To adopt updated forms; to clarify/correct certain information; to add a definition for “volunteer services.” There are no other rules incorporating these proposed amended rules. The proposed amendments do not have an impact ....

 

STATE BOARD OF ADMINISTRATION

RULE NOS.:RULE TITLES:

19-11.001Definitions

19-11.002Beneficiary Designations and Distributions for FRS Investment Plan

19-11.003Distributions from FRS Investment Plan Accounts

19-11.004Excessive Trading in the FRS Investment Plan

19-11.006Enrollment Procedures for New Hires

19-11.007Second Election Enrollment Procedures for the Florida Retirement System Retirement Programs

19-11.008Forfeitures

19-11.009Reemployment with an FRS-Participating Employer after Retirement

19-11.012Rollovers or Plan to Plan Transfers to or from the FRS Investment Plan

19-11.014Benefits Payable for Investment Plan Disability and In-Line-Of-Duty Death Benefits

PURPOSE AND EFFECT: To adopt updated forms; to clarify/correct certain information; to add a definition for “volunteer services.” There are no other rules incorporating these proposed amended rules. The proposed amendments do not have an impact on any other rules. Legislative ratification of the rule amendments is not required.

SUBJECT AREA TO BE ADDRESSED: Rule 19-11.001 is being amended to update the definition of an exempt transaction to include rollovers of eligible funds; to update the age by which plan members must take Required Minimum Distributions once they terminate employment; to add a definition for “volunteer services;” and to make some editorial revisions. Rule 19-11.002 is being amended to adopt the latest version of the FRS Investment Plan Beneficiary Designation Form; to set forth the most recent versions of the General Retirement Plan Enrollment Form and the 2nd Election Enrollment Form; and to provide that if a member’s spouse either cannot be located or refuses to sign the acknowledgement of beneficiary designation form, then the member may request that the requirement of the acknowledgement be waived by providing an affidavit setting forth the particular facts and circumstances. Rule 19-11.003 is being amended to update instructions as to how a copy of Internal Revenue Code Section 401(a)(9) may be obtained from the Internal Revenue Service website; to update the age by which plan members must take Required Minimum Distributions once they terminate employment; and to update examples showing how certain distributions to members could be invalid. Rule 19-11.004 is being amended to update how to obtain copies of the SEC regulations on excessive trading; and to update the examples for market timing trades and roundtrip trades. Rule 19-11.006 is being amended to adopt the latest versions of the various enrollment forms. Rule 19-11.007 is being amended to adopt the latest versions of the 2nd election enrollment forms. Rule 19-11.008 is being amended to state that if a member, who transferred from the Pension Plan to the Investment Plan before vesting in the Pension Plan benefit leaves FRS employment, the member will be entitled to employee contributions plus any vested Investment Plan benefit. However, if the member takes a distribution of any Investment Plan funds, the member will immediately be considered “retired” and will forfeit any unvested Pension Plan funds, as well as any earnings on such funds and any service credit related thereto. Rule 19-11.009 is being amended to provide that a member who participates in an FRS-participating employer’s volunteer programs within the first 12-month period following termination still will be eligible to receive retirement benefits; and to adopt the latest version of the Certification Form that is used to prevent the hiring of ineligible retirees. Rule 19-11.012 is being amended to adopt the latest versions of the Employee Rollover Deposit Instructions and Form, and the DROP member rollover forms. Rule 19-11.014 is being amended to update a statutory cite.

RULEMAKING AUTHORITY: 121.4501(8), FS.

LAW IMPLEMENTED: 112.3173, 119.07(4)(d), 121.021(29), (39), 121.051, 121.055, 121.73, 121.78, 121.091(5)(j), (8), 121.35, 121.4501(1), (2), (3), (4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (15), 121.591(3), 121.77, 121.78. 732.802 FS.

IF REQUESTED IN WRITING AND NOT DEEMED UNNECESSARY BY THE AGENCY HEAD, A RULE DEVELOPMENT WORKSHOP WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:

DATE AND TIME: Friday, December 1, 2023, 9:00 a.m. – 11:00 a.m.

PLACE: Room 116 (Hermitage Center Conference Room), 1801 Hermitage Blvd., Tallahassee, FL 32308.

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Nell Bowers, Agency Clerk, Office of the General Counsel, State Board of Administration, 1801 Hermitage Blvd., Tallahassee, FL 32303; [phone]; [e-mail]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1[phone] (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE DEVELOPMENT AND A COPY OF THE PRELIMINARY DRAFT, IF AVAILABLE, IS: Ruth A. Smith, Assistant General Counsel, Office of the General Counsel, State Board of Administration, 1801 Hermitage Blvd., Tallahassee, FL 32303; [phone]; [e-mail].

THE PRELIMINARY TEXT OF THE PROPOSED RULE DEVELOPMENT IS AVAILABLE AT NO CHARGE FROM THE CONTACT PERSON LISTED ABOVE.