Fla. Admin. Code tit. 19 | Fla. Admin. Code Title 19 — State Board of Administration

Division 19 Departmental

Chapter 19-3 RULES AND REGULATIONS GOVERNING THE ORGANIZATION, MEETINGS, AND PROCEDURES OF THE STATE BOARD OF ADMINISTRATION

Fla. Admin. Code R. 19-3.001 Application of Rules

History

Rulemaking Authority 120.53(1), 215.52 FS. Law Implemented 120.53(1) FS. History–New 7-13-75, Amended 12-25-85, Formerly 19-3.01, Amended 12-18-88, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.0011 Definitions

History

Rulemaking Authority 120.53(1), 215.52 FS. Law Implemented 120.53(1) FS. History–New 12-18-88, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.002 Membership of the State Board of Administration

History

Rulemaking Authority 120.53(1), 215.52 FS. Law Implemented 120.53(1) FS. History–New 7-13-75, Amended 12-25-85, Formerly 19-3.02, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.0021 Responsibilities of the Board

History

Rulemaking Authority 120.53(1), 215.52 FS. Law Implemented 120.44, 215.45, 215.47 FS. History–New 12-25-85, Formerly 19-3.021, Amended 12-18-88, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.003 Meetings and Notice

History

Rulemaking Authority 120.53(1), 215.52 FS. Law Implemented 120.53(1) FS. History–New 7-13-75, Amended 2-10-82, 12-25-85, Formerly 19-3.03, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.004 Presiding Officer

History

Rulemaking Authority 120.53(1), 215.52 FS. Law Implemented 120.53(1) FS. History–New 7-13-75, Amended 12-25-85, Formerly 19-3.04, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.005 Quorum

History

Rulemaking Authority 120.53(1), 215.54(9) FS. Law Implemented 120.53(1) FS. History–New 7-13-75, Formerly 19-3.05, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.006 Agendas

History

Rulemaking Authority 120.53(1), 215.52 FS. Law Implemented 120.53(1) FS. History–New 7-13-75, Amended 12-25-85, Formerly 19-3.06, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.007 Distribution of Agendas

History

Rulemaking Authority 120.53(1), 215.52 FS. Law Implemented 120.53(1) FS. History–New 7-13-75, Amended 12-25-85, Formerly 19-3.07, Amended 2-16-92, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.008 Recording of Proceedings

History

Rulemaking Authority 120.53(1), 215.52 FS. Law Implemented 120.53(1) FS. History–New 7-13-75, Amended 12-25-85, Formerly 19-3.08, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.009 Minutes

History

Rulemaking Authority 120.53(1), 215.52 FS. Law Implemented 120.53(1) FS. History–New 7-13-75, Amended 12-25-85, Formerly 19-3.09, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.010 Order of Procedure

History

Rulemaking Authority 120.53(1), 120.54(1) FS. Law Implemented 120.53(1) FS. History–New 7-13-75, Formerly 19-3.10, Repealed 2-10-82.

Fla. Admin. Code R. 19-3.011 Reports

History

Rulemaking Authority 120.53(1), 215.52 FS. Law Implemented 120.53(1) FS. History–New 7-13-75, Amended 2-10-82, 12-25-85, Formerly 19-3.11, Amended 12-11-89, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.0111 Audit Reports

History

Rulemaking Authority 120.53(1), 215.52 FS. Law Implemented 120.53(1) FS. History–New 12-25-85, Formerly 19-3.11, 19-3.111, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.012 Board Action

History

Rulemaking Authority 120.53(1), 215.54(9) FS. Law Implemented 120.53(1) FS. History–New 7-13-75, Formerly 19-3.12, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.013 Voting

History

Rulemaking Authority 120.53(1), 215.54(9) FS. Law Implemented 120.53(1) FS. History–New 7-13-75, Formerly 19-3.13, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.014 Amendment to Rules

History

Rulemaking Authority 120.53(1), 215.54(9) FS. Law Implemented 120.53(1) FS. History–New 7-13-75, Formerly 19-3.14, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.015 Parliamentary Matters

History

Rulemaking Authority 120.53(1), 215.54(9) FS. Law Implemented 120.53(1) FS. History–New 7-13-75, Formerly 19-3.15, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.016 Executive Director

The Executive Director, who shall act as the Board’s chief administrative and investment officer, shall be selected by and serve at the pleasure of the Board. The Board has hereby delegated authority to act in the following areas to the Executive Director or his or her designee:

(1) To negotiate, enter into, execute, amend and terminate purchases, contracts, leases, lease-purchases, licenses and agreements relating to real, personal and mixed property, services, commodities and capital outlay items required for the day-to-day operations of the Board.

(2) To negotiate, enter into, execute, amend and terminate contracts, agreements, license applications, account opening or maintenance documents, and all related documents as necessary and/or appropriate to carry out the administrative, investment and debt functions of the Board.

(3) To control and disburse funds to carry out the constitutional and statutory duties of the Board.

(4) Make final decisions on all personnel matters, including discipline, involving Board employees.

(5) To transfer funds between categories of approved funds provided no category is increased or decreased by more than five percent of the total approved budget by all action taken.

(6) To transfer funds between object codes of a category of approved funds without limitation.

(7) To add, delete, reclassify and transfer authorized salaried positions so long as the total approved and budgeted positions are not exceeded.

(8) Authorize and pay travel expenses and per diem under Section 112.061, F.S. Authorize and pay membership dues under Section 216.345, F.S., when such membership is essential to the statutory duties and responsibilities of the Board or, with respect to constitutional duties and responsibilities of the Board, when such membership is essential to the constitutional duties and responsibilities of the Board.

(9) To act as custodian of the records and property of the Board.

(10) To act as agent for service of process, as representative to organizations in which the Board is a member or officer and as official liaison with agencies or other bodies of the State, other states, the Federal Government and the public.

(11) To bring suit, file claims, or take legal action or proceedings in the name of the Board, or to defend the Board in any suit, claim, or other legal action or proceeding against the Board; and to manage, settle, and/or recover any claim or other legal action or proceeding brought by or against the Board. The Executive Director will provide notice to the Trustees of the Board no less than 5 business days prior to filing a complaint in the name of the Board.

(12)(a) To issue declaratory statements pursuant to Section 120.565, F.S.;

(b) To review and execute, or to delegate the authority to review and execute, all final orders issued pursuant to Sections 120.569 and 120.57, F.S.;

(d) To initiate all rule development.

(e) To adopt, implement, modify and terminate internal procedures, policies and guidelines.

(13) To perform or facilitate such other functions as may be necessary or appropriate to supervise, direct, conduct and administer the day-to-day duties of the State Board of Administration as authorized by law or by rules and policies adopted by the Board.

(14) The Executive Director shall keep each member of the Board advised of controversial or major policy issues arising in the State Board of Administration and shall place such matters upon its agenda when directed by any member of the Board.

(15) The management and the execution of the investment and debt responsibilities of the Board shall be under the direction and supervision of the Executive Director, subject to such limitations and restrictions as may be prescribed by the Board.

(16) To authorize and designate futures and options markets as authorized in Section 215.47, F.S.

(17) To assess and collect fees for authorized services provided by the Board for certain services performed for any agency, judicial branch or fund and to deposit the fees in and to expend funds from the Administrative Expense Trust Fund. The services for which fees may be assessed and collected include but are not limited to the following:

(a) Processing of interest rate waiver applications.

(b) Collecting of undistributed account balances.

(d) Reproduction fees.

(e) Fees paid for the services of General Counsel relating to private non-trust related entities.

(f) Equitable surcharges on investment earnings.

(g) Administration and legal work fees.

(h) These fees may be deposited in the Administrative Expense Trust Fund and expended only for lawful purposes of the Board.

History

Rulemaking Authority 112.061(9)(b), 215.52, 215.835, 215.84(5), 216.345(3), 218.412 FS. Law Implemented 112.061, 215.44(2)(b), 215.441, 215.515, 215.69, 215.84, 216.345(2), 218.409(7) FS. History–New 7-13-75, Amended 4-10-84, 12-25-85, Formerly 19-3.16, Amended 12-11-89, 10-21-90, 6-4-91, 6-16-94, 10-15-13, 5-18-25, Reviewed 8-27-26.

Fla. Admin. Code R. 19-3.0161 Investment Responsibilities of the Executive Director

The Executive Director has the responsibility and authority to organize and manage the ongoing investment activities of the Board. The Executive Director is responsible for implementing approved investment objectives, policies and strategies. All Investment Policy Statements shall be submitted to the Board for approval. The Executive Director shall periodically review such policy statements and shall submit proposed Investment Policy Statement revisions to the Investment Advisory Council for review. The Executive Director’s management of the funds may include tactical changes in particular portfolio holdings in accordance with approved policies. The intent is to provide the Executive Director with sufficient authority and operating flexibility to make prudent and professional investment decisions in response to changing market and economic conditions, and otherwise to ensure that the Board fulfills its fiduciary duties.

History

Rulemaking Authority 215.52 FS. Law Implemented 215.44, 215.45, 215.47, 215.475, 215.52 FS. History–New 12-25-85, Formerly 19-3.161, Amended 12-18-88, 10-15-13, Reviewed 8-27-26.

Fla. Admin. Code R. 19-3.017 Deputy Executive Directors

History

Rulemaking Authority 120.53(1), 215.52 FS. Law Implemented 120.53(1) FS. History–New 7-13-75, Amended 12-25-85, Formerly 19-3.17, Repealed 12-18-88.

Fla. Admin. Code R. 19-3.018 Disbursement of Funds

History

Rulemaking Authority 215.52 FS. Law Implemented 215.44(2)(a) FS. History–New 7-13-75, Formerly 19-3.18, Amended 12-18-88, 5-5-94, 10-6-96, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.019 Report of Disbursements

History

Rulemaking Authority 120.53(1), 120.54(9) FS. Law Implemented 120.53(1) FS. History–New 7-13-75, Formerly 19-3.19, Repealed 12-11-89.

Fla. Admin. Code R. 19-3.020 General Information Concerning the Board

History

Rulemaking Authority 120.53(1), 215.52 FS. Law Implemented 120.53(1) FS. History–New 5-11-76, Amended 2-10-82, 12-25-85, Formerly 19-3.20, Amended 12-18-88, 10-21-90, 3-24-96, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.021 Public Information and Inspection of Records

History

Rulemaking Authority 120.53(1) FS. Law Implemented 120.53(1) FS. History–New 5-11-76, Formerly 19-3.21, Repealed 12-25-85.

Fla. Admin. Code R. 19-3.022 Public Access to Board

History

Rulemaking Authority 120.53(1) FS. Law Implemented 120.53(1) FS. History–New 5-11-76, Formerly 19-3.22, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.023 Table of Organization

History

Rulemaking Authority 120.53(1), 215.52 FS. Law Implemented 120.53(1) FS. History–New 5-11-76, Amended 2-10-82, 12-25-85, Formerly 19-3.23, Repealed 12-18-88.

Fla. Admin. Code R. 19-3.0231 Organizational Structure

History

Rulemaking Authority 120.53(1), 215.52 FS. Law Implemented 120.53(1) FS. History–New 12-18-88, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.024 Adoption of Model Rules of Procedure

History

Rulemaking Authority 120.53(1) FS. Law Implemented 120.53(1), 120.565 FS. History–New 5-11-76, Formerly 19-3.24, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.025 Investment Advisory Council

History

Rulemaking Authority 120.53(1), 215.52 FS. Law Implemented 215.444 FS. History–New 12-25-85, Formerly 19-3.25, Amended 12-10-87, 4-14-94, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.080 Duties Regarding Bonds Issued by the Division of Bond Finance of the Department of General Services (“Division”)

History

Rulemaking Authority 120.53(1), 215.54(9) FS. Law Implemented 120.53(1) FS. History–New 5-16-90, Repealed 9-5-90.

Fla. Admin. Code R. 19-3.090 Authority

History

Rulemaking Authority 120.533 FS. Law Implemented 120.53(2)-(4) FS. History–New 4-23-92, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.091 Purpose

History

Rulemaking Authority 120.533 FS. Law Implemented 120.53(2)-(4) FS. History–New 4-23-92, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.092 Public Inspection and Duplication

History

Rulemaking Authority 120.533 FS. Law Implemented 120.53(2)(a)1.-5. FS. History–New 4-23-92, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.093 Final Orders Required to be Indexed

History

Rulemaking Authority 120.533 FS. Law Implemented 120.53(2)(a)3., 120.53(2)(d) FS. History–New 4-23-92, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.094 Listing of Final Orders

History

Rulemaking Authority 120.533 FS. Law Implemented 120.53(2)(a)4. FS. History–New 4-23-91, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.095 Numbering of Final Orders

History

Rulemaking Authority 120.533(1)(f) FS. Law Implemented 120.53(2)-(4) FS. History–New 4-23-92, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.096 System for Indexing Final Orders

History

Rulemaking Authority 120.533(1)(f) FS. Law Implemented 120.53(2)-(4) FS. History–New 4-23-92, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.097 Designation of Official Reporter

History

Rulemaking Authority 120.533(1) FS. Law Implemented 120.53(4) FS. History–New 4-23-92, Repealed 10-15-13.

Fla. Admin. Code R. 19-3.098 Maintenance of Records

History

Rulemaking Authority 120.533(1)(j) FS. Law Implemented 119.041(2) FS. History–New 4-23-92, Repealed 2-12-01.

Fla. Admin. Code R. 19-3.099 Plan

History

Rulemaking Authority 120.533(1)(j) FS. Law Implemented Chapter 91-30, Section 10, Laws of Florida. History–New 4-23-92, Amended 3-24-96, 10-15-13, Repealed 6-25-26.

Fla. Admin. Code R. 19-3.100 Format for Final Order

History

Rulemaking Authority 120.533(1)(b), (i), (j) FS. Law Implemented 120.53(2) FS. History–New 4-23-92, Repealed 10-15-13.

Chapter 19-4 RULES AND REGULATIONS GOVERNING THE INVESTMENT POLICIES AND PROCEDURES OF THE STATE BOARD OF ADMINISTRATION

Fla. Admin. Code R. 19-4.001 Purpose

History

Rulemaking Authority 215.52, 120.53(1) FS. Law Implemented 215.44, 215.45, 215.47 FS. History–New 10-1-75, Formerly 19-4.01, Repealed 2-10-82.

Fla. Admin. Code R. 19-4.0011 Purpose

History

Rulemaking Authority 215.52 FS. Law Implemented 215.44, 215.45, 215.47 FS. History–New 2-10-82, Formerly 19-4.011, Amended 12-18-88, Repealed 6-8-14.

Fla. Admin. Code R. 19-4.0012 Definitions

As used in this chapter, the following words will have the following meanings, unless some other meaning is plainly indicated:

(1) Strategy – Strategy consists of determining the appropriate risk-return tradeoffs for the total fund in light of the investment objectives.

(2) Fund – Fund shall mean the Florida Retirement System Defined Benefit Plan Trust.

(3) Tactics – Tactics consists of change in specific security holdings made regularly during the course of investment activity that do not materially change the expected risk or return of the total fund or of the asset class portfolio involved.

(4) Return – Return shall mean total return, including both current income and change in market value.

(5) Risk – Risk shall mean the potential underperformance verses the investment objective measured in the best available and most appropriate manners for the Fund.

(6) Synthetic securities – Securities created through the combination of cash market instruments, such as U.S. Treasury Bills, with futures market positions which, when taken together, mimic the characteristics of a cash market security or group of securities.

History

Rulemaking Authority 215.52 FS. Law Implemented 215.44, 215.47 FS. History–New 12-25-85, Formerly 19-4.012, Amended 12-14-86, 6-8-14.

Fla. Admin. Code R. 19-4.002 Investment Advisory Committee

History

Rulemaking Authority 215.52, 120.53(1) FS. Law Implemented 215.44, 215.45, 215.47 FS. History–New 10-1-75, Formerly 19-4.02, Repealed 2-10-82.

Fla. Admin. Code R. 19-4.003 Staff Cooperation with the Committee

History

Rulemaking Authority 215.52, 120.53(1) FS. Law Implemented 215.44, 215.45, 215.47 FS. History–New 10-1-75, Formerly 19-4.03, Repealed 2-10-82.

Fla. Admin. Code R. 19-4.0031 General Policies and Review Procedures for Investments

(1) The Fund shall be invested pursuant to the provisions set forth in the Florida Statutes, including but not limited to Sections 215.47 and 215.44, F.S. The Board shall approve an Investment Policy Statement which includes, among other items, the investment objectives of the Fund and evaluation criteria necessary to measure the investment performance of the Fund.

(2) The Executive Director shall present to the Investment Advisory Council a continuing review and study of its general portfolio strategy to meet the objectives of the Fund. A continuous review of the overall economic conditions shall be included.

(3) Changes in security holdings are the responsibility of the Executive Director, and must conform with standards of professional investment practice and prudence.

(4) The Executive Director shall govern the day-to-day operation of the various aspects of portfolio management consistent with the Investment Policy Statement.

(5) The Executive Director shall from time to time, or when directed by the Investment Advisory Council or the Board, present recommendations to the Board concerning investment activity not otherwise authorized by Sections 215.44-.53, F.S. Such new investment activity is authorized under authority in Section 215.47(6), F.S. The Executive Director shall monitor investment authority so granted, and ensure that the total of such investments does not exceed the statutory limit.

(6) For the purpose of implementing Section 215.47, F.S., any security, interest or investment vehicle or obligation issued by a private entity, trust or organization holding investments authorized by Section 215.47, F.S., will be considered an investment authorized by Section 215.47, F.S., provided that the predominant function of the entity, trust or organization is to hold and/or manage said underlying investments.

(7) The term “consistent with sound investment policy,” which is contained in Section 121.153(1)(c), F.S.; the term “consistent with the investment policy set forth in Sections 215.44(2) and 215.47(10), F.S.” which is contained in Section 121.153(2)(a), F.S.; and terms of similar meaning, which exist or shall exist in the laws of Florida, relating to the responsibility of the Board to perform its investment functions in accordance with accepted fiduciary standards, or words of like import, shall mean that the Board, in addition to complying with the aforecited laws, in performing its investment duties in accordance with these laws shall comply with the fiduciary standards set forth in the Employee Retirement Income Security Act of 1974 at 29 U.S.C. s. 1104(a)(1)(A) through (C), to wit: A fiduciary shall discharge his duties with respect to a plan solely in the interest of the participants and beneficiaries and

(a) For the exclusive purpose of:

Providing benefits to participants and their beneficiaries; and
Defraying reasonable expenses of administering the plan;

(b) With the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims;

(c) By diversifying the investments of the plan so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so.

(8) For the purpose of implementing Sections 215.44(2) and 215.47(10), F.S., the Executive Director shall not violate or cause the violation of any exclusive U.S. Federal laws, including but not limited to the federal securities laws, which pre-empt the laws of the State of Florida pertaining to the investment activities of the Board. Particular emphasis shall be given to ensure that a violation of Section 10 of the Securities Exchange Act of 1934, as well as Rule 10b-5 of the Securities and Exchange Commission (“SEC”), does not occur with respect to the release of material non-public or confidential insider information (“insider information”). Insider information is considered to include, but not be limited to, information relating to the investment activities of the Board (i) which if released by the provider of the information to the Board would cause the provider to violate any of the above-cited laws or (ii) information which if released by the Board to an individual would enable this individual to take advantage of uninformed investors. For the purposes of this subsection, the term “material” has the same meaning as given in SEC Rule 12b-2 which is: “The term “material,” when used to qualify a requirement for the furnishing of information as to any subject, limits the information required to those matters to which there is a substantial likelihood that a reasonable investor would attach importance in determining whether to buy or sell the securities registered.” The Securities and Exchange Act of 1934, as well as SEC Rules 10b-5 and 12b-2, can be obtained by accessing the SEC website at sec.gov and clicking on the Laws & Regulations section.

History

Rulemaking Authority 215.52 FS. Law Implemented 215.44, 215.45, 215.47 FS. History–New 2-10-82, Amended 12-25-85, Formerly 19-4.031, Amended 12-14-86, 12-10-87, 12-18-88, 6-1-89, 12-11-89, 2-13-90, 3-9-06, 6-8-14.

Fla. Admin. Code R. 19-4.0032 Policies and Review Procedures for Securities Lending

History

Rulemaking Authority 120.53(1), 215.52 FS. Law Implemented 215.455 FS. History–New 9-27-83, Amended 12-25-85, Formerly 19-4.032, Amended 12-11-89, Repealed 12-2-93.

Fla. Admin. Code R. 19-4.0033 Policies and Review Procedures for Use of Bona Fide Hedging Authority

History

Rulemaking Authority 215.52, 120.53(1) FS. Law Implemented 215.47(10) FS. History–New 1-7-85, Amended 12-25-85, Formerly 19-4.033, Amended 12-18-88, Repealed 12-11-89.

Fla. Admin. Code R. 19-4.0034 Futures and Options Markets

History

Rulemaking Authority 215.52, 120.53(1) FS. Law Implemented 215.47(10) FS. History–New 12-11-89, Amended 5-16-90, Repealed 10-21-90.

Fla. Admin. Code R. 19-4.0035 Florida Retirement System Defined Benefit Plan Investment Policy Statement

History

Rulemaking Authority 212.52 FS. Law Implemented 215.475 FS. History–New 6-8-14, Amended 2-18-16, 12-9-25, Repealed 6-25-26.

Fla. Admin. Code R. 19-4.004 Policies and Review Procedures on Investments in Equities

History

Rulemaking Authority 215.52, 120.53(1) FS. Law Implemented 215.44, 215.45, 215.47 FS. History–New 10-1-75, Formerly 19-4.04, Repealed 2-10-82.

Fla. Admin. Code R. 19-4.0041 Policies and Review Procedures for Florida Retirement System Investments in Equities

History

Rulemaking Authority 215.52 FS. Law Implemented 215.44, 215.45, 215.47 FS. History–New 2-10-82, Amended 9-27-83, 12-25-85, Formerly 19-4.041, Amended 12-14-86, Repealed 6-8-14.

Fla. Admin. Code R. 19-4.0043 Policies and Review Procedures on Investments in Synthetic Securities

History

Rulemaking Authority 215.52, 120.53(1) FS. Law Implemented 215.47 FS. History–New 12-14-86, Amended 12-18-88, Repealed 11-9-97.

Fla. Admin. Code R. 19-4.0044 Policies and Review Procedures for Foreign Obligations and Securities

History

Rulemaking Authority 215.52 FS. Law Implemented 215.47(5) FS. History–New 12-10-87, Repealed 6-8-14.

Fla. Admin. Code R. 19-4.0045 Policies and Review Procedures for Florida Retirement System Options Investments

History

Rulemaking Authority 215.52, 120.53(1) FS. Law Implemented 215.47(3) FS. History–New 2-10-82, Amended 9-27-83, 12-25-85, Formerly 19-4.041(4), 19-4.045, Amended 12-18-88, Repealed 12-11-89.

Fla. Admin. Code R. 19-4.0046 Policies and Review Procedures for Investments Authorized by Section 215.47(6), Florida Statutes

History

Rulemaking Authority 215.52 FS. Law Implemented 215.47(6) FS. History–New 12-20-87, Amended 12-11-89, Repealed 6-8-14.

Fla. Admin. Code R. 19-4.005 Policies and Review Procedures on Investments in Bonds

History

Rulemaking Authority 215.52, 120.53(1) FS. Law Implemented 215.44, 215.45, 215.47 FS. History–New 10-1-75, Formerly 19-4.05, Repealed 2-10-82.

Fla. Admin. Code R. 19-4.0051 Policies and Review Procedures for Florida Retirement System Investments in Intermediate to Long-Term Fixed Income Securities

History

Rulemaking Authority 215.52 FS. Law Implemented 215.44, 215.45, 215.47 FS. History–New 2-10-82, Amended 12-25-85, Formerly 19-4.051, Repealed 6-8-14.

Fla. Admin. Code R. 19-4.006 Policies and Review Procedures for Florida Retirement System Money Market Investments

History

Rulemaking Authority 215.52 FS. Law Implemented 215.44, 215.45, 215.47 FS. History–New 2-10-82, Amended 12-25-85, Formerly 19-4.06, Amended 12-18-88, Repealed 6-8-14.

Fla. Admin. Code R. 19-4.007 Policies and Review Procedures for Debt Service Investments

History

Rulemaking Authority 215.52, 120.53(1) FS. Law Implemented 215.44, 215.45, 215.47 FS. History–New 8-24-82, Formerly 19-4.07, Transferred to 19-4.081.

Fla. Admin. Code R. 19-4.0071 Policies and Review Procedures for Florida Retirement System Real Property Investments

History

Rulemaking Authority 215.52 FS. Law Implemented 215.47(2)(i) FS. History–New 11-9-83, Formerly 19-4.08, Amended 12-25-85, Formerly 19-4.071, Amended 12-18-88, 5-16-90, Repealed 6-8-14.

Fla. Admin. Code R. 19-4.008 Policies and Review Procedures for Real Property Investments

History

Rulemaking Authority 215.52, 120.53(1) FS. Law Implemented 215.47(2)(i) FS. History–New 11-9-83, Formerly 19-4.08, Transferred to 19-4.071.

Fla. Admin. Code R. 19-4.0081 Policies and Review Procedures for Debt Service Investments

(1) Investments and the maturities of those investments for debt service sinking funds, including those reserve funds in excess of the current or next ensuing year’s principal and interest payment, shall be managed consistent with the provisions of the authorizing bond resolutions, official statements and the current investment strategy of the Board.

(2) The maturity structure of the debt service reserve fund shall be determined by the professional judgment of the Board’s investment staff and will include consideration of the following factors:

(a) Ratio of reserves to principal debt outstanding.

(b) Number of years remaining in the life of the issue.

(d) Ratio of annual revenue to annual debt service requirements.

(e) Historical rate of increase of pledged revenue.

(f) Alternative revenue and other sources available for the payment of the bonds.

(g) Yield and premium for maturity extension.

History

Rulemaking Authority 215.52 FS. Law Implemented 215.44, 215.45, 215.47 FS. History–New 8-24-82, Formerly 19-4.07, Amended 12-25-85, Formerly 19-4.081.

Fla. Admin. Code R. 19-4.0082 Reporting of Debt Service Accounts

The Executive Director shall report to the Board by March 15th of each year as to the status of all debt service accounts for bonds issued pursuant to Chapter 215, F.S. In the event there is a projected need to appropriate funds to honor the pledges of Full Faith and Credit of the State, the Executive Director shall also prepare a report for the Board for delivery to the Legislature which shall include the estimated amount of appropriations needed, the estimated maximum amount of appropriations needed, and a contingency appropriations request for each bond issue.

History

Rulemaking Authority 215.52, 215.62(5), 215.835 FS. Law Implemented 215.70(3), 215.80 FS. History–New 12-25-85, Formerly 19-4.082.

Fla. Admin. Code R. 19-4.0083 Annual Fund Performance Report to Legislature

History

Rulemaking Authority 215.52, 120.53(1) FS. Law Implemented 215.44 FS. History–New 2-13-90, Repealed 2-16-92.

Fla. Admin. Code R. 19-4.0021 Investment Advisory Committee

History

Rulemaking Authority 215.52, 120.53(1) FS. Law Implemented 215.44, 215.45, 215.47 FS. History–New 2-10-82, Amended 8-24-82, Formerly 19-4.021, Repealed 12-25-85.

Chapter 19-5 RULES AND REGULATIONS GOVERNING THE PROCEDURES FOR ISSUANCE OF BONDS AT AN INTEREST RATE IN EXCESS OF LEGAL LIMITATION

Fla. Admin. Code R. 19-5.001 Interest Rate Limitation on Sale of Bonds of Governmental Units

(1) Bonds of any governmental unit may be sold at an interest rate in excess of the maximum set by law, only if application has been made to the State Board of Administration and authority is granted to the governmental unit by the Board pursuant to Section 215.84, F.S., in the case of tax exempt bonds, or Section 159.825, F.S., in the case of taxable bonds. Provided, however, in determining whether or not the governmental unit has complied with the interest rate limitation set forth in Section 215.84(3), F.S., in the issuance of their bonds, where the purchaser of any such bonds is the U.S. Department of Agriculture, Farmers Home Administration, such obligations shall be deemed sold when Farmers Home Administration gives a binding commitment to purchase the bonds even though such commitment is subject to conditions subsequent such as completion of the project being financed with bond proceeds and the computation of adding 300 basis points to The Bond Buyer “20 Bond Index” published immediately preceding the first day of the calendar month in which the bonds are sold shall be computed on the date of such commitment.

(2) The maximum interest rate limitation specified in Section 215.84, F.S., in the case of tax exempt bonds, or Section 159.825, F.S., in the case of taxable bonds, does not apply to bonds within the rating categories of A or better by Moody’s Investors Services, Inc., Standard & Poor’s Corporation, or Fitch Investors Service, Inc., or, in the case of short-term obligations or notes, within the rating categories of MIG2 or VMIG2 or better by Moody’s Investors Services, Inc., SP-2 or better by Standard and Poor’s Corporation, or F-2 or better by Fitch Investors Service, Inc.

(3) Any governmental unit requesting authority to sell its obligations at an interest rate in excess of the maximum set by law shall make application to the State Board of Administration requesting such authority. The application shall be in writing and signed by a responsible official of the governmental unit issuing the bonds or notes. The application shall specify the maximum average net interest cost rate at which the governmental unit is requesting authority to sell its obligations, and shall state the reasons requiring the sale of the bonds at an average net interest rate in excess of the maximum set by law. The following documents or information must be included with the application:

(a) The official statement or prospectus, if available, or similar information relating to the sale of the bonds;

(b) The resolution or ordinance authorizing the issuance of the bonds;

(d) The most recent financial statement of the governmental unit;

(e) A certified copy of Judgment of Validation if the bonds have been validated;

(f) Information relating to sale of the bonds, including whether they will be sold at public or private sale and the amount of the discount, if any; and

(g) Any other pertinent document or information specifically requested.

(4) After receipt by the Board of the governmental unit’s application and materials referenced in subsection (3), above, the Board may authorize the sale of bonds at an average net interest cost rate in excess of the statutory interest limitation after an informal review by the Executive Director.

(a) The Board in making its determination shall consider, but not be limited to considering,

Comparable sales of bonds or other debt of governmental units, and
Documented evidence that the objectives and the intent of issuing the bonds will be realized,

(b) The Executive Director in conducting the informal review shall consider the items in paragraph (a), and may consider other aspects of the bonds, including without limitation,

Whether the bonds will be privately-placed to accredited investors or publicly-offered, directly or indirectly, such as part of a mutual fund, to individuals,
The minimum denomination of the bonds,
If the bonds are to finance a project, the principal amount of the bonds relative to other sources of financing of the project,
The amortization schedule of the bonds, and
The frequency with which the issuer issues bonds.

(c) Information regarding comparable sales of bonds or other debt of governmental units may be provided by a report of staff of the Board or the Division of Bond Finance or by a report of a financial advisor to the Board or the Division of Bond Finance. Documented evidence that the objectives and intent of issuing the bonds will be realized may include, without limitation, statements in the official statement, prospectus or credit underwriting report for the bonds (if applicable) or other evidence, such as construction performance bonds or similar insurance or guarantees, indicating that the project or facility financed by such bonds or debt is reasonably expected to be completed. The Executive Director shall complete the informal review within a reasonable time after receipt of all information required or requested pursuant to these rules but in no event shall the Executive Director be required to complete the informal review sooner than thirty (30) days after receipt of the governmental unit’s completed application.

(d) Upon completion of the informal review, the Executive Director shall provide a report to the Board including the Executive Director’s recommendation with respect to the governmental unit’s request for the sale of bonds at an average net interest rate in excess of the maximum set by law, or shall communicate to the governmental unit that no recommendation can be made and shall provide to the governmental unit a short statement for the reasons therefor. The Board, at a meeting subsequent to the prepraration of the report of the Executive Director, may consider this recommendation in determining whether to authorize the issuance of such bonds at an average net interest rate in excess of the maximum set by law.

(e) The Executive Director may utilize the services and staff of the Board, any other state governmental entity, including without limitation, the Division of Bond Finance, or a financial advisor to the Board or the Division of Bond Finance in conducting the informal review.

(f) The informal review provided for herein is an agency investigation preliminary to agency action within the meaning of Section 120.57(5), F.S.

(5) The Board’s authorization, with respect to a specific issue or reissue of bonds, of a specified maximum average net interest cost rate in excess of the maximum set by law shall expire one hundred eighty (180) days after the date of the Board’s authorization with respect to such issue or reissue of bonds.

(6) The official statement or prospectus shall contain a statement that the authorization of the State Board of Administration for the issuing agency to sell its obligations at an interest rate in excess of the maximum permitted by law is made pursuant to Section 215.84, F.S., in the case of tax exempt bonds or Section 159.825, F.S., in the case of taxable bonds, and is not to be construed as an approval or recommendation of the issue by the State Board of Administration.

History

Rulemaking Authority 159.825(3), 215.52, 215.84(5) FS. Law Implemented 159.825, 215.84 FS. History–New 10-23-75, Repealed and Readopted 10-14-80, Amended 2-1-83, 12-25-85, Formerly 19-5.01, Amended 12-10-87, 10-6-96, 10-15-13.

Fla. Admin. Code R. 19-5.0011 Limitations Not Applicable to Certain Bonds

History

Rulemaking Authority 159.825(3), 215.84(5) FS. Law Implemented 159.825, 215.84 FS. History–New 10-23-75, Repealed and Readopted 10-14-80, Amended 12-25-85, Formerly 19-5.011, Amended 12-10-87, 11-19-92, Repealed 10-15-13.

Fla. Admin. Code R. 19-5.002 Application

History

Rulemaking Authority 159.825(3), 215.84(5) FS. Law Implemented 215.84 FS. History–New 10-23-75, Amended 9-29-76, Repealed and Readopted 10-14-80, Formerly 19-5.02, Repealed 10-15-13.

Fla. Admin. Code R. 19-5.003 Limitations on Authorization of Interest Rate

History

Rulemaking Authority 159.825(3), 215.84(5) FS. Law Implemented 215.84 FS. History–New 10-23-75, Repealed and Readopted 10-14-80, Amended 2-10-82, Formerly 19-5.03, Repealed 10-15-13.

Fla. Admin. Code R. 19-5.004 Term of Authorization

History

Rulemaking Authority 159.825(3), 215.84(5) FS. Law Implemented 215.84 FS. History–New 10-23-75, Repealed and Readopted 10-14-80, Formerly 19-5.04, Repealed 10-15-13.

Fla. Admin. Code R. 19-5.005 Purpose of Authorization

History

Rulemaking Authority 159.825(3), 215.84(5) FS. Law Implemented 159.825, 215.84 FS. History–New 10-23-75, Repealed and Readopted 10-14-80, Formerly 19-5.05, Amended 12-10-87, Repealed 10-15-13.

Chapter 19-7 RULES AND REGULATIONS GOVERNING THE ADMINISTRATION OF THE LOCAL GOVERNMENT SURPLUS FUNDS TRUST FUND

Fla. Admin. Code R. 19-7.001 Purpose

History

Rulemaking Authority 218.405, 218.412 FS. Law Implemented Chapter 218, Part IV FS. History–New 8-24-82, Formerly 19-7.01, Amended 3-26-02, Repealed 4-11-12.

Fla. Admin. Code R. 19-7.002 Investment Policy Statements

History

Rulemaking Authority 218.405(4), 218.412, 218.421(1) FS. Law Implemented 218.405(1), (2), (3), (4), 218.409(2), (9), 218.415(17) FS. History–New 12-13-09, Amended 4-11-12, 1-18-14, 11-20-14, 2-18-16, 2-9-17, 2-12-18, 2-19-19, 4-8-20, 12-8-25, Repealed 6-25-26.

Fla. Admin. Code R. 19-7.010 Pooled Investment Accounts

History

Rulemaking Authority 218.405, 218.412 FS. Law Implemented Chapter 218, Part IV FS. History–New 8-24-82, Formerly 19-7.10, Amended 3-26-02, 9-5-10, Repealed 10-6-15.

Fla. Admin. Code R. 19-7.011 Rate of Return Calculation

The Rate of Return for the Local Government Surplus Funds Trust Fund shall be calculated in accordance with the yield methodology set forth by the Securities and Exchange Commission (SEC) Rule 2a-7 (17 CFR §270.2a-7) under the Investment Company Act of 1940 for money market funds. Rule 2a-7 can be obtained by accessing the SEC website at sec.gov and clicking on the Laws & Regulations section. For the purposes of comparing the yield of the Local Government Surplus Funds Trust Fund to that of a performance benchmark for participant reporting, a net-of-fees methodology will be utilized for all reporting periods for both the Local Government Surplus Funds Trust Fund and the performance benchmark.

History

Rulemaking Authority 218.405, 218.412 FS. Law Implemented 218.409(4) FS. History–New 8-24-82, Formerly 19-7.11, Amended 4-8-92, 3-26-02, 9-5-10.

Fla. Admin. Code R. 19-7.012 Pool Participation

History

Rulemaking Authority 218.405, 218.412 FS. Law Implemented 218.407(2), 218.409(1), (3) FS. History–New 8-24-82, Formerly 19-7.12, Amended 12-20-87, 2-16-92, 3-26-02, Repealed 9-5-10.

Fla. Admin. Code R. 19-7.013 Reporting Procedures

The State Board of Administration shall generate for each Pool participant a monthly statement containing each account’s activity including deposits, withdrawals, balances, and earnings. If no errors are reported to the Board within 14 days, the statement will be considered correct.

History

Rulemaking Authority 218.405, 218.412 FS. Law Implemented 218.409(6) FS. History–New 8-24-82, Formerly 19-7.13, Amended 12-18-88, 11-7-99, 3-26-02, 9-5-10.

Fla. Admin. Code R. 19-7.014 Number of Accounts

History

Rulemaking Authority 218.405, 218.412 FS. Law Implemented 218.409(5) FS. History–New 8-24-82, Formerly 19-7.14, Amended 12-2-93, 3-26-02, Repealed 1-28-14.

Fla. Admin. Code R. 19-7.015 Allocation of Earnings

The Local Government Surplus Funds Trust Fund System is used to keep current account balance information for individual accounts participating in the pooled investment account and to apportion the pooled investment earnings back to each account. At the end of each month, pool month-to-date accrued earnings minus accrued expenses are apportioned to the participants directly proportionate to the respective net amounts deposited in the Fund and the length of time such amounts remain therein. The resulting proportionate amount is credited to each account at that time. If the end of the month account balance falls below $1,000.00, the State Board of Administration may choose to close the account and return the residual balance to the participant.

History

Rulemaking Authority 218.405, 218.412 FS. Law Implemented 218.409(4), (5) FS. History–New 8-24-82, Formerly 19-7.15, Amended 6-26-95, 3-26-02, 9-5-10.

Fla. Admin. Code R. 19-7.016 Close of Business

Any requests for funds to be returned or notification of funds to be wired for investment after 1:00 p.m. (EST) may be included in the following day’s business. In the event that the Board is informed by 1:00 p.m. (EST) of a deposit for investment that day, and the funds are not transmitted to the Board’s bank account by the close of business that day, which results in a shortfall, a fee shall be charged to the participant for each day until the shortfall is corrected. The fee will be based on the current overdraft fee charged by the bank on the amount of the shortfall.

History

Rulemaking Authority 218.405, 218.412 FS. Law Implemented 215.515 FS. History–New 8-24-82, Formerly 19-7.16, Amended 6-26-95, 3-26-02, 9-5-10.

Fla. Admin. Code R. 19-7.017 Pooled Investment Account Reserve Fund

History

Rulemaking Authority 218.405, 218.412 FS. Law Implemented 218.409(3) FS. History–New 8-17-92, Amended 3-26-02, Repealed 9-5-10.

Chapter 19-8 ADMINISTRATION OF THE FLORIDA HURRICANE CATASTROPHE FUND

Fla. Admin. Code R. 19-8.001 Purpose

History

Rulemaking Authority 120.53(1), 215.555 FS. Law Implemented 215.555 FS. History–New 5-31-94, Repealed 10-2-11.

Fla. Admin. Code R. 19-8.002 Definitions Applicable to the 1994-1995 Contract Year

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555 FS. History–New 6-12-95, Amended 7-19-95, Repealed 9-1-99.

Fla. Admin. Code R. 19-8.003 Hurricane Mitigation

History

Rulemaking Authority 215.555(7) FS. Law Implemented 215.555 FS. History–New 5-13-03, Repealed 5-29-05.

Fla. Admin. Code R. 19-8.004 Aggregate Retention Levels

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555 FS. History–New 6-12-95, Repealed 9-1-99.

Fla. Admin. Code R. 19-8.005 Special Provisions

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555 FS. History–New 6-12-95, Repealed 9-1-99.

Fla. Admin. Code R. 19-8.006 Insurer Reporting

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555 FS. History–New 6-12-95, Repealed 9-1-99.

Fla. Admin. Code R. 19-8.007 Borrowing Capacity

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555 FS. History–New 6-12-95, Repealed 8-29-95.

Fla. Admin. Code R. 19-8.008 Enforcement

History

Rulemaking Authority 215.555(10) FS. Law Implemented 215.555 FS. History–New 6-12-95, Repealed 5-28-98.

Fla. Admin. Code R. 19-8.009 1994 Reimbursement Premium Formula

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555(5) FS. History–New 7-19-95, Repealed 9-1-99.

Fla. Admin. Code R. 19-8.010 Reimbursement Contract

(1)(a) The reimbursement contract for the 2026-2027 contract year, http://flrules.org/Gateway/reference.asp?No=ref-18682, including all Amendments and Addenda, required by Section 215.555(4), F.S., which is called Form FHCF-2026K-“Reimbursement Contract” or “Contract” between (name of insurer) (the “Company”)/NAIC #( ) and The State Board of Administration of the State of Florida (“SBA”) which administers the Florida Hurricane Catastrophe Fund (“FHCF”), rev. 11/25 is hereby adopted and incorporated by reference into this rule. This contract is effective from June 1, 2026 through May 31, 2027.

(b) Appendix A, for the 2026-2027 contract year, http://flrules.org/Gateway/reference.asp?No=ref-18683, required by Section 215.555(5)(e), F.S., which is called Form FHCF-2026K-1 “Appendix A to Reimbursement Contract” between (name of insurer) (the “Company”)/NAIC #( ) and The State Board of Administration of the State of Florida (“SBA”) which administers the Florida Hurricane Catastrophe Fund (“FHCF”), rev. 11/25 is hereby adopted and incorporated by reference into this rule. This appendix is effective from June 1, 2026 through May 31, 2027.

(2)(a) The reimbursement contract for the 2025-2026 contract year, http://www.flrules.org/Gateway/reference.asp?No=ref-17132, including all Amendments and Addenda, required by Section 215.555(4), F.S., which is called Form FHCF-2025K-“Reimbursement Contract” or “Contract” between (name of insurer) (the “Company”)/NAIC #( ) and The State Board of Administration of the State of Florida (“SBA”) which administers the Florida Hurricane Catastrophe Fund (“FHCF”), rev. 11/24 is hereby adopted and incorporated by reference into this rule. This contract is effective from June 1, 2025 through May 31, 2026.

(b) Appendix A, for the 2025-2026 contract year, http://www.flrules.org/Gateway/reference.asp?No=ref-17133, required by Section 215.555(5)(e), F.S., which is called Form FHCF-2025K-1 “Appendix A to Reimbursement Contract” between (name of insurer) (the “Company”)/NAIC #( ) and The State Board of Administration of the State of Florida (“SBA”) which administers the Florida Hurricane Catastrophe Fund (“FHCF”), rev. 11/24 is hereby adopted and incorporated by reference into this rule. This appendix is effective from June 1, 2025 through May 31, 2026.

(3) The reimbursement contract form may be obtained by accessing the FHCF website at https://fhcf.sbafla.com; by submitting a written request to the State Board of Administration at P. O. Box 13300, Tallahassee, Florida 32317-3300; or by calling (850)413-1335.

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555 FS. History–New 5-31-94, Amended 8-29-95, 5-19-96, 6-19-97, 5-28-98, 5-17-99, 9-13-99, 6-19-00, 6-3-01, 6-2-02, 11-12-02, 5-13-03, 5-19-04, 8-29-04, 5-29-05, 11-13-05, 5-10-06, 9-5-06, 5-8-07, 8-13-07, 6-8-08, 9-2-08, 3-30-09, 8-23-09, 3-29-10, 8-8-10, 12-12-10, 9-11-11, 12-19-11, 11-18-12, 12-2-13, 11-12-14, 6-2-15, 1-3-16, 11-9-16, 12-6-17, 1-29-19, 9-17-19, 11-12-19, 11-17-20, 11-10-21, 8-18-22, 10-11-22, 12-19-23, 11-13-24, 12-2-25.

Fla. Admin. Code R. 19-8.011 Loss Reimbursement Procedures

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555 FS. History–New 5-20-96, Amended 2-17-97, 11-25-97, 12-3-98, Repealed 6-19-00.

Fla. Admin. Code R. 19-8.012 Procedures to Determine Ineligibility for Participation in the Florida Hurricane Catastrophe Fund and to Determine Exemption from Participation in the Florida Hurricane Catastrophe Fund due to Limited Exposure

(1) Purpose. The purpose of this rule is to establish procedures to determine ineligibility for participation in the Florida Hurricane Catastrophe Fund (FHCF) and to establish procedures to determine whether an insurer may be exempted from subsections (4) and (5) of Section 215.555, F.S., because it has less than $10 million in aggregate exposure for covered policies.

(2) Procedures to Determine Ineligibility for Participation in the FHCF.

(a) An insurer must apply for ineligibility from participation in the FHCF if it has surrendered its certificate of authority to write insurance in Florida. To apply, the insurer shall submit a written request for ineligibility stating that it will have no covered policies, as that term is defined in Section 215.555(2)(c), F.S., after May 31 of the year for which the ineligibility is sought and provide a copy of the Office of Insurance Regulation Order or letter, if any, surrendering or revoking the insurer’s authority to write insurance in Florida. The request shall be sent to the FHCF Administrator.

(b) An insurer which is not surrendering its certificate of authority to write insurance in Florida must apply for ineligibility from participation in the FHCF if it no longer has any covered policies in force, as that term is defined in Section 215.555(2)(c), F.S. To apply, the insurer shall submit a written request for a determination regarding its ineligibility for participation. The request shall be sent, no later than September 1 of the current contract year, to the FHCF Administrator, and shall contain the following information:

A detailed explanation of any premium appearing on the insurer’s Florida Exhibit of Premiums and Losses of the National Association of Insurance Commissioners annual statement for lines of business which may contain covered policies as defined by Section 215.222(2)(c), F.S.
A copy of the insurer’s Exhibit of Premiums and Losses of the annual statement, required by Section 624.424, F.S., and any rules adopted thereunder, for the State of Florida for the applicable year.
Form FHCF-E1, “Statement related to Covered Policies as defined in Section 215.555(2)(c), F.S., http://www.flrules.org/Gateway/reference.asp?No=Ref-18204” rev. 07/25, signed by two executive officers attesting to the fact that the insurer writes no covered policies. Form FHCF-E1 is hereby adopted and incorporated by reference into this rule. The form may be obtained from the FHCF website at https://fhcf.sbafla.com.

(c) The State Board of Administration of Florida (“SBA”) shall review the information received pursuant to paragraph (a) or (b), above.

If the SBA determines that the insurer writes covered policies, as defined in Section 215.555(2)(c), F.S., and in Article V of the reimbursement contract, as adopted and incorporated by reference in Rule 19-8.010, F.A.C., and must therefore participate in the FHCF as required by Section 215.555(4)(a), F.S., the SBA will notify the insurer that its request has been denied. All insurers determined to be participants in the FHCF will be required to enter into a reimbursement contract with the SBA and will be subject to all premium payments and interest thereon, as well as fees for inadequate exposure data.
If the SBA determines that the insurer does not write covered policies, as defined in Section 215.555(2)(c), F.S., and in Article V of the reimbursement contract, as adopted and incorporated by reference in Rule 19-8.010, F.A.C., the SBA will notify the insurer that its request has been approved. This ineligibility continues until the insurer once again begins writing covered policies. The insurer must immediately notify the SBA if it begins writing covered policies.

(d) Any Company granted ineligibility status which fails to execute and return the reimbursement contract to the FHCF within thirty days of writing its first covered policy following the grant of ineligibility status shall not be eligible for reimbursement for any covered losses from a covered event occurring prior to the receipt by the FHCF of the executed reimbursement contract.

(3) Procedures to Determine Exemption from the FHCF Due to Limited Exposure.

(a) A current participant requesting exemption from participation in the FHCF because its exposure for covered policies, as defined in Section 215.555(2)(c), F.S., and in Article V of the reimbursement contract, as adopted and incorporated by reference in Rule 19-8.010, F.A.C., is less than $10 million in the aggregate shall submit a written request for a determination regarding such an exemption no later than September 1 of the current contract year.

(b) If requested within thirty days of writing its first covered policy, a new participant, as defined in Article V of the reimbursement contract, may request exemption if its exposure is less than $10 million in the aggregate and is expected to remain less than $10 million in the aggregate for the remainder of the contract year.

(c) The request shall be emailed to the FHCF Administrator. The insurer shall submit the following information no later than September 1 of the current contract year:

A detailed explanation of any premium appearing on the insurer’s Florida Exhibit of Premiums and Losses of the National Association of Insurance Commissioners annual statement for lines of business which may contain covered policies.
A copy of the insurer’s Exhibit of Premiums and Losses of the annual statement, required by Section 624.424, F.S., and any rules adopted thereunder, for the State of Florida for the applicable year.
Form FHCF-E2, “Information regarding De Minimis FHCF Covered Policies In-force at June 30, ____, http://www.flrules.org/Gateway/reference.asp?No=Ref-18205” rev. 07/25. Form FHCF-E2 is hereby adopted and incorporated by reference into this rule. The form may be obtained from the FHCF website at https://fhcf.sbafla.com.
Form FHCF-E3, “Statement related to De Minimis Aggregate Exposure for Covered Policies as defined in Section 215.555(2)(c), F.S., on behalf of _____, http://www.flrules.org/Gateway/reference.asp?No=Ref-18206” rev. 07/25, signed by two executive officers attesting to the fact that the insurer writes no covered policies with an aggregate exposure of $10 million or more. Form FHCF-E3 rev. 05/08, is hereby adopted and incorporated by reference into this rule. The form may be obtained from the FHCF website at https://fhcf.sbafla.com.

(d) The SBA shall review the information received pursuant to paragraph (c), above.

If the SBA determines that the insurer has an aggregate exposure of $10 million or more for covered policies, as defined in Section 215.555(2)(c), F.S., and in Article V of the reimbursement contract, as adopted and incorporated by reference in Rule 19-8.010, F.A.C., and must therefore participate in the FHCF as required by Section 215.555(4)(a), F.S., because it does not qualify for the exemption permitted by Section 215.555(3), F.S., the SBA will notify the insurer that its request has been denied. All insurers determined to be participants in the FHCF will be required to enter into a reimbursement contract with the SBA and will be subject to all premium payments and interest thereon, as well as fees for inadequate exposure data.
If the SBA determines that the insurer has an aggregate exposure of less than $10 million for covered policies, as defined in Section 215.555(2)(c), F.S., and in Article V of the reimbursement contract, as adopted and incorporated by reference in Rule 19-8.010, F.A.C., and that granting the exemption will not adversely affect the actuarial soundness of the FHCF, the SBA will notify the insurer that its request has been approved and note that the insurer must immediately notify the SBA if its exposure becomes $10 million or more in the aggregate. If this occurs, the insurer will be treated as a “new participant” and subject to the requirements of Article X(1) and X(2) of the FHCF Reimbursement Contract.

(e) The exemption for minimal exposure permitted by Section 215.555(3), F.S., is optional for the insurer but, once the exemption is requested, cannot be withdrawn by the insurer. An insurer with less than $10 million in aggregate exposure for covered policies is not required to ask for an exemption from the FHCF. Such an insurer may continue to participate in the FHCF if it so desires. An insurer which has been granted an exemption from the FHCF may request to be reinstated in the FHCF as a participating member. However, such a request must be made prior to June 1 of a contract year. No insurer which has been granted an exemption under this subsection shall be reinstated during the Atlantic Hurricane Season, which begins June 1 and ends November 30 of each year, so long as its aggregate exposure remains below $10 million.

(f) The exemptions for minimal exposure permitted by Section 215.555(3), F.S., shall not be granted by the SBA if the aggregate number of anticipated exemptions adversely affects the actuarial soundness of the FHCF.

(g) Any Company granted de minimis exempt status which fails to execute and return the reimbursement contract to the FHCF within thirty days of writing a covered policy that results in the insurers aggregate covered exposure exceeding $10 million shall not be eligible for reimbursement for any covered losses occurring from a covered event prior to the receipt by the FHCF of the executed reimbursement contract.

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555(2)(c), (3), (4), (5) FS. History–New 2-17-97, Amended 6-2-02, 5-13-03, 5-19-04, 5-29-05, 5-10-06, 6-8-08, 3-30-09, 3-29-10, 8-8-10, 7-31-25.

Fla. Admin. Code R. 19-8.013 Revenue Bonds Issued Pursuant to Section 215.555(6), F.S

(1) Purpose. This rule establishes the SBA policy regarding the issuance of revenue bonds pursuant to Section 215.555(6), F.S. The rule provides definitions; interprets certain terms in Section 215.555, F.S.; establishes factors for determining when to issue revenue bonds, the amount of any such revenue bonds, and the source for repayment of any such revenue bonds; and establishes procedures for levying Emergency Assessments pursuant to Section 215.555(6)(b), F.S.

(2) Definitions. The terms defined below will be capitalized in this rule.

(a) Assessable Insurer means Authorized Insurers writing property and casualty business in this state and any entity created pursuant to Section 627.351, F.S. Surplus lines insurers are not Assessable Insurers. Reinsurers are not Assessable Insurers.

(b) Assessable Insured means each insured procuring property and casualty coverage from surplus lines insurers regulated under Part VIII of Chapter 626, F.S.

(c) Assessable Lines means those lines of property and casualty business subject to assessment under Section 215.555(6)(b)1., F.S., and as more fully described in subsection (5), below.

(d) Authorized Insurer means an insurer as defined in Section 624.09(1), F.S. For purposes of this rule, Authorized Insurer includes Citizens Property Insurance Corporation and any joint underwriting association or similar entity created pursuant to Section 627.351, F.S.

(e) Balance of the Fund and Fund Balance has the same meaning given to Balance of the FHCF as of December 31 in Article V of the Reimbursement Contract adopted and incorporated by reference into Rule 19-8.010, F.A.C.

(f) Contract Year means the time period which begins at 12:00:01 (Eastern Time) on June 1 of each calendar year and ends at 12:00 p.m. midnight on May 31 of the following calendar year.

(g) Corporation means the State Board of Administration Finance Corporation created by Section 215.555(6)(d), F.S.

(h) Covered Event means a hurricane as defined in Section 215.555(2)(b), F.S., and in Article V of the Reimbursement Contract adopted and incorporated by reference in Rule 19-8.010, F.A.C.

(i) Covered Policies means an insurance policy covering residential property, as defined in Section 215.555(2)(c), F.S., and in Article V of the Reimbursement Contract adopted and incorporated by reference in Rule 19-8.010, F.A.C.

(j) Emergency Assessment means the assessment levied by the OIR at the direction of the SBA on direct written premiums for all Assessable Lines pursuant to and subject to the exceptions in Section 215.555(6)(b), F.S., and as more fully described in subsection (5) of this rule.

(k) FHCF means the Florida Hurricane Catastrophe Fund.

(l) OIR means the Office of Insurance Regulation.

(m) Participating Insurer means an insurer which writes Covered Policies in this state and which has entered into a Reimbursement Contract with the SBA, pursuant to Section 215.555(4)(a), F.S.

(n) Reimbursement Contract means the annual contract required pursuant to Section 215.555(4)(a), F.S., which provides coverage to Participating Insurers for losses to covered property during a Covered Event.

(o) Reimbursement Premium means the premium determined by multiplying each $1,000 of insured value reported by the Participating Insurer in accordance with Section 215.555(5), F.S., by the rate as derived from the premium formula as described in Rule 19-8.028, F.A.C.

(p) SBA means the State Board of Administration of Florida.

(3) Limitations on the FHCF Liability. The FHCF liability under the Reimbursement Contracts for Covered Events in a Contract Year is determined pursuant to Section 215.555(4)(c)1., F.S.

(4) Determinations Regarding Bond Issuance.

(a) General Factors for Use in Determining Whether to Issue Bonds. Based on the requirements of Section 215.555, F.S., on all rules adopted pursuant thereto, and on the foregoing interpretations, the SBA determines that the Legislature intended the FHCF to be a sustainable, permanent, and continuing trust fund established within the meaning of Article III, section 19 of the Florida Constitution which is available to pay reimbursable losses for Covered Events in more than one year. The SBA further determines that the Legislature deliberately and purposefully limited the FHCF’s liability as to Covered Events in any one Contract Year in order to provide for an on-going FHCF. The SBA determines that in its fiduciary capacity regarding the FHCF, it is prudent to adopt the interpretations set out in this rule and to conform all its other policies, rules, and methods of operation to those fiduciary responsibilities and interpretations.

(b) Quality of Bonds to be Issued. The SBA finds that in order to fulfill its fiduciary responsibilities to maintain and enhance the on-going viability and credibility of the FHCF and to operate in the most cost-efficient manner, all revenue bonds issued to pay reimbursable losses shall be investment grade bonds, except to the extent that revenue bonds other than investment grade are needed to pay a small amount of legitimate but unexpected reimbursable losses. Upon the occurrence of such an exception, any revenue bonds issued will be issued only after a determination by the SBA that the issuance of such bonds is fiscally responsible, in light of the SBA’s fiduciary responsibilities.

If the SBA determines that the amount of revenue produced under Section 215.555(5), F.S., is insufficient to fund the obligations, costs, and expenses of the FHCF and the Corporation, including repayment of revenue bonds and that portion of debt service coverage not met by Reimbursement Premiums, the SBA shall direct the OIR to levy an Emergency Assessment on direct written premiums for all Assessable Lines. In making this determination, the SBA may consider the projected Balance of the Fund; anticipated additional FHCF revenues; the meteorological severity and geographical area impacted by each Covered Event; estimates of losses from the insurance industry, from individual insurers, from federal, state, and local emergency response entities, from loss reports submitted to the SBA by Participating Insurers, from reviews of loss reports by the FHCF’s Administrator, from information provided by modeling companies, from claims development patterns derived from known historical events, from an analysis of market shares of Participating Insurers in the impacted area, and any other credible sources of loss information; and any other information determined by the SBA to be relevant.
Except as required by Section 215.555(7)(c), F.S., or as described in the following sentence, Reimbursement Premiums, together with earnings thereon, received in a given Contract Year will be used only to pay for losses attributable to Covered Events occurring in that Contract Year or for losses attributable to Covered Events in subsequent Contract Years and will not be used to pay for past losses or for debt service on tax-exempt post-event revenue bonds. Pursuant to Section 215.555(6)(a)1., F.S., Reimbursement Premiums, and earnings thereon may be used for payments relating to tax-exempt post-event revenue bonds in the event Emergency Assessments are insufficient. If Reimbursement Premiums are used for debt service on tax-exempt post-event revenue bonds, then the amount of the Reimbursement Premiums, or earnings thereon so used shall be returned, without interest, to the FHCF when Emergency Assessments or other legally available funds remain available after making payments relating to such revenue bonds and any other purposes for which Emergency Assessments were levied.

(d) Specific Procedures Regarding Issuance of Bonds, Notes, Debentures or Other Evidences of Financial Indebtedness on a Pre-Event Basis. In making a determination to authorize the issuance of revenue bonds on a Pre-event basis (“in the absence of a hurricane”), pursuant to Section 215.555(6)(a), F.S., the SBA shall consider the following factors: the projected Fund Balance; reserves for mitigation appropriations; estimated amounts needed for administration of the FHCF; projected amounts of future Reimbursement Premiums; projected amounts of earnings on collected Reimbursement Premiums; the projected frequency and magnitude of future Covered Events; current and projected interest rates on revenue bonds; current and projected market conditions for the sale of revenue bonds; projected credit ratings for the FHCF and for revenue bonds issued on behalf of the FHCF; current and projected availability of bond insurance or other credit enhancement for revenue bonds; the costs of issuance of revenue bonds; the debt service requirements of the revenue bonds; the estimated value, both monetary and non-monetary, of the issuance of Pre-event bonds on the costs of Post-event bonds in terms of benchmark pricing, secondary market trading, investor education, confidence of insurers and reinsurers in the FHCF’s ability to issue revenue bonds Post-event, market education, and document preparation; and any other factors relevant to the determination at the time such determination is made.

(e) Specific Procedures for Issuance of Revenue Bonds on a Post-Covered Event Basis. Upon the occurrence of a Covered Event for which the SBA determines that moneys in the FHCF are or will be insufficient to pay reimbursement at the levels promised in the Reimbursement Contracts:

The SBA will determine the projected reimbursable losses of Participating Insurers, whether or not the FHCF has or will have sufficient funds to reimburse Participating Insurers for their reimbursable losses, and the estimated shortfall which shall be covered by the issuance of revenue bonds or through incurrence of other indebtedness.
Based on the amount of the shortfall determined in accordance with subparagraph 1., above, the SBA will determine the needed percentage of direct premium written for Assessable Lines. The Emergency Assessment percentage will be determined as follows:

a. The SBA will review available information, from the OIR, the Florida Surplus Lines Service Office and the National Association of Insurance Commissioners, regarding direct premiums written for Assessable Lines in Florida, reportable pursuant to Section 624.424, F.S., or pursuant to Part VIII of Chapter 626, F.S.

b. The SBA will review and assess existing market conditions regarding the issuance and sale of bonds or the incurrence of other indebtedness to determine the amount of revenues which will be required to pay debt service on any bonds issued or other indebtedness incurred.

c. Based on the specific information described above and on any other information determined by the SBA to be relevant, the SBA will determine the Emergency Assessment percentage necessary to fund the obligations, costs, and expenses of the FHCF and the Corporation including repayment of revenue bonds and that portion of the debt service coverage not met by Reimbursement Premiums, and shall adopt a resolution directing the OIR to levy the Emergency Assessment on all Assessable Lines.

The Emergency Assessment is subject to interest on delinquent remittances at the average rate earned by the SBA for the six months preceding the start of the Contract Year plus 5 percent. The Emergency Assessment is also subject to annual adjustments by the SBA in order to meet debt obligations.

(5) Procedures regarding Levying Emergency Assessments Pursuant to Section 215.555(6)(b), F.S.

(a) If the SBA directs the OIR to levy Emergency Assessments, then the OIR shall issue Orders to the Florida Surplus Lines Service Office and to each Assessable Insurer levying an Emergency Assessment for the Assessable Lines set out in paragraph (d), below.

(b) Pursuant to the Order issued by the OIR levying the Emergency Assessment, each Assessable Insurer shall remit to the entity identified in the Order, an amount equal to the required percentage of its direct written premium for the preceding calendar quarter from all Assessable Lines, except those lines specifically exempted in Section 215.555, F.S. The required percentage will be determined in accordance with Section 215.555(6)(b), F.S., and the procedures set out in subsection (4) of this rule.

(c) Pursuant to the Order issued by the OIR levying the Emergency Assessment, each Assessable Insured shall remit and each surplus lines agent shall collect an amount equal to the required percentage of its direct written premium from all Assessable Lines. Surplus lines agents shall collect the Emergency Assessment at the same time as the surplus lines agent collects the surplus lines tax required by Section 626.932, F.S., and remit to the Florida Surplus Lines Service Office at the same time as the agent remits the surplus lines tax to that Office. The Emergency Assessment on each insured procuring coverage and filing under Section 626.938, F.S., shall be an amount equal to the required percentage of its direct written premium from all Assessable Lines and shall be remitted by the insured to the Florida Surplus Lines Service Office at the time the insured pays the surplus lines tax to that Office. The Florida Surplus Lines Service Office shall remit the Emergency Assessments received as directed by the OIR.

(d) The following lines of business are subject to the Emergency Assessment under Section 215.555(6)(b)1., F.S. For ease of reference, the lines of business are identified on the Exhibit of Premiums and Losses in the property and casualty annual statement of the National Association of Insurance Commissioners required to be filed by authorized insurers pursuant to Section 624.424, F.S., whether or not the insurer is required to file such exhibit. However, note that the numbers preceding the names of the lines of business do not correspond to the line numbers of the property and casualty annual statement.

Fire.
Allied Lines.
Multiple Peril Crop.
Farmowners Multiple Peril.
Homeowners Multiple Peril.
Commercial Multiple Peril (non-liability).
Commercial Multiple Peril (liability).
Mortgage Guaranty.
Ocean Marine.
Inland Marine.
Financial Guaranty.
Earthquake.
Other Liability.
Products Liability.
Private Passenger Auto No-Fault.
Other Private Passenger Auto Liability.
Commercial Auto No-Fault.
Other Commercial Auto Liability.
Private Passenger Auto Physical Damage.
Commercial Auto Physical Damage.
Aircraft (all perils).
Fidelity.
Surety.
Burglary and Theft.
Boiler and Machinery.
Credit.
Warranty.
Aggregate Write Ins for Other Lines of Business.

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555(2), (3), (4), (5), (6), (7) FS. History–New 9-18-97, Amended 12-3-98, 9-12-00, 6-1-03, 5-19-04, 5-29-05, 5-10-06, 9-5-06, 6-8-08, 3-30-09, 3-29-10, 8-8-10, 4-24-14, 11-10-21, 7-30-25.

Fla. Admin. Code R. 19-8.015 Definitions Applicable to the 1995-1996 Contract Year

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555 FS. History–New 11-12-95, Repealed 7-3-11.

Fla. Admin. Code R. 19-8.016 1995 Reimbursement Premium Formula

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555(5) FS. History–New 11-12-95, Repealed 7-3-11.

Fla. Admin. Code R. 19-8.017 Insurer Reporting Requirements for the 1995-1996 Contract Year

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555 FS. History–New 11-12-95, Repealed 7-3-11.

Fla. Admin. Code R. 19-8.018 Definitions Applicable to the 1996-1997 Contract Year

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555 FS. History–New 8-6-96, Repealed 7-3-11.

Fla. Admin. Code R. 19-8.019 1996 Reimbursement Premium Formula

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555(5) FS. History–New 8-6-96, Amended 2-17-97, Repealed 7-3-11.

Fla. Admin. Code R. 19-8.020 Insurer Reporting Requirements for the 1996-1997 Contract Year

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555 FS. History–New 8-6-96, Amended 2-17-97, Repealed 7-3-11.

Fla. Admin. Code R. 19-8.021 Definitions Applicable to the 1997-1998 Contract Year

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555(2), (3), (4), (5), (6), (7) FS. History–New 6-19-97, Repealed 7-3-11.

Fla. Admin. Code R. 19-8.022 1997 Reimbursement Premium Formula

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555(2), (3), (4), (5), (6), (7) FS. History–New 6-19-97, Repealed 7-3-11.

Fla. Admin. Code R. 19-8.023 Insurer Reporting Requirements for the 1997-1998 Contract Year

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555(2), (3), (4), (5), (6), (7) FS. History–New 6-19-97, Repealed 7-3-11.

Fla. Admin. Code R. 19-8.024 Definitions Applicable to the 1998-1999 Contract Year

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555(2), (3), (4), (5), (6), (7) FS. History–New 5-28-98, Repealed 7-3-11.

Fla. Admin. Code R. 19-8.025 1998 Reimbursement Premium Formula

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555(2), (3), (4), (5), (6), (7) FS. History–New 5-28-98, Amended 12-3-98, Repealed 7-3-11.

Fla. Admin. Code R. 19-8.026 Insurer Reporting Requirements for the 1998-1999 Contract Year

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555(2), (3), (4), (5), (6), (7) FS. History–New 5-28-98, Repealed 7-3-11.

Fla. Admin. Code R. 19-8.027 Definitions Applicable to the 1999-2000 Contract Year

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555(2), (3), (4), (5), (6), (7) FS. History–New 5-17-99, Repealed 7-3-11.

Fla. Admin. Code R. 19-8.028 Reimbursement Premium Formula

(1) Purpose. This rule adopts the Premium Formula to determine the Actuarially Indicated Reimbursement Premium to be paid to the Florida Hurricane Catastrophe Fund, as required by Section 215.555(5)(b), F.S.

(2) Definitions. The definitions in the Reimbursement Contract for the applicable Contract Year also apply to this rule and the forms referenced in this rule. In addition, as used in this rule:

(a) “SBA” means the State Board of Administration of Florida.

(b) “Contract Year” is defined in Section 215.555(2), F.S.

(c) “Independent Consultant” means the independent individual, firm, or organization with which the SBA contracts to prepare the Premium Formula and any other actuarial services for the FHCF, as determined under the contract with the Consultant.

(3) The Premium Formula.

(a) The Formula for determining the Actuarially Indicated Reimbursement Premium to be paid to the FHCF, as required by Section 215.555(5)(b), F.S., is the rate times the exposure per $1,000 of insured value and this equals the Premium to be paid in dollars. The premium rates are determined by taking into account geographic location by zip code; construction type; policy deductible; type of insurance and other such factors deemed by the SBA to be appropriate. The Formula is developed by an Independent Consultant selected by the SBA, as required by Section 215.555(5)(b), F.S.

(b) For the 2026/2027 Contract Year, the Formula developed by the SBA’s Independent Consultant, “Florida Hurricane Catastrophe Fund 2026 Ratemaking Formula Report Presented to the State Board of Administration of Florida April 2, 2026, http://flrules.org/Gateway/reference.asp?No=Ref-19599,” as approved by the SBA, is hereby adopted and incorporated by reference into this rule. The premium rates are developed in accordance with the Premium Formula methodology approved by the SBA.

(4) Special Circumstances.

(a) Allocation of Premium. Premiums paid to the FHCF with reference to property covered by Quota Share Primary Insurance Arrangements, as that phrase is defined in Section 627.351(6)(c)2.f., F.S., will be allocated by the FHCF between the Company and Citizens in accordance with the percentages specified in the Quota Share Primary Insurance Arrangement for the purposes of premium billing, calculating retentions and determining reimbursement payments.

(b) Special Rating Circumstances. The Premium Formula for policies that, based upon sound actuarial principles, require individual ratemaking and which are not excluded by rule will be based on the use of computer modeling for each individual Company for which it is applicable, i.e., portfolio modeling. The Independent Consultant will recommend guidelines for individual Company portfolio reporting and modeling to estimate individual Company FHCF expected losses. Individual Company FHCF expected losses for portfolio modeling exposures will be loaded for expenses on the same basis as the FHCF premium rates used for non-portfolio modeling exposures, but will also include a loading for the additional cost of individual Company modeling. The minimum exposure threshold for FHCF portfolio modeling rating will be sufficient to generate estimated FHCF premium greater than the cost of modeling and other considerations and will be calculated by the Independent Consultant for the separate coverage levels of 45%, 75%, and 90% using the premium rates established pursuant to subsection (3). The methodology used by the Independent Consultant will be based on sound actuarial principles to establish greater actuarial equity in the premium structure.

(5) All the forms adopted and incorporated by reference in this rule may be obtained from the FHCF website at http://fhcf.sbafla.com.

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555(2), (3), (4), (5), (6), (7) FS. History–New 9-20-99, Amended 7-3-00, 9-17-01, 7-17-02, 7-2-03, 7-29-04, 7-17-05, 7-6-06, 7-17-07, 6-16-08, 8-2-09, 7-8-10, 7-3-11, 6-25-12, 6-18-13, 6-10-14, 6-2-15, 5-18-16, 5-30-17, 8-1-18, 5-21-19, 9-17-19, 7-16-20, 6-23-21, 8-18-22, 7-12-23, 8-5-24, 7-30-25, 8-5-26.

Fla. Admin. Code R. 19-8.029 Insurer Reporting Requirements and Responsibilities

(1) Purpose. This rule specifies certain deadlines and other requirements for insurers that participate in the Florida Hurricane Catastrophe Fund (FHCF).

(2) Definitions. The definitions in the Reimbursement Contract for the applicable Contract Year also apply to this rule and the forms referenced in this rule. In addition, as used in this rule and the forms referenced in this rule:

(a) “Contract Year” is defined in Section 215.555(2), F.S.

(b) “Insurer” or “Company” means an insurer that is required to enter into a Reimbursement Contract.

(3) Data Call form.

(a) For the 2025/2026 Contract Year, the reporting of Company exposure data shall be in accordance with Form FHCF-D1A, “Florida Hurricane Catastrophe Fund 2025 Data Call,” rev. 02/25, http://www.flrules.org/Gateway/reference.asp?No=Ref-17480, which is hereby adopted and incorporated by reference into this rule.

(b) For the 2026/2027 Contract Year, the reporting of Company exposure data shall be in accordance with Form FHCF-D1A, “Florida Hurricane Catastrophe Fund 2026 Data Call,” rev. 02/26, http://flrules.org/Gateway/reference.asp?No=Ref-18880, which is hereby adopted and incorporated by reference into this rule.

(4) Loss reporting forms.

(a)1. For the 2025/2026 Contract Year, the reporting of Ultimate Net Loss shall be in accordance with Form FHCF-L1A, “Contract Year 2025 Interim Loss Report, Florida Hurricane Catastrophe Fund (FHCF),” rev. 02/25, http://www.flrules.org/Gateway/reference.asp?No=Ref-17483, which is hereby adopted and incorporated by reference into this rule.

For the 2026/2027 Contract Year, the reporting of Ultimate Net Loss shall be in accordance with Form FHCF-L1A, “Contract Year 2026 Interim Loss Report, Florida Hurricane Catastrophe Fund (FHCF),” rev. 02/26, http://flrules.org/Gateway/reference.asp?No=Ref-18881, which is hereby adopted and incorporated by reference into this rule.

(b)1. For the 2025/2026 Contract Year, the reporting of Ultimate Net Loss shall be in accordance with Form FHCF-L1B, “Contract Year 2025 Proof of Loss Report, Florida Hurricane Catastrophe Fund (FHCF),” rev. 02/25, http://www.flrules.org/Gateway/reference.asp?No=Ref-17484, which is hereby adopted and incorporated by reference into this rule.

For the 2026/2027 Contract Year, the reporting of Ultimate Net Loss shall be in accordance with Form FHCF-L1B, “Contract Year 2026 Proof of Loss Report, Florida Hurricane Catastrophe Fund (FHCF),” rev. 02/26, https://flrules.org/Gateway/reference.asp?No=Ref-18882, which is hereby adopted and incorporated by reference into this rule.

(c)1. For the 2025/2026 Contract Year, the applicable Detailed Claims Listing Instructions is Form FHCF-DCL, “Contract Year 2025 Detailed Claims Listing Instructions,” rev. 02/25, http://www.flrules.org/Gateway/reference.asp?No=Ref-17482, which is hereby adopted and incorporated by reference into this rule.

For the 2026/2027 Contract Year, the applicable Detailed Claims Listing Instructions is Form FHCF-DCL, “Contract Year 2026 Detailed Claims Listing Instructions,” rev. 02/26, https://flrules.org/Gateway/reference.asp?No=Ref-18883, which is hereby adopted and incorporated by reference into this rule.

(5) Examination.

(a) Advance examination record requirements. Within 30 days after the date of the request for such information, a Company must provide the FHCF with the records indicated in the applicable Contract Year’s “Exposure Examination Advance Preparation Instructions” or in the applicable Contract Year’s “Claims Examination Advance Preparation Instructions.” The FHCF may grant an extension of 30 days if the Company can show that the need for the additional time is due to circumstances beyond its reasonable control.

For the 2025/2026 Contract Year, the applicable exposure examination instructions form is the “Florida Hurricane Catastrophe Fund (FHCF) Exposure Examination – Contract Year 2025 Advance Preparation Instructions,” FHCF-EAP1, rev. 02/25, http://www.flrules.org/Gateway/reference.asp?No=Ref-17481, which is hereby adopted and incorporated by reference into this rule. The applicable claims examination instructions form is the “Florida Hurricane Catastrophe Fund (FHCF) Claims Examination – Contract Year 2025 Advance Preparation Instructions,” FHCF-LAP1, rev. 02/25, http://www.flrules.org/Gateway/reference.asp?No=Ref-17485, which is hereby adopted and incorporated by reference into this rule.
For the 2026/2027 Contract Year, the applicable exposure examination instructions form is the “Florida Hurricane Catastrophe Fund (FHCF) Exposure Examination – Contract Year 2026 Advance Preparation Instructions,” FHCF-EAP1, rev. 02/26, https://flrules.org/Gateway/reference.asp?No=Ref-18884, which is hereby adopted and incorporated by reference into this rule. The applicable claims examination instructions form is the “Florida Hurricane Catastrophe Fund (FHCF) Claims Examination – Contract Year 2026 Advance Preparation Instructions,” FHCF-LAP1, rev. 02/26, https://flrules.org/Gateway/reference.asp?No=Ref-18885, which is hereby adopted and incorporated by reference into this rule.

(b) Consequences for failure to meet the requirements contained in the FHCF-EAP1, “Exposure Examination Advance Preparation Instructions” or the FHCF-LAP1, “Claims Examination Advance Preparation Instructions.” In addition to other penalties or consequences, the FHCF has the authority, pursuant to Section 215.555(4)(f), F.S., to require that the Company pay for the following services under the circumstances specified herein:

If the Company is responsible for the delay of an examination, the inability to conduct an examination as scheduled, or the inability to complete an examination, the Company shall be required to reimburse the FHCF for all the usual and customary expenses connected to such delay, cancellation, or incompletion.
If the FHCF finds any Company’s records or other necessary information to be inadequate or inadequately posted, recorded, or maintained, the FHCF may employ experts to reconstruct, rewrite, record, post, or maintain such records or information, at the expense of the Company being examined.
A Company required to reimburse the FHCF for costs as required in subparagraphs 1. and 2., is liable for interest on the amount owed to the FHCF from the date the FHCF pays such expenses until the date payment from the Company is received. The applicable interest rate for interest charges will be the average rate earned by the SBA for the FHCF for the six months preceding the start of the Contract Year. For balances paid after the invoice due date, interest will accrue at this rate plus 5 percent. The payment of reimbursements or refunds by the FHCF to the Company will be offset by any amounts owed by that Company to the FHCF under this paragraph.

(6) Company contact information. Companies must submit Form FHCF C-1, Company Contact Information, by March 1 preceding each Contract Year to the FHCF Administrator. A New Participant must submit Form FHCF C-1 within 30 calendar days after writing its first Covered Policy. This form must be updated by the Company as the information provided thereon changes. The FHCF shall have the right to rely upon the information provided by the Company to the FHCF on this form until receipt by the FHCF of a new properly completed Form FHCF C-1 from the Company.

(7) Deadlines. If any deadline provided for herein falls on a Saturday, Sunday or on a legal State of Florida or federal holiday, then the actual due date will be the day immediately following the applicable due date which is not a Saturday, Sunday or legal State of Florida or federal holiday.

(8) All the forms adopted and incorporated by reference in this rule may be obtained from the FHCF website at https://fhcf.sbafla.com.

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555(2), (3), (4), (5), (6), (7), (15), 627.351(6) FS. History–New 5-17-99, Amended 6-19-00, 6-3-01, 6-2-02, 11-12-02, 5-13-03, 5-19-04, 8-29-04, 5-29-05, 5-10-06, 5-8-07, 6-8-08, 3-30-09, 8-2-09, 3-29-10, 8-8-10, 7-20-11, 5-22-12, 3-17-13, 4-24-14, 5-12-15, 3-13-16, 1-24-17, 2-5-18, 1-29-19, 9-17-19, 1-22-20, 2-8-21, 2-7-22, 8-18-22, 3-7-23, 2-6-24, 2-4-25, 2-11-26.

Fla. Admin. Code R. 19-8.030 Insurer Responsibilities

History

Rulemaking Authority 215.555(3) FS. Law Implemented 215.555, 627.351(6) FS. History–New 5-13-03, Amended 5-19-04, 5-29-05, 5-10-06, 5-8-07, 8-13-07, 6-8-08, 3-30-09, 3-29-10, 8-8-10, 7-20-11, 5-22-12, 3-17-13, 4-24-14, 5-12-15, 3-13-16, Repealed 1-24-17.

Fla. Admin. Code R. 19-8.031 Hurricane Mitigation

History

Rulemaking Authority 215.555(7) FS. Law Implemented 215.555 FS. History–New 5-13-03, Repealed 5-29-05.

Chapter 19-9 PUBLIC EMPLOYEE OPTIONAL RETIREMENT PROGRAM: INVESTMENT POLICY STATEMENT

Fla. Admin. Code R. 19-9.001 Investment Policy Statement

History

Rulemaking Authority 121.4501(8), 215.52 FS. Law Implemented 121.4501(1), (2), (3), (4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (15) FS. History–New 7-29-01, Amended 7-23-02, 5-10-05, 5-19-09, 7-12-12, 12-30-15, 2-12-18, 4-8-20, 5-11-22, 11-3-25, Repealed 7-8-26.

Chapter 19-11 PROCEDURES FOR THE FLORIDA RETIREMENT SYSTEM INVESTMENT PLAN

Fla. Admin. Code R. 19-11.001 Definitions

The following words and terms shall have the following meanings for purposes of Chapters 19-11 and 19-13, F.A.C.:

(1) “Accumulated Benefit Obligation,” or “ABO” means the present value of a member’s benefit in the Pension Plan, which is the defined benefit program of the Florida Retirement System (FRS), to which the member would be entitled if the member retired from the Pension Plan. This present value shall be calculated in accordance with the formula set out in Section 121.4501(3)(b)1., F.S., by the Division of Retirement (Division) within the Department of Management Services. The ABO changes on a monthly basis based on the following factors: age, service credit, salary level, and membership class.

(2) “Administrator,” “Investment Plan Administrator,” or “Plan Choice Administrator,” means the entity hired by the State Board of Administration (SBA), pursuant to Section 121.4501(8)(a)1., F.S., to provide administrative services to the Investment Plan or the entity responsible for processing enrollment forms received from employees making a retirement plan choice either by form or electronically.

(3) “Aggregate amount of $75,000 or more” means the total of the amounts transferred out of a fund by a member and into the same fund, in either order (i.e., in/out or out/in) during any rolling 30-calendar day period, regardless of the number of Round Trips.

(4) “Alternate Payee” is the person or persons eligible to receive payments under the Plan in accordance with a Qualified Domestic Relations Order (QDRO). A QDRO can only name a member’s spouse, former spouse, child, or other dependent as an Alternate Payee.

(5) “Annual addition” means the sum for any limitation year of all employer and employee contributions which are treated as annual additions to a defined contribution plan for purposes of Section 415(c) of the U.S. Internal Revenue Code, as amended (“Code”) and forfeitures. Examples of such contributions to a defined contribution plan include the following: employer and employee contributions to the Investment Plan; contributions to the Senior Management Service Optional Annuity Program described in Section 121.055(6), F.S.; contributions to a Code s. 401(k) plan; employer contributions to an individual retirement account; voluntary employee contributions to accounts in a defined benefit plan [but not including contributions to a qualified cost-of-living arrangement in accordance with Code s. 415(k)]; amounts allocated to the separate account of a key employee for post-retirement medical benefits described in Code s. 419A(d)(2); and contributions to an individual medical benefit account, as described in Code s. 415(l). Examples of contributions which are not annual additions for purposes of Section 415(c) of the Code as applied to the Investment Plan include the following: rollover contributions or transfers from another eligible retirement plan to the Investment Plan; contributions to a Code s. 403(b) annuity plan; contributions to a Code s. 457 deferred compensation plan; and contributions which are additional elective deferrals under Code s. 414(v).

(6) “Benefits” is used in the same sense, and has the same meaning, as used in Section 121.4501(7), F.S.

(7) “Code” means the U.S. Internal Revenue Code, as amended. The Code is available free on the Internet at the following web site: uscode.house.gov.

(8) “Compensation” means the monthly salary paid by an employer to a member for work performed arising from that employment, as defined in Section 121.021(22), F.S.

(9) “Complaint” shall mean a member’s written or verbal expression of dissatisfaction with an Investment Plan provider or one of its representatives.

(10) “Death in line of duty” means a death occurring as described in Section 121.021(14), F.S.

(11) “Default” or “default election” arises when a newly-hired employee fails to enroll in the Pension Plan or Investment Plan by 4:00 p.m. (Eastern Time) of their choice period deadline date, which is typically the last business day of the 8th month following the employee’s month of hire. Such employee is deemed to have defaulted into the Investment Plan as his or her initial plan choice or first election. If the newly-hired employee is employed in a position included in the Special Risk Class, and fails to enroll in the Pension Plan or Investment Plan by 4:00 p.m. (Eastern Time) of their choice period deadline date, which is typically the last business day of the 8th month following the employee’s month of hire, the employee is deemed to have defaulted into the Pension Plan as his or her initial plan choice or first election.

(12) “Defined contribution plan” means a plan, such as the Investment Plan, which provides for an individual account for each member and for benefits based solely on the amount contributed to the member’s account, and any income, expenses, gains and losses, and any forfeitures of accounts of other members which may be allocated to such member’s account.

(13) “De Minimis Distribution” is an automatic distribution made when an inactive member’s account balance is $1,000 or less. However, such a distribution will not occur until the member has been terminated from all employment with FRS employers for a minimum of six (6) calendar months.

(14) “Direct rollover” means a payment by the Investment Plan to another eligible retirement plan specified by the distributee.

(15) “Distributee” means a member or former member who has taken a distribution from the Investment Plan. In addition, the member’s or former member’s surviving spouse and the member’s or former member’s spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Code s. 414(p), are distributees with regard to the interest of the spouse or former spouse. Effective January 1, 2010, a non-spouse beneficiary is also a “distributee,” but the term “eligible retirement plan” for such individual is limited to an individual retirement account described in Code s. 408(a), an individual retirement annuity described in Code s. 408(b), or a Roth individual retirement account or annuity described in Code s. 408A that is treated as an inherited individual retirement account or annuity pursuant to Code s. 402(c)(11).

(16) “Division” means the Division of Retirement within the Department of Management Services.

(17) “Domestic Relations Order,” or “DRO” is any draft DRO, court judgment, decree, or order (including an approval of a property settlement agreement) that relates to the provision of child support, alimony payments, or marital property rights to a spouse, former spouse, child, or other dependent of a member and that is made pursuant to a state domestic relations law (including a community property law).

(18) “Effective date of enrollment,” or “effective enrollment in the FRS Investment Plan” means the employee completed the enrollment into the Plan by filing the appropriate enrollment form, or by electronic means, in the applicable membership class or by filing a separate document for the applicable membership class with the Administrator; the Administrator has entered the employee into its recordkeeping system; and the Administrator has informed the Division of the employee’s effective date of enrollment in either the FRS Pension Plan or the FRS Investment Plan. For purposes of this rule, the term “enrollment form” or “form” shall also refer to the separate document described in paragraphs 19-11.006(2)(e) and 19-11.007(4)(a), F.A.C.

(19) “Electronic Means” shall mean an enrollment or other member directive made on the MyFRS.com website, by telephone or other technology as specified by the SBA.

(20) “Electronic Signature” is any symbol or other data in digital form attached to an electronically transmitted document, and includes a systematic digital authentication, such as a date or time stamp, as verification of the sender’s intent to sign the document. By submitting an electronic signature, a member acknowledges that the electronic signature equivalent to a handwritten signature for the purposes of validity, enforceability, and admissibility.

(21) “Eligible Designated Beneficiary” is either the member’s surviving spouse, the member’s minor child (who is a child younger than 18 years of age), a disabled individual, a chronically ill individual or a person not more than 10 years younger than the member (and would include parents, siblings and unmarried partners of the deceased member if they are not more than 10 years younger than the member).

(22) “Eligible retirement plan” means an individual retirement account described in Code s. 408(a), an individual retirement annuity described in Code s. 408(b), an annuity plan described in Code s. 403(a), an annuity contract described in Code s. 403(b), a Roth individual retirement account or annuity described in Code s. 408A, an eligible deferred compensation plan described in Code s. 457(b) which is maintained by an eligible employer described in Code s. 457(e)(1)(A) or a qualified trust described in Code s. 401(a), that accepts the distributee’s eligible rollover distribution.

(23) “Eligible rollover distribution” means any distribution of all or any portion of the balance of the member’s account(s) in the Investment Plan to the credit of the distributee. An eligible rollover distribution does not include any distribution which is made upon hardship of the employee; any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee’s designated beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under Code s. 401(a)(9); or a deemed distribution of a loan under Code s. 72(p). Any portion of a distribution that consists of after-tax employee contributions which are not includible in gross income may be transferred only to paragraph (1)(a) a traditional individual retirement account or annuity described in Code s. 408(a) (a “traditional IRA”); or (b) a Roth individual retirement account or annuity described in Code s. 408A (a “Roth IRA”); or (2) to a qualified plan or an annuity contract described in Code s. 401(a) and 403(b), respectively, that agrees to separate accounting for amounts so transferred (and earnings thereon), including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible.

(24) “Employee” means an eligible employee as defined in Section 121.4501(2)(e), F.S.

(25) “Employer” means an employer as defined in Section 121.4501(2)(f), F.S. For purposes of the Investment Plan, there are three (3) general categories of employers: state agencies; school districts; and local employers.

(26) “Excessive trading” means multiple occurrences of Market Timing Trades by a member. The definition of a Market Timing Trade is set forth in subsection (38) herein.

(27) “Exempt transaction” is any transaction that is initiated for purposes of: depositing employer and employee contributions; a rollover of eligible funds into the plan from an outside retirement plan; processing a distribution; processing a Qualified Domestic Relations Order; or mapping funds from terminated products. Exempt transactions are not included in any calculations for the purposes of Rule 19-11.004, F.A.C.

(28) “FRS Investment Plan,” “Florida Retirement System Investment Plan,” or “Investment Plan” means the defined contribution retirement program of the Florida Retirement System, established in Parts II and III of Chapter 121, F.S. Although the Investment Plan is established in Part II (Florida Retirement System Investment Plan) and Part III (Florida Retirement System Contribution Rates), certain provisions of Part I (General Provisions) of Chapter 121, F.S., also apply to the Investment Plan whenever the provisions of Parts II and III fail to address a specific area or topic covered by the provisions of Part I. The Investment Plan refers to both the FRS Investment Plan and the FRS Investment Plan Hybrid Option, also known as the Hybrid Option.

(29) “FRS Investment Plan Hybrid Option,” or “FRS Hybrid Option” means the plan choice option within the Florida Retirement System, established in Parts II and III of Chapter 121, F.S., in which a member chooses to retain his or her accrued service benefit in the Pension Plan, in accordance with Section 121.4501(3)(a), F.S., and further chooses that all future employer and employee contributions be deposited in his or her Investment Plan account.

(30) “FRS Investment Plan providers” are:

(a) The FRS Investment Plan Administrator or Investment Plan Administrator;

(b) Companies providing educational services, which include retirement planning, financial planning services, and retirement plan choice guidance;

(c) Investment managers providing investment services supporting mutual funds or institutional funds offered in the Investment Plan;

(d) Marketing companies providing marketing and educational support for their investment products or providing individual counseling; and,

(e) Any other company or state agency providing Investment Plan services (including the State Board of Administration of Florida).

(31) “FRS Pension Plan,” “Florida Retirement System Pension Plan,” or “Pension Plan” means the defined benefit retirement program of the Florida Retirement System, established in Part I of Chapter 121, F.S.

(32) “Florida Retirement System Trust Fund,” or “FRSTF” shall mean the trust fund holding the assets of the Pension Plan, which is the defined benefit plan of the Florida Retirement System.

(33) “Grace period” means that procedure described in subsections 19-11.006(3) and 19-11.007(5), F.A.C., which permit, under certain circumstances, the voiding of a retirement plan choice election.

(34) “In-service distribution” is an invalid distribution made to a member who is actively employed with an FRS employer at the time of taking a distribution.

(35) “Invalid distribution” is a distribution to a member to which the member was not entitled.

(36) “Investment Plan primary funds,” or “primary funds” shall mean investment funds offered under the Investment Plan. It does not include additional investment opportunities available under the Self-Directed Brokerage Account (“SDBA”).

(37) “Limitation year” is the consecutive twelve (12) month period of time to which Code limitations with respect to compensation, contributions and forfeitures are applied. For the Investment Plan, the limitation year is the calendar year.

(38) “Market losses” shall be defined, for purposes of Section 121.78(3)(c), F.S., (which states that employers shall reimburse Investment Plan members for market losses resulting from late contributions, or from contribution adjustments as a result of employer errors or corrections), as the value of a member’s account that otherwise would have been realized had the employer and employee contributions and accompanying payroll data been submitted on a timely basis. “Market losses” applies only to the monthly contribution or ABO that is late, not to the member’s aggregate value in his or her Investment Plan account.

(39) “Market Timing Trade” is a member-directed series of trades with the following two characteristics:

(a) At least one Roundtrip Trade within a 30-day period; and,

(b) The trade amount for all Roundtrip Trades is an aggregate amount of $75,000 or more.

(40) “Member,” “FRS Investment Plan Member,” or “Investment Plan Member” means an employee who elected to participate, defaulted, or is considered a renewed member pursuant to Section 121.122, F.S., and has an account established, in the Investment Plan as a result of current or previous employment with an FRS employer; a person who has been designated as an alternate payee due to a qualified domestic relations order (“QDRO”); a terminated Deferred Retirement Option Program (DROP) member who has elected to roll over proceeds from their DROP account; or a designated beneficiary when a member is deceased.

(41) “Member’s account,” or “member’s accounts” shall mean an Investment Plan account for an individual Investment Plan member in which employer and employee contributions and, if applicable, Pension Plan benefit transfers, are invested for an Investment Plan member.

(42) “Non-Eligible Designated Beneficiary” is a designated beneficiary that does not fit into one of the five categories of beneficiaries that are considered to be Eligible Designated Beneficiaries, and includes look-through trusts that are compliant with IRS regulations.

(43) “Primary Investment Account,” or “primary account” shall mean the member’s Investment Plan account that is invested in the Investment Plan’s primary funds.

(44) “Qualified Domestic Relations Order,” (“QDRO”) is a domestic relations order that has been determined to meet the Investment Plan’s qualification requirements.

(45) “Required Minimum Distributions,” (“RMD”) are the annual minimum distributions that, pursuant to the Internal Revenue Code, must be taken by members who are age 73 or older from their qualified retirement plan accounts, including 401(k), 457, 403(b) plans and IRA accounts, when they terminate employment. The amount of an RMD in any year is based on account balances as of December 31st of the prior year. The member must have terminated all FRS covered employment in order for an RMD to be processed. Once the RMD has been calculated, the RMD will be paid to the member, even if the member returns to active FRS employment during the calendar year.

(46) “Retiree” is a member who has received a self-initiated distribution from the Investment Plan.

(47) “Retirement Date Fund,” or “Target Date Fund” is a diversified portfolio of other Investment Plan primary funds that is based on the amount of time a member has before retirement. The portfolio gradually changes as the member gets closer to retirement.

(48) “Roundtrip Trade” occurs when a member conducts a series of at least two non-exempt transactions that include one or more transfers into an authorized investment fund and one or more transfers out of the same authorized investment fund in either order (i.e., in/out or out/in), regardless of any multiple transfers from or to other different authorized investment funds during the roundtrip. A roundtrip trade includes a trade from an Investment Plan primary fund to the SDBA and a trade from the SDBA to an Investment Plan primary fund.

(49) “SBA” means the State Board of Administration of Florida, the plan sponsor for the Investment Plan.

(50) “Self-Directed Brokerage Account,” or “SDBA” shall mean an account within the Investment Plan that allows a member access to additional investment opportunities that are not available in the Investment Plan primary funds.

(51) “Special risk member,” or “Special Risk Class member” means a member of the Florida Retirement System who meets the eligibility and criteria required under Section 121.0515, F.S., for participation in the Special Risk Class.

(52) “Third Party Administrator,” “Administrator,” “Plan Administrator,” or “TPA” shall mean the Investment Plan Administrator hired by the State Board of Administration of Florida pursuant to Section 121.4501(8), F.S.

(53) “True-up Amount” means the difference between the ABO calculated by using the member’s actual creditable service and the actual final average compensation as of the member’s effective date in the Investment Plan and the ABO initially transferred.

(54) “Volunteer services” means services provided in accordance with Section 121.091(15), F.S.

History

Rulemaking Authority 121.78(3)(c), 121.4501(8) FS. Law Implemented 121.78, 121.4501 FS. History–New 12-8-02, Amended 3-9-06, 7-12-12, 12-16-12, 6-5-14, 8-18-14, 12-30-15, 4-12-17, 2-12-18, 2-19-19, 5-11-22, 7-26-23, 4-22-24, 12-8-25.

Fla. Admin. Code R. 19-11.002 Beneficiary Designations and Distributions for FRS Investment Plan

(1)(a) An Investment Plan member may designate a beneficiary to receive the benefits which may be payable in the event of the member’s death. If the member does not designate a beneficiary(ies), or if no designated beneficiary survives the member, then the member’s beneficiary(ies) will be those specified by Section 121.4501(20), F.S. which are: the deceased member’s spouse; or if there is no surviving spouse, then the deceased member’s children, or their legal guardian, on their behalf if under 18 years of age; or if no children survive, the deceased member’s father or mother, if living; otherwise the deceased member’s estate.

(b) An Investment Plan member who dies in the line of duty shall have survivor benefits paid in accordance with Section 121.591(4), F.S., and Rule 19-11.014, F.A.C.

(c) Monthly survivor benefits for the spouse and child(ren) of members provided by Section 121.591(4), F.S., are payable in lieu of benefits otherwise payable under Section 121.591(1), F.S., or survivor benefits payable under Section 121.591(3), F.S., and shall supersede any other distribution that may have been provided by the member’s designation of beneficiary.

(2) Any such beneficiary designation may be made on Form IPBEN-1, FRS Investment Plan Beneficiary Designation, rev. 07-23, http://www.flrules.org/Gateway/reference.asp?No=Ref-16161, or through the MyFRS.com online version of the FRS Investment Plan Beneficiary Designation form, rev. 03/20, http://www.flrules.org/Gateway/reference.asp?No=Ref-14006, which are both hereby adopted and incorporated by reference. These forms are available in paper form and may be obtained by calling the toll-free MyFRS Financial Guidance Line at 1(866)446-9377, Option 4 (TRS 711), Monday through Friday, except holidays, 8:00 a.m. to 6:00 p.m., by accessing the MyFRS.com website and clicking on “Forms”, or by accessing the online version beneficiary form. Alternatively, a beneficiary may also be designated electronically by logging on to MyFRS.com, clicking on “Investment Plan,” and then clicking on “personal info,” or by calling the Investment Plan Administrator at 1(866)446-9377, Option 4 (TRS 711). The beneficiary designation form must be completed and received by the Investment Plan Administrator before it becomes effective.

(3) A beneficiary designation shall only be effective once it is received by the Investment Plan Administrator. The most recent beneficiary designation filed with the Investment Plan Administrator shall replace any previous designation whether made before or after the member’s termination of employment or retirement. Upon receipt of the beneficiary designation, the Investment Plan Administrator will send confirmation that designation was updated. The member is responsible for confirming whether the designation has been received by the Investment Plan Administrator. The beneficiary designation is printed every quarter on the member’s quarterly statement.

(4)(a) If the member enrolls in the Investment Plan using the EZ Retirement Plan Enrollment Form for Regular, Special Risk and Special Risk Administrative Support Class Employees, Form ELE-1-EZ, rev. 07-21, the General Retirement Plan Enrollment Form for Regular Special Risk and Special Risk Administrative Support Class Employees, Form ELE-1, rev. 07-23, which are adopted and incorporated by reference in subsection 19-11.006(2), F.A.C., or the 2nd Election EZ Retirement Plan Enrollment Form, Form ELE-2-EZ, rev. 07-21, or the 2nd Election Retirement Plan Enrollment Form, Form ELE-2, rev. 07-23, which are adopted and incorporated by reference in subsection 19-11.007(4), F.A.C., the member agrees to the beneficiary designation contained in Section 121.4501(20), F.S., unless the member submits a beneficiary designation as provided in subsection (2), herein.

(b) If the member marries after designating a beneficiary, the member must file an updated beneficiary designation if the member wishes to name someone else other than the spouse as a beneficiary. If the member does not file an updated beneficiary designation, the member’s spouse will be the beneficiary of the member’s account. The spouse must provide a copy of the marriage certificate verifying that the marriage occurred after the most recent beneficiary designation. Example: John is married to Betty and has named her as his beneficiary. John divorces Betty and marries Carol. Carol will be John’s beneficiary unless he files another beneficiary form and names, for example, his son, Bob.

A member may name a beneficiary or beneficiaries to receive the assets of the member’s Investment Plan account, either sequentially or jointly.
A member may name as beneficiary any person, organization, trust, or the member’s estate.

(d) A primary beneficiary is someone who will receive the member’s funds from the Investment Plan account, if that person is living at the death of the member. If more than one primary beneficiary is designated with specified percentages of the funds, each will receive their member-specified percentages if they are still living at the death of the member. Example: if the member names his four sons, in equal shares (25% each), but two of the four sons die before their father, the other two living sons split the funds two ways, 50% each.

(e) A contingent beneficiary is one or more person(s) who are named, in case all primary beneficiaries die before the member. Contingent beneficiaries may receive benefits jointly or sequentially. Naming a contingent beneficiary is optional and the person designated cannot also be a named primary beneficiary. If a member submits a beneficiary designation listing the same person(s) or entity as both primary and contingent beneficiaries, the person(s) or entity will only be accepted as the primary beneficiary designation. All other persons or entities will be accepted as contingent beneficiaries.

(f) If a member inadvertently uses an incorrect beneficiary designation form, the Investment Plan Administrator will notify the member and request that the member complete and submit the correct form, Beneficiary Designation Form IPBEN-1, rev. 07-23. If the member should die prior to completing and submitting the IPBEN-1 form, the Investment Plan Administrator will consider the beneficiary set forth on the incorrect form as being the member’s intended beneficiary for the purpose of paying benefits.

(g) If the member submits a beneficiary form that is incomplete, it will not be processed. An incomplete form is a form which is missing the name of the member, the last four numbers of the member’s social security number, or the member’s signature, or a form indicating that the shares assigned to joint primary or contingent beneficiaries are greater than, or less than, 100%. The form is incomplete if the member selected married for the marital status, but did not include the spouse’s name, last four numbers of the social security number, address and/or the Investment Plan Administrator does not already have the information listed. The Plan Administrator will notify the member and request that the member complete and submit a corrected form.

(h) If a beneficiary form is received without a marital status and a spouse has not been listed as a primary or contingent beneficiary, the member will be considered single. If a member should die, and it is later determined the member is married, the account will be updated accordingly and benefits will be paid based on the member being married.

(5)(a) If a member is married and the spouse is designated as a primary beneficiary, regardless of whether the percentage allocated to the spouse on the form is less than 100%, the member is not required to notify the spouse.

(b) If a member is married and names a primary beneficiary(ies) and the person(s) named is not the spouse of the member, then the member is required to notify the spouse that the spouse is not a primary beneficiary of the proceeds of the member’s Investment Plan account(s). The spouse must acknowledge that the spouse understands that the spouse is not a primary beneficiary of the member’s Investment Plan account(s) by signing the beneficiary designation form, Form IPBEN-1, rev. 07-23, in the appropriate place or submitting the FRS Investment Plan Acknowlegement of Beneficiary Desination Form, Form IPBENACK-1, rev. 07-23, http://www.flrules.org/Gateway/reference.asp?No=Ref-16548, which is hereby adopted and incorporated by reference.

(c) If a married member fails to obtain the spouse’s acknowledgment on the beneficiary designation form, then the Investment Plan Administrator will send to the member an Acknowledgement of Beneficiary Designation, reminding the member of the necessity of obtaining spousal ackowledgement. The member must return this Acknowledgement of Beneficiary Designation with the spouse’s signature which will provide acknowledgement that the spouse is not the primary beneficiary of the member’s Investment Plan account(s).

(d) If the member fails to obtain the spouse’s acknowledgement that a beneficiary, other than the spouse, has been designated as the primary beneficiary of the member’s Investment Plan benefit, or if the spouse cannot be located, the beneficiary designation on file with the Investment Plan Administrator at the time of the member’s death will be honored only if the spouse’s rights as a beneficiary are not compromised under Florida law. If the spouse cannot be located or refuses to sign the acknowledgement, the member may request that the acknowledgement requirement be waived by submitting an affidavit setting forth facts and circumstances.

(6)(a) An Alternate Payee may name a beneficiary to receive the benefits which may be payable in the event of the Alternate Payee’s death at any time, as outlined in subsection (2) and paragraphs (5)(a) through (f) above, once the Alternate Payee’s account has been established by the Investment Plan Administrator.

(b) If the Alternate Payee does not name a beneficiary(ies), then the Alternate Payee’s beneficiary(ies) will be those as described in subsection (1).

(7) Per Florida Law Beneficiary Designation.

(a) If a member fails to designate a beneficiary as outlined in subsection (2) above, the member’s designation of beneficiary will automatically be assigned a designation of “Per Florida Law” as outlined in Section 121.4501(20), F.S. To establish entitlement to the member’s account, the benficary(ies) may be required to provide the following, as applicable: a copy of the marriage certificate, copy of the member’s birth certificate, copy of the birth certificate(s) of the beneficiary(ies), legal guardianship documents issued by a court of competent jurisdiction, a notarized written statement confirming the identity of all surviving family members, tax identification number of the member’s estate, or a notarized written document stating that the deceased is not survived by a spouse, child(ren) or parent(s).

(b) If, upon the death of a member, a beneficiary(ies) can be identified in accordance with Florida statute, but no social security number or address of the beneficiary or beneficiaries is available, the Investment Plan Administrator will, with the assistance of the State Board of Administration (SBA), make a reasonable effort to obtain each beneficiary’s Social Security Number or Taxpayer Identification Number, using available search tools, including the internet, LexisNexis Accurint, or another third party vendor providing such services. If a beneficiary can be identified and the social security number is provided, the transfer of benefits will be executed by the Investment Plan Administrator.

(c) If, upon the death of a member, a beneficiary cannot be identified, the provisions of paragraph (d) below, will be followed.

(d) After one year from the date of the member’s death, if the beneficiary cannot be located or if a beneficiary cannot be identified, the account will be transferred to the Suspense Account. By calendar year-end of each year following the transfer to the Suspense Account, the Investment Plan Administrator will attempt to locate and obtain the Social Security Number or the Taxpayer Identification Number of the beneficiary. The transferred funds shall be invested in the FRS Core Plus Bond Fund. The amount will be held in the Investment Plan Suspense Account until (1) the beneficiary contacts the FRS Investment Plan; or (2) another beneficiary requests consideration as the deceased’s proper beneficiary; or, (3) at the end of 10 years in the Suspense Account, the amount is transferred to the Investment Plan Forfeiture Account, where it is held indicating the name of the deceased member and the name of the beneficiary, if known.

(e) Should the beneficiary be located who then is willing to provide a social security number, a check will be issued to that beneficiary. The check will include actual earnings that have accrued on the funds from the date of transfer from the member’s account to the Suspense Account and/or Forfeiture Account. Such payment will be subject to applicable income tax withholding, which shall be paid to the tax authorities at the time of the issuance of the check to the beneficiary.

(8) Distributions to beneficiaries on the death of a member occurring before January 1, 2022.

(a) If a member dies before his or her effective date of retirement, the member’s spouse at the time of his or her death shall be the member’s beneficiary, unless the member has designated a different beneficiary after the member’s most recent marriage. If the member did name another beneficiary after his or her most recent marriage, the named beneficiary will receive the member’s account balance.

(b) Upon notification of the member’s death, the Investment Plan Administrator will contact the designated beneficiary or the family of the deceased member and provide instructions on how to claim any benefits.

(9) Distributions to designated or per Florida law spousal beneficiaries.

(a) The member’s surviving spouse must provide a certified copy of the member’s death certificate and, if the spouse is not designated by the member, but is the beneficiary according to Florida law, the surviving spouse must provide a copy of the marriage certificate before benefits will be paid.

(b) Spousal beneficiaries may request the following distributions:

Full distribution, in which the entire account balance is paid in one lump sum. If this option is selected, the spouse no longer will be a member of the Investment Plan.
Partial Distribution, which provides for a partial lump sum payment of the account balance. The remainder may be paid out through regular periodic payments that the spouse selects, such as monthly, quarterly, semi-annually or annually. The spouse also may defer payment of the remainder of the account balance and take additional partial lump sum payments as needed.
Periodic Payments, which allows for the establishment of a regular payment schedule of benefits, such as monthly, quarterly, semi-annually or annually. The amount of each benefit payment will be calculated by dividing the account balance on the date of the benefit payment by the remaining number of payments. As such, the amount of the benefit payment may change with each payment. If the account has multiple funds and sources, the periodic withdrawal amount will be prorated among all funds and sources in the account. The number of years over which the payments are made cannot exceed the spouse’s life expectancy, which is determined by an actuarial table prepared by the U.S. Department of the Treasury.
Deferrals until a certain age, which allows the spouse to defer the receipt of benefits until a later date. However, the spouse must begin receiving the benefit payout no later than April 1 in the calendar year after the member would have attained age 72. The spouse may elect a full distribution, partial distribution or periodic payment. However, the total annual benefit payment must equal or exceed the federal Required Minimum Distribution (RMD). An additional benefit payment will be sent to the spouse in December of any year in which the total periodic payments for that year do not equal or exceed the spouse’s RMD.
Roll over the account assets to another 401(a), 401(k) or a 403(b) plan, or to an Individual Retirement Account or Roth IRA.
Annuity, using the entire or partial account balance.

(10) Distributions to designated non-spousal individual beneficiaries and look-through trusts or beneficiaries determined by Florida law.

(a) In accordance with Internal Revenue Service (IRS) rules, non-spousal beneficiary accounts cannot be held indefinitely in the Investment Plan. The “required minimum distribution” is required by the Internal Revenue Service and spelled out in IRS Code s. 401(a)(9), requiring that if the beneficiary is not a spouse, the Investment Plan can hold the distribution for no more than 5 years from the date of the member’s death.

(b) For a non-spousal beneficiary or a look-through trust beneficiary, there are two possibilities, depending upon whether payments from the account had commenced before the member’s death:

Where distributions have already begun to the member, but the member dies before the entire account has been distributed, the remaining portion of the account must be distributed at least as rapidly as under the method of distribution being used as of the date of the member’s death.
If a member dies before the distribution of the member’s account has begun, the entire account of the member must be distributed within 5 years after the death of the member, unless:

a. The member’s account will be distributed over the life of the designated beneficiary or the beneficiary of the look-through trust (or over a period not extending beyond the life expectancy of such beneficiary); and,

b. Such distributions begin no later than 1 year after the member’s death.

(c) The non-spousal beneficiary must decide within 1 year of the date of death to take lifetime installment or annuity payouts.

(d) If the whole amount is not paid out during the required 5-year period, the remaining funds in the account will be paid in a lump sum to the non-spousal beneficiary.

(e) Non-spousal individual beneficiaries and look-through trusts may request the following distributions:

Full distribution, in which the entire account balance is paid in one lump sum. If this option is selected, the beneficiary no longer will be a member of the Investment Plan.
Partial Distribution, which provides for a partial lump sum payment of the account balance. The remainder may be paid out through regular periodic payments, such as monthly, quarterly, semi-annually or annually. The beneficiary also may defer payment of the remainder of the account balance and take additional partial lump sum payments as needed.
Periodic Payments, which allows for the establishment of a regular payment schedule of benefits, such as monthly, quarterly, semi-annually or annually. The amount of each benefit payment will be calculated by dividing the account balance on the date of the benefit payment by the remaining number of payments. As such, the amount of the benefit payment may change with each payment. If the account has multiple funds and sources, the periodic withdrawal amount will be prorated among all funds and sources in the account. The number of years over which the payments are made cannot exceed the life expectancy of the non-spousal beneficiary or of the beneficiary of the look-through trust, which is determined by an actuarial table prepared by the U.S. Department of the Treasury. If the beneficiary stops the payment for any reason, then the payout of the benefits will be governed by the time limitations set forth in paragraph (b).
Deferrals of up to 5 years, however the benefit must be distributed within 5 years after the death of the member, if the conditions in subparagraph (b)2., above, have not been met.
Annuity, using the entire or partial account balance.

(11) Distributions to the member’s designated estate or to a designated non look-through trust.

(a) A beneficiary which is either the member’s estate or a non look-through trust is considered as a non-person. Pursuant to Code s. 401(a)(9), the entire interest of the member must be distributed to such beneficiary within 5 years after the death of the member.

(b) The estate or non look-through trust beneficiary has two options for receiving the benefit payment:

Full distribution, in which the entire account balance is paid in one lump sum. If this option is selected, the beneficiary no longer will be a member of Investment Plan.
Deferrals of up to 5 years, however the benefit must be distributed within 5 years after the death of the member.

(12) Distributions to Beneficiaries for members dying on or after January 1, 2022.

(a) The form and timing of distributions to a beneficiary will depend on whether the beneficiary is defined under Federal law as an Eligible Designated Beneficiary, a Non-Eligible Designated Beneficiary or a Non-Designated Beneficiary.

(b) An “Eligible Designated Beneficiary” is either the member’s surviving spouse, the member’s minor child (who is a child younger than 18 years of age), a disabled individual, a chronically ill individual or a person not more than 10 years younger than the member (and would include parents, siblings and unmarried partners of the deceased member if they are not more than 10 years younger than the member).

(c) Minor children enjoy Eligible Designated Beneficiary Status only until they reach the age of majority. Once they reach majority, they become Non-Eligible Designated Beneficiaries.

(d) A “Non-Eligible Designated Beneficiary” is a designated beneficiary that does not fit into one of the five categories of beneficiaries that are considered to be Eligible Designated Beneficiaries, and includes look-through trusts that are compliant with IRS regulations.

(e) A Non-Designated Beneficiary is a non-person entity, such as an estate, charity or a non-qualifying (non-look-through) trust.

(13) Distributions to Eligible Designated Beneficiaries.

(a) Surviving spouse as sole beneficiary.

Whether the member dies before or after his or her required beginning date for required minimum distributions (or April 1 of the year after the later of the year the member reaches age 72 or the year the member retires), a surviving spouse who is the sole eligible designated beneficiary, must decide whether to retain the account in the deceased member’s name as an inherited retirement account or whether to rollover the funds to the surviving spouse’s own retirement account.
If an election is made to do a spousal rollover, the surviving spouse may name a new beneficiary and take distributions on the surviving spouse’s own required beginning date for required minimum distributions. Once the account is in the surviving spouse’s name, any distributions taken before the surviving spouse reaches age 59 ½ may trigger the 10% early distribution penalty.
Any required distributions that are required to be taken for the year in which a spousal rollover occurs must be made prior to the actual rollover occurring, since required minimum distributions cannot be taken from the new account. If it is the year of the deceased member’s death, and deceased member had not received his or her required minimum distribution before death, that distribution must be made before the rollover. If it is any year after the year of death, the required minimum distribution due to the beneficiary must be made before a rollover can occur.
If an election is made to maintain the account in the deceased member’s name and to take required minimum distributions under the life expectancy payout option, the surviving spouse must begin receiving distributions by the later of: December 31 of the year after the member’s death; or December 31 of the year the deceased member would have reached age 72 (age 73 if the member reaches age 72 after December 31, 2022).
If an election is made to maintain the account in the deceased member’s name but the surviving spouse fails to make an election to take a life expectancy payout option by the later of December 31 of the year after the member’s death; or December 31 of the year the deceased member would have reached age 72, then the surviving spouse will be required to receive a lump-sum distribution by December 31 of the year after the year of death or to take distributions under one of the following rules:

a. If the member dies before his or her required beginning date, then distributions must be made within 10 years.

b. If the member dies on or after his or her required beginning date, then the remaining life expectancy of the member is used as the required payout period.

(b) Eligible Designated Beneficiary Other than a Surviving Spouse.

Whether the member died before or after his or her required beginning date, the Eligible Designated Beneficiary may make a life expectancy payout election.
The non-spouse Eligible Designated Beneficiary may wish to directly rollover the inherited retirement plan account of a direct trustee-to-trustee transfer to a new retirement plan account not already owned by the beneficiary and that is titled in the name of the deceased member for the benefit of the beneficiary.
The life expectancy election must be made by December 31 of the year after the year of the member’s death.
If the election is not timely made, the non-spouse Eligible Designated Beneficiary will be required to receive a lump-sum distribution by December 31 of the year after the year of the member’s death or to take distributions under one of the following rules:

a. If the member dies before his or her required beginning date, then distribution must be made within 10 years.

b. If the member died on or after his or her required beginning date, then the remaining life expectancy of the member is used as the required payout period.

c. If the plan account is payable to multiple eligible designated beneficiaries, payouts to all beneficiaries must be made using the life expectancy of the oldest beneficiary.

d. In the case of multiple beneficiaries, unless all of the beneficiaries are individuals as of the determination date (i.e., September 30th of the year after the member’s year of death, none of the individuals are designated beneficiaries.)

Whether the member dies before or after his or her required beginning date, the deceased member’s account must be distributed by December 31 of the 10th year following the member’s death.
A Non-Eligible Designated Beneficiary may elect to take distributions ratably throughout the 10 year period or take the total account at the deadline, or elect some distribution combination in between.

(d) No Designated Beneficiary.

If the member died before his or her required beginning date, the member’s entire account must be paid by the end of the fifth calendar following the member’s death.
If the member died on or after his or her required beginning date, distributions must be made over the remaining life expectancy of the deceased member.

(e) “Life expectancy” for all distributions is to be determined by an actuarial table prepared by the U.S. Department of the Treasury.

(14) Procedures for distributions to beneficiaries who are minors.

(a) A minor is a child under the age of 18.

(b) When a minor child or children is/are the designated beneficiaries of the member, whether the member is the minor’s or minors’ parent, grandparent, sibling, other relative or any other person, a copy of the birth certificate of each minor child and the social security number for each minor child must be provided to the FRS Investment Plan Administrator, and must be received prior to any payout, regardless of the amount.

(c) Section 744.301, F.S., allows for the natural guardian (surviving parent(s)) to handle benefits to a minor child where that amount does not exceed $15,000, without court appointment, authority or bond. The birth certificate provides proof as to identity of the natural guardian(s) of the children, so that appropriate payment arrangements may be made.

(d) In all cases in which a minor is a beneficiary of an account balance which is greater than $15,000, the surviving parent(s), or other relative or other interested party, must apply for a formal guardianship. A court order or court appointment and Letters of Guardianship will be required prior to payout of any benefits to the minor. The FRS Investment Plan Administrator shall place a hold on any account where the minor beneficiary is to receive an amount in excess of $15,000.00 and advise the SBA.

(e) If the individual responding to the correspondence sent by the Administrator and providing instructions for payout is not the surviving parent(s), the Administrator shall request the individual to provide a Court Order wherein a guardian has been appointed for the minor, prior to payout of any benefit and the Administrator shall take directions only from the named guardian.

(f) If no instructions for payout are received, the Administrator shall notify the SBA and the SBA will contact the probate court with jurisdiction over the estate of the member to request direction on the disposition of the minor’s interest in the account. Expenses shall be deducted from the member’s account.

(15) A beneficiary, whether designated or pursuant to Florida law, of a deceased member who, by a verdict of a jury or by a court trying the case without a jury, is found guilty, or who has entered a plea of guilty or nolo contendere, of unlawfully and intentionally killing or procuring the death of such member shall forfeit all rights to the deceased member’s retirement benefits. Any benefits will be paid as if such beneficiary had predeceased the deceased member. No benefits will be paid until there is a final resolution of such charges against the beneficiary.

(16)(a) If the deceased member has designated a beneficiary but has not provided the designated beneficiary’s social security number or address, or has provided an incorrect social security number, then, after at least three unsuccessful attempts by the SBA or the Investment Plan Administrator to locate the beneficiary, the Investment Plan Administrator will advise the SBA accordingly and the account will not be distributed.

(b) The Investment Plan Administrator will, with the assistance of the SBA, at the time of notification of death, make a reasonable effort to obtain the beneficiary’s Social Security Number or Taxpayer Identification Number, using available search tools, including the internet, LexisNexis Accurint, or another third party vendor providing such services.

(c) After one year from the date of the member’s death, if the beneficiary cannot be located, the account will be transferred to the Suspense Account. No later than calendar year-end, of each year following the transfer to the Suspense Account, the Investment Plan Administrator will attempt to locate and obtain the Social Security Number or the Taxpayer Identification Number of the beneficiary. The transferred funds shall be invested in the FRS Core Plus Bond Fund. The amount will be held in the FRS Investment Plan Suspense Account until (1) the beneficiary contacts the Investment Plan; or (2) another beneficiary requests consideration as the deceased’s proper beneficiary; or, (3) at the end of 10 years in the Suspense Account, the amount is transferred to the Investment Plan Forfeiture Account, and the Administrator will maintain a record of the name of the deceased member and the name of the beneficiary, if known.

(d) Should the beneficiary be located and provides a social security number, a check will be issued to the beneficiary, with actual earnings, from the date of transfer from the member’s account to the Suspense Account and/or Forfeiture Account subject to applicable income tax withholding, which shall be paid to the tax authorities at the time of such payment to the beneficiary.

(17)(a) Pursuant to Federal guidelines, if the deceased member’s account is to be paid to the member’s estate but no Estate Identification Number is provided, the account will not be paid to the Estate until the Estate Identification Number is received. In the event that no Estate Identification Number is provided within one year from the date of notification to the Investment Plan Administrator of the member’s death, the Investment Plan Administrator will transfer the deceased member’s account to the Suspense Account indicating the name of the deceased member. If after 10 years after the date of death, the Investment Plan Administrator has not received an Estate Identification Number, the deceased member’s account will be transferred to the Investment Plan Forfeiture Account and the Administrator will maintain a record of the name of the deceased member. The transferrred funds shall be invested in the FRS Core Plus Bond Fund.

(b) The Investment Plan Administrator will, at the time of the transfer to the Suspense Account, make a reasonable effort to obtain the Estate Identification Number. Additionally, by calendar year-end of each year following the transfer to the Suspense Account, the Investment Plan Administrator will attempt to locate and obtain the Estate Identification Number.

(c) The amount will be held in the Investment Plan Suspense Account until (1) the member’s estate representative contacts the Investment Plan; or (2) a beneficiary requests consideration as the deceased’s proper beneficiary; or, (3) at the end of 10 years in the Suspense Account, the amount is transferred to the Investment Plan Forfeiture Account, and the Administrator will maintain a record of the name of the deceased member.

(d) Should the estate’s representative subsequently provide an Estate Identification Number, a check will be issued to the estate, with actual earnings while invested in the FRS Core Plus Bond Fund, from the date of transfer from the member’s account to the Suspense Account and/or Forfeiture Account. Any applicable income tax withholding shall be paid to the appropriate tax authorities at the time of the benefit payment to the estate.

(18) If the social security number and date of birth of a beneficiary are known, an account will be established in the beneficiary’s name and funds will be transferred thereto. If any other beneficiaries are named, accounts also will be established in their names, provided their social security numbers and dates of birth are made known to the Investment Plan Administrator. However, no distribution will be made to any beneficiary until a certified copy of the member’s death certificate has been received. In the meantime, the beneficiary will have control over any investment elections/allocations for the account. The beneficiary will be notified of the establishment of the account and will receive a PIN to access information pertaining to the account.

(19)(a) A designated beneficiary may disclaim any monetary interest as provided in chapter 739, F.S., and Internal Revenue Code s. 2518. A beneficiary can make a partial disclaimer or disclaim the entire interest. When a beneficiary makes a disclaimer, the beneficiary is considered to have predeceased the member, and the other beneficiaries designated by the member may then accept or disclaim any interest to which they are entitled.

(b) The general requirements for a valid disclaimer are that:

The beneficiary must provide an irrevocable and unqualified refusal to accept the assets.
The refusal must be in writing.
The written disclaimer must be submitted to the Investment Plan Administrator at the later of the following times:

a. Nine months after the retirement account owner dies.

b. Nine months after the beneficiary attains age 21, or if the beneficiary is 21 when the retirement account owner dies.

c. The beneficiary must not have accepted any of the inherited assets prior to the disclaimer.

d. The assets must pass to the successor beneficiary without any direction on the part of the person making the disclaimer.

(c) There is no special form or document that an individual must complete to disclaim inherited assets. A letter, duly notarized, is sufficient as long as it meets the requirements set forth in paragraph (b).

History

Rulemaking Authority 121.4501(8) FS. Law Implemented 121.091(5)(j), (8), 121.4501(20), 121.591(3), 732.802 FS. History–New 10-21-04, Amended 3-9-06, 11-26-07, 12-8-08, 1-7-10, 8-7-11, 7-12-12, 12-16-12, 10-15-13, 1-28-14, 12-30-15, 2-9-17, 2-12-18, 4-8-20, 5-11-22, 7-26-23, 4-22-24, 12-8-25.

Fla. Admin. Code R. 19-11.003 Distributions from FRS Investment Plan Accounts

(1) Distributions from Investment Plan accounts are made after the member terminates all employment from all Florida Retirement System (FRS) employers and meets distribution eligibility requirements as set out below in subsection (2), or after the member’s death. Monies that are rolled over from the Pension Plan Deferred Retirement Option Program (DROP) are available for immediate distribution.

(2) Distributions are available after the member terminates all employment with all FRS employers.

(a) An Investment Plan member is not entitled to an account distribution until the member has terminated and no longer is providing services, in paid or unpaid arrangements, with all FRS employers for three (3) full calendar months following the month of termination, except as provided in paragraph (d), below. This includes but not limited to, employment in any regularly established position, full-time or part-time employment, temporary employment, employment through third-parties providing services to an FRS employer, Other Personal Services (OPS), election poll employment, or substitute or adjunct teaching. Example: If a member terminates on May 15, the three full calendar months are June, July, and August. Therefore, the member cannot request a distribution until September.

(b) If the member’s termination date has not been submitted by the employer on the monthly retirement report within the three (3) calendar months, the employer can complete and return the “Employment Termination Form,” Form ETF-2, rev. 01/25, http://flrules.org/Gateway/reference.asp?No=Ref-18722, which is hereby adopted and incorporated by this reference. The termination form can be obtained by accessing the website MyFRS.com and then clicking on Forms or by calling the MyFRS Financial Guidance Line at 1(866)446-9377, Option 4 or, for members who are deaf, hard of hearing, or speech impaired, TRS 711. This form has instructions and a section for the employer to provide the member’s date of termination. Alternatively, the employer can log onto the employer page at MyFRS.com and go to FRS Online for Employer Services and submit the termination date electronically.

(c) Upon the expiration of the three (3) calendar months after termination of all employment from all FRS employers, the member may request a distribution from the Investment Plan Administrator, by calling the toll free MyFRS Financial Guidance Line at 1(866)446-9377, Option 4 (TRS 711), or by logging on to the MyFRS.com website, accessing his or her personal account information, and then requesting the distribution through the online services.

(d) A member who has reached his or her normal retirement date, as provided in Section 121.021(29), F.S., and has terminated all employment from all FRS employers for one (1) calendar month may request a one-time distribution of up to 10 percent (10%) of the vested account balance. For example, if such a member terminates on May 15, the one calendar month is June. The member can request a one-time distribution of up to 10 percent (10%) in July.

(e) A member who transfers to the Pension Plan from the Investment Plan and leaves a balance in the member’s Investment Plan account is a member of the Pension Plan and, as such, the member cannot take a distribution of the surplus Investment Plan funds until the member begins receiving their monthly Pension Plan benefit.

(3) All distributions of benefits from a member’s account(s) in the Investment Plan shall begin and be made no later than as prescribed by Code s. 401(a)(9) and the regulations issued thereunder, including any proposed regulations, and shall be subject to the incidental death benefit rules of Code s. 401(a)(9)(G). A copy of the Code section can be obtained by accessing the IRS website at irs.gov.

(a) Distribution of benefits to a member shall be made or commence not later than April 1 following the close of the calendar year during which the member attains age 73 and has terminated all employment from all FRS employers.

(b) Any benefits payable to a beneficiary designated by the member shall be distributed as set forth in Rule 19-11.002, F.A.C.

(4) A member may request benefits to be distributed as a periodic or installment distribution, a partial lump-sum payment, various annuity options, or a lump-sum distribution. A member may elect to have any portion of the eligible rollover distribution paid directly to an eligible retirement plan specified by the member as a direct rollover. Any distribution, if applicable, will be subject to the withholding of taxes which are remitted to the Internal Revenue Service.

(5) All distributions of benefits must be made in accordance with Code provisions, which shall override any distribution options inconsistent with such provisions.

(6) Distributions to Alternate Payees as a result of a Qualified Domestic Relations Order (QDRO).

(a) Upon receipt of a QDRO from a court of competent jurisdiction, the amount of the member’s Investment Plan assets specified by the QDRO will be transferred to the named alternate payee. The alternate payee may leave the transferred assets in the Investment Plan or request a distribution from the account once the account has been established in the alternate payee’s name as provided in the QDRO and the alternate payee has received a Personal Identification Number (PIN).

(b) Upon receipt of the PIN, the alternate payee may request a distribution by calling the toll free MyFRS Financial Guidance Line at 1(866) 446-9377, Option 4 or by logging on to MyFRS.com, going to “Investment Plan,” accessing his or her personal account information, and then requesting the distribution through the online services.

(7) De Minimis Distributions.

(a) If an inactive member’s account balance is $1,000.00 or less, such amount may be subject to an automatic distribution. However, a distribution will not occur until the member has been terminated from all employment with FRS-participating employers for a minimum of six (6) calendar months.

(b) If the member meets the termination requirements and upon receiving notification of the automatic distribution, the distribution either will be made as a complete lump-sum liquidation of the account balance, subject to the provisions of the Internal Revenue Code, or if so instructed by the member, a lump-sum direct rollover distribution on the member’s behalf paid directly to the custodian of an eligible retirement plan, as defined by the Internal Revenue Code. If a member rolls money into the Investment Plan from another qualified plan, which brings the account balance greater than $1,000.00, no automatic distribution will occur unless the balance should become $1,000.00 or less in the future.

(c) If such member returns to work for an FRS employer after receiving this automatic distribution, the member is not considered a reemployed retiree and will not be subject to any limitation applicable to such employees.

(8) Required Minimum Distributions (“RMD”).

(a) Members, age 73 or older, must begin taking an annual minimum distribution from their Investment Plan accounts if they have terminated all employment with FRS employers.

(b) The amount of an RMD in any year is based on account balances as of December 31st of the prior year. Once the RMD has been calculated, the RMD will be paid to the member, even if the member returns to employment with an FRS employer during the calendar year.

(c) The Investment Plan Administrator will notify a member who is subject to an RMD distribution at the beginning of each calendar year. At the end of the calendar year in which the RMD was required to be paid, if the member has not requested the required RMD distribution amount, the Investment Plan Administrator will initiate an automatic RMD to meet the mandatory required distribution amount. Members have the right to defer the initial RMD to April of the year following the year in which the RMD was payable. Members can defer the initial RMD by calling the Investment Plan Administrator at 1(866)446-9377, Option 4 or, for members who are deaf, hard of hearing, or speech impaired, TRS 711, by November 30.

(d) If such member returns to work with an FRS employer after receiving this automatic distribution, the member is not considered a reemployed retiree and will not be subject to any limitations applicable to such employees.

(9) Pending Distributions.

(a) An Investment Plan member eligible to request a distribution pursant to subsection (2) above, may request a distribution forty five (45) days prior to his or her eligibility date and have it pended for processing until the first business day of the month the member is eligible for the distribution. A member who has reached his or her normal retirement date is eligible to request a distribution fifteen (15) days prior to his or her eligibility date for the one-time distribution of up to ten (10%) of the member’s vested account balance. The distribution will process after 4:00 p.m. (EST) on the first business day of the month the member is eligible for the distribution. The distribution will be based on the total account balance at the close of business on the day the distribution is processed. The member can call the Investment Plan Administrator at 1(866)446-9377, Option 4, or, if deaf, hard of hearing, or speech impaired, at TRS 711, to process the distribution.

Example 1: A member terminates on May 15. The three calendar months are June, July, and August. Thus, the member is eligible to request a distribution the first business day of September. On July 15, or the first business day after July 15, the member can call the Investment Plan Administrator to process the distribution. The distribution will pend and process on the first business day in September.
Example 2: A member who has reached his or her normal retirement as provided in paragraph (2)(a) above, terminates on August 15. One full calendar month is the month of September. The member is eligible to request a one-time distribution of up to 10 percent (10%) of the vested account balance on the first business day of October. On September 15, or the first business day after September 15, the member can call the Investment Plan Administrator to process the distribution. The distribution will pend and process on the first business day in October.

(b) A member can make changes to a pending distribution up until 4:00 p.m. (EST) on the pending distribution date. Example: If a pending distribution is scheduled to process on June 1, the member can make changes to the pending distribution up to 4:00 p.m. (EST) on June 1.

(c) A member who returns to employment with an FRS employer in any capacity during the pending distribution period must notify the Investment Plan Administrator to cancel the distribution.

(d) If the Investment Plan Administrator receives notification that the member’s employment status has changed from terminated to active during the pending distribution period, the pending distribution will be canceled.

(e) A distribution cannot be pended if the member has passed his or her distribution eligibility date.

(10) Invalid distributions.

(a) If a member or a former member of the Investment Plan receives an invalid distribution, the member or former member is required to repay the entire invalid distribution within ninety (90) days of the member’s receipt of a final notification from the SBA, or in lieu of repayment, the member must terminate all employment from all FRS-participating employers. If the member fails to repay the invalid distribution, or terminate employment, the employer is liable for the repayment of the invalid distribution even if the member signed a statement at the time the member was hired that no benefit had been received from the Plan.

If a member repays the entire distribution, the member’s repayment will be deposited in the member’s Investment Plan account; the member will be returned to the Investment Plan; and all future employee and employer contributions will be deposited in the funds the member has chosen.
If the employer repays the entire distribution, the repayment will be deposited in the Investment Plan Trust Fund and allocated to the Investment Plan’s forfeiture account to offset plan expenses. The member will be returned to the Investment Plan; and all future employee and employer contributions will be deposited in the funds the member has chosen. The member will not receive contributions for the amount repaid by the employer.
If the member fails to repay the invalid distribution and terminates employment, the SBA will declare the member a retiree and will not pursue the repayment of the invalid distribution pursuant to paragraph (a), above. As a retiree, the member is subject to the provisions of Section 121.122, F.S., if the member is reemployed in the future with an FRS-participating employer in a regularly established position.

(b) The following are examples of scenarios that could result in invalid distributions. These are only examples and are not inclusive of all possible situations. Members and employers are encouraged to contact the Investment Plan Administrator to discuss the particular situation.

Example 1: A member joined the Investment Plan effective September 1, 2002. The member terminated all employment from his FRS employer on August 24, 2023. On December 15, 2023, the member takes a partial distribution from the Investment Plan account. However, the member returned to employment with an FRS employer on December 1, 2023. The member took an invalid distribution because the member was working for an FRS employer at the time the member received the distribution.
Example 2: A member joined the Investment Plan effective April 1, 2004. The member terminates employment with an FRS employer on November 12, 2023. On March 1, 2024, the member takes a total distribution from his Investment Plan account. The member returns to employment as a substitute teacher with an FRS employer on April 15, 2024. The March 1, 2024 distribution is invalid since the member returned to work within six (6) full calendar months of the retirement date.
Example 3: A member joined the Investment Plan effective May 1, 2005. The member terminates employment with the member’s FRS employer on November 12, 2023. The member has reached the normal retirement date. On January 5, 2024, the member receives the one-time distribution of up to 10 percent from the Investment Plan account. The member returns employment with an FRS employer on May 15, 2024. The January 5, 2024, distribution is invalid since the member returned to work within six (6) calendar months of the member’s retirement date.
Example 4: A member joined the Investment Plan effective December 1, 2010. The member is terminated by his FRS employer on April 3, 2022, for violating standards of employee conduct. The member files a grievance against the employer and requests to be reinstated with full back pay. On February 15, 2023, the member requests a total distribution from their Investment Plan account. On September 22, 2023, the member’s grievance is granted, the member’s termination is negated and the member is reinstated to employment as of April 3, 2022 with full back pay through September 22, 2023. The member’s employment records are corrected to show the member had an employee/employer relationship from April 3, 2022 through September 22, 2023. The member’s February 15, 2023, distribution is invalid since the member was not terminated from employment with an FRS employer at the time the member received the distribution.

(11) Documentation of a distribution made prior to January 1, 2010.

A member or beneficiary who requests documentation of a distribution made prior to January 1, 2010, will incur a special service charge due to the extensive resources required to retrieve and produce such documentation, if such retrieval is possible. The requestor will be advised of the amount of such charge at the time the request is made. Upon payment of the charge by the requestor, the request will be promptly processed. If the document cannot be retrieved, the payment will be reimbursed to the requestor.

History

Rulemaking Authority 121.4501(8) FS. Law implemented 119.07(4)(d), 121.021(29), (39), 121.091(5)(j), 121.4501(20), 121.591, 121.77, 732.802 FS. History-New 3-9-06, Amended 11-26-07, 5-19-09, 1-7-10, 8-7-11, 7-12-12, 12-16-12, 12-30-15, 4-12-17, 2-12-18, 5-11-22, 4-22-24, 12-8-25.

Fla. Admin. Code R. 19-11.004 Excessive Trading in the FRS Investment Plan

(1) Excessive trading by Investment Plan members is prohibited. The United States Securities and Exchange Commission (SEC) has adopted Rule 22c-2. (17 CFR §270.22c-2.), regarding excessive trading for open-end mutual funds. Rule 22c-2 can be obtained by accessing the SEC website at sec.gov and clicking on the Regulation section. If the mutual funds determine that the member has engaged in excessive trading under the mutual funds’ policies, the mutual funds are entitled to impose redemption fees or prevent trading that violates the mutual funds’ excessive trading policies. It is the responsibility of the member to comply with the trading restrictions permitted by the SEC. Any applicable fees will be deducted directly from the members’ accounts. Funds within the Self-Directed Brokerage Account (“SDBA”) may have excessive trading rules that are applicable. However, these fund rules are separate and apart from the Investment Plan’s Excessive Fund Trading Guidelines.

(2) Limitations.

(a) Foreign and global stock funds are subject to a minimum holding of seven (7) calendar days following any non-exempt transfers into such funds.

(b) All authorized investment funds, except for money market funds, stable value funds, and funds within the SDBA, are subject to the following controls:

Members who engage in Market Timing Trades (as defined in Rule 19-11.001, F.A.C.) in authorized primary funds will receive a warning letter sent by U.S. mail. The warning letter shall notify the member that excessive trades have been identified in the member’s accounts and any additional violations will result in a direction letter and restrictions.
Members who engage in Market Timing Trades in authorized primary funds and who have previously received a warning letter described in subparagraph 1. above, will be sent a direction letter delivered by courier. The direction letter shall require that the member shall not have access to automated online trade instructions for at least one full calendar month following the date of the direction letter for all trades involving the primary funds. The member shall be required to conduct trades involving primary funds via telephone by contacting the Investment Plan Administrator for at least one full calendar month. “One full calendar month,” in this context, means the full calendar month following the month in which the member engaged in a market timing trade.
Members who engage in Market Timing Trades and who have previously received a direction letter, as described in subparagraph 2., above, will be sent another direction letter, delivered by courier. This direction letter shall require that the member shall not have access to automated trade instructions for at least three full calendar months following the date of the direction letter for all trades involving the primary funds. The member shall be required to conduct trades involving primary funds via telephone by contacting the Investment Plan Administrator for at least three full calendar months.
Members who engage in Market Timing Trades and who have previously received a direction letter as described in subparagraph 3. above, will be sent another direction letter, delivered by courier. The direction letter will advise the member that the member will only be permitted to conduct trades involving primary funds via paper trading forms for at least three full calendar months following the date of the direction letter. The form to be used by the member in conducting the trades is the “Transfer Request Form, Excessive Fund Trading Violators,” Form EFTPV-1, rev. 06-18, http://www.flrules.org/Gateway/reference.asp?No=Ref-14012, which hereby is adopted and incorporated by this reference. The form will be sent to the member by the Plan Administrator with the direction letter. This form must be notarized and returned to the Office of Defined Contribution Programs, via U.S. mail, certified\return receipt requested. This form cannot be used to trade in, out or within the SDBA.
Members who engage in Market Timing Trades and who have previously received a direction letter as described in subparagraph 4. above, will be sent another direction letter, delivered by courier. The direction letter shall require that the member shall only be permitted to conduct trades involving primary funds via paper trading forms for at least twelve full calendar months following the date of the direction letter. The form to be used by the member in conducting the trades is the “Transfer Request Form, Excessive Fund Trading Violators,” Form EFTPV-1, rev. 06-18. This form must be notarized and returned to the Office of Defined Contribution Programs, via U.S. mail, certified\return receipt requested.
Members who engage in Market Timing Trades and who have previously received a direction letter as described in subparagraph 5. above, will be sent another direction letter, delivered by courier. The direction letter will advise the member that the member will only be permitted to conduct trades involving primary funds via paper trading forms for the remainder of any time that any balance exists in the member’s Investment Plan account following the date of the direction letter. The form to be used by the member in conducting the trades is the “Transfer Request Form, Excessive Fund Trading Violators,” Form EFTPV-1, rev. 06-18. This form must be notarized and returned to the Office of Defined Contribution Programs, via U.S. mail, certified/return receipt requested.
If the member submits a transfer request form that is incomplete, the form will not be processed. A form is considered as “incomplete” if it does not contain the name of the member; does not set forth the social security number of the member; is not notarized; is sent by facsimile, email or regular U.S. mail; does not specify what fund(s), dollar amount(s) or percentages(s) are to be transferred; or does not indicate the fund(s) into which the amounts are to be transferred The form also will be considered “incomplete” if there are insufficent assets to execute the transfer(s), or if the requested transfer does not comply with the FRS Investment Plan Excessive Fund Trading Guidelines. Deficiencies are corrected through the resubmission of a transfer request form that is deemed to be complete.
Members who receive direction letters and who are placed on restricted trading within their primary funds, as provided in subparagraphs 2., 3., 4., 5., and 6., of paragraph (2)(b), shall be allowed to make automated trades in, out and within the SDBA. Any such member must meet the requirements of the SDBA as provided in Rule 19-11.013, F.A.C. Such member’s activity within the SDBA is not subject to these guidelines, but will be subject to the applicable excessive trading rules and purchase restrictions of the funds in the SDBA.

(3) This subsection contains examples only. This subsection does not contain an exhaustive list of all possible transactions. Members avoiding these examples will not necessarily avoid the impact of this rule since other transactions will meet the definitions of Market Timing Trades or Excessive Trading.

(a) If Member A transfers $50,000.00 out of Fund A and into Fund B on Monday and then transfers $20,000.00 out of Fund B on Tuesday, the transaction is a Roundtrip Trade but is not a Market Timing Trade because the aggregate amount of $75,000.00 has not been met.

(b) If Member A transfers $50,000.00 out of Fund A and into Fund B on Monday and then transfers $55,000.00 out of Fund B on the following Monday, the transaction is a Roundtrip Trade and a Market Timing Trade because the aggregate amount of all trades in and out of Fund B has exceeded $75,000.00 ($50,000.00 + $55,000.00 = $105,000.00) within a 30 day period.

(c) If Member A transfers $5,000.00 out of Fund A and into Fund B on November 1 and then transfers $25,000.00 out of Fund A and into Fund B on November 3, and then transfers $10,000 out of Fund A and into Fund B on November 5 and then transfers $40,000.00 out of Fund B and into Fund A on November 15, the entire series of transactions constitutes a Roundtrip Trade and is a Market Timing Trade because the aggregate amount of all trades into and out of Funds A and B each exceeded $75,000.00 within a 30 day period.

(d) If Member A transfers $5,000.00 out of Fund A and puts $2,500.00 into Fund B and $2,500.00 into Fund C on December 1 and then transfers $25,000.00 out of Fund A and puts $20,000.00 into Fund B and $5,000.00 into Fund C on December 5, and then transfers $10,000.00 out of Fund A and puts $10,000.00 into Fund C on December 6 and then transfers $23,000.00 out of Fund B and into Fund A and $20,000.00 out of Fund C into Fund A on December 16, the entire series of transactions constitutes a Roundtrip Trade and is a Market Timing Trade because the aggregate amount of all trades into and out of Fund A exceeded $75,000.00 within a 30 day period. It is irrelevant that money has come out of one fund and been transferred into two funds because the money has been returned to the original fund.

(e) Member A transfers $50,000.00 out of Fund A and into a foreign stock fund, which already contains $100,000.00, on October 1, so that on October 1, the foreign stock fund contains $150,000.00. Member A must wait until October 9 to transfer any or all of the $150,000 in funds out of the foreign stock fund.

(f) A member has $250,000 in his Investment Plan account and that is subject to a QDRO. The member’s spouse becomes entitled to half of the member’s Investment Plan account. On December 5, the member’s spouse rolls over their entire balance into an IRA. This is neither a Roundtrip Trade nor a Market Timing Trade because the transfer is an exempt transaction, as described in paragraph (3)(b), above.

(g) Member A transfers $32,000.00 into Fund A on August 5 and then transfers $32,000.00 out of Fund A on August 11 and then transfers $31,000.00 into Fund A on August 17 and finally transfers $31,000.00 out of Fund A on August 18. The entire series of trades are Roundtrip Trades and the trades are also a Market Timing Trade because the aggregate amount of all trades exceeded $75,000.00 within a 30 day period.

(h) If Member A transfers $50,000.00 out of Fund A and into the SDBA on January 2, and then transfers $35,000.00 from the SDBA into Fund A on January 25, the transaction is a Roundtrip Trade and a Market Timing Trade because the aggregate amount of all trades into and out of Fund A exceeded $75,000.00 within a 30 day period.

(i) If Member A transfers $40,000.00 out of Fund B and into the SDBA on February 15, and then transfers $55,000.00 from Fund C into Fund B on March 3, the transaction is a Roundtrip Trade and a Market Timing Trade because the aggregate amount of all trades into and out of Fund B exceeded $75,000.00 within a 30 day period.

(4) For all members, Roundtrip and Market Timing Trades are calculated using a rolling 30-calendar day time period. For example, if a trade occurs on May 15 and the following 30-calendar day period, from May 16 through June 14, includes a sufficient number of trades to fit the definition of a Market Timing Trade, this rule shall apply.

History

Rulemaking Authority 121.4501(8) FS. Law Implemented 121.4501(13), (14), (15) FS. History–New 10-21-04, Amended 3-9-06, 10-25-07, 12-8-08, 1-7-10, 7-12-12, 6-5-14, 8-18-14, 12-30-15, 4-12-17, 2-12-18, 2-19-19, 5-11-22, 4-22-24

Fla. Admin. Code R. 19-11.005 Florida Retirement System (FRS) State Board of Administration Complaint Procedures

(1) Request for Intervention.

(a) Any Investment Plan or Pension Plan member who has a complaint regarding the FRS laws, rules, plan provisions or services rendered by an Investment Plan or MyFRS Financial Guidance Program provider or one of the representatives thereof, with the exception of the Self-Directed Brokerage Account (“SDBA”), may send a written Request for Intervention to the State Board of Administration (SBA). The member may submit the request in writing with personally identifiable information or use the form referenced in paragraph (b), below. The written Request for Intervention shall be sent:

By regular U.S. mail service to:

Investment Plan Complaint Resolution

Office of Defined Contribution Programs

State Board of Administration

P.O. Box 13300

Tallahassee, FL 32317-3300

By email: DefinedContributionPrograms@sbafla.com, or
By fax: (850)413-1489

(b) The member may use “Florida Retirement System Investment Plan Request for Intervention,” Form SBA-RFI 01/2019, contained in the FRS Investment Plan Complaint Procedures package, http://www.flrules.org/Gateway/reference.asp?No=Ref-10206, which is hereby adopted and incorporated by reference. The form may be obtained by calling the toll free number at 1(866)446-9377, Option 4, (TRS 711), and requesting that the form be mailed to the member or by accessing the MyFRS.com website and clicking on Forms. By using this form or any other written request, the member grants permission to the SBA to obtain any personally identifiable information shared with or generated by any services provider to the FRS, including the MyFRS Financial Guidance Program. The member must provide all information requested by the form.

(c) If all information is not provided, the member shall be required to submit additional information, upon notification by the SBA.

(d) Upon receipt of the complete Request for Intervention, an acknowledgment will be sent to the address provided on the form by either regular U.S. mail or emailed to the member.

(e) The SBA will conduct an investigation and will prepare and send to the member a final agency action letter detailing the SBA’s findings; any proposed resolution; and information on any next steps in the dispute resolution process.

(f) Complaints regarding the SDBA shall be handled in accordance with Rule 19-11.013, F.A.C.

(2) Request for Hearing.

(a) If the member is not satisfied with the proposed resolution as set out in the final agency action letter and the member wishes to protest the determination, the member may file a fully-completed Petition for Hearing, “Investment Plan Petition for Hearing,” Form SBA-PFH 01/2019, contained in the Florida Retirement System Investment Plan Complaint Procedures package, http://www.flrules.org/Gateway/reference.asp?No=Ref-10207, which is hereby adopted and incorporated by reference, with the SBA. The Petition for Hearing is routinely attached to the final agency action letter and may also be obtained by calling the toll free number at 1(866)446-9377, Option 4, (TRS 711), and requesting that it be sent to the member or by accessing the MyFRS.com website and then clicking on Forms. The Petition for Hearing must be received within 21 days of the member’s receipt of the agency action letter or it will be rejected as untimely and the member will have waived the right to a hearing.

(b) By signing the FRS Investment Plan Petition for Hearing, the member thereby grants permission to the SBA to obtain any personally identifiable information shared with or generated by any services provider to the FRS, including the MyFRS Financial Guidance Program. Any such information obtained will be used by the SBA for the sole purpose of resolving the complaint.

(d) If the hearing request contains a disputed issue of material fact, the SBA shall, within the required 15 days, forward the hearing request to the Division of Administrative Hearings, requesting that an administrative law judge be assigned to conduct the hearing and will notify the member accordingly.

(e) If there is no disputed issue of material fact, then the SBA shall assign the matter to an independent presiding officer, who will send out a “Notice of Proceeding and Initial Order of Instructions” to the Petitioner/member and to the Respondent or Respondent’s counsel.

(f) The balance of the hearing process shall conform to the requirements of Chapter 120, F.S.

(g) A Final Order will be issued by the SBA after the conclusion of the hearing process. The member will have appeal rights as set forth in Section 120.68, F.S. All Final Orders can be viewed by accessing the MyFRS.com website and clicking on “Resources” and then “Intervention/Final Orders.” The Final Orders are listed by category.

History

Rulemaking Authority 121.4501(8) FS. Law Implemented 120.569, 120.57, 120.573, 121.4501(8)(g) FS. History–New 10-21-04, Amended 3-9-06, 11-26-07, 5-19-09, 7-12-12, 12-16-12, 6-5-14, 12-30-15, 4-12-17, 2-19-19, 5-11-22.

Fla. Admin. Code R. 19-11.006 Enrollment Procedures for New Hires

(1) General Enrollment Procedures.

(a) All newly-hired Florida Retirement System (FRS)-covered employees are initially enrolled in the Pension Plan. If a newly-hired employee chooses, within the statutory election period, to enroll in the Investment Plan, or the Investment Plan Hybrid Option, the effective date of enrollment in the Investment Plan or the Investment Plan Hybrid Option is the date of hire of the employee.

(b) Eligible newly-hired employees enrolled in the FRS may choose to enroll in the Investment Plan or Pension Plan by submitting an enrollment form or by electronic means.

(c) Eligible newly-hired employees may enroll in the Investment Hybrid Option if they have at least five (5) years of Pension Plan service, if enrolled in the FRS prior to July 1, 2011, or at least eight (8) years of Pension Plan service, if initially enrolled in the FRS on or after July 1, 2011.

(d) Newly-hired employees eligible to enroll in the State Community College System Optional Retirement Program (SCCSORP) may only enroll in the Investment Plan by submitting an enrollment form or by electronic means.

(e) Enrollment forms for eligible newly-hired employees enrolled in the FRS are available by accessing MyFRS.com, and clicking on Forms; or by calling toll-free 1(866)446-9377, Option 2, or for the hearing impaired TRS 711.

(2) Specific Enrollment Procedures.

(a) All newly-hired employees enrolled in the FRS that are not filling a Special Risk Class position may make a plan choice and elect to enroll in the Investment Plan or Pension Plan no later than 4:00 p.m. (Eastern Time) on employee’s choice period deadline date, which is typically the last business day of the 8th month following the employee’s month of hire. If no plan choice is filed by 4:00 p.m. (Eastern Time) on the employee’s choice period deadline date, the employee will default to the Investment Plan and will be considered the employee’s initial plan choice or first election. Example: If an employee has a choice period deadline date of January 31, the employee must complete a plan choice no later than 4:00 p.m. (Eastern Time) on January 31. If no plan choice is filed by 4:00 p.m. (Eastern Time) on January 31, the employee will default to the Investment Plan.

The amount of the employee and employer contributions paid through the date of default to the Investment Plan will be transferred to the Investment Plan and placed in an age appropriate retirement date fund. The investment option may be changed by the employee once the account is funded.
Any accrued value under the Pension Plan will be transferred to the employee’s Investment Plan account as an opening account balance and are subject to the vesting requirements of the Pension Plan.

(b) All newly-hired employees enrolled in the FRS that are filling a Special Risk class position may make a plan choice and elect to enroll in the Investment Plan no later than 4:00 p.m. (Eastern Time) on the employee’s choice period deadline date, which is typically the last business day of the 8th month following the employee’s month of hire. If no plan choice is filed by 4:00 p.m. (Eastern Time) on the employee’s choice period deadline date, the employee will default to the Pension Plan and will be considered the employee’s initial plan choice or first election. Example: If an employee has a choice period deadline date of January 31, the employee must complete a plan choice no later than 4:00 p.m. (Eastern Time) on January 31. If no plan choice is filed by 4:00 p.m. (Eastern Time) on January 31, the employee will default to the Pension Plan.

(c) The employee must be actively employed, earning salary and service credit when the plan choice is processed by the Plan Choice Administrator.

(d) If the employee terminates employment during the plan choice enrollment window and fails to make a plan choice, he or she will be considered a newly-hired employee if returning to FRS-covered employment in the future and will be given another opportunity to make a plan choice. All previous service will be considered Pension Plan service.

(e) The State Board of Administration (SBA) has designed the forms set forth below for ease of use for employees in the several membership classes of the FRS. As an alternative, an employee not wishing to use the forms may provide the same information requested by the forms available for use for the appropriate membership class in a separate document. Employees may determine their membership class by contacting the agency’s human resources office. The forms available are: an EZ Retirement Plan Enrollment Form, Form ELE-1-EZ, rev. 07-21, http://www.flrules.org/Gateway/reference.asp?No=Ref-14014, which is only for regular, special risk, and special risk administrative support class employees; a General Retirement Plan Enrollment Form, Form ELE-1, rev. 01-25, http://flrules.org/Gateway/reference.asp?No=Ref-18725 for regular, special risk, and special risk administrative support class employees; an Elected Officers’ Class Retirement Plan Enrollment Form, Form EOC-1, rev. 01-25, http://flrules.org/Gateway/reference.asp?No=Ref-18726; a State Community College System Optional Retirement Program (SCCSORP) Enrollment Form, Form OCC-1, rev. 01-25, http://flrules.org/Gateway/reference.asp?No=Ref-18727; and a Senior Management Service Class Retirement Plan Enrollment Form, Form SMS-3, rev. 01-25, http://flrules.org/Gateway/reference.asp?No=Ref-18728. All of the preceding forms are hereby adopted and incorporated by reference.

All enrollment forms can be obtained at the sources listed in paragraph (1)(f), above.
Members of the Regular, Special Risk, and Special Risk Administrative Support classes of employees may use the EZ form, “EZ Retirement Plan Enrollment Form for Regular, Special Risk and Special Risk Administrative Support Class Employees,” Form ELE-1-EZ. If an employee chooses to use the EZ form, only limited information (i.e., name, plan choice, last four digits of the social security number, date of birth and signature) is required. An age appropriate retirement date fund as provided under the Plan provisions is the initial investment option (although that investment option may be changed by the member once the account is funded). A member’s initial beneficiary designation will be per Florida law, as provided in Section 121.4501(20), F.S. However, a beneficiary designation may be made as set forth in Rule 19-11.002, F.A.C.

(f)1. The enrollment by form or electronic means shall be complete and the election shall be final if all the required information is clearly indicated and if the enrollment is received by the Plan Choice Administrator by 4:00 p.m. (Eastern Time) on the employee’s choice period deadline date. The form shall be transmitted via mail, courier, online or by fax, as provided on the form. It is the responsibility of the member to ensure that the enrollment form is received by the Plan Choice Administrator no later than 4:00 p.m. (Eastern Time) on the employee’s last business day that the member is employed and earning salary and service credit, or the choice period deadline date, whichever first occurs.

The Plan Choice Administrator shall determine that the employee’s enrollment is complete and the employee’s election is clearly indicated. If the Plan Choice Administrator determines that the enrollment is incomplete, the election will not be processed, and the employee will be required to resubmit a completed enrollment. An incomplete enrollment is an enrollment which is missing the name of the member, sets forth a spelling of the member’s name or reflects a date of birth that does not match the information present in the Plan Choice Administrator’s database, or is missing the last four digits of the member’s social security number, plan selection, signature, or one on which the investment elections total greater than or less than 100%. If the form is incomplete only because the member has made no investment selection, the form will be processed and the member will be defaulted into an age appropriate retirement date fund as provided under the Plan provisions for investing any accumulated benefit obligation and all future contributions. The default selection may be changed by the member at any time once the account is activated. An incomplete enrollment by electronic means is one in which the Plan Choice Administrator has no record of receipt and/or processing of the electronic enrollment.
By enrolling in the Investment Plan and providing a personal email address or cell phone number, the member has consented to electronic delivery of documents through the MyFRS.com website, including but not limited to prospectuses, quarterly account statements, account transaction confirmation statements, privacy notices, annual fee disclosure statement, and other documents. When one of these documents is available, an email notice will be sent to the email address or a text message to the cell phone number provided by the member notifying the member of the document’s availabilty. The member will need to log in to the MyFRS.com website in order to view and print any of these documents. Receipt of documents through MyFRS.com will continue until the member calls the MyFRS Financial Guidance Line at 1(866)446-9377, Option 4 and revokes the member’s consent.

(g) Upon receipt of the completed enrollment form by the Plan Choice Administrator, the Plan Choice Administrator shall enroll the employee in the indicated FRS retirement plan. Upon completion of the enrollment, but no later than two business days after enrollment, the Plan Choice Administrator shall send confirmation of the effective enrollment to the employee at the employee’s address of record or electronically if the member has consented to electronic delivery of documents through the MyFRS.com website. The Administrator will also inform the Division of Retirement (Division) of the employee’s retirement plan choice. The employer is responsible for updating its employee records to reflect the employee’s plan choice, if applicable.

(h) A member submitting an enrollment by electronic means with an electronic signature is deemed to have agreed that the electronic signature is equivalent to a handwritten signature for purpose of validity, enforceability, and admissibility.

(i) Employers are responsible for monthly retirement contributions for their employees and those contributions are due to the Division by the 5th business day of the month following the month for which the contributions are made.

(j) A member who defaults to the Investment Plan will be automatically enrolled in electronic delivery, as provided in subparagraph (f)3. above, until the member has consented to another delivery method with the Administrator. An annual statement will be generated and mailed to the member each year, unless the member has affirmately chosen a delivery method. Paper documents will be provided free of charge, upon request.

(3) Grace Period.

(a) If a member files an election with the Plan Choice Administrator and the member realizes that the election was made in error, or if the member has reconsidered the election made, the SBA will consider, on a case-by-case basis, whether the election will be voided, if the member notifies the SBA by calling the toll-free MyFRS Financial Guidance Line at 1(866)446-9377 or by sending written correspondence directly to the SBA, to the Plan Choice Administrator, or to the Division no later than 4:00 p.m. (Eastern Time) on the last business day of the election effective month. For example, if the member files an election on June 1, the effective month will be July. The member must request to void the election no later than 4:00 p.m. (Eastern Time) on the last business day in July. A default election cannot be voided.

(b) If the request to reverse the election is made timely and the SBA finds that the election was made in error or grants the request for reconsideration, the member will be required to sign a release and return it to the SBA by the designated due date no later than 4:00 p.m. (Eastern Time). Failure to return a signed release by the requested due date will result in the member remaining in the elected retirement plan.

The Division will revise its database to reflect the member’s plan change. The member will have until his or her plan choice deadline date to make a new election. If the member’s choice period has ended, the member will have one calendar month to make a new election. Failure to make a new election will result in the member’s defaulting into the Investment Plan or Pension Plan as provided in paragraphs (2)(a) and (b) above.
The Plan Choice Administrator will send the member written confirmation that the election has been reversed.

(d) Nothing contained in this subsection will interfere with a member’s right to file a complaint, as permitted by Section 121.4501(8)(g), F.S., and discussed in Rule 19-11.005, F.A.C.

History

Rulemaking Authority 121.4501(8) FS. Law Implemented 121.051, 121.055, 121.35, 121.4501(2), (3), (4), (5), (6), (8), (15), 121.73, 121.74, 121.78, 1012.875(3) FS. History–New 10-21-04, Amended 3-9-06, 10-25-07, 12-8-08, 5-19-09, 2-4-10, 7-12-12, 12-16-12, 1-28-14, 8-18-14, 12-30-15, 4-12-17, 2-12-18, 2-19-19, 4-8-20, 5-11-22, 7-26-23, 4-22-24, 12-8-25, Reviewed 8-26-26.

Fla. Admin. Code R. 19-11.007 Second Election Enrollment Procedures for the Florida Retirement System Retirement Programs

(1) This rule includes procedures for members who used their first or initial election enroll in the Florida Retirement System (FRS) Investment Plan, Investment Plan Hybrid Option or defaulted into the Investment Plan to use their second election to transfer to the Pension Plan; and for members who used their first or initial election to enroll in the Pension Plan or defaulted into the Pension Plan to use their second election to transfer to the Investment Plan or the Investment Plan Hybrid Option. This rule also includes procedures for members who elected to participate in the State Community College System Optional Retirement Program (SCCSORP), in lieu of the FRS membership and want to transfer to the FRS Pension Plan or participate prospectively in the FRS Investment Plan.

(2) A member may make a valid election only if the election is made and processed by the Plan Choice Administrator during the month in which the member is actively employed and earning salary and service credit in an employer-employee relationship consistent with the requirements of Section 121.021(17)(b), F.S. Members on an unpaid leave of absence or terminated members cannot use their election until they return to FRS-covered employment and are earning salary and service credit. Employees of an educational institution on summer break cannot use their election during the full calendar months of their summer break. For example, if the last day of the school term is May 21st and the first day of the new school term is August 17th, the employee may not file a second election in the calendar months of June or July. The beginning of the school term is determined by the employer. In general terms, this means that the election can only be made and processed during the month in which the member is actively working and being paid for that work. An election received after a member’s date of death will be considered invalid, even if the member signed the election form prior to their date of death. It is the responsibility of the member to assure that the election is received by the Plan Choice Administrator no later than 4:00 p.m. (Eastern Time) on the last business day of the month the member is actively employed and earning salary and service credit.

(a) The following are examples of scenarios that could result in an invalid election. These are only examples and are not inclusive of all possible situations. Members and employers are encouraged to contact the MyFRS Financial Guidance Line to discuss their particular situation.

Example 1: A member goes on an unpaid leave of absence on November 12. On December 4, the Investment Plan Administrator receives a second election form from the member electing to transfer from the Pension Plan to the Investment Plan. The member returns from the leave of absence on January 7. The member’s second election is not valid because the member did not earn salary and service credit in the month of December. The member would be required to submit another second election during the month in which he or she is actively employed and earning salary and service credit.
Example 2: A teacher is on summer break from June 6 through August 12. On July 21, the Investment Plan Administrator receives a second election from the teacher electing to transfer from the Investment Plan to the Pension Plan. The teacher’s second election is not valid because the member did not earn salary and service credit in the month of July. The teacher would be required to submit a second election form during the month in which he or she is actively employed and earning salary and service credit once the member has returned from summer break.
Example 3: A member terminates FRS-covered employment on March 31. On April 1, the Investment Plan Administrator receives a second election from the member electing to transfer from the Pension Plan to the Investment Plan. The member’s second election is not valid because the second election form was received after the member terminated FRS-covered employment. The member would be required to return to FRS-covered employment and submit a second election form during the month in which he or she is actively employed and earning salary and service credit.

(3) An active SCCSORP participant can, at his or her discretion within the terms of his or her SCCSORP contract, exercise a one-time opportunity to transfer to the FRS Pension Plan or participate prospectively in the FRS Investment Plan.

(4) General Procedures.

(a) All members who wish to change their FRS retirement plan using their second election, or a SCCSORP member who wants to switch to the FRS, must submit an election to the Plan Choice Administrator.

A second election can be made by accessing the online Second Election Choice Service or online by completing the “2nd Election Retirement Plan Enrollment Form.” There are two types of enrollment forms. The “2nd Election Retirement Plan Enrollment Form,” Form ELE-2, rev. 01-2025, http://flrules.org/Gateway/reference.asp?No=Ref-18729, which is hereby adopted and incorporated by reference. This form allows the member to select different investment fund options if the member is changing from the Pension Plan to either the Investment Plan or the Investment Plan Hybrid Option. Alternatively, the member can complete the “2nd Election EZ Retirement Plan Enrollment Form,” Form ELE-2EZ, rev. 07-21, http://www.flrules.org/Gateway/reference.asp?No=Ref-14019, which is hereby adopted and incorporated by reference. By completing this form, the member is choosing to have the employer and employee contributions and any transfers from the Pension Plan invested in an age appropriate retirement date fund as provided under the Plan provisions. The member may change the investment selection at any time after the Investment Plan or the Investment Plan Hybrid Option account is activated. Activation occurs when contributions are deposited to the member’s Investment Plan account.
Members who want to exercise their one-time opportunity to transfer from SCCSORP to the FRS Pension Plan or participate prospectively in the FRS Investment Plan must complete the State Community College Optional Retirement Program (SCCSORP) Retirement Plan Conversion form, Form OCC-2, rev. 01-25, http://flrules.org/Gateway/reference.asp?No=Ref-18730, which is hereby adopted and incorporated by reference.

(b) Election forms are available by calling the toll-free number for the MyFRS Financial Guidance Line: 1(866)446-9377, Option 4 or for members who are deaf, hard of hearing, or speech-impaired: TRS 711; or by using the MyFRS.com website and clicking on Forms.

(c) Elections made by form must be mailed to the Plan Choice Administrator, P.O. Box 785027, Orlando, Florida 32878-5027; or faxed toll-free to the number provided on the form. It is the responsibility of the member to ensure that the second election form is received by the Plan Choice Administrator.

(d) For members transferring to the Investment Plan who provide a personal email address or cell phone number, the member has consented to electronic delivery of documents through the MyFRS.com website, including but not limited to prospectuses, quarterly account statements, account transaction confirmation statements, privacy notices, annual fee disclosure statement, and other documents. When one of these documents is available, an email notice will be sent to the email address or a text message to the cell phone number provided by the member notifying the member of the document’s availability. The member will need to log in to the MyFRS.com website to view and print any of these documents. Receipt of documents through MyFRS.com will continue until the member calls the MyFRS Financial Guidance Line at 1(866)446-9377, Option 4 and revokes the member’s consent.

(e) For members transferring to the Pension Plan, if the member’s Investment Plan or SCCSORP account balance was less than the calculated amount required to buy back into the Pension Plan, the election will require a personal payment. The member will receive notification and proper instructions from the Division of Retirement (Division) detailing where and in what form to send any personal payments. Such payment, if necessary, must be received by the date determined by the Division. If the required amount is not received by the Division by the date due, the election will be voided.

(f) A confirmation statement will be mailed to the member’s address of record once the completed form is received and processed.

(g) The member should carefully review the form and be sure that it is signed, dated, and sets forth the member’s election. A copy of the form should be retained for the member’s records.

(h) The Plan Choice Administrator shall determine that the employee’s enrollment is complete and the employee’s election is clearly indicated. If the Plan Choice Administrator determines that the enrollment is incomplete, the employee will be required to resubmit a completed enrollment. An incomplete enrollment is an enrollment which is missing the name of the member, sets forth a spelling of the member’s name or reflects a date of birth that does not match the information present in the Plan Choice Administrator’s database, missing the last four digits of the member’s social security number, plan selection, signature, or one on which the investment elections total greater than or less than 100%. The member will be required to resubmit a completed enrollment form. If the form is incomplete only because the member has made no investment selection, the form will be processed and the member will be defaulted into an age appropriate retirement date fund as provided under the Plan provisions for investing the member’s accumulated benefit obligation and all future contributions. Note that this default selection may be changed by the member at any time once the account is activated.

(i) The election will become final at 4:00 p.m. (Eastern Time) on the day it is received by the Plan Choice Administrator. Elections received after 4:00 p.m. (Eastern Time) will be considered as being received on the next business day. Elections received on a Saturday, Sunday or holiday will be considered as being received on the next business day.

(j) If an enrollment is received by electronic means, using an electronic signature, the member agrees that the electronic signature is the equivalent of a handwritten signature for the purposes of validity, enforceability, and admissibility.

(k) A member enrolled in the Investment Plan as a mandatory renewed member on or after July 1, 2017 is not eligible to use the second election specified in this rule or transfer to the Pension Plan.

(5) Grace Period.

(a) If a member files an election with the Plan Choice Administrator and the member realizes that the election was made in error, or if the member has reconsidered his or her plan choice, the State Board of Administration (SBA) will consider, on a case-by-case basis, whether the election will be reversed, subject to the following: The member must notify the SBA by calling the toll free MyFRS Financial Guidance Line at: 1(866)446-9377, or by sending written correspondence directly to the SBA, to the Plan Choice Administrator, to the MyFRS Financial Guidance Line, or to the Division, no later than 4:00 p.m. (Eastern Time) on the last business day of the election effective month.

(b) If the request to reverse the election is made timely and the SBA finds the election was made in error or grants the request for reconsideration, the member will be required to sign a release and return it to the SBA by the designated due date no later than 4:00 p.m. (Eastern Time). Failure to return a signed release by the requested due date will result in the member remaining in the elected retirement plan. Upon receipt of the release, the Division and the Plan Choice Administrator will be directed to take the necessary steps to reverse the election and to correct the member’s records to reflect the election reversal.

(d) The member retains the right to file a subsequent second election consistent with subsections (2) and (3) above.

(e) Nothing contained in this subsection will interfere with a member’s right to file a complaint, as permitted by Section 121.4501(8)(g), F.S. and discussed in Rule 19-11.005, F.A.C.

History

Rulemaking Authority 121.4501(8) FS. Law Implemented 121.4501(3), (4), (8), (15)(b), (20) FS. History–New 10-21-04, Amended 3-9-06, 10-25-07, 12-8-08, 5-19-09, 1-7-10, 7-12-12, 12-16-12, 12-28-14, 8-18-14, 12-30-15, 4-12-17, 2-12-18, 2-19-19, 4-8-20, 5-11-22 7-26-23, 4-22-24, 12-8-25.

Fla. Admin. Code R. 19-11.008 Forfeitures

(1) Forfeitures after Separation or Retirement from Florida Retirement System (FRS) Investment Plan.

(a) If a member terminates or is no longer working in an FRS-covered position before vesting in the Investment Plan or any transferred Pension Plan service credit, the member will not be entitled to any benefit, other than employee contributions, which are immediately vested. In such case, the unvested account balance will be placed in a suspense account for a period not to exceed five (5) years from the date of the member’s termination or the effective date of non-FRS eligibility. The suspense account shall be invested in the FRS Diversified Income Fund, where it will accrue actual investment earnings or losses.

(b) If the member returns to work for an FRS employer in an FRS-covered position within the five (5) years from the date of termination, the member’s unvested account balance will be returned to the member’s account, together with the associated service credit. Any additional service credit earned will be applied towards vesting of the member’s benefit. The balance will reflect any earnings or losses while invested in the FRS Diversified Income Fund.

(c) If the member does not return to work for an FRS employer in an FRS-covered position or if the member returns to FRS covered employment five (5) or more years after the date of termination or the effective date of non-FRS eligibility, the member will forfeit the unvested account balance and the associated service credit.

(d) If the member leaves FRS-covered employment after vesting in the Investment Plan, but before the member vests in any transferred Pension Plan service credit, the member will be entitled to receive a distribution of any employee contributions contributed during their FRS employment, plus any vested Investment Plan employer contributions. However, if the member takes any self-initiated distribution from the Investment Plan, the member will be considered retired and the unvested Pension Plan portion of the benefit transferred into the Investment Plan, plus any earnings on those funds will be forfeited along with the associated service credit. This includes a distribution of any employee contributions the member contributed during their FRS employment.

(e) If the member does not take a self-initiated distribution after terminating from all FRS employers or the effective date of non-FRS eligibility, the unvested Pension Plan benefit will be transferred six (6) months following the termination or the effective date of non-FRS eligibility to a suspense account. The suspense account is invested in the FRS Diversified Income Fund, where it will accrue actual investment earnings or losses. If the member returns to FRS-covered employment within five (5) years from the date of termination or the effective date of non-FRS eligibility, the member’s unvested Pension Plan service, reflecting any earnings or losses while invested in the FRS Diversified Income Fund, will be returned to the member’s account, together with the associated service credit. Any additional service credit earned will be applied towards the vesting of the member’s benefit.

(f) If an Investment Plan Hybrid Option member leaves FRS-covered employment after vesting in the Investment Plan, but before vesting in the Pension Plan, the member will only be entitled to receive a distribution of any employee contributions contributed during their FRS employment, plus any vested Investment Plan employer contributions. However, if the member takes any self-initiated distribution from the Investment Plan, the member will be considered retired, and the unvested Pension Plan service credit will be forfeited. If the member does not take a distribution from the Investment Plan and later returns to work for an FRS employer in an FRS-covered position, the member will be returned to the Investment Plan and enrolled in the Investment Plan Hybrid Option and the service credit for the existing Pension Plan and Investment Plan service, combined with any future service credit, will be applied towards vesting of the member’s account.

(g) If a member is required to receive a required minimum distribution (RMD), any unvested Pension Plan service credit, will not be forfeited.

(h) If a member’s benefit and service credit are forfeited because the member did not return to FRS-covered employment within five (5) years, but the member later returns to FRS-covered employment after the forfeiture has occurred, the member will be returned to the plan in which he or she was participating at the time of the forfeiture. If the member’s benefit and service credit in the Pension Plan are forfeited because the member took a self-initiated distribution from the Investment Plan, the member is considered retired. If the member later returns to FRS-covered employment, the member will be considered a renewed member and will be entitled to renewed membership, if applicable. The previous forfeited service would not be restored, and the member would begin earning service credit for a new retirement.

(2) Forfeitures of Investment Plan accounts Due to Criminal Activity.

(a) Any member who has been found guilty by a verdict of a jury or by the court trying the case without a jury, or who has entered a plea of guilty or a plea of nolo contendere to certain specified offenses committed prior to retirement; or any member whose employment is terminated because the member admitted committing, aiding, or abetting any such offenses; or any elected official who is convicted by the Senate of an impeachable offense, shall forfeit all rights and benefits under the FRS except for return of any accumulated employee contributions. Specified offenses are the committing, aiding, or abetting any embezzlement or theft from the member’s employer; bribery in connection with employment; any other felony specified in Chapter 838, F.S., except for commercial bribery as provided in Section 838.15 or 838.16, F.S.; committing an impeachable offense; willfully committing any felony with intent to defraud the public or the public agency which employs the member or for which the member acts, of the right to receive the faithful performance of the member’s duties while realizing or attempting to realize a profit, gain or advantage for the member or for someone else through the powers, rights, privileges and duties of the member’s office or position; committing any felony described in Section 800.04, F.S., against a victim younger than 16 years of age, or any felony described in Chapter 794, F.S., against a victim younger than 18 years of age while using or attempting to use the power, rights, privileges, or duties of the member’s office or employment position.

(b) When the State Board of Administration (SBA), becomes aware of any accusation of criminal wrong doing against any member of the Investment Plan, the SBA will place a hold on the member’s account to preclude the member from removing any money from the account, until a determination is made on whether charges have been filed and whether the charges are for a forfeitable offense.

(d) If the member is indicted and convicted or pleads guilty, or pleads nolo contendere, the SBA will acquire a certified copy of the judgment and will contact the member to advise the member that the Investment Plan benefit is forfeited and that the member has the right to a hearing to contest the forfeiture. The hold on the member’s account will remain in place until:

The time to request a hearing has passed and no request for a hearing is made, or
The conclusion of the hearing and any appeal of the final order issued after the conclusion of the hearing.

(e) At the conclusion of either subparagraph (d)1., above, or subparagraph (d)2. above, if the member’s hearing and/or appeal are unsuccessful, the SBA will direct the Investment Plan Administrator to transfer the member’s account balance to the Investment Plan Forfeiture Account. If such member is subsequently reemployed, the member shall be eligible for benefits based on creditable service earned subsequent to the reemployment. The member is not eligible to claim any period of employment which was forfeited.

(f) If a member has requested a self-initiated distribution of all or part of any benefit, the member shall be required to repay the benefit, if it is determined that the member forfeited all rights and benefits under the FRS. Any such member may contest the forfeiture as stated in paragraph (d), above. If the member fails to repay the benefit, the SBA may pursue all legal options.

(g) If a member receives a pardon for any crime applicable to any FRS employment, the member shall have all benefits previously forfeited returned to his or her Investment Plan account reflecting any earnings or losses while invested in the FRS Diversified Income Fund.

(3) Forfeiture of Beneficiary’s Rights Due to Criminal Activity.

(a) A beneficiary, whether designated or pursuant to Florida law, of a deceased member who, by a verdict of a jury or by a court trying the case without a jury, is found guilty, or who has entered a plea of nolo contendere, of unlawfully and intentionally killing or procuring the death of such member, shall forfeit all rights to the deceased member’s retirement benefits. Any benefits will be paid as such beneficiary had predeceased the deceased member.

(b) No benefits will be paid until there is a final resolution of such charges against the beneficiary, including any appeals.

(4) Authorized uses of the Investment Plan Trust Fund Forfeiture Account.

(a) The Investment Plan Forfeiture Account is funded with unvested account balances forfeited by members or with account balances forfeited due to criminal activity as described herein.

(b) Section 121.4501(13), F.S., requires that the Investment Plan be administered so as to comply with the requirements of the Internal Revenue Code in order to maintain a tax-qualified status.

(c) Pursuant to a private letter ruling from the Internal Revenue Service, the Forfeiture Account may be used for two purposes:

Payment of Investment Plan Administrative expenses, such as fees related to the activities of the Investment Plan Administrator and the custodian, investment and administrative consulting fees, and services rendered for the benefit of members of the Investment Plan where costs can reasonably be allocated to the plan; and,
Reduction of future employer contributions to the Investment Plan.

(d) Consistent with Internal Revenue Service Rulings 80-155 and 74-340, unallocated reserves within the Forfeiture Account will be used as quickly and as prudently as possible considering fiduciary duty. The expected withdrawals from the Account should endeavor to reduce the Account to zero each fiscal year end.

History

Rulemaking Authority 121.4501(8) FS. Law implemented 112.3173, 121.021(29), (39), 121.091(5), 121.4501(6), (13), 121.591, 732.802 FS. History–New 11-26-07, Amended 12-8-08, 7-12-12, 8-18-14, 12-30-15, 4-12-17, 2-12-18, 5-11-22, 7-26-23, 4-22-24, 12-8-25.

Fla. Admin. Code R. 19-11.009 Reemployment with a Florida Retirement System (FRS) Employer after Retirement

(1) Reemployment.

(a) If reemployed prior to July 1, 2010, a member may return to work with an FRS employer after being retired for six (6) calendar months. Six calendar months means six full calendar months following the month the member retired. For example, if a member retires in January, the six calendar months are February, March, April, May, June and July. The retiree may return to employment in August. The retiree may return to employment in one of the excepted positions identified in Section 121.091(9)(b), F.S., and continue to take distributions from prior career benefits. If the retiree returns to work in a position that is not one of the exceptions allowed by law, the receipt of any remaining retirement benefits is suspended until either employment is terminated or the completion of 12 calendar months of retirement.

(b) If reemployed on or after July 1, 2010, a member may return to work in any position with an FRS employer after being retired for six (6) calendar months. Six calendar months means six full calendar months following the month the member retired. For example, if a member retires in January, the six full calendar months are February, March, April, May, June, and July. The retiree may return to employment in August. The member must suspend receipt of any remaining retirement benefits until either employment is terminated or the completion of 12 calendar months of retirement. However, a retired law enforcement officer may be reemployed as a school resource officer by an FRS employer and receive both a salary and retirement benefits once six calendar months have elapsed immediately after the officer’s date of retirement. Also, a member who volunteers in an FRS employer-provided volunteer program during the first 12 calendar months can continue to receive retirement benefits.

(c) Beginning July 1, 2024, a retiree may return to work in any position with an FRS employer after being retired for six (6) calendar months and continue to take distributions from prior career benefits and salary from that employer.

(d) To prevent hiring an ineligible retiree, the employer should obtain a written statement from each prospective employee as to the employee’s retirement status. The written statement can be set forth on the “FRS Employment Certification Form,” Form CERT, rev. 07-24 http://flrules.org/Gateway/reference.asp?No=Ref-18731, which is hereby adopted and incorporated by reference. The form can be found on the MyFRS.com website. This form should be retained in the employee’s personnel file.

(e) A retiree who returns to work with an FRS employer prior to being retired for six (6) calendar months and an employer that employs or appoints such retiree are jointly and severally liable for repaying retirement benefits paid from the Investment Plan. In lieu of repayment, the member may terminate all employment from all FRS employers.

(2) Renewed Membership.

(a) A retiree of the Investment Plan who is reemployed with an FRS employer in a covered position on or after July 1, 2010 through June 30, 2017, is not eligible for renewed membership.

(b) A retiree of the Investment Plan, Senior Management Service Optional Annuity Program (SMSOAP), State University System Optional Retirement Program (SUSORP) and State Community College System Optional Retirement Program (SCCSORP) who is reemployed with a FRS-participating employer in a covered position on or after July 1, 2017 is a mandatory renewed member of the Investment Plan, unless employed in a position eligible for participation in the SUSORP or SCCSORP.

The renewed Investment Plan member will be enrolled in the Regular Class, unless the position meets the requirements to enroll in the Special Risk Class, Elected Officers’ Class or Senior Management Service Class.
Employee and employer contributions will be deposited in an account for the Investment Plan member and invested in an age appropriate retirement date fund. The renewed member may move the funds once the account is activated.
The renewed Investment Plan member must satisfy the vesting requirements of the Investment Plan.
The renewed Investment Plan member or the employer may not pay any contributions for employment by the renewed member for the period of July 1, 2010 through June 30, 2017.
The renewed Investment Plan member is not eligible to enroll in the Pension Plan.

History

Rulemaking Authority 121.4501(8) FS. Law Implemented 121.021(29), (39), 121.091(9)(b), (c), 121.4501(2)(j), 121.591(1)(a)4. FS. History–New 11-26-07, Amended 12-8-08, 8-7-11, 7-12-12, 4-12-17, 2-12-18, 2-19-19, 4-8-20, 5-11-22, 7-26-23, 4-22-24, 12-8-25.

Fla. Admin. Code R. 19-11.010 FRS Investment Plan: Privacy

(1) Investment Plan members and beneficiaries are required to submit certain personal identifying information, including their federally-issued social security number. Each of the vendors under contract with the State Board of Administration (SBA) is contractually obligated to protect this information to the fullest extent permissible by law.

(2) A member of the Investment Plan may authorize a particular person such as the member’s spouse or financial advisor, to receive personal identifying information by giving the person a power of attorney or by submitting by electronic means or in paper form a signed and notarized consent clearly identifying the person to whom the information may be given as well as specifying exactly what information may be disclosed.

(3) Upon the death of an Investment Plan member who had submitted a beneficiary designation form, the named beneficiary(ies) must provide certain personal identifying information to the SBA before any information regarding the member will be released. The types of information are letters of administration issued by the relevant probate court; certified copies of the death certificate; copies of marriage certificates; the member’s social security number; and any other requested information that can be verified with a governmental agency.

History

Rulemaking Authority 121.4501(8) FS. Law Implemented 119.071, 121.4501(19) FS. History–New 11-26-07, Amended 7-12-12, 4-12-17.

Fla. Admin. Code R. 19-11.011 Employer and Employee Contributions and Accumulated Benefit Obligation (ABO)or Present Value Transfer Procedures

(1) Employer and Employee contributions.

(a) All participating Florida Retirement System (FRS) employers and each employee are responsible for making the contributions required by Chapter 121, F.S.

(b) Employers shall submit, to the Division of Retirement (Division), a monthly retirement report and accompanying employer and employee contributions by the fifth (5th) business day following the month in which the salary was paid. For example, if the salary is paid in March, the monthly retirement report and contributions are due to the Division by the 5th business day of April.

(2) One Percent Penalty for Late Payroll Reporting.

(a) A one percent penalty will be applied to contributions that are late pursuant to Section 121.78(3), F.S. The portion of the one percent penalty assessed on late contributions and accompanying payroll data attributable to contributions for the Investment Plan members shall be proportionally divided and deposited into affected member accounts, using the members’ Investment Plan investment allocation in effect at the time of the deposit.

(b) Any employer requesting a waiver of the delinquency fee in accordance with Section 121.78(3)(e), F.S., should make a written request, setting forth a full description of the facts and circumstances, to the Office of Defined Contribution Programs, State Board of Administration of Florida (SBA), 1801 Hermitage Blvd., Suite 100, Tallahassee, Florida 32308 or through the Division. The Division will forward any request regarding an Investment Plan waiver to the SBA for review. Waiver of the fee is at the discretion of the SBA. A waiver may be granted only once for an employer in any one fiscal year. Once a delinquency fee has been paid to a member’s account, it cannot be waived.

(3) Market Loss Calculation for Late Retirement Contributions Reporting.

(a) Market loss calculations will be applied to contributions and benefit transfers that are late pursuant to Section 121.78(3), F.S. A market loss occurs when an employer fails to timely remit the monthly retirement report and accompanying employer and employee contributions to the Division by the 5th business day of the next month the retirement report and associated employer and employee contributions are due as described in subsection (1), above, and the receipt of monthly retirement report and/or the employer and employee contributions are received in the month following the due date or after.

(b) The Division will notify the Investment Plan Administrator (Administrator) of the late filing by the employer. Upon notification, the Administrator will determine market losses using the affected member’s investment allocation on record with the Administrator at the time of calculation.

(c) The Administrator will perform the market value calculation using a period certain which is the 15th of the month in which the retirement report is due, or the next succeeding business day if the day falls on a weekend or legal holiday, in which contributions would have been processed, and ending on the date the contributions are received by the Administrator.

(d) If contributions and accompanying retirement report data are not received within the calendar month they are due, but that lateness does not result in market losses to members, only the one percent late assessment will apply to the employer.

(e) The Administrator will not perform the market loss calculation until a covered retirement report and accompanying payroll data is received and processed by the Administrator.

(4) Prior Period Adjustments.

(a) Employer and employee contributions paid for a prior period shall be subject to a delinquent fee of one percent for each calendar month or part thereof that said contributions should have been paid. This includes prior period contributions due to incorrect wages and contributions for an earlier report or wages and contributions that should have been reported, but were not. If the delinquent assessment is not remitted within 30 days following the Division’s invoice date, an additional delinquent assessment of one percent on the invoiced amount shall be assessed for each calendar month or part thereof that said invoice is delinquent. This delinquent assessment cannot be waived.

(b) When an employer requests an adjustment to retirement contributions or accompanying retirement report data for prior periods for Investment Plan members, the adjustment will be processed to the extent administratively possible. Under no circumstance shall the SBA, the FRS Investment Plan Trust Fund, or the Florida Retirement System Trust Fund incur any loss or gain as a result of an employer’s adjustments for an Investment Plan member or a former member.

(5) Employer errors or corrections.

(a) Market loss calculations will be applied to contributions and benefit transfers that are late due to an employer error or correction. An employer error or correction is deemed to have occurred if the employer changes previously reported information that now requires contributions and benefit transfers to be posted retroactively.

(6) If an agency fails to pay the required retirement contributions timely, the SBA or Division maybe begin collection actions as provided in Section 121.061, F.S.

(7) Federally Mandated Monitoring of Contributions and Annual Salary.

(a) The Investment Plan Administrator will be responsible for monitoring federally mandated contribution limits pursuant to Internal Revenue Code s. 415(c) (“Section 415(c) limitation”). The monitoring of federally mandated contribution limits will only be conducted if the employer has properly reported the applicable annual salary and contributions on the retirement reports submitted each month. The Investment Plan Administrator, the Division or SBA will not be held responsible for a failure to monitor the limits due to the employers’ inability or failure to report the necessary data.

(b) The Division will be responsible for monitoring federally mandated annual salary that may be applied towards retirement under a qualified retirement plan pursuant to Internal Revenue Code s. 401(a)(17).

(c) In no event shall the aggregate of the allocation of employer and employee contributions to an Investment Plan member’s account(s) in the Investment Plan and the annual addition to an Investment Plan member’s account(s) in any other defined contribution plan maintained by the employer exceed the Section 415(c) limitations for defined contribution plans.

(d) In no event shall an Investment Plan member have contributions deposited to an Investment Plan account on salary above the Section 401(a)(17) limitations. In the event an Investment Plan member has contributions deposited to an Investment Plan account on salary above the Section 401(a)(17) limit, the excess contributions, and applicable investment earnings on excess contributions, shall be deducted from the member’s Investment Plan account and returned to the entity that submitted the excess contributions.

(e) Employers shall cooperate with the Investment Plan Administrator or its agent in order for the Administrator or its agent to be able to monitor the 415(c) limitation on employer and employee contributions.

(f) Employers shall be responsible for providing all financial and retirement data which the Investment Plan Administrator or its agent must use to determine whether or not the 415(c) limitation has been exceeded.

(g) Pursuant to Section 121.4501(5)(d), F.S., the Administrator will notify the employer regarding maximum contribution levels permitted under the Internal Revenue Code and if a member exceeds those limits.

(h) The Employer is responsible for notifying a member if the total contributions made to the Investment Plan and to any other such plan exceed federally permitted maximums and to take appropriate steps to correct such excess contributions as set forth in paragraphs (i) and (j), below.

(i) In the event the aggregate annual additions to a member’s account(s) in the Investment Plan and in any other defined contribution plan maintained by the employer exceed the 415(c) limitation during any limitation year, the excess shall be attributed first to such other plans.

(j) If any excess remains after attribution to such other plans, the amount of any such excess attributable to the allocation of forfeitures, to a reasonable error in estimating a member’s annual compensation or to any other circumstances that the Commissioner of Internal Revenue finds is justified, in accordance with the correction principles set forth in the most recent Revenue Procedure, shall be used to reduce the employer’s contributions for such member under the Investment Plan in the next and succeeding limitation years; provided, however, that if the member is not covered by the Investment Plan at the end of the limitation year, such excess amount will be used to reduce the employer’s contributions to remaining members under the Investment Plan in the next, and succeeding, limitation years.

(k) If the correction method, above, is not available, other methods of correcting excess annual additions are permitted if in accordance with Revenue Procedure 2018-52.

(8) Employer errors or corrections. Market loss calculations will be applied to contributions and benefit transfers that are late due to an employer error or correction. An employer error or correction is deemed to have occurred if the employer changes previously reported information that causes contribution and benefit transfer to be posted retroactively.

(9) Contribution Rates.

(a) The employer and employee contributions received by a member of the Investment Plan prior to effective enrollment in the Investment Plan will be at the rate established pursuant to Section 121.71, F.S. The amount will be transferred into the employee’s Investment Plan account as the opening account balance.

(b) After effective enrollment in the Investment Plan, the member shall receive the employer and employee contribution at the rate established by Sections 121.71 and 121.72, F.S. appropriate to that member’s class of membership.

(10) Asset Transfer and True-Up Procedures for Newly-hired Employees with Previous FRS Service.

(a) For members who either elect to enroll or default into the FRS Investment Plan and have prior FRS credible service, the Division will calculate the amount of the member’s ABO or present value of the Pension Plan benefit. This amount shall be transferred to the member’s Investment Plan account and shall be allocated to each investment product selected by the member or/and if no allocations were provided by the member, then to an age-appropriate retirement date fund.

(b) The Division shall determine the member’s ABO or present value as of the last day of the month prior to the employee’s effective date of enrollment in the Investment Plan. For example, if the Division receives the enrollment during the month of June, the effective date of enrollment for the employee in the Investment Plan is July 1 and the Division shall calculate the member’s ABO or present value, if any, through June 30.

(c) By the 25th day of the effective month of enrollment, the Division shall notify the Investment Plan Administrator of the ABO or present value for each Investment Plan member whose effective date of enrollment is the first day of the month. The Administrator shall notify the SBA of the aggregate ABO or present value of members whose effective date of enrollment is the first day of the month.

(d) On the last business day of the effective month of enrollment in the Investment Plan, the SBA shall effectuate the transfer of the aggregate ABO or present value amount to the Investment Plan Administrator for allocation to the applicable Investment Plan member accounts based on the investment option designated by the member, and if no allocations were provided by the member, then to an age-appropriate retirement date fund.

(e) The total amount initially credited to an Investment Plan member’s account who elected to transfer the ABO or present value from the Pension Plan was an estimate of the member’s ABO or present value. Pursuant to Section 121.4501(3)(b)2., F.S., the Division will recalculate the ABO or present value not later than 60 days after the initial transfer of funds. If the re-computed amount differs from the estimated ABO amount by plus or minus $10.00 or more, the Division shall provide the aggregate adjustment amount to be transferred to or from the affected member(s).

(f) The Division shall notify the Administrator of the true-up amounts plus interest by member account within 50 days of the initial transfer. The true-up transfer shall include the true-up amount determined by the Division plus interest at the rates specified in Section 121.4501(3)(b)2., F.S., from the date of the initial transfer to the date of the true-up transfer. The transfer of the true-up amount plus interest shall occur on the 60th day following the initial transfer. In the event the 60th day following the initial transfer falls on a Saturday, Sunday, or a legal holiday, the true-up transfer shall occur on the last business day of the month preceding the Saturday, Sunday, or legal holiday.

(g) The Division shall calculate the interest owed on true-up amounts. If the recalculated ABO is greater than the original amount transferred by plus or minus $10.00 or more, the member will be owed a true-up amount plus interest. Interest will be calculated pursuant to Section 121.4501(3)(b)2., F.S. If the recalculated ABO is less than the original amount transferred by plus or minus $10.00 or more, the member will owe a true-up amount plus interest and the amount will be deducted from the member’s Investment Plan account. Interest will be calculated pursuant to Section 121.4501(3)(b)2., F.S.

(h) The Administrator shall notify the SBA of the aggregate true-up value for those members determined to have a true-up adjustment. On the last business day of the month in which the true-up amount is due, the SBA shall effectuate the transfer of the aggregate true-up amount to the Investment Plan Administrator for allocation to the applicable member accounts based on the investment fund allocations designated by the member(s).

History

Rulemaking Authority 121.78(3)(c), 121.4501(8) FS. Law Implemented 121.71, 121.72, 121.78, 121.4501 FS. History–New 7-12-12, Amended 12-16-12, 12-30-15, 4-12-17, 2-19-19, 5-11-22, 7-26-23, 12-8-25.

Fla. Admin. Code R. 19-11.012 Rollovers or Plan to Plan Transfers to or from the FRS Investment Plan

(1) An Investment Plan member may rollover assets from other qualified plans into the Investment Plan. These qualified assets can come from:

(a) A qualified Traditional IRA at another custodian;

(b) An eligible retirement plan (Code s. 401 defined contribution plan, Code s. 401 defined benefit plan, Code s. 457 plan, or Code s. 403(b) plan), or

(2) A member may not rollover assets into the Investment Plan from the following:

(a) Roth IRAs;

(b) Payments spread out over long periods of time, for example, from an annuity. These would include payments made at least once a year and lasting for the lifetime or life expectancy of the member, or for the lifetime (or life expectancies) of the member and the member’s beneficiary, or for a period of 10 years or more;

(d) Emergency withdrawals from a Code s. 457 plan; or

(e) Hardship withdrawals from a Code s. 401 or 403(b) plan.

(3) Before accepting a rollover to the Plan, the Investment Plan Administrator evaluating the rollover shall first obtain sufficient evidence from the member to support a reasonable conclusion that the rollover is valid under the Code.

(4) The Investment Plan Administrator shall accept that portion of a rollover in a direct trustee-to-trustee transfer which includes both taxable and non-taxable amounts. The amount of any rollover with both taxable and non-taxable amounts shall be accounted for separately by the retirement plan making the distribution rollover to the Investment Plan.

(5) The member must complete the rollover deposit within 60 days of receiving the assets, unless the member qualifies for a waiver of the 60-day time limit as provided by the Internal Revenue Service (IRS). It will be the responsibility of the member to submit documentation confirming the qualification for the 60-day waiver. Otherwise, the member may be subject to federal income tax and the early withdrawal penalty.

(6)(a) The Investment Plan Administrator may accept rollovers from:

A current or former Investment Plan member. Such member shall use Form IPRO-1, as described in subsection (8), below.
Participants in the Deferred Retirement Option Program (DROP), after the conclusion of such DROP participation. Such member shall use Form IPDROP-AD-1, as described in subsection (8), below.
Former DROP members who had previously rolled over their DROP accumulation:

a. To the Investment Plan and subsequently rolled their DROP account balance out of the Investment Plan. Such member shall use Form IPDROP-RO-1, as described in subsection (8), below.

b. To another qualified retirement account and want to invest the DROP accumulation in the Investment Plan. Such member shall use Form IPDROP-RO-1, as described in subsection (8), below.

Members of the Teacher’s Retirement System with eligible DROP proceeds after their conclusion in the DROP. Such member shall use Form IPDROP-AD-1, as described in subsection (8), below.

(b) All rollovers into the Investment Plan must be more than $1,000.00 or such amount that will cause the account balance to be greater than $1,000.00.

The former spouse of an Investment Plan member who had an account in the Investment Plan, established by terms of a qualified domestic relations order and then removed all of the funds from the account.
The former beneficiary of an Investment Plan member who removed all of the funds from the account.
Members of the Pension Plan.
The spouse or beneficiary of a deceased Pension Plan member who had a DROP accumulation in the Pension Plan.

(7) Payment to the Investment Plan must be in the form of a check made payable to the “FRS Investment Plan – FBO (the member’s name).”

(8)(a) Instructions regarding check delivery and other information relating to the processing of rollovers, including all applicable forms, may be obtained by calling the MyFRS Financial Guidance Line, which is a toll free line: 1(866)446-9377, Option 4, or, for members who are deaf, hard of hearing, or speech impaired, TRS 711, or by accessing the website at www.MyFRS.com.

(b) Current members shall use Form IPRO-1, rev. 07-24, “Employee Rollover Deposit Form and Request to Transfer Funds to the FRS Investment Plan,” http://flrules.org/Gateway/reference.asp?No=Ref-18732, which is hereby adopted and incorporated by reference, to effect rollovers described in this rule.

(c) Current DROP members planning to roll over their DROP accumulation shall use Form IP-DROP-AD-1, “FRS Investment Plan DROP Accumulation Direct Rollover Form for Current DROP Members,” rev. 07-24, http://flrules.org/Gateway/reference.asp?No=Ref-18733, which hereby is adopted and incorporated by reference, to effect rollovers described in this rule.

(d) Former DROP members shall use Form IP-DROP-RO-1, “DROP Direct Rollover Form for Former DROP Members,” rev. 07-24, http://flrules.org/Gateway/reference.asp?No=Ref-18734, which hereby is adopted and incorporated by reference, to effect rollovers described in this rule.

(e) Current or former DROP members who roll money into the Investment Plan and provide a personal email address or cell phone number, has consented to electronic delivery of documents through the MyFRS.com website, including but not limited to prospectuses, quarterly account statements, account transaction confirmation statements, privacy notices, annual fee disclosure statement, and other documents. When one of these documents is available, an email notice will be sent to the email address or a text message to the cell phone number provided by the member notifying the member of the document’s availability. The member will need to log in to the MyFRS.com website to view and print any of these documents. Receipt of documents through MyFRS.com will continue until the member calls the MyFRS Financial Guidance Line at 1(866)446-9377, Option 4 and revokes the member’s consent.

(9) Rollovers to the Investment Plan shall be accounted for separately on the recordkeeping system of the Investment Plan Administrator.

(10) Member rollover deposits will be reported to the Internal Revenue Service.

(11) Once an active Investment Plan member rolls over monies into the Investment Plan, the member cannot receive a distribution of rolled over deposit, or the member’s account balance, until the member has terminated and is no longer providing services to an FRS employer, in paid or unpaid arrangements, for three (3) full calendar months following the month of termination. A member who has reached the normal retirement date as provided in Section 121.021(29), F.S., and who has terminated employment from all FRS-covered employment for one calendar month may request a one-time distribution of up to 10 percent (10%) of the vested account balance.

(12) Monies from a DROP rollover are available for immediate distribution.

(13)(a) An Investment Plan member electing to transfer to the Pension Plan and who has an excess balance remaining in the Investment Plan account after satisfying any required Pension Plan buy-in amounts, may elect to use all or part of that remaining balance to purchase service credit in the Pension Plan. The member will need to complete Form PRO-2, “Pre-tax Direct Rollover/Transfer Form,” rev. 10-10, http://www.flrules.org/Gateway/reference.asp?No=Ref-01184, which hereby is adopted and incorporated by reference, to effect this purchase. This form is available in paper form and may be obtained by calling the toll-free MyFRS Financial Guidance Line at 1(866)446-9377, Option 4 (TRS 711), Monday through Friday, except holidays, 8:00 a.m. to 6:00 p.m. (Eastern Time), except holidays.

(b) The member must call the Investment Plan Administrator and request that funds be transferred from the Investment Plan to the Pension Plan to effect the purchase of service. The member must confirm that an invoice has been received from the Division of Retirement. The amount to be transferred must be equal to or less than the invoiced amount. If the balance of the member’s account is less than the invoice amount, the member may request the total account balance be transferred.

(c) The member must complete the form referenced in paragraph (a), above. The completed form is to be sent to the Investment Plan Administrator.

(d) The Investment Plan Administrator will request authorization to liquidate the requested amount from the SBA. The SBA shall provide a letter of direction to complete the member’s request. Upon receipt of the letter, the Investment Plan Administrator will liquidate the funds from the member’s account. Upon liquidation, the amount will be received by the Investment Plan Administrator from the Custodian in the form of a check payable to the “Florida Retirement System” and reference the member’s name. Upon receipt of the check, the Investment Plan Administrator will send the check and the form by regular U.S. mail to the Division of Retirement as soon as administratively possible. A confirmation of the transaction and the date the check and form were mailed to the Division of Retirement will be sent to the member.

(e) It is the responsibility of the member to confirm receipt of the funds by the Division of Retirement.

History

Rulemaking Authority 121.4501(8), (5)(e) FS. Law Implemented 121.4501(4)(g)5., (5)(e), (21), 121.591 FS. History–New 7-12-12, Amended 12-16-12, 10-15-13, 1-28-14, 8-18-14, 12-30-15, 4-12-17, 2-12-18, 2-19-19, 4-8-20, 5-11-22, 7-26-23, 4-22-24, 12-8-25.

Fla. Admin. Code R. 19-11.013 FRS Investment Plan Self-Directed Brokerage Account

(1) An Investment Plan member meeting certain criteria may transfer assets from the member’s Investment Plan primary investment account to a self-directed brokerage account (“SDBA”) in order to be able to access additional investment opportunities beyond the primary investment funds offered under the Investment Plan.

(a) In order to participate in the SDBA the member must:

Maintain a minimum balance of $5,000 in the Investment Plan’s primary investment funds. This minimum amount may be changed at any time.
Make initial and subsequent transfers into the SDBA of at least $1,000. Transfer requests must be in whole dollars. Percentages are not permitted. This minimum amount is subject to change.
Pay all trading fees, commissions, administrative fees, and any other expenses associated with participating in the SDBA.

(b) The member must open an account with the SDBA service provider in one of two ways:

By accessing and completing the enrollment form online by logging on to MyFRS.com, then choosing Investment Plan>FRS Investment Plan>Open Self-Directed Brokerage Account. The enrollment form includes both a Member Service Agreement and Memorandum of Understanding which the member must acknowledge having received and read; or,
By printing and completing a hard copy of the enrollment form, Member Service Agreement and Memorandum of Understanding. A hard copy of the enrollment form can be printed from the Open Brokerage Account link on MyFRS.com or can be obtained from the Investment Plan Administrator. The member must return the completed enrollment form to the service provider via fax or mail. The member must acknowledge the Member Service Agreement and Memorandum of Understanding were received and read.

(c) The SDBA account will be established within two (2) days of receipt of either the online or hardcopy enrollment form. Once the account is established, the member will receive a package from the SDBA service provider containing information on how to access and use the SDBA.

(d) The SDBA account will be automatically closed if there is a zero balance for 18 consecutive months. To participate in the SDBA in the future, the member will have to open a new SDBA account as set forth above.

(e) The member is subject to the following fees, transaction changes, expenses:

Any and all commissions, sales charges and transaction fees applicable to transactions executed by the member through the SDBA. The member may review all SDBA commissions and fees by accessing the Investment Plan Self-Directed Brokerage Account Commission and Fee Schedule in the “Investment Funds” section on MyFRS.com.
Depending on the investments chosen, transaction fees, commissions or sales charges may be charged to the member’s SDBA. These fees are automatically deducted from transaction proceeds or added to the purchases as they are incurred. In addition, investment management fees, 12b-1 fees, or other fees and expenses specific to individual funds may be charged to the member’s SDBA. It is the member’s sole responsibility to be aware of and understand the commissions and fees as described in the Commission and Fee Schedule and in the prospectus of any mutual fund.

(2)(a) The investment options offered through the SDBA have not been reviewed by the State Board of Administration (SBA) for suitability for the member. The member is solely responsible for determining the appropriateness of any investments in the SDBA.

(b) The member agrees to fully indemnify and hold harmless the member’s employer, the FRS, the SBA, and any and all service providers to the FRS against any claims, damages, or other possible causes of actions resulting from the member’s decision to participate in the SDBA or from the specific SDBA investment options selected by the member.

(c) The member is exercising control over all of the assets in the member’s Investment Plan account, including the SDBA, pursuant to Section 404(c) regulations and all applicable laws governing the operation of the Investment Plan. Sections 121.4501(8)(b)2. and 121.4501(15)(b) of Florida law incorporate the Federal law concept of participant control, established by regulations of the U.S. Department of Labor under Section 404(c) of the Employee Retirement Income Security Act of 1974. No program fiduciary shall be liable for any loss to the member’s account which results from such exercise of control.

(d) Securities, including mutual funds, sold within the SDBA are not obligations of or insured by the FDIC or any other governmental agency. These investments are not endorsed or guaranteed by the SBA or any other plan fiduciary and are subject to risks, including possible loss of the principal amount invested. The value of a member’s investments may fluctuate so that when they are sold, they may be worth more or less than when they were purchased.

(e) The member is responsible for reviewing and understanding the trading restrictions that may apply to the SDBA investment options purchased. It is the member’s responsibility to review the fund prospectus and will be subject to a mutual fund’s excessive trading policy and to any redemption fees, restrictions or penalties that may apply.

(f) Investment options available within the SDBA include the following:

Stocks listed on a Securities Exchange Commission (SEC) regulated national exchange.
Exchange-Traded Funds (except for leveraged Exchange-Traded Funds).
Mutual funds (except for any of the Investment Plan’s primary investment funds).
Fixed income products.

(g) Investment options not permitted within the SDBA include the following:

Illiquid investments.
Over-the-Counter (OTC) Bulletin Board securities.
Pink Sheet® (PS) securities.
Leveraged Exchange-Traded Funds.
Direct Ownership of Foreign Securities.
Derivatives, including, but not limited to, futures and options contracts on securities, market indexes, and commodities.
Limited Partnerships.
Master Limited Partnerships (MLPs).
Commodity ETFs (subject to UBIT).
Private Placements.
Buying or Trading on Margin.
Investment Plan primary investment funds.
Any investment that would jeopardize the Investment Plan’s tax-qualified status.

(3)(a) The member can transfer funds from the member’s primary investment funds to the SDBA by logging in to MyFRS.com or by calling the Investment Plan Administrator at 1(866)446-9377, Option 4, and asking to speak to an SDBA specialist.

The SDBA will not accept direct contributions.
Transfer requests must be in whole dollars. Percentages are not permitted.
Transfers must be in amounts at least equal to $1,000.
Transfers into the SDBA requested by 4:00 p.m. (ET) on regular business days are processed the same day. If a transfer is processed after 4:00 p.m. (ET), it will be processed the next business day.

(b) To transfer assets from the SDBA back to the Investment Plan primary funds, the member must first liquidate investments in the SDBA and wait for the trades to settle. This process can take up to five business days to complete depending on the settlement period of the liquidated investments. Once the funds are available, the member is responsible for processing the request to transfer the funds to the member’s Investment Plan primary funds.

(4)(a) The Investment Plan Administrator will include in the member’s Investment Plan primary investment funds quarterly account statements the aggregate total amount invested by the member in the SDBA.

(b) The SDBA provider will provide to the member:

A separate quarterly statement that will itemize the brokerage transactions and show individual holdings balances as well as the total SDBA balance.
If the member has any activity in the SDBA, a separate monthly statement will be provided.
If the member has no activity in the quarter, a separate quarterly statement will be provided.
If the member provides the SDBA provider with an email address, the member will receive electronic statements, SDBA trade confirmations and other SDBA communications, unless the member affirmatively elects a paper format.
The member may opt out of electronic delivery at any time by logging onto MyFRS.com and accessing the SDBA account or by calling 1(866)446-9377, Option 4, and speaking to an SDBA specialist.

(5)(a) Distributions cannot be made directly from the SDBA. A member must first transfer money in the SDBA back to the member’s Investment Plan primary investment account.

(b) If the member is subject to a Required Minimum Distribution (RMD), and has insufficient funds in the member’s primary account, the member will be subject to an automatic liquidation of assets by the Investment Plan Administrator from the SDBA of an amount sufficient to cover the RMD requirements and maintain the required account balance in the primary investment funds.

(c)1. If the member is subject to qualified domestic relations orders (QDROs) by a court of competent jurisdiction, income deduction orders as provided in section 61.1301, F.S., or a federal income tax levy, the member’s SDBA balance may be subject to a partial or full liquidation to comply with the court or federally mandated levy and to ensure that at least a $5,000 account balance in the Investment Plan primary funds is maintained.

In the event the member’s SDBA account is subject to a lien or levy, the directions of the appropriate levying authority will be followed unless some form of release from the levying authority, or a court order staying or quashing the lien or levy is provided.

(d) A member participating in the SDBA cannot take a distribution from the member’s primary account that would make the member’s primary account balance fall below $5,000. In such instance for a distribution to occur, the member first would need to liquidate sufficient SDBA funds and return the funds to the member’s primary account. If such a member’s primary account balance were to fall below $5,000 due to market losses, no additional transfers into the SDBA will be allowed, and no additional distributions would be processed until the primary account balance is greater than $5,000.

(e) A member participating in the SDBA who has requested distributions to be made on an installment basis may request to have installments established based on the total of the funds in both the member’s primary account and in the member’s SDBA. If a point is reached at which an additional distribution would cause the member’s primary account balance to fall below $5,000, the installments will be stopped and the member will be notified that no additional installments can be processed until the member liquidates sufficient SDBA funds to cover future distributions and maintain a $5,000 minimum balance in the member’s primary account.

(f) If the member terminates FRS-covered employment prior to meeting the vesting requirements of the Investment Plan and has enrolled in the SDBA, the member will be required to liquidate all investments in the SDBA prior to requesting a distribution of any vested account balance. If the member requests a distribution of any portion of the vested account balance, the member will forfeit any unvested account balance and will be considered retired from the FRS. The member can reinvest in the SDBA with vested money so long as a $5,000 minimum balance is maintained in the primary account and a minimum of $1,000 is available to transfer to the SDBA.

(g) If the member terminates employment with an FRS-participating employer and has unvested money in the Investment Plan and has enrolled in the SDBA, the member’s SDBA account is subject to liquidation by the Investment Plan Administrator within four (4) calendar months of termination and any unvested money will be moved to the Investment Plan’s suspense account. The member can reinvest in the SDBA with vested money so long as a $5,000 minimum balance is maintained in the primary account and a minimum of $1,000 is available to transfer to the SDBA account. If the member returns to FRS-covered employment and has not taken a distribution from the Investment Plan primary account the money held in suspense will be returned to the member’s primary account.

(6)(a)1. Any Investment Plan member who has a complaint regarding the SDBA should call the Investment Plan Administrator at 1(866)446-9377, Option 4, and ask to speak to an SDBA specialist. If the SDBA specialist cannot resolve the complaint over the telephone, the member will be provided with instructions on how to submit a written complaint. If a written complaint is received by the SDBA provider, the SDBA provider will handle the written complaint regarding the SDBA in accordance with the Financial Industry Regulatory Authority (“FINRA”) Rule 4530.

The Compliance Officer of the SDBA provider will conduct an investigation and will prepare and send the member a letter within 10 business days of receipt of the written complaint detailing the findings, any proposed resolution, and information on any next steps in resolving the complaint. Copies of the complaint and responses thereto will be provided to the SBA.
If a complaint is received by the SBA regarding an SDBA issue, the complaint will be forwarded to the Compliance Officer of the SDBA provider for a response.
The complaint process provided in rule 19-11.005, F.A.C., is not applicable to any complaint regarding the SDBA.

(b) If the SDBA provider and the member cannot come to a resolution regarding the complaint the member can request arbitration as detailed in the SDBA Plan Member Agreement.

(c)1. If SDBA provider receives a written complaint that is unrelated to the SDBA, it will be sent to the Investment Plan Administrator and to the SBA. The SDBA provider will acknowledge receipt of the complaint to the member advising the member that the complaint has been forwarded to the appropriate party.

Upon receipt of the complaint unrelated to the SDBA referenced in subparagraph (c)1., above, the SBA will handle the complaint in accordance with Rule 19-11.005, F.A.C.

History

Rulemaking Authority 121.4501(8), (5)(e) FS. Law Implemented 121.4501(8), (9), (10), (11), (12), (13), (14), (15) FS. History–New 6-5-14, 12-30-15, 4-12-17, 2-12-18, 5-11-22.

Fla. Admin. Code R. 19-11.014 Benefits Payable for Investment Plan Disability and In-Line-Of-Duty Death Benefits

(1) An Investment Plan member shall be eligible to apply for a disability benefit in accordance with Section 121.591(2), F.S., and in Rule 60S-4.007, F.A.C.

(a) Disability benefits are payable in lieu of benefits otherwise payable under Section 121.591(1), F.S.

(b) Upon approval for Investment Plan disability retirement, the member’s entire Investment Plan account balance, consisting of vested and non-vested monies, plus earnings, shall be transferred to the Division of Retirement (Division) for deposit in the disability account of the Florida Retirement System (FRS) Trust Fund.

The Investment Plan member will become a member of the Pension Plan effective upon his or her disability retirement effective date. If the member has a second election remaining, this transfer shall not constitute a second election as provided in Section 121.4501(4)(f), F.S.
The member shall receive a monthly benefit that is payable on the last business day of the month for his or her lifetime and continued disability.

(c) An Investment Plan member approved for disability retirement may cancel the application by submitting a cancellation request to the Division before a disability warrant has been deposited, cashed or received by direct deposit.

Upon cancellation, the member shall be transferred back to the Investment Plan.
All monies transferred to the disability account of the FRS Trust Fund will be transferred back to the member’s Investment Plan account.
The member may elect to receive benefits as provided under Section 121.591(1), F.S., in lieu of the disability benefits.

(d) If a member recovers sufficiently to return to employment from disability, the member shall be returned as an active member to the Investment Plan.

The member’s total disability benefits paid shall be subtracted from the amount transferred in paragraph (1)(b), above. Any remaining account balance shall be transferred to the Investment Plan Administrator for deposit into the member’s Investment Plan account. The monies will be deposited based on the member’s last investment elections.
Vested and non-vested amounts shall be accounted for separately as provided in Section 121.4501(6), F.S.
If the member does not return to FRS-covered employment, he or she may elect to receive the remaining account balance as provided under Section 121.591(1), F.S. Any non-vested amounts will be forfeited.
If the member does not return to employment with an FRS-participating employer and elects not to receive benefits as provided in Section 121.591(1), F.S., any non-vested amount shall be transferred to the suspense account. Such amount shall be forfeited if the member does not returned to FRS-covered employment within five (5) years of the termination date or request benefits as provided under Section 121.591(1), F.S.

(2) In Line of Duty death benefits:

(a) In lieu of receiving the member’s vested account balance as provided in Section 121.591(3), F.S., the spouse and/or unmarried child(ren) of Investment Plan members killed in the line of duty on or after July 1, 2002, may receive monthly survivor benefits, if the Division determines that the member’s death occurred in the line of duty, in accordance with Section 121.591(4), F.S.

(b) Monthly survivor benefits provided by this subsection shall supersede any other distribution or beneficiary that may have been provided by the member’s designation of beneficiary.

(c) A hold will be placed on the member’s Investment Plan account if notification is received that the member may have been killed in the line of duty or died due to a a specified disease that occurred in the line of duty. If it is determined that the member’s death was not in the line of duty, the hold will be removed.

(d) The SBA, Division or Investment Plan Administrator will send a letter to the surviving spouse or unmarried children. The letter will include the member’s current Investment Plan account balance, estimated monthly salary at time of death, Florida Retirement System Pension Plan Application of Investment Plan Beneficiary for In-Line-of-Duty Death Benefits, Form FST-11B-IP, incorporated by reference in Rule 60S-4.008, F.A.C., and items to submit with the completed application.

(e) The surviving spouse or unmarried children may cancel the application by submitting a notarized statement to the Division affirmatively declining the in line of duty death benefits. Once the statement is received, the hold placed pursuant to paragraph (2)(c), above, will be removed. The benefits will be distributed according to the member’s beneficiary designation. If the member did not designate a beneficiary(ies), then the member’s beneficiary(ies) will be those specified by Section 121.4501(20), F.S.

(f) Upon approval for in line of duty death benefits, the member’s entire Investment Plan account balance, including the balance of monies that may have been transferred to an account in the name of the surviving spouse or child(ren), will be transferred to the Division for deposit in the survivor benefit account of the FRS Trust Fund before monthly benefits can begin.

The monthly benefit payment will be actuarially reduced if the surviving spouse or child(ren) has taken any payments from the Investment Plan as a beneficiary of the member.
Monthly benefits will be paid to the surviving spouse for his or her lifetime or upon his or her death, to the surviving children as provided in Section 121.091(7)(d) and (i), F.S.

History

Rulemaking Authority 121.4501(8), (5)(e), 121.5912 FS. Law Implemented 121.4501(8), (9), (10), (11), (12), (13), (14), (15), 121.591(4) FS. History–New 2-9-17, Amended 2-12-18, 4-22-24.

Chapter 19-12 COMPLIANCE OF PUBLIC EMPLOYEE OPTIONAL RETIREMENT PROGRAM

Fla. Admin. Code R. 19-12.001 Definitions

History

Rulemaking Authority 121.4501(5)(c), (13)(a) FS. Law Implemented 121.4501(1), (7)(a), (13) FS. History–New 11-20-01, Amended 12-8-02, Repealed 7-12-12.

Fla. Admin. Code R. 19-12.002 Purpose

History

Rulemaking Authority 121.4501(13)(a) FS. Law Implemented 121.4501(1), (7)(a), (13) FS. History–New 11-20-01, Repealed 7-12-12.

Fla. Admin. Code R. 19-12.003 Limitation on Contributions

History

Rulemaking Authority 121.4501(13)(a) FS. Law Implemented 121.4501(13) FS. History–New 11-20-01, Repealed 7-12-12.

Fla. Admin. Code R. 19-12.004 Annual Additions in Excess of Limitation

History

Rulemaking Authority 121.4501(13)(a) FS. Law Implemented 121.4501(13) FS. History–New 11-20-01, Repealed 7-12-12.

Fla. Admin. Code R. 19-12.005 The Exclusive Benefit Rule of the Code and Forfeitures

History

Rulemaking Authority 121.4501(13)(a) FS. Law Implemented 121.4501(13) FS. History–New 11-20-01, Amended 3-9-06, Repealed 7-12-12.

Fla. Admin. Code R. 19-12.006 Distribution of Benefits

History

Rulemaking Authority 121.4501(13)(a) FS. Law Implemented 121.4501(1), (7)(a), (13), 121.591 FS. History–New 11-20-01, Amended 12-8-02, Repealed 7-12-12.

Fla. Admin. Code R. 19-12.007 Acceptance of Rollovers

History

Rulemaking Authority 121.4501(5)(c) FS. Law Implemented 121.4501(5)(c), (21) FS. History–New 12-8-02, Amended 10-21-04, 3-9-06, 10-25-07, 5-19-09, Repealed 7-12-12.

Chapter 19-13 ROLES AND RESPONSIBILITIES FOR THE FLORIDA RETIREMENT SYSTEM INVESTMENT PLAN

Fla. Admin. Code R. 19-13.001 Roles and Responsibilities of the State Board of Administration of Florida

(1) The State Board of Administration of Florida (“SBA”) is responsible for establishing, implementing, and administering the defined contribution program, known as the “Florida Retirement System Investment Plan” or “Investment Plan,” in accordance with Section 121.4501(1), F.S. The SBA is the Plan Sponsor. The plan documents consist of the Florida Statutes and Administrative Rules adopted thereunder and the Summary Plan Description (SPD). The SPD is a summary of the plan for the convenience of members and can be changed by the SBA at any time without prior notice to Florida Retirement System (FRS) members. The SBA’s primary responsibilities are set out in paragraphs (1)(a) through (1)(n), below. Each of these major responsibilities involves additional decisions which then in turn need to be implemented. Those decisions, to the extent they are not solely on a case-by-case basis, are adopted by rule. The SBA must ensure that all of the following individual responsibilities are carried out:

(a) Hiring general and specialized consultants to assist in the implementation and on-going operation of the Investment Plan. Their roles and responsibilities are found in Rule 19-13.004, F.A.C.

(b) Hiring a third party administrator (“Administrator”), educational service providers, investment option providers, and contracting with the Division of Retirement (“Division”) within the Department of Management Services to provide certain administrative services. Their roles and responsibilities are found, respectively, in Rules 19-13.004 and 19-13.002, F.A.C.

(c) Adhering to and enforcing the fiduciary standards and responsibilities required by certain sections of the Employee Retirement Income Security Act of 1974, which are incorporated in Florida law in Section 121.4501(15), F.S.

(d) Coordinating with the Division in providing the education component described in Sections 121.4501(10)(c) and (d), F.S., and a communication component to provide information to employers as described in Section 121.4501(10)(f), F.S.

(e) Providing information to Investment Plan members on a quarterly basis, pursuant to Section 121.4501(11), F.S.

(f) Obtaining and maintaining the tax qualified status of the Investment Plan and for compliance with the federal Internal Revenue Code.

(g) Directing and monitoring the activities of all service providers to the Investment Plan. These service providers include, but are not limited to, the third party administrator, the education service providers, and the investment product providers.

(h) Directing and monitoring the services provided by the Division with which the SBA has an interagency agreement.

(i) Movement of assets from the Pension Plan to the Investment Plan upon the election of a member to transfer and making such adjustments to plan accounts and member accounts as are necessary to process election reversals and prior period corrections to contributions and accompanying payroll data.

(j) Developing an investment policy statement for the program.

(k) Choosing, monitoring, and terminating investment options in the Investment Plan; mapping account balances of members in the event of investment option termination; distributing all data regarding these investment options to member; and rebalancing and reconstituting multiple manager investment options and also the Target Date Funds (“TDF”) options provided in the investment policy statement utilizing information from a registered investment advisor and fiduciary to the Florida Retirement System.

(l) Implementing the confidentiality provisions in Section 121.4501(19), F.S.

(m) Developing all contracts used in the Investment Plan; and,

(n) All rulemaking for the Investment Plan.

History

Rulemaking Authority 121.4501(8) FS. Law Implemented 121.4501(1), (4), (8), (9), (10), (14), (15), (19) FS. History–New 10-21-04, Amended 7-12-12, 12-16-12, 12-30-15, 1-18-17, 2-12-18.

Fla. Admin. Code R. 19-13.002 Roles and Responsibilities of the Division of Retirement within the Department of Management Services

(1) The Division of Retirement (Division) within the Department of Management Services provides the following administrative services, in accordance with Section 121.4501(8)(a)1., F.S.:

(a) Determine membership eligibility and employer participation eligibility;

(b) Collect and process employer and employee retirement contributions and retirement-related data, including monitoring salary limits imposed by the Internal Revenue Service;

(c) Forward employer and employee retirement contributions and retirement-related data to the Investment Plan Administrator, including date of termination and leave of absence indicators, if available;

(d) Calculate members’ Pension Plan benefits, calculate the accumulated benefit obligation and calculate any buy-back amount for those members who elected the Investment Plan but subsequently elect to return to the Pension Plan;

(e) Maintain and provide access to the Florida Retirement System database;

(f) Provide telephone support regarding employee or employer questions on the Pension Plan and contribution processing, but transfer general retirement plan choice, enrollment and financial planning telephone calls to other education and administration providers;

(g) Administer the disability and in line of duty death benefits for the FRS;

(h) Administer the health insurance subsidy for the FRS;

(i) Determine employee vesting requirements in the FRS, as required by law; and,

(j) Notify the State Board of Administration (SBA) of any employees who may be subject to forfeiture of benefits, in accordance with Sections 112.3173 and 121.091(5), F.S.

History

Rulemaking Authority 121.4501(8) FS. Law Implemented 112.3173, 121.091(5), 121.4501(8), (10) FS. History–New 10-21-04, Amended 10-25-07, 7-12-12, 12-16-12, 1-18-17, 2-12-18, 5-11-22.

Fla. Admin. Code R. 19-13.003 Role and Responsibilities of Participating Employers in the Florida Retirement System

All Florida Retirement System (FRS) participating employers have the following duties and responsibilities:

Remitting all the employer and employee contributions required by Parts II and III of Chapter 121, F.S. These include the contributions for the benefit of members in the Investment Plan, in accordance with Section 121.4501(5) and with Part III of Chapter 121, F.S., and also include the contributions for administrative and educational expenses, disability benefits, survivor benefits, the health insurance subsidy, and social security. Under no circumstances will employers be deemed to be agents of the SBA, the FRS, or both.

History

Rulemaking Authority 121.4501(8) FS. Law Implemented 121.4501(5), (8), 121.71, 121.72, 121.73, 121.735, 121.74, 121.76, 121.77, 121.78 FS. History–New 10-21-04, Amended 7-12-12, 12-16-12, 1-18-17, 12-8-25, Reviewed 8-26-26.

Fla. Admin. Code R. 19-13.004 Role and Responsibilities of Third Party Vendors

(1) The Investment Plan Administrator (Administrator) provides administrative services in the operation of the Florida Retirement System (FRS) Investment Plan other than those provided by the Division of Retirement within the Department of Management Services (Division) as set forth in Rule 19-13.002, F.A.C. The Administrator also provides enrollment processing for the FRS. Other administrative services are provided by the Division. Those services are described in Rule 19-13.002, F.A.C. The Administrator’s primary duties and responsibilities are to:

(a) Maintain the Investment Plan database;

(b) Process new enrollments into the Pension Plan or Investment Plan and to process existing enrollments of the employees’ 2nd Election into either FRS plan, pursuant to Section 121.4501(4), F.S.;

(d) Maintain a database of Investment Plan beneficiary designations;

(e) Transfer Investment Plan employer and employee contributions to the investment product providers, after contributions have been received from the Division;

(f) Provide aggregate accumulated benefit obligation data segregated by investment product provider to the State Board of Administration (SBA);

(g) Maintain Investment Plan member account data and such data as is sufficient to process 2nd Elections by existing members;

(h) Implement account transfers at the request of members;

(i) Implement withdrawals from account by electronic means;

(j) Implement distribution of Investment Plan benefits to Investment Plan members or beneficiaries;

(k) Provide quarterly or annual statements to Investment Plan members;

(l) Distribute written material;

(m) Provide phone response service on a toll-free line to assist members and employers to accomplish any required responsibility;

(n) Provide recordkeeping for all Investment Plan data within its responsibilities, including monitoring of monetary limits imposed by the federal Internal Revenue Code; and,

(o) Administer Qualified Domestic Relations Orders (QDROs).

(p) Provide a Self-Directed Brokerage Account (“SDBA”) to eligible Investment Plan members.

(2) Multiple providers furnish educational services.

(a) Financial information and guideance will be provided by a vendor via internet. More specifically, this provider posts technical education content and provides the following services digitally:

A defined benefit/defined contribution benefits projections calculator;
A variety of other analytical financial and retirement planning tools;
Investment guidance, which includes communicating general investment and financial information and risk and return modeling of investment options and optimized combinations or asset allocations, within a single member directed tax-exempt retirement account, under the following requirements:

(I) Online modeling services will be based on generally-accepted investment theories that take into account historic returns of different generic asset classes over defined periods of time;

(II) All material facts and assumptions that may affect a member’s assessment of the different asset allocations shall either be specified in the online modeling service or entered into the online modeling services by the member;

(III) To the extent that an asset allocation generated by the online modeling service identifies any specific investment option available under a member directed and tax-exempt retirement account, the online service will have fully incorporated and considered all investment options available within that retirement plan, as well as all household assets, except that the member must enter into the online modeling service non-FRS retirement account investment universes and household assets;

(IV) Any asset allocation, or specific combinations of investment options, communicated to members will be accompanied by a disclaimer that it is based on the information provided and is not individualized to reflect all of the particular needs of the member that may be relevant to his or her investment decisions, and that in applying the asset allocation to his or her individual situation, the member should consider his or her other assets, income and investments (including, for example, equity in a home, IRA investments, savings accounts and interest in other retirement plans) as well as his or her investments within the account for which the guidance is provided; and,

(V) There will be an objective correlation between the asset allocations and other information generated by the online modeling service and data supplied by the member;

Investment advice, which consists of communicating optimized combinations of specific investment options across multiple member directed tax-deferred or taxable accounts, under the requirements that the advice is rendered on a regular basis to the member, pursuant to a mutual agreement with the member that the advice will serve as a primary basis for the member’s investment decisions with respect to the member’s multiple member directed account assets and is individualized based on the particular needs of the member. Use of the terms “recommended” or “advice” or forms thereof, in an online modeling service does not constitute the rendering of advice in the absence of requirements set out in the preceding sentence.

(b) An education provider will furnish one-on-one employee and employer education and counseling. More specifically, the provider:

Conducts seminars and workshops for employees and employers;
Provides one-on-one, face-to-face, employee financial counseling, when requested;
Provides telephone support of education and guidance regarding:

(I) The defined contribution plan design and the investment options;

(II) Defined benefit/defined contribution choice information;

(III) Retirement planning;

(IV) Financial planning; and,

(V) Support of the online modeling service through which investment guidance or investment advice is rendered.

Create the education campaign and the overall deployment strategy;
Research, monitor, and measure the education campaign;
Create the look, theme, and branding for the education campaign;
Determine message positioning and delivery; and,
Assist in graphic design and the content of the website.

(d) An education provider will focus on the MyFRS.com website. This provider coordinates software application integration and the design and content of the MyFRS.com website among the other educational service providers, the Administrator, the Division, and the SBA.

(3) Multiple providers hired by the SBA furnish the investment options for Investment Plan members. Section 121.4501, F.S., is generally constructed as an unbundled architecture, meaning that neither the Administrator nor the education providers are permitted to offer investment products, and as a consequence, the SBA has hired multiple institutional investment managers and providers of mutual funds. Some of the providers are unbundled institutional investment managers, which manage assets in a particular asset class and in a particular style, and which are responsible solely for money management, either as a separate account or collective trusts. Other providers are bundled providers which provide mutual funds or investment options in collective trusts which are their own funds or funds contracted for or from another money management group. Each investment manager:

(a) Has authority and discretion, delegated by each manager’s contract, to invest employee payroll contributions deposited with the custodian and recorded by the Administrator for individual Investment Plan accounts;

(b) Transmits product values and performance data to the custodian; and

(4) An annuity provider has been hired by the SBA to offer annuities to retiring members.

(5) The custodian, hired by the SBA pursuant to Section 121.4501(8), F.S., is required to do the following:

(a) Hold cash, non-cash and all securities delivered to it or which are held in accounts established by it, or in the Federal Reserve book-entry system;

(b) Invest contributions that it receives, transfer amounts among investment funds, or liquidate securities, after receipt of proper instructions from the SBA, Administrator, or Investment Managers;

(d) Maintain a database of securities registered in the name of the Investment Plan;

(e) Remit or credit income;

(f) Communicate with the SBA regarding registered investment company shares and fund securities;

(g) Lend securities;

(h) Determine the value of assets;

(i) Calculate rates of return of investment products;

(j) Automatically re-balance the retirement date funds and multi-manger funds as directed by the SBA; and

(k) Provide a read-only website for Investment Plan members to access check advices and print copies of their 1099R forms.

(6) Miscellaneous consultants have been hired by the SBA to assist the SBA in the operations of the Investment Plan. Their responsibilities may include, but are not limited to, the following:

(a) Assisting in the selection process for the Administrator, the educational vendors, and the investment product providers;

(b) Assisting in all general investment product reviews;

(d) Consulting on the educational program and general Investment Plan matters;

(e) Consulting on unbundled investment fund design;

(f) Assisting in the selection and evaluation of all investment product providers;

(g) Assisting in developing and implementing investment product manager monitoring guidelines;

(h) Making recommendations for retention and termination of investment product providers; and

(i) Provide breach response services to the Investment Plan.

History

Rulemaking Authority 121.4501(8) FS. Law Implemented 121.4501(4), (8)(b), (e)1., (9)(a), (10) FS. History–New 10-21-04, Amended 7-12-12, 12-16-12, 12-30-15, 1-18-17, 5-11-22.

Chapter 19-14 NON-FLORIDA RETIREMENT SYSTEM DEFINED CONTRIBUTION PROGRAMS

Fla. Admin. Code R. 19-14.001 Policy Statement

History

Rulemaking Authority 121.4501(8), 215.52 FS. Law Implemented 112.215(4), 121.055(6)(f)2., 121.35(6)(c), 215.515 FS. History–New 10-21-04, Amended 7-12-12, Repealed 7-9-26.

Chapter 19-15 INSURANCE CAPITAL BUILD-UP INCENTIVE PROGRAM PURSUANT TO SECTION 215.5595 FS.

Fla. Admin. Code R. 19-15.001 Insurance Capital Build-Up Incentive Program

History

Rulemaking Authority 215.5595 FS. Law Implemented 215.5595(2), (2)(c), (d), (e), (g) FS. History–New 2-22-07, Amended 6-3-07, 8-13-07, 11-25-07, Repealed 10-2-11.

Division 19A Division of Bond Finance

Chapter 19A-1 LOCAL MUNICIPAL BOND REPORTING PROCEDURES

Fla. Admin. Code R. 19A-1.001 Purpose

History

Rulemaking Authority 218.37(2) FS. Law Implemented 218.37, 218.38 FS. History–New 8-10-80, Amended 3-3-83, Formerly 13K-1.01, 13K-1.001, Repealed 5-8-25.

Fla. Admin. Code R. 19A-1.002 Definitions

History

Rulemaking Authority 218.37(2) FS. Law Implemented 218.37, 218.38 FS. History–New 8-10-80, Amended 3-3-83, Formerly 13K-1.02, 13K-1.002, Repealed 5-8-25.

Fla. Admin. Code R. 19A-1.003 Reporting Requirements ‒ Outstanding General Obligation or Revenue Bonds

History

Rulemaking Authority 218.37(2) FS. Law Implemented 218.38(1)(a) FS. History–New 8-10-80, Amended 3-3-83, Formerly 13K-1.03, 13K-1.003, Repealed 5-8-25.

Fla. Admin. Code R. 19A-1.0041 Notice of Sale

History

Rulemaking Authority 218.37(2) FS. Law Implemented 218.38(1)(a) FS. History–New 3-3-83, Formerly 13K-1.041, 13K-1.0041, Repealed 5-8-25.

Fla. Admin. Code R. 19A-1.0051 Disclosure ‒ Competitive Sale

History

Rulemaking Authority 218.37(2) FS. Law Implemented 218.38(1)(b)1., (1)(b)3. FS. History–New 3-3-83, Formerly 13K-1.051, 13K-1.0051, Repealed 5-8-25.

Fla. Admin. Code R. 19A-1.006 Disclosure ‒ Negotiated Sale

History

Rulemaking Authority 218.37(2) FS. Law Implemented 218.38(2) FS. History–New 8-10-80, Formerly 13K-1.04, Amended 3-3-83, Formerly 13K-1.07, 13K-1.007, Repealed 5-8-25.

Fla. Admin. Code R. 19A-1.007 Verification Procedures

History

Rulemaking Authority 218.37(2) FS. Law Implemented 218.38(2) FS. History–New 8-10-80, Formerly 13K-1.04, Amended 3-3-83, Formerly 13K-1.07, 13K-1.007, Repealed 5-8-25.

Fla. Admin. Code R. 19A-1.008 Failure to Comply

History

Rulemaking Authority 218.37(2) FS. Law Implemented 218.38(3) FS. History–New 8-10-80, Formerly 13K-1.05, Amended 3-3-83, Formerly 13K-1.08, 13K-1.008, Repealed 5-8-25.

Fla. Admin. Code R. 19A-1.009 Local Government Bond Information Reporting

Each unit of local government shall furnish the information required in Section 218.38(1), F.S., to the Division of Bond Finance using Form No. DBF 2025-1.009, “Local Government Bond Information Form,” effective 04/25, which is available at https://flrules.org/Gateway/reference.asp?No=Ref-17975, and which is hereby adopted and incorporated by reference into this rule.

History

Rulemaking Authority 218.37(3) FS. Law Implemented 218.38(1)(a), (1)(b)1., (1)(c)1. FS. History–New 5-12-25.

Chapter 19A-3 SALE AND AWARD OF BONDS AND HOUSING BONDS

Fla. Admin. Code R. 19A-3.001 Purpose

History

Rulemaking Authority 215.62(5) FS. Law Implemented 215.68(5), 420.509 FS. History–New 3-27-84, Formerly 13K-3.01, Amended 10-8-90, Formerly 13K-3.001, Repealed 5-8-25.

Fla. Admin. Code R. 19A-3.002 Definitions

History

Rulemaking Authority 215.62(5) FS. Law Implemented 215.68(5), 420.509 FS. History–New 3-27-84, Formerly 13K-3.02, Amended 10-8-90, 12-3-91, Formerly 13K-3.002, Repealed 5-8-25.

Fla. Admin. Code R. 19A-3.003 Sale and Award of Bonds

History

Rulemaking Authority 215.62(5) FS. Law Implemented 215.68(5)(b), (c) FS. History–New 3-27-84, Formerly 13K-3.03, Amended 10-8-90, 12-3-91, Formerly 13K-3.003, Repealed 5-8-25.

Fla. Admin. Code R. 19A-3.004 Sale and Award of Housing Bonds

History

Rulemaking Authority 215.62(5) FS. Law Implemented 215.68(5)(b), (c), 420.509(5), (7) FS., Chapter 83-238, Laws of Florida. History–New 3-27-84, Formerly 13K-13.04, 13K-3.004, Repealed 12-7-15.

Chapter 19A-4 PRIVATE ACTIVITY BOND LIMIT ALLOCATION

Fla. Admin. Code R. 19A-4.001 Purpose

History

Rulemaking Authority 159.815 FS. Law Implemented Part VI, Chapter 159 FS. History–New 1-1-86, Formerly 13K-4.001, Repealed 5-8-25.

Fla. Admin. Code R. 19A-4.002 Definitions

History

Rulemaking Authority 159.815 FS. Law Implemented Part VI, Chapter 159 FS. History–New 1-1-86, Amended 1-7-88, Formerly 13K-4.002, Repealed 5-8-25.

Fla. Admin. Code R. 19A-4.005 Notice of Intent to Issue Bonds and Request for Written Confirmation

History

Rulemaking Authority 159.815 FS. Law Implemented 159.805(1), 159.814 FS. History–New 1-1-86, Amended 1-7-88, Formerly 13K-4.005, Repealed 5-8-25.

Fla. Admin. Code R. 19A-4.006 Incomplete or Incorrect Applications

History

Rulemaking Authority 159.815 FS. Law Implemented 159.805(1) FS. History–New 1-1-86, Formerly 13K-4.006, Repealed 5-8-25.

Fla. Admin. Code R. 19A-4.007 Tolling of Time Limitation

History

Rulemaking Authority 159.815 FS. Law Implemented 159.805(2), (4) FS. History–New 1-1-86, Amended 1-7-88, Formerly 13K-4.007, Repealed 5-8-25.

Fla. Admin. Code R. 19A-4.008 Final Confirmation of Allocation

History

Rulemaking Authority 159.815 FS. Law Implemented 159.805(2), (5) FS. History–New 1-1-86, Formerly 13K-4.008, Repealed 5-8-25.

Fla. Admin. Code R. 19A-4.009 Reduction of Amount Requested

History

Rulemaking Authority 159.815 FS. Law Implemented 159.805(6) FS. History–New 1-1-86, Amended 1-7-88, Formerly 13K-4.009, Repealed 5-8-25.

Fla. Admin. Code R. 19A-4.010 Fees

History

Rulemaking Authority 159.815 FS. Law Implemented 159.811(1) FS. History–New 12-15-85, Formerly 13K-4.010, Repealed 5-8-25.

Fla. Admin. Code R. 19A-4.011 Carryforwards

History

Rulemaking Authority 159.815 FS. Law Implemented 159.81 FS. History–New 1-1-86, Amended 1-7-88, Formerly 13K-4.011, Repealed 5-8-25.

Chapter 19A-5 MASTER EQUIPMENT FINANCING AGREEMENTS

Fla. Admin. Code R. 19A-5.001 Purpose

To establish a procedure for the Division of Bond Finance to negotiate Master Equipment Financing Agreements.

History

Rulemaking Authority 287.064(8) FS. Law Implemented 287.064 FS. History–New 7-17-89, Formerly 13K-5.001, Amended 5-25-95.

Fla. Admin. Code R. 19A-5.002 Definitions

The following words or terms when used in this rule chapter shall have the following meanings:

(1) “Certificate of Participation” means a financial instrument representing a right to share in payments made pursuant to a Master Equipment Financing Agreement.

(2) “Comptroller” means the Comptroller of the State of Florida.

(3) “Director” means the Director of the Division.

(4) “Division” means the Division of Bond Finance of the State Board of Administration.

(5) “Financing Professional” means one or more financial institutions, leasing companies or other participants necessary for the consolidated financing of deferred-payment purchases of equipment.

(6) “Financial Advisor” means a person or firm retained to advise the Division on financial matters relating to the issuance of certificates of participation or other activities of the Division, including, but not limited to, technical assistance in the design of financing arrangements and instruments; planning financial strategy for marketing, pricing and securing ratings; or representing the Division's interest in financial market dealings.

(7) “Finder” means a person or firm that enters into an understanding with an underwriter for any paid or promised compensation or valuable consideration to act as an intermediary, directly or indirectly, expressly or impliedly, between the Governing Board and such underwriter for the purpose of influencing any transaction in the purchase of certificates of participation in a Master Equipment Financing Agreement or other activity of the Division.

(8) “Governing Board” means the governing board of the Division composed of the Governor and Cabinet of the State of Florida.

(9) “Master Equipment Financing Agreement” means an agreement to be executed pursuant to Section 287.064, F.S., for the purpose of implementing a consolidated financing program for the acquisition of equipment by deferred-payment purchases made by or on behalf of the State of Florida or its agencies or by or on behalf of state community colleges.

(10) “Order Period” means, in a negotiated sale of certificates of participation, the period of time established by the underwriters and the Division during which orders are accepted from members of the underwriting group.

(11) “Purchaser” means the person or entity which directly purchases certificates of participation from an underwriter.

(12) “Takedown” means a component of the gross underwriting spread, similar to a commission, which represents the income derived by the underwriters from the sale of certificates of participation.

(13) “Tax Counsel” means an attorney or firm of attorneys retained to give a legal opinion that the state is authorized to enter into a Master Equipment Financing Agreement, that the state has met all legal requirements necessary to enter into a Master Equipment Financing Agreement, or that interest on the Master Equipment Financing Agreement will be excludable from gross income for federal income tax purposes and, where applicable, for state and local taxation.

(14) “Underwriter” means a person or firm that initially purchases a new issue of certificates of participation in connection with the award of a Master Equipment Financing Agreement.

History

Rulemaking Authority 287.064(8) FS. Law Implemented 287.064 FS. History–New 7-17-89, Formerly 13K-5.002, Amended 5-25-95.

Fla. Admin. Code R. 19A-5.003 Procedure

Upon the receipt of a written request by the Comptroller, the Division shall negotiate a Master Equipment Financing Agreement. In the negotiation of a Master Equipment Financing Agreement the Division may:

(1) Determine the method of entering into a Master Equipment Financing Agreement pursuant to Rule 19A-5.0035, F.A.C.

(2) Determine fees, interest rates, compensation, expenses or other terms of a Master Equipment Financing Agreement or any agreement relating to the establishment of a Master Equipment Financing Agreement.

(3) Select and retain Financing Professionals or any other professional firms or individuals relating to the establishment of a Master Equipment Financing Agreement.

History

Rulemaking Authority 287.064(8) FS. Law Implemented 287.064 FS. History–New 7-17-89, Formerly 13K-5.003, Amended 5-25-95.

Fla. Admin. Code R. 19A-5.0035 Award of Master Equipment Financing Agreement

(1) Master Equipment Financing Agreements shall be awarded at public offering in such manner and at such place or places within the State as the Governing Board shall determine. Notice of such offering shall be published as the Governing Board shall deem advisable and proper.

(2) All proposals for any Master Equipment Financing Agreement shall be opened in public. Such Master Equipment Financing Agreement shall be awarded to the lowest bidder. The basis of award shall be as set forth in a resolution of the Division. An Assistant Secretary of the Governing Board is authorized to present the Master Equipment Financing Agreement to the Comptroller for award and execution and such award and execution by the Comptroller shall be final without any further action by the Governing Board. An Assistant Secretary of the Governing Board is authorized to reject all bids received; such rejection shall be final without further action by the Governing Board. The results of the award of the Master Equipment Financing Agreement or the rejection of all bids shall be reported at a subsequent meeting of the Governing Board.

(3)(a) Notwithstanding the provisions of subsections (1) and (2), in the event the Governing Board determines by resolution that a negotiated award of a Master Equipment Financing Agreement is in the best interest of the state, and the Governing Board has approved the form and substance of a purchase contract or similar document except for any details unique to the particular Master Equipment Financing Agreement, an Assistant Secretary of the Governing Board is authorized to negotiate the award of the Master Equipment Financing Agreement, and present the Master Equipment Financing Agreement to the Comptroller for award and execution, without further action by the Governing Board, subject to any restrictions set forth in the resolution authorizing the negotiated award. In making a determination that the negotiated award is in the best interest of the state, the Governing Board shall provide in a resolution specific findings of the reasons requiring the negotiated award and the basis for the specific findings. In making such specific findings, the Governing Board shall consider the following factors:

Unstable market conditions which require the flexible pricing or the precise timing of the award of the Master Equipment Financing Agreement to a degree which would not be expected through a competitive award;
Concerns regarding the credit quality of the state or any source of revenue pledged to the Master Equipment Financing Agreement;
A Master Equipment Financing Agreement for an unusually large sum which, if awarded competitively, would result in the expectation of fewer bids than would be necessary for sufficient price competition;
A Master Equipment Financing Agreement which would require extensive or aggressive marketing of any certificates of participation;
Use of an innovative or unusual structure or security which would require the underwriting of the certificates of participation in a manner not likely to be available in a competitive offering; and
Changes or anticipated changes in laws or regulations which would make the prompt award of the Master Equipment Financing Agreement desirable.

(b) Prior to the negotiated award of a Master Equipment Financing Agreement, the Division shall retain the services of a financial advisor who shall, at a minimum, review and advise the Division as to the reasonableness of the timing of the award, the gross underwriting spread on any certificates of participation and the price of any certificates of participation. Immediately subsequent to the award the financial advisor shall provide a written opinion concerning the fairness or reasonableness of the timing of the award, any gross underwriting spread on the certificates of participation and the price of the certificates of participation.

(c) On or before the time that the Governing Board authorizes the award of the Master Equipment Financing Agreement by a negotiated offering, the Governing Board shall make the following determinations for any certificates of participation: the percentage distribution of the management fee among underwriters; the percentage of participation among underwriters; and any special instructions regarding the distribution of certificates of participation, which determinations and instructions shall be binding upon the underwriters. In addition, if requested by the Division, the underwriters shall be bound by the following:

When there are three or more underwriters selected by the Governing Board, all designated orders must be filled by a minimum of three underwriters designated by the purchaser of the certificates of participation and no one underwriter may receive more than 50% of any individual designated order.
During the order period, the underwriters shall provide the following information to the Division on a continual basis, as soon as it becomes available: the size and type of the orders received; the name of the underwriter placing the order and the purchaser of the certificates of participation; and the time of receipt of each order.

(4)(a) In the event the Division negotiates the offering of a Master Equipment Financing Agreement, the underwriters shall provide to the Division at least five business days prior to the award of the certificates of participation to the underwriters, unless a shorter time period is approved by the Director of the Division, a disclosure statement containing the following information:

The names, addresses, and estimated amounts of compensation of any finders connected with the transaction;
An estimate of:

a. Any expense component of the gross underwriting spread on the certificates of participation,

b. Any management fee component of the gross underwriting spread on the certificates of participation,

c. Any takedown component of the gross underwriting spread on the certificates of participation, and

d. Any risk component of the gross underwriting spread on the certificates of participation.

For purposes of sub-subparagraph 2.a. above, the underwriters must also provide an itemized list setting forth the nature and estimated amounts of expenses to be incurred by the underwriters in connection with the issuance of such certificates of participation. Notwithstanding the foregoing, any such list may include an item for miscellaneous expenses, provided it includes only minor items of expense which in total shall not exceed more than $2,500 and which cannot be easily categorized elsewhere in the statement.

Any other fee, retainer, bonus, or compensation estimated to be paid by the underwriters in connection with the transaction to any person not regularly employed or retained by it, and
The name and address of each underwriter in the syndicate or selling group for the certificates of participation.

(b) At least three business days prior to the award of the certificates of participation in a negotiated offering of a Master Equipment Financing Agreement, unless a shorter time period is approved by the Director of the Division, final agreement must be reached on:

The expense component of the gross underwriting spread on the certificates of participation; provided that in the negotiation of the expense component of the gross underwriting spread, no expenses for underwriter’s legal counsel will be considered which exceed the amount to be paid to Tax Counsel by the Division for the Master Equipment Financing Agreement, unless an increased amount is authorized by the Governing Board due to extraordinary circumstances such as unusual complexity of the transaction; provided, however, that this provision shall not be construed to limit in any way the compensation paid by the underwriter to underwriter's counsel;
The management fee component of the gross underwriting spread on the certificates of participation;
The maximum amount for the takedown component of the gross underwriting spread on the certificates of participation;
The maximum amount for the risk component of the gross underwriting spread on the certificates of participation; and
The level of participation by each of the underwriters involved in the transaction.

(5) The results of a negotiated award or the reasons the Division was unable to negotiate an award shall be reported at a subsequent meeting of the Governing Board. If a negotiated award is made the report shall include, at a minimum:

(a) The price of the certificates of participation,

(b) The allocation of the certificates of participation and an explanation of the gross underwriting spread, and

(c) The actual or estimated amount of all fees paid by the Division including, but not limited to, the fees of tax counsel and any financial advisor.

(6) No violation of any provision of this section shall affect the validity of any Master Equipment Financing Agreement or any certificates of participation thereunder.

History

Rulemaking Authority 276.064(8) FS. Law Implemented 287.064 FS. History–New 5-28-95.

Fla. Admin. Code R. 19A-5.004 Fees

The Division may charge the Comptroller fees which shall not exceed the limits established in the fee schedule adopted by the Governing Board for bonds issued by the Division and may include charges for all expenses provided for in the schedule.

History

Rulemaking Authority 287.064(8) FS. Law Implemented 287.064(10), 215.65(3) FS. History–New 7-17-89, Formerly 13K-5.004, Amended 5-25-95.

Chapter 19A-6 SELECTION OF SERVICE PROVIDERS AND UNDERWRITERS

Fla. Admin. Code R. 19A-6.001 Division Intent and Declaration of Policy; Purpose

History

Rulemaking Authority 215.62(5), 287.064(8) FS. Law Implemented 215.64(5), 215.68(5), 287.064 FS. History–New 12-3-91, Formerly 13K-6.001, Amended 5-25-95, Repealed 5-8-25.

Fla. Admin. Code R. 19A-6.002 Definitions

History

Rulemaking Authority 215.62(5), 287.064(8) FS. Law Implemented 112.313(8), 215.62(5), 215.64(5), 215.68(5), 287.064 FS. History–New 12-3-91, Formerly 13K-6.002, Amended 2-17-94, 3-24-94, 5-25-95, Repealed 5-8-25.

Fla. Admin. Code R. 19A-6.003 Prohibited Communications; Prohibited Ownership; Prohibited Disclosure or Use of Information

History

Rulemaking Authority 215.62(5), 287.064(8) FS. Law Implemented 112.313(8), 215.62(5), 215.64(5), 215.68(5), 287.064 FS. History–New 12-3-91, Formerly 13K-6.003, Amended 5-25-95, Repealed 5-8-25.

Fla. Admin. Code R. 19A-6.004 Prohibited Activities of Service Providers and Underwriters

History

Rulemaking Authority 215.62(5) FS. Law Implemented 215.64(5), 215.68(5) FS. History–New 12-3-91, Formerly 13K-6.004, Repealed 5-8-25.

Fla. Admin. Code R. 19A-6.005 Service Providers and Underwriters; Formal Selection Process

History

Rulemaking Authority 215.62(5) FS. Law Implemented 215.64(5), 215.68(5) FS. History–New 12-3-91, Formerly 13K-6.005, Repealed 5-8-25.

Fla. Admin. Code R. 19A-6.006 Declaratory Statements

History

Rulemaking Authority 215.62 FS. Law Implemented 215.64(5), 215.68(5) FS. History–New 12-3-91, Formerly 13K-6.006, Repealed 5-8-25.

Fla. Admin. Code R. 19A-6.007 Validity of Bonds, Master Equipment Financing Agreements, and Certificates of Participation

History

Rulemaking Authority 215.62(5), 287.064(8) FS. Law Implemented 215.64(5), 215.68(5), 287.064 FS. History–New 12-3-91, Formerly 13K-6.007, Amended 5-25-95, Repealed 5-8-25.

Chapter 19A-7 ARBITRAGE REBATE COMPLIANCE PROGRAM

Fla. Admin. Code R. 19A-7.001 Purpose

History

Rulemaking Authority 215.64(11), 215.835 FS. Law Implemented 215.64(11), 215.655 FS. History–New 12-10-91, Formerly 13K-7.001, Repealed 5-8-25.

Fla. Admin. Code R. 19A-7.002 Definitions

History

Rulemaking Authority 215.64(11), 215.835 FS. Law Implemented 215.64(11), 215.655 FS. History–New 12-10-91, Formerly 13K-7.002, Repealed 5-8-25.

Fla. Admin. Code R. 19A-7.003 Additional Information or Records

History

Rulemaking Authority 215.64(11), 215.835 FS. Law Implemented 215.64(11), 215.64(12), 215.655 FS. History–New 12-10-91, Formerly 13K-7.003, Repealed 5-8-25.

Fla. Admin. Code R. 19A-7.004 Failure to Comply

History

Rulemaking Authority 215.64(11), 215.835 FS. Law Implemented 215.64(11), 215.655 FS. History–New 12-10-91, Formerly 13K-7.004, Repealed 5-8-25.

Fla. Admin. Code R. 19A-7.005 Rebate Liability

History

Rulemaking Authority 215.64(11), 215.835 FS. Law Implemented 215.64(11), 215.655 FS. History–New 12-10-91, Formerly 13K-7.005, Repealed 5-8-25.

Fla. Admin. Code R. 19A-7.006 Arbitrage Compliance Fee

History

Rulemaking Authority 215.64(11), 215.835 FS. Law Implemented 215.64(11), 215.655 FS. History–New 12-10-91, Formerly 13K-7.006, Repealed 5-8-25.

Fla. Admin. Code R. 19A-7.007 Reliance on Outside Calculations

History

Rulemaking Authority 215.64(11), 215.835 FS. Law Implemented 215.64(11), 215.655 FS. History–New 12-10-91, Formerly 13K-7.007, Repealed 5-8-25.

Division 19B Florida Prepaid College Board

Chapter 19B-4 ADVANCE PAYMENT CONTRACT APPLICATION AND PAYMENTS

Fla. Admin. Code R. 19B-4.001 Application

(1) Rule Chapters 19B-4 through 19B-11, F.A.C., apply to advance payment contracts for the prepayment of the Registration Fee, Local Fees, Tuition Differential Fees and/or Dormitory Fees under the Stanley G. Tate Florida Prepaid College Program. See the Master Contract, which is incorporated by reference in subsection (2), for defined terms.

(2) The Florida Prepaid College Plan Master Contract, Form No. FPCB 2025-07, http://flrules.org/Gateway/reference.asp?No=Ref-18697, effective November 2025, is hereby incorporated by reference.

(3) The Board may only require that applicants provide the following information to enroll in the Program:

(a) For the Account Owner, Survivor, Parent and Beneficiary:

Full legal name and salutation;
Social Security Number;
Date of birth;
Full mailing address;
Two telephone numbers;
Two email addresses.

(b) Age, grade, and projected enrollment year of the Beneficiary.

(d) Proof of, or information used to verify proof of the Parent’s or Beneficiary’s Florida residency as defined in the Master Contract, which is incorporated by reference in subsection (2).

(e) Marketing information:

How did you hear about the Program?
Annual Family Income;
Purchaser’s relationship to the Beneficiary;
Beneficiary gender;
Beneficiary race.

(f) A Florida College Savings Program Account Number for the same Beneficiary if applicable.

(g) Information required for the processing of a one-time and recurring automatic withdrawal authorization.

(4) A copy of the Master Contract and Application may be obtained from the Board’s website (www.MyFloridaPrepaid.com).

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98 FS. History–New 3-29-89, Amended 2-6-90, 3-19-92, Formerly 4G-4.001, Amended 12-5-93, 5-31-95, 6-20-96, 10-20-96, 12-16-97, 2-18-99, 6-6-99, 2-8-00, 5-21-00, 1-3-01, 10-9-01, 11-27-02, 10-1-03, 1-29-04, 12-28-04, 6-2-05, 12-20-05, 1-1-07, 11-27-07, 12-17-07, 11-18-08, 1-28-09, 4-5-09, 10-26-09, 10-18-10, 12-5-11, 11-5-12, 10-7-13, 8-24-14, 6-23-16, 2-14-17, 8-29-19, 1-11-21, 12-14-21, 8-11-24, 7-1-25, 11-24-25.

Fla. Admin. Code R. 19B-4.002 Contract Prices

(1) The Board will approve Plan prices for each Open Enrollment Period. The value of the projected fees for the Florida College System or the State University System will be based primarily on Florida law and empirical data for national and Florida postsecondary tuition, required fees, and housing costs. Plan prices and the interest rate for installment payment plans for the current Open Enrollment Period will be published on the Board’s website (www.MyFloridaPrepaid.com).

(2) The Plan prices associated with Applications submitted to the Board during the Open Enrollment Period shall be the Plan prices applicable to advance payment contracts for the Open Enrollment Period. The Plan prices associated with Applications received by the Board outside the Open Enrollment Period, except for those purchased through the Board’s direct support organization, The Florida Prepaid College Foundation, Inc., for Purchasers participating in employer participation programs or by Purchasers pursuant to a court order, shall be the Plan prices applicable to advance payment contracts for the next succeeding Open Enrollment Period.

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98(2) FS. History–New 3-29-89, Amended 2-6-90, 3-19-92, Formerly 4G-4.002, Amended 5-31-95, 2-18-99, 2-8-00, 12-28-03, 12-28-04, 12-20-05, 12-17-07, 11-30-09, 10-18-10, 10-7-13, 8-24-14, 12-14-20.

Fla. Admin. Code R. 19B-4.003 Payment Options

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.975, 1009.98(4) FS. History–New 3-29-89, Amended 2-6-90, 3-19-92, Formerly 4G-4.003, Amended 6-20-96, 6-6-99, 11-27-02, 12-28-03, Repealed 8-24-14.

Fla. Admin. Code R. 19B-4.004 Default

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98(4) FS. History–New 3-29-89, Amended 2-6-90, 3-19-92, Formerly 4G-4.004, Repealed 8-24-14.

Fla. Admin. Code R. 19B-4.005 Maximum Account Balance Limit

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98, 1009.981 FS. History–New 11-27-02, Amended 12-28-03, 7-13-06, 12-17-07, 7-9-08, 10-18-10, 11-5-12, 10-7-13, Repealed 12-14-20.

Chapter 19B-5 ADVANCE PAYMENT CONTRACT BENEFITS

Fla. Admin. Code R. 19B-5.001 Plan Types

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98(2), (10) FS. History–New 3-29-89, Amended 5-17-92, 8-23-92, Formerly 4G-5.001, Amended 5-31-95, 6-20-96, 10-20-96, 8-18-97, 2-18-99, 2-8-00, 8-27-02, 12-17-07, 11-30-09, 10-18-10, 2-24-13, Repealed 8-24-14.

Fla. Admin. Code R. 19B-5.002 Contract Benefits

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98 FS. History–New 3-29-89, Amended 2-6-90, 3-19-92, Formerly 4G-5.002, Amended 5-31-95, 6-20-96, 2-18-99, 1-1-07, 12-17-07, 11-30-09, 10-18-10, 10-7-13, Repealed 8-24-14.

Fla. Admin. Code R. 19B-5.003 Contract Requirements

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98(4) FS. History–New 3-29-89, Amended 2-6-90, 3-19-92, Formerly 4G-5.003, Amended 5-31-95, 6-20-96, 2-18-99, 6-6-99, 11-6-01, 8-27-02, 12-17-07, 1-28-09, 10-18-10, 10-7-13, 8-24-14, Repealed 12-14-20.

Fla. Admin. Code R. 19B-5.004 Contract Purchasers

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98 FS. History–New 3-29-89, Amended 3-19-92, Formerly 4G-5.004, Amended 12-5-93, 6-20-96, 7-28-98, 11-27-02, 1-28-09, 10-18-10, 10-7-13, Repealed 8-24-14.

Fla. Admin. Code R. 19B-5.005 Contract Exclusions

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98 FS. History–New 3-29-89, Formerly 4G-5.005, Amended 6-20-96, 1-3-01, Repealed 8-24-14.

Fla. Admin. Code R. 19B-5.006 Limitations on Plan Option Changes

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98(4) FS. History–New 2-6-90, Formerly 4G-5.006, Amended 6-20-96, 3-20-97, 2-18-99, 12-17-07, 10-18-10, Repealed 8-24-14.

Fla. Admin. Code R. 19B-5.007 Scholarship Programs Operated by Non Profit Organizations

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98(9) FS. History–New 10-9-01, Repealed 12-14-20.

Fla. Admin. Code R. 19B-5.008 Contract Requirements

(1) Notwithstanding the requirement to specify a Beneficiary at the time of purchase pursuant to the Master Contract, which is incorporated by reference in subsection 19B-4.001(2), F.A.C., the board’s direct support organization and organizations operating scholarship programs pursuant to Rule 19B-5.007, F.A.C., shall be permitted to leave the qualified beneficiary’s name blank until April 1 of the anticipated enrollment year.

(2) The Account Owner or Beneficiary may submit a written request for an extension to the Board within one year of the benefit period expiring; however the Board does not guarantee approval of an extension request. Factors the Board considers for granting an extension of benefits for up to two years are time spent by the Beneficiary as an active duty member of the U.S. Armed Services, prior extensions, prior Beneficiary changes, recent plan usage, available alternatives, and financial and medical hardships. Any time spent by the qualified beneficiary in the military service tolls the time for receiving contract benefits under all plans. The matriculation date is the projected college enrollment year of the qualified beneficiary, based on the information about the qualified beneficiary’s age or grade contained in the purchaser’s application, or similar information received subsequently by the Board from the purchaser.

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98(4) FS. History–New 12-28-21.

Chapter 19B-6 FEE SCHEDULE

Fla. Admin. Code R. 19B-6.001 Fee Schedule

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.971(4), 1009.98 FS. History–New 3-29-89, Amended 2-6-90, 3-19-92, 8-23-92, Formerly 4G-6.001, Amended 12-5-93, 6-20-96, 12-16-97, 2-18-99, 2-8-00, 11-6-01, 11-27-02, 12-17-07, 10-18-10, 11-5-12, Repealed 10-7-13.

Chapter 19B-7 ELIGIBILITY

Fla. Admin. Code R. 19B-7.001 Beneficiary Defined

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.971, 1009.98 FS. History–New 3-29-89, Amended 2-6-90, Formerly 4G-7.001, Amended 11-27-02, 1-1-07, Repealed 8-24-14.

Fla. Admin. Code R. 19B-7.002 Residency

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.97(3)(f), 1009.971, 1009.98 FS. History–New 3-29-89, Formerly 4G-7.002, Repealed 8-24-14.

Fla. Admin. Code R. 19B-7.003 Evidence of Residency

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.97(3)(f), 1009.971, 1009.98 FS. History–New 3-29-89, Formerly 4G-7.003, Amended 6-20-96, Repealed 8-24-14.

Chapter 19B-8 SUBSTITUTION OF BENEFICIARY

Fla. Admin. Code R. 19B-8.001 Qualified Individuals

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98(4) FS. History–New 3-29-89, Formerly 4G-8.001, Amended 12-5-93, 6-20-96, 8-18-97, 12-16-97, 3-24-99, 2-8-00, 10-9-01, 12-28-03, 3-15-06, 1-28-09, Repealed 8-24-14.

Fla. Admin. Code R. 19B-8.002 Age Limitations

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.971, 1009.98 FS. History–New 3-29-89, Formerly 4G-8.002, Amended 6-20-96, 3-18-12, Repealed 10-7-13.

Fla. Admin. Code R. 19B-8.003 Fee

History

Rulemaking Authority 240.551(5) FS. Law Implemented 240.551 FS. History–New 3-29-89, Formerly 4G-8.003, Repealed 6-20-96.

Fla. Admin. Code R. 19B-8.004 Scholarship Programs

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98 FS. History–New 1-1-07, Repealed 12-14-20.

Chapter 19B-9 TRANSFERABILITY

Fla. Admin. Code R. 19B-9.001 Flexibility

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.971, 1009.98(3) FS. History–New 3-29-89, Amended 3-19-92, Formerly 4G-9.001, Amended 6-20-96, 8-18-97, 12-17-07, 10-18-10, Repealed 8-24-14.

Fla. Admin. Code R. 19B-9.002 Use of Benefits at In-State Private Colleges or Universities, Out-of-State Colleges and Universities and Vocational-Technical Schools

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98 FS. History–New 3-29-89, Formerly 4G-9.002, Amended 2-6-90, 12-5-93, 6-20-96, 10-20-96, 2-18-99, 10-9-01, 12-17-07, 11-30-09, 10-18-10, Repealed 8-24-14.

Fla. Admin. Code R. 19B-9.003 Transfer to Out-of-State Schools

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98(3) FS. History–New 3-29-89, Formerly 4G-9.003, Amended 12-5-93, 6-20-96, 2-18-99, 1-3-01, 10-9-01, 12-17-07, Repealed 11-30-09.

Fla. Admin. Code R. 19B-9.004 Dormitory Transfer to Florida Colleges and State University-Held Residences Other than Dormitories

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98(3), (10) FS. History–New 10-20-96, Amended 1-28-09, 11-30-09, 10-18-10, 10-7-13, Repealed 8-24-14.

Fla. Admin. Code R. 19B-9.005 Transfer to In-State Vocational-Technical Schools

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98(3) FS. History–New 1-3-01, Amended 12-17-07, Repealed 11-30-09.

Chapter 19B-10 TERMINATION

Fla. Admin. Code R. 19B-10.001 Involuntary Termination

History

Rulemaking Authority 1009.971(1), (4), (6) Law Implemented 1009.971, 1009.98(4) FS. History–New 3-29-89, Formerly 4G-10.001, Amended 6-20-96, Repealed 8-24-14.

Fla. Admin. Code R. 19B-10.002 Voluntary Termination

History

Rulemaking Authority 1009.971(1), (4), (6) Law Implemented 1009.971, 1009.98(4) FS. History–New 3-29-89, Formerly 4G-10.002, Amended 6-20-96, 7-28-98, 1-28-09, Repealed 8-24-14.

Chapter 19B-11 REFUND

Fla. Admin. Code R. 19B-11.001 General

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.971, 1009.98(5), (10) FS. History–New 3-29-89, Amended 2-6-90, 3-19-92, Formerly 4G-11.001, Amended 8-18-97, 11-6-01, 12-17-07, 1-28-09, 11-30-09, 10-18-10, Repealed 8-24-14.

Fla. Admin. Code R. 19B-11.002 Conversion of a Plan to Another Plan of Lesser Value

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98(5) FS. History–New 3-29-89, Amended 2-6-90, 3-19-92, Formerly 4G-11.002, Amended 8-18-97, Repealed 8-24-14.

Fla. Admin. Code R. 19B-11.003 Conversion/Refund Requests

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98(5) FS. History–New 3-29-89, Amended 3-19-92, Formerly 4G-11.003, Repealed 8-24-14.

Fla. Admin. Code R. 19B-11.004 Dormitory Refund

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.971, 1009.98(5) FS. History–New 3-29-89, Amended 2-6-90, Formerly 4G-11.004, Amended 5-31-95, 2-18-99, 10-18-10, Repealed 8-24-14.

Fla. Admin. Code R. 19B-11.005 Other Refunds

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.971, 1009.98(5) FS. History–New 3-29-89, Amended 2-6-90, 3-19-92, Formerly 4G-11.005, Amended 1-28-09, 10-18-10, Repealed 8-24-14.

Fla. Admin. Code R. 19B-11.006 Hold Harmless

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98 FS. History–New 6-20-96, Repealed 8-24-14.

Fla. Admin. Code R. 19B-11.007 Unclaimed Refunds

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.971, 1009.972(5), 1009.98(5) FS. History–New 6-20-96, Amended 12-29-98, 4-15-04, 1-28-09, 10-18-10, Repealed 12-14-20.

Chapter 19B-12 GRIEVANCE PETITIONS

Fla. Admin. Code R. 19B-12.001 Special Petition

(1) Any person who desires to petition the Board for relief from the procedures and policies within Chapters 19B-4 through 11, 19B-16 and 19B-18, F.A.C., may do so by filing a petition with the Executive Director of the Board or by filing a petition for a waiver or variance of a Board rule pursuant to Section 120.542, F.S.

(2) The petition shall contain the name and address of the person requesting relief; the specific nature of the relief requested; the name and address of any purchaser, benefactor, designated beneficiary or beneficiary on any disputed contract (if applicable); the prepaid college contract or participation agreement account numbers of the contract in question; the rule or policy from which the petitioner is requesting relief; the date of request; and the signature of the petitioner.

(3) The chairman has the authority to respond on behalf of the Board. The response must be in writing and must be made within 45 days of receipt of the petition from the person requesting relief.

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 120.542, 1009.98, 1009.981 FS. History–New 2-6-90, Formerly 4G-12.001, Amended 6-20-96, 12-16-97, 5-30-02, 12-14-20.

Fla. Admin. Code R. 19B-12.002 Point of Entry

Any person whose interests are substantially affected by a response to a special petition filed pursuant to Rule 19B-12.001, F.A.C., may seek relief pursuant to Section 120.569, F.S., or may seek a waiver or variance pursuant to Section 120.542, F.S. and Rule 28-104, F.A.C.

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 120.542, 120.569, 1009.98, 1009.981 FS. History–New 2-6-90, Formerly 4G-12.002, Amended 12-16-97.

Fla. Admin. Code R. 19B-12.003 Financial Hardship

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98 FS. History–New 5-17-92, Formerly 4G-12.003, Amended 6-20-96, 3-18-12, Repealed 12-14-20.

Chapter 19B-13 FLORIDA PREPAID TUITION SCHOLARSHIP PROGRAM

Fla. Admin. Code R. 19B-13.001 Tuition Scholarships

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.984 FS. History–New 5-17-92, Formerly 4G-13.001, Repealed 12-14-20.

Chapter 19B-14 CONTRACT DISPUTE RESOLUTION

Fla. Admin. Code R. 19B-14.001 Scope

These rules shall apply to the resolution of all claims, disputes or controversies related to or arising from contracts, including any extensions of contracts, entered by the Florida Prepaid College Board on or after the effective date of these rules. These rules shall constitute the sole procedure for the resolution of all claims under all such contracts. These rules do not apply to advance payment contracts for the prepayment of Registration Fees, Local Fees, the Tuition Differential Fee and dormitory fees.

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.971 FS. History–New 6-20-96, Amended 10-18-10.

Fla. Admin. Code R. 19B-14.002 Initiating Proceedings Related to Contracts with the Board

(1) Any person or firm that has entered into a contract with the Board and has been adversely affected by a decision of the Board or its employees concerning such contract shall file a written petition to contest the decision with the Board within 21 days of the date of the receipt by such person or firm of the decision. The notice of the decision shall be provided in writing to the person or firm by the Executive Director. The date of receipt of the notice shall be either the date on which the notice is received by the person or firm if the notice is sent by registered mail or by other means of delivery which results in a receipt for delivery or the date of the decision plus five days if the notice is sent by regular mail. Any person or firm who receives such written notice of the decision and who fails to request a hearing within twenty-one days, shall have waived his right subsequently to request a hearing on such matters.

(2) The petition shall include the following:

(a) The name and business address of the person or firm which claims to be adversely affected by a decision of the Board or its employees;

(b) A concise statement of the ultimate facts upon which the claim arose;

(d) A statement of all disputed issues of material fact upon which the claim is based or, if there are none, the petition shall so indicate;

(e) A concise statement which explains how the substantial interests of the person or firm are affected by the decision of the Board or the Board’s employees;

(f) A concise statement of the provisions of the contract together with any federal, state and local laws, ordinances or code requirements or customary practices and usages in the industry asserted to be applicable to the questions presented by the claim;

(g) The demand for relief sought by the claimant;

(h) The date of the occurrence of the event or events which gave rise to the claim and the date and manner of the Contractor’s compliance with the contract; and

(i) Any other material information the person or firm contends is material to its claim.

(3) The written petition shall be printed, typewritten or otherwise duplicated in legible form. The petition shall include copies of all documents which support the claim.

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.971 FS. History–New 6-20-96.

Fla. Admin. Code R. 19B-14.003 Resolution of Claims

(1) Upon receipt of a formal written petition, the Executive Director shall attempt to resolve the matters that are the subject of the petition by mutual agreement within fifteen (15) days, excluding Saturdays, Sundays, and legal holidays.

(2) If the petition is not resolved by mutual agreement within fifteen (15) days, excluding Saturdays, Sundays and legal holidays, the Executive Director shall deliver, within forty-five (45) days from the date such petition was filed, to the person or firm that filed the petition a determination that indicates the Board’s written response to the claims or such person or firm.

(3) Unless the person or firm who filed the petition agrees to the determination of the Board and a consent order adopting the determination is entered within thirty (30) days from the receipt by the person or firm of the Board’s determination, the Executive Director, if no disputed issues of material fact are involved, shall designate a hearing officer who shall conduct an informal proceeding pursuant to Section 120.57(2), F.S., and applicable Board rules. The hearing officer designated by the Executive Director shall be either a person who is a member in good standing of the Florida Bar or a person knowledgeable by virtue of education or practical experience with the subject matter of similar contracts involving state agencies.

(4) If there is a disputed issue of material fact, the Executive Director shall refer the petition to the Division of Administrative Hearings of the Department of Management Services for proceedings under Section 120.57(1), F.S.

(5) Once the Executive Director has referred the dispute to a hearing officer pursuant to subsection (3) or (4), no further information or amendment of the claims shall be permitted.

(6) The statements, facts, documents and materials contained in the petition filed pursuant to Rule 19B-14.002, F.A.C., or which are submitted to and received by the Executive Director prior to the determination made pursuant to subsection 19B-14.003(2), F.A.C., shall constitute the entire factual record submitted by a person or firm on which a claim against the Board may be sustained in any hearing under this rule. A person or firm making a claim against the Board shall not be allowed to submit to a hearing officer any statements, facts, documents or materials to support any claim against the Board which were not submitted to the Executive Director by the person or firm making the claim prior to the Executive Director’s determination pursuant to subsection 19B-14.003(2), F.A.C. The Board may submit statements, facts, documents or materials in response to the factual record submitted by a person or firm making a claim against the Board or to sustain the decision of the Executive Director which was made pursuant to subsection 19B-14.003(2), F.A.C.

(7) The filing of a petition by a person or firm pursuant to the provisions of this rule shall not affect the duty or obligation of the person or firm pursuant to the contract under which the claim or dispute arose. Any person or firm which files a petition pursuant to the provisions of this rule expressly agrees that it shall continue to proceed with all scheduled work as determined under any prior existing schedule pursuant to such contract unless otherwise agreed in writing between the person or firm and the Board.

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.971 FS. History–New 6-20-96.

Chapter 19B-15 FLORIDA PREPAID COLLEGE FOUNDATION

Fla. Admin. Code R. 19B-15.001 Florida Prepaid College Foundation, Inc.; Requirements; Use of Board Property

(1) The Florida Prepaid College Foundation, Inc., a not-for-profit corporation established pursuant to Section 1009.983, F.S., shall:

(a) Submit its articles of incorporation and by-laws to the Board annually for approval.

(b) Promptly notify the Board of any amendments to the Foundation’s articles of incorporation and by-laws.

(d) Contract with an independent certified public accounting firm for an annual financial and compliance audit of the financial accounts and records of the Foundation.

(e) Establish a fiscal year that will begin on July 1 of each year and end on June 30 of the following year.

(f) Disclose the material provisions of the contract between the Foundation and the Board to donors of gifts, contributions and bequests to the Foundation and in all promotional and fundraising publications of the Foundation

(g) With the exception of those public records described in Sections 1009.98(6), 1009.981(6) and 1009.983, F.S., allow inspection and copying of all other documents, papers, letters or other records of the Foundation that are made or received in conjunction with the business of the Foundation in accordance with the requirements of the Florida Public Records Law, Section 119.07, F.S.

(h) Allow the Board, its employees or designees, or other state agencies as provided by law to audit the Foundation upon reasonable notice at the Foundation’s offices during normal business hours.

(2) To be eligible to use the Board’s property (except money), facilities and personal services, the Foundation shall:

(a) Provide equal employment opportunities to all persons, regardless of race, color, religion, sex, age or national origin.

(b) Make a written request to the Executive Director of the Board specifying the property, facilities and personal services which the Foundation requests that it be allowed to use.

History

Rulemaking Authority 1009.971(1), (4), (6), 1009.983(6) FS. Law Implemented 1009.983 FS. History–New 10-9-01.

Chapter 19B-16 FLORIDA COLLEGE SAVINGS PROGRAM

Fla. Admin. Code R. 19B-16.001 Application of Rule Chapter; Definitions

(1) These rules apply to participants in the Florida College Savings Plan, a Qualified Tuition Program that allows persons to make contributions to an Account established for the purpose of meeting some or all of the Qualified Higher Education Expenses of a Beneficiary.

(2) For the purposes of the Florida College Savings Plan and rule Chapter 19B-16, F.A.C., definitions are set forth in the Participation Agreement and Terms and Conditions, which are incorporated by reference in Rule 19B-16.003, F.A.C.

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.981 FS. History–New 5-30-02, Amended 11-27-02, 11-5-12, 5-8-13, 11-24-25.

Fla. Admin. Code R. 19B-16.002 Application for Participation in the Program

(1) The Board may only require that applicants provide the following information:

(a) For the Account Owner, Survivor, Parent and Beneficiary:

Full legal name and salutation;
Social Security Number;
Date of birth;
Full mailing address;
Two telephone numbers;
Two email addresses;

(b) Age, grade, and projected enrollment year of the Beneficiary.

(d) The source and amount of the initial contribution and any Rollover Contribution.

(e) Marketing Information:

How did you hear about the Program?
Annual Family Income;
Purchaser’s relationship to the Beneficiary;
Beneficiary gender;
Beneficiary race.

(f) A Florida Prepaid College Plan Number for the same Beneficiary, if applicable.

(g) Information required for the processing of a one-time and recurring automatic contribution authorization.

(2) A copy of the Participation Agreement, Terms and Conditions, and Application may be obtained from the Board’s website (www.MyFloridaPrepaid.com).

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.981 FS. History–New 11-27-02, Amended 1-29-04, 12-28-04, 6-2-05, 12-20-05, 1-1-07, 11-27-07, 11-18-08, 1-28-09, 4-5-09, 10-26-09, 10-18-10, 12-5-11, 11-5-12, 5-8-13, 10-7-13, 11-24-25.

Fla. Admin. Code R. 19B-16.003 Participation Agreement

The Participation Agreement, Form No. FPCB 2025-08, http://flrules.org/Gateway/Reference.asp?No=Ref-18698, effective November 2025 is hereby incorporated by reference. The Terms and Conditions, applicable to the Participation Agreement, Form No. FPCB 2025-09, http://flrules.org/Gateway/Reference.asp?No=Ref-18699, effective November 2025, is hereby incorporated by reference. A copy of the Participation Agreement and associated Terms and Conditions may be obtained from the Board’s website (www.MyFloridaPrepaid.com).

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.971, 1009.981 FS. History–New 11-27-02, Amended 12-28-04, 6-2-05, 7-13-06, 12-4-07, 5-29-08, 6-3-09, 6-22-10, 10-24-12, 5-8-13, 10-7-13, 6-23-16, 2-14-17, 8-29-19, 1-11-20, 12-14-21, 8-11-24, 7-1-25, 11-24-25.

Fla. Admin. Code R. 19B-16.004 Payment and Minimum Contributions

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.981 FS. History–New 5-30-02, Amended 11-27-02, 12-28-03, 4-21-05, 1-28-09, Repealed 5-8-13.

Fla. Admin. Code R. 19B-16.005 Maximum Account Balance Limit

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.971, 1009.98, 1009.981 FS. History–New 5-30-02, Amended 11-27-02, 12-28-03, 7-13-06, 7-9-08, 5-8-13, Repealed 12-14-20.

Fla. Admin. Code R. 19B-16.006 Change of Benefactor

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.981 FS. History–New 5-30-02, Amended 1-28-09, Repealed 5-8-13.

Fla. Admin. Code R. 19B-16.007 Change of Designated Beneficiary

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.981 FS. History–New 5-30-02, Amended 1-28-09, Repealed 5-8-13.

Fla. Admin. Code R. 19B-16.008 Contingent Benefactor

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.981 FS. History–New 5-30-02, Amended 11-27-02, 1-28-09, Repealed 5-8-13.

Fla. Admin. Code R. 19B-16.009 Rollover Distributions

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.981(3) FS. History–New 5-30-02, Amended 1-28-09, Repealed 5-8-13.

Fla. Admin. Code R. 19B-16.010 Termination and Withdrawal; Distributions

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.981(3) FS. History–New 5-30-02, Amended 11-27-02, 4-21-05, 1-28-09, Repealed 5-8-13.

Fla. Admin. Code R. 19B-16.011 Unclaimed Refunds

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.971, 1009.972(5), 1009.981(4) FS. History–New 5-30-02, Amended 1-1-07, 1-28-09, 5-8-13, Repealed 12-14-20.

Fla. Admin. Code R. 19B-16.012 Administration Fee

The Board will determine the amount of the Administration Fee periodically and may consider factors including, but not limited to, the total amount invested in the Program by all Account Owners, the amounts of the fees that the Board must pay for investment management services, trustee services, records administration services, marketing services, and customer services and the annual budget of the Board, which has been approved by the State Board of Administration.

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.971(4)(n), 1009.981 FS. History–New 11-27-02, Amended 4-21-05, 5-8-13.

Fla. Admin. Code R. 19B-16.013 Maximum Account Balance Limit

The Maximum Account Balance shall be calculated by multiplying the Qualified Higher Education Expenses, including tuition fees, room and board, and supplies, at the most expensive Eligible Educational Institution, by seven (7), and rounding the resulting product downward to the nearest $1,000.00 increment. In determining the Qualified Higher Education Expenses at the most expensive Eligible Educational Institution, the Board will consult the figures compiled by the College Board and published in the annual College Handbook which is found at the College Board’s website (www.collegeboard.com). The Maximum Account Balance shall not exceed the amount permitted pursuant to Section 529 of the Code.

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.971, 1009.98, 1009.981 FS. History–New 12-28-21.

Fla. Admin. Code R. 19B-16.014 Unclaimed Refunds

(1) The Board will mail written notice to the Account Owner when a refund of fifty dollars ($50.00) or more for the Account will be escheated within one (1) year. The notice shall indicate the procedure which must be followed to obtain a refund of the monies held by the Board for said Accounts and that, if a claim for a refund is not made within seven (7) years of the termination of the Account, the funds will escheat to the Florida Prepaid College Trust Fund. An alphabetical list of the names of the Account Owners of such Accounts shall be posted on the Board’s website (www.MyFloridaPrepaid.com).

(2) The Board will attempt to identify contributors who have made inadvertent payments of fifty dollars ($50.00) or more into the Program and who are owed a refund of such payments. The Board will mail a written notice to persons who made such payments informing them that they are entitled to a refund of the inadvertent payments when such refunds will be escheated within one (1) year. The notice will indicate the procedure which the person must follow to obtain a refund of the monies held by the Board and that, if a claim for a refund is not made within seven (7) years of the receipt of the inadvertent payment, the funds will escheat to the Florida Prepaid College Trust Fund. An alphabetical list of the names of the contributors shall be posted on the Board’s website (www.MyFloridaPrepaid.com).

(3) When the Board determines one or more additional methods for locating and notifying Account Owners and contributors due an unclaimed refund or entitled to a refund of an inadvertent payment are available which are likely to increase the number and amounts of refunds provided to Account Owners and contributors, the Board will use such methods to locate and provide refunds to Account Owners and contributors.

(4) The Board shall annually review and approve the list of unclaimed refunds and inadvertent payments which have remained unclaimed for the periods required under this rule and are subject to escheatment to the Florida Prepaid College Trust Fund.

History

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.971, 1009.972(5), 1009.981(4) FS. History–New 12-28-21.

Chapter 19B-17 Florida ABLE, Inc.

Fla. Admin. Code R. 19B-17.001 Florida ABLE, Inc.; Requirements; Use of Board Property

(1) Florida ABLE, Inc., a not-for-profit corporation established pursuant to Section 1009.986, F.S., shall:

(a) Submit its articles of incorporation and by-laws, and any amendments thereto, after approval by the Florida ABLE, Inc., Board, to the Florida Prepaid College Board for approval.

(b) Submit its annual budget to the Florida Prepaid College Board not later than June 30 of each year.

(c) With the exception of those public records described in Sections 1009.987, F.S., allow inspection and copying of all other documents, papers, letters or other records of Florida ABLE, Inc., that are made or received in conjunction with the business of the corporation in accordance with the requirements of the Florida Public Records Law, Section 119.07, F.S.

(2) To be eligible to use the Florida Prepaid College Board’s property (except money), facilities and personal services, Florida ABLE, Inc., shall make a written request to the Executive Director of the Florida Prepaid College Board specifying the property, facilities and personal services which Florida ABLE, Inc., requests that it be allowed to use.

History

Rulemaking Authority 1009.971(1), (4), 1009.986(10) FS. Law Implemented 1009.986 FS. History–New 6-23-16.

Chapter 19B-18 Florida ABLE Program

Fla. Admin. Code R. 19B-18.001 Application of Rule Chapter; Definitions

For the purposes of the Florida ABLE Program and rule chapter 19B-18, F.A.C., defined terms and other definitions are set forth in the Participation Agreement and Terms and Conditions, which are incorporated by reference in rule 19B-18.003, F.A.C.

History

Rulemaking Authority 1009.971(1), (4), 1009.986(10) FS. Law Implemented 1009.986 FS. History–New 6-23-16.

Fla. Admin. Code R. 19B-18.002 Application for Participation in the Program

(1) The Program shall only require that applicants provide the following information:

(a) For the Beneficiary, Administrator, and Authorized Signatory:

Full legal name, including salutation and suffix;
Social Security Number;
Date of birth;
Two mailing addresses;
Two telephone numbers;
Two e-mail addresses;
Relationship to Beneficiary; and,
Contact preferences.

(b) The Future Contribution Allocation.

(d) Marketing Information for the Beneficiary, Administrator, and Authorized Signatory:

How did you hear about the Program?
Annual Family or Household Income;
Gender;
Race;
Primary language;
Level of education; and,
Types of federal and state benefits currently received or applied for.

(e) Information required for the processing of a one-time and recurring automatic contribution authorization.

(f) Information required to determine basis of Beneficiary’s eligibility for an ABLE Account.

(g) Information required by the Participation Agreement and Terms and Conditions.

(h) Information required by the Secretary of the Treasury or Commissioner of Social Security.

(2) A copy of the Participation Agreement, Terms and Conditions, and Application may be obtained from the Board by submitting a request for these documents to: P.O. Box 6448, Tallahassee, Florida 32314-6448.

History

Rulemaking Authority 1009.971(1), (4), 1009.986(10) FS. Law Implemented 1009.986 FS. History–New 6-23-16.

Fla. Admin. Code R. 19B-18.003 Participation Agreement

The Participation Agreement, Form No. FPCB 2018-07, http://www.flrules.org/Gateway/reference.asp?No=Ref-09689, is hereby incorporated by reference. The Terms and Conditions, applicable to the Participation Agreement, Form No. FPCB 2018-08, http://www.flrules.org/Gateway/reference.asp?No=Ref-09690, is hereby incorporated by reference.

History

Rulemaking Authority 1009.971(1), (4), 1009.986(10) FS. Law Implemented 1009.986 FS. History–New 6-23-16, Amended 2-14-17, 9-24-18.

Fla. Admin. Code R. 19B-18.005 Account and Investment Administration Fees

Florida ABLE, Inc., will determine the amounts of the Account Fee and the Investment Administration Fee periodically and may consider factors the total amount invested in the Program by all Beneficiaries, the amounts of the fees that the Program must pay for investment management services, trustee services, records administration services, marketing services, and customer services and the annual budget of the Program. The fees charged will be available at www.ableunited.com.

History

Rulemaking Authority 1009.971(1), (4), 1009.986(10) FS. Law Implemented 1009.986 FS. History–New 6-23-16.