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