Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2744
Barcode 044572
CHAMBER ACTION
Senate House
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04/11/2007 09:53 AM .
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11 The Committee on Education Pre-K - 12 (Carlton) recommended
12 the following amendment:
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14 Senate Amendment (with title amendment)
15 Delete everything after the enacting clause
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17 and insert:
18 Section 1. Paragraphs (a) and (b) of subsection (13)
19 of section 121.091, Florida Statutes, are amended to read:
20 121.091 Benefits payable under the system.--Benefits
21 may not be paid under this section unless the member has
22 terminated employment as provided in s. 121.021(39)(a) or
23 begun participation in the Deferred Retirement Option Program
24 as provided in subsection (13), and a proper application has
25 been filed in the manner prescribed by the department. The
26 department may cancel an application for retirement benefits
27 when the member or beneficiary fails to timely provide the
28 information and documents required by this chapter and the
29 department's rules. The department shall adopt rules
30 establishing procedures for application for retirement
31 benefits and for the cancellation of such application when the
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2744
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1 required information or documents are not received.
2 (13) DEFERRED RETIREMENT OPTION PROGRAM.--In general,
3 and subject to the provisions of this section, the Deferred
4 Retirement Option Program, hereinafter referred to as the
5 DROP, is a program under which an eligible member of the
6 Florida Retirement System may elect to participate, deferring
7 receipt of retirement benefits while continuing employment
8 with his or her Florida Retirement System employer. The
9 deferred monthly benefits shall accrue in the System Trust
10 Fund on behalf of the participant, plus interest compounded
11 monthly, for the specified period of the DROP participation,
12 as provided in paragraph (c). Upon termination of employment,
13 the participant shall receive the total DROP benefits and
14 begin to receive the previously determined normal retirement
15 benefits. Participation in the DROP does not guarantee
16 employment for the specified period of DROP. Participation in
17 the DROP by an eligible member beyond the initial 60-month
18 period as authorized in this subsection shall be on an annual
19 contractual basis for all participants.
20 (a) Eligibility of member to participate in the
21 DROP.--All active Florida Retirement System members in a
22 regularly established position, and all active members of
23 either the Teachers' Retirement System established in chapter
24 238 or the State and County Officers' and Employees'
25 Retirement System established in chapter 122 which systems are
26 consolidated within the Florida Retirement System under s.
27 121.011, are eligible to elect participation in the DROP
28 provided that:
29 1. The member is not a renewed member of the Florida
30 Retirement System under s. 121.122, or a member of the State
31 Community College System Optional Retirement Program under s.
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2744
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1 121.051, the Senior Management Service Optional Annuity
2 Program under s. 121.055, or the optional retirement program
3 for the State University System under s. 121.35.
4 2. Except as provided in subparagraph 6., election to
5 participate is made within 12 months immediately following the
6 date on which the member first reaches normal retirement date,
7 or, for a member who reaches normal retirement date based on
8 service before he or she reaches age 62, or age 55 for Special
9 Risk Class members, election to participate may be deferred to
10 the 12 months immediately following the date the member
11 attains 57, or age 52 for Special Risk Class members. For a
12 member who first reached normal retirement date or the
13 deferred eligibility date described above prior to the
14 effective date of this section, election to participate shall
15 be made within 12 months after the effective date of this
16 section. A member who fails to make an election within such
17 12-month limitation period shall forfeit all rights to
18 participate in the DROP. The member shall advise his or her
19 employer and the division in writing of the date on which the
20 DROP shall begin. Such beginning date may be subsequent to the
21 12-month election period, but must be within the 60-month or,
22 with respect to members who are charter school instructional
23 personnel with students who are funded through the Florida
24 Education Finance Program and who have received authorization
25 from the board of the charter school to participate in DROP
26 beyond 60 months, who are instructional personnel employed by
27 the Florida School for the Deaf and the Blind and who have
28 received authorization by the Board of Trustees of the Florida
29 School for the Deaf and the Blind to participate in the DROP
30 beyond 60 months, or who are instructional personnel as
31 defined in s. 1012.01(2)(a)-(d) in grades K-12 or
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2744
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1 prekindergarten classroom teachers with students who are
2 funded through the Florida Education Finance Program and who
3 have received authorization by the district school
4 superintendent to participate in the DROP beyond 60 months,
5 the 96-month limitation period as provided in subparagraph
6 (b)1. When establishing eligibility of the member to
7 participate in the DROP for the 60-month or, with respect to
8 members who are charter school instructional personnel with
9 students who are funded through the Florida Education Finance
10 Program and who have received authorization from the board of
11 the charter school to participate in DROP beyond 60 months,
12 who are instructional personnel employed by the Florida School
13 for the Deaf and the Blind and who have received authorization
14 by the Board of Trustees of the Florida School for the Deaf
15 and the Blind to participate in the DROP beyond 60 months, or
16 who are instructional personnel as defined in s.
17 1012.01(2)(a)-(d) in grades K-12 or prekindergarten classroom
18 teachers with students who are funded through the Florida
19 Education Finance Program and who have received authorization
20 by the district school superintendent to participate in the
21 DROP beyond 60 months, the 96-month maximum participation
22 period, the member may elect to include or exclude any
23 optional service credit purchased by the member from the total
24 service used to establish the normal retirement date. A member
25 with dual normal retirement dates shall be eligible to elect
26 to participate in DROP within 12 months after attaining normal
27 retirement date in either class.
28 3. The employer of a member electing to participate in
29 the DROP, or employers if dually employed, shall acknowledge
30 in writing to the division the date the member's participation
31 in the DROP begins and the date the member's employment and
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2744
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1 DROP participation will terminate.
2 4. Simultaneous employment of a participant by
3 additional Florida Retirement System employers subsequent to
4 the commencement of participation in the DROP shall be
5 permissible provided such employers acknowledge in writing a
6 DROP termination date no later than the participant's existing
7 termination date or the 60-month limitation period as provided
8 in subparagraph (b)1.
9 5. A DROP participant may change employers while
10 participating in the DROP, subject to the following:
11 a. A change of employment must take place without a
12 break in service so that the member receives salary for each
13 month of continuous DROP participation. If a member receives
14 no salary during a month, DROP participation shall cease
15 unless the employer verifies a continuation of the employment
16 relationship for such participant pursuant to s.
17 121.021(39)(b).
18 b. Such participant and new employer shall notify the
19 division on forms required by the division as to the identity
20 of the new employer.
21 c. The new employer shall acknowledge, in writing, the
22 participant's DROP termination date, which may be extended but
23 not beyond the original 60-month or, with respect to members
24 who are charter school instructional personnel with students
25 who are funded through the Florida Education Finance Program
26 and who have received authorization from the board of the
27 charter school to participate in DROP beyond 60 months, who
28 are instructional personnel employed by the Florida School for
29 the Deaf and the Blind and who have received authorization by
30 the Board of Trustees of the Florida School for the Deaf and
31 the Blind to participate in the DROP beyond 60 months, or who
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2744
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1 are instructional personnel as defined in s. 1012.01(2)(a)-(d)
2 in grades K-12 or prekindergarten classroom teachers with
3 students who are funded through the Florida Education Finance
4 Program and who have received authorization by the district
5 school superintendent to participate in the DROP beyond 60
6 months, the 96-month period provided in subparagraph (b)1.,
7 shall acknowledge liability for any additional retirement
8 contributions and interest required if the participant fails
9 to timely terminate employment, and shall be subject to the
10 adjustment required in sub-subparagraph (c)5.d.
11 6. Effective July 1, 2001, for instructional personnel
12 as defined in s. 1012.01(2), election to participate in the
13 DROP shall be made at any time following the date on which the
14 member first reaches normal retirement date. The member shall
15 advise his or her employer and the division in writing of the
16 date on which the Deferred Retirement Option Program shall
17 begin. When establishing eligibility of the member to
18 participate in the DROP for the 60-month or, with respect to
19 members who are charter school instructional personnel with
20 students who are funded through the Florida Education Finance
21 Program and who have received authorization from the board of
22 the charter school to participate in DROP beyond 60 months,
23 who are instructional personnel employed by the Florida School
24 for the Deaf and the Blind and who have received authorization
25 by the Board of Trustees of the Florida School for the Deaf
26 and the Blind to participate in the DROP beyond 60 months, or
27 who are instructional personnel as defined in s.
28 1012.01(2)(a)-(d) in grades K-12 or prekindergarten classroom
29 teachers with students who are funded through the Florida
30 Education Finance Program and who have received authorization
31 by the district school superintendent to participate in the
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2744
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1 DROP beyond 60 months, the 96-month maximum participation
2 period, as provided in subparagraph (b)1., the member may
3 elect to include or exclude any optional service credit
4 purchased by the member from the total service used to
5 establish the normal retirement date. A member with dual
6 normal retirement dates shall be eligible to elect to
7 participate in either class.
8 (b) Participation in the DROP.--
9 1. An eligible member may elect to participate in the
10 DROP for a period not to exceed a maximum of 60 calendar
11 months or, with respect to members who are charter school
12 instructional personnel with students who are funded through
13 the Florida Education Finance Program and who have received
14 authorization from the board of the charter school to
15 participate in DROP beyond 60 months, who are instructional
16 personnel employed by the Florida School for the Deaf and the
17 Blind and who have received authorization by the Board of
18 Trustees of the Florida School for the Deaf and the Blind to
19 participate in the DROP beyond 60 months, or who are
20 instructional personnel as defined in s. 1012.01(2)(a)-(d) in
21 grades K-12 or prekindergarten classroom teachers with
22 students who are funded through the Florida Education Finance
23 Program and who have received authorization by the district
24 school superintendent to participate in the DROP beyond 60
25 calendar months, 96 calendar months immediately following the
26 date on which the member first reaches his or her normal
27 retirement date or the date to which he or she is eligible to
28 defer his or her election to participate as provided in
29 subparagraph (a)2. However, a member who has reached normal
30 retirement date prior to the effective date of the DROP shall
31 be eligible to participate in the DROP for a period of time
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Florida Senate - 2007 COMMITTEE AMENDMENT
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1 not to exceed 60 calendar months or, with respect to members
2 who are charter school instructional personnel with students
3 who are funded through the Florida Education Finance Program
4 and who have received authorization from the board of the
5 charter school to participate in DROP beyond 60 months, who
6 are instructional personnel employed by the Florida School for
7 the Deaf and the Blind and who have received authorization by
8 the Board of Trustees of the Florida School for the Deaf and
9 the Blind to participate in the DROP beyond 60 months, or who
10 are instructional personnel as defined in s. 1012.01(2)(a)-(d)
11 in grades K-12 or prekindergarten classroom teachers with
12 students who are funded through the Florida Education Finance
13 Program and who have received authorization by the district
14 school superintendent to participate in the DROP beyond 60
15 calendar months, 96 calendar months immediately following the
16 effective date of the DROP, except a member of the Special
17 Risk Class who has reached normal retirement date prior to the
18 effective date of the DROP and whose total accrued value
19 exceeds 75 percent of average final compensation as of his or
20 her effective date of retirement shall be eligible to
21 participate in the DROP for no more than 36 calendar months
22 immediately following the effective date of the DROP.
23 2. Upon deciding to participate in the DROP, the
24 member shall submit, on forms required by the division:
25 a. A written election to participate in the DROP;
26 b. Selection of the DROP participation and termination
27 dates, which satisfy the limitations stated in paragraph (a)
28 and subparagraph 1. Such termination date shall be in a
29 binding letter of resignation with the employer, establishing
30 a deferred termination date. The member may change the
31 termination date within the limitations of subparagraph 1.,
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1 but only with the written approval of his or her employer;
2 c. A properly completed DROP application for service
3 retirement as provided in this section; and
4 d. Any other information required by the division.
5 3. The DROP participant shall be a retiree under the
6 Florida Retirement System for all purposes, except for
7 paragraph (5)(f) and subsection (9) and ss. 112.3173, 112.363,
8 121.053, and 121.122. However, participation in the DROP does
9 not alter the participant's employment status and such
10 employee shall not be deemed retired from employment until his
11 or her deferred resignation is effective and termination
12 occurs as provided in s. 121.021(39).
13 4. Elected officers shall be eligible to participate
14 in the DROP subject to the following:
15 a. An elected officer who reaches normal retirement
16 date during a term of office may defer the election to
17 participate in the DROP until the next succeeding term in that
18 office. Such elected officer who exercises this option may
19 participate in the DROP for up to 60 calendar months or a
20 period of no longer than such succeeding term of office,
21 whichever is less.
22 b. An elected or a nonelected participant may run for
23 a term of office while participating in DROP and, if elected,
24 extend the DROP termination date accordingly, except, however,
25 if such additional term of office exceeds the 60-month
26 limitation established in subparagraph 1., and the officer
27 does not resign from office within such 60-month limitation,
28 the retirement and the participant's DROP shall be null and
29 void as provided in sub-subparagraph (c)5.d.
30 c. An elected officer who is dually employed and
31 elects to participate in DROP shall be required to satisfy the
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1 definition of termination within the 60-month or, with respect
2 to members who are charter school instructional personnel with
3 students who are funded through the Florida Education Finance
4 Program and who have received authorization from the board of
5 the charter school to participate in DROP beyond 60 months,
6 who are instructional personnel employed by the Florida School
7 for the Deaf and the Blind and who have received authorization
8 by the Board of Trustees of the Florida School for the Deaf
9 and the Blind to participate in the DROP beyond 60 months, or
10 who are instructional personnel as defined in s.
11 1012.01(2)(a)-(d) in grades K-12 or prekindergarten classroom
12 teachers with students who are funded through the Florida
13 Education Finance Program and who have received authorization
14 by the district school superintendent to participate in the
15 DROP beyond 60 months, the 96-month limitation period as
16 provided in subparagraph 1. for the nonelected position and
17 may continue employment as an elected officer as provided in
18 s. 121.053. The elected officer will be enrolled as a renewed
19 member in the Elected Officers' Class or the Regular Class, as
20 provided in ss. 121.053 and 121.122, on the first day of the
21 month after termination of employment in the nonelected
22 position and termination of DROP. Distribution of the DROP
23 benefits shall be made as provided in paragraph (c).
24 Section 2. This act shall take effect upon becoming a
25 law.
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28 ================ T I T L E A M E N D M E N T ===============
29 And the title is amended as follows:
30 Delete everything before the enacting clause
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2744
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1 and insert:
2 A bill to be entitled
3 An act relating to instructional personnel;
4 amending s. 121.091, F.S.; revising eligibility
5 criteria for persons employed as instructional
6 personnel in district schools to participate in
7 the Deferred Retirement Option Program beyond
8 60 months; authorizing instructional personnel
9 in grades prekindergarten through 12 who are
10 employed by charter schools to participate in
11 the Deferred Retirement Option Program for up
12 to 96 months if authorized by those schools'
13 governing boards; providing an effective date.
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