HB 821

1	A bill to be entitled
2	An act relating to retirement; amending s. 121.021, F.S.;
3	revising definitions; amending s. 121.051, F.S.;
4	conforming provisions relating to dual employment;
5	amending s. 121.0511, F.S.; revising procedure by which a
6	municipality or independent special district may revoke
7	its election to participate in the Florida Retirement
8	System; creating s. 121.0517, F.S.; providing legislative
9	intent; creating the Qualifying Injured Special Risk Class
10	of membership within the Florida Retirement System;
11	providing eligibility requirements for membership;
12	providing medical certification requirements; defining
13	"qualifying injury"; prohibiting the grant or creation of
14	additional rights; amending s. 121.052, F.S.; authorizing
15	sheriffs to remain or elect membership in the class;
16	amending s. 121.055, F.S.; authorizing a person appointed
17	to a position in the Senior Management Service Class who
18	is a member of the Qualifying Injured Special Risk Class
19	to remain in the latter class; amending s. 121.091, F.S.;
20	providing an average final compensation formula for
21	members of the Qualifying Injured Special Risk Class;
22	providing for computation of benefits payable for dual
23	normal retirement ages and early retirement benefits;
24	providing for DROP participation; amending s. 121.23,
25	F.S.; providing applicability to proceedings in which the
26	administrator has made written final edits on the merits
27	respecting applications for qualifying injured special
28	risk membership; amending s. 121.4501, F.S.; providing the
29	benefit commencement age for members of the Qualifying
30	Injured Special Risk Class; amending s. 121.71, F.S.;
31	providing for employer retirement contribution rates for
32	the Qualifying Injured Special Risk Class; amending ss.
33	121.72 and 121.73, F.S.; providing gross compensation
34	percentages for the Qualifying Injured Special Risk Class
35	for allocations from the Florida Retirement System
36	Contributions Clearing Trust Fund for optional retirement
37	program participant accounts and participant disability
38	coverage; providing an effective date.
39
40	Be It Enacted by the Legislature of the State of Florida:
41
42	Section 1.  Subsection (12) and paragraph (b) of subsection
43	(29) of section 121.021, Florida Statutes, are amended, and
44	paragraph (f) is added to subsection (15) of that section, to
45	read:
46	121.021  Definitions.--The following words and phrases as
47	used in this chapter have the respective meanings set forth
48	unless a different meaning is plainly required by the context:
49	(12)  "Member" means any officer or employee who is covered
50	or who becomes covered under this system in accordance with this
51	chapter. On and after December 1, 1970, all new members and
52	those members transferring from existing systems shall be
53	divided into the following classes: "Special Risk Class," as
54	provided in s. 121.0515(2); "Special Risk Administrative Support
55	Class," as provided in s. 121.0515(7); "Qualifying Injured
56	Special Risk Class," as provided in s. 121.0517; "Elected
57	Officers' Class," as provided in s. 121.052; "Senior Management
58	Service Class," as provided in s. 121.055; and "Regular Class,"
59	which consists of all members who are not in the Special Risk
60	Class, Special Risk Administrative Support Class, Qualifying
61	Injured Special Risk Class, Elected Officers' Class, or Senior
62	Management Service Class.
63	(15)
64	(f)  Effective July 1, 2007, "qualifying injured special
65	risk member" or "qualifying injured special risk employee"
66	includes any member who is employed as a law enforcement
67	officer, as a firefighter, or in a criminal detention position
68	and meets the criteria set forth in s. 121.0517.
69	(29)  "Normal retirement date" means the first day of any
70	month following the date a member attains one of the following
71	statuses:
72	(b)  If a Special Risk Class or Qualifying Injured Special
73	Risk Class member, the member:
74	1.  Completes 6 or more years of creditable service in the
75	Special Risk Class, the Qualifying Injured Special Risk Class,
76	or a combination of the two and attains age 55;
77	2.  Completes 25 years of creditable service in the Special
78	Risk Class, the Qualifying Injured Special Risk Class, or a
79	combination of the two, regardless of age; or
80	3.  Completes 25 years of creditable service and attains
81	age 52, which service may include a maximum of 4 years of
82	military service credit as long as such credit is not claimed
83	under any other system and the remaining years are in the
84	Special Risk Class, the Qualifying Injured Special Risk Class,
85	or a combination of the two.
86
87	"Normal retirement age" is attained on the "normal retirement
88	date."
89	Section 2.  Subsection (9) of section 121.051, Florida
90	Statutes, is amended to read:
91	121.051  Participation in the system.--
92	(9)  DUAL EMPLOYMENT.--A member may not participate in more
93	than one state-administered retirement system, plan, or class of
94	membership simultaneously. Pursuant thereto:
95	(a)  With respect to any member who is not eligible to
96	participate in the Elected Officers' Class, but who is
97	simultaneously employed in two or more positions covered by
98	different Florida Retirement System classes:
99	1.  The member must participate in the membership class for
100	the position in which he or she is employed the majority of the
101	time: the Regular Class, Senior Management Service Class,
102	Special Risk Class, Qualifying Injured Special Risk Class, or
103	Special Risk Administrative Support Class; or
104	2.  If the employment is split equally between or among
105	positions, the member may choose any single class of membership
106	for which he or she is eligible, whether or not the positions
107	are full-time positions. The member's choice must be made in
108	writing and remains in effect as long as the member is employed
109	equally in two or more positions.
110	(b)  Contributions shall be made and creditable service
111	shall be determined as follows:
112	1.  If the member is participating in the Regular Class,
113	retirement contributions shall be made on the total salary the
114	member has received for all covered employment, and at
115	retirement the member's average final compensation shall be
116	calculated on the total salary received from all covered
117	employment.
118	2.  If the member is participating in the Senior Management
119	Service Class, Special Risk Class, Qualifying Injured Special
120	Risk Class, or Special Risk Administrative Support Class,
121	retirement contributions shall be made only on the salary
122	received in the designated class of membership. At retirement,
123	the member's average final compensation shall be based only on
124	the salary received in the designated class of membership for
125	any period, including any period of dual employment.
126	Section 3.  Subsection (4) of section 121.0511, Florida
127	Statutes, is amended to read:
128	121.0511  Revocation of election and alternative plan.--The
129	governing body of any municipality or independent special
130	district that has elected to participate in the Florida
131	Retirement System may revoke its election in accordance with the
132	following procedure:
133	(4)  A copy of the proposed alternative plan and report
134	must be given to each representative of each certified
135	bargaining unit before adoption of a revocation resolution under
136	subsection (5). A municipality or independent special district
137	that has a collective bargaining agreement with a certified
138	bargaining agent may not exercise the right of revocation for
139	future members of any covered class within the unit without
140	negotiating such revocation and proposed alternative plan, as
141	provided in chapter 447, with each bargaining unit covering such
142	classes of employees. If more than one bargaining unit exists,
143	each unit must negotiate independently. The new retirement plan
144	for special risk employees or qualifying injured special risk
145	employees must provide benefits which meet or exceed the minimum
146	benefits contained in chapter plans under chapter 175 or chapter
147	185, as appropriate. For purposes of this subsection, "chapter
148	plans" means those plans having minimum benefits required
149	generally under these chapters, and not local law plans having
150	variant benefits permissible under s. 175.351 or s. 185.35.
151	Section 4.  Section 121.0517, Florida Statutes, is created
152	to read:
153	121.0517  Qualifying injured special risk membership.--
154	(1)  In creating the Qualifying Injured Special Risk Class
155	of membership within the Florida Retirement System, it is the
156	intent and purpose of the Legislature to recognize that persons
157	employed in the categories of law enforcement, firefighting, and
158	criminal detention positions are required as one of the
159	essential functions of their positions to perform work that is
160	unusually dangerous, that is physically demanding or arduous, or
161	that requires extraordinary agility. The Legislature further
162	recognizes that such persons, because their jobs expose them to
163	such risk, may suffer a disability in line of duty, as defined
164	in s. 121.021(13), that requires them to work in a new position
165	to continue to work for the same employer. It is the intent of
166	the Legislature that if such disability in line of duty is a
167	qualifying injury as defined in subsection (3), a special risk
168	member may be reclassified as a qualifying injured special risk
169	member. The purpose of the Qualifying Injured Special Risk Class
170	is to rectify situations in which a special risk member is not
171	receiving disability retirement benefits but, due to a
172	qualifying injury, will suffer a severe economic deprivation due
173	to the loss of future benefit accruals at the special risk
174	membership rate. Therefore, as a means of recognizing the
175	peculiar and special risk of this class of employees, it is the
176	intent and purpose of the Legislature to establish a class of
177	retirement membership that continues to award retirement
178	benefits at the special risk membership rate for those public
179	servants identified in this section who sustain qualifying
180	injuries in line of duty and to avoid penalizing them because of
181	qualifying injuries for which the members do not receive
182	disability retirement benefits. Nothing contained in this
183	section shall require ineligibility for qualifying injured
184	special risk membership or special risk membership upon reaching
185	age 55.
186	(2)  To be eligible for qualifying injured special risk
187	membership under this section:
188	(a)  The member must have already qualified for and be
189	actively participating in special risk membership under s.
190	121.0515 at the time of the qualifying injury and must not be
191	receiving disability retirement benefits as provided in s.
192	121.091(4).
193	(b)  Two licensed medical physicians, one of whom is a
194	primary treating physician of the member, must certify the
195	existence of the physical injury and medical condition that
196	constitute a qualifying injury as defined in subsection (3) and
197	that the member has reached Maximum Medical Improvement (MMI)
198	after July 1, 2007. The certifications from the licensed medical
199	physicians must include, at a minimum, all of the following:
200	1.  That the injury to the special risk member has resulted
201	in a physical loss, or loss of use, of one or both arms, legs,
202	hands, or feet.
203	2.  That this physical loss or loss of use is total and
204	permanent, except in the event of a physical injury to the
205	member's brain, in which event the loss of use is:
206	a.  Permanent and total with respect to at least one hand
207	or foot; or
208	b.  Permanent with at least 75-percent loss of motor
209	function with respect to at least one arm or leg.
210	3.  That this physical loss or loss of use renders the
211	member physically unable to perform the essential job functions
212	of his or her special risk position.
213	4.  That, notwithstanding this physical loss or loss of
214	use, the individual is able to perform the essential job
215	functions required by the member's new position.
216	5.  That use of artificial limbs is either not possible or
217	does not alter the member's ability to perform the essential job
218	functions of the member's position.
219	6.  That the physical loss or loss of use of one or both
220	arms, legs, hands, or feet is a direct result of a physical
221	injury and not of any mental, psychological, or emotional
222	injury.
223	(3)  For the purposes of this section, "qualifying injury"
224	means an injury in line of duty, as certified by the member's
225	employing agency, to a special risk member that does not result
226	in total and permanent disability as defined in s.
227	121.091(4)(b). An injury is not a qualifying injury unless the
228	injury is a physical injury to the member's physical body
229	resulting in a physical loss, or loss of use, of one or both
230	arms, legs, hands, or feet. Notwithstanding anything in this
231	section to the contrary, an injury that would otherwise qualify
232	as a qualifying injury shall not be considered a qualifying
233	injury if and when the member ceases employment with the
234	employer for whom he or she was providing special risk services
235	on the date the injury occurred.
236	(4)  Nothing in this section shall grant or create
237	additional rights for any individual to continued employment, to
238	be hired, or to be rehired with his or her employer that are not
239	already provided within the Florida Statutes, the State
240	Constitution, the Americans with Disabilities Act, if
241	applicable, or any other applicable state or federal law.
242	Section 5.  Paragraph (b) of subsection (3) of section
243	121.052, Florida Statutes, is amended to read:
244	121.052  Membership class of elected officers.--
245	(3)  PARTICIPATION AND WITHDRAWAL, GENERALLY.--Effective
246	July 1, 1990, participation in the Elected Officers' Class shall
247	be compulsory for elected officers listed in paragraphs (2)(a)-
248	(d) and (f) assuming office on or after said date, unless the
249	elected officer elects membership in another class or withdraws
250	from the Florida Retirement System as provided in paragraphs
251	(3)(a)-(d):
252	(b)  Upon assuming office, any sheriff shall have a period
253	of 6 months to notify the administrator of his or her decision
254	to remain or elect membership in the Special Risk Class or the
255	Qualifying Injured Special Risk Class in lieu of membership in
256	the Elected Officers' Class.
257	Section 6.  Paragraph (c) of subsection (6) of section
258	121.055, Florida Statutes, is amended to read:
259	121.055  Senior Management Service Class.--There is hereby
260	established a separate class of membership within the Florida
261	Retirement System to be known as the "Senior Management Service
262	Class," which shall become effective February 1, 1987.
263	(6)
264	(c)  Participation.--
265	1.  Any eligible employee who is employed on or before
266	February 1, 1987, may elect to participate in the optional
267	annuity program in lieu of participation in the Senior
268	Management Service Class. Such election shall be made in writing
269	and filed with the department and the personnel officer of the
270	employer on or before May 1, 1987. Any eligible employee who is
271	employed on or before February 1, 1987, and who fails to make an
272	election to participate in the optional annuity program by May
273	1, 1987, shall be deemed to have elected membership in the
274	Senior Management Service Class.
275	2.  Any employee who becomes eligible to participate in the
276	optional annuity program by reason of initial employment
277	commencing after February 1, 1987, may, within 90 days after the
278	date of commencement of employment, elect to participate in the
279	optional annuity program. Such election shall be made in writing
280	and filed with the personnel officer of the employer. Any
281	eligible employee who does not within 90 days after commencement
282	of such employment elect to participate in the optional annuity
283	program shall be deemed to have elected membership in the Senior
284	Management Service Class.
285	3.  A person who is appointed to a position in the Senior
286	Management Service Class and who is a member of an existing
287	retirement system or the Special Risk Class, Qualifying Injured
288	Special Risk Class, or Special Risk Administrative Support Class
289	Classes of the Florida Retirement System may elect to remain in
290	such system or class in lieu of participation in the Senior
291	Management Service Class or optional annuity program. Such
292	election shall be made in writing and filed with the department
293	and the personnel officer of the employer within 90 days after
294	of such appointment. Any eligible employee who fails to make an
295	election to participate in the existing system, the Special Risk
296	Class of the Florida Retirement System, the Qualifying Injured
297	Special Risk Class of the Florida Retirement System, the Special
298	Risk Administrative Support Class of the Florida Retirement
299	System, or the optional annuity program shall be deemed to have
300	elected membership in the Senior Management Service Class.
301	4.  Except as provided in subparagraph 5., an employee's
302	election to participate in the optional annuity program is
303	irrevocable as long as such employee continues to be employed in
304	an eligible position and continues to meet the eligibility
305	requirements set forth in this paragraph.
306	5.  Effective from July 1, 2002, through September 30,
307	2002, any active employee in a regularly established position
308	who has elected to participate in the Senior Management Service
309	Optional Annuity Program has one opportunity to choose to move
310	from the Senior Management Service Optional Annuity Program to
311	the Florida Retirement System defined benefit program.
312	a.  The election must be made in writing and must be filed
313	with the department and the personnel officer of the employer
314	before October 1, 2002, or, in the case of an active employee
315	who is on a leave of absence on July 1, 2002, within 90 days
316	after the conclusion of the leave of absence. This election is
317	irrevocable.
318	b.  The employee will receive service credit under the
319	defined benefit program of the Florida Retirement System equal
320	to his or her years of service under the Senior Management
321	Service Optional Annuity Program. The cost for such credit shall
322	be an amount representing the present value of that employee's
323	accumulated benefit obligation for the affected period of
324	service.
325	c.  The employee must transfer the total accumulated
326	employer contributions and earnings on deposit in his or her
327	Senior Management Service Optional Annuity Program account. If
328	the transferred amount is not sufficient to pay the amount due,
329	the employee must pay a sum representing the remainder of the
330	amount due. In no case may the employee retain any employer
331	contributions or earnings thereon from the Senior Management
332	Service Optional Annuity Program account.
333	Section 7.  Paragraph (a) of subsection (1), subsection
334	(2), paragraph (a) of subsection (3), and paragraphs (a) and (b)
335	of subsection (13) of section 121.091, Florida Statutes, are
336	amended to read:
337	121.091  Benefits payable under the system.--Benefits may
338	not be paid under this section unless the member has terminated
339	employment as provided in s. 121.021(39)(a) or begun
340	participation in the Deferred Retirement Option Program as
341	provided in subsection (13), and a proper application has been
342	filed in the manner prescribed by the department. The department
343	may cancel an application for retirement benefits when the
344	member or beneficiary fails to timely provide the information
345	and documents required by this chapter and the department's
346	rules. The department shall adopt rules establishing procedures
347	for application for retirement benefits and for the cancellation
348	of such application when the required information or documents
349	are not received.
350	(1)  NORMAL RETIREMENT BENEFIT.--Upon attaining his or her
351	normal retirement date, the member, upon application to the
352	administrator, shall receive a monthly benefit which shall begin
353	to accrue on the first day of the month of retirement and be
354	payable on the last day of that month and each month thereafter
355	during his or her lifetime. The normal retirement benefit,
356	including any past or additional retirement credit, may not
357	exceed 100 percent of the average final compensation. The amount
358	of monthly benefit shall be calculated as the product of A and
359	B, subject to the adjustment of C, if applicable, as set forth
360	below:
361	(a)1.  For creditable years of Regular Class service, A is
362	1.60 percent of the member's average final compensation, up to
363	the member's normal retirement date. Upon completion of the
364	first year after the normal retirement date, A is 1.63 percent
365	of the member's average final compensation. Following the second
366	year after the normal retirement date, A is 1.65 percent of the
367	member's average final compensation. Following the third year
368	after the normal retirement date, and for subsequent years, A is
369	1.68 percent of the member's average final compensation.
370	2.  For creditable years of special risk service or,
371	effective July 1, 2007, qualifying injured special risk service,
372	A is:
373	a.  Two percent of the member's average final compensation
374	for all creditable years prior to October 1, 1974;
375	b.  Three percent of the member's average final
376	compensation for all creditable years after September 30, 1974,
377	and before October 1, 1978;
378	c.  Two percent of the member's average final compensation
379	for all creditable years after September 30, 1978, and before
380	January 1, 1989;
381	d.  Two and two-tenths percent of the member's final
382	monthly compensation for all creditable years after December 31,
383	1988, and before January 1, 1990;
384	e.  Two and four-tenths percent of the member's average
385	final compensation for all creditable years after December 31,
386	1989, and before January 1, 1991;
387	f.  Two and six-tenths percent of the member's average
388	final compensation for all creditable years after December 31,
389	1990, and before January 1, 1992;
390	g.  Two and eight-tenths percent of the member's average
391	final compensation for all creditable years after December 31,
392	1991, and before January 1, 1993;
393	h.  Three percent of the member's average final
394	compensation for all creditable years after December 31, 1992;
395	and
396	i.  Three percent of the member's average final
397	compensation for all creditable years of service after September
398	30, 1978, and before January 1, 1993, for any special risk
399	member who retires after July 1, 2000, or any member of the
400	Special Risk Administrative Support Class entitled to retain the
401	special risk normal retirement date who was a member of the
402	Special Risk Class during the time period and who retires after
403	July 1, 2000.
404	3.  For creditable years of Senior Management Service Class
405	service after January 31, 1987, A is 2 percent;
406	4.  For creditable years of Elected Officers' Class service
407	as a Supreme Court Justice, district court of appeal judge,
408	circuit judge, or county court judge, A is 31/3 percent of the
409	member's average final compensation, and for all other
410	creditable service in such class, A is 3 percent of average
411	final compensation;
412	(2)  BENEFITS PAYABLE FOR DUAL NORMAL RETIREMENT AGES.--If
413	a member accumulates retirement benefits to commence at
414	different normal retirement ages by virtue of having performed
415	duties for an employer which would entitle him or her to
416	benefits as both a member of the Special Risk Class or the
417	Qualifying Injured Special Risk Class and a member of either the
418	Regular Class, Senior Management Service Class, or Elected
419	Officers' Class, the amount of benefits payable shall be
420	computed separately with respect to each such age and the sum of
421	such computed amounts shall be paid as provided in this section.
422	(3)  EARLY RETIREMENT BENEFIT.--Upon retirement on his or
423	her early retirement date, the member shall receive an immediate
424	monthly benefit that shall begin to accrue on the first day of
425	the month of the retirement date and be payable on the last day
426	of that month and each month thereafter during his or her
427	lifetime. Such benefit shall be calculated as follows:
428	(a)  The amount of each monthly payment shall be computed
429	in the same manner as for a normal retirement benefit, in
430	accordance with subsection (1), but shall be based on the
431	member's average monthly compensation and creditable service as
432	of the member's early retirement date. The benefit so computed
433	shall be reduced by five-twelfths of 1 percent for each complete
434	month by which the early retirement date precedes the normal
435	retirement date of age 62 for a member of the Regular Class,
436	Senior Management Service Class, or the Elected Officers' Class,
437	and age 55 for a member of the Special Risk Class or the
438	Qualifying Injured Special Risk Class, or age 52 if a Special
439	Risk member or Qualifying Injured Special Risk member has
440	completed 25 years of creditable service in accordance with s.
441	121.021(29)(b)3.
442	(13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
443	subject to the provisions of this section, the Deferred
444	Retirement Option Program, hereinafter referred to as the DROP,
445	is a program under which an eligible member of the Florida
446	Retirement System may elect to participate, deferring receipt of
447	retirement benefits while continuing employment with his or her
448	Florida Retirement System employer. The deferred monthly
449	benefits shall accrue in the System Trust Fund on behalf of the
450	participant, plus interest compounded monthly, for the specified
451	period of the DROP participation, as provided in paragraph (c).
452	Upon termination of employment, the participant shall receive
453	the total DROP benefits and begin to receive the previously
454	determined normal retirement benefits. Participation in the DROP
455	does not guarantee employment for the specified period of DROP.
456	Participation in the DROP by an eligible member beyond the
457	initial 60-month period as authorized in this subsection shall
458	be on an annual contractual basis for all participants.
459	(a)  Eligibility of member to participate in the DROP.--All
460	active Florida Retirement System members in a regularly
461	established position, and all active members of either the
462	Teachers' Retirement System established in chapter 238 or the
463	State and County Officers' and Employees' Retirement System
464	established in chapter 122 which systems are consolidated within
465	the Florida Retirement System under s. 121.011, are eligible to
466	elect participation in the DROP provided that:
467	1.  The member is not a renewed member of the Florida
468	Retirement System under s. 121.122, or a member of the State
469	Community College System Optional Retirement Program under s.
470	121.051, the Senior Management Service Optional Annuity Program
471	under s. 121.055, or the optional retirement program for the
472	State University System under s. 121.35.
473	2.  Except as provided in subparagraph 6., election to
474	participate is made within 12 months immediately following the
475	date on which the member first reaches normal retirement date,
476	or, for a member who reaches normal retirement date based on
477	service before he or she reaches age 62, or age 55 for Special
478	Risk Class members or Qualifying Injured Special Risk Class
479	members, election to participate may be deferred to the 12
480	months immediately following the date the member attains 57, or
481	age 52 for Special Risk Class members or Qualifying Injured
482	Special Risk Class members. For a member who first reached
483	normal retirement date or the deferred eligibility date
484	described above prior to the effective date of this section,
485	election to participate shall be made within 12 months after the
486	effective date of this section. A member who fails to make an
487	election within such 12-month limitation period shall forfeit
488	all rights to participate in the DROP. The member shall advise
489	his or her employer and the division in writing of the date on
490	which the DROP shall begin. Such beginning date may be
491	subsequent to the 12-month election period, but must be within
492	the 60-month or, with respect to members who are instructional
493	personnel employed by the Florida School for the Deaf and the
494	Blind and who have received authorization by the Board of
495	Trustees of the Florida School for the Deaf and the Blind to
496	participate in the DROP beyond 60 months, or who are
497	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
498	grades K-12 and who have received authorization by the district
499	school superintendent to participate in the DROP beyond 60
500	months, the 96-month limitation period as provided in
501	subparagraph (b)1. When establishing eligibility of the member
502	to participate in the DROP for the 60-month or, with respect to
503	members who are instructional personnel employed by the Florida
504	School for the Deaf and the Blind and who have received
505	authorization by the Board of Trustees of the Florida School for
506	the Deaf and the Blind to participate in the DROP beyond 60
507	months, or who are instructional personnel as defined in s.
508	1012.01(2)(a)-(d) in grades K-12 and who have received
509	authorization by the district school superintendent to
510	participate in the DROP beyond 60 months, the 96-month maximum
511	participation period, the member may elect to include or exclude
512	any optional service credit purchased by the member from the
513	total service used to establish the normal retirement date. A
514	member with dual normal retirement dates shall be eligible to
515	elect to participate in DROP within 12 months after attaining
516	normal retirement date in either class.
517	3.  The employer of a member electing to participate in the
518	DROP, or employers if dually employed, shall acknowledge in
519	writing to the division the date the member's participation in
520	the DROP begins and the date the member's employment and DROP
521	participation will terminate.
522	4.  Simultaneous employment of a participant by additional
523	Florida Retirement System employers subsequent to the
524	commencement of participation in the DROP shall be permissible
525	provided such employers acknowledge in writing a DROP
526	termination date no later than the participant's existing
527	termination date or the 60-month limitation period as provided
528	in subparagraph (b)1.
529	5.  A DROP participant may change employers while
530	participating in the DROP, subject to the following:
531	a.  A change of employment must take place without a break
532	in service so that the member receives salary for each month of
533	continuous DROP participation. If a member receives no salary
534	during a month, DROP participation shall cease unless the
535	employer verifies a continuation of the employment relationship
536	for such participant pursuant to s. 121.021(39)(b).
537	b.  Such participant and new employer shall notify the
538	division on forms required by the division as to the identity of
539	the new employer.
540	c.  The new employer shall acknowledge, in writing, the
541	participant's DROP termination date, which may be extended but
542	not beyond the original 60-month or, with respect to members who
543	are instructional personnel employed by the Florida School for
544	the Deaf and the Blind and who have received authorization by
545	the Board of Trustees of the Florida School for the Deaf and the
546	Blind to participate in the DROP beyond 60 months, or who are
547	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
548	grades K-12 and who have received authorization by the district
549	school superintendent to participate in the DROP beyond 60
550	months, the 96-month period provided in subparagraph (b)1.,
551	shall acknowledge liability for any additional retirement
552	contributions and interest required if the participant fails to
553	timely terminate employment, and shall be subject to the
554	adjustment required in sub-subparagraph (c)5.d.
555	6.  Effective July 1, 2001, for instructional personnel as
556	defined in s. 1012.01(2), election to participate in the DROP
557	shall be made at any time following the date on which the member
558	first reaches normal retirement date. The member shall advise
559	his or her employer and the division in writing of the date on
560	which the Deferred Retirement Option Program shall begin. When
561	establishing eligibility of the member to participate in the
562	DROP for the 60-month or, with respect to members who are
563	instructional personnel employed by the Florida School for the
564	Deaf and the Blind and who have received authorization by the
565	Board of Trustees of the Florida School for the Deaf and the
566	Blind to participate in the DROP beyond 60 months, or who are
567	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
568	grades K-12 and who have received authorization by the district
569	school superintendent to participate in the DROP beyond 60
570	months, the 96-month maximum participation period, as provided
571	in subparagraph (b)1., the member may elect to include or
572	exclude any optional service credit purchased by the member from
573	the total service used to establish the normal retirement date.
574	A member with dual normal retirement dates shall be eligible to
575	elect to participate in either class.
576	(b)  Participation in the DROP.--
577	1.  An eligible member may elect to participate in the DROP
578	for a period not to exceed a maximum of 60 calendar months or,
579	with respect to members who are instructional personnel employed
580	by the Florida School for the Deaf and the Blind and who have
581	received authorization by the Board of Trustees of the Florida
582	School for the Deaf and the Blind to participate in the DROP
583	beyond 60 months, or who are instructional personnel as defined
584	in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
585	authorization by the district school superintendent to
586	participate in the DROP beyond 60 calendar months, 96 calendar
587	months immediately following the date on which the member first
588	reaches his or her normal retirement date or the date to which
589	he or she is eligible to defer his or her election to
590	participate as provided in subparagraph (a)2. However, a member
591	who has reached normal retirement date prior to the effective
592	date of the DROP shall be eligible to participate in the DROP
593	for a period of time not to exceed 60 calendar months or, with
594	respect to members who are instructional personnel employed by
595	the Florida School for the Deaf and the Blind and who have
596	received authorization by the Board of Trustees of the Florida
597	School for the Deaf and the Blind to participate in the DROP
598	beyond 60 months, or who are instructional personnel as defined
599	in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
600	authorization by the district school superintendent to
601	participate in the DROP beyond 60 calendar months, 96 calendar
602	months immediately following the effective date of the DROP,
603	except a member of the Special Risk Class or the Qualifying
604	Injured Special Risk Class who has reached normal retirement
605	date prior to the effective date of the DROP and whose total
606	accrued value exceeds 75 percent of average final compensation
607	as of his or her effective date of retirement shall be eligible
608	to participate in the DROP for no more than 36 calendar months
609	immediately following the effective date of the DROP.
610	2.  Upon deciding to participate in the DROP, the member
611	shall submit, on forms required by the division:
612	a.  A written election to participate in the DROP;
613	b.  Selection of the DROP participation and termination
614	dates, which satisfy the limitations stated in paragraph (a) and
615	subparagraph 1. Such termination date shall be in a binding
616	letter of resignation with the employer, establishing a deferred
617	termination date. The member may change the termination date
618	within the limitations of subparagraph 1., but only with the
619	written approval of his or her employer;
620	c.  A properly completed DROP application for service
621	retirement as provided in this section; and
622	d.  Any other information required by the division.
623	3.  The DROP participant shall be a retiree under the
624	Florida Retirement System for all purposes, except for paragraph
625	(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
626	and 121.122. However, participation in the DROP does not alter
627	the participant's employment status and such employee shall not
628	be deemed retired from employment until his or her deferred
629	resignation is effective and termination occurs as provided in
630	s. 121.021(39).
631	4.  Elected officers shall be eligible to participate in
632	the DROP subject to the following:
633	a.  An elected officer who reaches normal retirement date
634	during a term of office may defer the election to participate in
635	the DROP until the next succeeding term in that office. Such
636	elected officer who exercises this option may participate in the
637	DROP for up to 60 calendar months or a period of no longer than
638	such succeeding term of office, whichever is less.
639	b.  An elected or a nonelected participant may run for a
640	term of office while participating in DROP and, if elected,
641	extend the DROP termination date accordingly, except, however,
642	if such additional term of office exceeds the 60-month
643	limitation established in subparagraph 1., and the officer does
644	not resign from office within such 60-month limitation, the
645	retirement and the participant's DROP shall be null and void as
646	provided in sub-subparagraph (c)5.d.
647	c.  An elected officer who is dually employed and elects to
648	participate in DROP shall be required to satisfy the definition
649	of termination within the 60-month or, with respect to members
650	who are instructional personnel employed by the Florida School
651	for the Deaf and the Blind and who have received authorization
652	by the Board of Trustees of the Florida School for the Deaf and
653	the Blind to participate in the DROP beyond 60 months, or who
654	are instructional personnel as defined in s. 1012.01(2)(a)-(d)
655	in grades K-12 and who have received authorization by the
656	district school superintendent to participate in the DROP beyond
657	60 months, the 96-month limitation period as provided in
658	subparagraph 1. for the nonelected position and may continue
659	employment as an elected officer as provided in s. 121.053. The
660	elected officer will be enrolled as a renewed member in the
661	Elected Officers' Class or the Regular Class, as provided in ss.
662	121.053 and 121.122, on the first day of the month after
663	termination of employment in the nonelected position and
664	termination of DROP. Distribution of the DROP benefits shall be
665	made as provided in paragraph (c).
666	Section 8.  Section 121.23, Florida Statutes, is amended to
667	read:
668	121.23  Disability retirement, and special risk membership,
669	and qualifying injured special risk membership applications;
670	Retirement Commission; powers and duties; judicial review.--The
671	provisions of this section apply to all proceedings in which the
672	administrator has made a written final decision on the merits
673	respecting applications for disability retirement, reexamination
674	of retired members receiving disability benefits, applications
675	for special risk membership and qualifying injured special risk
676	membership, and reexamination of special risk members in the
677	Florida Retirement System. The jurisdiction of the State
678	Retirement Commission under this section shall be limited to
679	written final decisions of the administrator on the merits.
680	(1)  In accordance with the rules of procedure adopted by
681	the Department of Management Services, the administrator shall:
682	(a)  Give reasonable notice of his or her proposed action,
683	or decision to refuse action, together with a summary of the
684	factual, legal, and policy grounds therefor.
685	(b)  Give affected members, or their counsel, an
686	opportunity to present to the division written evidence in
687	opposition to the proposed action or refusal to act or a written
688	statement challenging the grounds upon which the administrator
689	has chosen to justify his or her action or inaction.
690	(c)  If the objections of the member are overruled, provide
691	a written explanation within 21 days.
692	(2)  A member shall be entitled to a hearing before the
693	State Retirement Commission pursuant to ss. 120.569 and
694	120.57(1) on the merits of any written adverse decision of the
695	administrator, if he or she files with the commission a written
696	request for such hearing within 21 days after receipt of such
697	written decision from the administrator. For the purpose of such
698	hearings, the commission shall be an "agency head" as defined by
699	s. 120.52.
700	(a)  The commission shall have the authority to issue
701	orders as a result of a hearing that shall be binding on all
702	parties to the dispute. The commission may order any action that
703	it deems appropriate. Any disability retirement order of the
704	commission issued pursuant to this subsection which sustains the
705	application of the member may include an amount, to be
706	determined by the commission, for reasonable attorney's fees and
707	taxable costs, which shall be calculated in accordance with the
708	statewide uniform guidelines for taxation of costs in civil
709	actions. The amount of the attorney's fee may not exceed 50
710	percent of the initial yearly benefit awarded under s.
711	121.091(4). In cases involving disability retirement, the State
712	Retirement Commission shall require the member to present
713	competent medical evidence and may require vocational evidence
714	before awarding disability retirement benefits.
715	(b)  Any person who fails to appear in response to a
716	subpoena, answer any question, or produce any evidence pertinent
717	to any hearing or who knowingly gives false testimony therein
718	commits a misdemeanor of the first degree, punishable as
719	provided in s. 775.082 or s. 775.083.
720	(3)  The exercise by the State Retirement Commission of the
721	powers, duties, and functions prescribed by this section shall
722	be reviewable by the district court of appeal.
723	(4)  The exercise by the State Retirement Commission of the
724	powers, duties, and functions prescribed by this section shall
725	be reviewable by the judiciary on the grounds that:
726	(a)  The commission did not afford a fair and equitable
727	hearing in accordance with chapter 120;
728	(b)  The decision of the commission was not in accordance
729	with existing statutes or rules and regulations promulgated
730	thereunder; or
731	(c)  The decision of the commission was not based on
732	substantial evidence.
733
734	The court shall not, however, substitute its judgment for that
735	of the commission as to the weight of the evidence on any
736	disputed finding of fact where the decision of the commission
737	was supported by substantial evidence; nor shall the court
738	substitute its judgment for that of the commission on an issue
739	of discretion.
740	Section 9.  Paragraph (c) of subsection (3) of section
741	121.4501, Florida Statutes, is amended to read:
742	121.4501  Public Employee Optional Retirement Program.--
743	(3)  ELIGIBILITY; RETIREMENT SERVICE CREDIT.--
744	(c)1.  Notwithstanding paragraph (b), each eligible
745	employee who elects to participate in the Public Employee
746	Optional Retirement Program and establishes one or more
747	individual participant accounts under the optional program may
748	elect to transfer to the optional program a sum representing the
749	present value of the employee's accumulated benefit obligation
750	under the defined benefit retirement program of the Florida
751	Retirement System. Upon such transfer, all service credit
752	previously earned under the defined benefit program of the
753	Florida Retirement System shall be nullified for purposes of
754	entitlement to a future benefit under the defined benefit
755	program of the Florida Retirement System. A participant is
756	precluded from transferring the accumulated benefit obligation
757	balance from the defined benefit program upon the expiration of
758	the period afforded to enroll in the optional program.
759	2.  For purposes of this subsection, the present value of
760	the member's accumulated benefit obligation is based upon the
761	member's estimated creditable service and estimated average
762	final compensation under the defined benefit program, subject to
763	recomputation under subparagraph 3. For state employees
764	enrolling under subparagraph (4)(a)1., initial estimates will be
765	based upon creditable service and average final compensation as
766	of midnight on June 30, 2002; for district school board
767	employees enrolling under subparagraph (4)(b)1., initial
768	estimates will be based upon creditable service and average
769	final compensation as of midnight on September 30, 2002; and for
770	local government employees enrolling under subparagraph
771	(4)(c)1., initial estimates will be based upon creditable
772	service and average final compensation as of midnight on
773	December 31, 2002. The dates respectively specified above shall
774	be construed as the "estimate date" for these employees. The
775	actuarial present value of the employee's accumulated benefit
776	obligation shall be based on the following:
777	a.  The discount rate and other relevant actuarial
778	assumptions used to value the Florida Retirement System Trust
779	Fund at the time the amount to be transferred is determined,
780	consistent with the factors provided in sub-subparagraphs b. and
781	c.
782	b.  A benefit commencement age, based on the member's
783	estimated creditable service as of the estimate date. The
784	benefit commencement age shall be the younger of the following,
785	but shall not be younger than the member's age as of the
786	estimate date:
787	(I)  Age 62; or
788	(II)  The age the member would attain if the member
789	completed 30 years of service with an employer, assuming the
790	member worked continuously from the estimate date, and
791	disregarding any vesting requirement that would otherwise apply
792	under the defined benefit program of the Florida Retirement
793	System.
794	c.  For members of the Special Risk Class and the
795	Qualifying Injured Special Risk Class and for members of the
796	Special Risk Administrative Support Class entitled to retain
797	special risk normal retirement date, the benefit commencement
798	age shall be the younger of the following, but shall not be
799	younger than the member's age as of the estimate date:
800	(I)  Age 55; or
801	(II)  The age the member would attain if the member
802	completed 25 years of service with an employer, assuming the
803	member worked continuously from the estimate date, and
804	disregarding any vesting requirement that would otherwise apply
805	under the defined benefit program of the Florida Retirement
806	System.
807	d.  The calculation shall disregard vesting requirements
808	and early retirement reduction factors that would otherwise
809	apply under the defined benefit retirement program.
810	3.  For each participant who elects to transfer moneys from
811	the defined benefit program to his or her account in the
812	optional program, the division shall recompute the amount
813	transferred under subparagraph 2. not later than 60 days after
814	the actual transfer of funds based upon the participant's actual
815	creditable service and actual final average compensation as of
816	the initial date of participation in the optional program. If
817	the recomputed amount differs from the amount transferred under
818	subparagraph 2. by $10 or more, the division shall:
819	a.  Transfer, or cause to be transferred, from the Florida
820	Retirement System Trust Fund to the participant's account in the
821	optional program the excess, if any, of the recomputed amount
822	over the previously transferred amount together with interest
823	from the initial date of transfer to the date of transfer under
824	this subparagraph, based upon effective annual interest equal to
825	the assumed return on the actuarial investment which was used in
826	the most recent actuarial valuation of the system, compounded
827	annually.
828	b.  Transfer, or cause to be transferred, from the
829	participant's account to the Florida Retirement System Trust
830	Fund the excess, if any, of the previously transferred amount
831	over the recomputed amount, together with interest from the
832	initial date of transfer to the date of transfer under this
833	subparagraph, based upon 6 percent effective annual interest,
834	compounded annually, pro rata based on the participant's
835	allocation plan.
836	4.  As directed by the participant, the board shall
837	transfer or cause to be transferred the appropriate amounts to
838	the designated accounts. The board shall establish transfer
839	procedures by rule, but the actual transfer shall not be later
840	than 30 days after the effective date of the member's
841	participation in the optional program unless the major financial
842	markets for securities available for a transfer are seriously
843	disrupted by an unforeseen event which also causes the
844	suspension of trading on any national securities exchange in the
845	country where the securities were issued. In that event, such
846	30-day period of time may be extended by a resolution of the
847	trustees. Transfers are not commissionable or subject to other
848	fees and may be in the form of securities or cash as determined
849	by the state board. Such securities shall be valued as of the
850	date of receipt in the participant's account.
851	5.  If the board or the division receives notification from
852	the United States Internal Revenue Service that this paragraph
853	or any portion of this paragraph will cause the retirement
854	system, or a portion thereof, to be disqualified for tax
855	purposes under the Internal Revenue Code, then the portion that
856	will cause the disqualification does not apply. Upon such
857	notice, the state board and the division shall notify the
858	presiding officers of the Legislature.
859	Section 10.  Subsection (3) of section 121.71, Florida
860	Statutes, is amended to read:
861	121.71  Uniform rates; process; calculations; levy.--
862	(3)  Required employer retirement contribution rates for
863	each membership class and subclass of the Florida Retirement
864	System for both retirement plans are as follows:
865
	Membership Class Percentage of Gross Compensation,Effective July 1, 2006 Percentage of Gross Compensation,Effective July 1, 2007
866
	Regular Class 8.69% 9.55%
867
	Special Risk Class and Qualifying Injured Special Risk Class 19.76% 21.96%
868
	Special Risk Administrative   Support Class 11.39% 12.65%
869
	Elected Officers' Class -   Legislators, Governor,   Lt. Governor,   Cabinet Officers,   State Attorneys,   Public Defenders 13.32% 14.80%
870
	Elected Officers' Class -  Justices, Judges 18.40% 20.44%
871
	Elected Officers' Class -  County Elected Officers 15.37% 17.08%
872
	Senior Management Class 11.96% 13.29%
873
	DROP 9.80% 10.89%
874
875	Section 11.  Subsection (4) of section 121.72, Florida
876	Statutes, is amended to read:
877	121.72  Allocations to optional retirement program
878	participant accounts; percentage amounts.--
879	(4)  Effective July 1, 2002, and effective July 1, 2007,
880	for the Qualifying Injured Special Risk Class, allocations from
881	the Florida Retirement System Contributions Clearing Trust Fund
882	to optional retirement program participant accounts shall be as
883	follows:
884
	Membership Class Percentage of Gross Compensation
885
	Regular Class 9.00%
886
	Special Risk Class and Qualifying Injured Special Risk Class 20.00%
887
	Special Risk Administrative Support Class 11.35%
888
	Elected Officers' Class -   Legislators, Governor,   Lt. Governor, Cabinet Officers,   State Attorneys, Public Defenders 13.40%
889
	Elected Officers' Class -   Justices, Judges 18.90%
890
	Elected Officers' Class -   County Elected Officers 16.20%
891
	Senior Management Service Class 10.95%
892
893	Section 12.  Subsection (3) of section 121.73, Florida
894	Statutes, is amended to read:
895	121.73  Allocations for optional retirement program
896	participant disability coverage; percentage amounts.--
897	(3)  Effective July 1, 2002, and effective July 1, 2007,
898	for the Qualifying Injured Special Risk Class, allocations from
899	the Florida Retirement System Contributions FRS Contribution
900	Clearing Trust Fund to provide disability coverage for
901	participants in the optional retirement program, and to offset
902	the costs of administering said coverage, shall be as follows:
903
	Membership Class Percentage of Gross Compensation
904
	Regular Class 0.25%
905
	Special Risk Class and Qualifying Injured Special Risk Class 1.33%
906
	Special Risk Administrative Support Class 0.45%
907
	Elected Officers' Class -   Legislators, Governor,   Lt. Governor, Cabinet Officers,   State Attorneys, Public Defenders 0.41%
908
	Elected Officers' Class -   Justices, Judges 0.73%
909
	Elected Officers' Class -   County Elected Officers 0.41%
910
	Senior Management Service Class 0.26%
911
912	Section 13.  This act shall take effect July 1, 2007.

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