HB 0659

CS

CHAMBER ACTION

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

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