Florida Senate - 2008 SB 2830

By Senator Fasano

11-04351-08 20082830__

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A bill to be entitled

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An act relating to the Deferred Retirement Option Program;

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amending s. 121.091, F.S.; restricting the eligibility of

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an elected officer to receive a monthly benefit earned

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under prior service while participating in the DROP;

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providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Paragraph (b) of subsection (13) of section

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121.091, Florida Statutes, is amended to read:

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     121.091  Benefits payable under the system.--Benefits may

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not be paid under this section unless the member has terminated

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employment as provided in s. 121.021(39)(a) or begun

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participation in the Deferred Retirement Option Program as

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provided in subsection (13), and a proper application has been

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filed in the manner prescribed by the department. The department

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may cancel an application for retirement benefits when the member

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or beneficiary fails to timely provide the information and

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documents required by this chapter and the department's rules.

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The department shall adopt rules establishing procedures for

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application for retirement benefits and for the cancellation of

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such application when the required information or documents are

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not received.

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     (13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and

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subject to the provisions of this section, the Deferred

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Retirement Option Program, hereinafter referred to as the DROP,

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is a program under which an eligible member of the Florida

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Retirement System may elect to participate, deferring receipt of

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retirement benefits while continuing employment with his or her

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Florida Retirement System employer. The deferred monthly benefits

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shall accrue in the System Trust Fund on behalf of the

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participant, plus interest compounded monthly, for the specified

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period of the DROP participation, as provided in paragraph (c).

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Upon termination of employment, the participant shall receive the

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total DROP benefits and begin to receive the previously

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determined normal retirement benefits. Participation in the DROP

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does not guarantee employment for the specified period of DROP.

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Participation in the DROP by an eligible member beyond the

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initial 60-month period as authorized in this subsection shall be

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on an annual contractual basis for all participants.

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     (b)  Participation in the DROP.--

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     1.  An eligible member may elect to participate in the DROP

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for a period not to exceed a maximum of 60 calendar months or,

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with respect to members who are instructional personnel employed

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by the Florida School for the Deaf and the Blind and who have

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received authorization by the Board of Trustees of the Florida

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School for the Deaf and the Blind to participate in the DROP

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beyond 60 months, or who are instructional personnel as defined

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in s. 1012.01(2)(a)-(d) in grades K-12 and who have received

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authorization by the district school superintendent to

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participate in the DROP beyond 60 calendar months, 96 calendar

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months immediately following the date on which the member first

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reaches his or her normal retirement date or the date to which he

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or she is eligible to defer his or her election to participate as

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provided in subparagraph (a)2. However, a member who has reached

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normal retirement date prior to the effective date of the DROP

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shall be eligible to participate in the DROP for a period of time

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not to exceed 60 calendar months or, with respect to members who

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are instructional personnel employed by the Florida School for

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the Deaf and the Blind and who have received authorization by the

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Board of Trustees of the Florida School for the Deaf and the

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Blind to participate in the DROP beyond 60 months, or who are

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instructional personnel as defined in s. 1012.01(2)(a)-(d) in

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grades K-12 and who have received authorization by the district

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school superintendent to participate in the DROP beyond 60

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calendar months, 96 calendar months immediately following the

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effective date of the DROP, except a member of the Special Risk

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Class who has reached normal retirement date prior to the

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effective date of the DROP and whose total accrued value exceeds

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75 percent of average final compensation as of his or her

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effective date of retirement shall be eligible to participate in

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the DROP for no more than 36 calendar months immediately

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following the effective date of the DROP.

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     2.  Upon deciding to participate in the DROP, the member

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shall submit, on forms required by the division:

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     a.  A written election to participate in the DROP;

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     b.  Selection of the DROP participation and termination

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dates, which satisfy the limitations stated in paragraph (a) and

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subparagraph 1. Such termination date shall be in a binding

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letter of resignation with the employer, establishing a deferred

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termination date. The member may change the termination date

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within the limitations of subparagraph 1., but only with the

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written approval of his or her employer;

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     c.  A properly completed DROP application for service

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retirement as provided in this section; and

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     d.  Any other information required by the division.

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     3.  The DROP participant shall be a retiree under the

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Florida Retirement System for all purposes, except for paragraph

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(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053, and

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121.122. However, participation in the DROP does not alter the

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participant's employment status and such employee shall not be

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deemed retired from employment until his or her deferred

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resignation is effective and termination occurs as provided in s.

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121.021(39).

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     4.  Elected officers shall be eligible to participate in the

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DROP subject to the following:

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     a.  An elected officer who reaches normal retirement date

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during a term of office may defer the election to participate in

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the DROP until the next succeeding term in that office. Such

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elected officer who exercises this option may participate in the

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DROP for up to 60 calendar months or a period of no longer than

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such succeeding term of office, whichever is less.

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     b.  An elected or a nonelected participant may run for a

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term of office while participating in DROP and, if elected,

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extend the DROP termination date accordingly, except, however, if

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such additional term of office exceeds the 60-month limitation

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established in subparagraph 1., and the officer does not resign

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from office within such 60-month limitation, the retirement and

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the participant's DROP shall be null and void as provided in sub-

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subparagraph (c)5.d.

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     c.  An elected officer who is dually employed and elects to

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participate in DROP shall be required to satisfy the definition

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of termination within the 60-month or, with respect to members

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who are instructional personnel employed by the Florida School

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for the Deaf and the Blind and who have received authorization by

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the Board of Trustees of the Florida School for the Deaf and the

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Blind to participate in the DROP beyond 60 months, or who are

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instructional personnel as defined in s. 1012.01(2)(a)-(d) in

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grades K-12 and who have received authorization by the district

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school superintendent to participate in the DROP beyond 60

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months, the 96-month limitation period as provided in

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subparagraph 1. for the nonelected position and may continue

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employment as an elected officer as provided in s. 121.053. The

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elected officer will be enrolled as a renewed member in the

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Elected Officers' Class or the Regular Class, as provided in ss.

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121.053 and 121.122, on the first day of the month after

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termination of employment in the nonelected position and

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termination of DROP. Distribution of the DROP benefits shall be

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made as provided in paragraph (c).

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     d. Effective July 1, 2008, an elected officer who is

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reemployed or reappointed to an elective office after termination

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of employment or office and whose benefit is suspended for the

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required 30 days may return to covered employment or office, but

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is not eligible to receive a monthly benefit earned under prior

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service from which the officer is retired until cessation of his

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or her subsequent employment or office. This restriction applies

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to successive terminations and the resumption of employment or

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office, regardless of the retirement class.

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     Section 2.  This act shall take effect July 1, 2008.

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