To amend the rules of the Division of Retirement to correspond with statutory changes up through the 2012 Legislative session; remove duplicative sentence from rule, expound upon power of attorney agent designation procedure, make one technical ...

 

DEPARTMENT OF MANAGEMENT SERVICES
Division of Retirement

RULE NO.: RULE TITLE:
60S-4.002: Statements of Policy
60S-4.003: Retirement Eligibility
60S-4.004: Benefits Payable Upon Normal Retirement
60S-4.005: Benefits Payable Upon Early Retirement
60S-4.006: Benefits Based on Dual Retirement Ages
60S-4.009: Benefits Payable After Termination
60S-4.012: Employment After Retirement
60S-4.013: Cost-of-Living Adjustments
60S-4.015: Deductions from Monthly Benefits
60S-4.020: Retiree Health Insurance Subsidy
PURPOSE AND EFFECT: To amend the rules of the Division of Retirement to correspond with statutory changes up through the 2012 Legislative session; remove duplicative sentence from rule, expound upon power of attorney agent designation procedure, make one technical correction to rule, and to incorporate by reference two revised division forms and one revised State Board of Administration form.
SUMMARY: The amendments set forth removes a redundant sentence from rule; expands upon the procedure for power of attorney agent to require the agent to also submit and complete an affidavit in accordance with section 709.2119, F.S.; updates rules to coincide with statutory changes resulting from chapter law 2011-68, which redefined the terms “average final compensation,” “normal retirement date,” and “vesting” for members initially enrolled on or after July 1, 2011, and also redefined “termination” and changed the Cost-of-Living Adjustments on retirements effective after July 1, 2011. In addition, the amendments set forth updates the request for refund of employee contributions procedure incorporating by reference one new division form; updates deductions that may be made from monthly benefits to include health insurance premiums from the State Group Health Insurance plan and removes the requirement that deductions from monthly benefits must be authorized in writing as such authorization may be done electronically or through PeopleFirst and updates the name of the trust fund for the State Group Insurance Plan.
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 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: 112.363(7), 121.031, 121.031(1), (2), 121.052(14), 121.091, 121.091(14), 121.30(9), 121.1001(4) FS.
LAW IMPLEMENTED: 61.1301, 112.363, 121.021, 121.021(30), 121.031, 121.046 (4), 121.051, 121.052, 121.052 (2), (3), (5), 121.052(5)(c), 121.053, 121.055, 121.091, 121.091(1), (2), (3), (9), 121.101, 121.133, 121.23, 121.30, 222.21, 238.181 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-4.002 Statements of Policy.

(1) - (8) No change.

(9) To ensure the removal of names of deceased retirees or beneficiaries from the benefit payroll, the Division shall, at least once each year, conduct an audit of the benefit payroll to determine that the persons to whom benefits are being paid are still living. The Division shall suspend the benefits payable to any retiree or beneficiary not confirmed to be living. The benefit payment recipient may be sent Form SAPS (Rev. 10/02), http://www.flrules.org/Gateway/reference.asp?No=Ref-00370, Florida Retirement System Statement Attesting to Payee Status, or Form AAPS (Rev. 08/00), http://www.flrules.org/Gateway/reference.asp?No=Ref-00344, Florida Retirement System Pension Plan Affidavit Attesting to Payee Status, both of which are herein incorporated by reference, and require the still living benefit payee recipient to sign and return the form to the Division. These forms may also be obtained by calling the Division’s Survivor Benefits Section Toll Free at [phone], if calling from outside the Tallahassee calling area or locally at [phone]. Individuals with a hearing or speech impairment may call the Division via T.D.D. at the Florida Relay System by dialing 711 or [phone]. The Division shall suspend the benefits payable to any retiree or beneficiary not confirmed to be living.

(10) - (11) No change.

(12) A member or payee may designate an attorney in fact agent to handle his or her affairs by properly executing a power of attorney in accordance with chapter 709, F.S. To establish a power of attorney with the Division, a copy of the original power of attorney must be submitted with the member’s or payee’s signature properly witnessed, and must designate the authorized attorney in fact agent to act on his or her behalf. The document must clearly state the specified acts to be performed on behalf of the member or payee. The division also requires the agent to submit a propertly executed affidavit in accordance with section 709.2119, F.S. Upon receipt of the properly executed power of attorney and affidavit, the division will determine if the power of attorney document clearly specifies the acts required for payment of pension benefits. The division will notify the payee and the agent of its determination. A power of attorney may be revoked by either written notification from the member or payee, death of the member or payee, or acts deemed to be inconsistent with authority. Once a power of attorney has been filed with the Division, the Division must be notified if the power of attorney is ever revoked.

(13) - (14) No change.

Rulemaking Authority 121.031(1), 121.052(14), 121.091, 121.091(14), 121.30(9), 121.1001(4) FS. Law Implemented 121.021, 121.051, 121.052 121.053, 121.055, 121.091, 121.23, 121.133, 121.30 FS. History–New 1-1-72, Amended 10-20-72, Repromulgated 12-20-74, Amended 12-31-74, 1-16-77, 7-1-79, 12-22-80, 8-26-81, 2-6-84, 11-6-84, 4-17-85, Formerly 22-2.02, Amended 2-4-86, 3-11-87, 9-5-90, Formerly 22-B-2.002, Amended 2-24-99, 8-13-03, 4-5-12,                            .

 

60S-4.003 Retirement Eligibility.

(1) An FRS Pension Plan member shall be eligible to receive a retirement benefit based on age and service provided:

(a) He or she terminates all employment with all employers participating in the Florida Retirement System as provided in Rule 60S-6.001, F.A.C., (termination) or subsection (3) of this Rule, except as provided in subsection 60S-4.012(8), F.A.C., and

(b) He or she satisfies vesting requirements by completing creditable service as follows:

1. Eight years of creditable service for members initially enrolled in the FRS on or after July 1, 2011.

21. Six years of creditable service for members initially enrolled in the FRS prior to July 1, 2011, subject to the following:

a. A member who is employed in a covered position on July 1, 2001 or a new member who begins employment in a covered position betweenon or after July 1, 2001 and June 30, 2011, shall satisfy the vesting requirement for retirement eligibility upon completion of a total of 6 years of creditable service in any membership class;

b. A member with service before July 1, 2001 who is not employed on July 1, 2001 must be employed in a regularly established position for one work year after that date to become eligible for 6-year vesting as provided in sub-subparagraph a. However, when such member completes the vesting requirements in sub-subparagraphs 60S-4.003(1)(b)3.2.a.-c., F.A.C., prior to completing the one work year, such member shall be vested.

32. Any member initially enrolled in the FRS prior to July 1, 2001, who does not satisfy the requirement of sub-subparagraph 2.1. a. or b. shall remain subject to the following vesting requirements:

a. – c.No change.

(c) He or she attains one of the following:

1. Normal retirement age with benefits payable according to Rule 60S-4.004, F.A.C., as follows:

a. If initially enrolled in the FRS prior to July 1, 2011, heHe or she has completed 30 years of creditable service, regardless of age; (all creditable service, including military service is applicable); or

b. If initially enrolled in the FRS on or after July 1, 2011, he or she has completed 33 years of creditable service, regardless of age; (all creditable service, including military service is applicable); or

cb. If initially enrolled in the FRS prior to July 1, 2011, allAll of his or her creditable service is in the Regular Class, the Elected Officers’ Class, and/or the Senior Management Service Class, and he or she has reached age 62; or

d. If initially enrolled in the FRS on or after July 1, 2011, all of his or her creditable service is in the Regular Class, the Elected Officers’ Class, and/or the Senior Management Service Class, and he or she has reached age 65; or

ec. All of his or her creditable service is Special Risk Class service or a combination of Special Risk Class service and Special Risk Administrative Support Class service, State and County Officers and Employees’ Retirement System high-hazard service, Highway Patrol Pension System service, or service as provided in Rule 60S-2.0041, F.A.C., and:

(I) He or she has satisfied vesting requirements in paragraph (b) but:

(A) If initially enrolled in the FRS prior to July 1, 2011, has completed less than 25 years of such creditable service and has reached age 55; or

(B) If initially enrolled in the FRS on or after July 1, 2011, has completed less than 30 years of such creditable service and has reached age 60; or

(II) He or she has completed 25 years of such creditable service that includes credit for military service, and:

(A) If initially enrolled in the FRS prior to July 1 , 2011, has completed 25 years of such service and has reached age 52; or

(B) If initially enrolled in the FRS on or after July 1 , 2011, has completed 30 years of such service and has reached age 57; or

(III) Regardless He or she has completed 25 years of such creditable service, regardless of age:.

(A) If initially enrolled in the FRS prior to July 1, 2011, he or she has completed 25 years of such creditable service; or

(B) If initially enrolled in the FRS on or after July 1, 2011, he or she has completed 30 years of such creditable service.

2. Early retirement age with benefits payable in accordance with Rule 60S-4.005, F.A.C., as follows:

a. All of his or her creditable service is in the Regular Class, the Elected Officers’ Class, and/or the Senior Management Service Class and:

(I) If initially enrolled in the FRS prior to July 1, 2011, he or she has neither reached age 62, nor completed 30 years of service; or

(II) If initially enrolled in the FRS on or after July 1, 2011, he or she has neither reached age 65, nor completed 33 years of service; or

b. All of his or her creditable service is in the Special Risk Class or in a combination of the Special Risk Class and the Special Risk Administrative Support Class, the State and County Officers and Employees’ Retirement System High-Hazard service, the Highway Patrol Pension System, or service as provided in Rule 60S-2.0041, F.A.C., and:

(I) He or she has satisfied vesting requirements in paragraph (b) but:

(A) If initially enrolled in the FRS prior to July 1, 2011, has completed less than 25 years of such creditable service and has not reached age 55;, or

(B) If initially enrolled in the FRS on or after July 1, 2011, has completed less than 30 years of such creditable service and has not reached age 60; or

(II) He or she has completed 25 years of such creditable service that includes credit for military service, but:

(A) If intially enrolled in the FRS prior to July 1, 2011, has completed 25 years of such service, but has not reached age 52; or.

(B) If intially enrolled in the FRS on or after July 1, 2011, has completed 30 years of such service, but has not reached age 57.

3. Dual retirement ages with benefits payable in accordance with Rule 60S-4.006, F.A.C., when he or she has creditable service as a Regular Class, Elected Officers’ Class or Senior Management Service Class member; and as a Special Risk Class member, or a Special Risk Class member with high-hazard or Highway Patrol service.

(2) A member who becomes totally and permanently disabled may be eligible for a disability retirement benefit in accordance with Rule 60S-4.007, F.A.C.

(3) - (5) No change.

Rulemaking Authority 121.031, 121.052(14) FS. Law Implemented 121.021, 121.052(2), (3), 121.055 FS. History–New 1-1-72, Amended 10-20-72, Repromulgated 12-31-74, Amended 7-1-79, 9-9-82, 2-6-84, Formerly 22B-4.03, Amended 2-4-86, 1-12-87, 9-5-90, 11-14-91, Formerly 22B-4.003, Amended 3-18-93, 1-25-94, 8-13-03, 4-5-12,                            .

 

60S-4.004 Benefits Payable Upon Normal Retirement.

(1) The maximum normal monthly retirement benefit for a member who retires with creditable service only under the Florida Retirement System shall be calculated by multiplying the years of service times the percentage value per year of service times the average final compensation, and dividing the product by 12, as follows:

(a) For a member who has creditable service only as a Regular Class member:

Normal Monthly Benefit =A × B × AFC

12

Where:

If initially enrolled in the FRS prior to July 1, 2011, A is –

1.60% at age 62

1.63% at age 63

1.65% at age 64

1.68% at age 65

or over, not to exceed 1.68% Or

1.60% with 30 years of creditable service

1.63% with 31 years of creditable service

1.65% with 32 years of creditable service

1.68% with 33 years of creditable service or more, not to exceed 1.68%

If initially enrolled in the FRS on or after July 1, 2011, A is -

1.60% at age 65

1.63% at age 66

1.65% at age 67

1.68% at age 68

or over, not to exceed 1.68% Or

1.60% with 33 years of creditable service

1.63% with 34 years of creditable service

1.65% with 35 years of creditable service

1.68% with 36 years of creditable service or more, not to exceed 1.68%

B is – The sum of all complete years and fractions of a year of creditable Regular Class service under the Florida Retirement System.

AFC (Average Final Compensation) is – If initially enrolled in the FRS prior to July 1, 2011, the The average annual compensation of the 5 highest years of compensation of creditable service prior to retirement, termination or death. If initially enrolled in the FRS on or after July 1, 2011, the AFC is the average annual compensation of the 8 highest years of compensation of creditable service prior to retirement, termination or death.

Average Final Compensation shall be figured in the following manner:

1. - 2. No change.

3.a. If initially enrolled in the FRS prior to July 1, 2011, totalTotal the actual salary received for the highest 5 years. If the highest 5 fiscal years do not constitute 5 complete years of creditable service, add the necessary percentage of the next highest fiscal years’ salaries to complete 5 years of creditable service.

b. If initially enrolled in the FRS on or after July 1, 2011, total the actual salary received for the highest 8 years. If the highest 8 fiscal years do not constitute 8 complete years of creditable service, add the necessary percentage of the next highest fiscal years’ salaries to complete 8 years of creditable service.

4. The average final compensation shall be the annual average of the total obtained in 3.

(b) For a member who has creditable service only as a Special Risk Class member:

Normal Monthly Benefit =

(Product of Ai × Bi ) × AFC , as i varies from 1 to 6

12              

Where Ai corresponds to Bi as follows:

A1 is – 2% at any age.

B1 is – The sum of all complete years and fractions of a year of creditable Special Risk Class service under the Florida Retirement System prior to October 1, 1974 and all creditable Special Risk Class service performed October 1, 1978 through December 31, 1988.

A2 is – 3% at any age.

B2 is – The sum of all complete years and fractions of a year of creditable Special Risk Class service under the Florida Retirement System October 1, 1974 through September 30, 1978 and all creditable Special Risk Class service performed on and after January 1, 1993; and for Special Risk Class members who retire on or after July 1, 2000, all creditable Special Risk Class service performed on and after October 1, 1974.

A3 is – 2.2% at any age.

B3 is – The sum of the complete year or fraction of the year of creditable Special Risk Class service under the Florida Retirement System January 1, 1989 through December 31, 1989.

A4 is – 2.4% at any age.

B4 is – The sum of the complete year or fraction of the year of creditable Special Risk Class service under the Florida Retirement System January 1, 1990 through December 31, 1990.

A5 is – 2.6% at any age.

B5 is – The sum of the complete year or fraction of the year of creditable Special Risk Class service under the Florida Retirement System January 1, 1991 through December 31, 1991.

A6 is – 2.8% at any age.

B6 is – The sum of the complete year or fraction of the year of creditable Special Risk Class service under the Florida Retirement System January 1, 1992 through December 31, 1992.

AFC (Average Final Compensation) is – Computed the same as in paragraph 60S-4.004(1)(a), F.A.C.

(c) - (e) No change.

(2) No change.

Rulemaking Authority 121.031 FS. Law Implemented 121.021, 121.052, 121.055, 121.091(1) FS. History–New 1-1-72, Amended 10-20-72, 12-31-74, 7-1-79, 2-6-84, 4-17-85, Formerly 22B-4.04, Amended 1-12-87, 2-7-89, 9-5-90, 5-15-91, Formerly 22B-4.004, Amended 8-13-03, 4-5-12,                            .

 

60S-4.005 Benefits Payable Upon Early Retirement.

(1) No change.

(2)(a) The maximum early retirement benefit for FRS Pension Plan member shall be calculated as follows:

1. Compute the normal benefit in accordance with Rule 60S-4.004, F.A.C.

2. This normal retirement benefit is multiplied by the applicable early retirement factor found in the Early Retirement Factors table in Rule 60S-7.003, F.A.C., to determine the maximum early retirement benefit.

a. If initially enrolled in the FRS prior to July 1, 2011, the The early retirement factor shall be selected by determining the number of complete months that the member’s early retirement date precedes his or her normal retirement age of 62 for a Regular Class member, Elected Officers’ Class member or Senior Management Service Class member, and age 55 for a Special Risk Class member.

b. If initially enrolled in the FRS on or after July 1, 2011, the early retirement factor shall be selected by determining the number of complete months that the member’s early retirement date precedes his or her normal retirement age of 65 for a Regular Class member, Elected Officers’ Class member or Senior Management Service Class member, and age 60 for a Special Risk Class member.

3. Notwithstanding the above, if:

a. The the employment of a member initially enrolled prior to July 1, 2011, is terminated by reason of death after the completion of 20 years of creditable service, the monthly benefit payable to the member’s beneficiary shall be calculated in accordance with Rule 60S-4.004, F.A.C., but based on the average monthly compensation and creditable service as of the date of death. The benefit computed shall be reduced by five-twelfths of 1 percent of each complete month by which death precedes normal retirement age or the date on which the member would have attained 30 years of creditable service had he or she survived and continued his or her employment, whichever provides a higher benefit; or. This paragraph shall not apply to a member who dies after he or she has terminated employment.

b. The employment of a member initially enrolled on or after July 1, 2011, is terminated by reason of death after the completion of 23 years of creditable service, the monthly benefit payable to the member’s beneficiary shall be calculated in accordance with Rule 60S-4.004, F.A.C., but based on the average monthly compensation and creditable service as of the date of death. The benefit computed shall be reduced by five-twelfths of 1 percent of each complete month by which death precedes normal retirement age or the date on which the member would have attained 33 years of creditable service had he or she survived and continued his or her employment, whichever provides a higher benefit.

c. This subparagraph shall not apply to a member who dies after he or she has terminated employment.

(b) - (c) No change.

Rulemaking Authority 121.031, 121.052(14) FS. Law Implemented 121.021(30), 121.091(3), 121.052(5), 121.055 FS. History–New 1-1-72, Amended 10-20-72, Repromulgated 12-31-74, Amended 8-26-81, Formerly 22B-4.05, Amended 1-12-87, Formerly 22B-4.005, Amended 12-12-96, 8-13-03, 4-5-12,                            .

 

60S-4.006 Benefits Based on Dual Retirement Ages.

(1) No change.

(2) An FRS Pension Plan member shall be eligible to receive a benefit based on dual retirement ages equal to the normal benefit for his or her Regular Class, Elected Officers’ Class, or Senior Management Service Class service as calculated in accordance with paragraph 60S-4.004(1)(a), (c) or (d), F.A.C., and the normal benefit for his or her Special Risk Class service as calculated in accordance with paragraph 60S-4.004(1)(b), F.A.C., if he or she has satisfied the service requirements for vesting as provided in paragraph 60S-4.003(1)(b), F.A.C., and has attained normal retirement age as follows:

(a) If initially enrolled in the FRS prior to July 1, 2011, he He or she has either reached age 62 or has completed 30 years of creditable service, regardless of age; or

(b) If initially enrolled in the FRS on or after July 1, 2011, he He or she has either reached age 65 or has completed 33 30 years of creditable service, regardless of age.

(3) An FRS Pension Plan member shall be eligible to receive a benefit based on dual retirement ages equal to the sum of the early benefit for his or her Regular Class, Elected Officers’ Class, or Senior Management Service Class service as calculated in accordance with Rule 60S-4.005, F.A.C., and the normal benefit for his or her Special Risk Class service as calculated in accordance with paragraph 60S-4.004(1)(b), F.A.C., if he or she has satisfied the service requirements for vesting as provided in paragraph 60S-4.003(1)(b), F.A.C., and has not attained normal retirement age as listed in paragraphs 60S-4.006(2)(a) and (b), F.A.C., but has attained normal Special Risk Class retirement age as follows:

(a) If initially enrolled in the FRS prior to July 1, 2011, he He or she has either reached age 55 or has completed 25 years of creditable service that includes credit for military service, and has reached age 52; or

(b) If initially enrolled in the FRS on or after July 1, 2011, he or she has either reached age 60 or has completed 30 years of creditable service that includes credit for military service, and has reached age 57; or

(c) If initially enrolled in the FRS prior to July 1, 2011, he He or she has completed 25 years of creditable service, regardless of age.; or

(d) If initially enrolled in the FRS on or after July 1, 2011, he or she has completed 30 years of creditable service, regardless of age.

(4) No change.

Rulemaking Authority 121.031, 121.052(14) FS. Law Implemented 121.021, 121.052(5), 121.055,121.091(2) FS. History–New 1-1-72, Amended 10-20-72, Repromulgated 12-31-74, Amended 7-1-79, Formerly 22B-4.06, Amended 1-12-87, Formerly 22B-4.006, Amended 1-25-94, 8-13-03, 4-5-12,                            .

 

60S-4.009 Benefits Payable After Termination.

(1) - (2) No change.

(3) In order to receive a refund of contributions under the Florida Retirement System, an FRS a member must terminate all employment relationships with all FRS participating employers for three calendar months as provided in section 121.021(39)(c), F.S, as provided in the definition of termination in Rule 60S-6.001, F.A.C., and submit a request for refund on Form FRS-M81 (Rev. 05/11), http://www.flrules.org/Gateway/reference.asp?No=Ref-00358, Florida Retirement System Pension Plan Request for Refund, herein adopted by reference, to the division.Administrator through his or her employer, containing a certification by his or her employer of his or her termination of employment. Form FRS-M81 may be completed and submitted online from the Refund Application page of the member’s Online Services account accessible from the Division’s website (www.frs.MyFlorida.com) or may be obtained from the Forms page of the Division’s website, www.http://frs.MyFlorida.com, or by calling the Division’s DROP Termination and Refund Payment Section 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]. The division shall acknowledge the receipt of the FRS-M81 and send the member Form REF-PAYT (05/11) https://www.flrules.org/Gateway/reference.asp?No=Ref-01937, Florida Retirement System (FRS) Pension Plan Refund Payout Selection, herein adopted by reference, which may be obtained by calling the Division’s DROP Termination and Refund Payment Section 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]. The member shall complete and return Form REF-PAYT to the division, indicating his or her refund payout selection. By obtaining a refund of contributions a member waives all rights under the Florida Retirement System to the service credit represented by the refunded contributions, except the right to purchase his or her prior service credit in accordance with Rule 60S-2.004, F.A.C. No refund of employee contributions shall be made until the employer has reported the employee’s termination through the payroll reporting process.

(4) - (5) No change.

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

 

60S-4.012 Employment After Retirement.

(1) No change.

(2) The following reemployment limitations shall apply to any retiree of a state-administered retirement system who is reemployed by a Florida Retirement System employer in either a regularly established position or a temporary position, during the first 12 calendar months of retirement. For service retirements without DROP participation this 12 calendar month reemployment limitation period shall commence the month of the retiree’s effective date of retirement. For DROP participants such reemployment limitation period shall apply and commence in the calendar month following the participant’s DROP termination date. Any person employed in violation of any of the limitations in this section, and any employing agency which knowingly employs or appoints such person without notifying the Division to suspend retirement benefits shall be jointly and severally liable for reimbursement to the retirement trust fund of any benefits paid during the reemployment limitation period. Such employing agency shall have a written statement from the retiree that he or she is not retired from a state-administered retirement system or may use the State Board of Administration Form CERT (Rev. 02/201206/2011) http://www.flrules.org/Gateway/reference.asp?No=Ref-01935http://www.flrules.org/Gateway/reference.asp?No=Ref-00345, Florida Retirement System (FRS) – Certification Form, created for such purpose and herein adopted by reference, which may be obtained from the Employer page of the Division’s website, www.http://frs.MyFlorida.com, or by calling the Division’s Bureau of Retirement Calculations Toll Free at 1 [phone], if calling from outside the Tallahassee calling area or locally at [phone], or if hearing of speech impaired by calling the Division via T.D.D. at the Florida Relay System by dialing 711 or 1(800)955-8771.

(a) No change.

(b)1. – 2. No change.

3. If a retiree is reemployed during the calendars months of the reemployment limitation period applicable to his or her effective retirement date or DROP termination date as provided in sub paragraphs 1., or 2., above, he or she shall:

a. Notify the Division in writing of such employment and have his or her benefits suspended effective the first day of the first month of reemployment which may be done utilizing Form FR-23 (Rev. 07/10), http://www.flrules.org/Gateway/reference.asp?No=Ref-00355, Florida Retirement System Pension Plan Notification of Reemployment for Suspension of Retirement Benefits, herein adopted by reference, which may be obtained from the Forms page of the Division’s website, www.http://frs.MyFlorida.com, or by calling the Division’s Bureau of Retirement Calculations Toll Free at [phone], if calling from outside the Tallahassee calling area or locally at [phone]. Individuals with a hearing or speech impairment may call the Division via T.D.D. at the Florida Relay System by dialing 711 or [phone]. This suspension shall remain in effect for the balance of the reemployment limitation period or for every month of the reemployment limitation period in which he or she is employed, and benefits that would have been paid during the period of suspension are forfeited;

b. No change.

c. Upon expiration of the reemployment limitation period or upon termination of employment prior to expiration of the reemployment limitation period, notify the Division in writing that his or her reemployment limitation period has been completed or that he or she is no longer employed and desires to have his or her benefits reinstated which may be done utilizing Form FR-23a (Rev. 05/05), http://www.flrules.org/Gateway/reference.asp?No=Ref-00356, Florida Retirement System Pension Plan Application to Reactivate Retirement Benefits, herein adopted by reference, which may be obtained from the Forms page of the Division’s website, www.http://frs.MyFlorida.com, or by calling the Division’s Bureau of Retirement Calculations Toll Free at [phone], if calling from outside the Tallahassee calling area or locally at [phone]. Individuals with a hearing or speech impairment may call the Division via T.D.D. at the Florida Relay System by dialing 711 or [phone]. Upon verification by his or her employer, his or her retirement benefits will then be reinstated effective the first day of the month following termination of employment or expiration of the reemployment limitation period;

4. No change.

(c) No change.

(3) - (9) No change.

Rulemaking Authority 121.031 FS. Law Implemented 121.021, 121.053, 121.091(9), 121.046(4), 238.181 FS. History–New 1-1-72, Amended 10-20-72, Repromulgated 12-31-74, Amended 7-1-79, 8-26-81, 9-9-82, 10-11-82, 11-6-84, 4-17-85, 9-24-85, Formerly 22B-4.12, Amended 3-11-87, 2-7-89, 9-5-90, 11-14-91, 9-8-92, Formerly 22B-4.012, Amended 3-18-93, 4-5-95, 12-12-96, 2-24-99, 8-13-03, 4-5-12,                            .

 

60S-4.013 Cost-of-Living Adjustments.

(1) Effective July 1, 1980, and each July 1 thereafter, a cost-of-living adjustment in retirement benefits shall be made to the benefits of all retired members or the annuitants of retired members of state-supported systems in accordance with Chapter 121.101 F.S.

(2) The amount of adjustment, which shall be added to the member’s or annuitant’s benefit, shall be computed as follows:

(a) For members who have previously received such adjustment – The benefit effective immediately preceding the adjustment, excluding the health insurance subsidy, shall be multiplied by 3 percent.

(b) For members who have never received such adjustment – The initial benefit (as defined in Rule 60S-6.001, F.A.C.) shall be multiplied by a percentage equal to three times the number of months the member has received a benefit, divided by twelve. If the member elected a benefit payment option which provided for a percentage of the benefit to be continued to the member or a beneficiary after the death of either, the initial benefit shall be adjusted, upon such a death, in accordance with the provisions of the option, and the cost of living adjustment under this paragraph shall be based on such adjusted initial benefit.

(3) In no case shall a person’s benefit be reduced below the minimum benefit as provided in Rule 60S-4.0025, F.A.C., as a result of this cost-of-living adjustment.

Rulemaking Authority 121.031 FS. Law Implemented 121.101 FS. History–New 1-1-72, Amended 12-31-74, 7-1-79, 1-19-82, Formerly 22B-4.13, Amended 5-18-88, Formerly 22B-4.013, Amended 12-12-96,                            .

 

60S-4.015 Deductions from Monthly Benefits.

Subject to approval by the Division, a payee (retiree or beneficiary) receiving retirement benefits under the Florida Retirement System, State and County Officers’ and Employees’ Retirement System and the Teachers’ Retirement System may have certain payments deducted from his or her monthly benefit as follows:

(1) - (2) No change.

(3) Life insurance premiums for the State Group Life Insurance Plan and health insurance premiums for the State Group Health Insurance Plan may be deducted, provided deductions are authorized in writing by the payee and the Division of State Group Insurance or its designated agent.

(4) Repayment of overpayments from the Florida Retirement System Trust Fund or the State Employees’ Group Health Self-Insurance Trust Fund may be deducted upon notification to the payee by the Division of Retirement or the Division of State Group Insurance.

(5) - (6) No change.

Rulemaking Authority 121.031 FS. Law Implemented 61.1301, 121.031, 222.21 FS. History–New 1-1-72, Amended 10-20-72, Repromulgated 12-31-74, Formerly 22B-4.15, Amended 5-15-91, Formerly 22B-4.015, Amended 8-4-94, 8-13-03, 4-5-12,                            .

 

60S-4.020 Retiree Health Insurance Subsidy.

(1) No change

(2) Eligible retired members or beneficiaries must make application to the Division for the Health Insurance Susbsidy and certify their health insurance coverage in accordance with procedures established by the Division in order to receive the Health Insurance Subsidy. FRS Pension Plan retirees or beneficiaries shall make application and certify their health insurance coverage to the Division on Form HIS-1 (Rev. 07/05) http://www.flrules.org/Gateway/reference.asp?No=Ref-00403, Florida Retirement System Pension Plan Health Insurance Susbsidy Certification Form, herein adopted by reference, which is mailed to the FRS Pension Retiree’s address of record when placed on retired payroll and may also be obtained from the Forms page of the Division’s website, www.http://frs.MyFlorida.com, or by calling the Division’s Retired Payroll Section 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]. FRS Investment Plan retirees or beneficiaries shall make application to the Division for the Health Insurance Subsidy on Form HIS-IP (Rev. 03/1210/11) http://www.flrules.org/Gateway/reference.asp?No=Ref-01936http://www.flrules.org/Gateway/reference.asp?No=Ref-00404, Florida Retirement System (FRS) Application for Health Insurance Subsidy for Investment Plan Members, herein adopted by reference, and shall certify their health insurance coverage to the Division on Form HIS-IP-2 (Rev. 10/11) http://www.flrules.org/Gateway/reference.asp?No=Ref-00405, Florida Retirement System (FRS) Health Insurance Subsidy Certification for Investment Plan Members, herein adopted by reference. Both of these forms may be obtained from the Forms page of the Division’s website, www.http://frs.MyFlorida.com, or by calling the Division’s Bureau of Retirement Calculations 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]. If the Division receives such application and certification of health insurance coverage within 6 months after retirement FRS benefits commence, the Retiree Health Insurance Subsidy may be paid retroactive up to the effective retirement date. If the Division receives the certification of insurance coverage 6 or more months after retirement benefits commence, the member will be eligible to receive retroactive payments for a maximum of 6 months only. Retroactive Retiree Health Insurance Subsidy benefits can only be paid for the months of certified health insurance coverage.

(3) No change.

Rulemaking Authority 112.363(7), 121.031(2) FS. Law Implemented 112.363 FS. History–New 5-18-88, Amended 11-14-91, Formerly 22B-4.020, Amended 3-18-93, 2-24-99, 4-17-12,                            .

NAME OF PERSON ORIGINATING PROPOSED RULE: Sarabeth Snuggs, Retirement Director
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Craig J. Nichols, Secretary
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: November 08, 2012
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: October 19, 2012, Vol. 38/54