60S-4.010. Retirement Benefit Payment Options

(1) Prior to the receipt of his or her first monthly benefit payment, an FRS Pension Plan member who is eligible for a retirement benefit computed in accordance with Rule 60S-4.004, 60S-4.005, or 60S-4.006, F.A.C., shall select one of the four optional forms of payment of such benefits, as provided in paragraphs (a), (b), (c), or (d) below, on Form FRS-11o (Rev 12/15), http://www.flrules.org/Gateway/reference.asp?No=Ref-06122, Florida Retirement System Pension Plan Option Selection for FRS Members,” herein adopted by reference, which also requires such member to attest to his or her marital status on Form SA-1 (Rev. 01/10), http://www.flrules.org/Gateway/reference.asp?No=Ref-00368, Florida Retirement System Spousal Acknowledgment Form, herein adopted by reference. Both these forms may be obtained from the Forms page of the Division’s website, www.frs.MyFlorida.com, or by calling the Division 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]. A married member who selects option 1 under paragraph (a) or option 2 under paragraph (b) shall notify his or her spouse of such option selection, and the spouse shall acknowledge any such option selection in accordance with subsection 60S-4.010(9), F.A.C. The four options are as follows:

(a) Option 1. The maximum retirement benefit payable to the member during his or her lifetime.

(b) Option 2. A retirement benefit payable during his or her lifetime and, in the event of his or her death within a period of 10 years after his or her retirement, the same monthly amount to be payable to his or her beneficiary for the balance of such 10-year period.

(c) Option 3. A retirement benefit which shall be payable during the joint lifetime of both the member and his or her joint annuitant and which shall continue after the death of either during the lifetime of the survivor in the same amount, except as provided in paragraph 60S-4.010(1)(e), F.A.C.

(d) Option 4. A retirement benefit payable during the joint lifetime of the member and his or her joint annuitant, and which shall continue after the death of either during the lifetime of the survivor in an amount equal to 66 2/3 percent of the amount which was payable during the joint lifetime of the member and his or her joint annuitant, except as provided in paragraph 60S-4.010(1)(e), F.A.C.

(e) A joint annuitant, as defined in paragraph 60S-6.001(36)(b), F.A.C., who is under age 25 or disabled will receive, upon the member’s death, the amount of the option 1 benefit determined under paragraph 60S-4.010(1)(a), F.A.C., only until such joint annuitant reaches age 25 unless he or she is disabled, in which case, the option 1 benefit amount will continue for the duration of the disability. The following shall apply to the payment of benefits under this paragraph:

1. A person designated as a joint annuitant who is over age 25 shall qualify as a disabled joint annuitant provided:

a. The person is totally and permanently disabled from performing gainful employment by reason of a medically determinable physical or mental impairment, and

b. The Division receives two Physician’s Reports, Form SB-13b (Rev. 03/01), http://www.flrules.org/Gateway/reference.asp?No=Ref-00371, Florida Retirement System Pension Plan Physician’s Report, herein adopted by reference, completed by two Florida licensed physicians attesting to the total and permanent disability of the person, and any other evidence of disability requested by the Administrator which may include reports from vocational rehabilitation, evaluation, or testing specialists who have evaluated the applicant for employment. Form SB-13b may be obtained by calling the Division 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].

2. Should the Administrator determine that such person has failed to demonstrate total and permanent disability, as provided in subparagraph 1. the following procedure shall be followed:

a. The person shall be notified by certified mail with return receipt requested. The notice shall include a summary of the factual, legal and policy grounds for the Administrator’s intended decision.

b. When a person receives notice that the Administrator intends to deny his or her application, he or she shall have 21 calendar days to present written evidence to the Administrator in opposition to the intended action or written objections challenging the grounds upon which the Administrator has based his or her intended decision.

c. If the Administrator overrules the objections of the person, he or she shall provide a written explanation to the person by certified mail with return receipt requested, giving the reasons for his or her decision and advising the person of his or her right of appeal under the law.

d. If the person does not accept the Administrator’s final decision on the merits, the person may request in writing an administrative hearing on his or her disability claim by filing within 21 calendar days from the date the annuitant receives notice of the Administrator’s final decision, a petition in accordance with Rule 28-106.201, F.A.C.

3. The Division of Retirement may conduct periodic reexaminations of joint annuitants who have been granted disability under this paragraph to determine whether or not such joint annuitants continue to meet the disability criteria applicable in their case. The following procedures shall govern such disability reexamination cases:

a. The Division will mail the joint annuitant forms FR-13e, “Florida Retirement System Retiree’s Report of Continuing Disability” and FR-13f, “Florida Retirement System Physician’s Report of Reexamination” adopted in Rule 60S-4.007, F.A.C. Such forms should be completed by the joint annuitant and his or her physician and returned to the Disability Determination Section within 60 days, unless an extension of time is requested and approved by the Division.

b. The Division will review the reports in subsection (a) and other available sources, such as, but not limited to, Workers' Compensation and Unemployment Compensation.

c. If the Division finds the joint annuitant continues to be disabled under the criteria used to determine the original disability, the joint annuitant will be notified in writing of the findings and conclusions, and further, that benefits will continue to be paid.

d. Based on the information obtained pursuant to the provisions of subparagraphs a. and b., if the Administrator finds the joint annuitant is no longer disabled under the criteria used to determine his or her original disability, the joint annuitant will be notified by certified mail of the initial findings and conclusions and that the Administrator intends to discontinue his or her benefit. The notice shall include a summary of the factual, legal and policy grounds for the intended decision.

e. When a joint annuitant receives notice that the Administrator intends to discontinue his or her benefits, he or she shall have 21 calendar days to present written evidence in opposition to the intended action or written objections challenging the grounds upon which the Administrator has based his or her intended decision. The joint annuitant may submit additional evidence or a written statement for reconsideration of the Division’s denial of benefits and his or her benefit will continue subject to reconsideration.

f. After reconsideration of the joint annuitant's file, including any additional evidence or written statement submitted by the joint annuitant or obtained by the Division, the Administrator shall provide a written final decision on the merits to the joint annuitant by certified mail giving the reasons for the decision and will notify the joint annuitant that his or her benefits will continue if he or she is found to be disabled or will terminate effective the first day of the following month if he or she is found to be not disabled.

g. If the joint annuitant does not accept the Administrator’s final decision on the merits, he or she may request in writing an administrative hearing on his or her disability claim by filing within 21 calendar days from the date he or she receives notice of the Administrator’s final decision, a petition in accordance with Rule 28-106.201, F.A.C.

4. A joint annuitant who is determined to be disabled under this paragraph, and subsequently recovers, shall notify the Division immediately to have his or her benefits discontinued.

(2) The benefits payable under Option 1 in this section shall be the amounts computed in accordance with Rule 60S-4.004, 60S-4.005, or 60S-4.006, F.A.C. The benefits payable under Options 2, 3, and 4 in this section shall be the actuarial equivalent of the amount to which the member is otherwise entitled under Option 1, based on the actuarial tables included in Chapter 60S-7, F.A.C.

(3) The benefits payable under Option 2 shall be calculated as follows:

(a) Determine the maximum retirement benefit for which the member is eligible under Option 1.

(b) Select the appropriate Option 2 factor from Rule 60S-7.009 or 60S-7.010, F.A.C., using the member’s age at date of retirement.

(c) Multiply the maximum retirement benefit obtained in paragraph (a) above by the actuarial factor obtained in paragraph (b) above to determine the benefit which the member shall receive.

(d) In the event of death of the recipient of an Option 2 benefit when an institution, a trust, or an estate is the beneficiary, the legal representative of such beneficiary may request a lump sum settlement of any monthly benefit payments remaining of the ten-year payment period. The lump sum shall represent the present value of the remaining unpaid installments adjusted for the time value of money. The Division shall notify the official representative of the institution, the trustee of the trust, or the executor, administrator or personal representative of the estate that by acceptance of the payment the Florida Retirement System is released from any claim against the retirement trust fund.

(4) The benefits payable under Options 3 or 4 shall be calculated as follows:

(a) Determine the maximum retirement benefit the member is eligible for under Option 1.

(b) Using the member’s age and the joint annuitant’s age at date of retirement, select the actuarial factor listed for the option selected by the member. The following exception exists, however, for any member who continues employment with a covered employer after becoming eligible to retire with an Option 1 benefit equal to 100% of his or her A. F. C. When the member retires, the actuarial factor shall be determined by the age of the member and that of his or her joint annuitant at the time the member became eligible for the benefit equal to 100% of his or her A. F. C.

(c) Multiply the maximum retirement benefit obtained in paragraph (a) above by the actuarial factor obtained in paragraph (b) above to determine the benefit which the member shall receive.

(d) The benefit of a member who chooses Option 3 and designates more than one joint annuitant, shall be the total of the portions of the benefit designated for each such joint annuitant, calculated based on the age of the member and the age of each joint annuitant for each separate percentage of the benefit.

(5) A member shall select an option for receiving benefits and may change such option selection until the time a benefit payment has been cashed or deposited. Thereafter, the member shall not be permitted to change the option he or she selected and, upon the member’s death, benefits shall be paid in accordance with such option selected.

(6) The following shall apply to the option selection of any member who dies prior to the time a benefit payment has been cashed or deposited:

(a) If the member should die prior to his or her effective date of retirement, as described in Rule 60S-4.0035, F.A.C., his or her employment will be considered to have been terminated by death (even if the death occurred after his or her last day of employment), his or her option selection shall be null and void, and benefits shall be payable in accordance with the provisions of Rule 60S-4.008, F.A.C. This paragraph shall not be construed to allow the benefit of a member who dies after he or she has terminated employment to be calculated according to the provisions of paragraph 60S-4.005(2)(c), F.A.C.

(b) If the member should die after his or her effective date of retirement, his or her employment will be considered to have been terminated by retirement, and benefits shall be payable in accordance with the retirement option selected as provided by this section, except as follows:

1. When the designated beneficiary qualifies as a joint annuitant benefits shall be payable in accordance with the provisions of Rule 60S-4.008, F.A.C.; or,

2. When the spouse is the designated beneficiary and the member had selected option 3, the spouse may elect to receive such option 3 benefit as of the member’s effective date of retirement in lieu of the benefits provided in Rule 60S-4.008, F.A.C.

(c) If the member should die after his or her effective date of retirement and without having selected an option, benefits shall be payable as follows:

1. If the member’s designated beneficiary does not qualify as a joint annuitant, benefits shall be paid under option 1, with any benefits due from his or her effective date of retirement through the month of death payable to the member’s estate.

2. If the member’s designated beneficiary qualifies as a joint annuitant, his or her previously established effective date of retirement shall be null and void and benefits shall be paid in accordance with the provisions of Rule 60S-4.008, F.A.C.

(7) If the member retires due to disability and dies after his or her effective date of retirement and prior to cashing or depositing a retirement benefit payment, benefits will be payable in accordance with the provisions of subsection 60S-4.010(6), F.A.C., except as follows:

(a) If the member had satisfied the service requirements for vesting and his or her designated beneficiary qualifies as a joint annuitant, the beneficiary may select a refund of member contributions, an Option 3 benefit under disability retirement as of the member’s effective date of retirement, or an Option 3 benefit under service retirement as provided in subsection 60S-4.008(3), F.A.C., with the member’s previously established effective date of retirement deemed null and void.

(b) If the member had not satisfied the service requirements for vesting, was approved for in-line-of-duty disability and his or her designated beneficiary was qualified as a joint annuitant, the beneficiary may select a refund of member contributions or an Option 3 benefit under disability retirement as of the member’s effective date of retirement.

(8) A member who selects Option 3 or 4 shall designate a joint annuitant to receive the benefits which continue to be payable upon his or her death. If, after benefits have commenced under Option 3 or 4, the retired member desires to change his or her designation of a joint annuitant, he or she may do so as follows:

(a) From October 1, 1979 through June 30, 1984, a retired member may change his or her designated joint annuitant only if his or her first designated joint annuitant is alive and can show evidence of good health as shall be substantiated by a statement from a Florida licensed physician. A member desiring to change his or her designation shall file such change with the Division on Form JA-1, effective 07/16, http://www.flrules.org/Gateway/reference.asp?No=Ref-07346, “Florida Retirement System Pension Plan Change of Joint Annuitant (Retired members only)” herein adopted by reference and which may be obtained by calling the Division 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 receipt of the completed form, the Division shall adjust the member’s monthly benefit in accordance with subparagraph 60S-4.010(8)(c)1., F.A.C. The consent of a retired member’s first designated joint annuitant to any such change shall not be required. The effective date of the change will be the first day of the month following receipt of the JA-1 form by the Division.

(b) Effective July 1, 1984, a retired member may change his or her designated joint annuitant twice during his or her retired life. A retired member desiring to change his or her designation shall file with the Division a Form JA-1,“Florida Retirement System Pension Plan Change of Joint Annuitant (Retired members only)” and notify, in writing, his or her former joint annuitant, if living, of such change.

Upon receipt of the completed form, the Division shall adjust the retired member’s monthly benefit in accordance with paragraph 60S-4.010(8)(c), F.A.C. The consent of a retired member’s first designated joint annuitant to any such change shall not be required. The effective date of the change will be the first day of the month following receipt of the JA-1 form by the Division, provided the member and the new joint annuitant are alive on that date. If the member and the new joint annuitant do not live until the effective date of the change, the change of joint annuitant will not take effect.

(c) The monthly benefit of a member who elects to change his or her designated joint annuitant shall be adjusted by the application of actuarial tables and calculations developed to ensure that the benefit paid is the actuarial equivalent of the present value of the member’s monthly benefit at the time of the joint annuitant change. The computation of such adjustment shall depend upon the status of the member’s current joint annuitant at the time of the joint annuitant change, and shall be calculated as follows:

1. If the member’s current joint annuitant is still living:

Adjusted monthly benefit = (A/B) × C

Where:

A is the member’s current monthly benefit.

B is the appropriate Option 3 or 4 factor from Chapter 60S-7, F.A.C., which was used to calculate the member’s current monthly benefit.

C is the appropriate Option 3 or 4 factor from Rule 60S-7.009 or 60S-7.010, F.A.C., based upon the current ages of the member and the new joint annuitant.

2. If the member’s current joint annuitant is not living:

Adjusted monthly benefit = A × B

Where:

A is the member’s current monthly benefit.

B is the appropriate Option 3 or 4 factor from Rule 60S-7.009 or 60S-7.010, F.A.C., based upon the current ages of the member and the new joint annuitant.

(d) In the event of the dissolution of marriage of a retired member and his or her designated joint annuitant, such member may, on or after June 17, 1998, elect to nullify the joint annuitant designation of the former spouse, unless there is an existing qualified domestic relations order preventing such action. The member must file with the Division a notarized statement of nullification on Form JA-NUL (Rev. 07/99), http://www.flrules.org/Gateway/reference.asp?No=Ref-00365, Florida Retirement System Pension Plan Joint Annuitant Nullification Form, herein adopted by reference and a copy of the divorce decree. Form JA-NUL may be obtained by calling the Division 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 nullification shall be effective on the first day of the next month following receipt by the Division of the properly completed form and a copy of the divorce decree. Benefits due the member shall be adjusted, if appropriate, and shall be paid as if the former spouse predeceased the member. A member who makes such an election may not reverse the nullification. Such nullification shall not count as a change of joint annuitant unless the member chooses to designate a new joint annuitant in accordance with paragraph (b) and subparagraph (c)2., in which case the member’s monthly benefit will be adjusted as though the member’s nullified joint annuitant is not living.

(9) A married member who selects option 1 as provided in paragraph 60S-4.010(1)(a), F.A.C., or option 2 as provided in paragraph 60S-4.010(1)(b), F.A.C., shall notify his or her spouse of such option selection, and the spouse shall acknowledge such option selection as follows:

(a) A member who selects option 1 or 2 shall be required to indicate if he or she is married or not married on Form SA-1, Florida Retirement System Spousal Acknowledgment Form, as adopted in Rule 60S-4.010, F.A.C. If the member is married, his or her spouse shall complete the spousal acknowledgment section of such form acknowledging that the member has selected option 1 or 2.

(b) If the Division does not receive a completed spousal acknowledgment of option selection, the Division will advise the member in writing that his or her benefits will not commence until:

1. Such completed spousal acknowledgment of option selection is received by the Division; or

2. It is established in writing to the satisfaction of the Division that the spouse cannot be located; or

3. In the case of refusal by the spouse to sign the spousal acknowledgment of option selection, the Division shall notify the spouse in writing of the option selection. Such notification shall constitute acknowledgment by the spouse of such selection.

(10) Prior to the receipt of his or her first monthly benefit payment, a State and County Officers’ and Employees’ Retirement System member who is eligible for a retirement benefit computed in accordance with Rule 60S-4.004, 60S-4.005 or 60S-4.006, F.A.C., shall select one of the four optional forms of payment of such benefits, as provided in Section 122.08, F.S., on Form FST-11o (Rev 07/06), http://www.flrules.org/Gateway/reference.asp?No=Ref-00361,Teachers’ Retirement System and State and County Officers’ and Employees’ Retirement System Option Selection for Members, herein adopted by reference, which may be obtained from the Forms page of the Division’s website, www.frs.MyFlorida.com, or by calling the Division 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].

(11) Prior to the receipt of his or her first monthly benefit payment, a Teachers’ Retirement System member who is eligible for a retirement benefit computed in accordance with Rule 60S-4.004, 60S-4.005, or 60S-4.006, F.A.C., shall select one of the four optional forms of payment of such benefits, as provided in Section 238.08, F.S., on Form FST-11o, Option Selection for TRS and SCOERS Members, as adopted in subsection (10).

Rulemaking Authority 121.031, 121.052(14) FS. Law Implemented 121.021, 121.031(2), 121.052, 121.055, 121.091(6), (11) FS. History–New 1-1-72, Amended 12-31-74, 7-1-79, 5-18-80, 8-26-81, 1-18-83, 11-6-84, 4-17-85, Formerly 22B-4.10, Amended 3-11-87, 9-5-90, 5-15-91, 9-8-92, Formerly 22B-4.010, Amended 3-12-96, 12-12-96, 2-24-99, 8-13-03, 4-5-12, 1-20-16, 11-6-16.