1. (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.

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

   2. (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.

      1. 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.

      2. 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.

   3. (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.

      1. Upon cancellation, the member shall be transferred back to the Investment Plan.

      2. All monies transferred to the disability account of the FRS Trust Fund will be transferred back to the member’s Investment Plan account.

      3. The member may elect to receive benefits as provided under Section 121.591(1), F.S., in lieu of the disability benefits.

   4. (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.

      1. 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.

      2. Vested and non-vested amounts shall be accounted for separately as provided in Section 121.4501(6), F.S.

      3. 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.

      4. 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. (2) In Line of Duty death benefits:

   1. (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.
   2. (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.
   3. (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.
   4. (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.
   5. (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.

   6. (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.

      1. 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.

      2. 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.

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.