60S-1.0075. Transfer, Merger, or Consolidation of Governmental Units, Services, or Functions

(1) The agency join, transfer, merger, or consolidation of governmental units, services, or functions, either at the state or local level or between levels of government, shall not result in the impairment or reduction in retirement benefits of any employee.

(2) Any Florida Retirement System (FRS) participating employer that undertakes the agency join, transfer, merger, or consolidation of governmental services or functions shall notify the Division of Retirement 60 days prior to such action. At the time the agency join, transfer, merger, or consolidation becomes effective, the agency shall provide:

(a) A copy of the official document that authorized the agency join, transfer, merger, or consolidation (e.g., agreement, resolution, ordinance, or statute);

(b) Certification of monthly service and earnings for all past service which newly enrolled members are eligible to claim in accordance with subsections 60S-2.003(3) and (6), F.A.C.; and

(c) A statement concerning each newly enrolled member’s eligibility for benefits from any local retirement system maintained by a governmental unit involved in the agency join, transfer, merger, or consolidation.

(3) When an agency join, transfer, merger, or consolidation results in an employee’s employing unit becoming a FRS participating employer, the following shall apply:

(a) If the employee is not a member of a local retirement system, the employee eligible for FRS membership shall be enrolled as a member of the FRS as of the effective date of the agency join, transfer, merger, or consolidation.

(b) If the employee is a member of a local retirement system, including a system established in accordance with chapter 175 or 185, F.S., the employee must elect in writing, as of the effective date of the agency join, transfer, merger, or consolidation, whether to remain in said local retirement system or transfer to the FRS.

1. If the employee elects to remain a member of the local system, such membership shall continue, except as provided in sub-subparagraph a., as long as the employee remains employed by the participating employer to which the employing unit was agency joined, transferred, merged, or consolidated.

a. If the member retires from the local system and remains employed or is reemployed with the same employer, the employee eligible for FRS membership shall be enrolled as a member, provided credit is no longer accruing toward a benefit under said local system, except that members of a local retirement system, whose employer becomes covered under the FRS due to agency join, transfer, merger or consolidation, and those employees participating in a Deferred Retirement Option Program of the local retirement plan are considered temporary employees under the FRS until the employee’s Deferred Retirement Option Program participation is completed.

b. If an employee covered under this subparagraph who rejected the opportunity to transfer to the FRS upon the agency join, transfer, merger, or consolidation subsequently becomes a member of the FRS, the member may claim rejected past service at total actuarial cost as provided in subsections 60S-2.003(3) and (6), F.A.C.

2. If the employee elects to become a member of the FRS at the time of the agency join, transfer, merger, or consolidation, the member may claim past service as creditable service under the FRS in accordance with subsections 60S-2.003(3) and (6), F.A.C.

(4) When an agency join, transfer, merger, or consolidation results in a member’s employing unit ceasing to be a FRS participating employer, the following shall apply:

(a) If the governmental unit, service, or function to which the member’s employing unit is agency joined, transferred, merged, or consolidated operates, maintains, or participates in a local retirement system, such member must elect in writing, as of the effective date of the agency join, transfer, merger, or consolidation, whether to remain in the FRS or transfer to the local retirement system.

(b) If the governmental unit, service, or function to which the member’s employing unit is agency joined, transferred, merged, or consolidated does not operate, maintain, or participate in a local retirement system, such member shall continue membership in the FRS.

(c) If the member remains in the FRS, as provided in paragraph (a) or (b), membership shall continue as long as the member is employed by the agency to which the unit was agency joined, transferred, merged, or consolidated.

(5) Any officer or employee of the consolidated or interim governments of Jacksonville, Florida who was enrolled in the FRS or a state retirement system administered under chapter 121, F.S., as of May 15, 1976, regardless of the fact that such consolidated or interim governments did not qualify as “employers” as defined in rule 60S-6.001, F.A.C., shall be deemed to have been a member of the retirement system in which the employee was enrolled during the period of such enrollment and employment by the consolidated or interim governments, subject to the following conditions:

(a) Such membership shall continue as long as the member remains an officer or employee of the consolidated or interim governments of Jacksonville, Florida.

(b) The member shall not have received a refund of employee contributions. If the member has received a refund of employee contributions or if a refund is received in the future, participation in the state retirement system shall cease with the date of the refund.

(c) Credit shall not be granted for service in such employment for any service prior to May 15, 1976 for which contributions were not paid as of May 15, 1976.

(6) “Agency join” occurs when an agency chooses to participate in the FRS as defined in section 121.051(2)(b), F.S.

Rulemaking Authority 121.031 FS. Law Implemented 112.0515, 121.011, 121.081 FS. History–New 5-15-91, Formerly 22B-1.0075, Amended 12-30-14, 6-28-18.