Amendment
Bill No. CS/HB 1049

Amendment No. 788203

CHAMBER ACTION
Senate		House
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1	Representative Bogdanoff offered the following:
2
3	Amendment (with title amendment)
4	Between lines 124 and 125, insert:
5	Section 3.  Paragraphs (a) and (b) of subsection (13) of
6	section 121.091, Florida Statutes, are amended to read:
7	121.091  Benefits payable under the system.--Benefits may
8	not be paid under this section unless the member has terminated
9	employment as provided in s. 121.021(39)(a) or begun
10	participation in the Deferred Retirement Option Program as
11	provided in subsection (13), and a proper application has been
12	filed in the manner prescribed by the department. The department
13	may cancel an application for retirement benefits when the
14	member or beneficiary fails to timely provide the information
15	and documents required by this chapter and the department's
16	rules. The department shall adopt rules establishing procedures
17	for application for retirement benefits and for the cancellation
18	of such application when the required information or documents
19	are not received.
20	(13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
21	subject to the provisions of this section, the Deferred
22	Retirement Option Program, hereinafter referred to as the DROP,
23	is a program under which an eligible member of the Florida
24	Retirement System may elect to participate, deferring receipt of
25	retirement benefits while continuing employment with his or her
26	Florida Retirement System employer. The deferred monthly
27	benefits shall accrue in the System Trust Fund on behalf of the
28	participant, plus interest compounded monthly, for the specified
29	period of the DROP participation, as provided in paragraph (c).
30	Upon termination of employment, the participant shall receive
31	the total DROP benefits and begin to receive the previously
32	determined normal retirement benefits. Participation in the DROP
33	does not guarantee employment for the specified period of DROP.
34	Participation in the DROP by an eligible member beyond the
35	initial 60-month period as authorized in this subsection shall
36	be on an annual contractual basis for all participants.
37	(a)  Eligibility of member to participate in the DROP.--All
38	active Florida Retirement System members in a regularly
39	established position, and all active members of either the
40	Teachers' Retirement System established in chapter 238 or the
41	State and County Officers' and Employees' Retirement System
42	established in chapter 122 which systems are consolidated within
43	the Florida Retirement System under s. 121.011, are eligible to
44	elect participation in the DROP provided that:
45	1.  The member is not a renewed member of the Florida
46	Retirement System under s. 121.122, or a member of the State
47	Community College System Optional Retirement Program under s.
48	121.051, the Senior Management Service Optional Annuity Program
49	under s. 121.055, or the optional retirement program for the
50	State University System under s. 121.35.
51	2.  Except as provided in subparagraph 6., election to
52	participate is made within 12 months immediately following the
53	date on which the member first reaches normal retirement date,
54	or, for a member who reaches normal retirement date based on
55	service before he or she reaches age 62, or age 55 for Special
56	Risk Class members, election to participate may be deferred to
57	the 12 months immediately following the date the member attains
58	57, or age 52 for Special Risk Class members. For a member who
59	first reached normal retirement date or the deferred eligibility
60	date described above prior to the effective date of this
61	section, election to participate shall be made within 12 months
62	after the effective date of this section. A member who fails to
63	make an election within such 12-month limitation period shall
64	forfeit all rights to participate in the DROP. The member shall
65	advise his or her employer and the division in writing of the
66	date on which the DROP shall begin. Such beginning date may be
67	subsequent to the 12-month election period, but must be within
68	the 60-month or, with respect to members who are instructional
69	personnel employed by the Florida School for the Deaf and the
70	Blind and who have received authorization by the Board of
71	Trustees of the Florida School for the Deaf and the Blind to
72	participate in the DROP beyond 60 months, or who are
73	instructional personnel as defined in s. 1012.01(2)(a)-(d),
74	administrative personnel as defined in s. 1012.01(3)(c), or
75	administrative personnel as defined in s. 1012.01(3)(a) and (b)
76	in school-board-designated areas of critical administrative
77	shortage in grades K-12 and who have received authorization by
78	the district school superintendent to participate in the DROP
79	beyond 60 months, the 96-month limitation period as provided in
80	subparagraph (b)1. When establishing eligibility of the member
81	to participate in the DROP for the 60-month or, with respect to
82	members who are instructional personnel employed by the Florida
83	School for the Deaf and the Blind and who have received
84	authorization by the Board of Trustees of the Florida School for
85	the Deaf and the Blind to participate in the DROP beyond 60
86	months, or who are instructional personnel as defined in s.
87	1012.01(2)(a)-(d), administrative personnel as defined in s.
88	1012.01(3)(c), or administrative personnel as defined in s.
89	1012.01(3)(a) and (b) in school-board-designated areas of
90	critical administrative shortage in grades K-12 and who have
91	received authorization by the district school superintendent to
92	participate in the DROP beyond 60 months, the 96-month maximum
93	participation period, the member may elect to include or exclude
94	any optional service credit purchased by the member from the
95	total service used to establish the normal retirement date. A
96	member with dual normal retirement dates shall be eligible to
97	elect to participate in DROP within 12 months after attaining
98	normal retirement date in either class.
99	3.  The employer of a member electing to participate in the
100	DROP, or employers if dually employed, shall acknowledge in
101	writing to the division the date the member's participation in
102	the DROP begins and the date the member's employment and DROP
103	participation will terminate.
104	4.  Simultaneous employment of a participant by additional
105	Florida Retirement System employers subsequent to the
106	commencement of participation in the DROP shall be permissible
107	provided such employers acknowledge in writing a DROP
108	termination date no later than the participant's existing
109	termination date or the 60-month limitation period as provided
110	in subparagraph (b)1.
111	5.  A DROP participant may change employers while
112	participating in the DROP, subject to the following:
113	a.  A change of employment must take place without a break
114	in service so that the member receives salary for each month of
115	continuous DROP participation. If a member receives no salary
116	during a month, DROP participation shall cease unless the
117	employer verifies a continuation of the employment relationship
118	for such participant pursuant to s. 121.021(39)(b).
119	b.  Such participant and new employer shall notify the
120	division on forms required by the division as to the identity of
121	the new employer.
122	c.  The new employer shall acknowledge, in writing, the
123	participant's DROP termination date, which may be extended but
124	not beyond the original 60-month or, with respect to members who
125	are instructional personnel employed by the Florida School for
126	the Deaf and the Blind and who have received authorization by
127	the Board of Trustees of the Florida School for the Deaf and the
128	Blind to participate in the DROP beyond 60 months, or who are
129	instructional personnel as defined in s. 1012.01(2)(a)-(d),
130	administrative personnel as defined in s. 1012.01(3)(c), or
131	administrative personnel as defined in s. 1012.01(3)(a) and (b)
132	in school-board-designated areas of critical administrative
133	shortage in grades K-12 and who have received authorization by
134	the district school superintendent to participate in the DROP
135	beyond 60 months, the 96-month period provided in subparagraph
136	(b)1., shall acknowledge liability for any additional retirement
137	contributions and interest required if the participant fails to
138	timely terminate employment, and shall be subject to the
139	adjustment required in sub-subparagraph (c)5.d.
140	6.  Effective July 1, 2001, for instructional personnel as
141	defined in s. 1012.01(2), election to participate in the DROP
142	shall be made at any time following the date on which the member
143	first reaches normal retirement date. The member shall advise
144	his or her employer and the division in writing of the date on
145	which the Deferred Retirement Option Program shall begin. When
146	establishing eligibility of the member to participate in the
147	DROP for the 60-month or, with respect to members who are
148	instructional personnel employed by the Florida School for the
149	Deaf and the Blind and who have received authorization by the
150	Board of Trustees of the Florida School for the Deaf and the
151	Blind to participate in the DROP beyond 60 months, or who are
152	instructional personnel as defined in s. 1012.01(2)(a)-(d),
153	administrative personnel as defined in s. 1012.01(3)(c), or
154	administrative personnel as defined in s. 1012.01(3)(a) and (b)
155	in school-board-designated areas of critical administrative
156	shortage in grades K-12 and who have received authorization by
157	the district school superintendent to participate in the DROP
158	beyond 60 months, the 96-month maximum participation period, as
159	provided in subparagraph (b)1., the member may elect to include
160	or exclude any optional service credit purchased by the member
161	from the total service used to establish the normal retirement
162	date. A member with dual normal retirement dates shall be
163	eligible to elect to participate in either class.
164	(b)  Participation in the DROP.--
165	1.  An eligible member may elect to participate in the DROP
166	for a period not to exceed a maximum of 60 calendar months or,
167	with respect to members who are instructional personnel employed
168	by the Florida School for the Deaf and the Blind and who have
169	received authorization by the Board of Trustees of the Florida
170	School for the Deaf and the Blind to participate in the DROP
171	beyond 60 months, or who are instructional personnel as defined
172	in s. 1012.01(2)(a)-(d), administrative personnel as defined in
173	s. 1012.01(3)(c), or administrative personnel as defined in s.
174	1012.01(3)(a) and (b) in school-board-designated areas of
175	critical administrative shortage in grades K-12 and who have
176	received authorization by the district school superintendent to
177	participate in the DROP beyond 60 calendar months, 96 calendar
178	months immediately following the date on which the member first
179	reaches his or her normal retirement date or the date to which
180	he or she is eligible to defer his or her election to
181	participate as provided in subparagraph (a)2. However, a member
182	who has reached normal retirement date prior to the effective
183	date of the DROP shall be eligible to participate in the DROP
184	for a period of time not to exceed 60 calendar months or, with
185	respect to members who are instructional personnel employed by
186	the Florida School for the Deaf and the Blind and who have
187	received authorization by the Board of Trustees of the Florida
188	School for the Deaf and the Blind to participate in the DROP
189	beyond 60 months, or who are instructional personnel as defined
190	in s. 1012.01(2)(a)-(d), administrative personnel as defined in
191	s. 1012.01(3)(c), or administrative personnel as defined in s.
192	1012.01(3)(a) and (b) in school-board-designated areas of
193	critical administrative shortage in grades K-12 and who have
194	received authorization by the district school superintendent to
195	participate in the DROP beyond 60 calendar months, 96 calendar
196	months immediately following the effective date of the DROP,
197	except a member of the Special Risk Class who has reached normal
198	retirement date prior to the effective date of the DROP and
199	whose total accrued value exceeds 75 percent of average final
200	compensation as of his or her effective date of retirement shall
201	be eligible to participate in the DROP for no more than 36
202	calendar months immediately following the effective date of the
203	DROP.
204	2.  Upon deciding to participate in the DROP, the member
205	shall submit, on forms required by the division:
206	a.  A written election to participate in the DROP;
207	b.  Selection of the DROP participation and termination
208	dates, which satisfy the limitations stated in paragraph (a) and
209	subparagraph 1. Such termination date shall be in a binding
210	letter of resignation with the employer, establishing a deferred
211	termination date. The member may change the termination date
212	within the limitations of subparagraph 1., but only with the
213	written approval of his or her employer;
214	c.  A properly completed DROP application for service
215	retirement as provided in this section; and
216	d.  Any other information required by the division.
217	3.  The DROP participant shall be a retiree under the
218	Florida Retirement System for all purposes, except for paragraph
219	(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
220	and 121.122. However, participation in the DROP does not alter
221	the participant's employment status and such employee shall not
222	be deemed retired from employment until his or her deferred
223	resignation is effective and termination occurs as provided in
224	s. 121.021(39).
225	4.  Elected officers shall be eligible to participate in
226	the DROP subject to the following:
227	a.  An elected officer who reaches normal retirement date
228	during a term of office may defer the election to participate in
229	the DROP until the next succeeding term in that office. Such
230	elected officer who exercises this option may participate in the
231	DROP for up to 60 calendar months or a period of no longer than
232	such succeeding term of office, whichever is less.
233	b.  An elected or a nonelected participant may run for a
234	term of office while participating in DROP and, if elected,
235	extend the DROP termination date accordingly, except, however,
236	if such additional term of office exceeds the 60-month
237	limitation established in subparagraph 1., and the officer does
238	not resign from office within such 60-month limitation, the
239	retirement and the participant's DROP shall be null and void as
240	provided in sub-subparagraph (c)5.d.
241	c.  An elected officer who is dually employed and elects to
242	participate in DROP shall be required to satisfy the definition
243	of termination within the 60-month or, with respect to members
244	who are instructional personnel employed by the Florida School
245	for the Deaf and the Blind and who have received authorization
246	by the Board of Trustees of the Florida School for the Deaf and
247	the Blind to participate in the DROP beyond 60 months, or who
248	are instructional personnel as defined in s. 1012.01(2)(a)-(d),
249	administrative personnel as defined in s. 1012.01(3)(c), or
250	administrative personnel as defined in s. 1012.01(3)(a) and (b)
251	in school-board-designated areas of critical administrative
252	shortage in grades K-12 and who have received authorization by
253	the district school superintendent to participate in the DROP
254	beyond 60 months, the 96-month limitation period as provided in
255	subparagraph 1. for the nonelected position and may continue
256	employment as an elected officer as provided in s. 121.053. The
257	elected officer will be enrolled as a renewed member in the
258	Elected Officers' Class or the Regular Class, as provided in ss.
259	121.053 and 121.122, on the first day of the month after
260	termination of employment in the nonelected position and
261	termination of DROP. Distribution of the DROP benefits shall be
262	made as provided in paragraph (c).
263	Section 4.  The Legislature finds that a proper and
264	legitimate state purpose is served when employees and retirees
265	of the state and of its political subdivisions, and the
266	dependents, survivors, and beneficiaries of such employees and
267	retirees, are extended the basic protections afforded by
268	governmental retirement systems that provide fair and adequate
269	benefits and that are managed, administered, and funded in an
270	actuarially sound manner as required by s. 14, Art. X of the
271	State Constitution and part VII of chapter 112, Florida
272	Statutes. Therefore, the Legislature determines and declares
273	that the provisions of this act fulfill an important state
274	interest.
275
276	-----------------------------------------------------
277	T I T L E  A M E N D M E N T
278	Remove line 12 and insert:
279	Service Class; amending s. 121.091, F.S.; increasing the period
280	of time in which members of the system who are employed as
281	certain administrative personnel in grades K-12 may participate
282	in the Deferred Retirement Option Program; providing a
283	declaration of important state interest; providing an effective
284	date.
285

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