Florida Senate - 2008 SB 2844
By Senator Margolis
35-03470A-08 20082844__
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A bill to be entitled
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An act relating to an elected officer's retirement
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benefits; amending s. 121.091, F.S.; revising provision
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relating to the deferment of election to participate in
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the DROP by an elected officer reaching normal retirement
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date; authorizing certain elected officials to elect to
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participate in the DROP during a specified period;
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providing an effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Paragraph (b) of subsection (13) of section
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121.091, Florida Statutes, is amended to read:
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121.091 Benefits payable under the system.--Benefits may
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not be paid under this section unless the member has terminated
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employment as provided in s. 121.021(39)(a) or begun
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participation in the Deferred Retirement Option Program as
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provided in subsection (13), and a proper application has been
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filed in the manner prescribed by the department. The department
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may cancel an application for retirement benefits when the member
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or beneficiary fails to timely provide the information and
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documents required by this chapter and the department's rules.
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The department shall adopt rules establishing procedures for
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application for retirement benefits and for the cancellation of
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such application when the required information or documents are
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not received.
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(13) DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
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subject to the provisions of this section, the Deferred
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Retirement Option Program, hereinafter referred to as the DROP,
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is a program under which an eligible member of the Florida
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Retirement System may elect to participate, deferring receipt of
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retirement benefits while continuing employment with his or her
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Florida Retirement System employer. The deferred monthly benefits
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shall accrue in the System Trust Fund on behalf of the
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participant, plus interest compounded monthly, for the specified
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period of the DROP participation, as provided in paragraph (c).
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Upon termination of employment, the participant shall receive the
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total DROP benefits and begin to receive the previously
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determined normal retirement benefits. Participation in the DROP
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does not guarantee employment for the specified period of DROP.
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Participation in the DROP by an eligible member beyond the
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initial 60-month period as authorized in this subsection shall be
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on an annual contractual basis for all participants.
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(b) Participation in the DROP.--
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1. An eligible member may elect to participate in the DROP
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for a period not to exceed a maximum of 60 calendar months or,
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with respect to members who are instructional personnel employed
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by the Florida School for the Deaf and the Blind and who have
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received authorization by the Board of Trustees of the Florida
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School for the Deaf and the Blind to participate in the DROP
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beyond 60 months, or who are instructional personnel as defined
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in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
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authorization by the district school superintendent to
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participate in the DROP beyond 60 calendar months, 96 calendar
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months immediately following the date on which the member first
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reaches his or her normal retirement date or the date to which he
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or she is eligible to defer his or her election to participate as
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provided in subparagraph (a)2. However, a member who has reached
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normal retirement date prior to the effective date of the DROP
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shall be eligible to participate in the DROP for a period of time
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not to exceed 60 calendar months or, with respect to members who
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are instructional personnel employed by the Florida School for
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the Deaf and the Blind and who have received authorization by the
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Board of Trustees of the Florida School for the Deaf and the
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Blind to participate in the DROP beyond 60 months, or who are
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instructional personnel as defined in s. 1012.01(2)(a)-(d) in
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grades K-12 and who have received authorization by the district
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school superintendent to participate in the DROP beyond 60
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calendar months, 96 calendar months immediately following the
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effective date of the DROP, except a member of the Special Risk
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Class who has reached normal retirement date prior to the
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effective date of the DROP and whose total accrued value exceeds
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75 percent of average final compensation as of his or her
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effective date of retirement shall be eligible to participate in
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the DROP for no more than 36 calendar months immediately
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following the effective date of the DROP.
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2. Upon deciding to participate in the DROP, the member
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shall submit, on forms required by the division:
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a. A written election to participate in the DROP;
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b. Selection of the DROP participation and termination
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dates, which satisfy the limitations stated in paragraph (a) and
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subparagraph 1. Such termination date shall be in a binding
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letter of resignation with the employer, establishing a deferred
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termination date. The member may change the termination date
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within the limitations of subparagraph 1., but only with the
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written approval of his or her employer;
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c. A properly completed DROP application for service
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retirement as provided in this section; and
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d. Any other information required by the division.
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3. The DROP participant shall be a retiree under the
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Florida Retirement System for all purposes, except for paragraph
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121.122. However, participation in the DROP does not alter the
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participant's employment status and such employee shall not be
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deemed retired from employment until his or her deferred
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resignation is effective and termination occurs as provided in s.
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121.021(39).
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4. Elected officers shall be eligible to participate in the
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DROP subject to the following:
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a.(I) An elected officer who reaches normal retirement date
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during a term of office may defer the election to participate in
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the DROP to any consecutively elected until the next succeeding
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term, or part thereof, in that office. Such elected officer who
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exercises this option may participate in the DROP for up to 60
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calendar months or a period of no longer than such succeeding
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term of office, whichever is less.
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(II) An elected officer whose original opportunity to elect
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to participate in DROP occurred subject to general law requiring
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termination of employment following a DROP period, and who has
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been continuously elected to that same office to date, shall have
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the option, during a 45-day period commencing July 1, 2008, to
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elect to participate in the DROP as provided in sub-sub-
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subparagraph (I).
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b. An elected or a nonelected participant may run for a
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term of office while participating in DROP and, if elected,
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extend the DROP termination date accordingly, except, however, if
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such additional term of office exceeds the 60-month limitation
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established in subparagraph 1., and the officer does not resign
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from office within such 60-month limitation, the retirement and
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the participant's DROP shall be null and void as provided in sub-
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subparagraph (c)5.d.
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c. An elected officer who is dually employed and elects to
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participate in DROP shall be required to satisfy the definition
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of termination within the 60-month or, with respect to members
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who are instructional personnel employed by the Florida School
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for the Deaf and the Blind and who have received authorization by
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the Board of Trustees of the Florida School for the Deaf and the
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Blind to participate in the DROP beyond 60 months, or who are
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instructional personnel as defined in s. 1012.01(2)(a)-(d) in
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grades K-12 and who have received authorization by the district
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school superintendent to participate in the DROP beyond 60
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months, the 96-month limitation period as provided in
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subparagraph 1. for the nonelected position and may continue
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employment as an elected officer as provided in s. 121.053. The
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elected officer will be enrolled as a renewed member in the
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Elected Officers' Class or the Regular Class, as provided in ss.
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termination of employment in the nonelected position and
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termination of DROP. Distribution of the DROP benefits shall be
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made as provided in paragraph (c).
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Section 2. This act shall take effect July 1, 2008.
CODING: Words stricken are deletions; words underlined are additions.