CS/HB 821

1	A bill to be entitled
2	An act relating to retirement; providing a short title;
3	providing legislative intent; providing a statement of
4	important state interest; amending s. 121.021, F.S.;
5	revising definitions; amending s. 121.051, F.S.;
6	conforming provisions relating to dual employment;
7	amending s. 121.0511, F.S.; revising procedure by which a
8	municipality or independent special district may revoke
9	its election to participate in the Florida Retirement
10	System; creating s. 121.0517, F.S.; providing legislative
11	intent; creating the Qualifying Injured Special Risk Class
12	of membership within the Florida Retirement System;
13	providing eligibility requirements for membership;
14	providing medical certification requirements; defining
15	"qualifying injury"; prohibiting the grant or creation of
16	additional rights; amending s. 121.052, F.S.; authorizing
17	sheriffs to remain or elect membership in the class;
18	amending s. 121.055, F.S.; authorizing a person appointed
19	to a position in the Senior Management Service Class who
20	is a member of the Qualifying Injured Special Risk Class
21	to remain in the latter class; amending s. 121.091, F.S.;
22	providing an average final compensation formula for
23	members of the Qualifying Injured Special Risk Class;
24	providing for computation of benefits payable for dual
25	normal retirement ages and early retirement benefits;
26	providing for DROP participation; amending s. 121.23,
27	F.S.; providing applicability to proceedings in which the
28	administrator has made written final edits on the merits
29	respecting applications for qualifying injured special
30	risk membership; amending s. 121.4501, F.S.; providing the
31	benefit commencement age for members of the Qualifying
32	Injured Special Risk Class; amending s. 121.71, F.S.;
33	providing for employer retirement contribution rates for
34	the Qualifying Injured Special Risk Class; amending ss.
35	121.72 and 121.73, F.S.; providing gross compensation
36	percentages for the Qualifying Injured Special Risk Class
37	for allocations from the Florida Retirement System
38	Contributions Clearing Trust Fund for optional retirement
39	program participant accounts and participant disability
40	coverage; providing an effective date.
41
42	Be It Enacted by the Legislature of the State of Florida:
43
44	Section 1.  This act may be cited as the "Adam Pierce
45	Special Risk Retirement Act."
46	Section 2.  It is declared by the Legislature that persons
47	employed in law enforcement, firefighting, and criminal
48	detention positions perform state and municipal functions; that
49	it is their duty to protect life and property at their own risk
50	and peril; that it is their duty to continuously instruct school
51	personnel, public officials, and private citizens about safety;
52	and that their activities are vital to public safety. Therefore,
53	the Legislature declares that it is a proper and legitimate
54	state purpose to provide a uniform retirement system for the
55	benefit of persons employed in law enforcement, firefighting,
56	and criminal detention positions and intends, in implementing
57	the provisions of s. 14, Art. X of the State Constitution as
58	they relate to pension trust fund systems and plans, that such
59	retirement systems or plans be managed, administered, operated,
60	and funded in such manner as to maximize the protection of
61	pension trust funds. Pursuant to s. 18, Art. VII of the State
62	Constitution, the Legislature determines and declares that the
63	provisions of this act fulfill an important state interest.
64	Section 3.  Subsection (12) and paragraph (b) of subsection
65	(29) of section 121.021, Florida Statutes, are amended, and
66	paragraph (f) is added to subsection (15) of that section, to
67	read:
68	121.021  Definitions.--The following words and phrases as
69	used in this chapter have the respective meanings set forth
70	unless a different meaning is plainly required by the context:
71	(12)  "Member" means any officer or employee who is covered
72	or who becomes covered under this system in accordance with this
73	chapter. On and after December 1, 1970, all new members and
74	those members transferring from existing systems shall be
75	divided into the following classes: "Special Risk Class," as
76	provided in s. 121.0515(2); "Special Risk Administrative Support
77	Class," as provided in s. 121.0515(7); "Qualifying Injured
78	Special Risk Class," as provided in s. 121.0517; "Elected
79	Officers' Class," as provided in s. 121.052; "Senior Management
80	Service Class," as provided in s. 121.055; and "Regular Class,"
81	which consists of all members who are not in the Special Risk
82	Class, Special Risk Administrative Support Class, Qualifying
83	Injured Special Risk Class, Elected Officers' Class, or Senior
84	Management Service Class.
85	(15)
86	(f)  Effective July 1, 2007, "qualifying injured special
87	risk member" or "qualifying injured special risk employee"
88	includes any member who is employed as a law enforcement
89	officer, as a firefighter, or in a criminal detention position
90	and meets the criteria set forth in s. 121.0517.
91	(29)  "Normal retirement date" means the first day of any
92	month following the date a member attains one of the following
93	statuses:
94	(b)  If a Special Risk Class or Qualifying Injured Special
95	Risk Class member, the member:
96	1.  Completes 6 or more years of creditable service in the
97	Special Risk Class, the Qualifying Injured Special Risk Class,
98	or a combination of the two and attains age 55;
99	2.  Completes 25 years of creditable service in the Special
100	Risk Class, the Qualifying Injured Special Risk Class, or a
101	combination of the two, regardless of age; or
102	3.  Completes 25 years of creditable service and attains
103	age 52, which service may include a maximum of 4 years of
104	military service credit as long as such credit is not claimed
105	under any other system and the remaining years are in the
106	Special Risk Class, the Qualifying Injured Special Risk Class,
107	or a combination of the two.
108
109	"Normal retirement age" is attained on the "normal retirement
110	date."
111	Section 4.  Subsection (9) of section 121.051, Florida
112	Statutes, is amended to read:
113	121.051  Participation in the system.--
114	(9)  DUAL EMPLOYMENT.--A member may not participate in more
115	than one state-administered retirement system, plan, or class of
116	membership simultaneously. Pursuant thereto:
117	(a)  With respect to any member who is not eligible to
118	participate in the Elected Officers' Class, but who is
119	simultaneously employed in two or more positions covered by
120	different Florida Retirement System classes:
121	1.  The member must participate in the membership class for
122	the position in which he or she is employed the majority of the
123	time: the Regular Class, Senior Management Service Class,
124	Special Risk Class, Qualifying Injured Special Risk Class, or
125	Special Risk Administrative Support Class; or
126	2.  If the employment is split equally between or among
127	positions, the member may choose any single class of membership
128	for which he or she is eligible, whether or not the positions
129	are full-time positions. The member's choice must be made in
130	writing and remains in effect as long as the member is employed
131	equally in two or more positions.
132	(b)  Contributions shall be made and creditable service
133	shall be determined as follows:
134	1.  If the member is participating in the Regular Class,
135	retirement contributions shall be made on the total salary the
136	member has received for all covered employment, and at
137	retirement the member's average final compensation shall be
138	calculated on the total salary received from all covered
139	employment.
140	2.  If the member is participating in the Senior Management
141	Service Class, Special Risk Class, Qualifying Injured Special
142	Risk Class, or Special Risk Administrative Support Class,
143	retirement contributions shall be made only on the salary
144	received in the designated class of membership. At retirement,
145	the member's average final compensation shall be based only on
146	the salary received in the designated class of membership for
147	any period, including any period of dual employment.
148	Section 5.  Subsection (4) of section 121.0511, Florida
149	Statutes, is amended to read:
150	121.0511  Revocation of election and alternative plan.--The
151	governing body of any municipality or independent special
152	district that has elected to participate in the Florida
153	Retirement System may revoke its election in accordance with the
154	following procedure:
155	(4)  A copy of the proposed alternative plan and report
156	must be given to each representative of each certified
157	bargaining unit before adoption of a revocation resolution under
158	subsection (5). A municipality or independent special district
159	that has a collective bargaining agreement with a certified
160	bargaining agent may not exercise the right of revocation for
161	future members of any covered class within the unit without
162	negotiating such revocation and proposed alternative plan, as
163	provided in chapter 447, with each bargaining unit covering such
164	classes of employees. If more than one bargaining unit exists,
165	each unit must negotiate independently. The new retirement plan
166	for special risk employees or qualifying injured special risk
167	employees must provide benefits which meet or exceed the minimum
168	benefits contained in chapter plans under chapter 175 or chapter
169	185, as appropriate. For purposes of this subsection, "chapter
170	plans" means those plans having minimum benefits required
171	generally under these chapters, and not local law plans having
172	variant benefits permissible under s. 175.351 or s. 185.35.
173	Section 6.  Section 121.0517, Florida Statutes, is created
174	to read:
175	121.0517  Qualifying injured special risk membership.--
176	(1)  In creating the Qualifying Injured Special Risk Class
177	of membership within the Florida Retirement System, it is the
178	intent and purpose of the Legislature to recognize that persons
179	employed in the categories of law enforcement, firefighting, and
180	criminal detention positions are required as one of the
181	essential functions of their positions to perform work that is
182	unusually dangerous, that is physically demanding or arduous, or
183	that requires extraordinary agility. The Legislature further
184	recognizes that such persons, because their jobs expose them to
185	such risk, may suffer a disability in line of duty, as defined
186	in s. 121.021(13), that requires them to work in a new position
187	to continue to work for the same employer. It is the intent of
188	the Legislature that if such disability in line of duty is a
189	qualifying injury as defined in subsection (3), a special risk
190	member may be reclassified as a qualifying injured special risk
191	member. The purpose of the Qualifying Injured Special Risk Class
192	is to rectify situations in which a special risk member is not
193	receiving disability retirement benefits but, due to a
194	qualifying injury, will suffer a severe economic deprivation due
195	to the loss of future benefit accruals at the special risk
196	membership rate. Therefore, as a means of recognizing the
197	peculiar and special risk of this class of employees, it is the
198	intent and purpose of the Legislature to establish a class of
199	retirement membership that continues to award retirement
200	benefits at the special risk membership rate for those public
201	servants identified in this section who sustain qualifying
202	injuries in line of duty and to avoid penalizing them because of
203	qualifying injuries for which the members do not receive
204	disability retirement benefits. Nothing contained in this
205	section shall require ineligibility for qualifying injured
206	special risk membership or special risk membership upon reaching
207	age 55.
208	(2)  To be eligible for qualifying injured special risk
209	membership under this section:
210	(a)  The member must have already qualified for and be
211	actively participating in special risk membership under s.
212	121.0515 at the time of the qualifying injury and must not be
213	receiving disability retirement benefits as provided in s.
214	121.091(4).
215	(b)  Two licensed medical physicians, one of whom is a
216	primary treating physician of the member, must certify the
217	existence of the physical injury and medical condition that
218	constitute a qualifying injury as defined in subsection (3) and
219	that the member has reached Maximum Medical Improvement (MMI)
220	after July 1, 2007. The certifications from the licensed medical
221	physicians must include, at a minimum, all of the following:
222	1.  That the injury to the special risk member has resulted
223	in a physical loss, or loss of use, of one or both arms, legs,
224	hands, or feet.
225	2.  That this physical loss or loss of use is total and
226	permanent, except in the event of a physical injury to the
227	member's brain, in which event the loss of use is:
228	a.  Permanent and total with respect to at least one hand
229	or foot; or
230	b.  Permanent with at least 75-percent loss of motor
231	function with respect to at least one arm or leg.
232	3.  That this physical loss or loss of use renders the
233	member physically unable to perform the essential job functions
234	of his or her special risk position.
235	4.  That, notwithstanding this physical loss or loss of
236	use, the individual is able to perform the essential job
237	functions required by the member's new position.
238	5.  That use of artificial limbs is either not possible or
239	does not alter the member's ability to perform the essential job
240	functions of the member's position.
241	6.  That the physical loss or loss of use of one or both
242	arms, legs, hands, or feet is a direct result of a physical
243	injury and not of any mental, psychological, or emotional
244	injury.
245	(3)  For the purposes of this section, "qualifying injury"
246	means an injury in line of duty, as certified by the member's
247	employing agency, to a special risk member that does not result
248	in total and permanent disability as defined in s.
249	121.091(4)(b). An injury is not a qualifying injury unless the
250	injury is a physical injury to the member's physical body
251	resulting in a physical loss, or loss of use, of one or both
252	arms, legs, hands, or feet. Notwithstanding anything in this
253	section to the contrary, an injury that would otherwise qualify
254	as a qualifying injury shall not be considered a qualifying
255	injury if and when the member ceases employment with the
256	employer for whom he or she was providing special risk services
257	on the date the injury occurred.
258	(4)  Nothing in this section shall grant or create
259	additional rights for any individual to continued employment, to
260	be hired, or to be rehired with his or her employer that are not
261	already provided within the Florida Statutes, the State
262	Constitution, the Americans with Disabilities Act, if
263	applicable, or any other applicable state or federal law.
264	Section 7.  Paragraph (b) of subsection (3) of section
265	121.052, Florida Statutes, is amended to read:
266	121.052  Membership class of elected officers.--
267	(3)  PARTICIPATION AND WITHDRAWAL, GENERALLY.--Effective
268	July 1, 1990, participation in the Elected Officers' Class shall
269	be compulsory for elected officers listed in paragraphs (2)(a)-
270	(d) and (f) assuming office on or after said date, unless the
271	elected officer elects membership in another class or withdraws
272	from the Florida Retirement System as provided in paragraphs
273	(3)(a)-(d):
274	(b)  Upon assuming office, any sheriff shall have a period
275	of 6 months to notify the administrator of his or her decision
276	to remain or elect membership in the Special Risk Class or the
277	Qualifying Injured Special Risk Class in lieu of membership in
278	the Elected Officers' Class.
279	Section 8.  Paragraph (c) of subsection (6) of section
280	121.055, Florida Statutes, is amended to read:
281	121.055  Senior Management Service Class.--There is hereby
282	established a separate class of membership within the Florida
283	Retirement System to be known as the "Senior Management Service
284	Class," which shall become effective February 1, 1987.
285	(6)
286	(c)  Participation.--
287	1.  Any eligible employee who is employed on or before
288	February 1, 1987, may elect to participate in the optional
289	annuity program in lieu of participation in the Senior
290	Management Service Class. Such election shall be made in writing
291	and filed with the department and the personnel officer of the
292	employer on or before May 1, 1987. Any eligible employee who is
293	employed on or before February 1, 1987, and who fails to make an
294	election to participate in the optional annuity program by May
295	1, 1987, shall be deemed to have elected membership in the
296	Senior Management Service Class.
297	2.  Any employee who becomes eligible to participate in the
298	optional annuity program by reason of initial employment
299	commencing after February 1, 1987, may, within 90 days after the
300	date of commencement of employment, elect to participate in the
301	optional annuity program. Such election shall be made in writing
302	and filed with the personnel officer of the employer. Any
303	eligible employee who does not within 90 days after commencement
304	of such employment elect to participate in the optional annuity
305	program shall be deemed to have elected membership in the Senior
306	Management Service Class.
307	3.  A person who is appointed to a position in the Senior
308	Management Service Class and who is a member of an existing
309	retirement system or the Special Risk Class, Qualifying Injured
310	Special Risk Class, or Special Risk Administrative Support Class
311	Classes of the Florida Retirement System may elect to remain in
312	such system or class in lieu of participation in the Senior
313	Management Service Class or optional annuity program. Such
314	election shall be made in writing and filed with the department
315	and the personnel officer of the employer within 90 days after
316	of such appointment. Any eligible employee who fails to make an
317	election to participate in the existing system, the Special Risk
318	Class of the Florida Retirement System, the Qualifying Injured
319	Special Risk Class of the Florida Retirement System, the Special
320	Risk Administrative Support Class of the Florida Retirement
321	System, or the optional annuity program shall be deemed to have
322	elected membership in the Senior Management Service Class.
323	4.  Except as provided in subparagraph 5., an employee's
324	election to participate in the optional annuity program is
325	irrevocable as long as such employee continues to be employed in
326	an eligible position and continues to meet the eligibility
327	requirements set forth in this paragraph.
328	5.  Effective from July 1, 2002, through September 30,
329	2002, any active employee in a regularly established position
330	who has elected to participate in the Senior Management Service
331	Optional Annuity Program has one opportunity to choose to move
332	from the Senior Management Service Optional Annuity Program to
333	the Florida Retirement System defined benefit program.
334	a.  The election must be made in writing and must be filed
335	with the department and the personnel officer of the employer
336	before October 1, 2002, or, in the case of an active employee
337	who is on a leave of absence on July 1, 2002, within 90 days
338	after the conclusion of the leave of absence. This election is
339	irrevocable.
340	b.  The employee will receive service credit under the
341	defined benefit program of the Florida Retirement System equal
342	to his or her years of service under the Senior Management
343	Service Optional Annuity Program. The cost for such credit shall
344	be an amount representing the present value of that employee's
345	accumulated benefit obligation for the affected period of
346	service.
347	c.  The employee must transfer the total accumulated
348	employer contributions and earnings on deposit in his or her
349	Senior Management Service Optional Annuity Program account. If
350	the transferred amount is not sufficient to pay the amount due,
351	the employee must pay a sum representing the remainder of the
352	amount due. In no case may the employee retain any employer
353	contributions or earnings thereon from the Senior Management
354	Service Optional Annuity Program account.
355	Section 9.  Paragraph (a) of subsection (1), subsection
356	(2), paragraph (a) of subsection (3), and paragraphs (a) and (b)
357	of subsection (13) of section 121.091, Florida Statutes, are
358	amended to read:
359	121.091  Benefits payable under the system.--Benefits may
360	not be paid under this section unless the member has terminated
361	employment as provided in s. 121.021(39)(a) or begun
362	participation in the Deferred Retirement Option Program as
363	provided in subsection (13), and a proper application has been
364	filed in the manner prescribed by the department. The department
365	may cancel an application for retirement benefits when the
366	member or beneficiary fails to timely provide the information
367	and documents required by this chapter and the department's
368	rules. The department shall adopt rules establishing procedures
369	for application for retirement benefits and for the cancellation
370	of such application when the required information or documents
371	are not received.
372	(1)  NORMAL RETIREMENT BENEFIT.--Upon attaining his or her
373	normal retirement date, the member, upon application to the
374	administrator, shall receive a monthly benefit which shall begin
375	to accrue on the first day of the month of retirement and be
376	payable on the last day of that month and each month thereafter
377	during his or her lifetime. The normal retirement benefit,
378	including any past or additional retirement credit, may not
379	exceed 100 percent of the average final compensation. The amount
380	of monthly benefit shall be calculated as the product of A and
381	B, subject to the adjustment of C, if applicable, as set forth
382	below:
383	(a)1.  For creditable years of Regular Class service, A is
384	1.60 percent of the member's average final compensation, up to
385	the member's normal retirement date. Upon completion of the
386	first year after the normal retirement date, A is 1.63 percent
387	of the member's average final compensation. Following the second
388	year after the normal retirement date, A is 1.65 percent of the
389	member's average final compensation. Following the third year
390	after the normal retirement date, and for subsequent years, A is
391	1.68 percent of the member's average final compensation.
392	2.  For creditable years of special risk service or,
393	effective July 1, 2007, qualifying injured special risk service,
394	A is:
395	a.  Two percent of the member's average final compensation
396	for all creditable years prior to October 1, 1974;
397	b.  Three percent of the member's average final
398	compensation for all creditable years after September 30, 1974,
399	and before October 1, 1978;
400	c.  Two percent of the member's average final compensation
401	for all creditable years after September 30, 1978, and before
402	January 1, 1989;
403	d.  Two and two-tenths percent of the member's final
404	monthly compensation for all creditable years after December 31,
405	1988, and before January 1, 1990;
406	e.  Two and four-tenths percent of the member's average
407	final compensation for all creditable years after December 31,
408	1989, and before January 1, 1991;
409	f.  Two and six-tenths percent of the member's average
410	final compensation for all creditable years after December 31,
411	1990, and before January 1, 1992;
412	g.  Two and eight-tenths percent of the member's average
413	final compensation for all creditable years after December 31,
414	1991, and before January 1, 1993;
415	h.  Three percent of the member's average final
416	compensation for all creditable years after December 31, 1992;
417	and
418	i.  Three percent of the member's average final
419	compensation for all creditable years of service after September
420	30, 1978, and before January 1, 1993, for any special risk
421	member who retires after July 1, 2000, or any member of the
422	Special Risk Administrative Support Class entitled to retain the
423	special risk normal retirement date who was a member of the
424	Special Risk Class during the time period and who retires after
425	July 1, 2000.
426	3.  For creditable years of Senior Management Service Class
427	service after January 31, 1987, A is 2 percent;
428	4.  For creditable years of Elected Officers' Class service
429	as a Supreme Court Justice, district court of appeal judge,
430	circuit judge, or county court judge, A is 31/3 percent of the
431	member's average final compensation, and for all other
432	creditable service in such class, A is 3 percent of average
433	final compensation;
434	(2)  BENEFITS PAYABLE FOR DUAL NORMAL RETIREMENT AGES.--If
435	a member accumulates retirement benefits to commence at
436	different normal retirement ages by virtue of having performed
437	duties for an employer which would entitle him or her to
438	benefits as both a member of the Special Risk Class or the
439	Qualifying Injured Special Risk Class and a member of either the
440	Regular Class, Senior Management Service Class, or Elected
441	Officers' Class, the amount of benefits payable shall be
442	computed separately with respect to each such age and the sum of
443	such computed amounts shall be paid as provided in this section.
444	(3)  EARLY RETIREMENT BENEFIT.--Upon retirement on his or
445	her early retirement date, the member shall receive an immediate
446	monthly benefit that shall begin to accrue on the first day of
447	the month of the retirement date and be payable on the last day
448	of that month and each month thereafter during his or her
449	lifetime. Such benefit shall be calculated as follows:
450	(a)  The amount of each monthly payment shall be computed
451	in the same manner as for a normal retirement benefit, in
452	accordance with subsection (1), but shall be based on the
453	member's average monthly compensation and creditable service as
454	of the member's early retirement date. The benefit so computed
455	shall be reduced by five-twelfths of 1 percent for each complete
456	month by which the early retirement date precedes the normal
457	retirement date of age 62 for a member of the Regular Class,
458	Senior Management Service Class, or the Elected Officers' Class,
459	and age 55 for a member of the Special Risk Class or the
460	Qualifying Injured Special Risk Class, or age 52 if a Special
461	Risk member or Qualifying Injured Special Risk member has
462	completed 25 years of creditable service in accordance with s.
463	121.021(29)(b)3.
464	(13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
465	subject to the provisions of this section, the Deferred
466	Retirement Option Program, hereinafter referred to as the DROP,
467	is a program under which an eligible member of the Florida
468	Retirement System may elect to participate, deferring receipt of
469	retirement benefits while continuing employment with his or her
470	Florida Retirement System employer. The deferred monthly
471	benefits shall accrue in the System Trust Fund on behalf of the
472	participant, plus interest compounded monthly, for the specified
473	period of the DROP participation, as provided in paragraph (c).
474	Upon termination of employment, the participant shall receive
475	the total DROP benefits and begin to receive the previously
476	determined normal retirement benefits. Participation in the DROP
477	does not guarantee employment for the specified period of DROP.
478	Participation in the DROP by an eligible member beyond the
479	initial 60-month period as authorized in this subsection shall
480	be on an annual contractual basis for all participants.
481	(a)  Eligibility of member to participate in the DROP.--All
482	active Florida Retirement System members in a regularly
483	established position, and all active members of either the
484	Teachers' Retirement System established in chapter 238 or the
485	State and County Officers' and Employees' Retirement System
486	established in chapter 122 which systems are consolidated within
487	the Florida Retirement System under s. 121.011, are eligible to
488	elect participation in the DROP provided that:
489	1.  The member is not a renewed member of the Florida
490	Retirement System under s. 121.122, or a member of the State
491	Community College System Optional Retirement Program under s.
492	121.051, the Senior Management Service Optional Annuity Program
493	under s. 121.055, or the optional retirement program for the
494	State University System under s. 121.35.
495	2.  Except as provided in subparagraph 6., election to
496	participate is made within 12 months immediately following the
497	date on which the member first reaches normal retirement date,
498	or, for a member who reaches normal retirement date based on
499	service before he or she reaches age 62, or age 55 for Special
500	Risk Class members or Qualifying Injured Special Risk Class
501	members, election to participate may be deferred to the 12
502	months immediately following the date the member attains 57, or
503	age 52 for Special Risk Class members or Qualifying Injured
504	Special Risk Class members. For a member who first reached
505	normal retirement date or the deferred eligibility date
506	described above prior to the effective date of this section,
507	election to participate shall be made within 12 months after the
508	effective date of this section. A member who fails to make an
509	election within such 12-month limitation period shall forfeit
510	all rights to participate in the DROP. The member shall advise
511	his or her employer and the division in writing of the date on
512	which the DROP shall begin. Such beginning date may be
513	subsequent to the 12-month election period, but must be within
514	the 60-month or, with respect to members who are instructional
515	personnel employed by the Florida School for the Deaf and the
516	Blind and who have received authorization by the Board of
517	Trustees of the Florida School for the Deaf and the Blind to
518	participate in the DROP beyond 60 months, or who are
519	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
520	grades K-12 and who have received authorization by the district
521	school superintendent to participate in the DROP beyond 60
522	months, the 96-month limitation period as provided in
523	subparagraph (b)1. When establishing eligibility of the member
524	to participate in the DROP for the 60-month or, with respect to
525	members who are instructional personnel employed by the Florida
526	School for the Deaf and the Blind and who have received
527	authorization by the Board of Trustees of the Florida School for
528	the Deaf and the Blind to participate in the DROP beyond 60
529	months, or who are instructional personnel as defined in s.
530	1012.01(2)(a)-(d) in grades K-12 and who have received
531	authorization by the district school superintendent to
532	participate in the DROP beyond 60 months, the 96-month maximum
533	participation period, the member may elect to include or exclude
534	any optional service credit purchased by the member from the
535	total service used to establish the normal retirement date. A
536	member with dual normal retirement dates shall be eligible to
537	elect to participate in DROP within 12 months after attaining
538	normal retirement date in either class.
539	3.  The employer of a member electing to participate in the
540	DROP, or employers if dually employed, shall acknowledge in
541	writing to the division the date the member's participation in
542	the DROP begins and the date the member's employment and DROP
543	participation will terminate.
544	4.  Simultaneous employment of a participant by additional
545	Florida Retirement System employers subsequent to the
546	commencement of participation in the DROP shall be permissible
547	provided such employers acknowledge in writing a DROP
548	termination date no later than the participant's existing
549	termination date or the 60-month limitation period as provided
550	in subparagraph (b)1.
551	5.  A DROP participant may change employers while
552	participating in the DROP, subject to the following:
553	a.  A change of employment must take place without a break
554	in service so that the member receives salary for each month of
555	continuous DROP participation. If a member receives no salary
556	during a month, DROP participation shall cease unless the
557	employer verifies a continuation of the employment relationship
558	for such participant pursuant to s. 121.021(39)(b).
559	b.  Such participant and new employer shall notify the
560	division on forms required by the division as to the identity of
561	the new employer.
562	c.  The new employer shall acknowledge, in writing, the
563	participant's DROP termination date, which may be extended but
564	not beyond the original 60-month or, with respect to members who
565	are instructional personnel employed by the Florida School for
566	the Deaf and the Blind and who have received authorization by
567	the Board of Trustees of the Florida School for the Deaf and the
568	Blind to participate in the DROP beyond 60 months, or who are
569	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
570	grades K-12 and who have received authorization by the district
571	school superintendent to participate in the DROP beyond 60
572	months, the 96-month period provided in subparagraph (b)1.,
573	shall acknowledge liability for any additional retirement
574	contributions and interest required if the participant fails to
575	timely terminate employment, and shall be subject to the
576	adjustment required in sub-subparagraph (c)5.d.
577	6.  Effective July 1, 2001, for instructional personnel as
578	defined in s. 1012.01(2), election to participate in the DROP
579	shall be made at any time following the date on which the member
580	first reaches normal retirement date. The member shall advise
581	his or her employer and the division in writing of the date on
582	which the Deferred Retirement Option Program shall begin. When
583	establishing eligibility of the member to participate in the
584	DROP for the 60-month or, with respect to members who are
585	instructional personnel employed by the Florida School for the
586	Deaf and the Blind and who have received authorization by the
587	Board of Trustees of the Florida School for the Deaf and the
588	Blind to participate in the DROP beyond 60 months, or who are
589	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
590	grades K-12 and who have received authorization by the district
591	school superintendent to participate in the DROP beyond 60
592	months, the 96-month maximum participation period, as provided
593	in subparagraph (b)1., the member may elect to include or
594	exclude any optional service credit purchased by the member from
595	the total service used to establish the normal retirement date.
596	A member with dual normal retirement dates shall be eligible to
597	elect to participate in either class.
598	(b)  Participation in the DROP.--
599	1.  An eligible member may elect to participate in the DROP
600	for a period not to exceed a maximum of 60 calendar months or,
601	with respect to members who are instructional personnel employed
602	by the Florida School for the Deaf and the Blind and who have
603	received authorization by the Board of Trustees of the Florida
604	School for the Deaf and the Blind to participate in the DROP
605	beyond 60 months, or who are instructional personnel as defined
606	in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
607	authorization by the district school superintendent to
608	participate in the DROP beyond 60 calendar months, 96 calendar
609	months immediately following the date on which the member first
610	reaches his or her normal retirement date or the date to which
611	he or she is eligible to defer his or her election to
612	participate as provided in subparagraph (a)2. However, a member
613	who has reached normal retirement date prior to the effective
614	date of the DROP shall be eligible to participate in the DROP
615	for a period of time not to exceed 60 calendar months or, with
616	respect to members who are instructional personnel employed by
617	the Florida School for the Deaf and the Blind and who have
618	received authorization by the Board of Trustees of the Florida
619	School for the Deaf and the Blind to participate in the DROP
620	beyond 60 months, or who are instructional personnel as defined
621	in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
622	authorization by the district school superintendent to
623	participate in the DROP beyond 60 calendar months, 96 calendar
624	months immediately following the effective date of the DROP,
625	except a member of the Special Risk Class or the Qualifying
626	Injured Special Risk Class who has reached normal retirement
627	date prior to the effective date of the DROP and whose total
628	accrued value exceeds 75 percent of average final compensation
629	as of his or her effective date of retirement shall be eligible
630	to participate in the DROP for no more than 36 calendar months
631	immediately following the effective date of the DROP.
632	2.  Upon deciding to participate in the DROP, the member
633	shall submit, on forms required by the division:
634	a.  A written election to participate in the DROP;
635	b.  Selection of the DROP participation and termination
636	dates, which satisfy the limitations stated in paragraph (a) and
637	subparagraph 1. Such termination date shall be in a binding
638	letter of resignation with the employer, establishing a deferred
639	termination date. The member may change the termination date
640	within the limitations of subparagraph 1., but only with the
641	written approval of his or her employer;
642	c.  A properly completed DROP application for service
643	retirement as provided in this section; and
644	d.  Any other information required by the division.
645	3.  The DROP participant shall be a retiree under the
646	Florida Retirement System for all purposes, except for paragraph
647	(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
648	and 121.122. However, participation in the DROP does not alter
649	the participant's employment status and such employee shall not
650	be deemed retired from employment until his or her deferred
651	resignation is effective and termination occurs as provided in
652	s. 121.021(39).
653	4.  Elected officers shall be eligible to participate in
654	the DROP subject to the following:
655	a.  An elected officer who reaches normal retirement date
656	during a term of office may defer the election to participate in
657	the DROP until the next succeeding term in that office. Such
658	elected officer who exercises this option may participate in the
659	DROP for up to 60 calendar months or a period of no longer than
660	such succeeding term of office, whichever is less.
661	b.  An elected or a nonelected participant may run for a
662	term of office while participating in DROP and, if elected,
663	extend the DROP termination date accordingly, except, however,
664	if such additional term of office exceeds the 60-month
665	limitation established in subparagraph 1., and the officer does
666	not resign from office within such 60-month limitation, the
667	retirement and the participant's DROP shall be null and void as
668	provided in sub-subparagraph (c)5.d.
669	c.  An elected officer who is dually employed and elects to
670	participate in DROP shall be required to satisfy the definition
671	of termination within the 60-month or, with respect to members
672	who are instructional personnel employed by the Florida School
673	for the Deaf and the Blind and who have received authorization
674	by the Board of Trustees of the Florida School for the Deaf and
675	the Blind to participate in the DROP beyond 60 months, or who
676	are instructional personnel as defined in s. 1012.01(2)(a)-(d)
677	in grades K-12 and who have received authorization by the
678	district school superintendent to participate in the DROP beyond
679	60 months, the 96-month limitation period as provided in
680	subparagraph 1. for the nonelected position and may continue
681	employment as an elected officer as provided in s. 121.053. The
682	elected officer will be enrolled as a renewed member in the
683	Elected Officers' Class or the Regular Class, as provided in ss.
684	121.053 and 121.122, on the first day of the month after
685	termination of employment in the nonelected position and
686	termination of DROP. Distribution of the DROP benefits shall be
687	made as provided in paragraph (c).
688	Section 10.  Section 121.23, Florida Statutes, is amended
689	to read:
690	121.23  Disability retirement, and special risk membership,
691	and qualifying injured special risk membership applications;
692	Retirement Commission; powers and duties; judicial review.--The
693	provisions of this section apply to all proceedings in which the
694	administrator has made a written final decision on the merits
695	respecting applications for disability retirement, reexamination
696	of retired members receiving disability benefits, applications
697	for special risk membership and qualifying injured special risk
698	membership, and reexamination of special risk members in the
699	Florida Retirement System. The jurisdiction of the State
700	Retirement Commission under this section shall be limited to
701	written final decisions of the administrator on the merits.
702	(1)  In accordance with the rules of procedure adopted by
703	the Department of Management Services, the administrator shall:
704	(a)  Give reasonable notice of his or her proposed action,
705	or decision to refuse action, together with a summary of the
706	factual, legal, and policy grounds therefor.
707	(b)  Give affected members, or their counsel, an
708	opportunity to present to the division written evidence in
709	opposition to the proposed action or refusal to act or a written
710	statement challenging the grounds upon which the administrator
711	has chosen to justify his or her action or inaction.
712	(c)  If the objections of the member are overruled, provide
713	a written explanation within 21 days.
714	(2)  A member shall be entitled to a hearing before the
715	State Retirement Commission pursuant to ss. 120.569 and
716	120.57(1) on the merits of any written adverse decision of the
717	administrator, if he or she files with the commission a written
718	request for such hearing within 21 days after receipt of such
719	written decision from the administrator. For the purpose of such
720	hearings, the commission shall be an "agency head" as defined by
721	s. 120.52.
722	(a)  The commission shall have the authority to issue
723	orders as a result of a hearing that shall be binding on all
724	parties to the dispute. The commission may order any action that
725	it deems appropriate. Any disability retirement order of the
726	commission issued pursuant to this subsection which sustains the
727	application of the member may include an amount, to be
728	determined by the commission, for reasonable attorney's fees and
729	taxable costs, which shall be calculated in accordance with the
730	statewide uniform guidelines for taxation of costs in civil
731	actions. The amount of the attorney's fee may not exceed 50
732	percent of the initial yearly benefit awarded under s.
733	121.091(4). In cases involving disability retirement, the State
734	Retirement Commission shall require the member to present
735	competent medical evidence and may require vocational evidence
736	before awarding disability retirement benefits.
737	(b)  Any person who fails to appear in response to a
738	subpoena, answer any question, or produce any evidence pertinent
739	to any hearing or who knowingly gives false testimony therein
740	commits a misdemeanor of the first degree, punishable as
741	provided in s. 775.082 or s. 775.083.
742	(3)  The exercise by the State Retirement Commission of the
743	powers, duties, and functions prescribed by this section shall
744	be reviewable by the district court of appeal.
745	(4)  The exercise by the State Retirement Commission of the
746	powers, duties, and functions prescribed by this section shall
747	be reviewable by the judiciary on the grounds that:
748	(a)  The commission did not afford a fair and equitable
749	hearing in accordance with chapter 120;
750	(b)  The decision of the commission was not in accordance
751	with existing statutes or rules and regulations promulgated
752	thereunder; or
753	(c)  The decision of the commission was not based on
754	substantial evidence.
755
756	The court shall not, however, substitute its judgment for that
757	of the commission as to the weight of the evidence on any
758	disputed finding of fact where the decision of the commission
759	was supported by substantial evidence; nor shall the court
760	substitute its judgment for that of the commission on an issue
761	of discretion.
762	Section 11.  Paragraph (c) of subsection (3) of section
763	121.4501, Florida Statutes, is amended to read:
764	121.4501  Public Employee Optional Retirement Program.--
765	(3)  ELIGIBILITY; RETIREMENT SERVICE CREDIT.--
766	(c)1.  Notwithstanding paragraph (b), each eligible
767	employee who elects to participate in the Public Employee
768	Optional Retirement Program and establishes one or more
769	individual participant accounts under the optional program may
770	elect to transfer to the optional program a sum representing the
771	present value of the employee's accumulated benefit obligation
772	under the defined benefit retirement program of the Florida
773	Retirement System. Upon such transfer, all service credit
774	previously earned under the defined benefit program of the
775	Florida Retirement System shall be nullified for purposes of
776	entitlement to a future benefit under the defined benefit
777	program of the Florida Retirement System. A participant is
778	precluded from transferring the accumulated benefit obligation
779	balance from the defined benefit program upon the expiration of
780	the period afforded to enroll in the optional program.
781	2.  For purposes of this subsection, the present value of
782	the member's accumulated benefit obligation is based upon the
783	member's estimated creditable service and estimated average
784	final compensation under the defined benefit program, subject to
785	recomputation under subparagraph 3. For state employees
786	enrolling under subparagraph (4)(a)1., initial estimates will be
787	based upon creditable service and average final compensation as
788	of midnight on June 30, 2002; for district school board
789	employees enrolling under subparagraph (4)(b)1., initial
790	estimates will be based upon creditable service and average
791	final compensation as of midnight on September 30, 2002; and for
792	local government employees enrolling under subparagraph
793	(4)(c)1., initial estimates will be based upon creditable
794	service and average final compensation as of midnight on
795	December 31, 2002. The dates respectively specified above shall
796	be construed as the "estimate date" for these employees. The
797	actuarial present value of the employee's accumulated benefit
798	obligation shall be based on the following:
799	a.  The discount rate and other relevant actuarial
800	assumptions used to value the Florida Retirement System Trust
801	Fund at the time the amount to be transferred is determined,
802	consistent with the factors provided in sub-subparagraphs b. and
803	c.
804	b.  A benefit commencement age, based on the member's
805	estimated creditable service as of the estimate date. The
806	benefit commencement age shall be the younger of the following,
807	but shall not be younger than the member's age as of the
808	estimate date:
809	(I)  Age 62; or
810	(II)  The age the member would attain if the member
811	completed 30 years of service with an employer, assuming the
812	member worked continuously from the estimate date, and
813	disregarding any vesting requirement that would otherwise apply
814	under the defined benefit program of the Florida Retirement
815	System.
816	c.  For members of the Special Risk Class and the
817	Qualifying Injured Special Risk Class and for members of the
818	Special Risk Administrative Support Class entitled to retain
819	special risk normal retirement date, the benefit commencement
820	age shall be the younger of the following, but shall not be
821	younger than the member's age as of the estimate date:
822	(I)  Age 55; or
823	(II)  The age the member would attain if the member
824	completed 25 years of service with an employer, assuming the
825	member worked continuously from the estimate date, and
826	disregarding any vesting requirement that would otherwise apply
827	under the defined benefit program of the Florida Retirement
828	System.
829	d.  The calculation shall disregard vesting requirements
830	and early retirement reduction factors that would otherwise
831	apply under the defined benefit retirement program.
832	3.  For each participant who elects to transfer moneys from
833	the defined benefit program to his or her account in the
834	optional program, the division shall recompute the amount
835	transferred under subparagraph 2. not later than 60 days after
836	the actual transfer of funds based upon the participant's actual
837	creditable service and actual final average compensation as of
838	the initial date of participation in the optional program. If
839	the recomputed amount differs from the amount transferred under
840	subparagraph 2. by $10 or more, the division shall:
841	a.  Transfer, or cause to be transferred, from the Florida
842	Retirement System Trust Fund to the participant's account in the
843	optional program the excess, if any, of the recomputed amount
844	over the previously transferred amount together with interest
845	from the initial date of transfer to the date of transfer under
846	this subparagraph, based upon effective annual interest equal to
847	the assumed return on the actuarial investment which was used in
848	the most recent actuarial valuation of the system, compounded
849	annually.
850	b.  Transfer, or cause to be transferred, from the
851	participant's account to the Florida Retirement System Trust
852	Fund the excess, if any, of the previously transferred amount
853	over the recomputed amount, together with interest from the
854	initial date of transfer to the date of transfer under this
855	subparagraph, based upon 6 percent effective annual interest,
856	compounded annually, pro rata based on the participant's
857	allocation plan.
858	4.  As directed by the participant, the board shall
859	transfer or cause to be transferred the appropriate amounts to
860	the designated accounts. The board shall establish transfer
861	procedures by rule, but the actual transfer shall not be later
862	than 30 days after the effective date of the member's
863	participation in the optional program unless the major financial
864	markets for securities available for a transfer are seriously
865	disrupted by an unforeseen event which also causes the
866	suspension of trading on any national securities exchange in the
867	country where the securities were issued. In that event, such
868	30-day period of time may be extended by a resolution of the
869	trustees. Transfers are not commissionable or subject to other
870	fees and may be in the form of securities or cash as determined
871	by the state board. Such securities shall be valued as of the
872	date of receipt in the participant's account.
873	5.  If the board or the division receives notification from
874	the United States Internal Revenue Service that this paragraph
875	or any portion of this paragraph will cause the retirement
876	system, or a portion thereof, to be disqualified for tax
877	purposes under the Internal Revenue Code, then the portion that
878	will cause the disqualification does not apply. Upon such
879	notice, the state board and the division shall notify the
880	presiding officers of the Legislature.
881	Section 12.  Subsection (3) of section 121.71, Florida
882	Statutes, is amended to read:
883	121.71  Uniform rates; process; calculations; levy.--
884	(3)  Required employer retirement contribution rates for
885	each membership class and subclass of the Florida Retirement
886	System for both retirement plans are as follows:
887
	Membership Class Percentage of Gross Compensation,Effective July 1, 2006 Percentage of Gross Compensation,Effective July 1, 2007
888
	Regular Class 8.69% 9.55%
889
	Special Risk Class and Qualifying Injured Special Risk Class 19.76% 21.96%
890
	Special Risk Administrative   Support Class 11.39% 12.65%
891
	Elected Officers' Class -   Legislators, Governor,   Lt. Governor,   Cabinet Officers,   State Attorneys,   Public Defenders 13.32% 14.80%
892
	Elected Officers' Class -  Justices, Judges 18.40% 20.44%
893
	Elected Officers' Class -  County Elected Officers 15.37% 17.08%
894
	Senior Management Class 11.96% 13.29%
895
	DROP 9.80% 10.89%
896
897	Section 13.  Subsection (4) of section 121.72, Florida
898	Statutes, is amended to read:
899	121.72  Allocations to optional retirement program
900	participant accounts; percentage amounts.--
901	(4)  Effective July 1, 2002, and effective July 1, 2007,
902	for the Qualifying Injured Special Risk Class, allocations from
903	the Florida Retirement System Contributions Clearing Trust Fund
904	to optional retirement program participant accounts shall be as
905	follows:
906
	Membership Class Percentage of Gross Compensation
907
	Regular Class 9.00%
908
	Special Risk Class and Qualifying Injured Special Risk Class 20.00%
909
	Special Risk Administrative Support Class 11.35%
910
	Elected Officers' Class -   Legislators, Governor,   Lt. Governor, Cabinet Officers,   State Attorneys, Public Defenders 13.40%
911
	Elected Officers' Class -   Justices, Judges 18.90%
912
	Elected Officers' Class -   County Elected Officers 16.20%
913
	Senior Management Service Class 10.95%
914
915	Section 14.  Subsection (3) of section 121.73, Florida
916	Statutes, is amended to read:
917	121.73  Allocations for optional retirement program
918	participant disability coverage; percentage amounts.--
919	(3)  Effective July 1, 2002, and effective July 1, 2007,
920	for the Qualifying Injured Special Risk Class, allocations from
921	the Florida Retirement System Contributions FRS Contribution
922	Clearing Trust Fund to provide disability coverage for
923	participants in the optional retirement program, and to offset
924	the costs of administering said coverage, shall be as follows:
925
	Membership Class Percentage of Gross Compensation
926
	Regular Class 0.25%
927
	Special Risk Class and Qualifying Injured Special Risk Class 1.33%
928
	Special Risk Administrative Support Class 0.45%
929
	Elected Officers' Class -   Legislators, Governor,   Lt. Governor, Cabinet Officers,   State Attorneys, Public Defenders 0.41%
930
	Elected Officers' Class -   Justices, Judges 0.73%
931
	Elected Officers' Class -   County Elected Officers 0.41%
932
	Senior Management Service Class 0.26%
933
934	Section 15.  This act shall take effect July 1, 2007.

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