Amend rule language to change the interest rate on employee contributions for working and non-working TRS members.

 

DEPARTMENT OF MANAGEMENT SERVICES

Division of Retirement

RULE NO.:RULE TITLE:

60S-4.009Benefits Payable After Termination

PURPOSE AND EFFECT: Amend rule language to change the interest rate on employee contributions for working and non-working TRS members.

SUMMARY: Add language regarding the interest rate for employee contributions for TRS members.

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, 121.052(14), 238.01 FS.

LAW IMPLEMENTED: 121.021, 121.052(5)(c), 121.055, 121.091, 238.01, 238.05, 238.07, 238.10 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, Bureau Chief, Department of Management Services, Division of Retirement, 2450 Shumard Oak Blvd., Bldg. 2, Tallahassee, FL, [phone].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

60S-4.009 Benefits Payable After Termination.

(1) through (5) No change.

(6) In order to receive a refund of contributions under the Teachers’ Retirement System, a Teachers’ Retirement System member must terminate all employment relationships with all participating employers for three calendar months as provided in Section 121.021(39)(c), F.S., and submit a request for refund on Form FRS-M81, Florida Retirement System Pension Plan Request for Refund of Employee Contributions. Form FRS-M81 may be obtained and completed as referenced in (3). Upon receipt of the FRS-M81, the division will send the member Form REF-PAYT. The member shall complete and return Form REF-PAYT to the division, indicating his or her refund payout selection. By obtaining a refund of contributions, a member waives all rights under the Teachers’ Retirement System to the service credit represented by the refunded contributions, except the right to purchase his or her prior service credit in accordance with Rule 60S-2.004, F.A.C. No refund of employee contributions shall be made until the employer has reported the employee’s termination through the payroll reporting process.

(a) Beginning July 1, 2018, the retirement account balance for Teachers' Retirement System members actively employed and participating in the Teachers' Retirement System will earn 1.3% regular interest compounded annually on each June 30 after June 30, 2018.

(b) Beginning July 1, 2018, Teachers’ Retirement System members not actively employed and participating in the Teachers’ Retirement System will not earn regular interest on their retirement account balance.

Rulemaking Authority 121.031, 121.052(14), 238.01 FS. Law Implemented 121.021, 121.052(5)(c), 121.055, 121.091, 238.01, 238.05, 238.07, 238.10 FS. History–New 1-1-72, Amended 10-10-72, 12-31-74, 1-16-77, 8-26-81, Formerly 22B-4.09, Amended 1-12-87, 2-7-89, 11-14-91, Formerly 22B-4.009, Amended 8-4-94, 2-24-99, 4-5-12, 3-25-13, 12-15-13, 5-12-16, 11-6-16,                 .

 

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: May 4, 2018

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: February 22, 2018