Senate Bill 7016 (2021) — Florida Retirement System Investment Plan
SB 7016
Florida Bills
Florida Senate - 2021 SB 7016 By the Committee on Governmental Oversight and Accountability 585-01992-21 20217016__ Page 1 of 5 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1
An act relating to the Florida Retirement System 2 Investment Plan; amending s. 121.091, F.S.; specifying 3 conditions under which the State Board of 4 Administration may not pay retirement benefits to a 5 Florida Retirement System member; amending s. 6 121.4501, F.S.; authorizing the State Board of 7 Administration to develop investment products to be 8 offered in the investment plan; modifying procedures 9 governing an investment plan member’s designation of a 10 beneficiary other than the member’s spouse; providing 11 an effective date. 12 13 Be It Enacted by the Legislature of the State of Florida: 14 15
Section 1. Paragraphs (
i) and (
k) of subsection (5) of 16
section 121.091, Florida Statutes, are amended to read: 17 121.091 Benefits payable under the system.—Benefits may not 18 be paid under this
section unless the member has terminated 19 employment as provided in s. 121.021(39)(
a) or begun 20 participation in the Deferred Retirement Option Program as 21 provided in subsection (13), and a proper application has been 22 filed in the manner prescribed by the department. The department 23 may cancel an application for retirement benefits when the 24 member or beneficiary fails to timely provide the information 25 and documents required by this
chapter and the department’s 26 rules. The department shall adopt rules establishing procedures 27 for application for retirement benefits and for the cancellation 28 of such application when the required information or documents 29
Florida Senate - 2021 SB 7016 585-01992-21 20217016__ Page 2 of 5 CODING: Words stricken are deletions; words underlined are additions. are not received. 30
(5) TERMINATION BENEFITS.—A member whose employment is 31 terminated prior to retirement retains membership rights to 32 previously earned member-noncontributory service credit, and to 33 member-contributory service credit, if the member leaves the 34 member contributions on deposit in his or her retirement 35 account. If a terminated member receives a refund of member 36 contributions, such member may reinstate membership rights to 37 the previously earned service credit represented by the refund 38 by completing 1 year of creditable service and repaying the 39 refunded member contributions, plus interest. 40 (
i) The division or the state board may not pay benefits to 41 any member convicted of a felony committed on or after October 42 1, 2008, defined in s. 800.04 against a victim younger than 16 43 years of age, or defined in
chapter 794 against a victim younger 44 than 18 years of age, through the use or attempted use of power, 45 rights, privileges, duties, or position of the member’s public 46 office or employment position. However, the division or the 47 state board shall return the member’s accumulated contributions, 48 if any, that the member accumulated as of the date of 49 conviction. 50 (
k) Benefits shall not be paid by the division or the state 51 board pending final resolution of such charges against a member 52 or beneficiary if the resolution of such charges could require 53 the forfeiture of benefits as provided in paragraph (f), 54 paragraph (g), paragraph (h), paragraph (i), or paragraph (j), 55 or
chapter 112. 56
Section 2. Subsection (20) of
section 121.4501, Florida 57 Statutes, is amended, and paragraph (
h) is added to subsection 58
Florida Senate - 2021 SB 7016 585-01992-21 20217016__ Page 3 of 5 CODING: Words stricken are deletions; words underlined are additions. (8) of that section, to read: 59 121.4501 Florida Retirement System Investment Plan.— 60
(8) INVESTMENT PLAN ADMINISTRATION.—The investment plan 61 shall be administered by the state board and affected employers. 62 The state board may require oaths, by affidavit or otherwise, 63 and acknowledgments from persons in connection with the 64 administration of its statutory duties and responsibilities for 65 the investment plan. An oath, by affidavit or otherwise, may not 66 be required of a member at the time of enrollment. 67 Acknowledgment of an employee’s election to participate in the 68 program shall be no greater than necessary to confirm the 69 employee’s election.
The state board shall adopt rules to carry 70 out its statutory duties with respect to administering the 71 investment plan, including establishing the roles and 72 responsibilities of affected state, local government, and 73 education-related employers, the state board, the department, 74 and third-party contractors. The department shall adopt rules 75 necessary to administer the investment plan in coordination with 76 the pension plan and the disability benefits available under the 77 investment plan. 78 (
h) The state board, consistent with its fiduciary 79 responsibilities, may develop one or more investment products to 80 be offered in the investment plan. 81
(20) DESIGNATION OF BENEFICIARIES.— 82 (
a) Each member may, by electronic means or on a form 83 provided for that purpose, signed and filed with the third-party 84 administrator, designate a choice of one or more persons, named 85 sequentially or jointly, as his or her beneficiary for receiving 86 the benefits, if any, which may be payable pursuant to this 87
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chapter in the event of the member’s death. If no beneficiary is 88 named in this manner, or if no beneficiary designated by the 89 member survives the member, the beneficiary shall be the spouse 90 of the deceased, if living. If the member’s spouse is not alive 91 at the time of the member’s death, the beneficiary shall be the 92 living children of the member. If no children survive, the 93 beneficiary shall be the member’s father or mother, if living; 94 otherwise, the beneficiary shall be the member’s estate.
The 95 beneficiary most recently designated by a member shall be the 96 beneficiary entitled to any benefits payable at the time of the 97 member’s death. However, for a member who dies before prior to 98 his or her effective date of retirement, the spouse at the time 99 of death shall be the member’s beneficiary unless the member 100 designates a different beneficiary subsequent to the member’s 101 most recent marriage. 102 (
b) If a member is married but does not designate the 103 member’s spouse as designates a primary beneficiary, the spouse 104 must be notified and acknowledge any such designation. 105 Notwithstanding the foregoing, if the spouse cannot be located 106 or fails to affirmatively acknowledge such designation, the 107 member may request that the acknowledgment requirement be waived 108 by the state board through an affidavit setting forth the 109 particular facts and circumstances other than the member’s 110 spouse, the member’s spouse must sign the beneficiary 111 designation form to acknowledge the designation.
This 112 requirement does not apply to the designation of one or more 113 contingent beneficiaries to receive benefits remaining upon the 114 death of the primary beneficiary or beneficiaries. 115 (
c) Notwithstanding the member’s designation of benefits to 116
Florida Senate - 2021 SB 7016 585-01992-21 20217016__ Page 5 of 5 CODING: Words stricken are deletions; words underlined are additions. be paid through a trust to a beneficiary that is a natural 117 person and the provisions of the trust, benefits must be paid 118 directly to the beneficiary if the person is no longer a minor 119 or an incapacitated person as defined in s. 744.102. 120