Amendment
Bill No. CS/CS/SB 2848

Amendment No. 130237

CHAMBER ACTION
Senate		House
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1	Representative Needelman offered the following:
2
3	Amendment to Amendment (197813)
4	Remove lines 108-2010 and insert:
5	1.  For retirements effective before July 1, 2009, a member
6	ceases all employment relationships with employers under this
7	system, as defined in subsection (10), but in the event a member
8	should be employed by any such employer within the next calendar
9	month, termination shall be deemed not to have occurred. A leave
10	of absence shall constitute a continuation of the employment
11	relationship, except that a leave of absence without pay due to
12	disability may constitute termination for a member, if such
13	member makes application for and is approved for disability
14	retirement in accordance with s. 121.091(4). The department or
15	board may require other evidence of termination as it deems
16	necessary.
17	2.  For retirements effective on or after July 1, 2009, a
18	member ceases all employment relationships with employers under
19	this system, as defined in subsection (10), but in the event a
20	member should be employed by any such employer within the next
21	12 calendar months, termination shall be deemed not to have
22	occurred. A leave of absence shall constitute a continuation of
23	the employment relationship, except that a leave of absence
24	without pay due to disability may constitute termination for a
25	member, if such member makes application for and is approved for
26	disability retirement in accordance with s. 121.091(4). The
27	department or board may require other evidence of termination as
28	it deems necessary.
29	(b)  "Termination" for a member electing to participate
30	under the Deferred Retirement Option Program occurs when the
31	Deferred Retirement Option Program participant ceases all
32	employment relationships with employers under this system in
33	accordance with s. 121.091(13), but:
34	1.  For DROP termination dates before July 1, 2009, in the
35	event the Deferred Retirement Option Program participant should
36	be employed by any such employer within the next calendar month,
37	termination will be deemed not to have occurred, except as
38	provided in s. 121.091(13)(b)4.c. A leave of absence shall
39	constitute a continuation of the employment relationship.
40	2.  For DROP termination dates on or after July 1, 2009, in
41	the event the DROP participant should be employed by any such
42	employer within the next 12 calendar months, termination will be
43	deemed not to have occurred, except as provided in s.
44	121.091(13)(b)4.c. A leave of absence shall constitute a
45	continuation of the employment relationship.
46	(52)  "Regularly established position" is defined as
47	follows:
48	(a)  With respect to employment for In a state employer
49	agency, the term means a position that which is authorized and
50	established pursuant to law and is compensated from a salaries
51	appropriation pursuant to s. 216.011(1)(dd), or an established
52	position which is authorized pursuant to s. 216.262(1)(a) and
53	(b) and is compensated from a salaries account as provided by
54	rule.
55	(b)  With respect to employment for In a local employer
56	agency (district school board, county agency, community college,
57	city, metropolitan planning organization, or special district),
58	the term means a regularly established position that which will
59	be in existence for a period beyond 6 consecutive months, except
60	as provided by rule.
61	(53)  "Temporary position" is defined as follows:
62	(a)  With respect to employment for In a state employer
63	agency, the term means an employment position that which is
64	compensated from an other personal services (OPS) account, as
65	provided for in s. 216.011(1)(dd).
66	(b)  With respect to employment for In a local employer
67	agency, the term means an employment position that which will
68	exist for less than 6 consecutive months, or other employment
69	position as determined by rule of the division, regardless of
70	whether it will exist for 6 consecutive months or longer.
71	(63)  "State board" or "board" means the State Board of
72	Administration.
73	(64)  "Trustees" means the Board of Trustees of the State
74	Board of Administration.
75	Section 2.  Subsection (6) is added to section 121.031,
76	Florida Statutes, to read:
77	121.031  Administration of system; appropriation; oaths;
78	actuarial studies; public records.--
79	(6)  Unless prior written approval is obtained from the
80	department or state board, any promotional materials or
81	advertisements that, directly or indirectly, refer to the
82	Florida Retirement System or the FRS, must contain a disclaimer
83	that the information is not approved or endorsed by the Florida
84	Retirement System.
85	Section 3.  Paragraph (a) of subsection (1) and paragraph
86	(f) of subsection (2) of section 121.051, Florida Statutes, are
87	amended, and subsection (10) is added to that section, to read:
88	121.051  Participation in the system.--
89	(1)  COMPULSORY PARTICIPATION.--
90	(a)  The provisions of this law are shall be compulsory as
91	to all officers and employees, except elected officers who meet
92	the requirements of s. 121.052(3), who are employed on or after
93	December 1, 1970, by of an employer other than those referred to
94	in paragraph (2)(b), and each officer or employee, as a
95	condition of employment, shall become a member of the system as
96	of his or her date of employment, except that a person who is
97	retired from any state retirement system and is reemployed on or
98	after December 1, 1970, may shall not be permitted to renew his
99	or her membership in any state retirement system except as
100	provided in s. 121.091(4)(h) for a person who recovers from
101	disability, and as provided in s. 121.091(9)(b)10. s.
102	121.091(9)(b)8. for a person who is elected to public office,
103	and, effective July 1, 1991, as provided in s. 121.122 for all
104	other retirees. Officers and employees of the University
105	Athletic Association, Inc., a nonprofit association connected
106	with the University of Florida, employed on and after July 1,
107	1979, may shall not participate in any state-supported
108	retirement system.
109	1.a.  Any person appointed on or after July 1, 1989, to a
110	faculty position in a college at the J. Hillis Miller Health
111	Center at the University of Florida or the Medical Center at the
112	University of South Florida which has a faculty practice plan
113	adopted provided by rule may adopted by the Board of Regents
114	shall not participate in the Florida Retirement System.
115	Effective July 1, 2008, any person appointed thereafter to a
116	faculty position, including clinical faculty, in a college at a
117	state university that has a faculty practice plan authorized by
118	the Board of Governors may not participate in the Florida
119	Retirement System. A faculty member so appointed shall
120	participate in the optional retirement program for the State
121	University System on the basis of his or her state-funded
122	compensation, notwithstanding the provisions of s. 121.35(2)(a).
123	b.  For purposes of this subparagraph, the term "faculty
124	position" is defined as a position assigned the principal
125	responsibility of teaching, research, or public service
126	activities or administrative responsibility directly related to
127	the academic mission of the college. The term "clinical faculty"
128	is defined as a faculty position appointment in conjunction with
129	a professional position in a hospital or other clinical
130	environment at a college. The term "faculty practice plan"
131	includes professional services to patients, institutions, or
132	other parties which are rendered by the clinical faculty employed
133	by a college that has a faculty practice plan at a state
134	university authorized by the Board of Governors.
135	(2)  OPTIONAL PARTICIPATION.--
136	(f)1.  If Whenever an employer that participates in the
137	Florida Retirement System undertakes the transfer, merger, or
138	consolidation of governmental services or assumes the functions
139	or activities of an employing governmental entity that was not
140	an employer under the system, the employer must notify the
141	department at least 60 days prior to such action and shall
142	provide documentation as required by the department. The
143	transfer, merger, or consolidation of governmental services or
144	assumption of governmental functions and activities must occur
145	between public employers. The current or former employer may pay
146	the employees' past service cost unless prohibited under this
147	chapter. This paragraph does not apply to the transfer, merger,
148	or consolidation of governmental services or assumption of
149	functions and activities of a public entity under a leasing
150	agreement having a co-employer relationship. Employers and
151	employees of a public governmental employer whose service is
152	covered by a leasing agreement under s. 110.191, other leasing
153	agreement, or a co-employer relationship are not eligible to
154	participate in the Florida Retirement System.
155	2.  If When the agency to which a member's employing unit
156	is transferred, merged, or consolidated does not participate in
157	the Florida Retirement System, a member may shall elect in
158	writing to remain in the Florida Retirement System or to
159	transfer to the local retirement system operated by the such
160	agency. If such agency does not participate in a local
161	retirement system, the member shall continue membership in the
162	Florida Retirement System. In either case, the membership
163	continues shall continue for as long as the member is employed
164	by the agency to which his or her unit was transferred, merged,
165	or consolidated.
166	(10)  PROHIBITED PARTICIPATION.--A person who is an inmate
167	or prisoner at the time the work is performed is prohibited from
168	participating in, or receiving benefits from, any part of the
169	Florida Retirement System based on such work.
170	Section 4.  Paragraph (e) of subsection (3) of section
171	121.052, Florida Statutes, is amended to read:
172	121.052  Membership class of elected officers.--
173	(3)  PARTICIPATION AND WITHDRAWAL, GENERALLY.--Effective
174	July 1, 1990, participation in the Elected Officers' Class shall
175	be compulsory for elected officers listed in paragraphs (2)(a)-
176	(d) and (f) assuming office on or after said date, unless the
177	elected officer elects membership in another class or withdraws
178	from the Florida Retirement System as provided in paragraphs
179	(3)(a)-(d):
180	(e)  Effective July 1, 2008 July 1, 2001, the governing
181	body of a municipality or special district may, by majority
182	vote, elect to designate all its elected positions for inclusion
183	in the Elected Officers' Class. Such election shall be made
184	between July 1, 2008, and June 30, 2009 July 1, 2001, and
185	December 31, 2001, and shall be irrevocable. The designation of
186	such positions shall be effective the first day of the month
187	following receipt by the department of the ordinance or
188	resolution passed by the governing body.
189	Section 5.  Subsections (1) and (2) of section 121.053,
190	Florida Statutes, are amended to read:
191	121.053  Participation in the Elected Officers' Class for
192	retired members.--
193	(1)(a)1.  Any retiree of a state-administered retirement
194	system who initially serves in an elective office in a regularly
195	established position with a covered employer on or after July 1,
196	2009, shall not be enrolled in the Florida Retirement System.
197	2.  An elected officer who is elected or appointed to an
198	elective office and is participating in the Deferred Retirement
199	Option Program is subject to termination as provided in s.
200	121.021(39)(b), and reemployment limitations as provided in s.
201	121.091(9), upon completion of his or her DROP participation
202	period.
203	(b)  Before July 1, 2009, any member who retired under any
204	existing system as defined in s. 121.021(2), and receives a
205	benefit thereof, and who serves in an office covered by the
206	Elected Officers' Class for a period of at least 6 years, shall
207	be entitled to receive an additional retirement benefit for such
208	elected officer service prior to July 1, 1990, under the Elected
209	Officers' Class of the Florida Retirement System, as follows:
210	1.  Upon completion of 6 or more years of creditable
211	service in an office covered by the Elected Officers' Class, s.
212	121.052, such member shall notify the administrator of his or
213	her intent to purchase elected officer service prior to July 1,
214	1990, and shall pay the member contribution applicable for the
215	period being claimed, plus 4 percent interest compounded
216	annually from the first year of service claimed until July 1,
217	1975, and 6.5 percent interest compounded annually thereafter,
218	until full payment is made to the Florida Retirement System
219	Trust Fund; however, such member may purchase retirement credit
220	under the Elected Officers' Class only for such service as an
221	elected officer.
222	2.  Upon payment of the amount specified in subparagraph
223	1., the employer shall pay into the Florida Retirement System
224	Trust Fund the applicable employer contribution for the period
225	of elected officer service prior to July 1, 1990, being claimed
226	by the member, plus 4 percent interest compounded annually from
227	the first year of service claimed until July 1, 1975, and 6.5
228	percent interest compounded annually thereafter, until full
229	payment is made to the Florida Retirement System Trust Fund.
230	(c)(b)  Any retired member of the Florida Retirement
231	System, or any existing system as defined in s. 121.021(2), who,
232	on or after July 1, 1990, through June 30, 2009, is serving in,
233	or is elected or appointed to, an elective office covered by the
234	Elected Officers' Class shall be enrolled in the appropriate
235	subclass of the Elected Officers' Class of the Florida
236	Retirement System, and applicable contributions shall be paid
237	into the Florida Retirement System Trust Fund as provided in s.
238	121.052(7). Pursuant thereto:
239	1.  Any such retired member shall be eligible to continue
240	to receive retirement benefits as well as compensation for the
241	elected officer service for as long as he or she remains in an
242	elective office covered by the Elected Officers' Class.
243	2.  If any such member serves in an elective office covered
244	by the Elected Officers' Class and becomes vested under that
245	class, he or she shall be entitled to receive an additional
246	retirement benefit for such elected officer service.
247	3.  Such member shall be entitled to purchase additional
248	retirement credit in the Elected Officers' Class for any
249	postretirement service performed in an elected position eligible
250	for the Elected Officers' Class prior to July 1, 1990, or in the
251	Regular Class for any postretirement service performed in any
252	other regularly established position prior to July 1, 1991, by
253	paying the applicable Elected Officers' Class or Regular Class
254	employee and employer contributions for the period being
255	claimed, plus 4 percent interest compounded annually from the
256	first year of service claimed until July 1, 1975, and 6.5
257	percent interest compounded thereafter, until full payment is
258	made to the Florida Retirement System Trust Fund. The
259	contribution for postretirement Regular Class service between
260	July 1, 1985, and July 1, 1991, for which the reemployed retiree
261	contribution was paid, shall be the difference between such
262	contribution and the total applicable contribution for the
263	period being claimed, plus interest. The employer of such member
264	may pay the applicable employer contribution in lieu of the
265	member. If a member does not wish to claim credit for all of the
266	postretirement service for which he or she is eligible, the
267	service the member claims must be the most recent service.
268	4.  Creditable service for which credit was received, or
269	which remained unclaimed, at retirement may not be claimed or
270	applied toward service credit earned following renewed
271	membership. However, service earned in accordance with the
272	renewed membership provisions in s. 121.122 may be used in
273	conjunction with creditable service earned under this paragraph,
274	provided applicable vesting requirements and other existing
275	statutory conditions required by this chapter are met.
276	5.  An elected officer who is elected or appointed to an
277	elective office and is participating in the Deferred Retirement
278	Option Program before July 1, 2009, is not subject to
279	termination as provided in s. 121.021(39)(b), or reemployment
280	limitations as provided in s. 121.091(9), until the end of his
281	or her current term of office or, if the officer is
282	consecutively elected or reelected to an elective office
283	eligible for coverage under the Florida Retirement System, until
284	he or she no longer holds such an elective office, as follows:
285	a.  At the end of the 60-month DROP period:
286	(I)  The officer's DROP account shall accrue no additional
287	monthly benefits, but shall continue to earn interest as
288	provided in s. 121.091(13).
289	(II)  No retirement contributions shall be required of the
290	employer of the elected officer and no additional retirement
291	credit shall be earned under the Florida Retirement System.
292	b.  Nothing herein shall prevent an elected officer from
293	voluntarily terminating his or her elective office at any time
294	and electing to receive his or her DROP proceeds. However, until
295	termination requirements are fulfilled as provided in s.
296	121.021(39), any elected officer whose termination limitations
297	are extended by this section shall be ineligible for renewed
298	membership in the system and shall receive no pension payments,
299	DROP lump sum payments, or any other state payment other than
300	the statutorily determined salary, travel, and per diem for the
301	elective office.
302	c.  Upon termination, the officer shall receive his or her
303	accumulated DROP account, plus interest, and shall accrue and
304	commence receiving monthly retirement benefits, which shall be
305	paid on a prospective basis only.
306
307	However, an officer electing to participate in the Deferred
308	Retirement Option Program on or before June 30, 2002, shall not
309	be required to terminate and shall remain subject to the
310	provisions of this subparagraph as adopted in section 1 of
311	chapter 2001-235, Laws of Florida.
312	(2)  Upon attaining his or her normal retirement date and
313	payment of the amount specified in paragraphs (1)(b) and (c)
314	(1)(a) and (b), and upon application to the administrator of the
315	intent to retire, the member shall receive a monthly benefit
316	under this section, in addition to any benefits already being
317	received, which shall commence on the last day of the month of
318	retirement and be payable on the last day of the month
319	thereafter during his or her lifetime. The amount of such
320	monthly benefit shall be the total percentage of retirement
321	credit purchased under this section multiplied by the member's
322	average monthly compensation as an elected officer, adjusted
323	according to the option selected at retirement under s.
324	121.091(6).
325	Section 6.  Paragraph (f) of subsection (1) and paragraph
326	(c) of subsection (6) of section 121.055, Florida Statutes, are
327	amended to read:
328	121.055  Senior Management Service Class.--There is hereby
329	established a separate class of membership within the Florida
330	Retirement System to be known as the "Senior Management Service
331	Class," which shall become effective February 1, 1987.
332	(1)
333	(f)  Effective July 1, 1997:
334	1.  Except as provided in subparagraph 3., any elected
335	state officer eligible for membership in the Elected Officers'
336	Class under s. 121.052(2)(a), (b), or (c) who elects membership
337	in the Senior Management Service Class under s. 121.052(3)(c)
338	may, within 6 months after assuming office or within 6 months
339	after this act becomes a law for serving elected state officers,
340	elect to participate in the Senior Management Service Optional
341	Annuity Program, as provided in subsection (6), in lieu of
342	membership in the Senior Management Service Class.
343	2.  Except as provided in subparagraph 3., any elected
344	county officer eligible for membership in the Elected Officers'
345	Class under s. 121.052(2)(d) who elects membership in the Senior
346	Management Service Class under s. 121.052(3)(c) may, within 6
347	months after assuming office, or within 6 months after this act
348	becomes a law for serving elected county officers, elect to
349	withdraw from the Florida Retirement System participate in a
350	lifetime monthly annuity program, as provided in subparagraph
351	(b)2., in lieu of membership in the Senior Management Service
352	Class.
353	3.  Any retiree of a state-administered retirement system
354	who is initially reemployed on or after July 1, 2009, as an
355	elected official eligible for Elected Officers' Class membership
356	shall not be eligible for renewed membership in the Senior
357	Management Service Optional Annuity Program as provided in
358	subsection (6) or to withdraw from the Florida Retirement System
359	as a renewed member as provided in subparagraph (b)2., as
360	applicable, in lieu of Senior Management Service Class
361	membership.
362	(6)
363	(c)  Participation.--
364	1.  Any eligible employee who is employed on or before
365	February 1, 1987, may elect to participate in the optional
366	annuity program in lieu of participation in the Senior
367	Management Service Class. Such election shall be made in writing
368	and filed with the department and the personnel officer of the
369	employer on or before May 1, 1987. Any eligible employee who is
370	employed on or before February 1, 1987, and who fails to make an
371	election to participate in the optional annuity program by May
372	1, 1987, shall be deemed to have elected membership in the
373	Senior Management Service Class.
374	2.  Except as provided in subparagraph 6., any employee who
375	becomes eligible to participate in the optional annuity program
376	by reason of initial employment commencing after February 1,
377	1987, may, within 90 days after the date of commencement of
378	employment, elect to participate in the optional annuity
379	program. Such election shall be made in writing and filed with
380	the personnel officer of the employer. Any eligible employee who
381	does not within 90 days after commencement of such employment
382	elect to participate in the optional annuity program shall be
383	deemed to have elected membership in the Senior Management
384	Service Class.
385	3.  A person who is appointed to a position in the Senior
386	Management Service Class and who is a member of an existing
387	retirement system or the Special Risk or Special Risk
388	Administrative Support Classes of the Florida Retirement System
389	may elect to remain in such system or class in lieu of
390	participation in the Senior Management Service Class or optional
391	annuity program. Such election shall be made in writing and
392	filed with the department and the personnel officer of the
393	employer within 90 days of such appointment. Any eligible
394	employee who fails to make an election to participate in the
395	existing system, the Special Risk Class of the Florida
396	Retirement System, the Special Risk Administrative Support Class
397	of the Florida Retirement System, or the optional annuity
398	program shall be deemed to have elected membership in the Senior
399	Management Service Class.
400	4.  Except as provided in subparagraph 5., an employee's
401	election to participate in the optional annuity program is
402	irrevocable as long as such employee continues to be employed in
403	an eligible position and continues to meet the eligibility
404	requirements set forth in this paragraph.
405	5.  Effective from July 1, 2002, through September 30,
406	2002, any active employee in a regularly established position
407	who has elected to participate in the Senior Management Service
408	Optional Annuity Program has one opportunity to choose to move
409	from the Senior Management Service Optional Annuity Program to
410	the Florida Retirement System defined benefit program.
411	a.  The election must be made in writing and must be filed
412	with the department and the personnel officer of the employer
413	before October 1, 2002, or, in the case of an active employee
414	who is on a leave of absence on July 1, 2002, within 90 days
415	after the conclusion of the leave of absence. This election is
416	irrevocable.
417	b.  The employee will receive service credit under the
418	defined benefit program of the Florida Retirement System equal
419	to his or her years of service under the Senior Management
420	Service Optional Annuity Program. The cost for such credit shall
421	be an amount representing the present value of that employee's
422	accumulated benefit obligation for the affected period of
423	service.
424	c.  The employee must transfer the total accumulated
425	employer contributions and earnings on deposit in his or her
426	Senior Management Service Optional Annuity Program account. If
427	the transferred amount is not sufficient to pay the amount due,
428	the employee must pay a sum representing the remainder of the
429	amount due. In no case may the employee retain any employer
430	contributions or earnings thereon from the Senior Management
431	Service Optional Annuity Program account.
432	6.  Any retiree of a state-administered retirement system
433	who is initially reemployed on or after July 1, 2009, shall not
434	be eligible for renewed membership in the Senior Management
435	Service Optional Annuity Program.
436	Section 7.  Paragraph (a) of subsection (6) of section
437	121.071, Florida Statutes, is amended to read:
438	121.071  Contributions.--Contributions to the system shall
439	be made as follows:
440	(6)(a)  Required employee contributions for all service
441	other than current service, including, but not limited to, prior
442	service, past service, military service, leave-of-absence
443	service, out-of-state service, and certain non-Florida
444	Retirement System in-state service, shall be paid by cash,
445	personal check, cashier's check, or money order, or a direct
446	rollover or transfer from a qualified plan as provided under the
447	Internal Revenue Code. The payment must only; shall be
448	accompanied by a statement identifying the service for which
449	payment is made,; and shall be made in a lump sum for the total
450	amount due or in annual payments of not less than $100, except
451	for the final payment if less than $100, unless another method
452	of payment is authorized by law or rule.
453	Section 8.  Paragraphs (f) and (h) of subsection (1) of
454	section 121.081, Florida Statutes, are amended to read:
455	121.081  Past service; prior service;
456	contributions.--Conditions under which past service or prior
457	service may be claimed and credited are:
458	(1)
459	(f)  If When any person, either prior to this act or
460	hereafter, becomes entitled to and participates does participate
461	in one of the retirement systems under consolidated within or
462	created by this chapter through the consolidation or merger of
463	governments or the transfer of functions between units of
464	government, either at the state or local level or between state
465	and local units, or through the assumption of functions or
466	activities by a state or local unit from an employing
467	governmental entity that which was not an employer under the
468	system, and such person becomes a member of the Florida
469	Retirement System, such person is shall be entitled to receive
470	past-service credit as defined in s. 121.021(18) for the time
471	the such person performed services for, and was an employee of,
472	such state or local unit or other governmental employing entity
473	prior to the transfer, merger, consolidation, or assumption of
474	functions and activities. Past-service credit allowed by this
475	paragraph is shall also be available to any person who becomes a
476	member of an existing system, as defined in s. 121.021(2), prior
477	to December 1, 1970, through the transfer, merger,
478	consolidation, or assumption of functions and activities set
479	forth in this paragraph and who subsequently becomes a member of
480	the Florida Retirement System. However, credit for the past
481	service may not be granted until contributions are made in the
482	manner provided in this subsection. If a person rejected Florida
483	Retirement System membership at the time of the transfer,
484	merger, or consolidation, or assumption the required
485	contributions shall be at total actuarial cost as specified in
486	paragraph (e). Such contributions or accrued interest may not be
487	paid from any public state funds.
488	(h)  The following provisions apply to the purchase of past
489	service:
490	1.  Notwithstanding any of the provisions of this
491	subsection, past-service credit may not be purchased under this
492	chapter for any service that is used to obtain a pension or
493	benefit from a any local retirement system. Eligibility to
494	receive or the receipt of contributions to a retirement plan
495	made by the employer on behalf of the employee is considered a
496	benefit.
497	2.  A member may not receive past service credit under
498	paragraphs (a), (b), (e), or (f) for any leaves of absence
499	without pay, except that credit for active military service
500	leaves of absence may be claimed under paragraphs (a), (b), and
501	(f), in accordance with s. 121.111(1).
502	3.  A member may not receive past service credit for co-
503	employer service. Co-employer service or a co-employer
504	relationship is employment in a single position simultaneously
505	covered and reported by both a public employer and a private
506	employer.
507	4.3.  If a member does not want desire to receive credit
508	for all of his or her past service, the period the member claims
509	must be the most recent past service prior to his or her
510	participation in the Florida Retirement System.
511	5.4.  The cost of past service purchased by an employing
512	agency for its employees may be amortized over the such period
513	of time as is provided in the agreement, but not to exceed 15
514	years, calculated in accordance with rule 60S-1.007(5)(f),
515	Florida Administrative Code.
516	6.5.  The retirement account of each member for whom past
517	service is being provided by his or her employer shall be
518	credited with all past service the employer agrees to purchase
519	as soon as the agreement between the employer and the department
520	is executed. Pursuant thereto:
521	a.  Each such member's account shall also be posted with
522	the total contribution his or her employer agrees to make on in
523	the member's behalf for past service earned prior to October 1,
524	1975, excluding those contributions representing the employer's
525	matching share and the compound interest calculation on the
526	total contribution. However, a portion of any contributions paid
527	by an employer for past service credit earned on and after
528	October 1, 1975, may not be posted to the a member's account.
529	b.  A refund of contributions payable after an employer has
530	made a written agreement to purchase past service for employees
531	of the covered group includes shall include contributions for
532	past service which are posted to a member's account. However,
533	contributions for past service earned on and after October 1,
534	1975, are not refundable.
535	Section 9.  Subsections (9), (13), and (14) of section
536	121.091, Florida Statutes, are amended to read:
537	121.091  Benefits payable under the system.--Benefits may
538	not be paid under this section unless the member has terminated
539	employment as provided in s. 121.021(39)(a) or begun
540	participation in the Deferred Retirement Option Program as
541	provided in subsection (13), and a proper application has been
542	filed in the manner prescribed by the department. The department
543	may cancel an application for retirement benefits when the
544	member or beneficiary fails to timely provide the information
545	and documents required by this chapter and the department's
546	rules. The department shall adopt rules establishing procedures
547	for application for retirement benefits and for the cancellation
548	of such application when the required information or documents
549	are not received.
550	(9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
551	(a)  Any person who is retired under this chapter, except
552	under the disability retirement provisions of subsection (4),
553	may be employed by an employer that does not participate in a
554	state-administered retirement system and may receive
555	compensation from that employment without limiting or
556	restricting in any way the retirement benefits payable to that
557	person.
558	(b)1.a.  Any person who is retired under this chapter,
559	except under the disability retirement provisions of subsection
560	(4), may be reemployed by any private or public employer after
561	retirement and receive retirement benefits and compensation from
562	the his or her employer without limitation any limitations,
563	except that the a person may not receive both a salary from
564	reemployment with any agency participating in the Florida
565	Retirement System and retirement benefits under this chapter for
566	a period of 12 calendar months immediately after subsequent to
567	the calendar month that termination is met as defined in s.
568	121.021(39), except as provided in sub-subparagraph b. date of
569	retirement. However, a DROP participant may shall continue
570	employment and receive a salary during the period of
571	participation in DROP the Deferred Retirement Option Program, as
572	provided in subsection (13).
573	b.  Any person who is retired under a state-administered
574	retirement system may not receive a retirement benefit if he or
575	she receives compensation totaling $100,000 or more from an
576	employer participating in the Florida Retirement System. This
577	limitation begins immediately upon employment if the annualized
578	compensation meets or exceeds the limit, or in the month that
579	reported compensation meets or exceeds the limit during the plan
580	year, and continues for as long as the expected payments equal
581	or exceed $100,000. This limitation includes payments as defined
582	in s. 121.021(22) for work performed in regularly established
583	positions. The employer is responsible for notifying the
584	Division of Retirement when this occurs, either at employment or
585	if salary increases lead to the level specified. Any person
586	employed in violation of this sub-subparagraph and any employing
587	agency that knowingly employs or appoints such person without
588	notifying the Division of Retirement to suspend retirement
589	benefits shall be jointly and severally liable for reimbursement
590	to the Florida Retirement System Trust Fund of any benefits paid
591	during the reemployment limitation period.
592	2.  Any person to whom the limitation in subparagraph 1.
593	applies who violates such reemployment limitation and who is
594	reemployed with any agency participating in the Florida
595	Retirement System after he or she has been retired and met the
596	definition of termination in s. 121.021(39), but before
597	completion of the 12-month limitation period must shall give
598	timely notice of this fact in writing to the employer and to the
599	Division of Retirement and shall have his or her retirement
600	benefits suspended while employed during for the balance of the
601	12-month limitation period unless the person exceeds the 780-
602	hour limitation in subparagraph 4., subparagraph 5., or
603	subparagraph 12. Any person employed in violation of this
604	paragraph and any employing agency that which knowingly employs
605	or appoints such person without notifying the division of
606	Retirement to suspend retirement benefits are shall be jointly
607	and severally liable for reimbursement to the retirement trust
608	fund of any benefits paid during the reemployment limitation
609	period. To avoid liability, the such employing agency must shall
610	have a written statement from the retiree that he or she is not
611	retired from a state-administered retirement system. Any
612	retirement benefits received while reemployed during this
613	reemployment limitation period must shall be repaid to the
614	Florida Retirement System Trust Fund, and retirement benefits
615	shall remain suspended until such repayment has been made.
616	Benefits suspended beyond the reemployment limitation shall
617	apply toward repayment of benefits received in violation of the
618	reemployment limitation.
619	3.  A district school board may reemploy a retired member
620	as a substitute or hourly teacher, education paraprofessional,
621	transportation assistant, bus driver, or food service worker on
622	a noncontractual basis after he or she has been retired and met
623	the definition of termination for 1 calendar month, in
624	accordance with s. 121.021(39). A district school board may
625	reemploy a retired member as instructional personnel, as defined
626	in s. 1012.01(2)(a), on an annual contractual basis after he or
627	she has been retired for 1 calendar month, in accordance with s.
628	121.021(39). Any other retired member who is reemployed before
629	meeting the definition of termination voids within 1 calendar
630	month after retirement shall void his or her application for
631	retirement benefits. District school boards reemploying such
632	teachers, education paraprofessionals, transportation
633	assistants, bus drivers, or food service workers are subject to
634	the retirement contribution required by subparagraph 9. 7.
635	4.  A community college board of trustees may reemploy a
636	retired member as an adjunct instructor, that is, an instructor
637	who is noncontractual and part-time, or as a participant in a
638	phased retirement program within the Florida Community College
639	System, after he or she has been retired and met the definition
640	of termination for 1 calendar month, in accordance with s.
641	121.021(39). Any retired member who is reemployed before meeting
642	the definition of termination voids within 1 calendar month
643	after retirement shall void his or her application for
644	retirement benefits. Boards of trustees reemploying such
645	instructors are subject to the retirement contribution required
646	in subparagraph 7. A retired member may be reemployed as an
647	adjunct instructor for no more than 780 hours during the first
648	12 calendar months after meeting the definition of termination
649	of retirement. Any retired member reemployed for more than 780
650	hours during the first 12 months of retirement must shall give
651	timely notice in writing to the employer and to the Division of
652	Retirement of the date he or she will exceed the limitation. The
653	division shall suspend his or her retirement benefits for the
654	remainder of the 12-month limitation period first 12 months of
655	retirement. Any person employed in violation of this
656	subparagraph and any employing agency that which knowingly
657	employs or appoints such person without notifying the division
658	of Retirement to suspend retirement benefits are shall be
659	jointly and severally liable for reimbursement to the retirement
660	trust fund of any benefits paid during the reemployment
661	limitation period. To avoid liability, the such employing agency
662	must shall have a written statement from the retiree that he or
663	she is not retired from a state-administered retirement system.
664	Any retirement benefits received by a retired member while
665	reemployed in excess of 780 hours during the 12-month limitation
666	period must first 12 months of retirement shall be repaid to the
667	Florida Retirement System Trust Fund, and retirement benefits
668	shall remain suspended until repayment is made. Benefits
669	suspended beyond the end of the 12-month limitation period
670	retired member's first 12 months of retirement shall apply
671	toward repayment of benefits received in violation of the 780-
672	hour reemployment limitation.
673	5.  The State University System may reemploy a retired
674	member as an adjunct faculty member or as a participant in a
675	phased retirement program within the State University System
676	after the retired member has met the definition of termination
677	been retired for 1 calendar month, in accordance with s.
678	121.021(39). A Any retired member who is reemployed before
679	meeting the definition of termination voids within 1 calendar
680	month after retirement shall void his or her application for
681	retirement benefits. The State University System is subject to
682	the retired contribution required in subparagraph 9. 7., as
683	appropriate. A retired member may be reemployed as an adjunct
684	faculty member or a participant in a phased retirement program
685	for no more than 780 hours during the first 12 calendar months
686	after meeting the definition of termination of his or her
687	retirement. Any retired member reemployed for more than 780
688	hours during the 12-month limitation period first 12 months of
689	retirement shall give timely notice in writing to the employer
690	and to the Division of Retirement of the date he or she will
691	exceed the limitation. The division shall suspend his or her
692	retirement benefits for the remainder of the 12-month limitation
693	period first 12 months of retirement. Any person employed in
694	violation of this subparagraph and any employing agency that
695	which knowingly employs or appoints such person without
696	notifying the division of Retirement to suspend retirement
697	benefits are shall be jointly and severally liable for
698	reimbursement to the retirement trust fund of any benefits paid
699	during the reemployment limitation period. To avoid liability,
700	such employing agency must shall have a written statement from
701	the retiree that he or she is not retired from a state-
702	administered retirement system. Any retirement benefits received
703	by a retired member while reemployed in excess of 780 hours
704	during the first 12 months of retirement must shall be repaid to
705	the Florida Retirement System Trust Fund, and retirement
706	benefits shall remain suspended until repayment is made.
707	Benefits suspended beyond the end of the retired member's 12-
708	month limitation period first 12 months of retirement shall
709	apply toward repayment of benefits received in violation of the
710	780-hour reemployment limitation.
711	6.  The Board of Trustees of the Florida School for the
712	Deaf and the Blind may reemploy a retired member as a substitute
713	teacher, substitute residential instructor, or substitute nurse
714	on a noncontractual basis after he or she has met the definition
715	of termination been retired for 1 calendar month, in accordance
716	with s. 121.021(39). The Board of Trustees of the Florida School
717	for the Deaf and the Blind may reemploy a retired member as
718	instructional personnel, as defined in s. 1012.01(2)(a), on an
719	annual contractual basis after he or she has been retired and
720	met the definition of termination in s. 121.021(39). Any retired
721	member who is reemployed before meeting the definition of
722	termination voids within 1 calendar month after retirement shall
723	void his or her application for retirement benefits. The Board
724	of Trustees of the Florida School for the Deaf and the Blind
725	reemploying such teachers, residential instructors, or nurses is
726	subject to the retirement contribution required by subparagraph
727	9. 7. Reemployment of a retired member as a substitute teacher,
728	substitute residential instructor, or substitute nurse is
729	limited to 780 hours during the first 12 months of his or her
730	retirement. Any retired member reemployed for more than 780
731	hours during the first 12 months of retirement shall give timely
732	notice in writing to the employer and to the division of the
733	date he or she will exceed the limitation. The division shall
734	suspend his or her retirement benefits for the remainder of the
735	first 12 months of retirement. Any person employed in violation
736	of this subparagraph and any employing agency which knowingly
737	employs or appoints such person without notifying the Division
738	of Retirement to suspend retirement benefits shall be jointly
739	and severally liable for reimbursement to the retirement trust
740	fund of any benefits paid during the reemployment limitation
741	period. To avoid liability, such employing agency shall have a
742	written statement from the retiree that he or she is not retired
743	from a state-administered retirement system. Any retirement
744	benefits received by a retired member while reemployed in excess
745	of 780 hours during the first 12 months of retirement shall be
746	repaid to the Retirement System Trust Fund, and his or her
747	retirement benefits shall remain suspended until payment is
748	made. Benefits suspended beyond the end of the retired member's
749	first 12 months of retirement shall apply toward repayment of
750	benefits received in violation of the 780-hour reemployment
751	limitation.
752	7.  A developmental research school may reemploy a retired
753	member as a substitute or hourly teacher or an education
754	paraprofessional as defined in s. 1012.01(2) on a noncontractual
755	basis after he or she has been retired for 1 calendar month, in
756	accordance with s. 121.021(39). A developmental research school
757	may reemploy a retired member as instructional personnel, as
758	defined in s. 1012.01(2)(a), on an annual contractual basis
759	after he or she has been retired for 1 calendar month, in
760	accordance with s. 121.021(39). Any other retired member who is
761	reemployed within 1 calendar month after retirement voids his or
762	her application for retirement benefits. A developmental
763	research school that reemploys retired teachers and education
764	paraprofessionals are subject to the retirement contribution
765	required by subparagraph 9.
766	8.  A charter school may reemploy a retired member as a
767	substitute or hourly teacher on a noncontractual basis after he
768	or she has been retired for 1 calendar month, in accordance with
769	s. 121.021(39). A charter school may reemploy a retired member
770	as instructional personnel, as defined in s. 1012.01(2(a), on an
771	annual contractual basis after he or she has been retired for 1
772	calendar month, in accordance with s. 121.021(39). Any other
773	retired member who is reemployed within 1 calendar month after
774	retirement voids his or her application for retirement benefits.
775	A charter school that reemploys such teachers is subject to the
776	retirement contribution required by subparagraph 9.
777	9.a.7.  The employment by an employer of a any retiree or
778	DROP participant of a any state-administered retirement system
779	does not affect shall have no effect on the average final
780	compensation or years of creditable service of the retiree or
781	DROP participant.
782	b.  Prior to July 1, 1991, and for initial enrollment as a
783	renewed member through June 30, 2009, upon employment of any
784	person, other than an elected officer as provided in s. 121.053,
785	who is has been retired under a any state-administered
786	retirement program, the employer shall pay retirement
787	contributions in an amount equal to the unfunded actuarial
788	liability portion of the employer contribution which would be
789	required for regular members of the Florida Retirement System.
790	Effective July 1, 1991, contributions shall be made as provided
791	in s. 121.122 for retirees who have with renewed membership or,
792	as provided in subsection (13), for with respect to DROP
793	participants.
794	c.  Any person who is retired under a state-administered
795	retirement program and who is initially reemployed on or after
796	July 1, 2009, may not renew membership in the Florida Retirement
797	System. The employer shall pay retirement contributions in an
798	amount equal to the unfunded actuarial liability portion of the
799	employer contribution that would be required for active members
800	of the Florida Retirement System in addition to the
801	contributions required by s. 121.76.
802	10.8.  Any person who has previously retired and who is
803	holding an elective public office or an appointment to an
804	elective public office initially eligible for the Elected
805	Officers' Class on or after July 1, 1990, through June 30, 2009,
806	shall be enrolled in the Florida Retirement System as provided
807	in s. 121.053(1)(c)(b) or, if holding an elective public office
808	that does not qualify for the Elected Officers' Class on or
809	after July 1, 1991, through June 30, 2009, shall be enrolled in
810	the Florida Retirement System as provided in s. 121.122, and
811	shall continue to receive retirement benefits as well as
812	compensation for the elected officer's service for as long as he
813	or she remains in elective office. However, any retired member
814	who served in an elective office prior to July 1, 1990,
815	suspended his or her retirement benefit, and had his or her
816	Florida Retirement System membership reinstated shall, upon
817	retirement from such office, have his or her retirement benefit
818	recalculated to include the additional service and compensation
819	earned.
820	b.  Any person who has retired and who is holding an
821	elective public office or an appointment to an elective public
822	office initially eligible for the Elected Officers' Class on or
823	after July 1, 2009, shall not be enrolled in the Florida
824	Retirement System as provided in s. 121.053(1)(c) or, if holding
825	an elective public office that does not qualify for the Elected
826	Officers' Class and is initially eligible on or after July 1,
827	2009, shall not be enrolled in the Florida Retirement System as
828	provided in s. 121.122, and shall not continue to receive
829	retirement benefits during the first 12 calendar months after
830	meeting the definition of termination in s. 121.021(39).
831	11.a.9.  Any person who is holding an elective public
832	office which is covered by the Florida Retirement System and who
833	is concurrently employed in nonelected covered employment before
834	July 1, 2009, may elect to retire while continuing employment in
835	the elective public office, if provided that he or she
836	terminates shall be required to terminate his or her nonelected
837	covered employment. Any person who exercises this election shall
838	receive his or her retirement benefits in addition to the
839	compensation of the elective office without regard to the time
840	limitations otherwise provided in this subsection. A No person
841	who seeks to exercise the provisions of this subparagraph, as
842	they the same existed prior to May 3, 1984, may not shall be
843	deemed to be retired under those provisions, unless such person
844	is eligible to retire under the provisions of this subparagraph,
845	as amended by chapter 84-11, Laws of Florida.
846	b.  Any person who is holding an elective public office
847	which is covered by the Florida Retirement System and who is
848	concurrently employed in nonelected covered employment on or
849	after July 1, 2009, may not elect to retire while continuing
850	employment in the elective public office. Such person must meet
851	the definition of termination in s. 121.021(39) and is subject
852	to the limitations provided in this section.
853	12.10.  The limitations of this paragraph apply to
854	reemployment in any capacity with an "employer" as defined in s.
855	121.021(10), irrespective of the category of funds from which
856	the person is compensated.
857	13.  A developmental research school may reemploy a retired
858	member as a substitute or hourly teacher or an education
859	paraprofessional, as defined in s. 1012.01(2), on a
860	noncontractual basis after he or she has been retired and met
861	the definition of termination in s. 121.021(39). A developmental
862	research school may reemploy a retired member as instructional
863	personnel, as defined in s. 1012.01(2)(a), on an annual
864	contractual basis after he or she has been retired and met the
865	definition of termination in s. 121.021(39). Any other retired
866	member who is reemployed within 12 calendar months after
867	retirement voids his or her application for retirement benefits.
868	A developmental research school that reemploys retired teachers
869	and education paraprofessionals are subject to the retirement
870	contribution required by subparagraph 7.
871	14.  A charter school may reemploy a retired member as a
872	substitute or hourly teacher on a noncontractual basis after he
873	or she has been retired and met the definition of termination in
874	s. 121.021(39). A charter school may reemploy a retired member
875	as instructional personnel, as defined in s. 1012.01(2)(a), on
876	an annual contractual basis after he or she has been retired and
877	met the definition of termination in s. 121.021(39). Any other
878	retired member who is reemployed within 12 calendar months after
879	retirement voids his or her application for retirement benefits.
880	A charter school that reemploys such teachers is subject to the
881	retirement contribution required by subparagraph 7.
882	15.  The limitations of this paragraph apply to
883	reemployment in any capacity with an employer, as defined in s.
884	121.021, irrespective of the category of funds from which the
885	person is compensated.
886	16.  The reemployment after retirement provisions of this
887	paragraph apply to DROP participants effective upon termination
888	from employment and the end of DROP participation.
889	11.  An employing agency may reemploy a retired member as a
890	firefighter or paramedic after the retired member has been
891	retired for 1 calendar month, in accordance with s. 121.021(39).
892	Any retired member who is reemployed within 1 calendar month
893	after retirement shall void his or her application for
894	retirement benefits. The employing agency reemploying such
895	firefighter or paramedic is subject to the retired contribution
896	required in subparagraph 8. Reemployment of a retired
897	firefighter or paramedic is limited to no more than 780 hours
898	during the first 12 months of his or her retirement. Any retired
899	member reemployed for more than 780 hours during the first 12
900	months of retirement shall give timely notice in writing to the
901	employer and to the Division of the date he or she will exceed
902	the limitation. The division shall suspend his or her retirement
903	benefits for the remainder of the first 12 months of retirement.
904	Any person employed in violation of this subparagraph and any
905	employing agency which knowingly employs or appoints such person
906	without notifying the division of Retirement to suspend
907	retirement benefits shall be jointly and severally liable for
908	reimbursement to the Retirement System Trust Fund of any
909	benefits paid during the reemployment limitation period. To
910	avoid liability, such employing agency shall have a written
911	statement from the retiree that he or she is not retired from a
912	state-administered retirement system. Any retirement benefits
913	received by a retired member while reemployed in excess of 780
914	hours during the first 12 months of retirement shall be repaid
915	to the Retirement System Trust Fund, and retirement benefits
916	shall remain suspended until repayment is made. Benefits
917	suspended beyond the end of the retired member's first 12 months
918	of retirement shall apply toward repayment of benefits received
919	in violation of the 780-hour reemployment
920	limitation.
921	15.  The limitations of this paragraph apply to
922	reemployment in any capacity with an employer, as defined in s.
923	121.021, irrespective of the category of funds from which the
924	person is compensated.
925	16.  The reemployment after retirement provisions of this
926	paragraph apply to DROP participants effective upon termination
927	from employment and the end of DROP participation.
928	(c)  The provisions of this subsection apply to retirees,
929	as defined in s. 121.4501(2)(j), of the Public Employee Optional
930	Retirement Program created in part II, subject to the following
931	conditions:
932	1.  Such retirees may not be reemployed with an employer
933	participating in the Florida Retirement System as provided in
934	paragraph (b) until such person has been retired for 12 3
935	calendar months, unless the participant has reached the normal
936	retirement requirements of the defined benefit plan as provided
937	in s. 121.021(29).
938	2.  Such retiree employed in violation of this subsection
939	and any employing agency that knowingly employs or appoints such
940	person shall be jointly and severally liable for reimbursement
941	of any benefits paid to the retirement trust fund from which the
942	benefits were paid, including the Retirement System Trust Fund
943	and the Public Employee Optional Retirement Program Trust Fund,
944	as appropriate. To avoid liability, such employing agency must
945	have a written statement from the retiree that he or she is not
946	retired from a state-administered retirement system.
947	(13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
948	subject to the provisions of this section, the Deferred
949	Retirement Option Program, hereinafter referred to as the DROP,
950	is a program under which an eligible member of the Florida
951	Retirement System may elect to participate, deferring receipt of
952	retirement benefits while continuing employment with his or her
953	Florida Retirement System employer. The deferred monthly
954	benefits shall accrue in the System Trust Fund on behalf of the
955	participant, plus interest compounded monthly, for the specified
956	period of the DROP participation, as provided in paragraph (c).
957	Upon termination of employment as required in s. 121.021(39)(b),
958	the participant shall receive the total DROP benefits and begin
959	to receive the previously determined normal retirement benefits.
960	Participation in the DROP does not guarantee employment for the
961	specified period of DROP. Participation in the DROP by an
962	eligible member beyond the initial 60-month period as authorized
963	in this subsection shall be on an annual contractual basis for
964	all participants.
965	(a)  Eligibility of member to participate in the DROP.--All
966	active Florida Retirement System members in a regularly
967	established position, and all active members of either the
968	Teachers' Retirement System established in chapter 238 or the
969	State and County Officers' and Employees' Retirement System
970	established in chapter 122, which systems are consolidated
971	within the Florida Retirement System under s. 121.011, are
972	eligible to elect participation in the DROP if provided that:
973	1.  The member is not a renewed member of the Florida
974	Retirement System under s. 121.122, or a member or renewed
975	member of the State Community College System Optional Retirement
976	Program under s. 121.051, the Senior Management Service Optional
977	Annuity Program under s. 121.055, or the optional retirement
978	program for the State University System under s. 121.35.
979	2.  Except as provided in subparagraph 6., election to
980	participate is made within 12 months immediately following the
981	date on which the member first reaches normal retirement date,
982	or, for a member who reaches normal retirement date based on
983	service before he or she reaches age 62, or age 55 for Special
984	Risk Class members, election to participate may be deferred to
985	the 12 months immediately following the date the member attains
986	57, or age 52 for Special Risk Class members. For a member who
987	first reached normal retirement date or the deferred eligibility
988	date described above prior to the effective date of this
989	section, election to participate shall be made within 12 months
990	after the effective date of this section. A member who fails to
991	make an election within the such 12-month limitation period
992	forfeits shall forfeit all rights to participate in the DROP.
993	The member shall advise his or her employer and the division in
994	writing of the date on which the DROP begins shall begin. The
995	Such beginning date may be subsequent to the 12-month election
996	period, but must be within the original 60-month participation
997	or, with respect to members who are instructional personnel
998	employed by the Florida School for the Deaf and the Blind and
999	who have received authorization by the Board of Trustees of the
1000	Florida School for the Deaf and the Blind to participate in the
1001	DROP beyond 60 months, or who are instructional personnel as
1002	defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
1003	received authorization by the district school superintendent to
1004	participate in the DROP beyond 60 months, the 96-month
1005	limitation period as provided in subparagraph (b)1. When
1006	establishing eligibility of the member to participate in the
1007	DROP for the 60-month or, with respect to members who are
1008	instructional personnel employed by the Florida School for the
1009	Deaf and the Blind and who have received authorization by the
1010	Board of Trustees of the Florida School for the Deaf and the
1011	Blind to participate in the DROP beyond 60 months, or who are
1012	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
1013	grades K-12 and who have received authorization by the district
1014	school superintendent to participate in the DROP beyond 60
1015	months, the 96-month maximum participation period, the member
1016	may elect to include or exclude any optional service credit
1017	purchased by the member from the total service used to establish
1018	the normal retirement date. A member who has with dual normal
1019	retirement dates is shall be eligible to elect to participate in
1020	DROP within 12 months after attaining normal retirement date in
1021	either class.
1022	3.  The employer of a member electing to participate in the
1023	DROP, or employers if dually employed, shall acknowledge in
1024	writing to the division the date the member's participation in
1025	the DROP begins and the date the member's employment and DROP
1026	participation will terminate.
1027	4.  Simultaneous employment of a participant by additional
1028	Florida Retirement System employers subsequent to the
1029	commencement of participation in the DROP is shall be
1030	permissible if provided such employers acknowledge in writing a
1031	DROP termination date no later than the participant's existing
1032	termination date or the maximum participation 60-month
1033	limitation period as provided in subparagraph (b)1.
1034	5.  A DROP participant may change employers while
1035	participating in the DROP, subject to the following:
1036	a.  A change of employment must take place without a break
1037	in service so that the member receives salary for each month of
1038	continuous DROP participation. If a member receives no salary
1039	during a month, DROP participation shall cease unless the
1040	employer verifies a continuation of the employment relationship
1041	for such participant pursuant to s. 121.021(39)(b).
1042	b.  Such participant and new employer shall notify the
1043	division of the identity of the new employer on forms required
1044	by the division as to the identity of the new employer.
1045	c.  The new employer shall acknowledge, in writing, the
1046	participant's DROP termination date, which may be extended but
1047	not beyond the original 60-month maximum participation or, with
1048	respect to members who are instructional personnel employed by
1049	the Florida School for the Deaf and the Blind and who have
1050	received authorization by the Board of Trustees of the Florida
1051	School for the Deaf and the Blind to participate in the DROP
1052	beyond 60 months, or who are instructional personnel as defined
1053	in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
1054	authorization by the district school superintendent to
1055	participate in the DROP beyond 60 months, the 96-month period
1056	provided in subparagraph (b)1., shall acknowledge liability for
1057	any additional retirement contributions and interest required if
1058	the participant fails to timely terminate employment, and is
1059	shall be subject to the adjustment required in sub-subparagraph
1060	(c)5.d.
1061	6.  Effective July 1, 2001, for instructional personnel as
1062	defined in s. 1012.01(2), election to participate in the DROP
1063	may shall be made at any time following the date on which the
1064	member first reaches normal retirement date. The member shall
1065	advise his or her employer and the division in writing of the
1066	date on which DROP begins the Deferred Retirement Option Program
1067	shall begin. When establishing eligibility of the member to
1068	participate in the DROP for the 60-month or, with respect to
1069	members who are instructional personnel employed by the Florida
1070	School for the Deaf and the Blind and who have received
1071	authorization by the Board of Trustees of the Florida School for
1072	the Deaf and the Blind to participate in the DROP beyond 60
1073	months, or who are instructional personnel as defined in s.
1074	1012.01(2)(a)-(d) in grades K-12 and who have received
1075	authorization by the district school superintendent to
1076	participate in the DROP beyond 60 months, the 96-month maximum
1077	participation period, as provided in sub-subparagraph (b)(1)a.
1078	subparagraph (b)1., the member may elect to include or exclude
1079	any optional service credit purchased by the member from the
1080	total service used to establish the normal retirement date. A
1081	member who has with dual normal retirement dates is shall be
1082	eligible to elect to participate in either class.
1083	(b)  Participation in the DROP.--
1084	1.a.  Except as provided in sub-subparagraph b., an
1085	eligible member may elect to participate in the DROP for a
1086	period not to exceed a maximum of 60 calendar months except as
1087	provided in subparagraph b. or, with respect to
1088	b.  Members who are instructional personnel employed by the
1089	Florida School for the Deaf and the Blind and who are authorized
1090	have received authorization by the Board of Trustees of the
1091	Florida School for the Deaf and the Blind to participate in the
1092	DROP beyond 60 months, or who are instructional personnel as
1093	defined in s. 1012.01(2)(a)-(d) in grades K-12 and authorized
1094	who are authorized have received authorization by the district
1095	school superintendent to participate in the DROP beyond 60
1096	calendar months, or who are instructional personnel, as defined
1097	in s. 1012.01(2)(a)-(d), employed by a developmental research
1098	school and who are authorized by the school's principal, to
1099	participate in DROP beyond the original 60-month period, for up
1100	to 36 96 calendar months immediately following the DROP
1101	termination date elected for participation in sub-subparagraph
1102	a. date on which the member first reaches his or her normal
1103	retirement date or the date to which he or she is eligible to
1104	defer his or her election to participate as provided in
1105	subparagraph (a)2. However, a member who has reached normal
1106	retirement date prior to the effective date of the DROP shall be
1107	eligible to participate in the DROP for a period of time not to
1108	exceed 60 calendar months or, with respect to members who are
1109	instructional personnel employed by the Florida School for the
1110	Deaf and the Blind and who have received authorization by the
1111	Board of Trustees of the Florida School for the Deaf and the
1112	Blind to participate in the DROP beyond 60 months, or who are
1113	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
1114	grades K-12 and who have received authorization by the district
1115	school superintendent to participate in the DROP beyond 60
1116	calendar months, 96 calendar months immediately following the
1117	effective date of the DROP, except a member of the Special Risk
1118	Class who has reached normal retirement date prior to the
1119	effective date of the DROP and whose total accrued value exceeds
1120	75 percent of average final compensation as of his or her
1121	effective date of retirement shall be eligible to participate in
1122	the DROP for no more than 36 calendar months immediately
1123	following the effective date of the DROP.
1124	2.  Upon deciding to participate in the DROP, the member
1125	shall submit, on forms required by the division:
1126	a.  A written election to participate in the DROP;
1127	b.  Selection of the DROP participation and termination
1128	dates, which satisfy the limitations stated in paragraph (a) and
1129	subparagraph 1. The Such termination date must shall be in a
1130	binding letter of resignation to with the employer, establishing
1131	a deferred termination date. The member may change the
1132	termination date within the limitations of subparagraph 1., but
1133	only with the written approval of the his or her employer;
1134	c.  A properly completed DROP application for service
1135	retirement as provided in this section; and
1136	d.  Any other information required by the division.
1137	3.  The DROP participant is shall be a retiree under the
1138	Florida Retirement System for all purposes, except for paragraph
1139	(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
1140	and 121.122. DROP participation is final and cannot be canceled
1141	by the participant after the first payment is credited during
1142	the DROP participation period. However, participation in the
1143	DROP does not alter the participant's employment status and the
1144	member is such employee shall not be deemed retired from
1145	employment until his or her deferred resignation is effective
1146	and termination occurs as provided in s. 121.021(39).
1147	4.  Elected officers are shall be eligible to participate
1148	in the DROP subject to the following:
1149	a.  An elected officer who reaches normal retirement date
1150	during a term of office may defer the election to participate in
1151	the DROP until the next succeeding term in that office. An Such
1152	elected officer who exercises this option may participate in the
1153	DROP for up to 60 calendar months or a period of no longer than
1154	the such succeeding term of office, whichever is less.
1155	b.  An elected or a nonelected participant may run for a
1156	term of office while participating in DROP and, if elected,
1157	extend the DROP termination date accordingly, except, however,
1158	if such additional term of office exceeds the 60-month
1159	limitation established in subparagraph 1., and the officer does
1160	not resign from office within such 60-month limitation, the
1161	retirement and the participant's DROP is shall be null and void
1162	as provided in sub-subparagraph (c)5.d.
1163	c.(I)  For DROP participation ending before July 1, 2009,
1164	an elected officer who is dually employed and elects to
1165	participate in DROP must shall be required to satisfy the
1166	definition of termination within the original 60-month period or
1167	maximum participation or, with respect to members who are
1168	instructional personnel employed by the Florida School for the
1169	Deaf and the Blind and who have received authorization by the
1170	Board of Trustees of the Florida School for the Deaf and the
1171	Blind to participate in the DROP beyond 60 months, or who are
1172	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
1173	grades K-12 and who have received authorization by the district
1174	school superintendent to participate in the DROP beyond 60
1175	months, the 96-month limitation period as provided in
1176	subparagraph 1. for the nonelected position and may continue
1177	employment as an elected officer as provided in s. 121.053. The
1178	elected officer shall will be enrolled as a renewed member in
1179	the Elected Officers' Class or the Regular Class, as provided in
1180	ss. 121.053 and 121.122, on the first day of the month after
1181	termination of employment in the nonelected position and
1182	termination of DROP. Distribution of the DROP benefits shall be
1183	made as provided in paragraph (c).
1184	(II)  For DROP participation ending on or after July 1,
1185	2009, an elected officer who is dually employed and elects to
1186	participate in DROP must satisfy the definition of termination
1187	in s. 121.021(39) within the original 60-month period or maximum
1188	period as provided in subparagraph 1.
1189	(c)  Benefits payable under the DROP.--
1190	1.  Effective on with the date of DROP participation, the
1191	member's initial normal monthly benefit, including creditable
1192	service, optional form of payment, and average final
1193	compensation, and the effective date of retirement are shall be
1194	fixed. The beneficiary established under the Florida Retirement
1195	System shall be the beneficiary eligible to receive any DROP
1196	benefits payable if the DROP participant dies prior to the
1197	completion of the period of DROP participation. If In the event
1198	a joint annuitant predeceases the member, the member may name a
1199	beneficiary to receive accumulated DROP benefits payable. The
1200	Such retirement benefit, the annual cost of living adjustments
1201	provided in s. 121.101, and interest shall accrue monthly in the
1202	Florida Retirement System Trust Fund. The Such interest shall
1203	accrue at an effective annual rate of 6.5 percent compounded
1204	monthly, on the prior month's accumulated ending balance, up to
1205	the month of termination or death.
1206	2.  Each employee who elects to participate in the DROP may
1207	shall be allowed to elect to receive a lump-sum payment for
1208	accrued annual leave earned in accordance with agency policy
1209	upon beginning participation in the DROP. The Such accumulated
1210	leave payment certified to the division upon commencement of
1211	DROP shall be included in the calculation of the member's
1212	average final compensation. The employee electing the such lump-
1213	sum payment is upon beginning participation in DROP will not be
1214	eligible to receive a second lump-sum payment upon termination,
1215	except to the extent the employee has earned additional annual
1216	leave which, combined with the original payment, does not exceed
1217	the maximum lump-sum payment allowed by the employing agency's
1218	policy or rules. An Such early lump-sum payment shall be based
1219	on the hourly wage of the employee at the time he or she begins
1220	participation in the DROP. If the member elects to wait and
1221	receive a such lump-sum payment upon termination of DROP and
1222	termination of employment with the employer, any accumulated
1223	leave payment made at that time may not cannot be included in
1224	the member's retirement benefit, which was determined and fixed
1225	by law when the employee elected to participate in the DROP.
1226	3.  The effective date of DROP participation and the
1227	effective date of retirement of a DROP participant shall be the
1228	first day of the month selected by the member to begin
1229	participation in the DROP, provided such date is properly
1230	established, with the written confirmation of the employer, and
1231	the approval of the division, on forms required by the division.
1232	4.  Normal retirement benefits and any interest thereon
1233	shall continue to accrue in the DROP until the established
1234	termination date of the DROP, or until the participant
1235	terminates employment or dies prior to such date. Although
1236	individual DROP accounts shall not be established, a separate
1237	accounting of each participant's accrued benefits under the DROP
1238	shall be calculated and provided to participants.
1239	5.  At the conclusion of the participant's DROP, the
1240	division shall distribute the participant's total accumulated
1241	DROP benefits, subject to the following provisions:
1242	a.  The division shall receive verification by the
1243	participant's employer or employers that the such participant
1244	has terminated employment as provided in s. 121.021(39)(b).
1245	b.  The terminated DROP participant or, if deceased, the
1246	such participant's named beneficiary, shall elect on forms
1247	provided by the division to receive payment of the DROP benefits
1248	in accordance with one of the options listed below. If For a
1249	participant or beneficiary who fails to elect a method of
1250	payment within 60 days of termination of the DROP, the division
1251	shall will pay a lump sum as provided in sub-sub-subparagraph
1252	(I).
1253	(I)  Lump sum.--All accrued DROP benefits, plus interest,
1254	less withholding taxes remitted to the Internal Revenue Service,
1255	shall be paid to the DROP participant or surviving beneficiary.
1256	(II)  Direct rollover.--All accrued DROP benefits, plus
1257	interest, shall be paid from the DROP directly to the custodian
1258	of an eligible retirement plan as defined in s. 402(c)(8)(B) of
1259	the Internal Revenue Code. However, in the case of an eligible
1260	rollover distribution to the surviving spouse of a deceased
1261	participant, an eligible retirement plan is an individual
1262	retirement account or an individual retirement annuity as
1263	described in s. 402(c)(9) of the Internal Revenue Code.
1264	(III)  Partial lump sum.--A portion of the accrued DROP
1265	benefits shall be paid to the DROP participant or surviving
1266	spouse, less withholding taxes remitted to the Internal Revenue
1267	Service, and the remaining DROP benefits shall be transferred
1268	directly to the custodian of an eligible retirement plan as
1269	defined in s. 402(c)(8)(B) of the Internal Revenue Code.
1270	However, in the case of an eligible rollover distribution to the
1271	surviving spouse of a deceased participant, an eligible
1272	retirement plan is an individual retirement account or an
1273	individual retirement annuity as described in s. 402(c)(9) of
1274	the Internal Revenue Code. The proportions shall be specified by
1275	the DROP participant or surviving beneficiary.
1276	c.  The form of payment selected by the DROP participant or
1277	surviving beneficiary must comply complies with the minimum
1278	distribution requirements of the Internal Revenue Code.
1279	d.  A DROP participant who fails to terminate employment as
1280	defined in s. 121.021(39)(b) shall be deemed as not to be
1281	retired, and the DROP election is shall be null and void.
1282	Florida Retirement System membership shall be reestablished
1283	retroactively to the date of the commencement of the DROP, and
1284	each employer with whom the participant continues employment
1285	must shall be required to pay to the Florida Retirement System
1286	Trust Fund the difference between the DROP contributions paid in
1287	paragraph (i) and the contributions required for the applicable
1288	Florida Retirement System class of membership during the period
1289	the member participated in the DROP, plus 6.5 percent interest
1290	compounded annually.
1291	6.  The retirement benefits of any DROP participant who
1292	meets the definition of termination in s. 121.021(39)(b), but is
1293	in violation of the reemployment provisions as provided in
1294	subsection (9), shall be suspended during those months in which
1295	the member is in violation. Any member employed in violation of
1296	this subparagraph and any employing agency that knowingly
1297	employs or appoints such member without notifying the Division
1298	of Retirement to suspend retirement benefits are jointly and
1299	severally liable for any benefits paid during the reemployment
1300	limitation period. To avoid liability, the employing agency must
1301	have a written statement from the retiree that he or she is not
1302	retired from a state-administered retirement system. Any
1303	retirement benefits received by a retired member while employed
1304	in violation of the reemployment limitations during the first 12
1305	months of retirement must be repaid to the Florida Retirement
1306	System Trust Fund, and his or her retirement benefits shall
1307	remain suspended until payment is made. Benefits suspended
1308	beyond the end of the retired member's first 12 calendar months
1309	after meeting the definition of termination in s. 121.021(39)(b)
1310	shall apply toward repayment of benefits received in violation
1311	of the reemployment limitations.
1312	7.6.  The accrued benefits of any DROP participant, and any
1313	contributions accumulated under the such program, are shall not
1314	be subject to assignment, execution, attachment, or to any legal
1315	process whatsoever, except for qualified domestic relations
1316	orders by a court of competent jurisdiction, income deduction
1317	orders as provided in s. 61.1301, and federal income tax levies.
1318	8.7.  DROP participants are shall not be eligible for
1319	disability retirement benefits as provided in subsection (4).
1320	(d)  Death benefits under the DROP.--
1321	1.  Upon the death of a DROP participant, the named
1322	beneficiary shall be entitled to apply for and receive the
1323	accrued benefits in the DROP as provided in sub-subparagraph
1324	(c)5.b.
1325	2.  The normal retirement benefit accrued to the DROP
1326	during the month of a participant's death shall be the final
1327	monthly benefit credited for such DROP participant.
1328	3.  Eligibility to participate in the DROP terminates upon
1329	death of the participant. If the participant dies on or after
1330	the effective date of enrollment in the DROP, but prior to the
1331	first monthly benefit being credited to the DROP, Florida
1332	Retirement System benefits shall be paid in accordance with
1333	subparagraph (7)(c)1. or subparagraph 2.
1334	4.  A DROP participants' survivors shall not be eligible to
1335	receive Florida Retirement System death benefits as provided in
1336	paragraph (7)(d).
1337	(e)  Cost-of-living adjustment.--On each July 1, the
1338	participants' normal retirement benefit shall be increased as
1339	provided in s. 121.101.
1340	(f)  Retiree health insurance subsidy.--DROP participants
1341	are not eligible to apply for the retiree health insurance
1342	subsidy payments as provided in s. 112.363 until such
1343	participants have terminated employment and participation in the
1344	DROP.
1345	(g)  Renewed membership.--DROP participants must meet the
1346	definition of termination in s. 121.021(39)(b) and must meet
1347	eligibility requirements shall not be eligible for renewed
1348	membership in the Florida Retirement System under ss. 121.053
1349	and 121.122 until termination of employment is effectuated as
1350	provided in s. 121.021(39)(b).
1351	(h)  Employment limitation after DROP participation.--Upon
1352	satisfying the definition of termination of employment as
1353	provided in s. 121.021(39)(b), DROP participants shall be
1354	subject to such reemployment limitations as other retirees.
1355	Reemployment restrictions applicable to retirees as provided in
1356	subsection (9) shall not apply to DROP participants until their
1357	employment and participation in the DROP are terminated.
1358	(i)  Contributions.--
1359	1.  All employers paying the salary of a DROP participant
1360	filling a regularly established position shall contribute 8.0
1361	percent of such participant's gross compensation for the period
1362	of July 1, 2002, through June 30, 2003, and 11.56 percent of
1363	such compensation thereafter, which shall constitute the entire
1364	employer DROP contribution with respect to such participant.
1365	Such contributions, payable to the System Trust Fund in the same
1366	manner as required in s. 121.071, shall be made as appropriate
1367	for each pay period and are in addition to contributions
1368	required for social security and the Retiree Health Insurance
1369	Subsidy Trust Fund. Such employer, social security, and health
1370	insurance subsidy contributions are not included in the DROP.
1371	2.  The employer shall, in addition to subparagraph 1.,
1372	also withhold one-half of the entire social security
1373	contribution required for the participant. Contributions for
1374	social security by each participant and each employer, in the
1375	amount required for social security coverage as now or hereafter
1376	provided by the federal Social Security Act, shall be in
1377	addition to contributions specified in subparagraph 1.
1378	3.  All employers paying the salary of a DROP participant
1379	filling a regularly established position shall contribute the
1380	percent of such participant's gross compensation required in s.
1381	121.071(4), which shall constitute the employer's health
1382	insurance subsidy contribution with respect to such participant.
1383	Such contributions shall be deposited by the administrator in
1384	the Retiree Health Insurance Subsidy Trust Fund.
1385	(j)  Forfeiture of retirement benefits.--Nothing in this
1386	section shall be construed to remove DROP participants from the
1387	scope of s. 8(d), Art. II of the State Constitution, s.
1388	112.3173, and paragraph (5)(f). DROP participants who commit a
1389	specified felony offense while employed will be subject to
1390	forfeiture of all retirement benefits, including DROP benefits,
1391	pursuant to those provisions of law.
1392	(k)  Administration of program.--The division shall make
1393	such rules as are necessary for the effective and efficient
1394	administration of this subsection. The division shall not be
1395	required to advise members of the federal tax consequences of an
1396	election related to the DROP but may advise members to seek
1397	independent advice.
1398	(14)  PAYMENT OF BENEFITS.--This subsection applies to the
1399	payment of benefits to a payee (retiree or beneficiary) under
1400	the Florida Retirement System:
1401	(a)  Federal income tax shall be withheld in accordance
1402	with federal law, unless the payee elects otherwise on Form W-
1403	4P. The division shall prepare and distribute to each recipient
1404	of monthly retirement benefits an appropriate income tax form
1405	that reflects the recipient's income and federal income tax
1406	withheld for the calendar year just ended.
1407	(b)  Subject to approval by the division in accordance with
1408	rule 60S-4.015, Florida Administrative Code, a payee receiving
1409	retirement benefits under the Florida Retirement system may also
1410	have the following payments deducted from his or her monthly
1411	benefit:
1412	1.  Premiums for life and health-related insurance policies
1413	from approved companies.
1414	2.  Life insurance premiums for the State Group Life
1415	Insurance Plan, if authorized in writing by the payee and by the
1416	department of Management Services.
1417	3.  Repayment of overpayments from the Florida Retirement
1418	System Trust Fund, the State Employees' Health Insurance Trust
1419	Fund, or the State Employees' Life Insurance Trust Fund, upon
1420	notification of the payee.
1421	4.  Payments to an alternate payee for alimony or, child
1422	support pursuant to an income deduction order under s. 61.1301,
1423	or division of marital assets pursuant to a qualified domestic
1424	relations order under s. 222.21 or an income deduction order
1425	under s. 61.1301.
1426	5.  Payments to the Internal Revenue Service for federal
1427	income tax levies, upon notification of the division by the
1428	Internal Revenue Service.
1429	(c)  A payee must shall notify the division of any change
1430	in his or her address. The division may suspend benefit payments
1431	to a payee if correspondence sent to the payee's mailing address
1432	is returned due to an incorrect address. Benefit payments shall
1433	be resumed upon notification to the division of the payee's new
1434	address.
1435	(d)  A payee whose retirement benefits are reduced by the
1436	application of maximum benefit limits under s. 415(b) of the
1437	Internal Revenue Code, as specified in s. 121.30(5), shall have
1438	the portion of his or her calculated benefit in the Florida
1439	Retirement System defined benefit plan which exceeds such
1440	federal limitation paid through the Florida Retirement System
1441	Preservation of Benefits Plan, as provided in s. 121.1001.
1442	(e).  The division may issue retirement benefits payable
1443	for division of marital assets pursuant to a qualified domestic
1444	relations order directly to the alternate payee, any court order
1445	to the contrary notwithstanding, in order to meet Internal
1446	Revenue Code requirements.
1447	(f)(e)  A No benefit may not be reduced for the purpose of
1448	preserving the member's eligibility for a federal program.
1449	(g)(f)  The division shall adopt rules establishing
1450	procedures for determining that the persons to whom benefits are
1451	being paid are still living. The division shall suspend the
1452	benefits being paid to any payee if when it is unable to contact
1453	such payee and to confirm that he or she is still living.
1454	Section 10.  Sections 121.093 and 121.094, Florida
1455	Statutes, are repealed.
1456	Section 11.  Section 121.1115, Florida Statutes, is amended
1457	to read:
1458	121.1115  Purchase of retirement credit for out-of-state or
1459	and federal service.--Effective January 1, 1995, a member of the
1460	Florida Retirement System may purchase creditable service for
1461	periods of public employment in another state and receive
1462	creditable service for such periods of employment. Service with
1463	the Federal Government, including any active military service,
1464	may be claimed. Upon completion of each year of service earned
1465	under the Florida Retirement System, a member may purchase up to
1466	1 year of retirement credit for his or her out-of-state service,
1467	subject to the following provisions:
1468	(1)  LIMITATIONS AND CONDITIONS.--To receive credit for the
1469	out-of-state service:
1470	(a)  The out-of-state service being claimed must have been:
1471	1.  Performed in a position of employment with the state or
1472	a political subdivision thereof or with the Federal Government;
1473	2.  Covered by a retirement or pension plan provided by the
1474	state or political subdivision, or by the Federal Government, as
1475	appropriate; and
1476	3.  Performed prior to a period of membership in the
1477	Florida Retirement System.
1478	(b)  The member must have completed a minimum of 6 years of
1479	creditable service under the Florida Retirement System,
1480	excluding out-of-state service and in-state service claimed and
1481	purchased under s. 121.1122.
1482	(c)  Not more than 5 years of creditable service may be
1483	claimed for creditable service aggregated under the provisions
1484	of this section and s. 121.1122.
1485	(d)  The out-of-state service credit claimed under this
1486	section shall be credited only as service in the Regular Class
1487	of membership, and any benefit or pension based thereon is shall
1488	be subject to the limitations and restrictions of s. 112.65.
1489	(e)  The member is not eligible for and may not receive a
1490	pension or benefit from a retirement or pension plan based on or
1491	including the out-of-state service. Eligibility for or the
1492	receipt of contributions to a retirement plan made by the
1493	employer on behalf of the employee is considered a benefit.
1494	(f)(e)  To receive A member shall be eligible to receive
1495	service credit for out-of-state service performed after leaving
1496	the Florida Retirement System, the member must complete only
1497	upon return to membership and completion of at least 1 year of
1498	creditable service in the Florida Retirement System following
1499	the out-of-state service.
1500	(2)  COST.--For each year claimed, the member must pay into
1501	the Florida Retirement System Trust Fund an amount equal to 20
1502	percent of the member's annual compensation for the first full
1503	work year of creditable service earned under the Florida
1504	Retirement System, but not less than $12,000, plus interest at
1505	6.5 percent compounded annually from the date of first annual
1506	salary earned until full payment is made. The employer may pay
1507	all or a portion of the cost of this service credit.
1508	Section 12.  Subsection (2) of section 121.1122, Florida
1509	Statutes, is amended to read:
1510	121.1122  Purchase of retirement credit for in-state public
1511	service and in-state service in accredited nonpublic schools and
1512	colleges, including charter schools and charter technical career
1513	centers.--Effective January 1, 1998, a member of the Florida
1514	Retirement System may purchase creditable service for periods of
1515	certain public or nonpublic employment performed in this state,
1516	as provided in this section.
1517	(2)  LIMITATIONS AND CONDITIONS.--
1518	(a)  A member is not eligible to receive credit for in-
1519	state service under this section until he or she has completed 6
1520	years of creditable service under the Florida Retirement System,
1521	excluding service purchased under this section and out-of-state
1522	service claimed and purchased under s. 121.1115.
1523	(b)  A member may not purchase and receive credit for more
1524	than 5 years of creditable service aggregated under the
1525	provisions of this section and s. 121.1115.
1526	(c)  Service credit claimed under this section shall be
1527	credited only as service in the Regular Class of membership and
1528	is shall be subject to the provisions of s. 112.65.
1529	(d)  Service credit may not be purchased under this section
1530	if the member is eligible to receive or is receiving a pension
1531	or benefit from a retirement or pension plan based on or
1532	including the service. Eligibility for or the receipt of
1533	contributions to a retirement plan made by the employer on
1534	behalf of the employee is considered a benefit.
1535	(e)(d)  A member is shall be eligible to receive service
1536	credit for in-state service performed after leaving the Florida
1537	Retirement System only after upon returning to membership and
1538	completing at least 1 year of creditable service in the Florida
1539	Retirement System following the in-state service.
1540	(f)(e)  The service claimed must have been service covered
1541	by a retirement or pension plan provided by the employer.
1542	Section 13.  Section 121.122, Florida Statutes, is amended
1543	to read:
1544	121.122  Renewed membership in system.--
1545	(1)  Any retiree of a state-administered retirement system
1546	who is initially reemployed on or after July 1, 2009, shall not
1547	be eligible for renewed membership.
1548	(2)  Except as provided in s. 121.053, effective July 1,
1549	1991, through June 30, 2009, any retiree of a state-administered
1550	retirement system who is initially reemployed employed in a
1551	regularly established position with a covered employer shall be
1552	enrolled as a compulsory member of the Regular Class of the
1553	Florida Retirement System or, effective July 1, 1997, through
1554	June 30, 2009, any retiree of a state-administered retirement
1555	system who is initially reemployed employed in a position
1556	included in the Senior Management Service Class shall be
1557	enrolled as a compulsory member of the Senior Management Service
1558	Class of the Florida Retirement System as provided in s.
1559	121.055, and shall be entitled to receive an additional
1560	retirement benefit, subject to the following conditions:
1561	(1)(a)  Such member shall resatisfy the age and service
1562	requirements as provided in this chapter for initial membership
1563	under the system, unless such member elects to participate in
1564	the Senior Management Service Optional Annuity Program in lieu
1565	of the Senior Management Service Class, as provided in s.
1566	121.055(6).
1567	(b)  Such member shall not be entitled to disability
1568	benefits as provided in s. 121.091(4).
1569	(c)  Such member must meet the reemployment after
1570	retirement limitations as provided in s. 121.091(9), as
1571	applicable.
1572	(3)(2)  Upon renewed membership or reemployment of a
1573	retiree, the employer of such member shall pay the applicable
1574	employer contributions as required by ss. 121.71, 121.74,
1575	121.76, and 112.363 121.055(3) and 121.071(1)(a) and (4).
1576	(4)(3)  The retiree of a state-administered retirement
1577	system who is initially reemployed before July 1, 2009, Such
1578	member shall be entitled to purchase additional retirement
1579	credit in the Regular Class or the Senior Management Service
1580	Class, as applicable, for any postretirement service performed
1581	in a regularly established position as follows:
1582	(a)  For regular class service prior to July 1, 1991, by
1583	paying the Regular Class applicable employee and employer
1584	contributions for the period being claimed, plus 4 percent
1585	interest compounded annually from first year of service claimed
1586	until July 1, 1975, and 6.5 percent interest compounded
1587	thereafter, until full payment is made to the Florida Retirement
1588	System Trust Fund; or
1589	(b)  For Senior Management Service Class prior to June 1,
1590	1997, as provided in s. 121.055(1)(j).
1591
1592	The contribution for postretirement service between July 1,
1593	1985, and July 1, 1991, for which the reemployed retiree
1594	contribution was paid, shall be the difference between such
1595	contribution and the total applicable contribution for the
1596	period being claimed, plus interest. The employer of such member
1597	may pay the applicable employer contribution in lieu of the
1598	member. If a member does not wish to claim credit for all of the
1599	postretirement service for which he or she is eligible, the
1600	service the member claims must be the most recent service.
1601	(5)(4)  No creditable service for which credit was
1602	received, or which remained unclaimed, at retirement may be
1603	claimed or applied toward service credit earned following
1604	renewed membership. However, for retirees initially reemployed
1605	before July 1, 2009, service earned as an elected officer with
1606	renewed membership in the Elected Officers' Class may be used in
1607	conjunction with creditable service earned under this section,
1608	provided the applicable vesting requirements and other existing
1609	statutory conditions required by this chapter are met.
1610	(6)(5)  Notwithstanding any other limitations provided in
1611	this section, a participant of the State University System
1612	Optional Retirement Program or the Senior Management Service
1613	Optional Annuity Program who terminated employment and received
1614	a distribution commenced receiving an annuity under the
1615	provisions of the optional program, who initially renews
1616	membership before July 1, 2009, in the Regular Class as required
1617	by this section upon reemployment after retirement, and who had
1618	previously earned creditable Florida Retirement System service
1619	that was not included in any retirement benefit may include such
1620	previous service toward vesting and service credit in the second
1621	career benefit provided under renewed membership.
1622	(7)(6)  Any renewed member who is not receiving the maximum
1623	health insurance subsidy provided in s. 112.363 shall be
1624	entitled to earn additional credit toward the maximum health
1625	insurance subsidy. Any additional subsidy due because of such
1626	additional credit shall be received only at the time of payment
1627	of the second career retirement benefit. In no case shall the
1628	total health insurance subsidy received by a retiree receiving
1629	benefits from initial and renewed membership exceed the maximum
1630	allowed in s. 112.363.
1631	Section 14.  Section 121.136, Florida Statutes, is amended
1632	to read:
1633	121.136  Annual benefit statement to members.--Beginning
1634	January 1, 1993, and Each January thereafter, the department
1635	shall provide each active member of the Florida Retirement
1636	System with 5 or more years of creditable service an annual
1637	statement of benefits which provides. Such statement should
1638	provide the member with basic data about the member's retirement
1639	account. At a minimum Minimally, it must shall include the
1640	member's retirement plan, accrued service credit the amount of
1641	funds on deposit in the retirement account, and an estimate of
1642	retirement benefits.
1643	Section 15.  Section 121.1905, Florida Statutes, is amended
1644	to read:
1645	121.1905  Division of Retirement; creation.--
1646	(1)  There is created the Division of Retirement within the
1647	Department of Management Services.
1648	(2)  The mission of the Division of Retirement is to
1649	provide quality and cost-effective retirement services as
1650	measured by member satisfaction and by comparison with
1651	administrative costs of comparable retirement systems.
1652	Section 16.  Paragraph (a) of subsection (2) of section
1653	121.23, Florida Statutes, is amended to read:
1654	121.23  Disability retirement and special risk membership
1655	applications; Retirement Commission; powers and duties; judicial
1656	review.--The provisions of this section apply to all proceedings
1657	in which the administrator has made a written final decision on
1658	the merits respecting applications for disability retirement,
1659	reexamination of retired members receiving disability benefits,
1660	applications for special risk membership, and reexamination of
1661	special risk members in the Florida Retirement System. The
1662	jurisdiction of the State Retirement Commission under this
1663	section shall be limited to written final decisions of the
1664	administrator on the merits.
1665	(2)  A member shall be entitled to a hearing before the
1666	State Retirement Commission pursuant to ss. 120.569 and
1667	120.57(1) on the merits of any written adverse decision of the
1668	administrator, if he or she files with the commission a written
1669	request for such hearing within 21 days after receipt of such
1670	written decision from the administrator. For the purpose of such
1671	hearings, the commission shall be an "agency head" as defined by
1672	s. 120.52.
1673	(a)  The commission may shall have the authority to issue
1674	orders as a result of the a hearing that are shall be binding on
1675	all parties to the dispute and. The commission may order any
1676	action that it deems appropriate. Any disability retirement
1677	order of the commission issued pursuant to this subsection which
1678	sustains the application of the member may include an amount, to
1679	be determined by the commission, for reasonable attorney's fees
1680	and taxable costs, which shall be calculated in accordance with
1681	the statewide uniform guidelines for taxation of costs in civil
1682	actions. The amount of the attorney's fee may not exceed 50
1683	percent of the initial yearly benefit awarded under s.
1684	121.091(4). In cases involving disability retirement, the State
1685	Retirement commission shall require the member to present
1686	competent substantial medical evidence and meet the requirements
1687	of s. 121.091(4)(c)2. and 3., and may require vocational
1688	evidence, before awarding disability retirement benefits.
1689	Section 17.  Paragraph (a) of subsection (1) of section
1690	121.24, Florida Statutes, is amended to read:
1691	121.24  Conduct of commission business; legal and other
1692	assistance; compensation.--
1693	(1)  The commission shall conduct its business within the
1694	following guidelines:
1695	(a)  For purposes of hearing appeals under s. 121.23, the
1696	commission may meet in panels consisting of no not fewer than
1697	three members. For the purpose of meeting in these panels, a
1698	quorum shall be not fewer than two members. For all other
1699	purposes, A quorum shall consist of three members. The
1700	concurring vote of a majority of the members present is shall be
1701	required to reach a decision, issue orders, and conduct the
1702	business of the commission.
1703	Section 18.  Paragraph (e) of subsection (5) of section
1704	121.35, Florida Statutes, is amended to read:
1705	121.35  Optional retirement program for the State
1706	University System.--
1707	(5)  BENEFITS.--
1708	(e)  A participant who chooses to receive his or her
1709	benefits upon termination of employment as defined in s.
1710	121.021(39) shall have responsibility to notify the provider
1711	company of the date on which he or she wishes benefits funded by
1712	employer contributions to begin. Benefits may be deferred until
1713	such time as the participant chooses to make such application.
1714	Section 19.  Section 121.45, Florida Statutes, is repealed.
1715	Section 20.  Paragraph (f) of subsection (2) of section
1716	121.4501, Florida Statutes, is amended to read:
1717	121.4501  Public Employee Optional Retirement Program.--
1718	(2)  DEFINITIONS.--As used in this part, the term:
1719	(f)  "Eligible employee" means an officer or employee, as
1720	defined in s. 121.021(11), who:
1721	1.  Is a member of, or is eligible for membership in, the
1722	Florida Retirement System, including any renewed member of the
1723	Florida Retirement System initially enrolled before July 1,
1724	2009; or
1725	2.  Participates in, or is eligible to participate in, the
1726	Senior Management Service Optional Annuity Program as
1727	established under s. 121.055(6), the State Community College
1728	Optional Retirement Program as established under s.
1729	121.051(2)(c), or the State University System Optional
1730	Retirement Program established under s. 121.35.
1731
1732	The term does not include any member participating in the
1733	Deferred Retirement Option Program established under s.
1734	121.091(13), a retiree of a state-administered retirement system
1735	initially reemployed on or after July 1, 2009, or a mandatory
1736	participant of the State University System Optional Retirement
1737	Program established under s. 121.35.
1738	Section 21.  Paragraph (b) of subsection (1) of section
1739	121.591, Florida Statutes, is amended to read:
1740	121.591  Benefits payable under the Public Employee
1741	Optional Retirement Program of the Florida Retirement
1742	System.--Benefits may not be paid under this section unless the
1743	member has terminated employment as provided in s.
1744	121.021(39)(a) or is deceased and a proper application has been
1745	filed in the manner prescribed by the state board or the
1746	department. The state board or department, as appropriate, may
1747	cancel an application for retirement benefits when the member or
1748	beneficiary fails to timely provide the information and
1749	documents required by this chapter and the rules of the state
1750	board and department. In accordance with their respective
1751	responsibilities as provided herein, the State Board of
1752	Administration and the Department of Management Services shall
1753	adopt rules establishing procedures for application for
1754	retirement benefits and for the cancellation of such application
1755	when the required information or documents are not received. The
1756	State Board of Administration and the Department of Management
1757	Services, as appropriate, are authorized to cash out a de
1758	minimis account of a participant who has been terminated from
1759	Florida Retirement System covered employment for a minimum of 6
1760	calendar months. A de minimis account is an account containing
1761	employer contributions and accumulated earnings of not more than
1762	$5,000 made under the provisions of this chapter. Such cash-out
1763	must either be a complete lump-sum liquidation of the account
1764	balance, subject to the provisions of the Internal Revenue Code,
1765	or a lump-sum direct rollover distribution paid directly to the
1766	custodian of an eligible retirement plan, as defined by the
1767	Internal Revenue Code, on behalf of the participant. If any
1768	financial instrument issued for the payment of retirement
1769	benefits under this section is not presented for payment within
1770	180 days after the last day of the month in which it was
1771	originally issued, the third-party administrator or other duly
1772	authorized agent of the State Board of Administration shall
1773	cancel the instrument and credit the amount of the instrument to
1774	the suspense account of the Public Employee Optional Retirement
1775	Program Trust Fund authorized under s. 121.4501(6). Any such
1776	amounts transferred to the suspense account are payable upon a
1777	proper application, not to include earnings thereon, as provided
1778	in this section, within 10 years after the last day of the month
1779	in which the instrument was originally issued, after which time
1780	such amounts and any earnings thereon shall be forfeited. Any
1781	such forfeited amounts are assets of the Public Employee
1782	Optional Retirement Program Trust Fund and are not subject to
1783	the provisions of chapter 717.
1784	(1)  NORMAL BENEFITS.--Under the Public Employee Optional
1785	Retirement Program:
1786	(b)  If a participant elects to receive his or her benefits
1787	upon termination of employment as defined in s. 121.021(39), the
1788	participant must submit a written application or an equivalent
1789	form to the third-party administrator indicating his or her
1790	preferred distribution date and selecting an authorized method
1791	of distribution as provided in paragraph (c). The participant
1792	may defer receipt of benefits until he or she chooses to make
1793	such application, subject to federal requirements.
1794	Section 22.  Subsection (8) of section 1012.33, Florida
1795	Statutes, is amended to read:
1796	1012.33  Contracts with instructional staff, supervisors,
1797	and school principals.--
1798	(8)  Notwithstanding any other provision of law, a retired
1799	any member who has retired may interrupt retirement and be
1800	reemployed in any public school. A Any member so reemployed by
1801	the same district from which he or she retired may be employed
1802	on a probationary contractual basis as provided in subsection
1803	(1); however, no regular retirement employee shall be eligible
1804	to renew membership under a retirement system created by chapter
1805	121 or chapter 238.
1806	Section 23.  Paragraph (a) of subsection (4) of section
1807	121.35, Florida Statutes, is amended, and paragraph (g) is added
1808	to that subsection, to read:
1809	121.35  Optional retirement program for the State
1810	University System.--
1811	(4)  CONTRIBUTIONS.--
1812	(a)  Through June 30, 2001, each employer shall contribute
1813	on behalf of each participant in the optional retirement program
1814	an amount equal to the normal cost portion of the employer
1815	retirement contribution which would be required if the
1816	participant were a regular member of the Florida Retirement
1817	System defined benefit program, plus the portion of the
1818	contribution rate required in s. 112.363(8) that would otherwise
1819	be assigned to the Retiree Health Insurance Subsidy Trust Fund.
1820	Effective July 1, 2001, each employer shall contribute on behalf
1821	of each participant in the optional program an amount equal to
1822	10.43 percent of the participant's gross monthly compensation.
1823	The department shall deduct an amount approved by the
1824	Legislature to provide for the administration of this program.
1825	The payment of the contributions to the optional program which
1826	is required by this paragraph for each participant shall be made
1827	by the employer to the department, which shall forward the
1828	contributions to the designated company or companies contracting
1829	for payment of benefits for the participant under the program.
1830	However, such contributions paid on behalf of an employee
1831	described in paragraph (3)(c) shall not be forwarded to a
1832	company and shall not begin to accrue interest until the
1833	employee has executed a an annuity contract and notified the
1834	department.
1835	(g)  Effective July 1, 2008, for purposes of paragraph (a)
1836	and notwithstanding s. 121.021(22)(b)1., the term "participant's
1837	gross monthly compensation" includes salary payments made to
1838	eligible clinical faculty from a state university using funds
1839	provided by a faculty practice plan authorized by the Board of
1840	Governors of the State University System if:
1841	1.  There is not any employer contribution from the state
1842	university to any other retirement program with respect to such
1843	salary payments; and
1844	2.  The employer contribution on behalf of the participant
1845	in the optional retirement program with respect to such salary
1846	payments is made using funds provided by the faculty practice
1847	plan.
1848	Section 24.  Section 121.355, Florida Statutes, is created
1849	to read:
1850	121.355  Community College Optional Retirement Program and
1851	State University System Optional Retirement Program member
1852	transfer.--Effective July 1, 2009, through December 31, 2009, an
1853	employee who is a former participant in the Community College
1854	Optional Retirement Program or the State University System
1855	Optional Retirement Program and present mandatory participant in
1856	the Florida Retirement System defined benefit plan may receive
1857	service credit equal to his or her years of service under the
1858	Community College Optional Retirement Program or the State
1859	University System Optional Retirement Program under the
1860	following conditions:
1861	(1)  The cost for such credit shall be an amount
1862	representing the actuarial accrued liability for the affected
1863	period of service. The cost shall be calculated using the
1864	discount rate and other relevant actuarial assumptions that were
1865	used to value the Florida Retirement System defined benefit plan
1866	liabilities in the most recent actuarial valuation. The
1867	calculation shall include any service already maintained under
1868	the defined benefit plan in addition to the years under the
1869	Community College Optional Retirement Program or the State
1870	University System Optional Retirement Program. The actuarial
1871	accrued liability of any service already maintained under the
1872	defined benefit plan shall be applied as a credit to total cost
1873	resulting from the calculation. The division shall ensure that
1874	the transfer sum is prepared using a formula and methodology
1875	certified by an enrolled actuary.
1876	(2)  The employee must transfer from his or her Community
1877	College Optional Retirement Program account or State University
1878	System Optional Retirement Program account, subject to the terms
1879	of the applicable optional retirement program contract, and from
1880	other employee moneys as necessary, a sum representing the
1881	actuarial accrued liability immediately following the time of
1882	such movement, determined assuming that attained service equals
1883	the sum of service in the defined benefit program and service in
1884	the Community College Optional Retirement Program or State
1885	University System Optional Retirement Program.
1886	(3)  The employee may not receive service credit for a
1887	period of mandatory participation in the State University
1888	Optional Retirement Program or for a period for which a
1889	distribution was received from the Community College Optional
1890	Retirement Program or State University System Optional
1891	Retirement Program.
1892	Section 25.  Sections 121.093, 121.094, and 121.45, Florida
1893	Statutes, are repealed.
1894	Section 26.  The Legislature finds that a proper and
1895	legitimate state purpose is served when employees and retirees
1896	of the state and its political subdivisions, as well as the
1897	dependents, survivors, and beneficiaries of such employees and
1898	retiree, are extended the basic protections afforded by
1899	governmental retirement systems that provide fair and adequate
1900	benefits and that are managed, administered, and funded in an
1901	actuarially sound manner as required by s. 14, Art. X of the
1902	State Constitution, and part VII of chapter 112, Florida
1903	Statutes. Therefore, the Legislature determines and declares
1904	that the amendment of s. 121.091, Florida Statutes, by this act
1905	fulfills an important state interest.
1906	Section 27.  This act shall take effect July 1, 2009.
1907
1908
1909
1910
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CODING: Words stricken are deletions; words underlined are additions.