 2002. Changes in the contribution rates are always effective with the first salary paid on or after the beginning date of a change. Contributions are required to be made or deducted as may be appropriate, each pay period.

    Effective July 1, 2002, contribution rates represent a blended rate actuarially determined to combine the Pension Plan and Investment Plan rates, by class, (including the Investment Plan disability rates), reduced by application of funds from the surplus in the Florida Retirement System Trust Fund.

    (1) Retirement contributions for Regular Class regular members are as follows:

    Dates of Rate ChangesMembersEmployers

    December 1, 1970 through December 31, 1974,4%4%

    for state agencies, state universities, community

    colleges and district school boards

    December 1, 1970 through September 30, 1975,4%4%

    for county agencies, cities and independent special districts

    January 1, 1975 through September 30, 1978,0%9%

    for state agencies and state universities

    January 1, 1975 through July 31, 1978,0%9%

    for community colleges and district school boards

    October 1, 1975 through September 30, 1978,0%9%

    for county agencies, cities and independent special districts

    August 1, 1978 through September 30, 1981,0%9.1%

    for community colleges and district school boards

    October 1, 1978 through September 30, 1981,0%9.1%

    for state agencies, state universities, county agencies,

    cities, and independent special districts

    October 1, 1981 through September 30, 19840%10.93%

    October 1, 1984 through September 30, 19860%12.24%

    October 1, 1986 through December 31, 19880%13.14%

    January 1, 1989 through December 31, 19890%13.90%

    January 1, 1990 through December 31, 19900%14.66%

    January 1, 1991 through December 31, 19910%15.72%

    January 1, 1992 through December 31, 19920%16.51%

    January 1, 1993 through December 31, 19930%17.27%

    January 1, 1994 through December 31, 19940%17.10%

    January 1, 1995 through December 31, 19950%16.91%

    January 1, 1996 through June 30, 19960%17.00%

    July 1, 1996 through June 30, 19980%16.77%

    July 1, 1998 through June 30, 19990%15.51%

    July 1, 1999 through June 30, 20000%9.21%

    July 1, 2000 through June 30, 20010%8.11%

    July 1, 2001 through June 30, 20020%6.09%

    Effective July 1, 2002 through June 30, 20030%4.50%

    July 1, 2003 through June 30, 20040%6.18%

    July 1, 2004 through June 30, 20050%6.20%

    July 1, 2005 through June 30, 20060%6.67%

    July 1, 2006 through June 30, 20100%8.69%

    Effective July 1, 20100%9.63%

    (2) Retirement contributions for Special Risk Class special risk members are as follows:

    Dates of Rate ChangesMembersEmployers

    December 1, 1970 through September 30, 19746%6%

    October 1, 1974 through December 31, 1974,8%8%

    for state agencies, state universities, community

    colleges, and district school boards

    October 1, 1974 through September 30, 1975,8%8%

    for county agencies, cities and independent special districts

    January 1, 1975 through September 30, 1978,0%13%

    for state agencies, state universities, community colleges,

    and district school boards

    October 1, 1975 through September 30, 1978,0%13%

    for county agencies, cities, and independent special districts

    October 1, 1978 through September 30, 19810%13.95%

    October 1, 1981 through September 30, 19840%13.91%

    October 1, 1984 through September 30, 19860%14.67%

    October 1, 1986 through December 31, 19880%15.11%

    January 1, 1989 through December 31, 19890%17.50%

    January 1, 1990 through December 31, 19900%19.90%

    January 1, 1991 through December 31, 19910%25.52%

    January 1, 1992 through December 31, 19920%26.35%

    January 1, 1993 through December 31, 19930%27.14%

    January 1, 1994 through December 31, 19940%27.03%

    January 1, 1995 through December 31, 19950%26.83%

    January 1, 1996 through June 30, 19960%26.84%

    July 1, 1996 through June 30, 19980%26.44%

    July 1, 1998 through June 30, 19990%24.38%

    July 1, 1999 through June 30, 20000%20.22%

    July 1, 2000 through June 30, 20010%19.25%

    July 1, 2001 through June 30, 20020%17.23%

    Effective July 1, 2002 through June 30, 20030%14.75%

    July 1, 2003 through June 30, 20040%17.32%

    July 1, 2004 through June 30, 20050%17.34%

    July 1, 2005 through June 30, 20060%17.37%

    July 1, 2006 through June 30, 20100%19.76%

    Effective July 1, 20100%22.11%

    (3) Retirement contributions for Special Risk Administrative Support Class members are as follows:

    Dates of Rate ChangesMembersEmployers

    July 1, 1982 through September 30, 19840%11.14%

    October 1, 1984 through September 30, 19860%13.09%

    October 1, 1986 through December 31, 19880%15.44%

    January 1, 1989 through December 31, 19890%14.76%

    January 1, 1990 through December 31, 19900%14.09%

    January 1, 1991 through December 31, 19910%20.16%

    January 1, 1992 through December 31, 19920%19.51%

    January 1, 1993 through December 31, 19930%18.83%

    January 1, 1994 through December 31, 19940%18.59%

    January 1, 1995 through December 31, 19950%17.81%

    January 1, 1996 through June 30, 19960%17.80%

    July 1, 1996 through June 30, 19980%17.20%

    July 1, 1998 through June 30, 19990%14.64%

    July 1, 1999 through June 30, 20000%11.53%

    July 1, 2000 through June 30, 20010%10.64%

    July 1, 2001 through June 30, 20020%8.62%

    Effective July 1, 2002 through June 30, 20030%5.30%

    July 1, 2003 through June 30, 20040%8.71%

    July 1, 2004 through June 30, 20050%8.73%

    July 1, 2005 through June 30, 20060%8.76%

    July 1, 2006 through June 30, 20100%11.39%

    Effective July 1, 20100%12.10%

    (4) Retirement contributions for Elected Officers’ Class members are as follows:

    Dates of Rate ChangesMembersEmployers

    July 1, 1972 through September 30, 1977

    Legislators8%8%

    All Other Members8%8%

    October 1, 1977 through September 30, 1978

    Legislators8%8%

    All Other Members4%12%

    October 1, 1978 through September 30, 1979

    Legislators8%10.57%

    All Other Members4%16.78%

    October 1, 1979 through September 30, 1981

    Legislators8%10.57%

    Governor, Lt. Governor,4%16.78%

    Cabinet Officer

    All Other Members0%20.78%

    July 1, 1981 through June 30, 1984

    County Elected Officers0%19.30%

    July 1, 1984 through September 30, 1984

    County Elected Officers0%20.25%

    October 1, 1981 through September 30, 1984

    Legislators0%19.30%

    Governor, Lt. Governor,0%21.03%

    Cabinet Officer

    State Attorney, Public0%20.95%

    Defender

    Justice or Judge0%22.55%

    October 1, 1984 through September 30, 1986

    Justice or Judge0%21.79%

    County Elected Officers0%16.97%

    All Other Members0%10.98%

    October 1, 1986 through December 31, 1988

    Justice or Judge0%20.94%

    County Elected Officers0%17.19%

    All Other Members0%11.50%

    January 1, 1989 through December 31, 1989

    Justice, Judge0%22.58%

    County Elected Officers0%18.44%

    All Other Members0%13.70%

    January 1, 1990 through December 31, 1990

    Justice, Judge0%24.22%

    County Elected Officers0%19.71%

    All Other Members0%15.91%

    January 1, 1991 through December 31, 1991

    Justice, Judge0%26.63%

    County Elected Officers0%23.32%

    All Other Members0%17.73%

    January 1, 1992 through December 31, 1992

    Justice, Judge0%28.27%

    County Elected Officers0%24.59%

    All Other Members0%19.94%

    January 1, 1993 through December 31, 1993

    Justice, Judge0%29.91%

    County Elected Officers0%25.84%

    All Other Members0%22.14%

    January 1, 1994 through December 31, 1994

    Justice, Judge0%30.52%

    County Elected Officers0%26.07%

    All Other Members0%22.65%

    January 1, 1995 through December 31, 1995

    Justice, Judge0%30.21%

    County Elected Officers0%27.48%

    All Other Members0%22.80%

    January 1, 1996 through June 30, 1996

    Justice, Judge0%30.15%

    County Elected Officers0%27.54%

    All Other Members0%22.90%

    July 1, 1996 through June 30, 1998

    Justice, Judge0%29.55%

    County Elected Officers0%27.33%

    All Other Members0%23.07%

    July 1, 1998 through June 30, 1999

    Justice, Judge0%27.21%

    County Elected Officers0%26.99%

    All Other Members0%22.33%

    July 1, 1999 through June 30, 2000

    Justice, Judge0%20.48%

    County Elected Officers0%17.05%

    All Other Members0%14.31%

    July 1, 2000 through June 30, 2001

    Justice, Judge0%19.38%

    County Elected Officers0%15.95%

    All Other Members0%13.21%

    July 1, 2001 through June 30, 2002

    Justice, Judge0%17.35%

    County Elected Officers0%13.93%

    All Other Members0%11.19%

    Effective July 1, 2002 through June 30, 2003

    Justice, Judge0%14.60%

    County Elected Officers0%10.60%

    All Other Members0%8.15%

    July 1, 2003 through June 30, 2004

    Justice, Judge0%17.44%

    County Elected Officers0%14.02%

    All Other Members0%11.28%

    July 1, 2004 through June 30, 2005

    Justice, Judge0%17.46%

    County Elected Officers0%14.04%

    All Other Members0%11.30%

    July 1, 2005 through June 30, 2006

    Justice, Judge0%17.49%

    County Elected Officers0%14.07%

    All Other Members0%11.33%

    July 1, 2006 through June 30, 2010

    Justice, Judge0%18.40%

    County Elected Officers0%15.37%

    All Other Members0%13.32%

    Effective July 1, 2010

    Justice, Judge0%20.65%

    County Elected Officers0%17.50%

    All Other Members0%15.20%

    (5) Retirement contributions for Senior Management Service Class members are as follows:

    Dates of Rate ChangesMembersEmployers

    February 1, 1987 through December 31, 19880%13.88%

    January 1, 1989 through December 31, 19890%14.95%

    January 1, 1990 through December 31, 19900%16.04%

    January 1, 1991 through December 31, 19910%18.39%

    January 1, 1992 through December 31, 19920%19.48%

    January 1, 1993 through December 31, 19930%20.55%

    January 1, 1994 through December 31, 19940%23.07%

    January 1, 1995 through December 31, 19950%23.88%

    January 1, 1996 through June 30, 19960%24.14%

    July 1, 1996, through June 30, 19980%21.58%

    July 1, 1998 through June 30, 19990%23.10%

    July 1, 1999 through June 30, 20000%11.19%

    July 1, 2000 through June 30, 20010%10.09%

    July 1, 2001 through June 30, 20020%8.07%

    Effective July 1, 2002 through June 30, 20030%4.80%

    July 1, 2003 through June 30, 20040%8.16%

    July 1, 2004 through June 30, 20050%8.18%

    July 1, 2005 through June 30, 20060%9.29%

    July 1, 2006 through June 30, 20100%11.96%

    Effective July 1, 20100%13.43%

    (6) Retirement contributions for any retiree reemployed in a regularly established position by an employer, except for a retiree who is elected or appointed to a position eligible for the Elected Officers’ Class, shall be as follows:

    (a) Prior to July 1, 1991, the contributions for such retiree shall be equal to the unfunded actuarial accrued liability portion of the employer contribution required for Regular Class members.

    Dates of Rate ChangesMembersEmployers

    July 1, 1985 through September 30, 19860%5.71%

    October 1, 1986 through December 31, 19880%5.91%

    January 1, 1989 through December 31, 19890%3.37%

    January 1, 1990 through December 31, 19900%4.13%

    January 1, 1991 through June 30, 19910%4.81%

    (b) Effective July 1, 1991 and through June 30, 2010, such retiree shall be enrolled as a renewed member and the contributions shall be equal to the total contributions required for members of the Regular Class or the Elected Officers’ Class, as appropriate. Effective July 1, 1997 and through June 30, 2010, a retiree whose position is assigned to the Senior Management Service Class shall have renewed membership in the Senior Management Service Class and the contributions shall be equal to the total contributions required for Senior Management Service Class members.

    (c) On and after July 1, 2010, any retiree of a state administered retirement system who is initially reemployed in a regularly established position shall not be eligible for renewed membership and the retirement contributions for such reemployed retirees shall be equal to the unfunded actuarial accrued liability portion of the employer contribution required for other active members of the FRS.

    (7) In addition to the above retirement contributions, contributions for the following shall be made for all active members, and reemployed retired members initially reemployed prior to July 1, 2010, and for all Deferred Retirement Option Program participants of state-administered retirement systems. Reemployed retirees initially reemployed in a regularly established position on or after July 1, 2010, shall only be subject to the additional contributions as provided in paragraph (a):

    (a) Retiree Health Insurance Subsidy:

    Dates of Rate ChangeMembersEmployers

    October 1, 1987 through December 31, 19880%0.24%

    January 1, 1989 through December 1, 19930%0.48%

    January 1, 1994, through December 1, 19940%0.56%

    January 1, 1995 through June 30, 19980%0.66%

    July 1, 1998 through June 30, 20010%0.94%

    Effective July 1, 20010%1.11%

    (b) For transfer to the State Board of Administration’s Administrative Expense Trust Fund to offset the costs of implementing the Public Employee Optional Retirement Program:

    July 1, 2000 through June 30, 20020%0.10%

    Effective July 1, 2002 through June 30, 20030%0.15%

    July 1, 2003 through June 30, 20040%0.10%

    July 1, 2004 through June 30, 20050%0.08%

    Effective July 1, 2005 through June 30, 20100%0.05%

    July 1, 2010 through June 30, 20140%0.03%

    Effective July 1, 20140%0.04%

    (8) Retirement contributions for all participants in the Deferred Retirement Option Program are as follows:

    July 1, 1998 through June 30, 20020%11.56%

    Effective July 1, 2002 through June 30, 20050%8.00%

    July 1, 2005 through June 30, 20060%8.22%

    July 1, 2006 through June 30, 20100%9.80%

    Effective July 1, 20100%11.14%

    Rulemaking Specific Authority 112.363(7), 121.031 FS. Law Implemented 112.363, 121.052, 121.055, 121.071, 121.091, 121.122, 121.30, 121.70, 121.71, 121.72 FS. History–New 1-1-72, Amended 10-20-72, 12-31-74, 7-1-79, 8-26-81, 10-12-82, 11-6-84, 9-24-85, Formerly 22B-3.03, Amended 1-12-87, 5-18-88, 2-7-89, 5-15-91, Formerly 22B-3.003, Amended 8-4-94, 3-12-96, 12-12-96, 2-24-99, 8-13-03,________.

     

    60S-3.004 Retirement Contributions for Past Service Credit.

    The cost of claiming past service credit varies with the kind of past service credit claimed. Each of the contribution formulas below corresponds to a Rule of 60S-2.003, F.A.C., which authorizes retirement credit for a particular kind of past service credit.

    (1) Past service claimed in accordance with subsection 60S-2.003(1), F.A.C., shall require a contribution as follows:

    (a) through (b) No change.

    (c) The payment of contributions for past service credit under this subsection shall be subject to the following additional requirements:

    1. A city, independent or special district, metropolitan planning organization, public charter school or public charter technical career center may elect to make the required contributions for past service for its members; however, it must provide past service for all members on an equal basis.

    2. A member may make the required contributions for any past service not provided by his or her employer.

    3. The cost of past service purchased by an employing agency for its employees may be amortized over such period of time as provided in the agreement and as calculated in accordance with paragraph 60S-1.007(5)(f), F.A.C., not to exceed 15 years.

    4. The retirement account of each member for whom past service is being provided by his or her employer shall be credited with all past service his or her employer agrees to purchase as soon as the agreement between the employer and the Division is executed. Each member’s account shall also be posted with the total contribution his or her employer agrees to make in his or her behalf for past service earned prior to October 1, 1975, except those contributions representing the employer’s matching share and the compound interest calculation on the total contribution. However, no portion of any contributions paid by an employer for past service credit earned on and after October 1, 1975, shall be posted to a member’s account. A refund of contributions payable after an employer has made a written agreement to purchase past service for employees of the covered group shall include contributions for past service which are posted to a member’s account. Contributions for past service earned on and after October 1, 1975, are not refundable.

    (d) The required contributions for additional Special Risk Class special risk past service credit purchased in accordance with paragraph 60S-2.003(1)(g), F.A.C., shall be equal to the difference in the contributions paid under (a) through (c) above and the contributions required at the Special Risk Class special risk contribution rate in effect at the time the member requests to purchase the service and the account is audited to determine the additional costs, plus interest compounded annually as provided in (b).

    (2) through (5) No change.

    (6) Past service claimed in accordance with subsection 60S-2.006(6), F.A.C., for service with the City of Jacksonville prior to July 1, 2004, that may be claimed for retirement credit by employees of the Fourth Judicial Circuit who were in an employee-employer relationship with the City of Jacksonville on June 30, 2004, and who became employees of the State Courts System on July 1, 2004, as a result of the implementation of Revision 7 to Article V of the State Constitution shall require contributions equal to the combined employee and employer contributions required for the class of membership under which the service was rendered during the period of such employment, plus interest from the fiscal year of the service claimed as provided in paragraphs 60S-3.004(1)(a) and (b)5., F.A.C. The contributions and interest due may be paid by either the member or the prior employer on behalf of the member.

    Rulemaking Specific Authority 121.031 FS. Law Implemented 121.081(1) FS. History–New 1-1-72, Amended 10-20-72, 12-31-74, 1-16-77, 1-19-82, 11-6-84, 4-17-85, Formerly 22B-3.04, Amended 2-7-89, 5-15-91, Formerly 22B-3.004, Amended________.

     

    60S-3.006 Retirement Contributions for Military Service Credit.

    (1) For Military Leave of Absence – The required contributions for active duty military leaves of absence in accordance with subsection 60S-2.005(1), F.A.C., shall equal:

    (Contribution rate × months claimed × compensation) + interest.

    Where:

    The “contribution rate” is the total employee and employer contribution rates in effect during the time of the military service for the class of membership to which the member belonged immediately prior to the leave of absence; the employer contributions shall be paid by the employer if the member was released from military service on or after December 3, 1974, or by the member if he or she was released from military service prior to December 3, 1974, and, if applicable, any employee contributions shall be paid by the employee.

    The “months claimed” is the total number of months of military service credit claimed;

    The “compensation” is the member’s monthly rate of compensation that would have been received if working during in effect immediately prior to the leave of absence; and

    The “interest” shall be as provided in Rule 60S-3.0035, F.A.C., beginning with the fiscal year of the military service claimed.

    (2) For Wartime Military Service – A member who wishes to claim retirement credit for wartime military service in accordance with subsection 60S-2.005(2), F.A.C., may make the required contributions for such service only after he or she has satisfied the service requirements for vesting. Such military service shall be creditable as Regular Class regular service only.

    (a) The required contributions for such wartime military service, except for persons who retired prior to July 1, 1985 as provided in paragraph 60S-3.006(2)(b), F.A.C., shall equal:

    Contribution rate × years claimed × compensation + interest.

    Where:

    The contribution rate shall equal 4%;

    The “years claimed” are the total number of years and portion of years claimed as provided in paragraph 60S-2.005(2)(j), F.A.C.;

    The “compensation” is the actual compensation received during the period commencing July 1, 1945 and ending on the date the member completes one full year of creditable service subsequent to July 1, 1945; and

    The interest shall be as provided in Rule 60S-3.0035, F.A.C., beginning with the first fiscal year in which the member earned creditable service subsequent to July 1, 1945.

    (b) No change.

    (3) No change.

    Rulemaking Specific Authority 121.031 FS. Law Implemented 121.021, 121.111 FS. History–New 1-1-72, Amended 12-31-74, 8-26-81, 2-6-84, 4-17-85, Formerly 22B-3.06, Amended 2-4-86, 2-7-89, 11-14-91, Formerly 22B-3.006, Amended 3-18-93, 8-13-03, ________.

     

    60S-3.007 Retirement Contributions for Leave of Absence Credit.

    The required contributions for any member who is eligible to claim creditable service for leaves of absence in accordance with Rule 60S-2.006, F.A.C., shall be determined as follows:

    (1) Retirement contributions for leaves of absence credit are 8 percent for leaves of absence prior to January 1, 1975, 9 percent for leaves of absence from January 1, 1975 until June 30, 1980, and for leaves of absence after July 1, 1980 all leaves must be purchased at the combined rate of employee and employer contributions required for the class of membership under which the leave was granted. However, service credit purchased prior to July 1, 1980 for leave of absence in a class of membership other than the Regular Class of regular membership class may be purchased by paying the appropriate additional contributions. The member shall receive creditable service for such leave in the membership class from which it was granted. The appropriate percentage is then multiplied by the number of months of the leave of absence multiplied by the rate of the member’s monthly compensation in effect immediately prior to the commencement of the leave of absence, plus interest from the fiscal year of the leave of absence as provided in Rule 60S-3.0035, F.A.C.

    (2) The required contributions to claim full retirement credit as allowed in subsection 60S-2.006(3), F.A.C., for a leave of absence during which the member received partial salary (which was paid from a salary fund and on which retirement contributions were paid) shall be determined as follows:

    Contributions shall be charged for any portion of the leave of absence on which retirement contributions have not already been paid. The rate of contributions shall be 8 percent for leaves of absence prior to January 1, 1975, 9 percent for leaves of absence from January 1, 1975 until June 30, 1980 and for leaves of absence after July 1, 1980 all leaves must be purchased at the combined rate of employee and employer contributions required for the class of membership under which the leave was granted. However, service credit purchased prior to July 1, 1980 for a leave of absence in a class of membership other than the Regular Class of regular membership class, may be purchased by paying the appropriate additional contributions. The member shall receive creditable service for such leave in the membership class from which it was granted. The appropriate percentage is then multiplied by the number of months of the leave of absence, multiplied by the rate of monthly compensation in effect immediately prior to the commencement of the leave of absence. The amount of contributions already paid shall be subtracted from the total amount due and interest on the remaining amount due shall be charged from the fiscal year of the leave of absence as provided in Rule 60S-3.0035, F.A.C.

    (3) No change.

    Rulemaking Specific Authority 121.031 FS. Law Implemented 121.121(4) FS. History–New 1-1-72, Amended 10-20-72, 12-31-74, 7-1-79, 8-26-81, Formerly 22B-3.07, Amended 2-7-89, Formerly 22B-3.007, Amended_________.

     

    60S-3.010 Contributions for Social Security.

    (1) Social Security contributions shall be required of each member of the Florida Retirement System and each reemployed retired member who renews membership as provided in Rules 60S-1.0045 and subsection 1.0055(4), F.A.C., as well as for any reemployed retiree who is initally reemployed in a regularly established position on or after July 1, 2010. Contributions shall be withheld from the member’s salary each pay period in the amount required for Social Security coverage as provided by the Federal Social Security Act.

    (2) Each employer shall contribute an amount equal to the total of his or her employees’ contributions for Social Security each pay period.

    (3) No change.

    Rulemaking Specific Authority 121.031 FS. Law Implemented 121.071 FS. History–New 1-1-72, Repromulgated 12-31-74, Amended 10-12-82, 9-24-85, Formerly 22B-3.10, Amended 5-15-91, Formerly 22B-3.010, Amended 3-18-93,_________.

     

    60S-3.011 Payment of Contributions.

    (1) All retirement contributions for current services rendered by covered employees of all state-administered retirement plans shall be paid to the Division of Retirement. The required contribution rate shall be the rate in effect at the time the member is paid, as determined by his or her class of membership. Retirement contributions and accompanying payroll data for each payroll period are due and payable each month no later than the 5th working day of the month following the month in which covered wages are paid.

    (2) through (4) No change.

    (5) If the agency fails to pay the total amount due within 120 calendar days from the date of the Division’s invoice, the following action shall be taken:

    (a) In the case of a state agency, the Administrator shall notify the Governor and certify the amounts due to the Director of Planning and Budgeting, Office of the Governor. If arrangements cannot be made to pay the amount due, then the amount shall be appropriated from the General Revenue Fund of the state as prescribed in Section 121.061, F.S.

    (b) In the case of a county, city, independent or special district, metropolitan planning organization, public charter school or public charter technical career center the Administrator shall request the Department of Banking and Finance or the Department of Revenue to withhold the amount owed to the Florida Retirement System Trust Fund or the Social Security Contribution Trust Fund from any State funds allocated to the county, city, independent or special district, metropolitan planning organization, public charter school or public charter technical career center. If existing funds do not equal the amount owed to the trust funds, the Administrator shall certify to the local tax collector the amount owed, and the tax collector shall deduct the amount so certified from any taxes collected for the employer and pay the amount to the proper trust fund.

    (6) through (9) No change.

    Rulemaking Specific Authority 121.031 FS. Law Implemented 121.052(7), 121.055(3), 121.061, 121.071(3), (5), 121.091(7), (9), 121.113, 121.71, 121.72, 121.73, 121.74, 121.75, 121.76 FS. History– New 1-1-72, Amended 10-20-72, Repromulgated 12-31-74, Amended 7-1-79, 1-19-82, 10-12-82, 11-6-84, 9-24-85, Formerly 22B-3.11, Amended 5-15-91, Formerly 22B-3.011, Amended 12-30-99, 8-13-03,________.

     

    60S-3.013 Retirement Contributions for Upgraded Previous Service Credit.

    (1) through (3) No change.

    (4) The required contributions for a member of the Special Risk Class to claim retirement credit in such class for previous service in fire prevention or firefighter training within the purview of the Class as specified in subsection 60S-2.013(6)(1), F.A.C., shall be equal to the difference between the total employee and employer contribution rate actually paid and the total contribution rate required at the time the service was rendered based on the gross salary received, plus interest as provided in Rule 60S-3.0035, F.A.C., from the first fiscal year of the service being claimed. The required contributions may be paid by the member’s employer on behalf of the member.

    (5) The required contributions for a member of the Special Risk Class to claim retirement credit in such class for previous service as an emergency medical technician or paramedic within the purview of the Class as specified in subsection 60S-2.013(7), F.A.C., shall be equal to the difference between the total employee and employer contribution rate actually paid and the total contribution rate required at the time the service was rendered based on the gross salary received, plus interest as provided in Rule 60S-3.0035, F.A.C., from the first fiscal year of the service being claimed. The required contributions may be paid by the member’s employer on behalf of the member.

    (6) The required contributions for a member of the Special Risk Class to claim retirement credit in such class for previous service in a forensic discipline within the purview of the Class as specified in subsection 60S-2.013(8), F.A.C., shall be an amount representing the actuarial accrued liablity for the difference in the accrual value during the affected period of service as provided in Section 121.052(9)(c), F.S. Local government employers may purchase the upgraded service on behalf of the member if that member has been employed by that employer for at least three years.

    Rulemaking Specific Authority 121.031, 121.052(7) FS. Law Implemented 121.0515, 121.052, 121.055 FS. History–New 10-20-72, Repromulgated 12-31-74, Amended 1-16-77, 11-6-84, Formerly 22B-3.13, Amended 2-4-86, 3-11-87, 9-5-90, 11-14-91, Formerly 22B-3.013, Amended 8-4-94, 4-5-95, 8-13-03,________.

     

    60S-3.015 Retirement Contributions for Retroactive Special Risk Class Service.

    The required contributions for claiming Special Risk Class special risk service retroactively by a member removed from the Special Risk Class effective October, 1978 as provided in subsection 60S-1.005(6), F.A.C., shall be equal to the difference in the contributions that were paid during the period and the contributions required for Special Risk Class special risk members during this period, plus 6.5% interest thereon compounded each June 30 from date of service until date of payment.

    Rulemaking Specific Authority 121.031 FS. Law Implemented 121.0515 FS. History–New 11-6-84, Formerly 22B-3.15, 22B-3.015, Amended_________.

     

    NAME OF PERSON ORIGINATING PROPOSED RULE: Sarabeth Snuggs, Director, Division of Retirement

    NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: John P. Miles, Secretary, Department of Management Services

    DATE PROPOSED RULE APPROVED BY AGENCY HEAD: July 20, 2011

    DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: June 18, 2010, Vol. 36/24

Document Information

Comments Open:
10/21/2011
Summary:
The amendments to this rule reflect the statutory revisions that: limit the renewal of membership in the Florida Retirement System (FRS); change contribution rates; allow metropolitan planning organizations, public charter schools and public charter technical career centers to participate in the FRS; and regulate the purchase of past service credit with the City of Jacksonville by certain employees of the Fourth Judicial Circuit. Other amendments to this rule: update compensation methodology ...
Purpose:
The purpose and effect are to amend Division of Retirement rules to correspond with statutory changes up through the 2010 Legislative session and delete obsolete language.
Rulemaking Authority:
112.363(7), 121.031, 121.052(7) FS.
Law:
112.215(13), 112.363, 121.021, 121.031, 121.0515, 121.052, 121.055, 121.061, 121.071, 121.081, 121.091, 121.111, 121.113, 121.121(4), 121.122, 121.30, 121.70, 121.71, 121.72, 121.73, 121.74, 121.75, 121.76 FS.
Contact:
Garry Green, Operations and Management Consultant Manager, Department of Management Services, Division of Retirement, 1317 Winewood Blvd., Bldg. 8, Tallahassee FL 32399-1560, (850)488-5706
Related Rules: (9)
60S-3.002. Statements of Policy
60S-3.003. Retirement Contributions for Regular, Special Risk, Elected Officer, Special Risk Administrative Support and Senior Management Service Classes of the Pension and Investment Plans of the Florida Retirement System; Contributions for the Retiree Health Insurance Subsidy; and Contributions for the Deferred Retirement Option Program
60S-3.004. Retirement Contributions for Past Service Credit
60S-3.006. Retirement Contributions for Military Service Credit
60S-3.007. Retirement Contributions for Leave of Absence Credit
More ...