CODING: Words stricken are deletions; words underlined are additions.
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
CHAMBER ACTION
Senate House
.
.
1 .
.
2 .
.
3 .
.
4
5 ORIGINAL STAMP BELOW
6
7
8
9
10
11 Representative(s) Crady offered the following:
12
13 Amendment (with title amendment)
14 On page ....33...., between line(s) ...21 and
15 22......., of the bill
16
17 insert:
18 Section 18. Effective July 1, 1998, subsection (39) of
19 section 121.021, Florida Statutes, 1996 Supplement, is
20 amended, and subsection (43) is added to said section, to
21 read:
22 121.021 Definitions.--The following words and phrases
23 as used in this chapter have the respective meanings set forth
24 unless a different meaning is plainly required by the context:
25 (39)(a) "Termination" occurs, except as provided in
26 paragraph (b), when a member ceases all employment
27 relationships with employers under this system, as defined in
28 subsection (10), but in the event a member should be employed
29 by any such employer within the next calendar month,
30 termination shall be deemed not to have occurred. A leave of
31 absence shall constitute a continuation of the employment
1
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 relationship, except that a leave of absence without pay due
2 to disability may constitute termination for a member, if such
3 member makes application for and is approved for disability
4 retirement in accordance with s. 121.091(4). The division may
5 require other evidence of termination as it deems necessary.
6 (b) "Termination" for a member electing to participate
7 under the Deferred Retirement Option Program occurs when the
8 Deferred Retirement Option Program participant ceases all
9 employment relationships with employers under this system in
10 accordance with s. 121.091(13), but in the event the Deferred
11 Retirement Option Program participant should be employed by
12 any such employer within the next calendar month, termination
13 will be deemed not to have occurred, except as provided in s.
14 121.091(13)(b)5.b. A leave of absence shall constitute a
15 continuation of the employment relationship.
16 (43) "DROP participant" means any member who elects to
17 retire and participate in the Deferred Retirement Option
18 Program as provided in s. 121.091(13).
19 Section 19. Effective July 1, 1998, section 121.091,
20 Florida Statutes, 1996 Supplement, is amended to read:
21 121.091 Benefits payable under the system.--No
22 benefits shall be paid under this section unless the member
23 has terminated employment as provided in s. 121.021(39)(a) or
24 begun participation in the Deferred Retirement Option Program
25 as provided in subsection (13), and a proper application has
26 been filed in the manner prescribed by the division.
27 (1) NORMAL RETIREMENT BENEFIT.--Upon attaining his or
28 her normal retirement date, the member, upon application to
29 the administrator, shall receive a monthly benefit which shall
30 begin to accrue on the first day of the month of retirement
31 and be payable on the last day of that month and each month
2
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 thereafter during his or her lifetime. The amount of monthly
2 benefit shall be determined as the product of A and B, subject
3 to the adjustment of C, if applicable, when:
4 (a) A is 1.60 percent of the member's average monthly
5 compensation, up to normal retirement age. The first year
6 after normal retirement age, A is 1.63 percent of the member's
7 average monthly compensation. The second year after normal
8 retirement age, A is 1.65 percent of the member's average
9 monthly compensation. The third year after normal retirement
10 age, A is 1.68 percent of the member's average monthly
11 compensation. A shall not exceed 1.68 percent of the member's
12 average monthly compensation, except that, for all creditable
13 years of special risk service, A is:
14 1. Two percent of the member's average monthly
15 compensation for all creditable years prior to October 1,
16 1974;
17 2. Three percent of the member's average monthly
18 compensation for all creditable years after September 30,
19 1974, and before October 1, 1978;
20 3. Two percent of the member's average monthly
21 compensation for all creditable years after September 30,
22 1978, and before January 1, 1989;
23 4. Two and two-tenths percent of the member's average
24 monthly compensation for all creditable years after December
25 31, 1988, and before January 1, 1990;
26 5. Two and four-tenths percent of the member's average
27 monthly compensation for all creditable years after December
28 31, 1989, and before January 1, 1991;
29 6. Two and six-tenths percent of the member's average
30 monthly compensation for all creditable years after December
31 31, 1990, and before January 1, 1992;
3
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 7. Two and eight-tenths percent of the member's
2 average monthly compensation for all creditable years after
3 December 31, 1991, and before January 1, 1993; and
4 8. Three percent of the member's average monthly
5 compensation for all creditable years after December 31, 1992;
6
7 however, the normal retirement benefit, including any past or
8 additional retirement credit, may not exceed 100 percent of
9 the average final compensation;
10 (b) B is the number of the member's years and any
11 fractional part of a year of creditable service earned
12 subsequent to November 30, 1970; and
13 (c) C is the normal retirement benefit credit brought
14 forward as of November 30, 1970, by a former member of an
15 existing system. Such normal retirement benefit credit shall
16 be determined as the product of A and B when A is the
17 percentage of average final compensation which the member
18 would have been eligible to receive if the member had attained
19 his or her normal retirement date as of November 30, 1970, all
20 in accordance with the existing system under which the member
21 is covered on November 30, 1970, and B is average monthly
22 compensation as defined in s. 121.021(25). However, any
23 member of an existing retirement system who is eligible to
24 retire and who does retire, become disabled, or die prior to
25 April 15, 1971, may have his or her retirement benefits
26 calculated on the basis of the best 5 of the last 10 years of
27 service.
28 (2) BENEFITS PAYABLE FOR DUAL NORMAL RETIREMENT
29 AGES.--In the event a member accumulates retirement benefits
30 to commence at different normal retirement ages by virtue of
31 having performed duties for an employer which would entitle
4
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 him or her to benefits as both a regular member and special
2 risk member, the amount of benefits payable shall be computed
3 separately with respect to each such age and the sum of such
4 computed amounts shall be paid as provided in this section.
5 (3) EARLY RETIREMENT BENEFIT.--Upon retirement on his
6 or her early retirement date, the member shall receive an
7 immediate monthly benefit which shall begin to accrue on the
8 first day of the month of the retirement date and be payable
9 on the last day of that month and each month thereafter during
10 his or her lifetime. The amount of each monthly payment shall
11 be computed in the same manner as for a normal retirement
12 benefit, in accordance with subsection (1), but based on
13 average monthly compensation and creditable service as of the
14 member's early retirement date. The benefit so computed shall
15 be reduced by five-twelfths of 1 percent for each complete
16 month by which the early retirement precedes the normal
17 retirement date of age 62 for a regular member or a member of
18 the Elected State and County Officers' Class, and age 55 for a
19 special risk member or age 52 if a special risk member has
20 completed 25 years of creditable service in accordance with s.
21 121.021(29)(c)3. However, if the employment of a member is
22 terminated by reason of death subsequent to the completion of
23 20 years of creditable service, the monthly benefit payable to
24 the member's beneficiary shall be calculated in accordance
25 with subsection (1), but based on average monthly compensation
26 and creditable service as of the date of death. The benefit
27 so computed shall be reduced by five-twelfths of 1 percent for
28 each complete month by which death precedes the normal
29 retirement date specified above or the date on which the
30 member would have attained 30 years of creditable service had
31 he or she survived and continued his or her employment,
5
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 whichever provides a higher benefit.
2 (4) DISABILITY RETIREMENT BENEFIT.--
3 (a) Disability retirement date.--A member who becomes
4 totally and permanently disabled, as defined in paragraph (b),
5 after completing 5 years of creditable service, or a member
6 who becomes totally and permanently disabled in the line of
7 duty regardless of service, shall be entitled to a monthly
8 disability benefit; except that any member with less than 5
9 years of creditable service on July 1, 1980, or any person who
10 becomes a member of the Florida Retirement System on or after
11 such date must have completed 10 years of creditable service
12 prior to becoming totally and permanently disabled in order to
13 receive disability retirement benefits for any disability
14 which occurs other than in the line of duty. But in the event
15 that any member employed on July 1, 1980, with less than 5
16 years of creditable service as of that date, becomes totally
17 and permanently disabled after completing 5 years of
18 creditable service and is found not to have attained fully
19 insured status for benefits under the federal Social Security
20 Act, such member shall be entitled to a monthly disability
21 benefit. The disability retirement date shall be the first
22 day of the month which coincides with or next follows the date
23 the administrator approves payment of disability retirement
24 benefits to the member.
25 (b) Total and permanent disability.--A member shall be
26 considered totally and permanently disabled if, in the opinion
27 of the administrator, he or she is prevented, by reason of a
28 medically determinable physical or mental impairment, from
29 rendering useful and efficient service as an officer or
30 employee.
31 (c) Proof of disability.--The administrator, before
6
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 approving payment of any disability retirement benefit, shall
2 require proof that the member is totally and permanently
3 disabled as provided herein, which proof shall include the
4 certification of the member's total and permanent disability
5 by two licensed physicians of the state and such other
6 evidence of disability as the administrator may require,
7 including reports from vocational rehabilitation, evaluation,
8 or testing specialists who have evaluated the applicant for
9 employment.
10 (d) Disability retirement benefit.--Upon the
11 retirement of a member on his or her disability retirement
12 date, the member shall receive a monthly benefit which shall
13 begin to accrue on the first day of the month of disability
14 retirement and shall be payable on the last day of that month
15 and each month thereafter during his or her lifetime and
16 continued disability. The amount of each monthly payment shall
17 be computed in the same manner as for a normal retirement
18 benefit, in accordance with subsection (1), but based on
19 disability option actuarial equivalency tables and the average
20 monthly compensation and creditable service of the member as
21 of the disability retirement date, subject to the following
22 conditions:
23 1. If the member's disability occurred in the line of
24 duty, the monthly Option 1 benefit shall not be less than 42
25 percent of average monthly compensation as of the disability
26 retirement date; or
27 2. If the member's disability occurred other than in
28 the line of duty, the monthly Option 1 benefit shall not be
29 less than 25 percent of average monthly compensation as of the
30 disability retirement date.
31 (e) Recovery from disability.--The administrator may
7
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 require periodic reexaminations at the expense of the
2 retirement fund, and:
3 1. If the administrator finds that a member who is
4 receiving disability benefits is, at any time prior to his or
5 her normal retirement date, no longer disabled, the
6 administrator shall direct that the benefits be discontinued.
7 The decision of the administrator on this question shall be
8 final and binding.
9 2. If the member, described in subparagraph 1., who
10 recovers from such disability prior to the normal retirement
11 date does not reenter the employ of an employer and had not
12 completed 10 years of creditable service as of the disability
13 retirement date, he or she shall be entitled to the excess, if
14 any, of his or her accumulated contributions over the total
15 disability benefits received up to the date of recovery.
16 3. If the member, described in subparagraph 1., who
17 recovers from such disability prior to the normal retirement
18 date does not reenter the employ of an employer but had
19 completed 10 or more years of creditable service as of the
20 disability retirement date, he or she may elect to receive:
21 a. The excess, if any, of his or her accumulated
22 contributions over the total disability benefits received up
23 to the date of recovery, or
24 b. A deferred benefit commencing on the last day of
25 the month of the normal retirement date which shall be payable
26 on the last day of the month thereafter during his or her
27 lifetime. The amount of such monthly benefit shall be
28 computed in the same manner as for a normal retirement
29 benefit, in accordance with subsection (1), but based on
30 average monthly compensation and creditable service as of the
31 member's disability retirement date.
8
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 4. If the member recovers from disability and reenters
2 employment of an employer within 6 months after recovery, the
3 member's service will be deemed to have been continuous, but
4 the period beginning with the first month for which he or she
5 received a disability benefit payment and ending with the date
6 he or she reentered employment will not be considered as
7 creditable service for the purpose of computing benefits
8 except as provided in subparagraph 5. The term "accumulated
9 contributions" for such member wherever used in this section
10 after such recovery means the excess of a member's accumulated
11 contributions as of the disability retirement date over total
12 disability benefits received under paragraph (d).
13 5. If the member recovers from disability, has his or
14 her disability benefit terminated, reenters covered
15 employment, and is continuously employed for a minimum of 1
16 year of creditable service, he or she may claim as creditable
17 service the months during which he or she was receiving a
18 disability benefit, upon payment of the required
19 contributions. Contributions shall equal the total required
20 employee and employer contribution rate during the period the
21 retiree received retirement benefits, multiplied times his or
22 her rate of monthly compensation prior to the commencement of
23 disability retirement for each month of the period claimed,
24 plus 4 percent interest until July 1, 1975, and 6.5 percent
25 interest thereafter on such contributions, compounded annually
26 each June 30 to the date of payment. If the member does not
27 claim credit for all of the months he or she received
28 disability benefits, the months claimed must be the most
29 recent months of retirement.
30 6. If after recovery of disability and reentry into
31 covered employment, the member again becomes disabled and is
9
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 again approved for disability retirement, the Option 1 monthly
2 retirement benefit shall not be less than the Option 1 monthly
3 benefit calculated at the time of the previous disability,
4 plus any cost of living increases up to the time the
5 disability benefit was terminated upon his or her reentry into
6 covered employment.
7 (f) Nonadmissible causes of disability.--A member
8 shall not be entitled to receive any disability retirement
9 benefit if the disability is a result of any of the following:
10 1. Injury or disease sustained by the member while
11 willfully participating in a riot, civil insurrection, or
12 other act of violence or while committing a felony;
13 2. Injury or disease sustained by the member after his
14 or her employment has terminated; or
15 3. Intentional, self-inflicted injury.
16 (g) Disability retirement of justice or judge by order
17 of Supreme Court.--
18 1. If a member is a justice of the Supreme Court,
19 judge of a district court of appeal, circuit judge, or judge
20 of a county court who has served for 10 years or more as an
21 elected constitutional judicial officer, including service as
22 a judicial officer in any court abolished pursuant to Art. V
23 of the State Constitution, and who is retired for disability
24 by order of the Supreme Court upon recommendation of the
25 Judicial Qualifications Commission pursuant to the provisions
26 of Art. V of the State Constitution, the member's Option 1
27 monthly benefit as provided in subparagraph (6)(a)1. shall not
28 be less than two-thirds of his or her monthly compensation as
29 of the member's disability retirement date. Such a member may
30 alternatively elect to receive a disability retirement benefit
31 under any other option as provided in paragraph (6)(a).
10
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 2. Should any justice or judge who is a member of the
2 Florida Retirement System be retired for disability by order
3 of the Supreme Court upon recommendation of the Judicial
4 Qualifications Commission pursuant to the provisions of Art. V
5 of the State Constitution, then all contributions to his or
6 her account and all contributions made on his or her behalf by
7 the employer shall be transferred to and deposited in the
8 General Revenue Fund of the state, and there is hereby
9 appropriated annually out of the General Revenue Fund, to be
10 paid into the Florida Retirement System Fund, an amount
11 necessary to pay the benefits of all justices and judges
12 retired from the Florida Retirement System pursuant to Art. V
13 of the State Constitution.
14 (5) TERMINATION BENEFITS.--
15 (a) A member whose employment is terminated for any
16 reason other than death or retirement prior to the completion
17 of 10 years of creditable service shall be entitled to the
18 return of his or her accumulated contributions as of the date
19 of termination.
20 (b) A member whose employment is terminated for any
21 reason other than death or retirement after the completion of
22 10 years of creditable service may elect to receive a deferred
23 monthly benefit which shall begin to accrue on the first day
24 of the month of normal or early retirement and shall be
25 payable on the last day of that month and each month
26 thereafter during his or her lifetime. The amount of monthly
27 benefit shall be computed in the same manner as for a normal
28 retirement benefit in accordance with subsection (1) or early
29 retirement benefit in accordance with s. 121.021(30), but
30 based on average monthly compensation and creditable service
31 as of the date of termination.
11
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 (c) In lieu of the deferred monthly benefit provided
2 in paragraph (b), the terminated member may elect to receive a
3 lump-sum amount equal to his or her accumulated contributions
4 as of the date of termination.
5 (d) If any retired member dies without having received
6 in benefit payments an amount equal to his or her accumulated
7 contributions, there shall be payable to his or her designated
8 beneficiary an amount equal to the excess, if any, of the
9 member's accumulated contributions over the total monthly
10 payments made to the member prior to the date of death.
11 (e) A member shall be deemed a terminated member when
12 termination of employment has occurred as provided in s.
13 121.021(39).
14 (f) Any member who has been found guilty by a verdict
15 of a jury, or by the court trying the case without a jury, of
16 committing, aiding, or abetting any embezzlement or theft from
17 his or her employer, bribery in connection with the
18 employment, or other felony specified in chapter 838, except
19 ss. 838.15 and 838.16, committed prior to retirement, or who
20 has entered a plea of guilty or of nolo contendere to such
21 crime, or any member whose employment is terminated by reason
22 of the member's admitted commitment, aiding, or abetting of an
23 embezzlement or theft from his or her employer, bribery, or
24 other felony specified in chapter 838, except ss. 838.15 and
25 838.16, shall forfeit all rights and benefits under this
26 chapter, except the return of his or her accumulated
27 contributions as of the date of termination.
28 (g) Any elected official who is convicted by the
29 Senate of an impeachable offense shall forfeit all rights and
30 benefits under this chapter, except the return of his or her
31 accumulated contributions as of the date of the conviction.
12
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 (h) Any member who, prior to retirement, is adjudged
2 by a court of competent jurisdiction to have violated any
3 state law against strikes by public employees, or who has been
4 found guilty by such court of violating any state law
5 prohibiting strikes by public employees, shall forfeit all
6 rights and benefits under this chapter, except the return of
7 his or her accumulated contributions as of the date of the
8 conviction.
9 (6) OPTIONAL FORMS OF RETIREMENT BENEFITS AND
10 DISABILITY RETIREMENT BENEFITS.--
11 (a) Prior to the receipt of the first monthly
12 retirement payment, a member shall elect to receive the
13 retirement benefits to which he or she is entitled under
14 subsection (1), subsection (2), subsection (3), or subsection
15 (4) in accordance with one of the following options:
16 1. The maximum retirement benefit payable to the
17 member during his or her lifetime.
18 2. A decreased retirement benefit payable to the
19 member during his or her lifetime and, in the event of his or
20 her death within a period of 10 years after retirement, the
21 same monthly amount payable for the balance of such 10-year
22 period to his or her beneficiary or, in case the beneficiary
23 is deceased, in accordance with subsection (8) as though no
24 beneficiary had been named.
25 3. A decreased retirement benefit payable during the
26 joint lifetime of both the member and his or her joint
27 annuitant and which, after the death of either, shall continue
28 during the lifetime of the survivor in the same amount,
29 subject to the provisions of subsection (12).
30 4. A decreased retirement benefit payable during the
31 joint lifetime of the member and his or her joint annuitant
13
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 and which, after the death of either, shall continue during
2 the lifetime of the survivor in an amount equal to 66 2/3
3 percent of the amount that was payable during the joint
4 lifetime of the member and his or her joint annuitant, subject
5 to the provisions of subsection (12).
6
7 The spouse of any member who elects to receive the benefit
8 provided under subparagraph 1. or subparagraph 2. shall be
9 notified of and shall acknowledge any such election.
10 (b) The benefit payable under any option stated above
11 shall be the actuarial equivalent, based on tables adopted by
12 the administrator for this purpose, of the amount to which the
13 member was otherwise entitled.
14 (c) A member who elects the option in subparagraph
15 (a)2. shall, in accordance with subsection (8), designate one
16 or more persons to receive the benefits payable in the event
17 of his or her death. Such persons shall be the beneficiaries
18 of the member. The member may also designate one or more
19 contingent beneficiaries to receive any benefits remaining
20 upon the death of the primary beneficiary.
21 (d) A member who elects the option in subparagraph
22 (a)3. or subparagraph (a)4. shall, on a form provided for that
23 purpose, designate a joint annuitant to receive the benefits
24 which continue to be payable upon the death of the member.
25 After benefits have commenced under the option in subparagraph
26 (a)3. or subparagraph (a)4., a retired member may change his
27 or her designation of a joint annuitant only twice. If such a
28 retired member desires to change his or her designation of a
29 joint annuitant, he or she shall file with the division a
30 notarized "change of joint annuitant" form and shall notify
31 the former joint annuitant in writing of such change. Upon
14
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 receipt of a completed change of joint annuitant form, the
2 division shall adjust the member's monthly benefit by the
3 application of actuarial tables and calculations developed to
4 ensure that the benefit paid is the actuarial equivalent of
5 the present value of the member's current benefit. The
6 consent of a retired member's first designated joint annuitant
7 to any such change shall not be required.
8 (e) The election of an option shall be null and void
9 if the member dies before the effective date of retirement.
10 (f) A member who elects to receive benefits under the
11 option in subparagraph (a)3. may designate one or more
12 qualified persons, either a spouse or other dependent, as his
13 or her joint annuitant to receive the benefits after the
14 member's death in whatever proportion he or she so assigns to
15 each person named as joint annuitant. The division shall adopt
16 appropriate actuarial tables and calculations necessary to
17 ensure that the benefit paid is the actuarial equivalent of
18 the benefit to which the member is otherwise entitled under
19 the option in subparagraph (a)1.
20 (g) Upon the death of a retired member or beneficiary
21 receiving monthly benefits under this chapter, the monthly
22 benefits shall be paid through the last day of the month of
23 death and shall terminate, or be adjusted, if applicable, as
24 of that date in accordance with the optional form of benefit
25 selected at the time of retirement.
26 (h) The option selected or determined for payment of
27 benefits as provided in this section shall be final and
28 irrevocable at the time a benefit payment is cashed or
29 deposited or credited to the Deferred Retirement Option
30 Program as provided in subsection (13).
31 (7) DEATH BENEFITS.--
15
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 (a) If the employment of a member is terminated by
2 reason of his or her death prior to the completion of 10 years
3 of creditable service, there shall be payable to his or her
4 designated beneficiary the member's accumulated contributions.
5 (b) If the employment of an active member who may or
6 may not have applied for retirement is terminated by reason of
7 his or her death subsequent to the completion of 10 years of
8 creditable service and prior to his or her effective date of
9 retirement, if established, it shall be assumed that the
10 member retired as of the date of death in accordance with
11 subsection (1) if eligible for normal retirement benefits,
12 subsection (2) if eligible for benefits payable for dual
13 normal retirement, or subsection (3) if eligible for early
14 retirement benefits. Benefits payable to the designated
15 beneficiary shall be as follows:
16 1. For a beneficiary who qualifies as a joint
17 annuitant, the optional form of payment provided in accordance
18 with subparagraph (6)(a)3. shall be paid for the joint
19 annuitant's lifetime.
20 2. For a beneficiary who does not qualify as a joint
21 annuitant, no continuing monthly benefit shall be paid and the
22 beneficiary shall be entitled only to the return of the
23 member's personal contributions.
24 (c) If a retiring member dies on or after the
25 effective date of retirement, but prior to a benefit payment
26 being cashed or deposited or credited to the Deferred
27 Retirement Option Program, benefits shall be paid as follows:
28 1. For a designated beneficiary who qualifies as a
29 joint annuitant, benefits shall be paid in the optional form
30 of payment provided in subparagraph (6)(a)3. for the joint
31 annuitant's lifetime or, if the member chose the optional form
16
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 of payment provided in subparagraph (6)(a)2., the joint
2 annuitant may select the form provided in either subparagraph
3 (6)(a)2. or subparagraph (6)(a)3.
4 2. For a designated beneficiary who does not qualify
5 as a joint annuitant, any benefits payable shall be paid as
6 provided in the option selected by the member; or if the
7 member has not selected an option, benefits shall be paid in
8 the optional form of payment provided in subparagraph (6)(a)1.
9 (d)1. Notwithstanding any other provision in this
10 chapter to the contrary, with the exception of the Deferred
11 Retirement Option Program as provided in subsection (13):
12 1. The surviving spouse of any member killed in the
13 line of duty may receive a monthly pension equal to one-half
14 of the monthly salary being received by the member at the time
15 of death for the rest of the surviving spouse's lifetime.
16 Benefits provided by this paragraph shall supersede any other
17 distribution that may have been provided by the member's
18 designation of beneficiary.
19 2. If the surviving spouse of a member killed in the
20 line of duty dies, the monthly payments which would have been
21 payable to such surviving spouse had such surviving spouse
22 lived shall be paid for the use and benefit of such member's
23 child or children under 18 years of age and unmarried until
24 the 18th birthday of the member's youngest child.
25 3. If a member killed in the line of duty leaves no
26 surviving spouse but is survived by a child or children under
27 18 years of age, the benefits provided by subparagraph 1.,
28 normally payable to a surviving spouse, shall be paid for the
29 use and benefit of such member's child or children under 18
30 years of age and unmarried until the 18th birthday of the
31 member's youngest child.
17
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 4. The surviving spouse of a member whose benefit
2 terminated because of remarriage shall have the benefit
3 reinstated beginning July 1, 1993, at an amount that would
4 have been payable had the benefit not been terminated.
5 (e) The surviving spouse or other dependent of any
6 member, except a member who participated in the Deferred
7 Retirement Option Program, whose employment is terminated by
8 death shall, upon application to the administrator, be
9 permitted to pay the required contributions for any service
10 performed by the member which could have been claimed by the
11 member at the time of his or her death. Such service shall be
12 added to the creditable service of the member and shall be
13 used in the calculation of any benefits which may be payable
14 to the surviving spouse or other surviving dependent.
15 (f) Notwithstanding any other provisions in this
16 chapter to the contrary, if any member who has accumulated at
17 least 10 years of creditable service dies and the surviving
18 spouse receives a refund of the accumulated contributions made
19 to the retirement trust fund, such spouse may pay to the
20 Division of Retirement an amount equal to the sum of the
21 amount of the deceased member's accumulated contributions
22 previously refunded plus interest at 4 percent compounded
23 annually each June 30 from the date of refund until July 1,
24 1975, and 6.5 percent interest compounded annually thereafter,
25 until full payment is made, and receive the monthly retirement
26 benefit as provided in paragraph (b).
27 (g) The designated beneficiary who is the surviving
28 spouse or other dependent of a member whose employment is
29 terminated by death subsequent to the completion of 10 years
30 of creditable service but prior to actual retirement may elect
31 to receive a deferred monthly benefit as if the member had
18
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 lived and had elected a deferred monthly benefit, as provided
2 in paragraph (5)(b), calculated on the basis of the average
3 final compensation and creditable service of the member at his
4 or her death and the age the member would have attained on the
5 commencement date of the deferred benefit elected by the
6 beneficiary, paid in accordance with option 3 of paragraph
7 (6)(a).
8 (8) DESIGNATION OF BENEFICIARIES.--Each member may, on
9 a form provided for that purpose, signed and filed with the
10 division, designate a choice of one or more persons, named
11 sequentially or jointly, as his or her beneficiary who shall
12 receive the benefits, if any, which may be payable in the
13 event of the member's death pursuant to the provisions of this
14 chapter. If no beneficiary is named in the manner provided
15 above, or if no beneficiary designated by the member survives
16 the member, the beneficiary shall be the spouse of the
17 deceased, if living. If the member's spouse is not alive at
18 his or her death, the beneficiary shall be the living children
19 of the member. If no children survive, the beneficiary shall
20 be the member's father or mother, if living; otherwise, the
21 beneficiary shall be the member's estate. The beneficiary
22 most recently designated by a member on a form or letter filed
23 with the division shall be the beneficiary entitled to any
24 benefits payable at the time of the member's death, except
25 benefits shall be paid as provided in paragraph (7)(d) when
26 death occurs in the line of duty.
27 (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
28 (a) Any person who is retired under this chapter,
29 except under the disability retirement provisions of
30 subsection (4), may be employed by an employer that does not
31 participate in a state-administered retirement system and may
19
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 receive compensation from that employment without limiting or
2 restricting in any way the retirement benefits payable to that
3 person.
4 (b)1. Any person who is retired under this chapter,
5 except under the disability retirement provisions of
6 subsection (4), may be reemployed by any private or public
7 employer after retirement and receive retirement benefits and
8 compensation from his or her employer without any limitations,
9 except that a person may not receive both a salary from
10 reemployment with any agency participating in the Florida
11 Retirement System and retirement benefits under this chapter
12 for a period of 12 months immediately subsequent to the date
13 of retirement. However, a DROP participant shall continue
14 employment and receive a salary during the period of
15 participation in the Deferred Retirement Option Program, as
16 provided in subsection (13).
17 2. Any person to whom the limitation in subparagraph
18 1. applies who violates such reemployment limitation and who
19 is reemployed with any agency participating in the Florida
20 Retirement System before completion of the 12-month limitation
21 period shall give timely notice of this fact in writing to the
22 employer and to the division and shall have his or her
23 retirement benefits suspended for the balance of the 12-month
24 limitation period. Any person employed in violation of this
25 paragraph and any employing agency which knowingly employs or
26 appoints such person without notifying the Division of
27 Retirement to suspend retirement benefits shall be jointly and
28 severally liable for reimbursement to the retirement trust
29 fund of any benefits paid during the reemployment limitation
30 period. To avoid liability, such employing agency shall have
31 a written statement from the retiree that he or she is not
20
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 retired from a state-administered retirement system. Any
2 retirement benefits received while reemployed during this
3 reemployment limitation period shall be repaid to the
4 retirement trust fund, and retirement benefits shall remain
5 suspended until such repayment has been made. Benefits
6 suspended beyond the reemployment limitation shall apply
7 toward repayment of benefits received in violation of the
8 reemployment limitation.
9 3. A district school board may reemploy a retired
10 member as a substitute or hourly teacher, teacher aide,
11 transportation assistant, bus driver, or food service worker
12 on a noncontractual basis after he or she has been retired for
13 1 calendar month, in accordance with s. 121.021(39). Any
14 retired member who is reemployed within 1 calendar month after
15 retirement shall void his or her application for retirement
16 benefits. District school boards reemploying such teachers,
17 teacher aides, transportation assistants, bus drivers, or food
18 service workers are subject to the retirement contribution
19 required by subparagraph 7. Reemployment of a retired member
20 as a substitute or hourly teacher, teacher aide,
21 transportation assistant, bus driver, or food service worker
22 is limited to 780 hours during the first 12 months of his or
23 her retirement. Any retired member reemployed for more than
24 780 hours during his or her first 12 months of retirement
25 shall give timely notice in writing to the employer and to the
26 division of the date he or she will exceed the limitation.
27 The division shall suspend his or her retirement benefits for
28 the remainder of the first 12 months of retirement. Any
29 person employed in violation of this subparagraph and any
30 employing agency which knowingly employs or appoints such
31 person without notifying the Division of Retirement to suspend
21
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 retirement benefits shall be jointly and severally liable for
2 reimbursement to the retirement trust fund of any benefits
3 paid during the reemployment limitation period. To avoid
4 liability, such employing agency shall have a written
5 statement from the retiree that he or she is not retired from
6 a state-administered retirement system. Any retirement
7 benefits received by a retired member while reemployed in
8 excess of 780 hours during the first 12 months of retirement
9 shall be repaid to the Retirement System Trust Fund, and his
10 or her retirement benefits shall remain suspended until
11 repayment is made. Benefits suspended beyond the end of the
12 retired member's first 12 months of retirement shall apply
13 toward repayment of benefits received in violation of the
14 780-hour reemployment limitation.
15 4. A community college board of trustees may reemploy
16 a retired member as an adjunct instructor, that is, an
17 instructor who is noncontractual and part-time, or as a
18 participant in a phased retirement program within the State
19 Community College System, after he or she has been retired for
20 1 calendar month, in accordance with s. 121.021(39). Any
21 retired member who is reemployed within 1 calendar month after
22 retirement shall void his or her application for retirement
23 benefits. Boards of trustees reemploying such instructors are
24 subject to the retirement contribution required in
25 subparagraph 7. A retired member may be reemployed as an
26 adjunct instructor for no more than 780 hours during the first
27 12 months of retirement. Any retired member reemployed for
28 more than 780 hours during the first 12 months of retirement
29 shall give timely notice in writing to the employer and to the
30 division of the date he or she will exceed the limitation.
31 The division shall suspend his or her retirement benefits for
22
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 the remainder of the first 12 months of retirement. Any
2 person employed in violation of this subparagraph and any
3 employing agency which knowingly employs or appoints such
4 person without notifying the Division of Retirement to suspend
5 retirement benefits shall be jointly and severally liable for
6 reimbursement to the retirement trust fund of any benefits
7 paid during the reemployment limitation period. To avoid
8 liability, such employing agency shall have a written
9 statement from the retiree that he or she is not retired from
10 a state-administered retirement system. Any retirement
11 benefits received by a retired member while reemployed in
12 excess of 780 hours during the first 12 months of retirement
13 shall be repaid to the Retirement System Trust Fund, and
14 retirement benefits shall remain suspended until repayment is
15 made. Benefits suspended beyond the end of the retired
16 member's first 12 months of retirement shall apply toward
17 repayment of benefits received in violation of the 780-hour
18 reemployment limitation.
19 5. The State University System may reemploy a retired
20 member as an adjunct faculty member or as a participant in a
21 phased retirement program within the State University System
22 after the retired member has been retired for 1 calendar
23 month, in accordance with s. 121.021(39). Any retired member
24 who is reemployed within 1 calendar month after retirement
25 shall void his or her application for retirement benefits.
26 The State University System is subject to the retired
27 contribution required in subparagraph 7., as appropriate. A
28 retired member may be reemployed as an adjunct faculty member
29 or a participant in a phased retirement program for no more
30 than 780 hours during the first 12 months of his or her
31 retirement. Any retired member reemployed for more than 780
23
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 hours during the first 12 months of retirement shall give
2 timely notice in writing to the employer and to the division
3 of the date he or she will exceed the limitation. The
4 division shall suspend his or her retirement benefits for the
5 remainder of the first 12 months of retirement. Any person
6 employed in violation of this subparagraph and any employing
7 agency which knowingly employs or appoints such person without
8 notifying the Division of Retirement to suspend retirement
9 benefits shall be jointly and severally liable for
10 reimbursement to the retirement trust fund of any benefits
11 paid during the reemployment limitation period. To avoid
12 liability, such employing agency shall have a written
13 statement from the retiree that he or she is not retired from
14 a state-administered retirement system. Any retirement
15 benefits received by a retired member while reemployed in
16 excess of 780 hours during the first 12 months of retirement
17 shall be repaid to the Retirement System Trust Fund, and
18 retirement benefits shall remain suspended until repayment is
19 made. Benefits suspended beyond the end of the retired
20 member's first 12 months of retirement shall apply toward
21 repayment of benefits received in violation of the 780-hour
22 reemployment limitation.
23 6. The Board of Trustees of the Florida School for the
24 Deaf and the Blind may reemploy a retired member as a
25 substitute teacher, substitute residential instructor, or
26 substitute nurse on a noncontractual basis after he or she has
27 been retired for 1 calendar month, in accordance with s.
28 121.021(39). Any retired member who is reemployed within 1
29 calendar month after retirement shall void his or her
30 application for retirement benefits. The Board of Trustees of
31 the Florida School for the Deaf and the Blind reemploying such
24
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 teachers, residential instructors, or nurses is subject to the
2 retirement contribution required by subparagraph 7.
3 Reemployment of a retired member as a substitute teacher,
4 substitute residential instructor, or substitute nurse is
5 limited to 780 hours during the first 12 months of his or her
6 retirement. Any retired member reemployed for more than 780
7 hours during the first 12 months of retirement shall give
8 timely notice in writing to the employer and to the division
9 of the date he or she will exceed the limitation. The division
10 shall suspend his or her retirement benefits for the remainder
11 of the first 12 months of retirement. Any person employed in
12 violation of this subparagraph and any employing agency which
13 knowingly employs or appoints such person without notifying
14 the Division of Retirement to suspend retirement benefits
15 shall be jointly and severally liable for reimbursement to the
16 retirement trust fund of any benefits paid during the
17 reemployment limitation period. To avoid liability, such
18 employing agency shall have a written statement from the
19 retiree that he or she is not retired from a
20 state-administered retirement system. Any retirement benefits
21 received by a retired member while reemployed in excess of 780
22 hours during the first 12 months of retirement shall be repaid
23 to the Retirement System Trust Fund, and his or her retirement
24 benefits shall remain suspended until payment is made.
25 Benefits suspended beyond the end of the retired member's
26 first 12 months of retirement shall apply toward repayment of
27 benefits received in violation of the 780-hour reemployment
28 limitation.
29 7. The employment by an employer of any retiree or
30 DROP participant of any state-administered retirement system
31 shall have no effect on the average final compensation or
25
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 years of creditable service of the retiree or DROP
2 participant. Prior to July 1, 1991, upon employment of any
3 person, other than an elected officer as provided in s.
4 121.053, who has been retired under any state-administered
5 retirement program, the employer shall pay retirement
6 contributions in an amount equal to the unfunded actuarial
7 accrued liability portion of the employer contribution which
8 would be required for regular members of the Florida
9 Retirement System. Effective July 1, 1991, contributions shall
10 be made as provided in s. 121.122 for retirees with renewed
11 membership or subsection (13) for DROP participants.
12 8. Any person who has previously retired and who is
13 holding an elective public office or an appointment to an
14 elective public office eligible for the Elected State and
15 County Officers' Class on or after July 1, 1990, shall be
16 enrolled in the Florida Retirement System as provided in s.
17 121.053(1)(b) or, if holding an elective public office that
18 does not qualify for the Elected State and County Officers'
19 Class on or after July 1, 1991, shall be enrolled in the
20 Florida Retirement System as provided in s. 121.122, and shall
21 continue to receive retirement benefits as well as
22 compensation for the elected officer's service for as long as
23 he or she remains in elective office. However, any retired
24 member who served in an elective office prior to July 1, 1990,
25 suspended his or her retirement benefit, and had his or her
26 Florida Retirement System membership reinstated shall, upon
27 retirement from such office, have his or her retirement
28 benefit recalculated to include the additional service and
29 compensation earned.
30 9. Any person who is holding an elective public office
31 which is covered by the Florida Retirement System and who is
26
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 concurrently employed in nonelected covered employment may
2 elect to retire while continuing employment in the elective
3 public office, provided that he or she shall be required to
4 terminate his or her nonelected covered employment. Any
5 person who exercises this election shall receive his or her
6 retirement benefits in addition to the compensation of the
7 elective office without regard to the time limitations
8 otherwise provided in this subsection. No person who seeks to
9 exercise the provisions of this subparagraph, as the same
10 existed prior to May 3, 1984, shall be deemed to be retired
11 under those provisions, unless such person is eligible to
12 retire under the provisions of this subparagraph, as amended
13 by chapter 84-11, Laws of Florida.
14 10. The limitations of this paragraph apply to
15 reemployment in any capacity with an "employer" as defined in
16 s. 121.021(10), irrespective of the category of funds from
17 which the person is compensated.
18 (10) FUTURE BENEFITS BASED ON ACTUARIAL DATA.--It is
19 the intent of the Legislature that future benefit increases
20 enacted into law in this chapter shall be financed
21 concurrently by increased contributions or other adequate
22 funding, and such funding shall be based on sound actuarial
23 data as developed by the actuary or state retirement actuary,
24 as provided in ss. 121.021(6) and 121.192.
25 (11) A member who becomes eligible to retire and has
26 accumulated the maximum benefit of 100 percent of average
27 final compensation may continue in active service, and, if
28 upon the member's retirement the member elects to receive a
29 retirement compensation pursuant to subsection (2), subsection
30 (6), or subsection (7), the actuarial equivalent percentage
31 factor applicable to the age of such member at the time the
27
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 member reached the maximum benefit and to the age, at that
2 time, of the member's spouse shall determine the amount of
3 benefits to be paid.
4 (12) SPECIAL PROVISIONS FOR PAYMENT OF CERTAIN
5 SURVIVOR BENEFITS.--Notwithstanding any provision of this
6 chapter to the contrary, for members with an effective date of
7 retirement, or date of death if prior to retirement, on or
8 after January 1, 1996, the named joint annuitant, as defined
9 in s. 121.021(28)(b), who is eligible to receive benefits
10 under subparagraph (6)(a)3. or subparagraph (6)(a)4., shall
11 receive the maximum monthly retirement benefit that would have
12 been payable to the member under subparagraph (6)(a)1.;
13 however, payment of such benefit shall cease the month the
14 joint annuitant attains age 25 unless such joint annuitant is
15 disabled and incapable of self-support, in which case,
16 benefits shall cease when the joint annuitant is no longer
17 disabled. The administrator may require proof of disability
18 or continued disability in the same manner as is provided for
19 a member seeking or receiving a disability retirement benefit
20 under subsection (4).
21 (13) DEFERRED RETIREMENT OPTION PROGRAM.--In general,
22 and subject to the provisions of this section, the Deferred
23 Retirement Option Program, hereinafter referred to as the
24 DROP, is a program under which an eligible member of the
25 Florida Retirement System may elect to participate, deferring
26 receipt of retirement benefits while continuing employment
27 with his or her Florida Retirement System employer. The
28 deferred monthly benefits shall accrue in the System Trust
29 Fund on behalf of the participant, plus interest compounded
30 monthly, for the specified period of the DROP participation,
31 as provided in paragraph (c). Upon termination of employment,
28
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 the participant shall receive the total DROP benefits and
2 begin to receive the previously determined normal retirement
3 benefits. Employment in the DROP does not guarantee employment
4 for the specified period of DROP.
5 (a) Eligibility of member to participate in the
6 DROP.--All Florida Retirement System members are eligible to
7 elect participation in the DROP provided that:
8 1. Election to participate is made within 12 months
9 following the date on which the member first reaches normal
10 retirement date or age, or for a member who first reached
11 normal retirement date or age prior to the effective date of
12 this section, election to participate is made within 12 months
13 of the effective date of this section. A member who fails to
14 make an election within such 12-month limitation period shall
15 forfeit all rights to participate in the DROP. The member
16 shall advise his employer and the division in writing of the
17 date on which the DROP shall begin. Such beginning date may be
18 subsequent to the 12-month election period but must be within
19 the 60-month limitation period as provided in subparagraph
20 (b)1.
21 2. The retiring member's employer, or employers if
22 dually employed, shall acknowledge in writing to the division
23 the date the member's participation in the DROP begins and the
24 date the member's employment and DROP participation will
25 terminate.
26 3. Employment of a participant by additional Florida
27 Retirement System employers subsequent to the commencement of
28 participation in the DROP shall be permissible provided such
29 employers acknowledge in writing a DROP termination date no
30 later than the participant's existing termination date or the
31 60-month limitation period as provided in subparagraph (b)1.
29
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 (b) Participation in the DROP.--
2 1. An eligible member may elect to participate in the
3 DROP for a period not to exceed a maximum of 60 months
4 following the date on which the member first reaches normal
5 retirement age or date, including a member who first reaches
6 normal retirement age or date prior to the effective date of
7 this section. Any member who has exceeded the 60-month
8 limitation shall not be eligible to participate in the DROP.
9 2. Upon deciding to participate in the DROP, the
10 member shall submit, on forms required by the division:
11 a. A written election to participate in the DROP;
12 b. Selection of the DROP participation and termination
13 dates, which satisfy the limitations stated in paragraph (a)
14 and subparagraph 1. Such termination date shall be in a
15 binding letter of resignation with the employer, establishing
16 a deferred termination date. The member may change the
17 termination date within the limitations of subparagraph 1.,
18 but only with the written approval of his employer;
19 c. A properly completed DROP application for service
20 retirement as provided in this section; and
21 d. Any other information required by the division.
22 3. The DROP participant shall be a retiree under the
23 Florida Retirement System for all purposes, except for
24 paragraph (5)(f) and subsection (9) and ss. 112.3173, 112.363,
25 121.053, and 121.122.
26 4. A reemployed retiree with renewed membership is not
27 eligible for DROP participation.
28 5. Elected officers shall be eligible to participate
29 in the DROP subject to the following:
30 a. An elected or a nonelected participant may run for
31 a term of office while participating in DROP and, if elected,
30
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 extend the DROP termination date accordingly, except, however,
2 if such additional term of office exceeds the 60-month
3 limitation established in subparagraph 1., and the officer
4 does not resign from office within such 60-month limitation,
5 the retirement and the participant's DROP shall be null and
6 void as provided in subparagraph (c)4.d.
7 b. An elected officer who is dually employed and
8 elects to participate in DROP shall be required to satisfy the
9 definition of termination within the 60-month limitation
10 period as provided in subparagraph 1. for the nonelected
11 position and may continue employment as an elected officer as
12 provided in s. 121.053. The elected officer will be enrolled
13 as a renewed member in the Elected State and County Officers'
14 Class or the Regular Class, as provided in ss. 121.053 and
15 121.22, on the frist day of the month after termination of
16 employment in the nonelected position and termination of DROP.
17 Distribution of the DROP benefits shall be made as provided in
18 paragraph (c).
19 (c) Benefits payable under the DROP.--
20 1. Effective with the date of DROP participation, the
21 member's initial normal monthly benefit, including creditable
22 service and average final compensation, and the effective date
23 of retirement shall be fixed. Such retirement benefit, the
24 annual cost of living adjustments provided in s. 121.101, and
25 interest shall accrue monthly in the System Trust Fund. Such
26 interest shall accrue at an effective annual rate of 6.5
27 percent compounded monthly, on the prior month's accumulated
28 ending balance, up to the month of termination or death.
29 2. The effective date of retirement of a DROP
30 participant shall be the first day of the month selected by
31 the member to begin participation in the DROP.
31
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 3. Normal retirement benefits and interest thereon
2 shall continue to accrue in the DROP until the established
3 termination date of the DROP, or until the participant
4 terminates employment or dies prior to such date. Although
5 individual DROP accounts shall not be established, a separate
6 accounting of each participant's accrued benefits under the
7 DROP shall be calculated and provided to participants
8 annually.
9 4. At the conclusion of the participant's DROP, the
10 division shall distribute the participant's total accumulated
11 DROP benefits, subject to the following provisions:
12 a. The division shall receive verification by the
13 participant's employer or employers that such participant has
14 terminated employment as provided in s. 121.021(39)(b).
15 b. The terminated DROP participant or if deceased,
16 such participant's named beneficiary, shall elect on forms
17 provided by the division to receive payment of the DROP
18 benefits in accordance with one of the options listed below.
19 For a participant or beneficiary who fails to elect a method
20 of payment within 60 days of termination of the DROP, the
21 division will pay a lump sum as provided in (I).
22 (I) Lump sum.--All accrued DROP benefits, plus
23 interest, less withholding taxes remitted to the Internal
24 Revenue Service, shall be paid to the DROP participant or
25 surviving beneficiary.
26 (II) Direct rollover.--All accrued DROP benefits, plus
27 interest, shall be paid from the DROP directly to the
28 custodian of an eligible retirement plan as defined in s.
29 402(c)(8)(B) of the Internal Revenue Code. However, in the
30 case of an eligible rollover distribution to the surviving
31 spouse of a deceased participant, an eligible retirement plan
32
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 is an individual retirement account or an individual
2 retirement annuity as described in s. 402(c)(9) of the
3 Internal Revenue Code.
4 (III) Partial lump sum.--A portion of the accrued DROP
5 benefits shall be paid to the DROP participant or surviving
6 spouse, less withholding taxes remitted to the Internal
7 Revenue Service, and the remaining DROP benefits shall be
8 transferred directly to the custodian of an eligible
9 retirement plan as defined in s. 402(c)(8)(B) of the Internal
10 Revenue Code. However, in the case of an eligible rollover
11 distribution to the surviving spouse of a deceased
12 participant, an eligible retirement plan is an individual
13 retirement account or an individual retirement annuity as
14 described in s. 402(c)(9) of the Internal Revenue Code. The
15 proportions shall be specified by the DROP participant or
16 surviving beneficiary.
17 c. The form of payment selected by the DROP
18 participant or surviving beneficiary complies with the minimum
19 distribution requirements of the Internal Revenue Code and
20 payments begin no later than the date on which the participant
21 reaches age 70 years and 6 months.
22 d. For a DROP participant who fails to terminate
23 employment as defined in s. 121.021(39)(b), the member shall
24 be deemed not to be retired and the DROP election shall be
25 null and void. Florida Retirement System membership shall be
26 reestablished retroactively to the date of the commencement of
27 the DROP, and the employer shall be required to pay to the
28 System Trust Fund the difference between the DROP
29 contributions paid in paragraph (i) and the contributions
30 required for the applicable Florida Retirement System class of
31 membership during the period the member participated in the
33
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 DROP, plus 6.5 percent interest compounded annually.
2 5. The accrued benefits of any DROP participant, and
3 any contributions accumulated under such program, shall not be
4 subject to assignment, execution, attachment, or to any legal
5 process whatsoever, except for qualified domestic relations
6 orders by a court of competent jurisdiction, income deduction
7 orders as provided in s. 61.1301, and federal income tax
8 levies.
9 6. DROP participants shall not be eligible for
10 disability retirement benefits as provided in subsection (4).
11 (d) Death benefits under the DROP.--
12 1. Upon the death of a DROP participant, the named
13 beneficiary shall be entitled to apply for and receive the
14 accrued benefits in the DROP as provided in sub-subparagraph
15 (c)4.b.
16 2. The normal retirement benefit accrued to the DROP
17 during the month of a participant's death shall be the final
18 monthly benefit credited for such DROP participant.
19 3. Eligibility to participate in the DROP terminates
20 upon death of the participant. If the participant dies on or
21 after the effective date of enrollment in the DROP, but prior
22 to the first monthly benefit being credited to the DROP,
23 Florida Retirement System benefits shall be paid in accordance
24 with subparagraph (7)(c)1. or subparagraph 2.
25 4. A DROP participants' survivors shall not be
26 eligible to receive Florida Retirement System death benefits
27 as provided in paragraph (7)(d).
28 (e) Cost-of-living adjustment.--On each July 1, the
29 participants' normal retirement benefit shall be increased as
30 provided in s. 121.101.
31 (f) Retiree health insurance subsidy.--DROP
34
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 participants are not eligible to apply for the retiree health
2 insurance subsidy payments as provided in s. 112.363 until
3 such participants have terminated employment and participation
4 in the DROP.
5 (g) Renewed membership.--DROP participants shall not
6 be eligible for renewed membership in the Florida Retirement
7 System under ss. 121.053 and 121.122 until termination of
8 employment is effectuated as provided in s. 121.021(39)(b).
9 (h) Employment limitation after DROP
10 participation.--Upon satisfying the definition of termination
11 of employment as provided in s. 121.021(39)(b) DROP
12 participants shall be subject to such reemployment limitations
13 as other retirees. Reemployment restrictions applicable to
14 retirees as provided in subsection (9) shall not apply to DROP
15 participants until their employment and participation in the
16 DROP are terminated.
17 (i) Contributions.--
18 1. All employers paying the salary of a DROP
19 participant filling a regularly established position shall
20 contribute 11.56 percent of such participant's gross
21 compensation, which shall constitute the entire employer DROP
22 contribution with respect to such participant. Such
23 contributions, payable to the System Trust Fund in the same
24 manner as required in s. 121.071, shall be made as appropriate
25 for each pay period and are in addition to contributions
26 required for Social Security and the Retiree Health Insurance
27 Subsidy Trust Fund. Such employer, Social Security, and
28 health insurance subsidy contributions are not included in the
29 DROP.
30 2. The employer shall, in addition to subparagraph 1.,
31 also withhold one-half of the entire Social Security
35
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 contribution required for the participant. Contributions for
2 Social Security by each participant and each employer, in the
3 amount required for Social Security coverage as now or
4 hereafter provided by the federal Social Security Act, shall
5 be in addition to contributions specified in subparagraph 1.
6 3. All employers paying the salary of a DROP
7 participant filling a regularly established position shall
8 contribute 0.66 percent of such participant's gross
9 compensation, which shall constitute the employer's health
10 insurance subsidy contribution with respect to such
11 participant. Such contributions shall be deposited by the
12 administrator in the Retiree Health Insurance Subsidy Trust
13 Fund.
14 (j) Forfeiture of Retirement Benefits.--Nothing in
15 this section shall be construed to remove DROP participants
16 from the scope of Article II, s. 8(d), State Constitution, s.
17 112.3173, and paragraph (5)(f) of this section. DROP
18 participants who commit a specified felony offense while
19 employed will be subject to forfeiture of all retirement
20 benefits, including DROP benefits, pursuant to those
21 provisions of law.
22 (k) Administration of Program.--The division shall
23 make such rules as are necessary for the effective and
24 efficient administration of this subsection. The division
25 shall not be required to advise members of the federal tax
26 consequences of an election related to the DROP but may advise
27 members to seek independent advice.
28 Section 20. Effective July 1, 1998, and contingent
29 upon the Division of Retirement receiving a favorable
30 determination letter and a favorable private letter ruling,
31 hereinafter referred to as favorable letters, from the
36
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 Internal Revenue Service, as provided below prior to the end
2 of the 1998 legislative session. The division shall request
3 from the Internal Revenue Service, within 90 days of the
4 passage of this act:
5 (1) A written determination letter stating that the
6 Florida Retirement System, as amended to include the DROP,
7 continues to be a facially qualified plan; and
8 (2) A private letter ruling stating:
9 (a) That the Florida Retirement System, as amended to
10 include the DROP, is not a "defined contribution plan" as
11 defined in ss. 414(i) and 415(k)(1) of the Internal Revenue
12 Code, is not subject to the separate limitations contained
13 within s. 415(c) and (e) of the Internal Revenue Code, and is
14 not a "hybrid plan" as defined in s. 414(k) of the Internal
15 Revenue Code;
16 (b) That the Florida Retirement System, as amended to
17 include the DROP, is not a "cash or deferred arrangement"
18 within the meaning of s. 401(k) of the Internal Revenue Code;
19 and
20 (c) That the monthly retirement benefits paid into the
21 DROP are not deemed to be constructive receipt of income under
22 s. 402(a) of the Internal Revenue Code and shall not be
23 taxable until actual distribution to the retiree.
24
25 The division shall notify the Speaker of the House of
26 Representatives and the President of the Senate within 30 days
27 of receipt of the favorable or unfavorable letters. If no
28 favorable letters are received by July 1, 1998, sections 18,
29 19, and this section shall take effect January 1, 1999,
30 provided the division receives the favorable letters prior to
31 such date. In the event favorable letters are not received,
37
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 sections 18, 19, and this section shall not take effect.
2
3
4 ================ T I T L E A M E N D M E N T ===============
5 And the title is amended as follows:
6 On page ....3....., line(s) ....10....,
7 after the second semicolon:
8
9 and insert in lieu thereof:
10 amending s. 121.021, F.S.; redefining the term
11 "termination" for Deferred Retirement Option
12 Program participants; defining the term "DROP
13 participants"; amending s. 121.091, F.S.;
14 specifying that benefits may be payable to a
15 participant's Deferred Retirement Option
16 Program; specifying that the option selection
17 for payment of benefits shall be final at the
18 time a benefit payment is assigned to the
19 Deferred Retirement Option Program; specifying
20 death benefits applicable to Deferred
21 Retirement Option Program participants;
22 specifying employment after retirement
23 limitations applicable to Deferred Retirement
24 Option Program participants; providing overview
25 of the Deferred Retirement Option Program;
26 providing eligibility criteria; providing for
27 procedures for election of participation;
28 providing for benefits payable; providing for
29 death benefits; providing for a cost-of-living
30 adjustment; specifying that health insurance
31 subsidy payments are not payable; specifying
38
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565
HOUSE AMENDMENT
hbd-00 Bill No. CS/HB 905
Amendment No. (for drafter's use only)
1 that Deferred Retirement Option Program
2 participation does not qualify as renewed
3 membership; providing limitations on employment
4 after participation; specifying contribution
5 rates; specifying that Deferred Retirement
6 Option Program participation does not exempt
7 such participants from the forfeiture of
8 benefits under the provisions of ss. 112.3173
9 and 121.091(5), F.S; providing for
10 administration of the program; providing an
11 effective date dependent upon the Division of
12 Retirement's receipt of a favorable written
13 determination letter and a favorable private
14 letter ruling from the Internal Revenue
15 Service;
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
39
File original & 9 copies 04/14/97
hbd0002 03:20 pm 00905-0012-502565