Fla. Admin. Code Ann. R. 60W-4.007 - Optional Supplemental Benefits

(1) A participant who is eligible for a supplemental benefit computed in accordance with Rule 60W-4.004, F.A.C., shall select prior to the receipt of his or her first monthly supplemental benefit payment, one of the four optional forms of payment of such benefit as provided in paragraph (a), (b), (c) or (d) on Form FRS-11o (IFAS) (Rev. 07/10), http://www.flrules.org/Gateway/reference.asp?No=Ref-01851, Florida Retirement System Pension Plan Option Selection for Institute of Food and Agricultural Sciences, herein incorporated by reference, which also requires such participant to attest to his or her marital status on Form SA-1 (Rev. 01/10), http://www.flrules.org/Gateway/reference.asp?No=Ref-01855, Florida Retirement System Pension Plan Spousal Acknowledgment Form, as adopted in Rule 60S-4.010, F.A.C., herein incorporated by reference. A married participant who selects option 1 under paragraph (a) or option 2 under paragraph (b) shall also be required to have his or her spouse complete the spousal acknowledgement section of Form SA-1. Such forms shall be submitted to the Division and may be obtained by calling the Division's Bureau of Retirement Calculations toll free at (888) 738-2252, if calling from outside the Tallahassee calling area or locally at (850) 488-6491, or if hearing or speech impaired by calling the Division via T.D.D. at the Florida Relay System by dialing 711 or (800) 955-8771. The supplemental benefit payment options are as follows:

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

(b) Option 2. A supplemental benefit payable during his or her lifetime and, in the event of 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 supplemental benefit which shall be payable during the joint lifetime of both the participant and his or her joint annuitant and which shall continue after death of either during the lifetime of the survivor in the same amount.

(d) Option 4. A supplemental benefit payable during the joint lifetime of the participant and his or her joint annuitant, and which shall continue after 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 participant and his or her joint annuitant.

(2) The supplemental benefits payable under Option 1 in this section shall be the amounts computed as provided in Rule 60W-4.004, F.A.C. The supplemental benefits payable under Options 2, 3, and 4 in this section shall be the actuarial equivalent of the amount to which the participant is otherwise entitled under Option 1, based on the actuarial tables included in Chapter 60W-7, F.A.C.

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

(a) Determine the maximum supplemental benefit for which the participant is eligible under Option 1.

(b) Select the appropriate Option 2 factor from Chapter 60W-7, F.A.C.

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

(d) In the event of death of the recipient of an Option 2 benefit when an institution or an estate is the beneficiary, such beneficiary may request a lump sum settlement of any monthly supplemental 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 official representative of the institution or the executor, administrator or personal representative of the estate shall sign a release acknowledging payment of any claim against the retirement trust fund.

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

(a) Determine the maximum supplemental benefit for which the participant is eligible under Option 1.

(b) Using the ages of the participant and the joint annuitant at the date the supplemental benefit shall commence, as provided in subsection 60W-4.002(4), F.A.C., select the appropriate actuarial factor as provided in Chapter 60W-7, F.A.C., for the option chosen by the participant.

(c) Multiply the maximum supplemental benefit obtained in paragraph 60W-4.007(4)(a), F.A.C., by the actuarial factor obtained in paragraph 60W-4.007(4)(b), F.A.C., to determine the supplemental benefit which the participant shall receive.

(5) After a supplemental benefit warrant has been cashed or deposited, the election of an option shall not be changed.

(6) The election of an option shall be null and void if either the participant, designated beneficiary, or designated joint annuitant should die before the first day of the month during which supplemental benefits commence, as provided in subsection 60W-4.002(4), F.A.C. If a participant should die prior to such date, 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), and supplemental benefits shall be payable in accordance with the provisions of Rule 60W-4.005, F.A.C. If the participant should die after such date, his or her employment will be considered to have been terminated by retirement, and supplemental benefits shall be payable in accordance with the supplemental benefit option selected as provided by this section, except when death occurs prior to the cashing or depositing of the first supplemental benefit warrant by the participant, and the surviving spouse or other dependent is the designated beneficiary or designated joint annuitant, in which case supplemental benefits shall be payable in accordance with the provisions of Rule 60W-4.005, F.A.C.

(7)

(a) A participant who elects Option 3 or 4 shall designate his or her spouse or other joint annuitant to receive the benefits which continue to be payable upon his or her death on the application for supplemental benefits, Form IF-11, as adopted by reference in subsection 60W-4.002(2), F.A.C. If, after benefits have commenced under Option 3 or 4, the retired participant desires to change his or her designation of a joint annuitant, he or she may do so twice during his or her retired life. A retired participant desiring to change his or her designation shall file with the Division a notarized Form JA-1 (Rev. 12/02), http://www.flrules.org/Gateway/reference.asp?No=Ref-01853, Florida Retirement System Pension Plan Change of Joint Annuitant Form (Retired members only), as adopted in Rule 60S-4.010, F.A.C., herein incorporated by reference, and proof of birth for the new joint annuitant, a copy of the marriage certificate if the new joint annuitant is a spouse and a copy of the death certificate if the previously designated joint annuitant is deceased. The JA-1 form may be obtained by calling the Division's Survivor Benefits Section toll free at (877) 377-4347, if calling from outside the Tallahassee calling area or locally at (850) 488-5207, or if hearing or speech impaired by calling the Division via T.D.D. at the Florida Relay System by dialing 711 or (800) 955-8771. The participant is also required to notify his or her former joint annuitant, if living, of such change in writing. Upon the Division's receipt of the completed Form JA-1, the Division shall adjust the retired participant's monthly benefit by application of actuarial tables and calculations developed to ensure that the benefit paid is the actuarial equivalent of the present value of the participant's monthly benefit at the time of the joint annuitant change. The consent of a retired participant'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) 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-01854, Florida Retirement System Pension Plan Joint Annuitant Nullification Form, as adopted in Rule 60S-4.010, F.A.C., herein adopted by reference and a copy of the divorce decree. Form JA-NUL may be obtained by calling the Division's Survivor Benefits Section toll free at (877) 377-4347, if calling from outside the Tallahassee calling area or locally at (850) 488-5207. Individuals with a hearing or speech impairment may call the Division via T.D.D. at the Florida Relay System by dialing 711 or (800) 955-8771. 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 (a), in which case the member's monthly benefit will be adjusted as though the member's nullified joint annuitant is not living.

Notes

Fla. Admin. Code Ann. R. 60W-4.007

Rulemaking Authority 121.40(13) FS. Law Implemented 121.40(7) FS.

New 2-4-86, Formerly 22Q-4.007, Amended 3-31-13.

New 2-4-86, Formerly 22Q-4.007, Amended 3-31-13.