Rule 19-11.001 is being amended to add definitions for “default”/“default election” and “electronic signature.” Also, “member” is being revised to include a terminated DROP member who has effectuated a rollover. Rule 19-11.002 ....

 

STATE BOARD OF ADMINISTRATION

RULE NOS.:RULE TITLES:

19-11.001Definitions

19-11.002Beneficiary Designations and Distributions for 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

19-11.011Employer and Employee Contributions and ABO or Present Value Transfer Procedures

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

PURPOSE AND EFFECT: Rule 19-11.001 is being amended to add definitions for “default”/“default election” and “electronic signature.” Also, “member” is being revised to include a terminated DROP member who has effectuated a rollover. Rule 19-11.002 is being amended to set forth the most recent versions of the General Retirement Plan Enrollment Form and the 2nd Election Enrollment Form. Rule 19-11.006 is being amended to update procedures for various classes to enroll in the Florida Retirement System (“FRS”). The latest versions of the various enrollment forms also are being adopted. Finally, the rule is being amended to state that if a member’s enrollment is incomplete, the election will not be processed, and the member will need to submit a new election.

Rule 19-11.007 is being amended to emphasize that members that are on unpaid leave cannot use their election until they return to FRS-covered employment and are earning salary and service credit. The rule also 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 had separated from service at a time in which he or she had an unvested account balance, returns to FRS-covered employment within 5 years of date of termination, that member will receive the unvested funds together with any earnings or losses those funds experienced while being in the FRS Core Plus Bond Fund. The rule also notes that if a member leaves FRS employment after vesting in the Investment Plan but before vesting in any transferred Pension Plan benefit, the member will only be able to receive his or her 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 adopt the latest version of the Certification Form that is used to prevent the hiring of ineligible retirees. Rule 19-11.011 is being amended to makes some editorial revisions and to indicate that newly hired employees with prior FRS service who either elect or default into the FRS Investment Plan will have their Pension Plan accumulated benefit obligation (“ABO”) calculated and transferred to their Investment Plan account. Rule 19-11.012 is being amended to adopt the latest version of the Employee Rollover Deposit Instructions and Form, and to make some editorial revisions to emphasize that a member who has rolled over monies into the Investment Plan cannot receive a distribution of such funds until the member has terminated employment for three full months following termination of all FRS employment.

SUMMARY: To adopt updated forms; to clarify/correct certain information; to add definitions for “default”/“default election” and “electronic signature.” 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.

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: Based on its analysis of the rule amendments and incorporated materials, as well as the fact that it is not a regulatory agency, the State Board of Administration has determined that the rules do not meet the statutory threshold for ratification by the legislature. There will be no impact on economic growth, job creation or employment, private-sector investment, or business competitiveness, and no increase in regulatory costs resulting from the proposed rule amendments

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: 121.78, 121.4501(8), FS.

LAW IMPLEMENTED: 112.3173, 121.021(29), (39), 121.051, 121.055, 121.091(5), (8), (9), 121.35, 121.4501(2), (3), (4), (5), (6), (8), (13), (15), (20), (21), 121.591(1), (3), 121.71, 121.72, 121.73, 121.74, 121.78, 732.802, 1012.875(3) 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 (IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):

DATE AND TIME: Monday, June 26, 2023, 9:00 a.m. – 11:00 a.m.

PLACE: Hermitage Room, Hermitage Centre, 1801 Hermitage Boulevard, Tallahassee, Florida 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: Tina Joanos, State Board of Administration, 1801 Hermitage Boulevard, Tallahassee, Florida 32308; [phone], [e-mail]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Ruth A. Smith, Assistant General Counsel, Office of the General Counsel, State Board of Administration, 1801 Hermitage Blvd., Tallahassee, FL 32308, [phone], [e-mail].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

19-11.001 Definitions.

The following words and terms shall have the following meanings for purposes of chapters 19-11 and 19-13, F.A.C.:

(1) through (10)  No change.

(11) “Default” or “default election” arises when a newly-hired employee fails to enroll in the Pension Plan or Investment Plan by 4:00 p.m. (Eastern Time) the last business day of the 8th month following the employee’s month of hire. Such employee is deemed to have defaulted into the Investment Plan as his or her initial plan choice or first election.  If the newly-hired employee is employed in a position included in the Special Risk Class, and fails to enroll in the Pension Plan or Investment Plan by 4:00 p.m. (Eastern Time) of the last business day of the 8th month following the employee’s month of hire, the employee is deemed to have defaulted into the Pension Plan as his or her initial plan choice or first election.

(11) through (18) are renumbered (12) through (19).  No change.

(20) “Electronic Signature” is any symbol or other data in digital form attached to an electronically transmitted document, and includes a systematic digital authentication, such as a date or time stamp, as verification of the sender’s intent to sign the document. By submitting an electronic signature, a member acknowledges that the electronic signature equivalent to a handwritten signature for the purposes of validity, enforceability, and admissibility.

(19) through (26) are renumbered to (21) through (28). No change.

(29)(27) “FRS Investment Plan,” “Florida Retirement System Investment Plan,” or “Investment Plan” means the defined contribution retirement program of the Florida Retirement System, established in Parts II and III of Chapter 121, F.S. Although the Investment Plan is established in Ppart II (Florida Retirement System Investment Plan Public Employees Optional Retirement Program) and Part III (Florida Retirement System Contribution Rates), certain provisions of Part I (Florida Retirement System General Provisions) of Chapter 121, F.S., also apply to the Investment Plan whenever the provisions of Parts II and III fail to address a specific area or topic covered by the provisions of Part I. The Investment Plan refers to both the FRS Investment Plan and the FRS Investment Plan Hybrid Option, also known as the Hybrid Option.

(28) through (38) are renumbered to (30) through (40). No change.

(41)(39) “Member,” “FRS Investment Plan Member,” or “Investment Plan Member” means an employee who elected to participate, defaulted, or is considered a renewed member pursuant to Section 121.122, F.S., and has an account established, in the Investment Plan as a result of current or previous employment with an FRS-participating FRS-covered employer; a person who has been designated as an alternate payee due to a qualified domestic relations order (“QDRO”); a terminated Deferred Retirement Option Program (DROP) member who has elected to roll over proceeds from their DROP account, or a designated beneficiary when a member is deceased.

(40) through (52) are renumbered to (42) through (54).  No change.

Rulemaking Authority 121.78(3)(c), 121.4501(8) FS. Law Implemented 121.78, 121.4501 FS. History–New 12-8-02, Amended 3-9-06, 7-12-12, 12-16-12, 6-5-14, 8-18-14, 12-30-15, 4-12-17, 2-12-18, 2-19-19, 5-11-22,________.

 

19-11.002 Beneficiary Designations and Distributions for FRS Investment Plan.

(1) through (3). No change.

(4)(a) If the member enrolls in the Investment Plan using the EZ Retirement Plan Enrollment Form for Regular, Special Risk and Special Risk Administrative Support Class Employees, Form ELE-1-EZ, rev. 07-21, the General Retirement Plan Enrollment Form for Regular Special Risk and Special Risk Administrative Support Class Employees, Form ELE-1, rev. 07-22 07-21, which are adopted and incorporated by reference in subsection 19-11.006(2), F.A.C., or the 2nd Election EZ Retirement Plan Enrollment Form, Form ELE-2-EZ, rev. 07-21, or the 2nd Election Retirement Plan Enrollment Form, Form ELE-2, rev. 07-22 07-21, which are adopted and incorporated by reference in subsection 19-11.007(4), F.A.C., the member agrees to the beneficiary designation contained in Section 121.4501(20), F.S., unless the member submits a beneficiary designation as provided in subsection (2), herein.

(b) through (h).  No change.

(5) through (19). No change.

Rulemaking Authority 121.4501(8) FS. Law Implemented 121.091(5)(j), (8), 121.4501(20), 121.591(3), 732.802 FS. History–New 10-21-04, Amended 3-9-06, 11-26-07, 12-8-08, 1-7-10, 8-7-11, 7-12-12, 12-16-12, 10-15-13, 1-28-14, 12-30-15, 2-9-17, 2-12-18, 4-8-20, 5-11-22,___________.

 

19-11.006 Enrollment Procedures for New Hires.

(1) General Enrollment Procedures.

(a). No change.

(b) Eligible newly-hired employees enrolled in the FRS Regular, Special Risk, and Special Risk Administrative Support classes may choose to enroll in the Investment Plan by submitting an enrollment form or by electronic means.

(c). No change.

(d) Eligible newly-hired employees enrolled in the Elected Officers’ Class (EOC) or Senior Management Service Class (SMSC) may enroll in the Investment Plan by submitting an enrollment form.

(d)(e) Newly-hired Eligible newly-hired employees eligible to enroll in the State Community College System Optional Retirement Program (SCCSORP) may only enroll in the Investment Plan by submitting an enrollment form or by electronic means.

(e)(f) Enrollment forms for eligible newly-hired employees enrolled in the FRS Regular, Special Risk and Special Risk Administrative Support classes are available by accessing MyFRS.com, and clicking on Forms; or by calling toll-free 1(866)446-9377, Option 2, or for the hearing impaired TRS 711. Enrollment forms for newly hired employees in the EOC, SMSC and newly-hired employees eligible to enroll in the SCCSORP are available by accessing MyFRS.com, and then clicking on Forms; or by calling toll-free 1(866)446-9377, Option 2, or, for the hearing impaired, TRS 711.

(2) Specific Enrollment Procedures.

(a) All newly-hired employees enrolled in the FRS that are not filling a Special Risk Class position may make a plan choice and elect to Regular, Special Risk Administrative Support, EOC or SMSC classes may enroll in the Investment Plan or Pension Plan no later than 4:00 p.m. (Eastern Time) the last business day of the 8th month following the employee’s month of hire or may elect to remain in the Pension Plan. Example: If an employee is hired on January 15, the employee must complete a plan choice no later than 4:00 p.m. (Eastern Time) the last business day of September. If no plan choice is filed by 4:00 p.m. (Eastern Time) on the last business day of the month following 8th employee’s month of hire September, the employee will default to the Investment Plan and will be considered the employee’s initial plan choice or first election. Example: If an employee is hired on January 15, the employee must complete a plan choice no later than 4:00 p.m. (Eastern Time) the last business day of September. If no plan choice is filed by 4:00 p.m. (Eastern Time) on the last business day of September, the employee will default to the Investment Plan.The amount of the employee and employer contributions paid through the date of default to the Investment Plan will be transferred to the Investment Plan and placed in an age appropriate retirement date fund. The investment option may be changed by the employee once the account is funded.

1. The amount of the employee and employer contributions paid through the date of default to the Investment Plan will be transferred to the Investment Plan and placed in an age appropriate retirement date fund. The investment option may be changed by the employee once the account is funded.

2. Any accrued value under the Pension Plan will be transferred to the employee’s Investment Plan account as an opening account balance and are subject to the vesting requirements of the Pension Plan.

(b) All newly-hired employees enrolled in the FRS that are filling a Special Risk class position may make a plan choice and elect to may enroll in the Investment Plan or Pension Plan no later than 4:00 p.m. (Eastern Time) the last business day of the 8th month following the employee’s month of hire or may elect to remain in the Pension Plan. Example: If an employee is hired on January 15, the employee must complete a plan choice no later than 4:00 p.m. (Eastern Time) the last business day of September. If no plan choice is filed by 4:00 p.m. (Eastern Time) on the last business day of the 8th month following the employee’s month of hire, the employee will default to the Pension Plan and will be considered the employee’s initial plan choice or first election. Example: If an employee is hired on January 15, the employee must complete a plan choice no later than 4:00 p.m. (Eastern Time) the last business day of September. If no plan choice is filed by 4:00 p.m. (Eastern Time) on the last business day of September, the employee will default to the Pension Plan.

(c) through (d). No change.

(e) The State Board of Administration (SBA) has designed the forms set forth below for ease of use for employees in the several membership classes of the FRS. As an alternative, an employee not wishing to use the forms may provide the same information requested by the forms available for use for the appropriate membership class in a separate document. Employees may determine their membership class by contacting the agency’s human resources office. The forms available are: an EZ Retirement Plan Enrollment Form, Form ELE-1-EZ, rev. 07-21, http://www.flrules.org/Gateway/reference.asp?No=Ref-14014, which is only for regular, special risk, and special risk administrative support class employees; a General Retirement Plan Enrollment Form, Form ELE-1, rev. 07-22 07-21, http://www.flrules.org/Gateway/reference.asp?No=Ref-15457 http://www.flrules.org/Gateway/reference.asp?No=Ref-14013 for regular, special risk, and special risk administrative support class employees; an Elected Officers’ Class Retirement Plan Form, Form EOC-1, rev. 07-22 07-21, http://www.flrules.org/Gateway/reference.asp?No=Ref-15458 http://www.flrules.org/Gateway/reference.asp?No=Ref-14015; a State Community College System Optional Retirement Program (SCCSORP) Enrollment Form, Form OCC-1, rev. 07-22 07-21,         http://www.flrules.org/Gateway/reference.asp?No=Ref-15459  http://www.flrules.org/Gateway/reference.asp?No=Ref-14016; and a Local Senior Management Service Employees Retirement Plan Enrollment Form, Form SMS-3, rev. 07-22 07-21, http://www.flrules.org/Gateway/reference.asp?No=Ref-15460 http://www.flrules.org/Gateway/reference.asp?No=Ref-14017. All of the preceding forms are hereby adopted and incorporated by reference.

1. through 2. No change.

(f)1. No change.

2. The Plan Choice Administrator shall determine that the employee’s enrollment in the Investment Plan is complete and the employee’s election is clearly indicated. If the Plan Choice Administrator determines that the enrollment is incomplete, the election will not be processed, and the employee will be required to resubmit a completed enrollment. An incomplete enrollment is an enrollment which is missing the name of the member, sets forth a spelling of the member’s name or reflects a date of birth that does not match the information present in the Plan Choice Administrator’s database, or is missing the last four digits of the member’s social security number, plan selection, signature, or one on which the investment elections total greater than or less than 100%. If the form is incomplete only because the member has made no investment selection, the form will be processed and the member will be defaulted into an age appropriate retirement date fund as provided under the Plan provisions for investing any accumulated benefit obligation and all future contributions. The default selection may be changed by the member at any time once the account is activated. An incomplete enrollment by electronic means is one in which the Plan Choice Administrator has no record of receipt and/or processing of the electronic enrollment.

3. No change.

(g) Upon receipt of the completed enrollment form by the Plan Choice Administrator, the Plan Choice Administrator shall enroll the employee in the indicated FRS retirement plan. Upon completion of the enrollment, but no later than two working days after enrollment, the Plan Choice Administrator shall send confirmation of the effective enrollment to the employee at the employee’s address of record or electronically if the member has consented to electronic delivery of documents through the MyFRS.com website. The Administrator will also inform the Division of Retirement (Division) of the employee’s retirement plan choice. The employer is responsible for updating shall change its employee records to reflect the employee’s plan choice, if applicable.

(h). No change.

(i) Employers are responsible for monthly shall remit retirement contributions monthly for their employees and those contributions are due to the Division by the 5th working day of the month following the month for which the contributions are made.

(j). No change.

(3) Grace Period

(a) through (b). No change.

(c) Upon receipt of the release, the Division and the Plan Choice Administrator will be directed to do the following:

1. The Division will revise its database to reflect the member’s plan change. The member will have until his or her plan choice choice period deadline date to make a new election. If the member’s choice period has ended, the member will have one calendar month to make a new election. Failure to make a new election will result in the member’s defaulting into the Investment Plan or Pension Plan as provided in paragraphs (2)(a) and (b) above.

2. No change.

(d). No change.

Rulemaking Authority 121.4501(3)(c)4., (8)(a) FS. Law Implemented 121.051, 121.055, 121.35, 121.4501(2), (3), (4), (5), (6), (8), (15), 121.73, 121.74, 121.78, 1012.875(3) FS. History–New 10-21-04, Amended 3-9-06, 10-25-07, 12-8-08, 5-19-09, 2-4-10, 7-12-12, 12-16-12, 1-28-14, 8-18-14, 12-30-15, 4-12-17, 2-12-18, 2-19-19, 4-8-20, 5-11-22,___________.

 

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

(1). No change.

(2) A member may make a valid election only if the election is made and processed by the Plan Choice Administrator during the month in which the member is actively employed and earning salary and service credit in an employer-employee relationship consistent with the requirements of Section 121.021(17)(b), F.S. Members on an unpaid leave of absence or terminated members cannot use their election until they return to FRS-covered employment and are earning salary and service credit. Employees of an educational institution on summer break cannot use their election during the full calendar months of their summer break. For example, if the last day of the school term is May 21st and the first day of the new school term is August 17th, the employee may not file a 2nd election in the calendar months of June or July. The beginning of the school term is determined by the employer. In general terms, this means that the election can only be made and processed during the month in which the member is actively working and being paid for that work. An election received after a member’s date of death will be considered invalid, even if the member signed the election form prior to their date of death. It is the responsibility of the member to assure that the election is received by the Plan Choice Administrator no later than 4:00 p.m. (Eastern Time) on the last business day of the month the member is actively employed and earning salary and service credit.

(a). No change.

(3). No change.

(4) General Procedures.

(a) All members who wish to change their FRS retirement plan using their 2nd election, or a SCCSORP member who wants to switch to the FRS, must submit an election to the Plan Choice Administrator.

1. A 2nd election can be made by accessing the online Second Election Choice Service or online by completing the “2nd Election Retirement Plan Enrollment Form.” There are two types of enrollment forms. The “2nd Election Retirement Plan Enrollment Form,” Form ELE-2, rev. 07-22 07-21, http://www.flrules.org/Gateway/reference.asp?No=Ref-15461 http://www.flrules.org/Gateway/reference.asp?No=Ref-14018, which is hereby adopted and incorporated by reference. This form allows the member to select different investment fund options if the member is changing from the Pension Plan to either the Investment Plan or the Investment Plan Hybrid Option. Alternatively, the member can complete the “2nd Election EZ Retirement Plan Enrollment Form,” Form ELE-2EZ, rev. 07-21 04-21, http://www.flrules.org/Gateway/reference.asp?No=Ref-14019, which is hereby adopted and incorporated by reference. By completing this form, the member is choosing to have the employer and employee contributions and any transfers from the Pension Plan invested in an age appropriate retirement date fund as provided under the Plan provisions. The member may change the investment selection at any time after the Investment Plan or the Investment Plan Hybrid Option account is activated. Activation occurs when contributions are deposited to the member’s Investment Plan account.

2. Members who want to exercise their one-time opportunity to transfer from SCCSORP to the FRS Pension Plan or participate prospectively in the FRS Investment Plan must complete the State Community College Optional Retirement Program (SCCSORP) Retirement Plan Conversion form, Form OCC-2, rev. 07-22 07/2021, http://www.flrules.org/Gateway/reference.asp?No=Ref-15462 http://www.flrules.org/Gateway/reference.asp?No=Ref-14020, which is hereby adopted and incorporated by reference.(b) through (k). No change.

(5). No change.

Rulemaking Authority 121.4501(8) FS. Law Implemented 121.4501(3), (4), (8), (15)(b), (20) FS. History–New 10-21-04, Amended 3-9-06, 10-25-07, 12-8-08, 5-19-09, 1-7-10, 7-12-12, 12-16-12, 12-28-14, 8-18-14, 12-30-15, 4-12-17, 2-12-18, 2-19-19, 4-8-20, 5-11-22,____________.

 

19-11.008 Forfeitures.

(1) Forfeitures after Separation or Retirement from Florida Retirement System (FRS) Investment Plan.

(a) No change.

(b) If the member returns to work for an FRS-participating employer in an FRS-covered position within the five (5) years from the date of termination, the member’s will be returned to the Investment Plan and the unvested account balance, reflecting any earnings or losses while invested in the FRS Core Plus Bond Fund, will be returned to the member’s account, together with the associated service credit. Any additional service credit earned will be applied towards vesting of the member’s benefit.  The balance will reflect any earnings or losses while invested in the FRS Core Plus Bond Fund.

(c). No change.

(d) If the member leaves FRS-covered employment after vesting in an Investment Plan benefit, but before the member vests in any transferred Pension Plan benefit, the member shall only be entitled to receive the vested Investment Plan benefit. However, if the member takes any self-initiated distribution from the vested Investment Plan benefit, the member will be considered retired and the unvested Pension Plan portion of the benefit transferred into the Investment Plan, plus any earnings on those these funds will be forfeited along with the associated service credit.

(e). No change.

(f) If an Investment Plan Hybrid Option member leaves FRS-covered employment after vesting in the Investment Plan benefit, but before vesting in the Pension Plan benefit, the member will shall only be entitled to receive the vested Investment Plan benefit. However, if the member takes any self-initiated distribution of the vested Investment Plan benefit, the member will be considered retired, and the unvested Pension Plan portion of the benefit will be forfeited along with the associated service credit. If the member does not take a distribution from the Investment Plan and later returns to work for an a FRS-participating employer in an FRS-covered position, the member will be returned to the Investment Plan Hybrid Option and the service credit for the existing Pension Plan and Investment Plan service, combined with any future service credit, will be applied towards vesting of the member’s account.

(g). No change.

(h) If a member’s benefit and service credit are forfeited because the member did not return to FRS-covered employment within five (5) years, but the member later returns to FRS-covered employment after the forfeiture has occurred, the member will be returned to the plan in which he or she was participating at the time of the forfeiture. If the member’s benefit and service credit in the Pension Plan are forfeited because the member took a self-initiated distribution of the vested Investment Plan benefit, the member is considered retired.  and If the member later returns to FRS-covered employment, the member will be considered a renewed member and will be entitled to renewed membership, if applicable.

(2) through (4). No change.

Rulemaking Authority 121.4501(8) FS. Law implemented 112.3173, 121.021(29), (39), 121.091(5), 121.4501(6), (13), 121.591, 732.802 FS. History–New 11-26-07, Amended 12-8-08, 7-12-12, 8-18-14, 12-30-15, 4-12-17, 2-12-18, 5-11-22,___________.

 

19-11009 Reemployment with an FRS-Participating Employer after Retirement.

(1) Reemployment.

(a) through (b). No change.

(c) To prevent hiring an ineligible retiree, the employer should obtain a written statement from each prospective employee as to the employee’s retirement status. The written statement can be set forth on the “Certification Form,” Form CERT, rev. 08-22 06-21 http://www.flrules.org/Gateway/reference.asp?No=Ref-15463 http://www.flrules.org/Gateway/reference.asp?No=Ref-14021, which is hereby adopted and incorporated by reference. The form can be found on the MyFRS.com website. This form should be retained in the employee’s personnel file.

(d) A retiree who returns to work with an FRS-participating employer prior to being retired for six (6) calendar months and an employer that employs or appoints such retiree are jointly and severally liable for repaying retirement benefits paid from the Investment Plan. In lieu of repayment, the member may terminate all employment from all FRS-participating employers.

(2)  Renewed Membership.

(a)  No change.

(b) No change.

1. The renewed Investment Plan member will be enrolled in the Regular Class, unless the position meets the requirements to enroll in the Special Risk Class, Elected Officers’ Class or Senior Management Service Class.

2. Employee and employer contributions will be deposited in an account for the Investment Plan member and invested in an age appropriate retirement date fund.  The renewed member may move the funds once the account is activated.

3. The renewed Investment Plan member must satisfy the vesting requirements of the Investment Plan.

4. The renewed Investment Plan member or the employer may not pay any contributions for employment by the renewed member for the period of July 1, 2010 through June 30, 2017.

5. The renewed Investment Plan member is not eligible to enroll in the Pension Plan.

FS. History–New 11-26-07, Amended 12-8-08, 8-7-11, 7-12-12, 4-12-17, 2-12-18, 2-19-19, 4-8-20, 5-11-22,__________.

 

19-11.011 Employer and Employee Contributions and ABO or Present Value Transfer Procedures.

(1). No change.

(2) One Percent Penalty for Late Payroll Reporting.

(a) No change.

(b) Any employer requesting a waiver of the delinquency fee in accordance with Section 121.78(3)(c), F.S., shall make a written request, setting forth a full description of the facts and circumstances, to the Office of Defined Contribution Programs, State Board of Administration of Florida (SBA), 1801 Hermitage Blvd., Suite 100, Tallahassee, Florida 32308 or through the Division.  The Division will forward any request regarding an Investment Plan waiver to the SBA for review. Waiver of the fee is at the discretion of the SBA. A waiver may be granted only once for an employer in any one fiscal year. Once a delinquency fee has been paid to a member’s account, it cannot be waived.

(3) Market Lloss Ccalculation for Llate Retirement Contributions payroll Rreporting.

(a) through (e). No change.

(4) through (6). No Change.

(7) Federally Mandated Monitoring of Contributions and Annual Salary.

(a) through (i). No change.

(j) If any excess remains after attribution to such other plans, the amount of any such excess attributable to the allocation of forfeitures, to a reasonable error in estimating a member’s annual compensation or to any other circumstances that the Commissioner of Internal Revenue finds is justified, in accordance with the correction principles set forth in the most recent Revenue Procedure 2018-52, released September 28, 2018, shall be used to reduce the employer’s contributions for such member under the Investment Plan in the next and succeeding limitation years; provided, however, that if the member is not covered by the Investment Plan at the end of the limitation year, such excess amount will be used to reduce the employer’s contributions to remaining members under the Investment Plan in the next, and succeeding, limitation years.

(k). No change.

(8) through (9). No change.

(10) Asset Transfer and True-Up Procedures for Newly-hired Employees with Previous FRS Service.

(a) For members who either elect to enroll or default into in the FRS Investment Plan and who have prior FRS credible service, the Division will shall calculate the amount of the member’s ABO or present value of the Pension Plan benefit. This amount shall be transferred to the member’s Investment Plan account and shall be allocated to each investment product selected by the member or/and if no allocations were provided by the member, then to an age-appropriate retirement date fund.

(b) through (d). No change.

(e) The total amount initially credited to an each Investment Plan member’s account who elected to transfer the ABO or present value from the Pension Plan is was an estimate of the member’s ABO or present value. Pursuant to Section 121.4501(3)(b)2., F.S., the Division will recalculate shall re-compute the ABO or present value not later than 60 days after the initial transfer of funds. If the re-computed amount differs from the estimated ABO amount by plus or minus $10.00 or more, the Division shall provide the aggregate adjustment amount to be transferred to or from the affected member(s).

(f). No change.

(g) The Division shall calculate the interest owed on true-up amounts. If the recalculated re-computed ABO is greater than the original amount transferred by plus or minus $10.00 or more, the member will be owed a true-up amount plus interest. Interest will be calculated pursuant to Section 121.4501(3)(b)2., F.S. If the recalculated re-computed ABO is less than the original amount transferred by plus or minus $10.00 or more, the member will owe a true-up amount plus interest and the amount will be deducted from the member’s Investment Plan account. Interest will be calculated pursuant to Section 121.4501(3)(b)2., F.S.

(h) No change.

Rulemaking Authority 121.78(3)(c), 121.4501(8) FS. Law Implemented 121.71, 121.72, 121.78, 121.4501 FS. History–New 7-12-12, Amended 12-16-12, 12-30-15, 4-12-17, 2-19-19, 5-11-22,____________.

 

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

(1) through (7). No change.

(8)(a). No change.

(b) Current members shall use Form IPRO-1, rev. 01-22 07-21, “Employee Rollover Deposit Instructions and Form,” http://www.flrules.org/Gateway/reference.asp?No=Ref-15464 http://www.flrules.org/Gateway/reference.asp?No=Ref-14022, which is hereby adopted and incorporated by reference, to effect rollovers described in this rule.

(c) through (e). No change.

(9) through (10). No change.

(11) Once an active Investment Plan member rolls over monies into the Investment Plan, the member cannot receive a distribution of the rolled over deposit these monies, or the member’s account balance, 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. the expiration of the three calendar months after terminating all FRS-covered employment. A member who has reached the normal retirement date as provided in Section 121.021(29), F.S., and who has terminated employment from all FRS-covered employment for one calendar month may request a one-time distribution of up to 10 percent (10%) of the vested account balance.

(12) through (13). No change.

Rulemaking Authority 121.4501(8), (5)(e) FS. Law Implemented 121.4501(4)(g)5., (5)(e), (21), 121.591 FS. History–New 7-12-12, Amended 12-16-12, 10-15-13, 1-28-14, 8-18-14, 12-30-15, 4-12-17, 2-12-18, 2-19-19, 4-8-20, 5-11-22,__________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Daniel Beard, Office of Defined Contribution Programs

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Board of Trustees of the State Board of Administration

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: May 23, 2023

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: April 19, 2023