To amend forms and rule language in relation to SB 7012.

 

DEPARTMENT OF MANAGEMENT SERVICES

Division of Retirement

RULE NO.:RULE TITLE:

60S-4.008Benefits Payable Upon Death

PURPOSE AND EFFECT: To amend forms and rule language in relation to SB 7012.

SUMMARY: To amend forms, including forms SVF-2, FRS Pension Plan Affidavit Attesting to Eligibility, SRF-2, FRS Pension Plan Student Report Form, and SRF-3, FRS Pension Plan Authorization for Release of Information in regards to the passing of SB 7012. To update rule language, including language pertinent to SB 7012 which provides death benefits to the surviving spouse or children at 100% of the member’s salary.

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 FS.

LAW IMPLEMENTED: 61.1301, 112.18, 112.181, 121.021(14), 121.052(5), 121.055, 121.091(7) 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 18, 2016 at 10:00 a.m.

PLACE: 2450 Shumard Oak Blvd., Bldg. 2, Tallahassee FL 32311

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Garry Green, Chief, Bureau of Research and Member Communications, Department of Management Services, Division of Retirement, 2450 Shumard Oak Blvd., Bldg. 2, Tallahassee FL 32311, [phone]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

60S-4.008 Benefits Payable Upon Death.

(1)(a) Through (b) No change.

(c)1. If the death of a Teachers’ Retirement System member occurs prior to the member obtaining 10 years of creditable service, the member’s designated beneficiary shall receive a refund of the member’s accumulated contributions as provided in Section 238.07, F.S., and shall make application to the Division for such refund on Form FST-11g, Florida Retirement System Pension Plan Application of Beneficiary for Benefit Payment as adopted in paragraph (a).

2. In addition, survivor benefits may be payable in accordance with Section 238.07(18), F.S. Survivors meeting the eligibility criteria for such benefits as provided in Section 238.07(18), F.S., shall make application to the Division on Form TR-11c (Rev. 12/02), https://www.flrules.org/Gateway/reference.asp?No=Ref-00383, Teachers’ Retirement System Application for Survivor Benefits herein incorporated by reference, which may be obtained by calling the Division Toll Free at [phone], if calling from outside the Tallahassee calling area, or locally at [phone], or if hearing or speech impaired by calling the Division via T.D.D. at the Florida Relay System by dialing 711 or [phone]. An unmarried surviving dependent child of the deceased member over 18 years of age but not over 22 years of age and enrolled as a student in an accredited education institution meeting the eligibility criteria for survivor benefits under Section 238.07(18), F.S., shall also be required to submit the information in (d) following to the Division for survivor benefit eligibility determination.:

(d) An unmarried dependent child of a deceased member who is over the age 18 must submit the following documents:

a. An acceptance letter from an accredited educational institution or Form SRF-2, effective 07/16 (Rev. 07/99), http://www.flrules.org/Gateway/reference.asp?No=Ref-_____ http://www.flrules.org/Gateway/reference.asp?No=Ref-00379, Florida Teachers’ Retirement System Student Report Form, herein adopted by reference, which may be obtained by calling the Division Toll Free at [phone], if calling from outside the Tallahassee calling area, or locally at [phone], or if hearing or speech impaired by calling the Division via T.D.D. at the Florida Relay System by dialing 711 or [phone], completed by the accredited educational institution; and

b. A completed Form SRF-3, effective 07/16 (Rev.07/99), http://www.flrules.org/Gateway/reference.asp?No=Ref-_____ http://www.flrules.org/Gateway/reference.asp?No=Ref-00380, Florida Teachers’ Retirement System Authorization for Release of Information, herein adopted by reference, which may be obtained by calling the Division Toll Free at [phone], if calling from outside the Tallahassee calling area, or locally at [phone], or if hearing or speech impaired by calling the Division via T.D.D. at the Florida Relay System by dialing 711 or [phone]; and

c. A completed Form SVF-2, effective 07/16 (Rev 07/99), http://www.flrules.org/Gateway/reference.asp?No=Ref-_____ http://www.flrules.org/Gateway/reference.asp?No=Ref-00381, Florida Teachers’ Retirement System Affidavit Attesting to Eligibility for Monthly Retirement Benefits, herein adopted by reference, which may be obtained by calling the Division Toll Free at [phone], if calling from outside the Tallahassee calling area, or locally at [phone], or if hearing or speech impaired by calling the Division via T.D.D. at the Florida Relay System by dialing 711 or [phone].

(2) through (3) No change.

(4) If an FRS Pension Plan member is killed in the line of duty, except as provided in (5) for certain Special Risk Class members, the following shall apply:

(a) For Pension Plan members except Special Risk Class members killed in the line of duty before July 1, 2013, regardless Regardless of the member’s length of service, the surviving spouse may elect a benefit equal to one-half of the member’s monthly salary, excluding overtime and lump sum payments, at time of death for the spouse’s lifetime; or if the member had completed ten or more years of creditable service, or eight or more years of creditable service as a member of the Elected Officers’ Class, or seven or more years of creditable service as a member of the Senior Management Service Class the surviving spouse may elect to receive a benefit as provided in paragraph 60S-4.008(2)(b), F.A.C.

(b) through (f) No change.

(5) If an FRS Pension Plan or Investment Plan Special Risk Class member is killed in the line of duty on or after July 1, 2013, the following shall apply to benefit payments beginning on or after July 1, 2016:

(a) Regardless of the member’s length of service, the surviving spouse may elect a benefit equal to 100 percent  of the member’s monthly salary, excluding overtime and lump sum payments, at time of death for the spouse’s lifetime.

(b) If the member had any children under 18 years of age at the time of his or her death, the surviving spouse shall not be permitted to receive a refund of the member’s contributions in lieu of the benefits provided in paragraph 60S-4.008(4)(a), F.A.C.

(c) If the surviving spouse is receiving a benefit as provided in paragraph 60S-4.008(5)(a), F.A.C., and dies, the benefits which would have been payable to the surviving spouse shall be paid for the use and benefit of such member’s child or children until the member’s youngest child reaches 18 years of age.

(d) If the member leaves no surviving spouse but is survived by a child or children under 18  years of age, the benefits shall be paid for the use and benefit of such member’s child or children until the member’s youngest child reaches 18 years of age.

(e) If the surviving child or children remains unmarried and a full time student, benefit may be paid after age 18 and until the youngest child reaches 25 year of age.

(f)The distribution of benefits as provided by this subsection shall supersede any other distribution that may have been provided for by the member’s designated beneficiaries.

(5) through (9) renumbered as (6) through (10) No change.

Rulemaking Authority 121.031 FS. Law Implemented 61.1301, 112.18, 112.181, 121.021(14), 121.052(5), 121.055, 121.091(7) FS. History–New 1-1-72, Amended 10-20-72, 12-31-74, 7-21-75, 8-26-81, Formerly 22B-4.08, Amended 2-6-84, 1-12-87, 2-7-89, 9-5-90, 5-15-91, 11-14-91, Formerly 22B-4.008, Amended 3-18-93, 1-25-94, 8-4-94, 12-12-96, 5-10-99, 8-13-03, 4-5-12, 1-20-14, 5-12-16,  _________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Elizabeth Stevens, Director

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Chad Poppell, Secretary

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: October 24, 2016

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: October 26, 2016