Amending the rules of the Division of Retirement to correspond with statutory changes up through the 2012 Legislative session; deleting obsolete language, incorporating by reference ten revised State Board of Administration plan election forms and ...

 

DEPARTMENT OF MANAGEMENT SERVICES
Division of Retirement

RULE NO.: RULE TITLE:
60S-1.002: Statements of Policy
60S-1.004: Participation
60S-1.0045: Renewed Membership in the Regular Class and Senior Management Service Class
60S-1.0055: Elected Officers' Class
60S-1.0057: Senior Management Service Class (SMSC)
60S-1.007: Admission of Cities, Independent Special Districts, Metropolitan Planning Organizations, Public Charter Schools and Public Charter Technical Career Centers to the Florida Retirement System
PURPOSE AND EFFECT: Amending the rules of the Division of Retirement to correspond with statutory changes up through the 2012 Legislative session; deleting obsolete language, incorporating by reference ten revised State Board of Administration plan election forms and making technical correction to the division’s website address throughout these rules.
SUMMARY: The amendments set forth changes the term “enrollment” in subsection 60S-1.002(3) to “reporting” to coincide with statutory changes resulting from chapter law 2009-209, which closed renewed membership to retirees initially reemployed in a regularly established position on or after July 1, 2010, but requires employers to report contributions on these reemployed retirees who are not eligible to be enrolled and makes other corresponding changes throughout rule resulting from the closure of renewed membership; makes gender specific changes throughout rule; incorporates by reference ten revised State Board of Administration plan election forms; makes changes to the references to regularly established position and temporary position in accordance with statutory changes (chapter law 2012-126); updates division’s website address throughout rule; changes the term “city” to “municipality” to coincide with such terminology changes resulting from chapter law 2011-69, and makes miscellaneous technical changes in rule.
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: Not required because there are no adverse impacts on economic growth, business competitiveness or regulatory costs of more than $1M in the aggregate within five years of implementation.
Any person who wishes to provide information regarding the statement of estimated regulatory costs, or to provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
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), 121.4501(8)(a),FS.
LAW IMPLEMENTED: 27.701, 121.011, 121.021, 121.021(34), 121.021(39), 121.031, 121.051, 121.051(1), (2), 121.051(2)(b)6., 121.051(2)(b), (3), 121.0511, 121.0511(6), 121.052, 121.053, 121.055, 121.081, 121.091, 121.091(8), (13), 121.122, 121.35, 121.355, 121.4501, 240.3195, 1012.875, 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: January 4, 2013, 10:00 a.m., ET
PLACE: Division of Retirement of the Department of Management Services, Director’s Conference Room, Suite 208, 1317 Winewood Blvd., Bldg 8, Tallahassee, Florida 32399-1560
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 48 hours before the workshop/meeting by contacting: Richard Clifford, Senior Benefits Analyst, Division of Retirement, Department of Management Services at [phone] or via e-mail at [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: Garry Green, Operations and Management Consultant Manager, Department of Management Services, Division of Retirement, 1317 Winewood Blvd., Bldg. 8, Tallahassee FL 32399-1560, [phone]

THE FULL TEXT OF THE PROPOSED RULE IS:

60S-1.002 Statements of Policy.

(1) - (2) No change.

(3) Upon a person’s employment or reemployment, the employer shall furnish to the Division such information as may be required on the Monthly Retirement Report, for the proper reporting enrollment of the officer or employee tointo the Florida Retirement System.

Rulemaking Authority 121.031 FS. Law Implemented 121.031, 121.051, 121.053, 121.091, 121.122 FS. History–New 1-1-72, Amended 10-20-72, Repromulgated 12-31-74, Amended 1-16-77, 7-1-79, 8-26-81, 1-19-82, 2-6-84, 11-6-84, Formerly 22B-1.02, Amended 3-11-87, 5-15-91, 11-14-91, Formerly 22B-1.002, Amended 9-17-03,_________.

60S-1.004 Participation.

(1) Compulsory Membership – Participation in the Florida Retirement System (FRS) shall be compulsory as a condition of employment for all officers and employees enumerated in the following paragraphs who are filling a regularly established position as described in subsection 60S-1.004(4), F.A.C., and defined in Rule 60S-6.001, F.A.C., (exceptions are provided in subsection 60S-1.004(2) or (3), F.A.C.). Such officers and employees shall participate in one of the five Florida Retirement System classes of membership. Members shall be assigned to the Regular Class unless eligible or required by virtue of the position held to be in the Special Risk Class as provided in Rule 60S-1.005, F.A.C., the Special Risk Administrative Support Class as provided in Rule 60S-1.0054, F.A.C., the Elected Officers’ Class as provided in Rule 60S-1.0055, F.A.C., or the Senior Management Service Class as provided in Rule 60S-1.0057, F.A.C. All such officers or employees initially enrolled into the FRS or initially enrolled as renewed members of the FRS as provided in Sections 121.122 and 121.053, F.S., shall be enrolled, by default, into the defined benefit plan of the FRS more commonly referred to as the FRS Pension Plan as provided in Part I of Chapter 121, F.S., and may, by the last business day of the fifth month following his or her month of hire as provided in Section 121.4501, F.S., choose to elect enrollment into the defined contribution plan of the FRS more commonly referred to as the FRS Investment Plan as provided in Part II of Chapter 121, F.S. Such election may be filed with the Plan Choice Administrator as defined in subsection 60S-6.001(50), F.A.C., using one of the following State Board of Administration forms applicable to his or her membership class in the Florida Retirement System. The forms are: Form ELE-1-EZ (Rev. 7-1207-11) http://www.flrules.org/Gateway/reference.asp?No=Ref-01922 http://www.flrules.org/Gateway/reference.asp?No=Ref-00319, an EZ Retirement Plan Enrollment form which is only for Regular Class, Special Risk Class, and Special Risk Administrative Support Class members; Form ELE-1 (Rev. 10-1210-11) http://www.flrules.org/Gateway/reference.asp?No=Ref-01923http://www.flrules.org/Gateway/reference.asp?No=Ref-00318, a General Retirement Plan Enrollment form for Regular Class, Special Risk Class, and Special Risk Class Administrative Support Class members; Form EOC-1 (Rev. 10-1210-11) https://www.flrules.org/Gateway/reference.asp?No=Ref-01924 http://www.flrules.org/Gateway/reference.asp?No=Ref-00322, a form for Elected Officers’ Class members; Form OCC-1 (Rev. 10-1210-11) https://www.flrules.org/Gateway/reference.asp?No=Ref-01925 http://www.flrules.org/Gateway/reference.asp?No=Ref-00328, a form for members eligible for participation in the State Community College Optional Retirement Program; Form ORP-16 (Rev. 10-1210-11) https://www.flrules.org/Gateway/reference.asp?No=Ref-01926, http://www.flrules.org/Gateway/reference.asp?No=Ref-00330, a form for members eligible for participation in the State University System Optional Retirement Plan; Form SMS-1 (Rev. 10-1210-11) https://www.flrules.org/Gateway/reference.asp?No=Ref-01927http://www.flrules.org/Gateway/reference.asp?No=Ref-00331, a form for members eligible for participation in the Senior Management Service Optional Annuity Plan; and Form SMS-3 (Rev. 10-1210-11) https://www.flrules.org/Gateway/reference.asp?No=Ref-01928http://www.flrules.org/Gateway/reference.asp?No=Ref-00332, a form for members eligible for participation in a local retirement plan in lieu of the Senior Management Service Class all of which are herein incorporated by reference. The form appropriate to the employee’s membership class is available in the enrollment package which is sent to the employee’s address of record after the employee’s first reported payroll or by accessing the Division’s Web site (www.frshttp://FRS.MyFlorida.com); or by calling toll free 1(866)446-9377, or for the hearing impaired 1(888)429-2160, or alternatively the employee may choose to submit a separate document in lieu of the form to file their election with the Plan Choice Administrator which at minimum shall provide the employee’s name, social security number and his or her plan election. After the period of initial FRS plan choice has expired, or the month following the receipt of the eligible employee’s plan election, if sooner, the employee’s plan choice is irrevocable except that the employee shall have one opportunity, at the employee’s discretion, to change plans as provided in Section 121.4501, F.S. Such election to change FRS plans may be made using one of the following State Board of Administration forms for ease of use for employees in the several membership classes of the Florida Retirement System. These forms are: Form ELE-2 (Rev. 10-1210-11) https://www.flrules.org/Gateway/reference.asp?No=Ref-01929http://www.flrules.org/Gateway/reference.asp?No=Ref-00320, 2nd Election Retirement Plan Enrollment Form; and Form ELE-2-EZ (Rev. 07-1207-11) https://www.flrules.org/Gateway/reference.asp?No=Ref-01930http://www.flrules.org/Gateway/reference.asp?No=Ref-00321, 2nd Election Retirement Plan Enrollment Form both of which are herein incorporated by reference. These forms can be obtained by accessing the Division’s Web site (www.frshttp://FRS.MyFlorida.com); or by calling toll free 1(866)446-9377, or for the hearing impaired 1(888)429-2160, or alternatively the employee may choose to submit a separate document in lieu of the form to file their election with the Plan Choice Administrator which at minimum shall provide the employee’s name, social security number and his or her plan election.

(a) - (c) No change.

(d) Any member, as provided in paragraph 60S-1.004(2)(f), F.A.C., who fails within 6 months of reemployment to make written notification to the Division of his or her intention to remain in the existing system.

(e) Officers and employees of a covered group of a municipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center which is approved for participation in the Florida Retirement System. Such officers and employees shall be compulsory members as follows:

1. If the participating municipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center did not have a local retirement system at the time it was approved for participation in the Florida Retirement System, all present and future officers and employees shall be covered.

2. If the participating municipaltiycity, independent special district, metropolitan planning organization, participating public charter school or public charter technical career center had a local retirement system at the time it was approved for membership in the Florida Retirement System, all officers and employees who elect to transfer to the Florida Retirement System shall be covered and all future officers and employees shall be covered.

(f) All officers or employees of a covered group of a municipality city or independent special district, who are members of a local retirement system established in accordance with Chapter 175 or 185, F.S., may elect coverage under the Florida Retirement System by a majority of such officers and employees in a referendum held for that purpose. Upon establishing membership in the Florida Retirement System for the covered group, all officers or employees hired thereafter shall be compulsory members of the FRS. Existing officers and employees shall be subject to paragraph 60S-1.004(2)(h), F.A.C.

(g) - (i) No change.

(j) All members who were employed with a municipalitycity, independent special district, or hospital when such employer revoked its participation in the Florida Retirement System on January 1, 1996, as provided by Section 121.0511 or 121.051(2)(b)5., F.S. Such members shall remain as members of the Florida Retirement System for as long as they are continuously employed with that same employer.

(k) - (l)  No change

(2) Optional Membership – Participation in the Florida Retirement System shall be optional for all officers and employees enumerated in the following paragraphs who are filling a regularly established position as described in subsection 60S-1.004(4) and defined in Rule 60S-6.001, F.A.C.

(a) -(g) No change.

(h) Officers or employees of a covered group of a municipalitycity or independent special district who are members of a local retirement system established in accordance with Chapter 175 or 185, F.S. All such officers and employees who elect coverage under the Florida Retirement System shall be compulsory members of the Florida Retirement System, provided a majority of such officers and employees elect such coverage in a referendum held for that purpose.

(i) No change

(j) Any employee filling a position classified as eligible for participation in the State Community College System Optional Retirement Program (CCORP) as provided in Sections 121.051 and 1012.875, F.S.

1.a. No change.

b. On or after July 1, 2003 and through December 31, 2008, an active CCORP participant, having made election to participate in the CCORP prior to July 1, 2003, may file an election in writing with the Plan Choice Administrator as defined in subsection 60S-6.001(50), F.A.C., to transfer the sum representing the Present Value of the FRS Pension Plan service credit that resulted from that period(s) of time when the participant first became eligible to transfer to the CCORP and the effective date of such election as provided in Section 121.051(2)(c)7., F.S. Transfer of this sum will nullify service credit for that period under the FRS Pension Plan. Such election may be filed in writing to the Plan Choice Administrator as defined in subsection 60S-6.001(50), F.A.C., in accordance to Section 121.4501, F.S., and Rule 19-11.006, F.A.C., using the State Board of Administration designed form for ease of use; Form OCC-2 (Rev. 10-1210-11) https://www.flrules.org/Gateway/reference.asp?No=Ref-01931http://www.flrules.org/Gateway/reference.asp?No=Ref-00329, “Retirement Plan Conversion Form for Community College Optional Retirement Program (CCORP) Members”, herein incorporated by reference. This form is available on the Division’s Web site (www.frshttp://FRS.MyFlorida.com); or by calling toll free [phone], or for the hearing impaired [phone], or alternatively the employee may choose to submit a separate document in lieu of Form OCC-2, to file their election with the Plan Choice Administrator which at minimum shall provide the employee’s name, social security number and his or her plan election.

2. - 3.No change.

(k) No change.

(3) Membership Not Permitted – Participation in the Florida Retirement System shall not be permitted for:

(a) - (i) No change.

(j) Any person initially employed on or after January 1, 1996, by a municipalitycity, independent, special district, or hospital that revoked its participation in the Florida Retirement System on that date. Such person shall participate in a retirement plan established by the employer in accordance with Section 121.0511, or 121.051(2)(b)5., F.S.

(k) - (o) No change.

(4) Membership in the Florida Retirement System shall be compulsory if the employee is filling a full-time or part-time regularly established position; except for State University System Optional Retirement Program (SUSORP)-eligible and mandatory SUSORP employees as provided in Section 121.35, F.S., and paragraph 60S-1.004(2)(c), F.A.C.; Senior Management Service Optional Annuity Program (SMSOAP)-eligible employees as provided in Section 121.055 and 121.4501, F.S., and paragraph 60S-1.004(2)(d), F.A.C.; elected officers eligible for membership in the Elected Officers’ Class as provided in Section 121.052, F.S., and paragraph 60S-1.004(2)(e), F.A.C.; and CCORP-eligible employees as provided in Sections 121.051 and 1012.875, F.S., and paragraph 60S-1.004(2)(j), F.A.C. An employee filling a regularly established position shall be enrolled on the first day of employment, even if the employee is serving a probationary period, or working part-time. A position meeting the definition below shall be considered a regularly established position. An elected official (with the exception of those listed in subparagraph 60S-1.004(5)(d)7., F.A.C.), shall be considered to be filling a regularly established position on the date he or she is commissioned or assumes office.

(a) A regularly established position in a state agency is a position as defined in Section 121.021(52)(a), F.S.that is authorized and established pursuant to law and is compensated from a salaries and benefits appropriation pursuant to Section 216.011(1)(mm), F.S., or a position established pursuant to Section 216.262(1)(a) and (b), F.S., and is compensated from either a salaries and benefit appropriation pursuant to Section 216.011(1)(mm), F.S., or from a salaries account as provided for in Section 216.011(1)(nn), F.S.

(b) A regularly established position in a local agency (district school board, county agency, Florida College System institution community college, municipalitycity, independent special district, metropolitan planning organization, or participating public charter school or charter technical career center) is an employment position which will be in existence beyond 6 consecutive calendar months except that effective October 1, 2012, a regularly established position in a water management district operating pursuant to chapter 373, F.S., shall be as defined in Section 121.021(52)(c), F.S. A local agency, when establishing an employment position, except for positions identified in sub-subparagraphs 60S-1.004(4)(c)7.a. and 8.a., F.A.C. or paragraph 60S-1.004(5)(d), F.A.C., should determine if the position will exist beyond 6 consecutive calendar months. If it will, then it is a regularly established position. If it will not, then it is a temporary position. A position which exists for any part of a month is considered to be in existence for the entire month. A local agency shall not use the 6 month period as a means for not making the required retirement contributions into the Florida Retirement System trust fund. Records documenting the intended length of a temporary position and the dates of employment of an employee in such position must be maintained by the agency.

(c) The following shall apply to all members employed by a local agency except that effective October 1, 2012, such shall not apply to members employed by a water management district operating pursuant to chapter 373, F.S:

1. – 8. No change.

(5) An employee who is filling a temporary position shall not be eligible for membership in the Florida Retirement System. Records documenting the intended length of a temporary position and the dates of employment of an employee in such position must be maintained by the agency. An employer employing a person in a temporary position shall advise the employee at the time of his or her employment that he or she is filling a temporary position and cannot participate in the Florida Retirement System or claim this temporary employment later for retirement purposes. A position shall not be considered temporary due to the uncertainty of the employee’s intention to continue employment. A position meeting the definition below shall be a temporary position.

(a) A temporary position in a state agency is a position as defined in Section 121.021(53)(a), F.S.an employment position which is compensated from an other personal services (OPS) account as provided for in Section 216.011(1)(dd), F.S.

(b) A temporary position in a local agency except as provided in paragraph (c) is:

1. – 3. No change

(c) Effective October 1, 2012, a temporary position in a water management district is a position as defined in Section 121.021(53)(c), F.S.

(6) - (7) No change

Rulemaking Authority 121.031, 121.4501(8)(a) FS. Law Implemented 121.011, 121.021, 121.021(39), 121.051(1), (2), 121.051(2)(b)6., 121.0511, 121.0511(6), 121.052, 121.053, 121.055, 121.081, 121.091(8), (13), 121.122, 121.35, 121.355, 121.4501, 240.3195, 1012.875 FS. History–New 1-1-72, Amended 10-20-72, 12-31-74, 10-2-78, 7-1-79, 7-1-80, 8-26-81, 1-19-82, 10-11-82, 1-18-83, 11-6-84, 4-17-85, Formerly 22B-1.04, Amended 2-4-86, 1-12-87, 3-11-87, 2-7-89, 9-5-90, 5-15-91, 11-14-91, Formerly 22B-1.004, Amended 3-18-93, 8-4-94, 4-5-95, 3-12-96, 12-12-96, 2-24-99, 9-17-03, 1-1-06, 4-5-12, __________.

60S-1.0045 Renewed Membership in the Regular Class and Senior Management Service Class.

(1) - (3) No change.

(4) Renewed membership in the FRS is closed to any retiree of a state administered retirement system initially reemployed on or after July 1, 2010. The employer of a reemployed retiree employed in a regularly established position not eligible for renewed membership in the FRS shall be required to make the applicable contributions as provided in subsections 60S-3.003(6) and (7), F.A.C.

Rulemaking Authority 121.031 FS. Law Implemented 121.091, 121.122 FS. History–New 11-14-91, Formerly 22B-1.0045, Amended 3-18-93, 5-10-99, 9-17-03, 4-5-12,__________.

60S-1.0055 Elected Officers’ Class.

(1) - (3) No change

(4) Renewed membership in the Elected Officers’ Class –

(a) - (f) No change

(g) Renewed membership in the Florida Retirement System is closed to any retiree of a state administered retirement system who is initially reemployed on or after July 1, 2010. The employer of a reemployed retiree not eligible for renewed membership shall make the applicable contributions as required in Sections 121.71(5) and 121.76, F.S.

 

Rulemaking Authority 121.031, 121.052(14) FS. Law Implemented 121.052, 121.053 FS. History–New 11-6-84, Amended 4-17-85, Formerly 22B-1.055, Amended 3-11-87, 11-14-91, Formerly 22B-1.0055, Amended 3-18-93, 2-24-99, 9-17-03, 4-5-12,                            .

60S-1.0057 Senior Management Service Class (SMSC).

(1) Compulsory Membership – Membership in the Senior Management Service Class shall be compulsory, except as provided in subsection 60S-1.0057(7), F.A.C., for any member of the Florida Retirement System or an existing system who holds any of the following positions:

	Position		Effective date
(a) - (b) No change
(c) Certain local agency positions as follows:       The president of each community college.       The manager of each participating municipalitycity or county.       All appointed district school superintendents.		January 1, 1990
(d) – (k) No change

(2) – (6) No change

(7) Optional Membership – Membership in the Senior Management Service Class shall be optional for certain eligible members according to the following:

(a) –(e) No change

(f)1. Effective July 1, 1997, within 6 months of assuming office or within 6 months of July 1, 1997, the following elected officers eligible for membership in the Elected Officers’ Class as provided in subsection 60S-1.0055(1), F.A.C., and who have not previously retired from a State of Florida administered retirement plan, may elect membership in the Senior Management Service Class in lieu of the Elected Officers’ Class:

a. No change

b. Any elected county, municipalitycity, or independent special district officer.

2. Such elected officer may file their election in writing to the Plan Choice Administrator as defined in subsection 60S-6.001(50), F.A.C., no later than the last business day of the 6th month after assuming elected office as provided in Sections 121.055, and 121.4501, F.S. and Rule 19-11.006, F.A.C., using the SBA designed form for ease of use; Form EOC-1, Elected Officers’ Class Retirement Plan Enrollment Form adopted by reference in subsection 60S-1.004(1), F.A.C., or alternatively the employee may choose to submit a separate document in lieu of Form EOC-1 to file their election with the Plan Choice Administrator which at minimum shall provide the employee’s name, social security number and his or her election.

(g) No change.

(8) No change.

Rulemaking Authority 121.031, 121.4501(8)(a) FS. Law Implemented 27.701, 121.051, 121.055 FS. History–New 1-12-87, Amended 2-7-89, 9-5-90, 11-14-91, Formerly 22B-1.0057, Amended 1-25-94, 8-4-94, 12-12-96, 2-24-99, 9-17-03, 4-5-12,                            .

60S-1.007 Admission of Cities, Independent Special Districts, Metropolitan Planning Organizations, Public Charter Schools and Public Charter Technical Career Centers to the Florida Retirement System.

(1) Social Security Coverage Required – Any municipality city or independent special district or unit thereof, or metropolitan planning organization, public charter school or public charter technical career center desiring to participate in the Florida Retirement System must be approved for social security coverage by the United States Secretary of Health and Human Services and the Administrator prior to participating in the Florida Retirement System. Application for social security coverage shall be made to the Administrator in accordance with Chapter 650, F.S.

(2) Request for Membership – The governing body of the municipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center desiring to participate in the Florida Retirement System shall submit a request to the Administrator. This request must indicate whether or not the present officers and employees are covered by a retirement system and whether or not they are covered by social security.

(3) Ordinance or Resolution – The Administrator shall furnish the governing body of the municipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center a sample ordinance or resolution, whichever is applicable, which may be used by the governing body of the municipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center in setting forth the terms under which the benefits of the Florida Retirement System will be extended to the officers and employees of the covered group.

(4) The ordinance adopted by a muncipalitycity and the resolution adopted by an independent special district, metropolitan planning organization, public charter school or public charter technical career center shall include the following:

(a) Designation of those officers and employees who are eligible and those officers and employees who are not eligible for participation in the Florida Retirement System.

(b) A declaration of the intent of the municipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center to extend the benefits of the Florida Retirement System to all eligible officers and employees as of a specific date.

(c) Designation of an official of the municipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center to execute agreements and amendments thereto with the Director of the Division of Retirement.

(d) Provisions for withholding from employees’ compensation each pay period the social security contributions required by Rule 60S-3.010, F.A.C.

(e) Provisions for the municipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center to remit to the Division each pay period in accordance with Rule 60S-3.011, F.A.C., the contributions required to be paid pursuant to Rule 60S-3.003, F.A.C.

(f) Provisions for the establishment, maintenance, and submission of such records relating to the Florida Retirement System as are required by the Administrator.

(g) Certification of the effective date of the ordinance or resolution.

(5) Agreement – The governing body of each municipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center not participating in an existing retirement system on November 30, 1970, which desires to participate in the Florida Retirement System shall be required to enter into an agreement with the Director of the Division of Retirement. The agreement shall include the following provisions:

(a) That benefits shall be provided for all eligible officers and employees in accordance with the provisions of Chapter 121, F.S., and these rules and regulations.

(b) That the required contributions for social security shall be deducted from the compensation of all members each pay period and shall be remitted as required by Rule 60S-3.010, F.A.C.

(c) That the muncipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center shall remit to the Division each pay period in accordance with Rule 60S-3.011, F.A.C., the contributions required to be paid pursuant to Rule 60S-3.003, F.A.C.

(d) That failure of the municipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center to comply with the agreement with regard to the payment of employer and employee retirement contributions when due shall be the basis for the Administrator invoking the applicable provisions of Rule 60S-3.011, F.A.C.

(e) That the municipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center shall establish and maintain such records and make such reports relating to the Florida Retirement System as may be required by the Administrator.

(f) That the municipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center shall or shall not provide for all or any part of the past service of its employees. This part of the agreement shall be binding and irrevocable effective with the date of coverage in the Florida Retirement System.

1. If past service is to be provided, the agreement must stipulate the amount of past service to be provided by the municipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center. The cost of such past service shall be computed by the Division of Retirement. If the agency does not wish to pay the entire cost immediately, a 10% down payment shall be required and the balance shall be paid in yearly installments amortized over a period determined by the following formula: The average age of the employees of the municipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center joining the system is subtracted from the62 (normal retirement age for a Regular Class member of the Florida Retirement System as defined in Section 121.021(29), F.S., and the difference shall be the maximum number of years, not to exceed 15 years, over which the payments may be amortized. The agency may elect to amortize payments over a shorter period of time than the maximum years allowed. Interest charged shall be 4 percent compounded annually until July 1, 1975 and 6.5 percent compounded annually thereafter until date of payment.

2. At the time the agency begins participating in the Florida Retirement System, the municipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center shall provide certification of monthly service and earnings for all employees eligible to claim past service credit, whether or not the past service credit is purchased by the employer.

(g) That the agreement may not be revoked, except as provided in subsection 60S-1.007(8), F.A.C., and that all officers and employees employed on or after the effective date of the agreement shall be compulsory members of the Florida Retirement System as a condition of employment.

(6) Certified Financial Statement – The governing body of a municipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center which has a local retirement system shall, prior to the municipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center being approved for participation in the Florida Retirement System, submit to the Administrator a certified financial statement showing the condition of the local retirement system as of a date within 3 months prior to the effective date of membership in the Florida Retirement System. The statement shall be certified by a recognized accounting firm which is independent of the local retirement system.

(7) Referendum – The governing body of a municipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center which has an existing retirement system covering the employees in the units that are to be brought under the Florida Retirement System shall, prior to the municipalitycity, independent special district, metropolitan planning organization, public charter school or public charter technical career center being approved for participation in the Florida Retirement System may participate only after holding a referendum as provided in and in accordance with Section 121.051(2)(b)2., F.S.

(8) All required documents necessary for extending Florida Retirement System coverage shall be delivered to the Division of Retirement for consideration at least 15 days prior to the effective date of coverage. If this is not complied with, the Division of Retirement may require that the effective date of coverage be changed.

(9) The governing body of a municipalitycity or independent special district that participates in the Florida Retirement System may revoke its election to participate with an effective date of January 1, 1996, in accordance with the provisions of Section 121.0511, or 121.051(2)(b)5, F.A.C.

Rulemaking Authority 121.031 FS. Law Implemented 121.021(34), 121.051(2)(b), (3), 121.051, 121.0511 FS. History–New 1-1-72, Amended 12-31-74, 1-16-77, 8-26-81, 1-19-82, 11-6-84, Formerly 22B-1.07, Amended 5-19-91, Formerly 22B-1.007, Amended 3-12-96, 4-5-12,                            .

NAME OF PERSON ORIGINATING PROPOSED RULE: Garry Green, Operations and Management Consultant Manager, Department of Management Services, Division of Retirement
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Craig J. Nichols, Secretary, Department of Management Services
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: November 08, 2012
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: 10/19/2012, Vol., 38/54