HB 689

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

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