Amendment
Bill No. CS/CS/SB 2848
Amendment No. 697707
CHAMBER ACTION
Senate House
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1Representative Schenck offered the following:
2
3     Amendment (with title amendment)
4     Remove line 1397 and insert:
5     Section 19.  Effective January 1, 2009, subsection (39) of
6section 121.021, Florida Statutes, is amended to read:
7     121.021  Definitions.--The following words and phrases as
8used in this chapter have the respective meanings set forth
9unless a different meaning is plainly required by the context:
10     (39)(a)  "Termination" occurs, except as provided in
11paragraph (b), when:
12     1.  For retirements effective before January 1, 2009, a
13member ceases all employment relationships with employers under
14this system, as defined in subsection (10), but in the event a
15member should be employed by any such employer within the next
16calendar month, termination shall be deemed not to have
17occurred. A leave of absence shall constitute a continuation of
18the employment relationship, except that a leave of absence
19without pay due to disability may constitute termination for a
20member, if such member makes application for and is approved for
21disability retirement in accordance with s. 121.091(4). The
22department or board may require other evidence of termination as
23it deems necessary.
24     2.  For retirements effective on or after January 1, 2009,
25a member ceases all employment relationships with employers
26under this system, as defined in subsection (10), but in the
27event a member should be employed by any such employer within
28the next 12 calendar months, termination shall be deemed not to
29have occurred.  A leave of absence shall constitute a
30continuation of the employment relationship, except that a leave
31of absence without pay due to disability may constitute
32termination for a member, if such member makes application for
33and is approved for disability retirement in accordance with s.
34121.091(4). The department or board may require other evidence
35of termination as it deems necessary.
36     (b)  "Termination" for a member electing to participate
37under the Deferred Retirement Option Program occurs when the
38Deferred Retirement Option Program participant ceases all
39employment relationships with employers under this system in
40accordance with s. 121.091(13), but:
41     1.  For DROP termination dates before January 1, 2009, in
42the event the Deferred Retirement Option Program participant
43should be employed by any such employer within the next calendar
44month, termination will be deemed not to have occurred, except
45as provided in s. 121.091(13)(b)4.c. A leave of absence shall
46constitute a continuation of the employment relationship.
47     2.  For DROP termination dates on or after January 1, 2009,
48in the event the DROP participant should be employed by any such
49employer within the next 12 calendar months, termination will be
50deemed not to have occurred, except as provided in s.
51121.091(13)(b)4.c. A leave of absence shall constitute a
52continuation of the employment relationship.
53     Section 20.  Effective January 1, 2009, subsection (1) and
54subsection (2) of section 121.053, Florida Statutes, are amended
55to read:
56     121.053  Participation in the Elected Officers' Class for
57retired members.--
58     (1)(a)1.  Any retiree of a state-administered retirement
59system who initially serves in an elective office in a regularly
60established position with a covered employer on or after January
611, 2009, shall not be enrolled in the Florida Retirement System.
62     2.  An elected officer who is elected or appointed to an
63elective office and is participating in the Deferred Retirement
64Option Program is subject to termination as provided in s.
65121.021(39)(b), and reemployment limitations as provided in s.
66121.091(9), upon completion of his or her DROP participation
67period.
68     (b)  Before January 1, 2009, any member who retired under
69any existing system as defined in s. 121.021(2), and receives a
70benefit thereof, and who serves in an office covered by the
71Elected Officers' Class for a period of at least 6 years, shall
72be entitled to receive an additional retirement benefit for such
73elected officer service prior to July 1, 1990, under the Elected
74Officers' Class of the Florida Retirement System, as follows:
75     1.  Upon completion of 6 or more years of creditable
76service in an office covered by the Elected Officers' Class, s.
77121.052, such member shall notify the administrator of his or
78her intent to purchase elected officer service prior to July 1,
791990, and shall pay the member contribution applicable for the
80period being claimed, plus 4 percent interest compounded
81annually from the first year of service claimed until July 1,
821975, and 6.5 percent interest compounded annually thereafter,
83until full payment is made to the Florida Retirement System
84Trust Fund; however, such member may purchase retirement credit
85under the Elected Officers' Class only for such service as an
86elected officer.
87     2.  Upon payment of the amount specified in subparagraph
881., the employer shall pay into the Florida Retirement System
89Trust Fund the applicable employer contribution for the period
90of elected officer service prior to July 1, 1990, being claimed
91by the member, plus 4 percent interest compounded annually from
92the first year of service claimed until July 1, 1975, and 6.5
93percent interest compounded annually thereafter, until full
94payment is made to the Florida Retirement System Trust Fund.
95     (c)(b)  Any retired member of the Florida Retirement
96System, or any existing system as defined in s. 121.021(2), who,
97on or after July 1, 1990 through December 31, 2008, is serving
98in, or is elected or appointed to, an elective office covered by
99the Elected Officers' Class shall be enrolled in the appropriate
100subclass of the Elected Officers' Class of the Florida
101Retirement System, and applicable contributions shall be paid
102into the Florida Retirement System Trust Fund as provided in s.
103121.052(7). Pursuant thereto:
104     1.  Any such retired member shall be eligible to continue
105to receive retirement benefits as well as compensation for the
106elected officer service for as long as he or she remains in an
107elective office covered by the Elected Officers' Class.
108     2.  If any such member serves in an elective office covered
109by the Elected Officers' Class and becomes vested under that
110class, he or she shall be entitled to receive an additional
111retirement benefit for such elected officer service.
112     3.  Such member shall be entitled to purchase additional
113retirement credit in the Elected Officers' Class for any
114postretirement service performed in an elected position eligible
115for the Elected Officers' Class prior to July 1, 1990, or in the
116Regular Class for any postretirement service performed in any
117other regularly established position prior to July 1, 1991, by
118paying the applicable Elected Officers' Class or Regular Class
119employee and employer contributions for the period being
120claimed, plus 4 percent interest compounded annually from the
121first year of service claimed until July 1, 1975, and 6.5
122percent interest compounded thereafter, until full payment is
123made to the Florida Retirement System Trust Fund. The
124contribution for postretirement Regular Class service between
125July 1, 1985, and July 1, 1991, for which the reemployed retiree
126contribution was paid, shall be the difference between such
127contribution and the total applicable contribution for the
128period being claimed, plus interest. The employer of such member
129may pay the applicable employer contribution in lieu of the
130member. If a member does not wish to claim credit for all of the
131postretirement service for which he or she is eligible, the
132service the member claims must be the most recent service.
133     4.  Creditable service for which credit was received, or
134which remained unclaimed, at retirement may not be claimed or
135applied toward service credit earned following renewed
136membership. However, service earned in accordance with the
137renewed membership provisions in s. 121.122 may be used in
138conjunction with creditable service earned under this paragraph,
139provided applicable vesting requirements and other existing
140statutory conditions required by this chapter are met.
141     5.  An elected officer who is elected or appointed to an
142elective office and is participating in the Deferred Retirement
143Option Program before January 1, 2009, is not subject to
144termination as provided in s. 121.021(39)(b), or reemployment
145limitations as provided in s. 121.091(9), until the end of his
146or her current term of office or, if the officer is
147consecutively elected or reelected to an elective office
148eligible for coverage under the Florida Retirement System, until
149he or she no longer holds such an elective office, as follows:
150     a.  At the end of the 60-month DROP period:
151     (I)  The officer's DROP account shall accrue no additional
152monthly benefits, but shall continue to earn interest as
153provided in s. 121.091(13).
154     (II)  No retirement contributions shall be required of the
155employer of the elected officer and no additional retirement
156credit shall be earned under the Florida Retirement System.
157     b.  Nothing herein shall prevent an elected officer from
158voluntarily terminating his or her elective office at any time
159and electing to receive his or her DROP proceeds. However, until
160termination requirements are fulfilled as provided in s.
161121.021(39), any elected officer whose termination limitations
162are extended by this section shall be ineligible for renewed
163membership in the system and shall receive no pension payments,
164DROP lump sum payments, or any other state payment other than
165the statutorily determined salary, travel, and per diem for the
166elective office.
167     c.  Upon termination, the officer shall receive his or her
168accumulated DROP account, plus interest, and shall accrue and
169commence receiving monthly retirement benefits, which shall be
170paid on a prospective basis only.
171
172However, an officer electing to participate in the Deferred
173Retirement Option Program on or before June 30, 2002, shall not
174be required to terminate and shall remain subject to the
175provisions of this subparagraph as adopted in section 1 of
176chapter 2001-235, Laws of Florida.
177     (2)  Upon attaining his or her normal retirement date and
178payment of the amount specified in paragraphs (1)(b)(a) and
179(c)(b), and upon application to the administrator of the intent
180to retire, the member shall receive a monthly benefit under this
181section, in addition to any benefits already being received,
182which shall commence on the last day of the month of retirement
183and be payable on the last day of the month thereafter during
184his or her lifetime. The amount of such monthly benefit shall be
185the total percentage of retirement credit purchased under this
186section multiplied by the member's average monthly compensation
187as an elected officer, adjusted according to the option selected
188at retirement under s. 121.091(6).
189     Section 21.  Effective January 1, 2009, paragraph (f) of
190subsection (1) and paragraph (c) of subsection (6) of section
191121.055, Florida Statutes, are amended to read:
192     121.055  Senior Management Service Class.--There is hereby
193established a separate class of membership within the Florida
194Retirement System to be known as the "Senior Management Service
195Class," which shall become effective February 1, 1987.
196     (1)
197     (f)  Effective July 1, 1997:
198     1.  Except as provided in subparagraph 3., any elected
199state officer eligible for membership in the Elected Officers'
200Class under s. 121.052(2)(a), (b), or (c) who elects membership
201in the Senior Management Service Class under s. 121.052(3)(c)
202may, within 6 months after assuming office or within 6 months
203after this act becomes a law for serving elected state officers,
204elect to participate in the Senior Management Service Optional
205Annuity Program, as provided in subsection (6), in lieu of
206membership in the Senior Management Service Class.
207     2.  Except as provided in subparagraph 3., any elected
208county officer eligible for membership in the Elected Officers'
209Class under s. 121.052(2)(d) who elects membership in the Senior
210Management Service Class under s. 121.052(3)(c) may, within 6
211months after assuming office, or within 6 months after this act
212becomes a law for serving elected county officers, elect to
213withdraw from the Florida Retirement System participate in a
214lifetime monthly annuity program, as provided in subparagraph
215(b)2., in lieu of membership in the Senior Management Service
216Class.
217     3.  Any retiree of a state-administered retirement system
218who is initially reemployed on or after January 1, 2009, as an
219elected official eligible for Elected Officers' Class
220membership, shall not be eligible for renewed membership in the
221Senior Management Service Optional Annuity Program as provided
222in subsection (6) or to withdraw from the Florida Retirement
223System as a renewed member as provided in subparagraph (b)2., as
224applicable, in lieu of Senior Management Service Class
225membership.
226     (6)
227     (c)  Participation.--
228     1.  Any eligible employee who is employed on or before
229February 1, 1987, may elect to participate in the optional
230annuity program in lieu of participation in the Senior
231Management Service Class. Such election shall be made in writing
232and filed with the department and the personnel officer of the
233employer on or before May 1, 1987. Any eligible employee who is
234employed on or before February 1, 1987, and who fails to make an
235election to participate in the optional annuity program by May
2361, 1987, shall be deemed to have elected membership in the
237Senior Management Service Class.
238     2.  Except as provided in subparagraph 6., any employee who
239becomes eligible to participate in the optional annuity program
240by reason of initial employment commencing after February 1,
2411987, may, within 90 days after the date of commencement of
242employment, elect to participate in the optional annuity
243program. Such election shall be made in writing and filed with
244the personnel officer of the employer. Any eligible employee who
245does not within 90 days after commencement of such employment
246elect to participate in the optional annuity program shall be
247deemed to have elected membership in the Senior Management
248Service Class.
249     3.  A person who is appointed to a position in the Senior
250Management Service Class and who is a member of an existing
251retirement system or the Special Risk or Special Risk
252Administrative Support Classes of the Florida Retirement System
253may elect to remain in such system or class in lieu of
254participation in the Senior Management Service Class or optional
255annuity program. Such election shall be made in writing and
256filed with the department and the personnel officer of the
257employer within 90 days of such appointment. Any eligible
258employee who fails to make an election to participate in the
259existing system, the Special Risk Class of the Florida
260Retirement System, the Special Risk Administrative Support Class
261of the Florida Retirement System, or the optional annuity
262program shall be deemed to have elected membership in the Senior
263Management Service Class.
264     4.  Except as provided in subparagraph 5., an employee's
265election to participate in the optional annuity program is
266irrevocable as long as such employee continues to be employed in
267an eligible position and continues to meet the eligibility
268requirements set forth in this paragraph.
269     5.  Effective from July 1, 2002, through September 30,
2702002, any active employee in a regularly established position
271who has elected to participate in the Senior Management Service
272Optional Annuity Program has one opportunity to choose to move
273from the Senior Management Service Optional Annuity Program to
274the Florida Retirement System defined benefit program.
275     a.  The election must be made in writing and must be filed
276with the department and the personnel officer of the employer
277before October 1, 2002, or, in the case of an active employee
278who is on a leave of absence on July 1, 2002, within 90 days
279after the conclusion of the leave of absence. This election is
280irrevocable.
281     b.  The employee will receive service credit under the
282defined benefit program of the Florida Retirement System equal
283to his or her years of service under the Senior Management
284Service Optional Annuity Program. The cost for such credit shall
285be an amount representing the present value of that employee's
286accumulated benefit obligation for the affected period of
287service.
288     c.  The employee must transfer the total accumulated
289employer contributions and earnings on deposit in his or her
290Senior Management Service Optional Annuity Program account. If
291the transferred amount is not sufficient to pay the amount due,
292the employee must pay a sum representing the remainder of the
293amount due. In no case may the employee retain any employer
294contributions or earnings thereon from the Senior Management
295Service Optional Annuity Program account.
296     6.  Any retiree of a state-administered retirement system
297who is initially reemployed on or after January 1, 2009, shall
298not be eligible for renewed membership in the Senior Management
299Service Optional Annuity Program.
300     Section 22.  Effective January 1, 2009, subsection (9),
301subsection (13), and subsection (14) of section 121.091, Florida
302Statutes, are amended to read:
303     121.091  Benefits payable under the system.--Benefits may
304not be paid under this section unless the member has terminated
305employment as provided in s. 121.021(39)(a) or begun
306participation in the Deferred Retirement Option Program as
307provided in subsection (13), and a proper application has been
308filed in the manner prescribed by the department. The department
309may cancel an application for retirement benefits when the
310member or beneficiary fails to timely provide the information
311and documents required by this chapter and the department's
312rules. The department shall adopt rules establishing procedures
313for application for retirement benefits and for the cancellation
314of such application when the required information or documents
315are not received.
316     (9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
317     (a)  Any person who is retired under this chapter, except
318under the disability retirement provisions of subsection (4),
319may be employed by an employer that does not participate in a
320state-administered retirement system and may receive
321compensation from that employment without limiting or
322restricting in any way the retirement benefits payable to that
323person.
324     (b)1.a.  Any person who is retired under this chapter,
325except under the disability retirement provisions of subsection
326(4), may be reemployed by any private or public employer after
327retirement and receive retirement benefits and compensation from
328the his or her employer without limitation any limitations,
329except that the a person may not receive both a salary from
330reemployment with any agency participating in the Florida
331Retirement System and retirement benefits under this chapter for
332a period of 12 calendar months immediately after subsequent to
333the calendar month that termination is met as defined in s.
334121.021(39), except as provided in b. date of retirement.
335However, a DROP participant may shall continue employment and
336receive a salary during the period of participation in DROP the
337Deferred Retirement Option Program, as provided in subsection
338(13).
339     b.  Any person who is retired under a state-administered
340retirement system may not receive a retirement benefit if he or
341she receives compensation totaling $100,000 or more from an
342employer participating in the Florida Retirement System. This
343limitation begins immediately upon employment if the annualized
344compensation meets or exceeds the limit, or in the month that
345reported compensation meets or exceeds the limit during the plan
346year, and continues for as long as the expected payments equal
347or exceed $100,000. This limitation includes payments as defined
348in s. 121.021(22) for work performed in regularly established
349positions. The employer is responsible for notifying the
350Division of Retirement when this occurs, either at employment or
351if salary increases lead to the level specified. Any person
352employed in violation of this sub-subparagraph and any employing
353agency that knowingly employs or appoints such person without
354notifying the Division of Retirement to suspend retirement
355benefits shall be jointly and severally liable for reimbursement
356to the retirement trust fund of any benefits paid during the
357reemployment limitation period.
358     2.  Any person to whom the limitation in subparagraph 1.
359applies who violates such reemployment limitation and who is
360reemployed with any agency participating in the Florida
361Retirement System after he or she has been retired and met the
362definition of termination in s. 121.021(39), but before
363completion of the 12-month limitation period must shall give
364timely notice of this fact in writing to the employer and to the
365Division of Retirement division and shall have his or her
366retirement benefits suspended while employed during for the
367balance of the 12-month limitation period unless the person
368exceeds the 780-hour limitation in subparagraph 4. or
369subparagraph 5. Any person employed in violation of this
370paragraph and any employing agency that which knowingly employs
371or appoints such person without notifying the division of
372Retirement to suspend retirement benefits are shall be jointly
373and severally liable for reimbursement to the retirement trust
374fund of any benefits paid during the reemployment limitation
375period. To avoid liability, the such employing agency must shall
376have a written statement from the retiree that he or she is not
377retired from a state-administered retirement system. Any
378retirement benefits received while reemployed during this
379reemployment limitation period must shall be repaid to the
380Florida Retirement System Trust Fund retirement trust fund, and
381retirement benefits shall remain suspended until such repayment
382has been made. Benefits suspended beyond the reemployment
383limitation shall apply toward repayment of benefits received in
384violation of the reemployment limitation.
385     3.  A district school board may reemploy a retired member
386as a substitute or hourly teacher, education paraprofessional,
387transportation assistant, bus driver, or food service worker on
388a noncontractual basis after he or she has been retired and met
389the definition of termination for 1 calendar month, in
390accordance with s. 121.021(39). A district school board may
391reemploy a retired member as instructional personnel, as defined
392in s. 1012.01(2)(a), on an annual contractual basis after he or
393she has been retired and met the definition of termination for 1
394calendar month, in accordance with s. 121.021(39). Any other
395retired member who is reemployed before meeting the definition
396of termination voids within 1 calendar month after retirement
397shall void his or her application for retirement benefits.
398District school boards reemploying such teachers, education
399paraprofessionals, transportation assistants, bus drivers, or
400food service workers are subject to the retirement contribution
401required by subparagraph 7.
402     4.  A community college board of trustees may reemploy a
403retired member as an adjunct instructor, that is, an instructor
404who is noncontractual and part-time, or as a participant in a
405phased retirement program within the Florida Community College
406System, after he or she has been retired and met the definition
407of termination for 1 calendar month, in accordance with s.
408121.021(39). Any retired member who is reemployed before meeting
409the definition of termination voids within 1 calendar month
410after retirement shall void his or her application for
411retirement benefits. Boards of trustees reemploying such
412instructors are subject to the retirement contribution required
413in subparagraph 7. A retired member may be reemployed as an
414adjunct instructor for no more than 780 hours during the first
41512 calendar months after meeting the definition of termination
416of retirement. Any retired member reemployed for more than 780
417hours during the first 12 months of retirement must shall give
418timely notice in writing to the employer and to the Division of
419Retirement division of the date he or she will exceed the
420limitation. The division shall suspend his or her retirement
421benefits for the remainder of the 12-month limitation period
422first 12 months of retirement. Any person employed in violation
423of this subparagraph and any employing agency that which
424knowingly employs or appoints such person without notifying the
425division of Retirement to suspend retirement benefits are shall
426be jointly and severally liable for reimbursement to the
427retirement trust fund of any benefits paid during the
428reemployment limitation period. To avoid liability, the such
429employing agency must shall have a written statement from the
430retiree that he or she is not retired from a state-administered
431retirement system. Any retirement benefits received by a retired
432member while reemployed in excess of 780 hours during the 12-
433month limitation period must first 12 months of retirement shall
434be repaid to the Florida Retirement System Trust Fund, and
435retirement benefits shall remain suspended until repayment is
436made. Benefits suspended beyond the end of the 12-month
437limitation period retired member's first 12 months of retirement
438shall apply toward repayment of benefits received in violation
439of the 780-hour reemployment limitation.
440     5.  The State University System may reemploy a retired
441member as an adjunct faculty member or as a participant in a
442phased retirement program within the State University System
443after the retired member has met the definition of termination
444been retired for 1 calendar month, in accordance with s.
445121.021(39). Any retired member who is reemployed before meeting
446the definition of termination voids within 1 calendar month
447after retirement shall void his or her application for
448retirement benefits. The State University System is subject to
449the retired contribution required in subparagraph 7., as
450appropriate. A retired member may be reemployed as an adjunct
451faculty member or a participant in a phased retirement program
452for no more than 780 hours during the first 12 calendar months
453after meeting the definition of termination of his or her
454retirement. Any retired member reemployed for more than 780
455hours during the 12-month limitation period first 12 months of
456retirement shall give timely notice in writing to the employer
457and to the Division of Retirement division of the date he or she
458will exceed the limitation. The division shall suspend his or
459her retirement benefits for the remainder of the 12-month
460limitation period first 12 months of retirement. Any person
461employed in violation of this subparagraph and any employing
462agency that which knowingly employs or appoints such person
463without notifying the division Division of Retirement to suspend
464retirement benefits are shall be jointly and severally liable
465for reimbursement to the retirement trust fund of any benefits
466paid during the reemployment limitation period. To avoid
467liability, such employing agency must shall have a written
468statement from the retiree that he or she is not retired from a
469state-administered retirement system. Any retirement benefits
470received by a retired member while reemployed in excess of 780
471hours during the first 12 months of retirement must shall be
472repaid to the Florida Retirement System Trust Fund, and
473retirement benefits shall remain suspended until repayment is
474made. Benefits suspended beyond the end of the retired member's
47512-month limitation period first 12 months of retirement shall
476apply toward repayment of benefits received in violation of the
477780-hour reemployment limitation.
478     6.  The Board of Trustees of the Florida School for the
479Deaf and the Blind may reemploy a retired member as a substitute
480teacher, substitute residential instructor, or substitute nurse
481on a noncontractual basis after he or she has met the definition
482of termination been retired for 1 calendar month, in accordance
483with s. 121.021(39). The Board of Trustees of the Florida School
484for the Deaf and the Blind may reemploy a retired member as
485instructional personnel, as defined in s. 1012.01(2)(a), on an
486annual contractual basis after he or she has been retired and
487met the definition of termination in s. 121.021(39). Any retired
488member who is reemployed before meeting the definition of
489termination voids within 1 calendar month after retirement shall
490void his or her application for retirement benefits. The Board
491of Trustees of the Florida School for the Deaf and the Blind
492reemploying such teachers, residential instructors, or nurses is
493subject to the retirement contribution required by subparagraph
4947. Reemployment of a retired member as a substitute teacher,
495substitute residential instructor, or substitute nurse is
496limited to 780 hours during the first 12 months of his or her
497retirement. Any retired member reemployed for more than 780
498hours during the first 12 months of retirement shall give timely
499notice in writing to the employer and to the division of the
500date he or she will exceed the limitation. The division shall
501suspend his or her retirement benefits for the remainder of the
502first 12 months of retirement. Any person employed in violation
503of this subparagraph and any employing agency which knowingly
504employs or appoints such person without notifying the Division
505of Retirement to suspend retirement benefits shall be jointly
506and severally liable for reimbursement to the retirement trust
507fund of any benefits paid during the reemployment limitation
508period. To avoid liability, such employing agency shall have a
509written statement from the retiree that he or she is not retired
510from a state-administered retirement system. Any retirement
511benefits received by a retired member while reemployed in excess
512of 780 hours during the first 12 months of retirement shall be
513repaid to the Retirement System Trust Fund, and his or her
514retirement benefits shall remain suspended until payment is
515made. Benefits suspended beyond the end of the retired member's
516first 12 months of retirement shall apply toward repayment of
517benefits received in violation of the 780-hour reemployment
518limitation.
519     7.a.  The employment by an employer of a any retiree or
520DROP participant of any state-administered retirement system
521does not affect shall have no effect on the average final
522compensation or years of creditable service of the retiree or
523DROP participant.
524     b.  Prior to July 1, 1991 and for initial enrollment as a
525renewed member through December 31, 2008, upon employment of any
526person, other than an elected officer as provided in s. 121.053,
527who is has been retired under a any state-administered
528retirement program, the employer shall pay retirement
529contributions in an amount equal to the unfunded actuarial
530liability portion of the employer contribution which would be
531required for regular members of the Florida Retirement System.
532Effective July 1, 1991, contributions shall be made as provided
533in s. 121.122 for retirees who have with renewed membership or,
534as provided in subsection (13) for with respect to DROP
535participants.
536     c.  Any person who is retired under a state-administered
537retirement program and who is initially reemployed on or after
538January 1, 2009, will not renew membership in the Florida
539Retirement System. The employer shall pay retirement
540contributions in an amount equal to the unfunded actuarial
541liability portion of the employer contribution that would be
542required for active members of the Florida Retirement System in
543addition to the contributions required by s. 121.76.
544     8.a.  Any person who has previously retired and who is
545holding an elective public office or an appointment to an
546elective public office initially eligible for the Elected
547Officers' Class on or after July 1, 1990 through December 31,
5482008, shall be enrolled in the Florida Retirement System as
549provided in s. 121.053(1)(b) or, if holding an elective public
550office that does not qualify for the Elected Officers' Class on
551or after July 1, 1991 through December 31, 2008, shall be
552enrolled in the Florida Retirement System as provided in s.
553121.122, and shall continue to receive retirement benefits as
554well as compensation for the elected officer's service for as
555long as he or she remains in elective office. However, any
556retired member who served in an elective office prior to July 1,
5571990, suspended his or her retirement benefit, and had his or
558her Florida Retirement System membership reinstated shall, upon
559retirement from such office, have his or her retirement benefit
560recalculated to include the additional service and compensation
561earned.
562     b.  Any person who has retired and who is holding an
563elective public office or an appointment to an elective public
564office initially eligible for the Elected Officers' Class on or
565after January 1, 2009, shall not be enrolled in the Florida
566Retirement System as provided in s. 121.053(1)(b) or, if holding
567an elective public office that does not qualify for the Elected
568Officers' Class and is initially eligible on or after January 1,
5692009, shall not be enrolled in the Florida Retirement System as
570provided in s. 121.122, and shall not continue to receive
571retirement benefits during the first 12 calendar months after
572meeting the definition of termination in s. 121.021(39).
573     9.a.  Any person who is holding an elective public office
574which is covered by the Florida Retirement System and who is
575concurrently employed in nonelected covered employment before
576January 1, 2009, may elect to retire while continuing employment
577in the elective public office, if provided that he or she
578terminates shall be required to terminate his or her nonelected
579covered employment. Any person who exercises this election shall
580receive his or her retirement benefits in addition to the
581compensation of the elective office without regard to the time
582limitations otherwise provided in this subsection. A No person
583who seeks to exercise the provisions of this subparagraph, as
584they the same existed prior to May 3, 1984, may not shall be
585deemed to be retired under those provisions, unless such person
586is eligible to retire under the provisions of this subparagraph,
587as amended by chapter 84-11, Laws of Florida.
588     b.  Any person who is holding an elective public office
589which is covered by the Florida Retirement System and who is
590concurrently employed in nonelected covered employment on or
591after January 1, 2009, may not elect to retire while continuing
592employment in the elective public office.  Such person must meet
593the definition of termination in s. 121.021(39) and is subject
594to the limitations provided in this section.
595     10.  The limitations of this paragraph apply to
596reemployment in any capacity with an "employer" as defined in s.
597121.021(10), irrespective of the category of funds from which
598the person is compensated.
599     11.  A developmental research school may reemploy a retired
600member as a substitute or hourly teacher or an education
601paraprofessional, as defined in s. 1012.01(2), on a
602noncontractual basis after he or she has been retired and met
603the definition of termination in s. 121.021(39). A developmental
604research school may reemploy a retired member as instructional
605personnel, as defined in s. 1012.01(2)(a), on an annual
606contractual basis after he or she has been retired and met the
607definition of termination in s. 121.021(39). Any other retired
608member who is reemployed within 12 calendar months after
609retirement voids his or her application for retirement benefits.
610A developmental research school that reemploys retired teachers
611and education paraprofessionals are subject to the retirement
612contribution required by subparagraph 7.
61312.  A charter school may reemploy a retired member as a
614substitute or hourly teacher on a noncontractual basis after he
615or she has been retired and met the definition of termination in
616s. 121.021(39). A charter school may reemploy a retired member
617as instructional personnel, as defined in s. 1012.01(2)(a), on
618an annual contractual basis after he or she has been retired and
619met the definition of termination in s. 121.021(39). Any other
620retired member who is reemployed within 12 calendar months after
621retirement voids his or her application for retirement benefits.
622A charter school that reemploys such teachers is subject to the
623retirement contribution required by subparagraph 7.
62413.  The reemployment after retirement provisions of this
625paragraph apply to DROP participants effective upon the end of
626DROP participation and meeting the definition of termination in
627s. 121.021(39). An employing agency may reemploy a retired
628member as a firefighter or paramedic after the retired member
629has been retired for 1 calendar month, in accordance with s.
630121.021(39). Any retired member who is reemployed within 1
631calendar month after retirement shall void his or her
632application for retirement benefits. The employing agency
633reemploying such firefighter or paramedic is subject to the
634retired contribution required in subparagraph 8. Reemployment of
635a retired firefighter or paramedic is limited to no more than
636780 hours during the first 12 months of his or her retirement.
637Any retired member reemployed for more than 780 hours during the
638first 12 months of retirement shall give timely notice in
639writing to the employer and to the division of the date he or
640she will exceed the limitation. The division shall suspend his
641or her retirement benefits for the remainder of the first 12
642months of retirement. Any person employed in violation of this
643subparagraph and any employing agency which knowingly employs or
644appoints such person without notifying the Division of
645Retirement to suspend retirement benefits shall be jointly and
646severally liable for reimbursement to the Retirement System
647Trust Fund of any benefits paid during the reemployment
648limitation period. To avoid liability, such employing agency
649shall have a written statement from the retiree that he or she
650is not retired from a state-administered retirement system. Any
651retirement benefits received by a retired member while
652reemployed in excess of 780 hours during the first 12 months of
653retirement shall be repaid to the Retirement System Trust Fund,
654and retirement benefits shall remain suspended until repayment
655is made. Benefits suspended beyond the end of the retired
656member's first 12 months of retirement shall apply toward
657repayment of benefits received in violation of the 780-hour
658reemployment limitation.
659     (c)  The provisions of this subsection apply to retirees,
660as defined in s. 121.4501(2)(j), of the Public Employee Optional
661Retirement Program created in part II, subject to the following
662conditions:
663     1.  Such retirees may not be reemployed with an employer
664participating in the Florida Retirement System as provided in
665paragraph (b) until such person has been retired for 12 3
666calendar months, unless the participant has reached the normal
667retirement requirements of the defined benefit plan as provided
668in s. 121.021(29).
669     2.  Such retiree employed in violation of this subsection
670and any employing agency that knowingly employs or appoints such
671person shall be jointly and severally liable for reimbursement
672of any benefits paid to the retirement trust fund from which the
673benefits were paid, including the Retirement System Trust Fund
674and the Public Employee Optional Retirement Program Trust Fund,
675as appropriate. To avoid liability, such employing agency must
676have a written statement from the retiree that he or she is not
677retired from a state-administered retirement system.
678     (13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
679subject to the provisions of this section, the Deferred
680Retirement Option Program, hereinafter referred to as the DROP,
681is a program under which an eligible member of the Florida
682Retirement System may elect to participate, deferring receipt of
683retirement benefits while continuing employment with his or her
684Florida Retirement System employer. The deferred monthly
685benefits shall accrue in the System Trust Fund on behalf of the
686participant, plus interest compounded monthly, for the specified
687period of the DROP participation, as provided in paragraph (c).
688Upon termination of employment as required in s. 121.021(39)(b),
689the participant shall receive the total DROP benefits and begin
690to receive the previously determined normal retirement benefits.
691Participation in the DROP does not guarantee employment for the
692specified period of DROP. Participation in the DROP by an
693eligible member beyond the initial 60-month period as authorized
694in this subsection shall be on an annual contractual basis for
695all participants.
696     (a)  Eligibility of member to participate in the DROP.--All
697active Florida Retirement System members in a regularly
698established position, and all active members of either the
699Teachers' Retirement System established in chapter 238 or the
700State and County Officers' and Employees' Retirement System
701established in chapter 122, which systems are consolidated
702within the Florida Retirement System under s. 121.011, are
703eligible to elect participation in the DROP if provided that:
704     1.  The member is not a renewed member of the Florida
705Retirement System under s. 121.122, or a member or renewed
706member of the State Community College System Optional Retirement
707Program under s. 121.051, the Senior Management Service Optional
708Annuity Program under s. 121.055, or the optional retirement
709program for the State University System under s. 121.35.
710     2.  Except as provided in subparagraph 6., election to
711participate is made within 12 months immediately following the
712date on which the member first reaches normal retirement date,
713or, for a member who reaches normal retirement date based on
714service before he or she reaches age 62, or age 55 for Special
715Risk Class members, election to participate may be deferred to
716the 12 months immediately following the date the member attains
71757, or age 52 for Special Risk Class members. For a member who
718first reached normal retirement date or the deferred eligibility
719date described above prior to the effective date of this
720section, election to participate shall be made within 12 months
721after the effective date of this section. A member who fails to
722make an election within the such 12-month limitation period
723forfeits shall forfeit all rights to participate in the DROP.
724The member shall advise his or her employer and the division in
725writing of the date on which the DROP begins shall begin. The
726Such beginning date may be subsequent to the 12-month election
727period, but must be within the original 60-month participation
728or, with respect to members who are instructional personnel
729employed by the Florida School for the Deaf and the Blind and
730who have received authorization by the Board of Trustees of the
731Florida School for the Deaf and the Blind to participate in the
732DROP beyond 60 months, or who are instructional personnel as
733defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
734received authorization by the district school superintendent to
735participate in the DROP beyond 60 months, the 96-month
736limitation period as provided in subparagraph (b)1. When
737establishing eligibility of the member to participate in the
738DROP for the 60-month or, with respect to members who are
739instructional personnel employed by the Florida School for the
740Deaf and the Blind and who have received authorization by the
741Board of Trustees of the Florida School for the Deaf and the
742Blind to participate in the DROP beyond 60 months, or who are
743instructional personnel as defined in s. 1012.01(2)(a)-(d) in
744grades K-12 and who have received authorization by the district
745school superintendent to participate in the DROP beyond 60
746months, the 96-month maximum participation period, the member
747may elect to include or exclude any optional service credit
748purchased by the member from the total service used to establish
749the normal retirement date. A member who has with dual normal
750retirement dates is shall be eligible to elect to participate in
751DROP within 12 months after attaining normal retirement date in
752either class.
753     3.  The employer of a member electing to participate in the
754DROP, or employers if dually employed, shall acknowledge in
755writing to the division the date the member's participation in
756the DROP begins and the date the member's employment and DROP
757participation will terminate.
758     4.  Simultaneous employment of a participant by additional
759Florida Retirement System employers subsequent to the
760commencement of participation in the DROP is shall be
761permissible if provided such employers acknowledge in writing a
762DROP termination date no later than the participant's existing
763termination date or the maximum participation 60-month
764limitation period as provided in subparagraph (b)1.
765     5.  A DROP participant may change employers while
766participating in the DROP, subject to the following:
767     a.  A change of employment must take place without a break
768in service so that the member receives salary for each month of
769continuous DROP participation. If a member receives no salary
770during a month, DROP participation shall cease unless the
771employer verifies a continuation of the employment relationship
772for such participant pursuant to s. 121.021(39)(b).
773     b.  Such participant and new employer shall notify the
774division of the identity of the new employer on forms required
775by the division as to the identity of the new employer.
776     c.  The new employer shall acknowledge, in writing, the
777participant's DROP termination date, which may be extended but
778not beyond the maximum participation original 60-month or, with
779respect to members who are instructional personnel employed by
780the Florida School for the Deaf and the Blind and who have
781received authorization by the Board of Trustees of the Florida
782School for the Deaf and the Blind to participate in the DROP
783beyond 60 months, or who are instructional personnel as defined
784in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
785authorization by the district school superintendent to
786participate in the DROP beyond 60 months, the 96-month period
787provided in subparagraph (b)1., shall acknowledge liability for
788any additional retirement contributions and interest required if
789the participant fails to timely terminate employment, and is
790shall be subject to the adjustment required in sub-subparagraph
791(c)5.d.
792     6.  Effective July 1, 2001, for instructional personnel as
793defined in s. 1012.01(2), election to participate in the DROP
794may shall be made at any time following the date on which the
795member first reaches normal retirement date. The member shall
796advise his or her employer and the division in writing of the
797date on which DROP begins the Deferred Retirement Option Program
798shall begin. When establishing eligibility of the member to
799participate in the DROP for the 60-month or, with respect to
800members who are instructional personnel employed by the Florida
801School for the Deaf and the Blind and who have received
802authorization by the Board of Trustees of the Florida School for
803the Deaf and the Blind to participate in the DROP beyond 60
804months, or who are instructional personnel as defined in s.
8051012.01(2)(a)-(d) in grades K-12 and who have received
806authorization by the district school superintendent to
807participate in the DROP beyond 60 months, the 96-month maximum
808participation period, as provided in subparagraph (b)1., the
809member may elect to include or exclude any optional service
810credit purchased by the member from the total service used to
811establish the normal retirement date. A member who has with dual
812normal retirement dates is shall be eligible to elect to
813participate in either class.
814     (b)  Participation in the DROP.--
815     1.a.  An eligible member may elect to participate in the
816DROP for a period not to exceed a maximum of 60 calendar months
817or, except as provided in subparagraph b.
818     b.  Members with respect to members who are instructional
819personnel employed by the Florida School for the Deaf and the
820Blind and who are authorized have received authorization by the
821Board of Trustees of the Florida School for the Deaf and the
822Blind to participate in the DROP beyond 60 months, or who are
823instructional personnel as defined in s. 1012.01(2)(a)-(d) in
824grades K-12 and who are authorized have received authorization
825by the district school superintendent to participate in the DROP
826beyond 60 calendar months, or who are instructional personnel as
827defined in s. 1012.01(2)(a)-(d) employed by a developmental
828research school and who are authorized by the school's director,
829or if the school has no director, by the school's principal, to
830participate in DROP beyond the original 60-month period, for up
831to 36 96 calendar months immediately following the DROP
832termination date selected for participation in sub-subparagraph
833a. date on which the member first reaches his or her normal
834retirement date or the date to which he or she is eligible to
835defer his or her election to participate as provided in
836subparagraph (a)2. However, a member who has reached normal
837retirement date prior to the effective date of the DROP shall be
838eligible to participate in the DROP for a period of time not to
839exceed 60 calendar months or, with respect to members who are
840instructional personnel employed by the Florida School for the
841Deaf and the Blind and who have received authorization by the
842Board of Trustees of the Florida School for the Deaf and the
843Blind to participate in the DROP beyond 60 months, or who are
844instructional personnel as defined in s. 1012.01(2)(a)-(d) in
845grades K-12 and who have received authorization by the district
846school superintendent to participate in the DROP beyond 60
847calendar months, 96 calendar months immediately following the
848effective date of the DROP, except a member of the Special Risk
849Class who has reached normal retirement date prior to the
850effective date of the DROP and whose total accrued value exceeds
85175 percent of average final compensation as of his or her
852effective date of retirement shall be eligible to participate in
853the DROP for no more than 36 calendar months immediately
854following the effective date of the DROP.
855     2.  Upon deciding to participate in the DROP, the member
856shall submit, on forms required by the division:
857     a.  A written election to participate in the DROP;
858     b.  Selection of the DROP participation and termination
859dates, which satisfy the limitations stated in paragraph (a) and
860subparagraph 1. The Such termination date must shall be in a
861binding letter of resignation to with the employer, establishing
862a deferred termination date. The member may change the
863termination date within the limitations of subparagraph 1., but
864only with the written approval of the his or her employer;
865     c.  A properly completed DROP application for service
866retirement as provided in this section; and
867     d.  Any other information required by the division.
868     3.  The DROP participant is shall be a retiree under the
869Florida Retirement System for all purposes, except for paragraph
870(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
871and 121.122. DROP participation is final and cannot be canceled
872by the participant after the first payment is credited during
873the DROP participation period. However, participation in the
874DROP does not alter the participant's employment status and the
875member is such employee shall not be deemed retired from
876employment until his or her deferred resignation is effective
877and termination occurs as provided in s. 121.021(39).
878     4.  Elected officers are shall be eligible to participate
879in the DROP subject to the following:
880     a.  An elected officer who reaches normal retirement date
881during a term of office may defer the election to participate in
882the DROP until the next succeeding term in that office. An Such
883elected officer who exercises this option may participate in the
884DROP for up to 60 calendar months or a period of no longer than
885the such succeeding term of office, whichever is less.
886     b.  An elected or a nonelected participant may run for a
887term of office while participating in DROP and, if elected,
888extend the DROP termination date accordingly, except, however,
889if such additional term of office exceeds the 60-month
890limitation established in subparagraph 1., and the officer does
891not resign from office within such 60-month limitation, the
892retirement and the participant's DROP is shall be null and void
893as provided in sub-subparagraph (c)5.d.
894     c.(I)  For DROP participation ending before January 1,
8952009, an elected officer who is dually employed and elects to
896participate in DROP must shall be required to satisfy the
897definition of termination within the original 60-month period or
898maximum participation, with respect to members who are
899instructional personnel employed by the Florida School for the
900Deaf and the Blind and who have received authorization by the
901Board of Trustees of the Florida School for the Deaf and the
902Blind to participate in the DROP beyond 60 months, or who are
903instructional personnel as defined in s. 1012.01(2)(a)-(d) in
904grades K-12 and who have received authorization by the district
905school superintendent to participate in the DROP beyond 60
906months, the 96-month limitation period as provided in
907subparagraph 1. for the nonelected position and may continue
908employment as an elected officer as provided in s. 121.053. The
909elected officer shall will be enrolled as a renewed member in
910the Elected Officers' Class or the Regular Class, as provided in
911ss. 121.053 and 121.122, on the first day of the month after
912termination of employment in the nonelected position and
913termination of DROP. Distribution of the DROP benefits shall be
914made as provided in paragraph (c).
915(II)  For DROP participation ending on or after January 1,
9162009, an elected officer who is dually employed and elects to
917participate in DROP must satisfy the definition of termination
918in s. 121.021(39) within the original 60-month period or maximum
919period as provided in subparagraph 1.
920     (c)  Benefits payable under the DROP.--
921     1.  Effective on with the date of DROP participation, the
922member's initial normal monthly benefit, including creditable
923service, optional form of payment, and average final
924compensation, and the effective date of retirement are shall be
925fixed. The beneficiary established under the Florida Retirement
926System shall be the beneficiary eligible to receive any DROP
927benefits payable if the DROP participant dies prior to the
928completion of the period of DROP participation. If In the event
929a joint annuitant predeceases the member, the member may name a
930beneficiary to receive accumulated DROP benefits payable. The
931Such retirement benefit, the annual cost of living adjustments
932provided in s. 121.101, and interest shall accrue monthly in the
933System Trust Fund. The Such interest shall accrue at an
934effective annual rate of 6.5 percent compounded monthly, on the
935prior month's accumulated ending balance, up to the month of
936termination or death.
937     2.  Each employee who elects to participate in the DROP may
938shall be allowed to elect to receive a lump-sum payment for
939accrued annual leave earned in accordance with agency policy
940upon beginning participation in the DROP. The Such accumulated
941leave payment certified to the division upon commencement of
942DROP shall be included in the calculation of the member's
943average final compensation. The employee electing the such lump-
944sum payment is not upon beginning participation in DROP will not
945be eligible to receive a second lump-sum payment upon
946termination, except to the extent the employee has earned
947additional annual leave which combined with the original payment
948does not exceed the maximum lump-sum payment allowed by the
949employing agency's policy or rules. An Such early lump-sum
950payment shall be based on the hourly wage of the employee at the
951time he or she begins participation in the DROP. If the member
952elects to wait and receive such lump-sum payment upon
953termination of DROP and termination of employment with the
954employer, any accumulated leave payment made at that time may
955not cannot be included in the member's retirement benefit, which
956was determined and fixed by law when the employee elected to
957participate in the DROP.
958     3.  The effective date of DROP participation and the
959effective date of retirement of a DROP participant shall be the
960first day of the month selected by the member to begin
961participation in the DROP, provided such date is properly
962established, with the written confirmation of the employer, and
963the approval of the division, on forms required by the division.
964     4.  Normal retirement benefits and any interest thereon
965shall continue to accrue in the DROP until the established
966termination date of the DROP, or until the participant
967terminates employment or dies prior to such date. Although
968individual DROP accounts shall not be established, a separate
969accounting of each participant's accrued benefits under the DROP
970shall be calculated and provided to participants.
971     5.  At the conclusion of the participant's DROP, the
972division shall distribute the participant's total accumulated
973DROP benefits, subject to the following provisions:
974     a.  The division shall receive verification by the
975participant's employer or employers that the such participant
976has terminated employment as provided in s. 121.021(39)(b).
977     b.  The terminated DROP participant or, if deceased, the
978such participant's named beneficiary, shall elect on forms
979provided by the division to receive payment of the DROP benefits
980in accordance with one of the options listed below. If For a
981participant or beneficiary who fails to elect a method of
982payment within 60 days of termination of the DROP, the division
983shall will pay a lump sum as provided in sub-sub-subparagraph
984(I).
985     (I)  Lump sum.--All accrued DROP benefits, plus interest,
986less withholding taxes remitted to the Internal Revenue Service,
987shall be paid to the DROP participant or surviving beneficiary.
988     (II)  Direct rollover.--All accrued DROP benefits, plus
989interest, shall be paid from the DROP directly to the custodian
990of an eligible retirement plan as defined in s. 402(c)(8)(B) of
991the Internal Revenue Code. However, in the case of an eligible
992rollover distribution to the surviving spouse of a deceased
993participant, an eligible retirement plan is an individual
994retirement account or an individual retirement annuity as
995described in s. 402(c)(9) of the Internal Revenue Code.
996     (III)  Partial lump sum.--A portion of the accrued DROP
997benefits shall be paid to the DROP participant or surviving
998spouse, less withholding taxes remitted to the Internal Revenue
999Service, and the remaining DROP benefits shall be transferred
1000directly to the custodian of an eligible retirement plan as
1001defined in s. 402(c)(8)(B) of the Internal Revenue Code.
1002However, in the case of an eligible rollover distribution to the
1003surviving spouse of a deceased participant, an eligible
1004retirement plan is an individual retirement account or an
1005individual retirement annuity as described in s. 402(c)(9) of
1006the Internal Revenue Code. The proportions shall be specified by
1007the DROP participant or surviving beneficiary.
1008     c.  The form of payment selected by the DROP participant or
1009surviving beneficiary must comply complies with the minimum
1010distribution requirements of the Internal Revenue Code.
1011     d.  A DROP participant who fails to terminate employment as
1012defined in s. 121.021(39)(b) shall be deemed not to be retired,
1013and the DROP election is shall be null and void. Florida
1014Retirement System membership shall be reestablished
1015retroactively to the date of the commencement of the DROP, and
1016each employer with whom the participant continues employment
1017must shall be required to pay to the Florida Retirement System
1018Trust Fund the difference between the DROP contributions paid in
1019paragraph (i) and the contributions required for the applicable
1020Florida Retirement System class of membership during the period
1021the member participated in the DROP, plus 6.5 percent interest
1022compounded annually.
1023     6.  The retirement benefits of any DROP participant who
1024meets the definition of termination in s. 121.021(39)(b), but is
1025in violation of the reemployment provisions as provided in
1026subsection (9), shall be suspended during those months in which
1027the member is in violation. Any member employed in violation of
1028this subparagraph and any employing agency that knowingly
1029employs or appoints such member without notifying the Division
1030of Retirement to suspend retirement benefits are jointly and
1031severally liable for any benefits paid during the reemployment
1032limitation period. To avoid liability, the employing agency must
1033have a written statement from the retiree that he or she is not
1034retired from a state-administered retirement system. Any
1035retirement benefits received by a retired member while employed
1036in violation of the reemployment limitations during the first 12
1037months after meeting termination must be repaid to the Florida
1038Retirement System Trust Fund, and his or her retirement benefits
1039shall remain suspended until payment is made. Benefits suspended
1040beyond the end of the retired member's first 12 calendar months
1041after meeting the definition of termination in s. 121.021(39)(b)
1042shall apply toward repayment of benefits received in violation
1043of the reemployment limitations.
1044     7.  The accrued benefits of any DROP participant, and any
1045contributions accumulated under the such program, are shall not
1046be subject to assignment, execution, attachment, or to any legal
1047process whatsoever, except for qualified domestic relations
1048orders by a court of competent jurisdiction, income deduction
1049orders as provided in s. 61.1301, and federal income tax levies.
1050     8.7.  DROP participants are not shall not be eligible for
1051disability retirement benefits as provided in subsection (4).
1052     (d)  Death benefits under the DROP.--
1053     1.  Upon the death of a DROP participant, the named
1054beneficiary shall be entitled to apply for and receive the
1055accrued benefits in the DROP as provided in sub-subparagraph
1056(c)5.b.
1057     2.  The normal retirement benefit accrued to the DROP
1058during the month of a participant's death shall be the final
1059monthly benefit credited for such DROP participant.
1060     3.  Eligibility to participate in the DROP terminates upon
1061death of the participant. If the participant dies on or after
1062the effective date of enrollment in the DROP, but prior to the
1063first monthly benefit being credited to the DROP, Florida
1064Retirement System benefits shall be paid in accordance with
1065subparagraph (7)(c)1. or subparagraph 2.
1066     4.  A DROP participants' survivors shall not be eligible to
1067receive Florida Retirement System death benefits as provided in
1068paragraph (7)(d).
1069     (e)  Cost-of-living adjustment.--On each July 1, the
1070participants' normal retirement benefit shall be increased as
1071provided in s. 121.101.
1072     (f)  Retiree health insurance subsidy.--DROP participants
1073are not eligible to apply for the retiree health insurance
1074subsidy payments as provided in s. 112.363 until such
1075participants have terminated employment and participation in the
1076DROP.
1077     (g)  Renewed membership.--DROP participants must meet the
1078definition of termination in s. 121.021(39)(b) and must meet
1079eligibility requirements shall not be eligible for renewed
1080membership in the Florida Retirement System under ss. 121.053
1081and 121.122 until termination of employment is effectuated as
1082provided in s. 121.021(39)(b).
1083     (h)  Employment limitation after DROP participation.--Upon
1084satisfying the definition of termination of employment as
1085provided in s. 121.021(39)(b), DROP participants shall be
1086subject to such reemployment limitations as other retirees.
1087Reemployment restrictions applicable to retirees as provided in
1088subsection (9) shall not apply to DROP participants until their
1089employment and participation in the DROP are terminated.
1090     (i)  Contributions.--
1091     1.  All employers paying the salary of a DROP participant
1092filling a regularly established position shall contribute 8.0
1093percent of such participant's gross compensation for the period
1094of July 1, 2002, through June 30, 2003, and 11.56 percent of
1095such compensation thereafter, which shall constitute the entire
1096employer DROP contribution with respect to such participant.
1097Such contributions, payable to the System Trust Fund in the same
1098manner as required in s. 121.071, shall be made as appropriate
1099for each pay period and are in addition to contributions
1100required for social security and the Retiree Health Insurance
1101Subsidy Trust Fund. Such employer, social security, and health
1102insurance subsidy contributions are not included in the DROP.
1103     2.  The employer shall, in addition to subparagraph 1.,
1104also withhold one-half of the entire social security
1105contribution required for the participant. Contributions for
1106social security by each participant and each employer, in the
1107amount required for social security coverage as now or hereafter
1108provided by the federal Social Security Act, shall be in
1109addition to contributions specified in subparagraph 1.
1110     3.  All employers paying the salary of a DROP participant
1111filling a regularly established position shall contribute the
1112percent of such participant's gross compensation required in s.
1113121.071(4), which shall constitute the employer's health
1114insurance subsidy contribution with respect to such participant.
1115Such contributions shall be deposited by the administrator in
1116the Retiree Health Insurance Subsidy Trust Fund.
1117     (j)  Forfeiture of retirement benefits.--Nothing in this
1118section shall be construed to remove DROP participants from the
1119scope of s. 8(d), Art. II of the State Constitution, s.
1120112.3173, and paragraph (5)(f). DROP participants who commit a
1121specified felony offense while employed will be subject to
1122forfeiture of all retirement benefits, including DROP benefits,
1123pursuant to those provisions of law.
1124     (k)  Administration of program.--The division shall make
1125such rules as are necessary for the effective and efficient
1126administration of this subsection. The division shall not be
1127required to advise members of the federal tax consequences of an
1128election related to the DROP but may advise members to seek
1129independent advice.
1130     (14)  PAYMENT OF BENEFITS.--This subsection applies to the
1131payment of benefits to a payee (retiree or beneficiary) under
1132the Florida Retirement System:
1133     (a)  Federal income tax shall be withheld in accordance
1134with federal law, unless the payee elects otherwise on Form W-
11354P. The division shall prepare and distribute to each recipient
1136of monthly retirement benefits an appropriate income tax form
1137that reflects the recipient's income and federal income tax
1138withheld for the calendar year just ended.
1139     (b)  Subject to approval by the division in accordance with
1140rule 60S-4.015, Florida Administrative Code, a payee receiving
1141retirement benefits under the Florida Retirement system may also
1142have the following payments deducted from his or her monthly
1143benefit:
1144     1.  Premiums for life and health-related insurance policies
1145from approved companies.
1146     2.  Life insurance premiums for the State Group Life
1147Insurance Plan, if authorized in writing by the payee and by the
1148department of Management Services.
1149     3.  Repayment of overpayments from the Florida Retirement
1150System Trust Fund, the State Employees' Health Insurance Trust
1151Fund, or the State Employees' Life Insurance Trust Fund, upon
1152notification of the payee.
1153     4.  Payments to an alternate payee for alimony or, child
1154support pursuant to an income deduction order under s. 61.1301,
1155or division of marital assets pursuant to a qualified domestic
1156relations order under s. 222.21 or an income deduction order
1157under s. 61.1301.
1158     5.  Payments to the Internal Revenue Service for federal
1159income tax levies, upon notification of the division by the
1160Internal Revenue Service.
1161     (c)  A payee must shall notify the division of any change
1162in his or her address. The division may suspend benefit payments
1163to a payee if correspondence sent to the payee's mailing address
1164is returned due to an incorrect address. Benefit payments shall
1165be resumed upon notification to the division of the payee's new
1166address.
1167     (d)  A payee whose retirement benefits are reduced by the
1168application of maximum benefit limits under s. 415(b) of the
1169Internal Revenue Code, as specified in s. 121.30(5), shall have
1170the portion of his or her calculated benefit in the Florida
1171Retirement System defined benefit plan which exceeds such
1172federal limitation paid through the Florida Retirement System
1173Preservation of Benefits Plan, as provided in s. 121.1001.
1174     (e)  The Division of Retirement may issue retirement
1175benefits payable for division of marital assets pursuant to a
1176qualified domestic relations order directly to the alternate
1177payee, any court order to the contrary notwithstanding, in order
1178to meet Internal Revenue Code requirements.
1179     (f)(e)  A No benefit may not be reduced for the purpose of
1180preserving the member's eligibility for a federal program.
1181     (g)(f)  The division shall adopt rules establishing
1182procedures for determining that the persons to whom benefits are
1183being paid are still living. The division shall suspend the
1184benefits being paid to any payee if when it is unable to contact
1185such payee and to confirm that he or she is still living.
1186     Section 23.  Effective January 1, 2009, section 121.093,
1187Florida Statutes, is repealed.
1188     Section 24.  Effective January 1, 2009, section 121.094,
1189Florida Statutes, is repealed.
1190     Section 25.  Effective January 1, 2009, section 121.122,
1191Florida Statutes, is amended to read:
1192     121.122  Renewed membership in system.--
1193     (1)  Any retiree of a state-administered retirement system
1194who is initially reemployed on or after January 1, 2009, shall
1195not be eligible for renewed membership.
1196     (2)  Except as provided in s. 121.053, effective July 1,
11971991, through December 31, 2008, any retiree of a state-
1198administered retirement system who is initially reemployed
1199employed in a regularly established position with a covered
1200employer shall be enrolled as a compulsory member of the Regular
1201Class of the Florida Retirement System or, effective July 1,
12021997, through December 31, 2008, any retiree of a state-
1203administered retirement system who is initially reemployed
1204employed in a position included in the Senior Management Service
1205Class shall be enrolled as a compulsory member of the Senior
1206Management Service Class of the Florida Retirement System as
1207provided in s. 121.055, and shall be entitled to receive an
1208additional retirement benefit, subject to the following
1209conditions:
1210     (1)(a)  Such member shall resatisfy the age and service
1211requirements as provided in this chapter for initial membership
1212under the system, unless such member elects to participate in
1213the Senior Management Service Optional Annuity Program in lieu
1214of the Senior Management Service Class, as provided in s.
1215121.055(6).
1216     (b)  Such member shall not be entitled to disability
1217benefits as provided in s. 121.091(4).
1218     (c)  Such member must meet the reemployment after
1219retirement limitations as provided in s. 121.091(9), as
1220applicable.
1221     (3)(2)  Upon renewed membership or reemployment of a
1222retiree, the employer of such member shall pay the applicable
1223employer contributions as required by ss. 121.71, 121.74,
1224121.76, and 112.363 121.055(3) and 121.071(1)(a) and (4).
1225     (4)(3)  The retiree of a state-administered retirement
1226system who is initially reemployed before January 1, 2009, Such
1227member shall be entitled to purchase additional retirement
1228credit in the Regular Class or the Senior Management Service
1229Class, as applicable, for any postretirement service performed
1230in a regularly established position as follows:
1231     (a)  For regular class service prior to July 1, 1991, by
1232paying the Regular Class applicable employee and employer
1233contributions for the period being claimed, plus 4 percent
1234interest compounded annually from first year of service claimed
1235until July 1, 1975, and 6.5 percent interest compounded
1236thereafter, until full payment is made to the Florida Retirement
1237System Trust Fund; or
1238     (b)  For Senior Management Service Class prior to June 1,
12391997, as provided in s. 121.055(1)(j).
1240
1241The contribution for postretirement service between July 1,
12421985, and July 1, 1991, for which the reemployed retiree
1243contribution was paid, shall be the difference between such
1244contribution and the total applicable contribution for the
1245period being claimed, plus interest. The employer of such member
1246may pay the applicable employer contribution in lieu of the
1247member. If a member does not wish to claim credit for all of the
1248postretirement service for which he or she is eligible, the
1249service the member claims must be the most recent service.
1250     (5)(4)  No creditable service for which credit was
1251received, or which remained unclaimed, at retirement may be
1252claimed or applied toward service credit earned following
1253renewed membership. However, for retirees initially reemployed
1254before January 1, 2009, service earned as an elected officer
1255with renewed membership in the Elected Officers' Class may be
1256used in conjunction with creditable service earned under this
1257section, provided the applicable vesting requirements and other
1258existing statutory conditions required by this chapter are met.
1259     (6)(5)  Notwithstanding any other limitations provided in
1260this section, a participant of the State University System
1261Optional Retirement Program or the Senior Management Service
1262Optional Annuity Program who terminated employment and received
1263a distribution commenced receiving an annuity under the
1264provisions of the optional program, who initially renews
1265membership before January 1, 2009, in the Regular Class as
1266required by this section upon reemployment after retirement, and
1267who had previously earned creditable Florida Retirement System
1268service that was not included in any retirement benefit may
1269include such previous service toward vesting and service credit
1270in the second career benefit provided under renewed membership.
1271     (7)(6)  Any renewed member who is not receiving the maximum
1272health insurance subsidy provided in s. 112.363 shall be
1273entitled to earn additional credit toward the maximum health
1274insurance subsidy. Any additional subsidy due because of such
1275additional credit shall be received only at the time of payment
1276of the second career retirement benefit. In no case shall the
1277total health insurance subsidy received by a retiree receiving
1278benefits from initial and renewed membership exceed the maximum
1279allowed in s. 112.363.
1280     Section 26.  Effective January 1, 2009, paragraph (e) of
1281subsection (5) of section 121.35, Florida Statutes, is amended
1282to read:
1283     121.35  Optional retirement program for the State
1284University System.--
1285     (5)  BENEFITS.--
1286     (e)  A participant who chooses to receive his or her
1287benefits upon termination of employment as defined in s.
1288121.021(39) shall have responsibility to notify the provider
1289company of the date on which he or she wishes benefits funded by
1290employer contributions to begin. Benefits may be deferred until
1291such time as the participant chooses to make such application.
1292     Section 27.  Effective January 1, 2009, section 121.45,
1293Florida Statutes, is repealed.
1294     Section 28.  Effective January 1, 2009, paragraph (f) of
1295subsection (2) of section 121.4501, Florida Statutes, is amended
1296to read:
1297     121.4501  Public Employee Optional Retirement Program.--
1298     (2)  DEFINITIONS.--As used in this part, the term:
1299     (f)  "Eligible employee" means an officer or employee, as
1300defined in s. 121.021(11), who:
1301     1.  Is a member of, or is eligible for membership in, the
1302Florida Retirement System, including any renewed member of the
1303Florida Retirement System initially enrolled before January 1,
13042009; or
1305     2.  Participates in, or is eligible to participate in, the
1306Senior Management Service Optional Annuity Program as
1307established under s. 121.055(6), the State Community College
1308Optional Retirement Program as established under s.
1309121.051(2)(c), or the State University System Optional
1310Retirement Program established under s. 121.35.
1311
1312The term does not include any member participating in the
1313Deferred Retirement Option Program established under s.
1314121.091(13), a retiree of a state-administered retirement system
1315initially reemployed on or after January 1, 2009, or a mandatory
1316participant of the State University System Optional Retirement
1317Program established under s. 121.35.
1318     Section 29.  Effective January 1, 2009, subsection (1) of
1319section 121.591, Florida Statutes, is amended to read:
1320     121.591  Benefits payable under the Public Employee
1321Optional Retirement Program of the Florida Retirement
1322System.--Benefits may not be paid under this section unless the
1323member has terminated employment as provided in s.
1324121.021(39)(a) or is deceased and a proper application has been
1325filed in the manner prescribed by the state board or the
1326department. The state board or department, as appropriate, may
1327cancel an application for retirement benefits when the member or
1328beneficiary fails to timely provide the information and
1329documents required by this chapter and the rules of the state
1330board and department. In accordance with their respective
1331responsibilities as provided herein, the State Board of
1332Administration and the Department of Management Services shall
1333adopt rules establishing procedures for application for
1334retirement benefits and for the cancellation of such application
1335when the required information or documents are not received. The
1336State Board of Administration and the Department of Management
1337Services, as appropriate, are authorized to cash out a de
1338minimis account of a participant who has been terminated from
1339Florida Retirement System covered employment for a minimum of 6
1340calendar months. A de minimis account is an account containing
1341employer contributions and accumulated earnings of not more than
1342$5,000 made under the provisions of this chapter. Such cash-out
1343must either be a complete lump-sum liquidation of the account
1344balance, subject to the provisions of the Internal Revenue Code,
1345or a lump-sum direct rollover distribution paid directly to the
1346custodian of an eligible retirement plan, as defined by the
1347Internal Revenue Code, on behalf of the participant. If any
1348financial instrument issued for the payment of retirement
1349benefits under this section is not presented for payment within
1350180 days after the last day of the month in which it was
1351originally issued, the third-party administrator or other duly
1352authorized agent of the State Board of Administration shall
1353cancel the instrument and credit the amount of the instrument to
1354the suspense account of the Public Employee Optional Retirement
1355Program Trust Fund authorized under s. 121.4501(6). Any such
1356amounts transferred to the suspense account are payable upon a
1357proper application, not to include earnings thereon, as provided
1358in this section, within 10 years after the last day of the month
1359in which the instrument was originally issued, after which time
1360such amounts and any earnings thereon shall be forfeited. Any
1361such forfeited amounts are assets of the Public Employee
1362Optional Retirement Program Trust Fund and are not subject to
1363the provisions of chapter 717.
1364     (1)  NORMAL BENEFITS.--Under the Public Employee Optional
1365Retirement Program:
1366     (a)  Benefits in the form of vested accumulations as
1367described in s. 121.4501(6) shall be payable under this
1368subsection in accordance with the following terms and
1369conditions:
1370     1.  To the extent vested, benefits shall be payable only to
1371a participant.
1372     2.  Benefits shall be paid by the third-party administrator
1373or designated approved providers in accordance with the law, the
1374contracts, and any applicable board rule or policy.
1375     3.  To receive benefits under this subsection, the
1376participant must be terminated from all employment with all
1377Florida Retirement System employers, as provided in s.
1378121.021(39).
1379     4.  Benefit payments may not be made until the participant
1380has been terminated for 3 calendar months, except that the board
1381may authorize by rule for the distribution of up to 10 percent
1382of the participant's account after being terminated for 1
1383calendar month if a participant has reached the normal
1384retirement requirements of the defined benefit plan, as provided
1385in s. 121.021(29).
1386     5.  If a member or former member of the Florida Retirement
1387System receives an invalid distribution from the Public Employee
1388Optional Retirement Program Trust Fund, such person shall repay
1389the full invalid distribution to the trust fund within 90 days
1390after receipt of final notification by the State Board of
1391Administration or the third-party administrator that the
1392distribution was invalid. If such person fails to repay the full
1393invalid distribution within 90 days after receipt of final
1394notification, the person may be deemed retired from the Public
1395Employee Optional Retirement Program by the state board, as
1396provided pursuant to s. 121.4501(2)(j), and shall be subject to
1397the provisions of s. 121.122. If such person is deemed retired
1398by the state board, any joint and several liability set out in
1399s. 121.091(9)(c)2. becomes null and void, and the state board,
1400the Department of Management Services, or the employing agency
1401is not liable for gains on payroll contributions that have not
1402been deposited to the person's account in the Public Employee
1403Optional Retirement Program, pending resolution of the invalid
1404distribution. The member or former member who has been deemed
1405retired or who has been determined by the board to have taken an
1406invalid distribution may appeal the agency decision through the
1407complaint process as provided under s. 121.4501(9)(f)3. As used
1408in this subparagraph, the term "invalid distribution" means any
1409distribution from an account in the Public Employee Optional
1410Retirement Program which is taken in violation of the provisions
1411of this section, s. 121.091(9), or s. 121.4501.
1412     (b)  If a participant elects to receive his or her benefits
1413upon termination of employment as defined in s. 121.021(39), the
1414participant must submit a written application or an equivalent
1415form to the third-party administrator indicating his or her
1416preferred distribution date and selecting an authorized method
1417of distribution as provided in paragraph (c). The participant
1418may defer receipt of benefits until he or she chooses to make
1419such application, subject to federal requirements.
1420     (c)  Upon receipt by the third-party administrator of a
1421properly executed application for distribution of benefits, the
1422total accumulated benefit shall be payable to the participant,
1423as:
1424     1.  A lump-sum distribution to the participant;
1425     2.  A lump-sum direct rollover distribution whereby all
1426accrued benefits, plus interest and investment earnings, are
1427paid from the participant's account directly to the custodian of
1428an eligible retirement plan, as defined in s. 402(c)(8)(B) of
1429the Internal Revenue Code, on behalf of the participant; or
1430     3.  Periodic distributions, as authorized by the state
1431board.
1432     Section 30.  Except as otherwise specifically provided in
1433this act, this act shall take effect July 1, 2008.
1434
1435
1436
1437
1438
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1439
T I T L E  A M E N D M E N T
1440     Remove line 85 and insert:
1441of important state interest; amending s. 121.021, F.S.;
1442redefining the term "termination"; amending s. 121.053,
1443F.S.; revising provisions relating to participation in the
1444Elected Officers' Class; amending s. 121.055, F.S.;
1445revising provisions relating to participation in the
1446Senior Management Service Class; amending s. 121.091,
1447F.S.; revising limitations on the payment of retirement
1448contributions for certain retired persons who are
1449reemployed by an employer participating in a state-
1450administered retirement system; deleting a restriction on
1451the reemployment of certain personnel by the Florida
1452School for the Deaf and the Blind; prohibiting certain
1453persons holding public office from electing to retire
1454while continuing employment in that elected office;
1455deleting a provision authorizing an employing agency to
1456reemploy a retired member as a firefighter or paramedic
1457after a specified period; providing certain limitations
1458for DROP participants; clarifying that DROP participation
1459cannot be cancelled; providing for the suspension of DROP
1460benefits to a participant who is reemployed; authorizing
1461the Division of Retirement to issue benefits directly to
1462the alternate payee pursuant to a qualified domestic
1463relations order; repealing s. 121.093, F.S., authorizing a
1464developmental research school and the Florida School for
1465the Deaf and the Blind to reemploy after retirement
1466instructional personnel; repealing s. 121.094, F.S.,
1467authorizing charter schools to reemploy after retirement
1468instructional personnel; reemployment after retirement;
1469amending s. 121.122, F.S.; providing that certain persons
1470are ineligible for renewed membership in the Florida
1471Retirement System; amending s. 121.35, F.S.; providing a
1472cross-reference; repealing s. 121.45, F.S., relating to
1473interstate compacts for pension portability; amending s.
1474121.4501, F.S.; revising the definition of the term
1475"eligible employee" for purposes of the Public Employee
1476Optional Retirement Program; amending s. 121.591, F.S.;
1477providing a cross-reference; providing effective dates.


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