| 1 | The Governmental Operations Committee recommends the following: |
| 2 |
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| 3 | Council/Committee Substitute |
| 4 | Remove the entire bill and insert: |
| 5 | A bill to be entitled |
| 6 | An act relating to the state retirement system; amending |
| 7 | s. 121.091, F.S.; providing that a disability of an |
| 8 | employee who works in another state full time may be |
| 9 | certified by physicians licensed in that state; correcting |
| 10 | a cross reference; amending s. 121.22, F.S.; increasing |
| 11 | the size of the State Retirement Commission from three to |
| 12 | five members; amending s. 121.24, F.S.; revising the |
| 13 | quorum requirements of the commission; amending s. 121.35, |
| 14 | F.S.; deleting the provision that requires one academic |
| 15 | year of employment or appointment in the State University |
| 16 | System for participation in the optional retirement |
| 17 | program; providing an effective date. |
| 18 |
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| 19 | Be It Enacted by the Legislature of the State of Florida: |
| 20 |
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| 21 | Section 1. Paragraph (c) of subsection (4) and paragraph |
| 22 | (b) of subsection (13) of section 121.091, Florida Statutes, are |
| 23 | amended to read: |
| 24 | 121.091 Benefits payable under the system.--Benefits may |
| 25 | not be paid under this section unless the member has terminated |
| 26 | employment as provided in s. 121.021(39)(a) or begun |
| 27 | participation in the Deferred Retirement Option Program as |
| 28 | provided in subsection (13), and a proper application has been |
| 29 | filed in the manner prescribed by the department. The department |
| 30 | may cancel an application for retirement benefits when the |
| 31 | member or beneficiary fails to timely provide the information |
| 32 | and documents required by this chapter and the department's |
| 33 | rules. The department shall adopt rules establishing procedures |
| 34 | for application for retirement benefits and for the cancellation |
| 35 | of such application when the required information or documents |
| 36 | are not received. |
| 37 | (4) DISABILITY RETIREMENT BENEFIT.-- |
| 38 | (c) Proof of disability.--The administrator, before |
| 39 | approving payment of any disability retirement benefit, shall |
| 40 | require proof that the member is totally and permanently |
| 41 | disabled as provided herein: |
| 42 | 1. Such proof shall include the certification of the |
| 43 | member's total and permanent disability by two licensed |
| 44 | physicians of the state and such other evidence of disability as |
| 45 | the administrator may require, including reports from vocational |
| 46 | rehabilitation, evaluation, or testing specialists who have |
| 47 | evaluated the applicant for employment. A member whose position |
| 48 | with an employer requires that the member work full time outside |
| 49 | this state in the United States may include certification by two |
| 50 | licensed physicians of the state where the member works. |
| 51 | 2. It must be documented that: |
| 52 | a. The member's medical condition occurred or became |
| 53 | symptomatic during the time the member was employed in an |
| 54 | employee/employer relationship with his or her employer; |
| 55 | b. The member was totally and permanently disabled at the |
| 56 | time he or she terminated covered employment; and |
| 57 | c. The member has not been employed with any other |
| 58 | employer after such termination. |
| 59 | 3. If the application is for in-line-of-duty disability, |
| 60 | in addition to the requirements of subparagraph 2., it must be |
| 61 | documented by competent medical evidence that the disability was |
| 62 | caused by a job-related illness or accident which occurred while |
| 63 | the member was in an employee/employer relationship with his or |
| 64 | her employer. |
| 65 | 4. The unavailability of an employment position that the |
| 66 | member is physically and mentally capable of performing will not |
| 67 | be considered as proof of total and permanent disability. |
| 68 | (13) DEFERRED RETIREMENT OPTION PROGRAM.--In general, and |
| 69 | subject to the provisions of this section, the Deferred |
| 70 | Retirement Option Program, hereinafter referred to as the DROP, |
| 71 | is a program under which an eligible member of the Florida |
| 72 | Retirement System may elect to participate, deferring receipt of |
| 73 | retirement benefits while continuing employment with his or her |
| 74 | Florida Retirement System employer. The deferred monthly |
| 75 | benefits shall accrue in the System Trust Fund on behalf of the |
| 76 | participant, plus interest compounded monthly, for the specified |
| 77 | period of the DROP participation, as provided in paragraph (c). |
| 78 | Upon termination of employment, the participant shall receive |
| 79 | the total DROP benefits and begin to receive the previously |
| 80 | determined normal retirement benefits. Participation in the DROP |
| 81 | does not guarantee employment for the specified period of DROP. |
| 82 | Participation in the DROP by an eligible member beyond the |
| 83 | initial 60-month period as authorized in this subsection shall |
| 84 | be on an annual contractual basis for all participants. |
| 85 | (b) Participation in the DROP.-- |
| 86 | 1. An eligible member may elect to participate in the DROP |
| 87 | for a period not to exceed a maximum of 60 calendar months or, |
| 88 | with respect to members who are instructional personnel employed |
| 89 | by the Florida School for the Deaf and the Blind and who have |
| 90 | received authorization by the Board of Trustees of the Florida |
| 91 | School for the Deaf and the Blind to participate in the DROP |
| 92 | beyond 60 months, or who are instructional personnel as defined |
| 93 | in s. 1012.01(2)(a)-(d) in grades K-12 and who have received |
| 94 | authorization by the district school superintendent to |
| 95 | participate in the DROP beyond 60 calendar months, 96 calendar |
| 96 | months immediately following the date on which the member first |
| 97 | reaches his or her normal retirement date or the date to which |
| 98 | he or she is eligible to defer his or her election to |
| 99 | participate as provided in subparagraph (a)2. However, a member |
| 100 | who has reached normal retirement date prior to the effective |
| 101 | date of the DROP shall be eligible to participate in the DROP |
| 102 | for a period of time not to exceed 60 calendar months or, with |
| 103 | respect to members who are instructional personnel employed by |
| 104 | the Florida School for the Deaf and the Blind and who have |
| 105 | received authorization by the Board of Trustees of the Florida |
| 106 | School for the Deaf and the Blind to participate in the DROP |
| 107 | beyond 60 months, or who are instructional personnel as defined |
| 108 | in s. 1012.01(2)(a)-(d) in grades K-12 and who have received |
| 109 | authorization by the district school superintendent to |
| 110 | participate in the DROP beyond 60 calendar months, 96 calendar |
| 111 | months immediately following the effective date of the DROP, |
| 112 | except a member of the Special Risk Class who has reached normal |
| 113 | retirement date prior to the effective date of the DROP and |
| 114 | whose total accrued value exceeds 75 percent of average final |
| 115 | compensation as of his or her effective date of retirement shall |
| 116 | be eligible to participate in the DROP for no more than 36 |
| 117 | calendar months immediately following the effective date of the |
| 118 | DROP. |
| 119 | 2. Upon deciding to participate in the DROP, the member |
| 120 | shall submit, on forms required by the division: |
| 121 | a. A written election to participate in the DROP; |
| 122 | b. Selection of the DROP participation and termination |
| 123 | dates, which satisfy the limitations stated in paragraph (a) and |
| 124 | subparagraph 1. Such termination date shall be in a binding |
| 125 | letter of resignation with the employer, establishing a deferred |
| 126 | termination date. The member may change the termination date |
| 127 | within the limitations of subparagraph 1., but only with the |
| 128 | written approval of his or her employer; |
| 129 | c. A properly completed DROP application for service |
| 130 | retirement as provided in this section; and |
| 131 | d. Any other information required by the division. |
| 132 | 3. The DROP participant shall be a retiree under the |
| 133 | Florida Retirement System for all purposes, except for paragraph |
| 134 | (5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053, |
| 135 | and 121.122. However, participation in the DROP does not alter |
| 136 | the participant's employment status and such employee shall not |
| 137 | be deemed retired from employment until his or her deferred |
| 138 | resignation is effective and termination occurs as provided in |
| 139 | s. 121.021(39). |
| 140 | 4. Elected officers shall be eligible to participate in |
| 141 | the DROP subject to the following: |
| 142 | a. An elected officer who reaches normal retirement date |
| 143 | during a term of office may defer the election to participate in |
| 144 | the DROP until the next succeeding term in that office. Such |
| 145 | elected officer who exercises this option may participate in the |
| 146 | DROP for up to 60 calendar months or a period of no longer than |
| 147 | such succeeding term of office, whichever is less. |
| 148 | b. An elected or a nonelected participant may run for a |
| 149 | term of office while participating in DROP and, if elected, |
| 150 | extend the DROP termination date accordingly, except, however, |
| 151 | if such additional term of office exceeds the 60-month |
| 152 | limitation established in subparagraph 1., and the officer does |
| 153 | not resign from office within such 60-month limitation, the |
| 154 | retirement and the participant's DROP shall be null and void as |
| 155 | provided in sub-subparagraph (c)5.d. |
| 156 | c. An elected officer who is dually employed and elects to |
| 157 | participate in DROP shall be required to satisfy the definition |
| 158 | of termination within the 60-month or, with respect to members |
| 159 | who are instructional personnel employed by the Florida School |
| 160 | for the Deaf and the Blind and who have received authorization |
| 161 | by the Board of Trustees of the Florida School for the Deaf and |
| 162 | the Blind to participate in the DROP beyond 60 months, or who |
| 163 | are instructional personnel as defined in s. 1012.01(2)(a)-(d) |
| 164 | in grades K-12 and who have received authorization by the |
| 165 | district school superintendent to participate in the DROP beyond |
| 166 | 60 months, the 96-month limitation period as provided in |
| 167 | subparagraph 1. for the nonelected position and may continue |
| 168 | employment as an elected officer as provided in s. 121.053. The |
| 169 | elected officer will be enrolled as a renewed member in the |
| 170 | Elected Officers' Class or the Regular Class, as provided in ss. |
| 171 | 121.053 and 121.122 121.22, on the first day of the month after |
| 172 | termination of employment in the nonelected position and |
| 173 | termination of DROP. Distribution of the DROP benefits shall be |
| 174 | made as provided in paragraph (c). |
| 175 | Section 2. Subsection (1) of section 121.22, Florida |
| 176 | Statutes, is amended to read: |
| 177 | 121.22 State Retirement Commission; creation; membership; |
| 178 | compensation.-- |
| 179 | (1) There is created within the Department of Management |
| 180 | Services a State Retirement Commission composed of five three |
| 181 | members: two members One member who are is retired under a |
| 182 | state-supported retirement system administered by the |
| 183 | department; two members one member who are is an active members |
| 184 | member of a state-supported retirement system that is |
| 185 | administered by the department; and one member who is neither a |
| 186 | retiree, beneficiary, or member of a state-supported retirement |
| 187 | system administered by the department. Each member shall have a |
| 188 | different occupational background from the other members. |
| 189 | Section 3. Paragraph (a) of subsection (1) of section |
| 190 | 121.24, Florida Statutes, is amended to read: |
| 191 | 121.24 Conduct of commission business; legal and other |
| 192 | assistance; compensation.-- |
| 193 | (1) The commission shall conduct its business within the |
| 194 | following guidelines: |
| 195 | (a) For purposes of hearing appeals under s. 121.23, the |
| 196 | commission may meet in panels consisting of not fewer than three |
| 197 | members. For the purpose of meeting in these panels, a quorum |
| 198 | shall be not fewer than two members. For all other purposes, a |
| 199 | quorum shall consist of three four members. The concurring vote |
| 200 | of a majority of the members present shall be required to reach |
| 201 | a decision, issue orders, and conduct the business of the |
| 202 | commission. |
| 203 | Section 4. Paragraph (a) of subsection (2) of section |
| 204 | 121.35, Florida Statutes, is amended to read: |
| 205 | 121.35 Optional retirement program for the State |
| 206 | University System.-- |
| 207 | (2) ELIGIBILITY FOR PARTICIPATION IN OPTIONAL PROGRAM.-- |
| 208 | (a) Participation in the optional retirement program |
| 209 | provided by this section shall be limited to persons who are |
| 210 | otherwise eligible for membership in the Florida Retirement |
| 211 | System; who are employed or appointed for no less than one |
| 212 | academic year; and who are employed in one of the following |
| 213 | State University System positions: |
| 214 | 1. Positions classified as instructional and research |
| 215 | faculty which are exempt from the career service under the |
| 216 | provisions of s. 110.205(2)(d). |
| 217 | 2. Positions classified as administrative and professional |
| 218 | which are exempt from the career service under the provisions of |
| 219 | s. 110.205(2)(d). |
| 220 | 3. The Chancellor and the university presidents. |
| 221 | Section 5. This act shall take effect July 1, 2005. |