For Rules 19-11.002, 19-11.006 and 19-11.007, F.A.C., to adopt revised enrollment forms and second election enrollment forms that will provide additional disclosures concerning the funded status of the FRS Pension Plan, the fact that employer ...

 

STATE BOARD OF ADMINISTRATION

RULE NOS.:RULE TITLES:

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 FRS Retirement Programs

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

PURPOSE AND EFFECT: For Rules 19-11.002, 19-11.006 and 19-11.007, F.A.C., to adopt revised enrollment forms and second election enrollment forms that will provide additional disclosures concerning the funded status of the FRS Pension Plan, the fact that employer contributions to the FRS can vary, and the 8 year vesting requirement of the FRS Pension Plan. Rule 19-11.012, F.A.C., is being amended to clarify the circumstances under which rollovers cannot be accepted by the FRS Investment Plan.

SUMMARY: To adopt revised forms containing additional disclosure information and to clarify the circumstances under which rollovers cannot be accepted by the FRS Investment Plan. There are no other rules incorporating any of these proposed rules. The proposed amendments do not have an impact on any other rules. Legislative ratification of these 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: Upon review of the proposed changes to the rules as well as all incorporated materials, 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.

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: 121.4501(8) FS.

LAW IMPLEMENTED: 121.051, 121.055, 121.35, 121.091, 121.4501, 121.591, 121.73, 121.74, 121.78 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: Friday, December 20, 2013, 9:00 a.m. – 11:00 a.m.

PLACE: Hermitage Room, the Hermitage Centre, 1801 Hermitage Blvd., 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, Agency Clerk, Office of the General Counsel, State Board of Administration, 1801 Hermitage Blvd., 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, State Board of Administration, 1801 Hermitage Blvd., Tallahassee, Florida 32308, [phone], [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

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

(1) through (3) No change.

(4)(a) If the FRS Investment Plan member enrolls in the FRS 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. 10/13 07/12, the General Retirement Plan Enrollment Form for Regular Special Risk and Special Risk Administrative Support Class Employees, Form ELE-1, rev. 10/13 10/12, 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. 10/13 07-12, or the 2nd Election Retirement Plan Enrollment Form, Form ELE-2, rev 10/13 10-12, which are adopted and incorporated by reference in subsection 19-11.007(3), 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.

(4)(b) through (17) 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, _________.

 

19-11.006 Enrollment Procedures for New Hires.

(1) No change.

(2) Specific Enrollment Procedures.

(a) through (b) No change.

(c) The SBA has designed the forms set forth below for ease of use for employees in the several membership classes of the Florida Retirement System. 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. 10/13 07-12, http://www.flrules.org/Gateway/reference.asp?No=Ref-3317 http://www.flrules.org/Gateway/reference.asp?No=Ref-01829, which is only for regular, special risk, and special risk administrative support class employees; a General Retirement Plan Enrollment Form, Form ELE-1, rev. 10/13 10-12 http://www.flrules.org/Gateway/reference.asp?No=Ref-03318 http://www.flrules.org/Gateway/reference.asp?No=Ref-01817 for regular, special risk, and special risk administrative support class employees; an Elected Officers’ Class Retirement Plan Form, Form EOC-1, rev. 10/13 10/12, http://www.flrules.org/Gateway/reference.asp?No=Ref-03321 http://www.flrules.org/Gateway/reference.asp?No=Ref-01819; a Community College Optional Retirement Program (CCORP) Enrollment Form, Form OCC-1, rev. 10/13 10-12, http://www.flrules.org/Gateway/reference.asp?No=Ref-3324 http://www.flrules.org/Gateway/reference.asp?No=Ref-01820; a State University System Optional Retirement Program (SUSORP) Retirement Plan Enrollment Form, Form ORP-16, rev. 10/13 10-12, http://www.flrules.org/Gateway/reference.asp?No=Ref-03325 http://www.flrules.org/Gateway/reference.asp?No=Ref-01822; a State Senior Management Service Employees Retirement Plan Enrollment Form, Form SMS-1, Rev. 10/13 10-12, http://www.flrules.org/Gateway/reference.asp?No=Ref-3322 http://www.flrules.org/Gateway/reference.asp?No=Ref-01823; and a Local Senior Management Service Employees Retirement Plan Enrollment Form, Form SMS-3, rev. 10/13 10-12, http://www.flrules.org/Gateway/reference.asp?No=Ref-03323 http://www.flrules.org/Gateway/reference.asp?No=Ref-01824. All of the preceding forms are hereby adopted and incorporated by this reference.

1. All enrollment forms can be obtained at the sources listed in paragraph (1)(f), above.

2. Only members of the regular, special risk, and special risk administrative support classes of employees may use the EZ form, “EZ Retirement Plan Enrollment Form for Regular, Special Risk and Special Risk Administrative Support Class Employees,” Form ELE-1-EZ. If an employee chooses to use the EZ form, only limited information (i.e., name, plan choice, social security number and signature) is required. The FRS Select Moderate Balanced Fund is the only initial investment option (although that investment option may be changed by the member once the account is funded). Beneficiary designations may be made as set forth in Rule 19-11.002, F.A.C.

(2)(d)1 through (3). 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, 215.44(8)(b), 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,__________.

 

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

(1) through (2) No change.

(3) General Procedures.

(a) All members who wish to change their FRS retirement plan using their 2nd election must use a 2nd election enrollment form or, if moving from the FRS Pension Plan to the FRS Investment Plan or FRS Investment Plan Hybrid Option, may do so online by accessing the Second Choice Service at MyFRS.com. There are two types of enrollment forms. The “2nd Election Retirement Plan Enrollment Form” Form ELE-2, rev. 10/13 01-12, http://www.flrules.org/Gateway/reference.asp?No=Ref-03319 http://www.flrules.org/Gateway/reference.asp?No=Ref-01068, 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 FRS Pension Plan to either the FRS Investment Plan or the FRS Investment Plan Hybrid Option. Alternatively, the member can complete the “2nd Election EZ Retirement Plan Enrollment Form,” Form ELE-2EZ, rev. 10/13 07/11, http://www.flrules.org/Gateway/reference.asp?No=Ref-03320 http://www.flrules.org/Gateway/reference.asp?No=Ref-01069, 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 FRS Pension Plan invested in the FRS Select Moderate Balanced Fund. The member may change the investment selection at any time after the FRS Investment Plan or the FRS Investment Plan Hybrid Option account is activated. Activation occurs when contributions are deposited to the member’s FRS Investment Plan account.

(3)(b) through (4) 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 , ______________.

 

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

(1) through (6)(b) No change.

(6)(c) The Investment Plan Administrator may not accept rollovers from:

1. The former spouse of an Investment Plan member who had an account in the Investment Plan, established by terms of a qualified domestic relations order and then removed all of the funds from the account.

2. The former beneficiary of an Investment Plan member who removed all of the funds from the account.

3. Members of the FRS Pension Plan.

4. The spouse or beneficiary of a deceased FRS Pension Plan member who had a DROP accumulation in the FRS Pension Plan.

(7) through (12) 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 10-15-13, ____________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Ron Poppell, Senior Officer, Defined Contributions Program

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

DATE PROPOSED RULE APPROVED BY AGENCY HEAD:

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: October 9, 2013, Vol. 39/197