Florida Administrative Code › 19 - STATE BOARD OF ADMINISTRATION › 19 - Departmental › Chapter 19-11 - PROCEDURES FOR THE PUBLIC EMPLOYEE OPTIONAL RETIREMENT PROGRAM › Section 19-11.008 - Forfeitures

Current through Reg. 50, No. 138; July 16, 2024
(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 Core Plus Bond 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 Core Plus Bond Fund.
(c) If the member never returns 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 Core Plus Bond 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 Core Plus Bond 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.