Florida 2024 Regular Session

Florida House Bill H0973 Compare Versions

Only one version of the bill is available at this time.

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10	10	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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14	14	A bill to be entitled 1
15	15	An act relating to pension plan election under the 2
16	16	Florida Retirement System; amending s. 121.4501, F.S.; 3
17	17	authorizing certain eligible employees participating 4
18	18	in the Florida Retirement System to make a second 5
19	19	election to move back to the pension plan; requiring 6
20	20	the Division of Retirement to notify employees 7
21	21	eligible to make such election by a specified date; 8
22	22	providing requirements for such election; providing 9
23	23	that the cost of such election is deferred until the 10
24	24	member's retirement; authorizing such cost to be 11
25	25	amortized over a certain period of time; prohibiting 12
26	26	such cost from exceeding a specified percentage of the 13
27	27	member's retirement benefits; conforming cross -14
28	28	references; amending s. 121.122, F.S.; conforming 15
29	29	cross-references; providing an effective date. 16
30	30	17
31	31	Be It Enacted by the Legislature of the State of Florida: 18
32	32	19
33	33	Section 1. Paragraphs (a) and (b) of subsection (4) of 20
34	34	section 121.4501, Florida Statutes, a re amended, and paragraph 21
35	35	(g) is added to that subsection, to read: 22
36	36	121.4501 Florida Retirement System Investment Plan. — 23
37	37	(4) PARTICIPATION; ENROLLMENT. — 24
38	38	(a)1. Effective June 1, 2002, through February 28, 2003, a 25
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40	40	HB 973 2024
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47	47	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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51	51	90-day election period was provided to each eligible employee 26
52	52	participating in the Florida Retirement System, preceded by a 27
53	53	90-day education period, permitting each eligible employee to 28
54	54	elect membership in the investment plan. An employee who failed 29
55	55	to elect the investment plan during the elec tion period remained 30
56	56	in the pension plan. An eligible employee who was employed in a 31
57	57	regularly established position during the election period was 32
58	58	granted the option to make one subsequent election, as provided 33
59	59	in paragraphs (f) and (g) paragraph (f). With respect to an 34
60	60	eligible employee who did not participate in the initial 35
61	61	election period or who is initially employed in a regularly 36
62	62	established position after the close of the initial election 37
63	63	period but before January 1, 2018, such employee shall, by 38
64	64	default, be enrolled in the pension plan at the commencement of 39
65	65	employment and may, by the last business day of the 5th month 40
66	66	following the employee's month of hire, elect to participate in 41
67	67	the investment plan. The employee's election must be made in 42
68	68	writing or by electronic means and must be filed with the third -43
69	69	party administrator. The election to participate in the 44
70	70	investment plan is irrevocable, except as provided in paragraphs 45
71	71	(f) and (g) paragraph (f). 46
72	72	a. If the employee files such election within the 47
73	73	prescribed time period, enrollment in the investment plan is 48
74	74	effective on the first day of employment. The retirement 49
75	75	contributions paid through the month of the employee plan change 50
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77	77	HB 973 2024
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84	84	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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88	88	shall be transferred to the investment program, and, effective 51
89	89	the first day of the next month, the employer and employee must 52
90	90	pay the applicable contributions based on the employee 53
91	91	membership class in the program. 54
92	92	b. An employee who fails to elect to participate in the 55
93	93	investment plan within the prescribed time period is deem ed to 56
94	94	have elected to retain membership in the pension plan, and the 57
95	95	employee's option to elect to participate in the investment plan 58
96	96	is forfeited. 59
97	97	2. With respect to employees who become eligible to 60
98	98	participate in the investment plan pursuant to s. 61
99	99	121.051(2)(c)3. or s. 121.35(3)(i), the employee may elect to 62
100	100	participate in the investment plan in lieu of retaining his or 63
101	101	her membership in the State Community College System Optional 64
102	102	Retirement Program or the State University System Optional 65
103	103	Retirement Program. The election must be made in writing or by 66
104	104	electronic means and must be filed with the third -party 67
105	105	administrator. This election is irrevocable, except as provided 68
106	106	in paragraphs (f) and (g) paragraph (f). Upon making such 69
107	107	election, the employee shall be enrolled as a member in the 70
108	108	investment plan, the employee's membership in the Florida 71
109	109	Retirement System is governed by the provisions of this part, 72
110	110	and the employee's participation in the State Community College 73
111	111	System Optional Retirement Program or the State University 74
112	112	System Optional Retirement Program terminates. The employee's 75
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121	121	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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125	125	enrollment in the investment plan is effective on the first day 76
126	126	of the month for which a full month's employer and employee 77
127	127	contribution is made to the investment plan. 78
128	128	(b)1. With respect to employees who become eligible to 79
129	129	participate in the investment plan by reason of employment in a 80
130	130	regularly established position commencing on or after January 1, 81
131	131	2018, or who did not complete an election window before January 82
132	132	1, 2018, any such employee shall be enrolled in the pension plan 83
133	133	at the commencement of employment and may, by the last business 84
134	134	day of the eighth month following the employee's month of hire, 85
135	135	elect to participate in the pension plan or the investment plan. 86
136	136	Eligible employees may make a plan election only if they are 87
137	137	earning service credit in an employer -employee relationship 88
138	138	consistent with s. 121.021(17)(b), excluding leaves of absence 89
139	139	without pay. 90
140	140	2. The employee's election must be made in writing or by 91
141	141	electronic means and must be filed with the third -party 92
142	142	administrator. The election to participate in the pension plan 93
143	143	or investment plan is irrevocable, except as provided in 94
144	144	paragraphs (f) and (g) paragraph (f). 95
145	145	3.a. Except as provided in subparagraph 4., if the 96
146	146	employee fails to make an election to either the pension plan or 97
147	147	the investment plan during the 8 -month period following the 98
148	148	month of hire, the employee is deemed to have elected the 99
149	149	investment plan and shall default into the investment plan 100
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158	158	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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160	160
161	161
162	162	retroactively to the employee's date of employment. The 101
163	163	employee's option to participate in the pension plan is 102
164	164	forfeited, except as provided in paragraphs (f) and (g) 103
165	165	paragraph (f). 104
166	166	b. The amount of the employee and employer contributions 105
167	167	paid through the date of def ault to the investment plan shall be 106
168	168	transferred to the investment plan and shall be placed in a 107
169	169	default fund as designated by the State Board of Administration. 108
170	170	The employee may move the contributions once an account is 109
171	171	activated in the investment plan. 110
172	172	4. If the employee is employed in a position included in 111
173	173	the Special Risk Class and fails to make an election to either 112
174	174	the pension plan or the investment plan during the 8 -month 113
175	175	period following the month of hire, the employee is deemed to 114
176	176	have elected the pension plan and shall default into the pension 115
177	177	plan retroactively to the employee's date of employment. The 116
178	178	employee's option to participate in the investment plan is 117
179	179	forfeited, except as provided in paragraphs (f) and (g) 118
180	180	paragraph (f). 119
181	181	5. Effective the first day of the month after an eligible 120
182	182	employee makes a plan election of the pension plan or investment 121
183	183	plan, or the first day of the month after default, the employee 122
184	184	and employer shall pay the applicable contributions based on the 123
185	185	employee membership class in the program. 124
186	186	(g) Effective July 1, 2024, an eligible employee 125
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195	195	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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199	199	participating in the Florida Retirement System who was enrolled 126
200	200	in the pension plan before 2002 and who moved to the investment 127
201	201	plan under paragraph (f) may choose to move back to the pension 128
202	202	plan while deferring the cost until retirement. 129
203	203	1. Eligible employees may elect to move back to the 130
204	204	pension plan under this paragraph only if they are earning 131
205	205	service credit in an employer -employee relationship consistent 132
206	206	with s. 121.021(17)(b), excluding leaves of absence without pay. 133
207	207	2. The division shall notify employees who qualify under 134
208	208	this paragraph no later than July 30, 2024. 135
209	209	3. The election to move back to the pension plan must be 136
210	210	made in writing and filed with the third -party administrator 137
211	211	within 90 days after an eligible employee receives notice from 138
212	212	the division under subparagraph 2. Such elections are effective 139
213	213	on the first day of the month after the receipt of the election 140
214	214	by the third-party administrator. 141
215	215	4. The cost of moving back to the pension plan under this 142
216	216	paragraph is deferred until the member's retirement. If a member 143
217	217	is unable to pay the deferred cost, or the member terminates his 144
218	218	or her employment before retireme nt, such cost must be amortized 145
219	219	over a period of 10 years beginning in the year of the member's 146
220	220	retirement, not to exceed 25 percent of the member's retirement 147
221	221	benefits. 148
222	222	Section 2. Paragraph (j) of subsection (3), paragraph (e) 149
223	223	of subsection (4), and p aragraph (e) of subsection (5) of 150
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232	232	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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236	236	section 121.122, Florida Statutes, are amended to read: 151
237	237	121.122 Renewed membership in system. — 152
238	238	(3) A retiree of the investment plan, the State University 153
239	239	System Optional Retirement Program, the Senior Management 154
240	240	Service Optional Annuity Program, or the State Community College 155
241	241	System Optional Retirement Program who is reemployed with a 156
242	242	covered employer in a regularly established position on or after 157
243	243	July 1, 2017, shall be enrolled as a renewed member of the 158
244	244	investment plan unless employed in a position eligible for 159
245	245	participation in the State University System Optional Retirement 160
246	246	Program as provided in subsection (4) or the State Community 161
247	247	College System Optional Retirement Program as provided in 162
248	248	subsection (5). The renewe d member must satisfy the vesting 163
249	249	requirements and other provisions of this chapter. 164
250	250	(j) Notwithstanding s. 121.4501(4)(f) and (g) s. 165
251	251	121.4501(4)(f), the renewed member is not eligible to elect 166
252	252	membership in the pension plan. 167
253	253	(4) A retiree of the inves tment plan, the State University 168
254	254	System Optional Retirement Program, the Senior Management 169
255	255	Service Optional Annuity Program, or the State Community College 170
256	256	System Optional Retirement Program who is reemployed on or after 171
257	257	July 1, 2017, in a regularly establ ished position eligible for 172
258	258	participation in the State University System Optional Retirement 173
259	259	Program shall become a renewed member of the optional retirement 174
260	260	program. The renewed member must satisfy the vesting 175
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269	269	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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273	273	requirements and other provisions of this cha pter. Once 176
274	274	enrolled, a renewed member remains enrolled in the optional 177
275	275	retirement program while employed in an eligible position for 178
276	276	the optional retirement program. If employment in a different 179
277	277	covered position results in the renewed member's enrollment i n 180
278	278	the investment plan, the renewed member is no longer eligible to 181
279	279	participate in the optional retirement program unless employed 182
280	280	in a mandatory position under s. 121.35. 183
281	281	(e) Notwithstanding s. 121.4501(4)(f) and (g) s. 184
282	282	121.4501(4)(f), the renewed member is not eligible to elect 185
283	283	membership in the pension plan. 186
284	284	(5) A retiree of the investment plan, the State University 187
285	285	System Optional Retirement Program, the Senior Management 188
286	286	Service Optional Annuity Program, or the State Community College 189
287	287	System Optional Retirement Program who is reemployed on or after 190
288	288	July 1, 2017, in a regularly established position eligible for 191
289	289	participation in the State Community College System Optional 192
290	290	Retirement Program shall become a renewed member of the optional 193
291	291	retirement program. The renewed member must satisfy the 194
292	292	eligibility requirements of this chapter and s. 1012.875 for the 195
293	293	optional retirement program. Once enrolled, a renewed member 196
294	294	remains enrolled in the optional retirement program while 197
295	295	employed in an eligible position for the optional retirement 198
296	296	program. If employment in a different covered position results 199
297	297	in the renewed member's enrollment in the investment plan, the 200
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306	306	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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310	310	renewed member is no longer eligible to participate in the 201
311	311	optional retirement program. 202
312	312	(e) Notwithstanding s. 121.4501(4)(f) and (g) s. 203
313	313	121.4501(4)(f), the renewed member is not eligible to elect 204
314	314	membership in the pension plan. 205
315	315	Section 3. This act shall take effect July 1, 2024. 206