HB 659

1	A bill to be entitled
2	An act relating to the Florida Retirement System; amending
3	s. 121.091, F.S.; increasing the period of time in which
4	members of the system who are employed as administrative
5	personnel in grades K-12 may participate in the Deferred
6	Retirement Option Program; providing a declaration of
7	important state interest; providing an effective date.
8
9	Be It Enacted by the Legislature of the State of Florida:
10
11	Section 1.  Paragraphs (a) and (b) of subsection (13) of
12	section 121.091, Florida Statutes, are amended to read:
13	121.091  Benefits payable under the system.--Benefits may
14	not be paid under this section unless the member has terminated
15	employment as provided in s. 121.021(39)(a) or begun
16	participation in the Deferred Retirement Option Program as
17	provided in subsection (13), and a proper application has been
18	filed in the manner prescribed by the department. The department
19	may cancel an application for retirement benefits when the
20	member or beneficiary fails to timely provide the information
21	and documents required by this chapter and the department's
22	rules. The department shall adopt rules establishing procedures
23	for application for retirement benefits and for the cancellation
24	of such application when the required information or documents
25	are not received.
26	(13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
27	subject to the provisions of this section, the Deferred
28	Retirement Option Program, hereinafter referred to as the DROP,
29	is a program under which an eligible member of the Florida
30	Retirement System may elect to participate, deferring receipt of
31	retirement benefits while continuing employment with his or her
32	Florida Retirement System employer. The deferred monthly
33	benefits shall accrue in the System Trust Fund on behalf of the
34	participant, plus interest compounded monthly, for the specified
35	period of the DROP participation, as provided in paragraph (c).
36	Upon termination of employment, the participant shall receive
37	the total DROP benefits and begin to receive the previously
38	determined normal retirement benefits. Participation in the DROP
39	does not guarantee employment for the specified period of DROP.
40	Participation in the DROP by an eligible member beyond the
41	initial 60-month period as authorized in this subsection shall
42	be on an annual contractual basis for all participants.
43	(a)  Eligibility of member to participate in the DROP.--All
44	active Florida Retirement System members in a regularly
45	established position, and all active members of either the
46	Teachers' Retirement System established in chapter 238 or the
47	State and County Officers' and Employees' Retirement System
48	established in chapter 122 which systems are consolidated within
49	the Florida Retirement System under s. 121.011, are eligible to
50	elect participation in the DROP provided that:
51	1.  The member is not a renewed member of the Florida
52	Retirement System under s. 121.122, or a member of the State
53	Community College System Optional Retirement Program under s.
54	121.051, the Senior Management Service Optional Annuity Program
55	under s. 121.055, or the optional retirement program for the
56	State University System under s. 121.35.
57	2.  Except as provided in subparagraph 6., election to
58	participate is made within 12 months immediately following the
59	date on which the member first reaches normal retirement date,
60	or, for a member who reaches normal retirement date based on
61	service before he or she reaches age 62, or age 55 for Special
62	Risk Class members, election to participate may be deferred to
63	the 12 months immediately following the date the member attains
64	57, or age 52 for Special Risk Class members. For a member who
65	first reached normal retirement date or the deferred eligibility
66	date described above prior to the effective date of this
67	section, election to participate shall be made within 12 months
68	after the effective date of this section. A member who fails to
69	make an election within such 12-month limitation period shall
70	forfeit all rights to participate in the DROP. The member shall
71	advise his or her employer and the division in writing of the
72	date on which the DROP shall begin. Such beginning date may be
73	subsequent to the 12-month election period, but must be within
74	the 60-month or, with respect to members who are instructional
75	personnel employed by the Florida School for the Deaf and the
76	Blind and who have received authorization by the Board of
77	Trustees of the Florida School for the Deaf and the Blind to
78	participate in the DROP beyond 60 months, or who are
79	instructional personnel as defined in s. 1012.01(2)(a)-(d) or
80	administrative personnel as defined in s. 1012.01(3) in grades
81	K-12 and who have received authorization by the district school
82	superintendent to participate in the DROP beyond 60 months, the
83	96-month limitation period as provided in subparagraph (b)1.
84	When establishing eligibility of the member to participate in
85	the DROP for the 60-month or, with respect to members who are
86	instructional personnel employed by the Florida School for the
87	Deaf and the Blind and who have received authorization by the
88	Board of Trustees of the Florida School for the Deaf and the
89	Blind to participate in the DROP beyond 60 months, or who are
90	instructional personnel as defined in s. 1012.01(2)(a)-(d) or
91	administrative personnel as defined in s. 1012.01(3) in grades
92	K-12 and who have received authorization by the district school
93	superintendent to participate in the DROP beyond 60 months, the
94	96-month maximum participation period, the member may elect to
95	include or exclude any optional service credit purchased by the
96	member from the total service used to establish the normal
97	retirement date. A member with dual normal retirement dates
98	shall be eligible to elect to participate in DROP within 12
99	months after attaining normal retirement date in either class.
100	3.  The employer of a member electing to participate in the
101	DROP, or employers if dually employed, shall acknowledge in
102	writing to the division the date the member's participation in
103	the DROP begins and the date the member's employment and DROP
104	participation will terminate.
105	4.  Simultaneous employment of a participant by additional
106	Florida Retirement System employers subsequent to the
107	commencement of participation in the DROP shall be permissible
108	provided such employers acknowledge in writing a DROP
109	termination date no later than the participant's existing
110	termination date or the 60-month limitation period as provided
111	in subparagraph (b)1.
112	5.  A DROP participant may change employers while
113	participating in the DROP, subject to the following:
114	a.  A change of employment must take place without a break
115	in service so that the member receives salary for each month of
116	continuous DROP participation. If a member receives no salary
117	during a month, DROP participation shall cease unless the
118	employer verifies a continuation of the employment relationship
119	for such participant pursuant to s. 121.021(39)(b).
120	b.  Such participant and new employer shall notify the
121	division on forms required by the division as to the identity of
122	the new employer.
123	c.  The new employer shall acknowledge, in writing, the
124	participant's DROP termination date, which may be extended but
125	not beyond the original 60-month or, with respect to members who
126	are instructional personnel employed by the Florida School for
127	the Deaf and the Blind and who have received authorization by
128	the Board of Trustees of the Florida School for the Deaf and the
129	Blind to participate in the DROP beyond 60 months, or who are
130	instructional personnel as defined in s. 1012.01(2)(a)-(d) or
131	administrative personnel as defined in s. 1012.01(3) in grades
132	K-12 and who have received authorization by the district school
133	superintendent to participate in the DROP beyond 60 months, the
134	96-month period provided in subparagraph (b)1., shall
135	acknowledge liability for any additional retirement
136	contributions and interest required if the participant fails to
137	timely terminate employment, and shall be subject to the
138	adjustment required in sub-subparagraph (c)5.d.
139	6.  Effective July 1, 2001, for instructional personnel as
140	defined in s. 1012.01(2), election to participate in the DROP
141	shall be made at any time following the date on which the member
142	first reaches normal retirement date. The member shall advise
143	his or her employer and the division in writing of the date on
144	which the Deferred Retirement Option Program shall begin. When
145	establishing eligibility of the member to participate in the
146	DROP for the 60-month or, with respect to members who are
147	instructional personnel employed by the Florida School for the
148	Deaf and the Blind and who have received authorization by the
149	Board of Trustees of the Florida School for the Deaf and the
150	Blind to participate in the DROP beyond 60 months, or who are
151	instructional personnel as defined in s. 1012.01(2)(a)-(d) or
152	administrative personnel as defined in s. 1012.01(3) in grades
153	K-12 and who have received authorization by the district school
154	superintendent to participate in the DROP beyond 60 months, the
155	96-month maximum participation period, as provided in
156	subparagraph (b)1., the member may elect to include or exclude
157	any optional service credit purchased by the member from the
158	total service used to establish the normal retirement date. A
159	member with dual normal retirement dates shall be eligible to
160	elect to participate in either class.
161	(b)  Participation in the DROP.--
162	1.  An eligible member may elect to participate in the DROP
163	for a period not to exceed a maximum of 60 calendar months or,
164	with respect to members who are instructional personnel employed
165	by the Florida School for the Deaf and the Blind and who have
166	received authorization by the Board of Trustees of the Florida
167	School for the Deaf and the Blind to participate in the DROP
168	beyond 60 months, or who are instructional personnel as defined
169	in s. 1012.01(2)(a)-(d) or administrative personnel as defined
170	in s. 1012.01(3) in grades K-12 and who have received
171	authorization by the district school superintendent to
172	participate in the DROP beyond 60 calendar months, 96 calendar
173	months immediately following the date on which the member first
174	reaches his or her normal retirement date or the date to which
175	he or she is eligible to defer his or her election to
176	participate as provided in subparagraph (a)2. However, a member
177	who has reached normal retirement date prior to the effective
178	date of the DROP shall be eligible to participate in the DROP
179	for a period of time not to exceed 60 calendar months or, with
180	respect to members who are instructional personnel employed by
181	the Florida School for the Deaf and the Blind and who have
182	received authorization by the Board of Trustees of the Florida
183	School for the Deaf and the Blind to participate in the DROP
184	beyond 60 months, or who are instructional personnel as defined
185	in s. 1012.01(2)(a)-(d) or administrative personnel as defined
186	in s. 1012.01(3) in grades K-12 and who have received
187	authorization by the district school superintendent to
188	participate in the DROP beyond 60 calendar months, 96 calendar
189	months immediately following the effective date of the DROP,
190	except a member of the Special Risk Class who has reached normal
191	retirement date prior to the effective date of the DROP and
192	whose total accrued value exceeds 75 percent of average final
193	compensation as of his or her effective date of retirement shall
194	be eligible to participate in the DROP for no more than 36
195	calendar months immediately following the effective date of the
196	DROP.
197	2.  Upon deciding to participate in the DROP, the member
198	shall submit, on forms required by the division:
199	a.  A written election to participate in the DROP;
200	b.  Selection of the DROP participation and termination
201	dates, which satisfy the limitations stated in paragraph (a) and
202	subparagraph 1. Such termination date shall be in a binding
203	letter of resignation with the employer, establishing a deferred
204	termination date. The member may change the termination date
205	within the limitations of subparagraph 1., but only with the
206	written approval of his or her employer;
207	c.  A properly completed DROP application for service
208	retirement as provided in this section; and
209	d.  Any other information required by the division.
210	3.  The DROP participant shall be a retiree under the
211	Florida Retirement System for all purposes, except for paragraph
212	(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
213	and 121.122. However, participation in the DROP does not alter
214	the participant's employment status and such employee shall not
215	be deemed retired from employment until his or her deferred
216	resignation is effective and termination occurs as provided in
217	s. 121.021(39).
218	4.  Elected officers shall be eligible to participate in
219	the DROP subject to the following:
220	a.  An elected officer who reaches normal retirement date
221	during a term of office may defer the election to participate in
222	the DROP until the next succeeding term in that office. Such
223	elected officer who exercises this option may participate in the
224	DROP for up to 60 calendar months or a period of no longer than
225	such succeeding term of office, whichever is less.
226	b.  An elected or a nonelected participant may run for a
227	term of office while participating in DROP and, if elected,
228	extend the DROP termination date accordingly, except, however,
229	if such additional term of office exceeds the 60-month
230	limitation established in subparagraph 1., and the officer does
231	not resign from office within such 60-month limitation, the
232	retirement and the participant's DROP shall be null and void as
233	provided in sub-subparagraph (c)5.d.
234	c.  An elected officer who is dually employed and elects to
235	participate in DROP shall be required to satisfy the definition
236	of termination within the 60-month or, with respect to members
237	who are instructional personnel employed by the Florida School
238	for the Deaf and the Blind and who have received authorization
239	by the Board of Trustees of the Florida School for the Deaf and
240	the Blind to participate in the DROP beyond 60 months, or who
241	are instructional personnel as defined in s. 1012.01(2)(a)-(d)
242	or administrative personnel as defined in s. 1012.01(3) in
243	grades K-12 and who have received authorization by the district
244	school superintendent to participate in the DROP beyond 60
245	months, the 96-month limitation period as provided in
246	subparagraph 1. for the nonelected position and may continue
247	employment as an elected officer as provided in s. 121.053. The
248	elected officer will be enrolled as a renewed member in the
249	Elected Officers' Class or the Regular Class, as provided in ss.
250	121.053 and 121.122, on the first day of the month after
251	termination of employment in the nonelected position and
252	termination of DROP. Distribution of the DROP benefits shall be
253	made as provided in paragraph (c).
254	Section 2.  The Legislature finds that a proper and
255	legitimate state purpose is served when employees and retirees
256	of the state and of its political subdivisions, and the
257	dependents, survivors, and beneficiaries of such employees and
258	retirees, are extended the basic protections afforded by
259	governmental retirement systems that provide fair and adequate
260	benefits and that are managed, administered, and funded in an
261	actuarially sound manner as required by s. 14, Art. X of the
262	State Constitution and part VII of chapter 112, Florida
263	Statutes. Therefore, the Legislature determines and declares
264	that the provisions of this act fulfill an important state
265	interest.
266	Section 3.  This act shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.