Beneficiary Designations and Distributions for FRS Investment Plan, Distributions from FRS Investment Plan Accounts
RULE NOS.:RULE TITLES:
19-11.002Beneficiary Designations and Distributions for FRS Investment Plan
19-11.003Distributions from FRS Investment Plan Accounts
NOTICE OF CHANGE
Notice is hereby given that the following changes have been made to the proposed rule in accordance with subparagraph 120.54(3)(d)1., F.S., published in Vol. 48 No. 14, January 21, 2022 issue of the Florida Administrative Register.
19-11.002 Beneficiary Designations and Distributions for FRS Investment Plan.
(1) through (3) No change.
(4)(a) through (f) No change.
(g) If the member submits a beneficiary form that is incomplete, it will not be processed. An incomplete form is a form which is missing the name of the member, the last four numbers of the member’s social security number, or the member’s signature, or a form indicating that the shares assigned to joint primary or contingent beneficiaries are greater than, or less than, 100%. The form will is incomplete if the member selected married for the marital status, but did not include the spouse’s name, last four numbers of the social security number, address and/or the Investment Plan Administrator does not already have the information listed. The Plan Administrator will notify the member and request that the member complete and submit a corrected form.
(h) No change.
(5) through (12) No change.
(13) Distributions to Eligible Designated Beneficiaries.
(a) Surviving spouse as sole beneficiary.
1. through 2. No change.
3. Any required minimum distributions that are required to be taken for the year in which a spousal rollover occurs must be made prior to the actual rollover occurring, since required minimum distributions cannot be taken from the new account. Before the spousal rollover may be made, any required minimum distributions due as of the year of rollover first must be made, as required minimum distributions can never be rolled over. If it is the year of the deceased member’s death, and deceased member had not received his or her required minimum distribution before death, that distribution must be made before the rollover. If it is any year after the year of death, the required minimum distribution due to the beneficiary must be made before a rollover can occur.
4.3. If an election is made to maintain the account in the deceased member’s name and to take required minimum distributions under the life expectancy payout option, the surviving spouse must begin receiving distributions by the later of: December 31 of the year after the member’s death; or December 31 of the year the deceased member would have reached age 72 (age 70 ½ for members whose 70th birthday occurred prior to July 1, 2019).
5.4. If an election is made to maintain the account in the deceased member’s name but the surviving spouse fails to make an election to take a life expectancy payout option by the later of December 31 of the year after the member’s death; or December 31 of the year the deceased member would have reached age 72, then the surviving spouse will be required to receive a lump-sum distribution by December 31 of the year after the year of death or to take distributions under one of the following rules:
a. If the member dies before his or her required beginning date, then distributions must be made within 10 years.
b. If the member dies on or after his or her required beginning date, then the remaining life expectancy of the member is used as the required payout period.
(b) through (e) No change.
(14) through (19) No change.
19-11.003 Distributions from FRS Investment Plan Accounts.
(1) No change.
(2) Distributions are available after the member terminates all employment with all FRS-participating employers.
(a) An Investment Plan member shall not be entitled to an account distribution until the member has terminated and no longer providing services, in paid or unpaid arrangements, with all FRS-participating employers for three (3) full calendar months following the month of termination, except as provided in paragraph (d), below. This includes but not limited to, employment in any regularly established position, full-time or part-time employment, temporary employment, employment through third-parties providing services to an FRS employer, Other Personal Services (OPS), election poll pole employment, or substitute or adjunct teaching. Example: If a member terminates on May 15, the three full calendar months are June, July, and August. Therefore, the member cannot request a distribution until September.
(b) though (e) No change.
(3) through (11) No change.
