1998 FRS & Local Retirement Bills Report

General Bills Passed

Ch. 98-18 CS/CS/HB 3131

Effective 7-1-98. Section 1 Amends DROP. (121.091(13), F.S.)

Section 2 Deletes "nonsectarian" with regard to the purchase of retirement credit. (121.1122. F.S.)

Ch. 98-121 SB 1260

Effective 5-22-98, expands the dates of the Vietnam era, considered as wartime service, from February 28, 1961 through May 7, 1975. (1.01, F.S.)

Ch. 98-138 CS/SB 1684

Effective 7-1-98, provides statutory authority for certain rules of the Division which are current policy. (121.021, 121.051, 121.0515, 121.052, 121.053, 121.055, 121.071, 121.081, 121.091, 121.111, 121.121, 121.122, 121.193, 121.35, & 121.40, F.S.)

Ch. 98-292 CS/HB 161

Effective 7-1-98, in part, replaces the term "teacher aide" with the term "education paraprofessional". (121.091, 228.041, 228.056, 231.141, 231.143, 231.15, 231.3605, 231.40, & 240.40685, F.S.)

Ch. 98-302 CS/HB 4135

Effective 5-29-98, unless otherwise specified.

Section 1 In part, authorizes the establishment of charter technical career centers, and provides for compulsory membership in the FRS for employees of charter technical career centers which participate in the FRS.

Section 2 Adds charter technical career centers to the definitions of "covered group" and "employer" with respect to the FRS. (121.021, F.S.)

Section 3 Provides for participation in the State Community College System Optional Retirement Program, rather than the FRS, for employees of charter technical career centers sponsored by the State Community College System. (121.051, F.S.)

Section 4 Effective 7-1-98, includes charter technical career centers with a group authorized to purchase certain retirement credit. (121.1122, F.S.)

Ch. 98-18 CS/CS/HB 3131

Section 1 Effective 1-1-99, provides an increase in HIS benefits for eligible retirees; effective 7-1-98, increases the HIS employer contribution rate to fund the increase; and provides retroactive payments to late applicants for the HIS. (112.363, F.S.)

Section 2 Clarifies payment of benefits under the closed, existing systems. (121.011, F.S.)

Section 3 Effective 7-1-98, adds or modifies definitions (121.021, F.S.), making them consistent with current Division rules without a policy change, as follows:

• (22) "Compensation"
• (24) "Average final compensation
• (28) "Joint annuitant"
• (29) "Normal retirement date"
• (30) "Early retirement date"
• (45) "Vested" or "vesting"
• (46) "Beneficiary"
• (47) "Bonus"
• (48) "Accumulated annual leave payment"
• (49) "Accumulated sick leave payment"
• (50) "Independent contractor"
• (51) "Previous service"
• (52) "Regularly established position"
• (53) "Temporary position"
• (54) "Work year"

Section 4 Changes the Elected State and County Officers Class (ESCOC) name to Elected Officers Class, and, effective 7-1-98, contribution rates for EOC decrease. (121.052, F.S.)

Section 5 Effective 7-1-98, provides SMSC contribution rate increase, and allows one SMSC position for local agencies with 100 or more, rather than 200 or more, regularly established positions. (121.055, F.S.)

Section 6 Effective 7-1-98, provides decreased contribution rates for Regular Class and Special Risk classes, and an increase for HIS. (121.071, F.S.)

Section 7 Allows a retired member to nullify a joint annuitant designation following a divorce; provides for purchase of additional service credit by the spouse or other joint annuitant of deceased member in order to vest, and clarifies beneficiary designation of a member who dies before retirement, on or after January 1, 1999. (121.091, F.S.)

Section 8 Effective 1-1-98, authorizes the purchase of retirement service credit for service in schools and colleges associated with a religious denomination provided the schools meet all other criteria of section 121.1122, F.S.

Section 9 Allows a subordinate officer who was required to terminate his office because he was a candidate for the same public office for which his superior officer was a candidate, an opportunity to claim credit for the time during which he was required to be terminated. (121.121, F.S.)

Section 10 Allows members with renewed membership in the SMSC to upgrade to the SMSC any postretirement service in a position that was eligible for inclusion in the SMSC but was credited as Regular Class service. (121.122, F.S.)

Section 11 Names the FRS benefit to be the primary benefit for any aggregate limitation under section 415 of the Internal Revenue Code, when a member also participates in another plan maintained by his or her employer. (121.30, F.S.)

Section 12 Specifies requirements for the cancellation, credit, and replacement of benefit warrants issued by the FRS, or any other pension trust fund administered by the Division, not cashed or deposited within one year after originally issued. (121.133, F.S.)

Section 13 Effective 7-1-98, provides IFAS contribution rate increase. (121.40, F.S.)

Section 14 Repeals Sections 121.0505 and 121.0516, F.S., which contain duplicative contribution rates.

Sections 15, 16, & 17 Adds directory language to Division of Statutory Revision.

Section 18 Authorizes comprehensive review of the assumptions and contribution rate structure underpinning the FRS.

Ch. 98-430 SB 66

Provides survivor benefit to Penny Tilley, widow of Jack W. Tilley, who passed away one month before being vested in the FRS. Made null by CS/CS/HB 3491.

Local Bills Passed

Ch. 98-134/SB 1462

Permits municipalities greater investment latitude; and clarifies powers and duties of the Board of Trustees. (175.071, & 185.06, F.S.)

Related Retirement Bills

Ch. 98-47 CS/HB 3661

Effective 5-11-98, requires audits of SBAs trust fund investments, revises provisions regarding the investment of state agency/local government funds, provides for rulemaking authority for SBA, and authorizes SBA to make investments on behalf of the Division of Blind Services. (159.825, 190.016, 215.44, 215.47, 215.455, 215.50, 215.515, 215.835, 218.407, 218.412, 235.187, 235.2195, & 413.0115, F.S.)

Ch. 98-206 CS/CS/SB 1996 & CS/SB 1182

Effective 5-24-98, in part, recognizes charter schools as public schools, and prohibits school districts from requiring resignation of teachers desiring to teach in charter schools. (228.056, 228.0561, & 235.42, F.S.)