HB 689

1
A bill to be entitled
2An act relating to the Florida Retirement System; amending
3s. 121.091, F.S.; increasing the period of time in which
4members of the system who are employed as certain
5administrative personnel in grades K-12 may participate in
6the Deferred Retirement Option Program; providing a
7declaration of important state interest; providing an
8effective date.
9
10Be It Enacted by the Legislature of the State of Florida:
11
12     Section 1.  Paragraphs (a) and (b) of subsection (13) of
13section 121.091, Florida Statutes, are amended to read:
14     121.091  Benefits payable under the system.--Benefits may
15not be paid under this section unless the member has terminated
16employment as provided in s. 121.021(39)(a) or begun
17participation in the Deferred Retirement Option Program as
18provided in subsection (13), and a proper application has been
19filed in the manner prescribed by the department. The department
20may cancel an application for retirement benefits when the
21member or beneficiary fails to timely provide the information
22and documents required by this chapter and the department's
23rules. The department shall adopt rules establishing procedures
24for application for retirement benefits and for the cancellation
25of such application when the required information or documents
26are not received.
27     (13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
28subject to the provisions of this section, the Deferred
29Retirement Option Program, hereinafter referred to as the DROP,
30is a program under which an eligible member of the Florida
31Retirement System may elect to participate, deferring receipt of
32retirement benefits while continuing employment with his or her
33Florida Retirement System employer. The deferred monthly
34benefits shall accrue in the System Trust Fund on behalf of the
35participant, plus interest compounded monthly, for the specified
36period of the DROP participation, as provided in paragraph (c).
37Upon termination of employment, the participant shall receive
38the total DROP benefits and begin to receive the previously
39determined normal retirement benefits. Participation in the DROP
40does not guarantee employment for the specified period of DROP.
41Participation in the DROP by an eligible member beyond the
42initial 60-month period as authorized in this subsection shall
43be on an annual contractual basis for all participants.
44     (a)  Eligibility of member to participate in the DROP.--All
45active Florida Retirement System members in a regularly
46established position, and all active members of either the
47Teachers' Retirement System established in chapter 238 or the
48State and County Officers' and Employees' Retirement System
49established in chapter 122 which systems are consolidated within
50the Florida Retirement System under s. 121.011, are eligible to
51elect participation in the DROP provided that:
52     1.  The member is not a renewed member of the Florida
53Retirement System under s. 121.122, or a member of the State
54Community College System Optional Retirement Program under s.
55121.051, the Senior Management Service Optional Annuity Program
56under s. 121.055, or the optional retirement program for the
57State University System under s. 121.35.
58     2.  Except as provided in subparagraph 6., election to
59participate is made within 12 months immediately following the
60date on which the member first reaches normal retirement date,
61or, for a member who reaches normal retirement date based on
62service before he or she reaches age 62, or age 55 for Special
63Risk Class members, election to participate may be deferred to
64the 12 months immediately following the date the member attains
6557, or age 52 for Special Risk Class members. For a member who
66first reached normal retirement date or the deferred eligibility
67date described above prior to the effective date of this
68section, election to participate shall be made within 12 months
69after the effective date of this section. A member who fails to
70make an election within such 12-month limitation period shall
71forfeit all rights to participate in the DROP. The member shall
72advise his or her employer and the division in writing of the
73date on which the DROP shall begin. Such beginning date may be
74subsequent to the 12-month election period, but must be within
75the 60-month or, with respect to members who are instructional
76personnel employed by the Florida School for the Deaf and the
77Blind and who have received authorization by the Board of
78Trustees of the Florida School for the Deaf and the Blind to
79participate in the DROP beyond 60 months, or who are
80instructional personnel as defined in s. 1012.01(2)(a)-(d),
81administrative personnel as defined in s. 1012.01(3)(c), or
82administrative personnel as defined in s. 1012.01(3)(a) and (b)
83in school-board-designated areas of critical administrative
84shortage in grades K-12 and who have received authorization by
85the district school superintendent to participate in the DROP
86beyond 60 months, the 96-month limitation period as provided in
87subparagraph (b)1. When establishing eligibility of the member
88to participate in the DROP for the 60-month or, with respect to
89members who are instructional personnel employed by the Florida
90School for the Deaf and the Blind and who have received
91authorization by the Board of Trustees of the Florida School for
92the Deaf and the Blind to participate in the DROP beyond 60
93months, or who are instructional personnel as defined in s.
941012.01(2)(a)-(d), administrative personnel as defined in s.
951012.01(3)(c), or administrative personnel as defined in s.
961012.01(3)(a) and (b) in school-board-designated areas of
97critical administrative shortage in grades K-12 and who have
98received authorization by the district school superintendent to
99participate in the DROP beyond 60 months, the 96-month maximum
100participation period, the member may elect to include or exclude
101any optional service credit purchased by the member from the
102total service used to establish the normal retirement date. A
103member with dual normal retirement dates shall be eligible to
104elect to participate in DROP within 12 months after attaining
105normal retirement date in either class.
106     3.  The employer of a member electing to participate in the
107DROP, or employers if dually employed, shall acknowledge in
108writing to the division the date the member's participation in
109the DROP begins and the date the member's employment and DROP
110participation will terminate.
111     4.  Simultaneous employment of a participant by additional
112Florida Retirement System employers subsequent to the
113commencement of participation in the DROP shall be permissible
114provided such employers acknowledge in writing a DROP
115termination date no later than the participant's existing
116termination date or the 60-month limitation period as provided
117in subparagraph (b)1.
118     5.  A DROP participant may change employers while
119participating in the DROP, subject to the following:
120     a.  A change of employment must take place without a break
121in service so that the member receives salary for each month of
122continuous DROP participation. If a member receives no salary
123during a month, DROP participation shall cease unless the
124employer verifies a continuation of the employment relationship
125for such participant pursuant to s. 121.021(39)(b).
126     b.  Such participant and new employer shall notify the
127division on forms required by the division as to the identity of
128the new employer.
129     c.  The new employer shall acknowledge, in writing, the
130participant's DROP termination date, which may be extended but
131not beyond the original 60-month or, with respect to members who
132are instructional personnel employed by the Florida School for
133the Deaf and the Blind and who have received authorization by
134the Board of Trustees of the Florida School for the Deaf and the
135Blind to participate in the DROP beyond 60 months, or who are
136instructional personnel as defined in s. 1012.01(2)(a)-(d),
137administrative personnel as defined in s. 1012.01(3)(c), or
138administrative personnel as defined in s. 1012.01(3)(a) and (b)
139in school-board-designated areas of critical administrative
140shortage in grades K-12 and who have received authorization by
141the district school superintendent to participate in the DROP
142beyond 60 months, the 96-month period provided in subparagraph
143(b)1., shall acknowledge liability for any additional retirement
144contributions and interest required if the participant fails to
145timely terminate employment, and shall be subject to the
146adjustment required in sub-subparagraph (c)5.d.
147     6.  Effective July 1, 2001, for instructional personnel as
148defined in s. 1012.01(2), election to participate in the DROP
149shall be made at any time following the date on which the member
150first reaches normal retirement date. The member shall advise
151his or her employer and the division in writing of the date on
152which the Deferred Retirement Option Program shall begin. When
153establishing eligibility of the member to participate in the
154DROP for the 60-month or, with respect to members who are
155instructional personnel employed by the Florida School for the
156Deaf and the Blind and who have received authorization by the
157Board of Trustees of the Florida School for the Deaf and the
158Blind to participate in the DROP beyond 60 months, or who are
159instructional personnel as defined in s. 1012.01(2)(a)-(d),
160administrative personnel as defined in s. 1012.01(3)(c), or
161administrative personnel as defined in s. 1012.01(3)(a) and (b)
162in school-board-designated areas of critical administrative
163shortage in grades K-12 and who have received authorization by
164the district school superintendent to participate in the DROP
165beyond 60 months, the 96-month maximum participation period, as
166provided in subparagraph (b)1., the member may elect to include
167or exclude any optional service credit purchased by the member
168from the total service used to establish the normal retirement
169date. A member with dual normal retirement dates shall be
170eligible to elect to participate in either class.
171     (b)  Participation in the DROP.--
172     1.  An eligible member may elect to participate in the DROP
173for a period not to exceed a maximum of 60 calendar months or,
174with respect to members who are instructional personnel employed
175by the Florida School for the Deaf and the Blind and who have
176received authorization by the Board of Trustees of the Florida
177School for the Deaf and the Blind to participate in the DROP
178beyond 60 months, or who are instructional personnel as defined
179in s. 1012.01(2)(a)-(d), administrative personnel as defined in
180s. 1012.01(3)(c), or administrative personnel as defined in s.
1811012.01(3)(a) and (b) in school-board-designated areas of
182critical administrative shortage in grades K-12 and who have
183received authorization by the district school superintendent to
184participate in the DROP beyond 60 calendar months, 96 calendar
185months immediately following the date on which the member first
186reaches his or her normal retirement date or the date to which
187he or she is eligible to defer his or her election to
188participate as provided in subparagraph (a)2. However, a member
189who has reached normal retirement date prior to the effective
190date of the DROP shall be eligible to participate in the DROP
191for a period of time not to exceed 60 calendar months or, with
192respect to members who are instructional personnel employed by
193the Florida School for the Deaf and the Blind and who have
194received authorization by the Board of Trustees of the Florida
195School for the Deaf and the Blind to participate in the DROP
196beyond 60 months, or who are instructional personnel as defined
197in s. 1012.01(2)(a)-(d), administrative personnel as defined in
198s. 1012.01(3)(c), or administrative personnel as defined in s.
1991012.01(3)(a) and (b) in school-board-designated areas of
200critical administrative shortage in grades K-12 and who have
201received authorization by the district school superintendent to
202participate in the DROP beyond 60 calendar months, 96 calendar
203months immediately following the effective date of the DROP,
204except a member of the Special Risk Class who has reached normal
205retirement date prior to the effective date of the DROP and
206whose total accrued value exceeds 75 percent of average final
207compensation as of his or her effective date of retirement shall
208be eligible to participate in the DROP for no more than 36
209calendar months immediately following the effective date of the
210DROP.
211     2.  Upon deciding to participate in the DROP, the member
212shall submit, on forms required by the division:
213     a.  A written election to participate in the DROP;
214     b.  Selection of the DROP participation and termination
215dates, which satisfy the limitations stated in paragraph (a) and
216subparagraph 1. Such termination date shall be in a binding
217letter of resignation with the employer, establishing a deferred
218termination date. The member may change the termination date
219within the limitations of subparagraph 1., but only with the
220written approval of his or her employer;
221     c.  A properly completed DROP application for service
222retirement as provided in this section; and
223     d.  Any other information required by the division.
224     3.  The DROP participant shall be a retiree under the
225Florida Retirement System for all purposes, except for paragraph
226(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
227and 121.122. However, participation in the DROP does not alter
228the participant's employment status and such employee shall not
229be deemed retired from employment until his or her deferred
230resignation is effective and termination occurs as provided in
231s. 121.021(39).
232     4.  Elected officers shall be eligible to participate in
233the DROP subject to the following:
234     a.  An elected officer who reaches normal retirement date
235during a term of office may defer the election to participate in
236the DROP until the next succeeding term in that office. Such
237elected officer who exercises this option may participate in the
238DROP for up to 60 calendar months or a period of no longer than
239such succeeding term of office, whichever is less.
240     b.  An elected or a nonelected participant may run for a
241term of office while participating in DROP and, if elected,
242extend the DROP termination date accordingly, except, however,
243if such additional term of office exceeds the 60-month
244limitation established in subparagraph 1., and the officer does
245not resign from office within such 60-month limitation, the
246retirement and the participant's DROP shall be null and void as
247provided in sub-subparagraph (c)5.d.
248     c.  An elected officer who is dually employed and elects to
249participate in DROP shall be required to satisfy the definition
250of termination within the 60-month or, with respect to members
251who are instructional personnel employed by the Florida School
252for the Deaf and the Blind and who have received authorization
253by the Board of Trustees of the Florida School for the Deaf and
254the Blind to participate in the DROP beyond 60 months, or who
255are instructional personnel as defined in s. 1012.01(2)(a)-(d),
256administrative personnel as defined in s. 1012.01(3)(c), or
257administrative personnel as defined in s. 1012.01(3)(a) and (b)
258in school-board-designated areas of critical administrative
259shortage in grades K-12 and who have received authorization by
260the district school superintendent to participate in the DROP
261beyond 60 months, the 96-month limitation period as provided in
262subparagraph 1. for the nonelected position and may continue
263employment as an elected officer as provided in s. 121.053. The
264elected officer will be enrolled as a renewed member in the
265Elected Officers' Class or the Regular Class, as provided in ss.
266121.053 and 121.122, on the first day of the month after
267termination of employment in the nonelected position and
268termination of DROP. Distribution of the DROP benefits shall be
269made as provided in paragraph (c).
270     Section 2.  The Legislature finds that a proper and
271legitimate state purpose is served when employees and retirees
272of the state and of its political subdivisions, and the
273dependents, survivors, and beneficiaries of such employees and
274retirees, are extended the basic protections afforded by
275governmental retirement systems that provide fair and adequate
276benefits and that are managed, administered, and funded in an
277actuarially sound manner as required by s. 14, Art. X of the
278State Constitution and part VII of chapter 112, Florida
279Statutes. Therefore, the Legislature determines and declares
280that the provisions of this act fulfill an important state
281interest.
282     Section 3.  This act shall take effect upon becoming a law.


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