Amendment
Bill No. CS/CS/SB 2848

Amendment No. 697707

CHAMBER ACTION
Senate		House
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1	Representative 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
6	section 121.021, Florida Statutes, is amended to read:
7	121.021  Definitions.--The following words and phrases as
8	used in this chapter have the respective meanings set forth
9	unless a different meaning is plainly required by the context:
10	(39)(a)  "Termination" occurs, except as provided in
11	paragraph (b), when:
12	1.  For retirements effective before January 1, 2009, a
13	member ceases all employment relationships with employers under
14	this system, as defined in subsection (10), but in the event a
15	member should be employed by any such employer within the next
16	calendar month, termination shall be deemed not to have
17	occurred. A leave of absence shall constitute a continuation of
18	the employment relationship, except that a leave of absence
19	without pay due to disability may constitute termination for a
20	member, if such member makes application for and is approved for
21	disability retirement in accordance with s. 121.091(4). The
22	department or board may require other evidence of termination as
23	it deems necessary.
24	2.  For retirements effective on or after January 1, 2009,
25	a member ceases all employment relationships with employers
26	under this system, as defined in subsection (10), but in the
27	event a member should be employed by any such employer within
28	the next 12 calendar months, termination shall be deemed not to
29	have occurred.  A leave of absence shall constitute a
30	continuation of the employment relationship, except that a leave
31	of absence without pay due to disability may constitute
32	termination for a member, if such member makes application for
33	and is approved for disability retirement in accordance with s.
34	121.091(4). The department or board may require other evidence
35	of termination as it deems necessary.
36	(b)  "Termination" for a member electing to participate
37	under the Deferred Retirement Option Program occurs when the
38	Deferred Retirement Option Program participant ceases all
39	employment relationships with employers under this system in
40	accordance with s. 121.091(13), but:
41	1.  For DROP termination dates before January 1, 2009, in
42	the event the Deferred Retirement Option Program participant
43	should be employed by any such employer within the next calendar
44	month, termination will be deemed not to have occurred, except
45	as provided in s. 121.091(13)(b)4.c. A leave of absence shall
46	constitute a continuation of the employment relationship.
47	2.  For DROP termination dates on or after January 1, 2009,
48	in the event the DROP participant should be employed by any such
49	employer within the next 12 calendar months, termination will be
50	deemed not to have occurred, except as provided in s.
51	121.091(13)(b)4.c. A leave of absence shall constitute a
52	continuation of the employment relationship.
53	Section 20.  Effective January 1, 2009, subsection (1) and
54	subsection (2) of section 121.053, Florida Statutes, are amended
55	to read:
56	121.053  Participation in the Elected Officers' Class for
57	retired members.--
58	(1)(a)1.  Any retiree of a state-administered retirement
59	system who initially serves in an elective office in a regularly
60	established position with a covered employer on or after January
61	1, 2009, shall not be enrolled in the Florida Retirement System.
62	2.  An elected officer who is elected or appointed to an
63	elective office and is participating in the Deferred Retirement
64	Option Program is subject to termination as provided in s.
65	121.021(39)(b), and reemployment limitations as provided in s.
66	121.091(9), upon completion of his or her DROP participation
67	period.
68	(b)  Before January 1, 2009, any member who retired under
69	any existing system as defined in s. 121.021(2), and receives a
70	benefit thereof, and who serves in an office covered by the
71	Elected Officers' Class for a period of at least 6 years, shall
72	be entitled to receive an additional retirement benefit for such
73	elected officer service prior to July 1, 1990, under the Elected
74	Officers' Class of the Florida Retirement System, as follows:
75	1.  Upon completion of 6 or more years of creditable
76	service in an office covered by the Elected Officers' Class, s.
77	121.052, such member shall notify the administrator of his or
78	her intent to purchase elected officer service prior to July 1,
79	1990, and shall pay the member contribution applicable for the
80	period being claimed, plus 4 percent interest compounded
81	annually from the first year of service claimed until July 1,
82	1975, and 6.5 percent interest compounded annually thereafter,
83	until full payment is made to the Florida Retirement System
84	Trust Fund; however, such member may purchase retirement credit
85	under the Elected Officers' Class only for such service as an
86	elected officer.
87	2.  Upon payment of the amount specified in subparagraph
88	1., the employer shall pay into the Florida Retirement System
89	Trust Fund the applicable employer contribution for the period
90	of elected officer service prior to July 1, 1990, being claimed
91	by the member, plus 4 percent interest compounded annually from
92	the first year of service claimed until July 1, 1975, and 6.5
93	percent interest compounded annually thereafter, until full
94	payment is made to the Florida Retirement System Trust Fund.
95	(c)(b)  Any retired member of the Florida Retirement
96	System, or any existing system as defined in s. 121.021(2), who,
97	on or after July 1, 1990 through December 31, 2008, is serving
98	in, or is elected or appointed to, an elective office covered by
99	the Elected Officers' Class shall be enrolled in the appropriate
100	subclass of the Elected Officers' Class of the Florida
101	Retirement System, and applicable contributions shall be paid
102	into the Florida Retirement System Trust Fund as provided in s.
103	121.052(7). Pursuant thereto:
104	1.  Any such retired member shall be eligible to continue
105	to receive retirement benefits as well as compensation for the
106	elected officer service for as long as he or she remains in an
107	elective office covered by the Elected Officers' Class.
108	2.  If any such member serves in an elective office covered
109	by the Elected Officers' Class and becomes vested under that
110	class, he or she shall be entitled to receive an additional
111	retirement benefit for such elected officer service.
112	3.  Such member shall be entitled to purchase additional
113	retirement credit in the Elected Officers' Class for any
114	postretirement service performed in an elected position eligible
115	for the Elected Officers' Class prior to July 1, 1990, or in the
116	Regular Class for any postretirement service performed in any
117	other regularly established position prior to July 1, 1991, by
118	paying the applicable Elected Officers' Class or Regular Class
119	employee and employer contributions for the period being
120	claimed, plus 4 percent interest compounded annually from the
121	first year of service claimed until July 1, 1975, and 6.5
122	percent interest compounded thereafter, until full payment is
123	made to the Florida Retirement System Trust Fund. The
124	contribution for postretirement Regular Class service between
125	July 1, 1985, and July 1, 1991, for which the reemployed retiree
126	contribution was paid, shall be the difference between such
127	contribution and the total applicable contribution for the
128	period being claimed, plus interest. The employer of such member
129	may pay the applicable employer contribution in lieu of the
130	member. If a member does not wish to claim credit for all of the
131	postretirement service for which he or she is eligible, the
132	service the member claims must be the most recent service.
133	4.  Creditable service for which credit was received, or
134	which remained unclaimed, at retirement may not be claimed or
135	applied toward service credit earned following renewed
136	membership. However, service earned in accordance with the
137	renewed membership provisions in s. 121.122 may be used in
138	conjunction with creditable service earned under this paragraph,
139	provided applicable vesting requirements and other existing
140	statutory conditions required by this chapter are met.
141	5.  An elected officer who is elected or appointed to an
142	elective office and is participating in the Deferred Retirement
143	Option Program before January 1, 2009, is not subject to
144	termination as provided in s. 121.021(39)(b), or reemployment
145	limitations as provided in s. 121.091(9), until the end of his
146	or her current term of office or, if the officer is
147	consecutively elected or reelected to an elective office
148	eligible for coverage under the Florida Retirement System, until
149	he 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
152	monthly benefits, but shall continue to earn interest as
153	provided in s. 121.091(13).
154	(II)  No retirement contributions shall be required of the
155	employer of the elected officer and no additional retirement
156	credit shall be earned under the Florida Retirement System.
157	b.  Nothing herein shall prevent an elected officer from
158	voluntarily terminating his or her elective office at any time
159	and electing to receive his or her DROP proceeds. However, until
160	termination requirements are fulfilled as provided in s.
161	121.021(39), any elected officer whose termination limitations
162	are extended by this section shall be ineligible for renewed
163	membership in the system and shall receive no pension payments,
164	DROP lump sum payments, or any other state payment other than
165	the statutorily determined salary, travel, and per diem for the
166	elective office.
167	c.  Upon termination, the officer shall receive his or her
168	accumulated DROP account, plus interest, and shall accrue and
169	commence receiving monthly retirement benefits, which shall be
170	paid on a prospective basis only.
171
172	However, an officer electing to participate in the Deferred
173	Retirement Option Program on or before June 30, 2002, shall not
174	be required to terminate and shall remain subject to the
175	provisions of this subparagraph as adopted in section 1 of
176	chapter 2001-235, Laws of Florida.
177	(2)  Upon attaining his or her normal retirement date and
178	payment of the amount specified in paragraphs (1)(b)(a) and
179	(c)(b), and upon application to the administrator of the intent
180	to retire, the member shall receive a monthly benefit under this
181	section, in addition to any benefits already being received,
182	which shall commence on the last day of the month of retirement
183	and be payable on the last day of the month thereafter during
184	his or her lifetime. The amount of such monthly benefit shall be
185	the total percentage of retirement credit purchased under this
186	section multiplied by the member's average monthly compensation
187	as an elected officer, adjusted according to the option selected
188	at retirement under s. 121.091(6).
189	Section 21.  Effective January 1, 2009, paragraph (f) of
190	subsection (1) and paragraph (c) of subsection (6) of section
191	121.055, Florida Statutes, are amended to read:
192	121.055  Senior Management Service Class.--There is hereby
193	established a separate class of membership within the Florida
194	Retirement System to be known as the "Senior Management Service
195	Class," 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
199	state officer eligible for membership in the Elected Officers'
200	Class under s. 121.052(2)(a), (b), or (c) who elects membership
201	in the Senior Management Service Class under s. 121.052(3)(c)
202	may, within 6 months after assuming office or within 6 months
203	after this act becomes a law for serving elected state officers,
204	elect to participate in the Senior Management Service Optional
205	Annuity Program, as provided in subsection (6), in lieu of
206	membership in the Senior Management Service Class.
207	2.  Except as provided in subparagraph 3., any elected
208	county officer eligible for membership in the Elected Officers'
209	Class under s. 121.052(2)(d) who elects membership in the Senior
210	Management Service Class under s. 121.052(3)(c) may, within 6
211	months after assuming office, or within 6 months after this act
212	becomes a law for serving elected county officers, elect to
213	withdraw from the Florida Retirement System participate in a
214	lifetime monthly annuity program, as provided in subparagraph
215	(b)2., in lieu of membership in the Senior Management Service
216	Class.
217	3.  Any retiree of a state-administered retirement system
218	who is initially reemployed on or after January 1, 2009, as an
219	elected official eligible for Elected Officers' Class
220	membership, shall not be eligible for renewed membership in the
221	Senior Management Service Optional Annuity Program as provided
222	in subsection (6) or to withdraw from the Florida Retirement
223	System as a renewed member as provided in subparagraph (b)2., as
224	applicable, in lieu of Senior Management Service Class
225	membership.
226	(6)
227	(c)  Participation.--
228	1.  Any eligible employee who is employed on or before
229	February 1, 1987, may elect to participate in the optional
230	annuity program in lieu of participation in the Senior
231	Management Service Class. Such election shall be made in writing
232	and filed with the department and the personnel officer of the
233	employer on or before May 1, 1987. Any eligible employee who is
234	employed on or before February 1, 1987, and who fails to make an
235	election to participate in the optional annuity program by May
236	1, 1987, shall be deemed to have elected membership in the
237	Senior Management Service Class.
238	2.  Except as provided in subparagraph 6., any employee who
239	becomes eligible to participate in the optional annuity program
240	by reason of initial employment commencing after February 1,
241	1987, may, within 90 days after the date of commencement of
242	employment, elect to participate in the optional annuity
243	program. Such election shall be made in writing and filed with
244	the personnel officer of the employer. Any eligible employee who
245	does not within 90 days after commencement of such employment
246	elect to participate in the optional annuity program shall be
247	deemed to have elected membership in the Senior Management
248	Service Class.
249	3.  A person who is appointed to a position in the Senior
250	Management Service Class and who is a member of an existing
251	retirement system or the Special Risk or Special Risk
252	Administrative Support Classes of the Florida Retirement System
253	may elect to remain in such system or class in lieu of
254	participation in the Senior Management Service Class or optional
255	annuity program. Such election shall be made in writing and
256	filed with the department and the personnel officer of the
257	employer within 90 days of such appointment. Any eligible
258	employee who fails to make an election to participate in the
259	existing system, the Special Risk Class of the Florida
260	Retirement System, the Special Risk Administrative Support Class
261	of the Florida Retirement System, or the optional annuity
262	program shall be deemed to have elected membership in the Senior
263	Management Service Class.
264	4.  Except as provided in subparagraph 5., an employee's
265	election to participate in the optional annuity program is
266	irrevocable as long as such employee continues to be employed in
267	an eligible position and continues to meet the eligibility
268	requirements set forth in this paragraph.
269	5.  Effective from July 1, 2002, through September 30,
270	2002, any active employee in a regularly established position
271	who has elected to participate in the Senior Management Service
272	Optional Annuity Program has one opportunity to choose to move
273	from the Senior Management Service Optional Annuity Program to
274	the Florida Retirement System defined benefit program.
275	a.  The election must be made in writing and must be filed
276	with the department and the personnel officer of the employer
277	before October 1, 2002, or, in the case of an active employee
278	who is on a leave of absence on July 1, 2002, within 90 days
279	after the conclusion of the leave of absence. This election is
280	irrevocable.
281	b.  The employee will receive service credit under the
282	defined benefit program of the Florida Retirement System equal
283	to his or her years of service under the Senior Management
284	Service Optional Annuity Program. The cost for such credit shall
285	be an amount representing the present value of that employee's
286	accumulated benefit obligation for the affected period of
287	service.
288	c.  The employee must transfer the total accumulated
289	employer contributions and earnings on deposit in his or her
290	Senior Management Service Optional Annuity Program account. If
291	the transferred amount is not sufficient to pay the amount due,
292	the employee must pay a sum representing the remainder of the
293	amount due. In no case may the employee retain any employer
294	contributions or earnings thereon from the Senior Management
295	Service Optional Annuity Program account.
296	6.  Any retiree of a state-administered retirement system
297	who is initially reemployed on or after January 1, 2009, shall
298	not be eligible for renewed membership in the Senior Management
299	Service Optional Annuity Program.
300	Section 22.  Effective January 1, 2009, subsection (9),
301	subsection (13), and subsection (14) of section 121.091, Florida
302	Statutes, are amended to read:
303	121.091  Benefits payable under the system.--Benefits may
304	not be paid under this section unless the member has terminated
305	employment as provided in s. 121.021(39)(a) or begun
306	participation in the Deferred Retirement Option Program as
307	provided in subsection (13), and a proper application has been
308	filed in the manner prescribed by the department. The department
309	may cancel an application for retirement benefits when the
310	member or beneficiary fails to timely provide the information
311	and documents required by this chapter and the department's
312	rules. The department shall adopt rules establishing procedures
313	for application for retirement benefits and for the cancellation
314	of such application when the required information or documents
315	are not received.
316	(9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
317	(a)  Any person who is retired under this chapter, except
318	under the disability retirement provisions of subsection (4),
319	may be employed by an employer that does not participate in a
320	state-administered retirement system and may receive
321	compensation from that employment without limiting or
322	restricting in any way the retirement benefits payable to that
323	person.
324	(b)1.a.  Any person who is retired under this chapter,
325	except under the disability retirement provisions of subsection
326	(4), may be reemployed by any private or public employer after
327	retirement and receive retirement benefits and compensation from
328	the his or her employer without limitation any limitations,
329	except that the a person may not receive both a salary from
330	reemployment with any agency participating in the Florida
331	Retirement System and retirement benefits under this chapter for
332	a period of 12 calendar months immediately after subsequent to
333	the calendar month that termination is met as defined in s.
334	121.021(39), except as provided in b. date of retirement.
335	However, a DROP participant may shall continue employment and
336	receive a salary during the period of participation in DROP the
337	Deferred Retirement Option Program, as provided in subsection
338	(13).
339	b.  Any person who is retired under a state-administered
340	retirement system may not receive a retirement benefit if he or
341	she receives compensation totaling $100,000 or more from an
342	employer participating in the Florida Retirement System. This
343	limitation begins immediately upon employment if the annualized
344	compensation meets or exceeds the limit, or in the month that
345	reported compensation meets or exceeds the limit during the plan
346	year, and continues for as long as the expected payments equal
347	or exceed $100,000. This limitation includes payments as defined
348	in s. 121.021(22) for work performed in regularly established
349	positions. The employer is responsible for notifying the
350	Division of Retirement when this occurs, either at employment or
351	if salary increases lead to the level specified. Any person
352	employed in violation of this sub-subparagraph and any employing
353	agency that knowingly employs or appoints such person without
354	notifying the Division of Retirement to suspend retirement
355	benefits shall be jointly and severally liable for reimbursement
356	to the retirement trust fund of any benefits paid during the
357	reemployment limitation period.
358	2.  Any person to whom the limitation in subparagraph 1.
359	applies who violates such reemployment limitation and who is
360	reemployed with any agency participating in the Florida
361	Retirement System after he or she has been retired and met the
362	definition of termination in s. 121.021(39), but before
363	completion of the 12-month limitation period must shall give
364	timely notice of this fact in writing to the employer and to the
365	Division of Retirement division and shall have his or her
366	retirement benefits suspended while employed during for the
367	balance of the 12-month limitation period unless the person
368	exceeds the 780-hour limitation in subparagraph 4. or
369	subparagraph 5. Any person employed in violation of this
370	paragraph and any employing agency that which knowingly employs
371	or appoints such person without notifying the division of
372	Retirement to suspend retirement benefits are shall be jointly
373	and severally liable for reimbursement to the retirement trust
374	fund of any benefits paid during the reemployment limitation
375	period. To avoid liability, the such employing agency must shall
376	have a written statement from the retiree that he or she is not
377	retired from a state-administered retirement system. Any
378	retirement benefits received while reemployed during this
379	reemployment limitation period must shall be repaid to the
380	Florida Retirement System Trust Fund retirement trust fund, and
381	retirement benefits shall remain suspended until such repayment
382	has been made. Benefits suspended beyond the reemployment
383	limitation shall apply toward repayment of benefits received in
384	violation of the reemployment limitation.
385	3.  A district school board may reemploy a retired member
386	as a substitute or hourly teacher, education paraprofessional,
387	transportation assistant, bus driver, or food service worker on
388	a noncontractual basis after he or she has been retired and met
389	the definition of termination for 1 calendar month, in
390	accordance with s. 121.021(39). A district school board may
391	reemploy a retired member as instructional personnel, as defined
392	in s. 1012.01(2)(a), on an annual contractual basis after he or
393	she has been retired and met the definition of termination for 1
394	calendar month, in accordance with s. 121.021(39). Any other
395	retired member who is reemployed before meeting the definition
396	of termination voids within 1 calendar month after retirement
397	shall void his or her application for retirement benefits.
398	District school boards reemploying such teachers, education
399	paraprofessionals, transportation assistants, bus drivers, or
400	food service workers are subject to the retirement contribution
401	required by subparagraph 7.
402	4.  A community college board of trustees may reemploy a
403	retired member as an adjunct instructor, that is, an instructor
404	who is noncontractual and part-time, or as a participant in a
405	phased retirement program within the Florida Community College
406	System, after he or she has been retired and met the definition
407	of termination for 1 calendar month, in accordance with s.
408	121.021(39). Any retired member who is reemployed before meeting
409	the definition of termination voids within 1 calendar month
410	after retirement shall void his or her application for
411	retirement benefits. Boards of trustees reemploying such
412	instructors are subject to the retirement contribution required
413	in subparagraph 7. A retired member may be reemployed as an
414	adjunct instructor for no more than 780 hours during the first
415	12 calendar months after meeting the definition of termination
416	of retirement. Any retired member reemployed for more than 780
417	hours during the first 12 months of retirement must shall give
418	timely notice in writing to the employer and to the Division of
419	Retirement division of the date he or she will exceed the
420	limitation. The division shall suspend his or her retirement
421	benefits for the remainder of the 12-month limitation period
422	first 12 months of retirement. Any person employed in violation
423	of this subparagraph and any employing agency that which
424	knowingly employs or appoints such person without notifying the
425	division of Retirement to suspend retirement benefits are shall
426	be jointly and severally liable for reimbursement to the
427	retirement trust fund of any benefits paid during the
428	reemployment limitation period. To avoid liability, the such
429	employing agency must shall have a written statement from the
430	retiree that he or she is not retired from a state-administered
431	retirement system. Any retirement benefits received by a retired
432	member while reemployed in excess of 780 hours during the 12-
433	month limitation period must first 12 months of retirement shall
434	be repaid to the Florida Retirement System Trust Fund, and
435	retirement benefits shall remain suspended until repayment is
436	made. Benefits suspended beyond the end of the 12-month
437	limitation period retired member's first 12 months of retirement
438	shall apply toward repayment of benefits received in violation
439	of the 780-hour reemployment limitation.
440	5.  The State University System may reemploy a retired
441	member as an adjunct faculty member or as a participant in a
442	phased retirement program within the State University System
443	after the retired member has met the definition of termination
444	been retired for 1 calendar month, in accordance with s.
445	121.021(39). Any retired member who is reemployed before meeting
446	the definition of termination voids within 1 calendar month
447	after retirement shall void his or her application for
448	retirement benefits. The State University System is subject to
449	the retired contribution required in subparagraph 7., as
450	appropriate. A retired member may be reemployed as an adjunct
451	faculty member or a participant in a phased retirement program
452	for no more than 780 hours during the first 12 calendar months
453	after meeting the definition of termination of his or her
454	retirement. Any retired member reemployed for more than 780
455	hours during the 12-month limitation period first 12 months of
456	retirement shall give timely notice in writing to the employer
457	and to the Division of Retirement division of the date he or she
458	will exceed the limitation. The division shall suspend his or
459	her retirement benefits for the remainder of the 12-month
460	limitation period first 12 months of retirement. Any person
461	employed in violation of this subparagraph and any employing
462	agency that which knowingly employs or appoints such person
463	without notifying the division Division of Retirement to suspend
464	retirement benefits are shall be jointly and severally liable
465	for reimbursement to the retirement trust fund of any benefits
466	paid during the reemployment limitation period. To avoid
467	liability, such employing agency must shall have a written
468	statement from the retiree that he or she is not retired from a
469	state-administered retirement system. Any retirement benefits
470	received by a retired member while reemployed in excess of 780
471	hours during the first 12 months of retirement must shall be
472	repaid to the Florida Retirement System Trust Fund, and
473	retirement benefits shall remain suspended until repayment is
474	made. Benefits suspended beyond the end of the retired member's
475	12-month limitation period first 12 months of retirement shall
476	apply toward repayment of benefits received in violation of the
477	780-hour reemployment limitation.
478	6.  The Board of Trustees of the Florida School for the
479	Deaf and the Blind may reemploy a retired member as a substitute
480	teacher, substitute residential instructor, or substitute nurse
481	on a noncontractual basis after he or she has met the definition
482	of termination been retired for 1 calendar month, in accordance
483	with s. 121.021(39). The Board of Trustees of the Florida School
484	for the Deaf and the Blind may reemploy a retired member as
485	instructional personnel, as defined in s. 1012.01(2)(a), on an
486	annual contractual basis after he or she has been retired and
487	met the definition of termination in s. 121.021(39). Any retired
488	member who is reemployed before meeting the definition of
489	termination voids within 1 calendar month after retirement shall
490	void his or her application for retirement benefits. The Board
491	of Trustees of the Florida School for the Deaf and the Blind
492	reemploying such teachers, residential instructors, or nurses is
493	subject to the retirement contribution required by subparagraph
494	7. Reemployment of a retired member as a substitute teacher,
495	substitute residential instructor, or substitute nurse is
496	limited to 780 hours during the first 12 months of his or her
497	retirement. Any retired member reemployed for more than 780
498	hours during the first 12 months of retirement shall give timely
499	notice in writing to the employer and to the division of the
500	date he or she will exceed the limitation. The division shall
501	suspend his or her retirement benefits for the remainder of the
502	first 12 months of retirement. Any person employed in violation
503	of this subparagraph and any employing agency which knowingly
504	employs or appoints such person without notifying the Division
505	of Retirement to suspend retirement benefits shall be jointly
506	and severally liable for reimbursement to the retirement trust
507	fund of any benefits paid during the reemployment limitation
508	period. To avoid liability, such employing agency shall have a
509	written statement from the retiree that he or she is not retired
510	from a state-administered retirement system. Any retirement
511	benefits received by a retired member while reemployed in excess
512	of 780 hours during the first 12 months of retirement shall be
513	repaid to the Retirement System Trust Fund, and his or her
514	retirement benefits shall remain suspended until payment is
515	made. Benefits suspended beyond the end of the retired member's
516	first 12 months of retirement shall apply toward repayment of
517	benefits received in violation of the 780-hour reemployment
518	limitation.
519	7.a.  The employment by an employer of a any retiree or
520	DROP participant of any state-administered retirement system
521	does not affect shall have no effect on the average final
522	compensation or years of creditable service of the retiree or
523	DROP participant.
524	b.  Prior to July 1, 1991 and for initial enrollment as a
525	renewed member through December 31, 2008, upon employment of any
526	person, other than an elected officer as provided in s. 121.053,
527	who is has been retired under a any state-administered
528	retirement program, the employer shall pay retirement
529	contributions in an amount equal to the unfunded actuarial
530	liability portion of the employer contribution which would be
531	required for regular members of the Florida Retirement System.
532	Effective July 1, 1991, contributions shall be made as provided
533	in s. 121.122 for retirees who have with renewed membership or,
534	as provided in subsection (13) for with respect to DROP
535	participants.
536	c.  Any person who is retired under a state-administered
537	retirement program and who is initially reemployed on or after
538	January 1, 2009, will not renew membership in the Florida
539	Retirement System. The employer shall pay retirement
540	contributions in an amount equal to the unfunded actuarial
541	liability portion of the employer contribution that would be
542	required for active members of the Florida Retirement System in
543	addition to the contributions required by s. 121.76.
544	8.a.  Any person who has previously retired and who is
545	holding an elective public office or an appointment to an
546	elective public office initially eligible for the Elected
547	Officers' Class on or after July 1, 1990 through December 31,
548	2008, shall be enrolled in the Florida Retirement System as
549	provided in s. 121.053(1)(b) or, if holding an elective public
550	office that does not qualify for the Elected Officers' Class on
551	or after July 1, 1991 through December 31, 2008, shall be
552	enrolled in the Florida Retirement System as provided in s.
553	121.122, and shall continue to receive retirement benefits as
554	well as compensation for the elected officer's service for as
555	long as he or she remains in elective office. However, any
556	retired member who served in an elective office prior to July 1,
557	1990, suspended his or her retirement benefit, and had his or
558	her Florida Retirement System membership reinstated shall, upon
559	retirement from such office, have his or her retirement benefit
560	recalculated to include the additional service and compensation
561	earned.
562	b.  Any person who has retired and who is holding an
563	elective public office or an appointment to an elective public
564	office initially eligible for the Elected Officers' Class on or
565	after January 1, 2009, shall not be enrolled in the Florida
566	Retirement System as provided in s. 121.053(1)(b) or, if holding
567	an elective public office that does not qualify for the Elected
568	Officers' Class and is initially eligible on or after January 1,
569	2009, shall not be enrolled in the Florida Retirement System as
570	provided in s. 121.122, and shall not continue to receive
571	retirement benefits during the first 12 calendar months after
572	meeting the definition of termination in s. 121.021(39).
573	9.a.  Any person who is holding an elective public office
574	which is covered by the Florida Retirement System and who is
575	concurrently employed in nonelected covered employment before
576	January 1, 2009, may elect to retire while continuing employment
577	in the elective public office, if provided that he or she
578	terminates shall be required to terminate his or her nonelected
579	covered employment. Any person who exercises this election shall
580	receive his or her retirement benefits in addition to the
581	compensation of the elective office without regard to the time
582	limitations otherwise provided in this subsection. A No person
583	who seeks to exercise the provisions of this subparagraph, as
584	they the same existed prior to May 3, 1984, may not shall be
585	deemed to be retired under those provisions, unless such person
586	is eligible to retire under the provisions of this subparagraph,
587	as amended by chapter 84-11, Laws of Florida.
588	b.  Any person who is holding an elective public office
589	which is covered by the Florida Retirement System and who is
590	concurrently employed in nonelected covered employment on or
591	after January 1, 2009, may not elect to retire while continuing
592	employment in the elective public office.  Such person must meet
593	the definition of termination in s. 121.021(39) and is subject
594	to the limitations provided in this section.
595	10.  The limitations of this paragraph apply to
596	reemployment in any capacity with an "employer" as defined in s.
597	121.021(10), irrespective of the category of funds from which
598	the person is compensated.
599	11.  A developmental research school may reemploy a retired
600	member as a substitute or hourly teacher or an education
601	paraprofessional, as defined in s. 1012.01(2), on a
602	noncontractual basis after he or she has been retired and met
603	the definition of termination in s. 121.021(39). A developmental
604	research school may reemploy a retired member as instructional
605	personnel, as defined in s. 1012.01(2)(a), on an annual
606	contractual basis after he or she has been retired and met the
607	definition of termination in s. 121.021(39). Any other retired
608	member who is reemployed within 12 calendar months after
609	retirement voids his or her application for retirement benefits.
610	A developmental research school that reemploys retired teachers
611	and education paraprofessionals are subject to the retirement
612	contribution required by subparagraph 7.
613	12.  A charter school may reemploy a retired member as a
614	substitute or hourly teacher on a noncontractual basis after he
615	or she has been retired and met the definition of termination in
616	s. 121.021(39). A charter school may reemploy a retired member
617	as instructional personnel, as defined in s. 1012.01(2)(a), on
618	an annual contractual basis after he or she has been retired and
619	met the definition of termination in s. 121.021(39). Any other
620	retired member who is reemployed within 12 calendar months after
621	retirement voids his or her application for retirement benefits.
622	A charter school that reemploys such teachers is subject to the
623	retirement contribution required by subparagraph 7.
624	13.  The reemployment after retirement provisions of this
625	paragraph apply to DROP participants effective upon the end of
626	DROP participation and meeting the definition of termination in
627	s. 121.021(39). An employing agency may reemploy a retired
628	member as a firefighter or paramedic after the retired member
629	has been retired for 1 calendar month, in accordance with s.
630	121.021(39). Any retired member who is reemployed within 1
631	calendar month after retirement shall void his or her
632	application for retirement benefits. The employing agency
633	reemploying such firefighter or paramedic is subject to the
634	retired contribution required in subparagraph 8. Reemployment of
635	a retired firefighter or paramedic is limited to no more than
636	780 hours during the first 12 months of his or her retirement.
637	Any retired member reemployed for more than 780 hours during the
638	first 12 months of retirement shall give timely notice in
639	writing to the employer and to the division of the date he or
640	she will exceed the limitation. The division shall suspend his
641	or her retirement benefits for the remainder of the first 12
642	months of retirement. Any person employed in violation of this
643	subparagraph and any employing agency which knowingly employs or
644	appoints such person without notifying the Division of
645	Retirement to suspend retirement benefits shall be jointly and
646	severally liable for reimbursement to the Retirement System
647	Trust Fund of any benefits paid during the reemployment
648	limitation period. To avoid liability, such employing agency
649	shall have a written statement from the retiree that he or she
650	is not retired from a state-administered retirement system. Any
651	retirement benefits received by a retired member while
652	reemployed in excess of 780 hours during the first 12 months of
653	retirement shall be repaid to the Retirement System Trust Fund,
654	and retirement benefits shall remain suspended until repayment
655	is made. Benefits suspended beyond the end of the retired
656	member's first 12 months of retirement shall apply toward
657	repayment of benefits received in violation of the 780-hour
658	reemployment limitation.
659	(c)  The provisions of this subsection apply to retirees,
660	as defined in s. 121.4501(2)(j), of the Public Employee Optional
661	Retirement Program created in part II, subject to the following
662	conditions:
663	1.  Such retirees may not be reemployed with an employer
664	participating in the Florida Retirement System as provided in
665	paragraph (b) until such person has been retired for 12 3
666	calendar months, unless the participant has reached the normal
667	retirement requirements of the defined benefit plan as provided
668	in s. 121.021(29).
669	2.  Such retiree employed in violation of this subsection
670	and any employing agency that knowingly employs or appoints such
671	person shall be jointly and severally liable for reimbursement
672	of any benefits paid to the retirement trust fund from which the
673	benefits were paid, including the Retirement System Trust Fund
674	and the Public Employee Optional Retirement Program Trust Fund,
675	as appropriate. To avoid liability, such employing agency must
676	have a written statement from the retiree that he or she is not
677	retired from a state-administered retirement system.
678	(13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
679	subject to the provisions of this section, the Deferred
680	Retirement Option Program, hereinafter referred to as the DROP,
681	is a program under which an eligible member of the Florida
682	Retirement System may elect to participate, deferring receipt of
683	retirement benefits while continuing employment with his or her
684	Florida Retirement System employer. The deferred monthly
685	benefits shall accrue in the System Trust Fund on behalf of the
686	participant, plus interest compounded monthly, for the specified
687	period of the DROP participation, as provided in paragraph (c).
688	Upon termination of employment as required in s. 121.021(39)(b),
689	the participant shall receive the total DROP benefits and begin
690	to receive the previously determined normal retirement benefits.
691	Participation in the DROP does not guarantee employment for the
692	specified period of DROP. Participation in the DROP by an
693	eligible member beyond the initial 60-month period as authorized
694	in this subsection shall be on an annual contractual basis for
695	all participants.
696	(a)  Eligibility of member to participate in the DROP.--All
697	active Florida Retirement System members in a regularly
698	established position, and all active members of either the
699	Teachers' Retirement System established in chapter 238 or the
700	State and County Officers' and Employees' Retirement System
701	established in chapter 122, which systems are consolidated
702	within the Florida Retirement System under s. 121.011, are
703	eligible to elect participation in the DROP if provided that:
704	1.  The member is not a renewed member of the Florida
705	Retirement System under s. 121.122, or a member or renewed
706	member of the State Community College System Optional Retirement
707	Program under s. 121.051, the Senior Management Service Optional
708	Annuity Program under s. 121.055, or the optional retirement
709	program for the State University System under s. 121.35.
710	2.  Except as provided in subparagraph 6., election to
711	participate is made within 12 months immediately following the
712	date on which the member first reaches normal retirement date,
713	or, for a member who reaches normal retirement date based on
714	service before he or she reaches age 62, or age 55 for Special
715	Risk Class members, election to participate may be deferred to
716	the 12 months immediately following the date the member attains
717	57, or age 52 for Special Risk Class members. For a member who
718	first reached normal retirement date or the deferred eligibility
719	date described above prior to the effective date of this
720	section, election to participate shall be made within 12 months
721	after the effective date of this section. A member who fails to
722	make an election within the such 12-month limitation period
723	forfeits shall forfeit all rights to participate in the DROP.
724	The member shall advise his or her employer and the division in
725	writing of the date on which the DROP begins shall begin. The
726	Such beginning date may be subsequent to the 12-month election
727	period, but must be within the original 60-month participation
728	or, with respect to members who are instructional personnel
729	employed by the Florida School for the Deaf and the Blind and
730	who have received authorization by the Board of Trustees of the
731	Florida School for the Deaf and the Blind to participate in the
732	DROP beyond 60 months, or who are instructional personnel as
733	defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
734	received authorization by the district school superintendent to
735	participate in the DROP beyond 60 months, the 96-month
736	limitation period as provided in subparagraph (b)1. When
737	establishing eligibility of the member to participate in the
738	DROP for the 60-month or, with respect to members who are
739	instructional personnel employed by the Florida School for the
740	Deaf and the Blind and who have received authorization by the
741	Board of Trustees of the Florida School for the Deaf and the
742	Blind to participate in the DROP beyond 60 months, or who are
743	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
744	grades K-12 and who have received authorization by the district
745	school superintendent to participate in the DROP beyond 60
746	months, the 96-month maximum participation period, the member
747	may elect to include or exclude any optional service credit
748	purchased by the member from the total service used to establish
749	the normal retirement date. A member who has with dual normal
750	retirement dates is shall be eligible to elect to participate in
751	DROP within 12 months after attaining normal retirement date in
752	either class.
753	3.  The employer of a member electing to participate in the
754	DROP, or employers if dually employed, shall acknowledge in
755	writing to the division the date the member's participation in
756	the DROP begins and the date the member's employment and DROP
757	participation will terminate.
758	4.  Simultaneous employment of a participant by additional
759	Florida Retirement System employers subsequent to the
760	commencement of participation in the DROP is shall be
761	permissible if provided such employers acknowledge in writing a
762	DROP termination date no later than the participant's existing
763	termination date or the maximum participation 60-month
764	limitation period as provided in subparagraph (b)1.
765	5.  A DROP participant may change employers while
766	participating in the DROP, subject to the following:
767	a.  A change of employment must take place without a break
768	in service so that the member receives salary for each month of
769	continuous DROP participation. If a member receives no salary
770	during a month, DROP participation shall cease unless the
771	employer verifies a continuation of the employment relationship
772	for such participant pursuant to s. 121.021(39)(b).
773	b.  Such participant and new employer shall notify the
774	division of the identity of the new employer on forms required
775	by the division as to the identity of the new employer.
776	c.  The new employer shall acknowledge, in writing, the
777	participant's DROP termination date, which may be extended but
778	not beyond the maximum participation original 60-month or, with
779	respect to members who are instructional personnel employed by
780	the Florida School for the Deaf and the Blind and who have
781	received authorization by the Board of Trustees of the Florida
782	School for the Deaf and the Blind to participate in the DROP
783	beyond 60 months, or who are instructional personnel as defined
784	in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
785	authorization by the district school superintendent to
786	participate in the DROP beyond 60 months, the 96-month period
787	provided in subparagraph (b)1., shall acknowledge liability for
788	any additional retirement contributions and interest required if
789	the participant fails to timely terminate employment, and is
790	shall be subject to the adjustment required in sub-subparagraph
791	(c)5.d.
792	6.  Effective July 1, 2001, for instructional personnel as
793	defined in s. 1012.01(2), election to participate in the DROP
794	may shall be made at any time following the date on which the
795	member first reaches normal retirement date. The member shall
796	advise his or her employer and the division in writing of the
797	date on which DROP begins the Deferred Retirement Option Program
798	shall begin. When establishing eligibility of the member to
799	participate in the DROP for the 60-month or, with respect to
800	members who are instructional personnel employed by the Florida
801	School for the Deaf and the Blind and who have received
802	authorization by the Board of Trustees of the Florida School for
803	the Deaf and the Blind to participate in the DROP beyond 60
804	months, or who are instructional personnel as defined in s.
805	1012.01(2)(a)-(d) in grades K-12 and who have received
806	authorization by the district school superintendent to
807	participate in the DROP beyond 60 months, the 96-month maximum
808	participation period, as provided in subparagraph (b)1., the
809	member may elect to include or exclude any optional service
810	credit purchased by the member from the total service used to
811	establish the normal retirement date. A member who has with dual
812	normal retirement dates is shall be eligible to elect to
813	participate in either class.
814	(b)  Participation in the DROP.--
815	1.a.  An eligible member may elect to participate in the
816	DROP for a period not to exceed a maximum of 60 calendar months
817	or, except as provided in subparagraph b.
818	b.  Members with respect to members who are instructional
819	personnel employed by the Florida School for the Deaf and the
820	Blind and who are authorized have received authorization by the
821	Board of Trustees of the Florida School for the Deaf and the
822	Blind to participate in the DROP beyond 60 months, or who are
823	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
824	grades K-12 and who are authorized have received authorization
825	by the district school superintendent to participate in the DROP
826	beyond 60 calendar months, or who are instructional personnel as
827	defined in s. 1012.01(2)(a)-(d) employed by a developmental
828	research school and who are authorized by the school's director,
829	or if the school has no director, by the school's principal, to
830	participate in DROP beyond the original 60-month period, for up
831	to 36 96 calendar months immediately following the DROP
832	termination date selected for participation in sub-subparagraph
833	a. date on which the member first reaches his or her normal
834	retirement date or the date to which he or she is eligible to
835	defer his or her election to participate as provided in
836	subparagraph (a)2. However, a member who has reached normal
837	retirement date prior to the effective date of the DROP shall be
838	eligible to participate in the DROP for a period of time not to
839	exceed 60 calendar months or, with respect to members who are
840	instructional personnel employed by the Florida School for the
841	Deaf and the Blind and who have received authorization by the
842	Board of Trustees of the Florida School for the Deaf and the
843	Blind to participate in the DROP beyond 60 months, or who are
844	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
845	grades K-12 and who have received authorization by the district
846	school superintendent to participate in the DROP beyond 60
847	calendar months, 96 calendar months immediately following the
848	effective date of the DROP, except a member of the Special Risk
849	Class who has reached normal retirement date prior to the
850	effective date of the DROP and whose total accrued value exceeds
851	75 percent of average final compensation as of his or her
852	effective date of retirement shall be eligible to participate in
853	the DROP for no more than 36 calendar months immediately
854	following the effective date of the DROP.
855	2.  Upon deciding to participate in the DROP, the member
856	shall 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
859	dates, which satisfy the limitations stated in paragraph (a) and
860	subparagraph 1. The Such termination date must shall be in a
861	binding letter of resignation to with the employer, establishing
862	a deferred termination date. The member may change the
863	termination date within the limitations of subparagraph 1., but
864	only with the written approval of the his or her employer;
865	c.  A properly completed DROP application for service
866	retirement 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
869	Florida Retirement System for all purposes, except for paragraph
870	(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
871	and 121.122. DROP participation is final and cannot be canceled
872	by the participant after the first payment is credited during
873	the DROP participation period. However, participation in the
874	DROP does not alter the participant's employment status and the
875	member is such employee shall not be deemed retired from
876	employment until his or her deferred resignation is effective
877	and termination occurs as provided in s. 121.021(39).
878	4.  Elected officers are shall be eligible to participate
879	in the DROP subject to the following:
880	a.  An elected officer who reaches normal retirement date
881	during a term of office may defer the election to participate in
882	the DROP until the next succeeding term in that office. An Such
883	elected officer who exercises this option may participate in the
884	DROP for up to 60 calendar months or a period of no longer than
885	the such succeeding term of office, whichever is less.
886	b.  An elected or a nonelected participant may run for a
887	term of office while participating in DROP and, if elected,
888	extend the DROP termination date accordingly, except, however,
889	if such additional term of office exceeds the 60-month
890	limitation established in subparagraph 1., and the officer does
891	not resign from office within such 60-month limitation, the
892	retirement and the participant's DROP is shall be null and void
893	as provided in sub-subparagraph (c)5.d.
894	c.(I)  For DROP participation ending before January 1,
895	2009, an elected officer who is dually employed and elects to
896	participate in DROP must shall be required to satisfy the
897	definition of termination within the original 60-month period or
898	maximum participation, with respect to members who are
899	instructional personnel employed by the Florida School for the
900	Deaf and the Blind and who have received authorization by the
901	Board of Trustees of the Florida School for the Deaf and the
902	Blind to participate in the DROP beyond 60 months, or who are
903	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
904	grades K-12 and who have received authorization by the district
905	school superintendent to participate in the DROP beyond 60
906	months, the 96-month limitation period as provided in
907	subparagraph 1. for the nonelected position and may continue
908	employment as an elected officer as provided in s. 121.053. The
909	elected officer shall will be enrolled as a renewed member in
910	the Elected Officers' Class or the Regular Class, as provided in
911	ss. 121.053 and 121.122, on the first day of the month after
912	termination of employment in the nonelected position and
913	termination of DROP. Distribution of the DROP benefits shall be
914	made as provided in paragraph (c).
915	(II)  For DROP participation ending on or after January 1,
916	2009, an elected officer who is dually employed and elects to
917	participate in DROP must satisfy the definition of termination
918	in s. 121.021(39) within the original 60-month period or maximum
919	period as provided in subparagraph 1.
920	(c)  Benefits payable under the DROP.--
921	1.  Effective on with the date of DROP participation, the
922	member's initial normal monthly benefit, including creditable
923	service, optional form of payment, and average final
924	compensation, and the effective date of retirement are shall be
925	fixed. The beneficiary established under the Florida Retirement
926	System shall be the beneficiary eligible to receive any DROP
927	benefits payable if the DROP participant dies prior to the
928	completion of the period of DROP participation. If In the event
929	a joint annuitant predeceases the member, the member may name a
930	beneficiary to receive accumulated DROP benefits payable. The
931	Such retirement benefit, the annual cost of living adjustments
932	provided in s. 121.101, and interest shall accrue monthly in the
933	System Trust Fund. The Such interest shall accrue at an
934	effective annual rate of 6.5 percent compounded monthly, on the
935	prior month's accumulated ending balance, up to the month of
936	termination or death.
937	2.  Each employee who elects to participate in the DROP may
938	shall be allowed to elect to receive a lump-sum payment for
939	accrued annual leave earned in accordance with agency policy
940	upon beginning participation in the DROP. The Such accumulated
941	leave payment certified to the division upon commencement of
942	DROP shall be included in the calculation of the member's
943	average final compensation. The employee electing the such lump-
944	sum payment is not upon beginning participation in DROP will not
945	be eligible to receive a second lump-sum payment upon
946	termination, except to the extent the employee has earned
947	additional annual leave which combined with the original payment
948	does not exceed the maximum lump-sum payment allowed by the
949	employing agency's policy or rules. An Such early lump-sum
950	payment shall be based on the hourly wage of the employee at the
951	time he or she begins participation in the DROP. If the member
952	elects to wait and receive such lump-sum payment upon
953	termination of DROP and termination of employment with the
954	employer, any accumulated leave payment made at that time may
955	not cannot be included in the member's retirement benefit, which
956	was determined and fixed by law when the employee elected to
957	participate in the DROP.
958	3.  The effective date of DROP participation and the
959	effective date of retirement of a DROP participant shall be the
960	first day of the month selected by the member to begin
961	participation in the DROP, provided such date is properly
962	established, with the written confirmation of the employer, and
963	the approval of the division, on forms required by the division.
964	4.  Normal retirement benefits and any interest thereon
965	shall continue to accrue in the DROP until the established
966	termination date of the DROP, or until the participant
967	terminates employment or dies prior to such date. Although
968	individual DROP accounts shall not be established, a separate
969	accounting of each participant's accrued benefits under the DROP
970	shall be calculated and provided to participants.
971	5.  At the conclusion of the participant's DROP, the
972	division shall distribute the participant's total accumulated
973	DROP benefits, subject to the following provisions:
974	a.  The division shall receive verification by the
975	participant's employer or employers that the such participant
976	has terminated employment as provided in s. 121.021(39)(b).
977	b.  The terminated DROP participant or, if deceased, the
978	such participant's named beneficiary, shall elect on forms
979	provided by the division to receive payment of the DROP benefits
980	in accordance with one of the options listed below. If For a
981	participant or beneficiary who fails to elect a method of
982	payment within 60 days of termination of the DROP, the division
983	shall will pay a lump sum as provided in sub-sub-subparagraph
984	(I).
985	(I)  Lump sum.--All accrued DROP benefits, plus interest,
986	less withholding taxes remitted to the Internal Revenue Service,
987	shall be paid to the DROP participant or surviving beneficiary.
988	(II)  Direct rollover.--All accrued DROP benefits, plus
989	interest, shall be paid from the DROP directly to the custodian
990	of an eligible retirement plan as defined in s. 402(c)(8)(B) of
991	the Internal Revenue Code. However, in the case of an eligible
992	rollover distribution to the surviving spouse of a deceased
993	participant, an eligible retirement plan is an individual
994	retirement account or an individual retirement annuity as
995	described in s. 402(c)(9) of the Internal Revenue Code.
996	(III)  Partial lump sum.--A portion of the accrued DROP
997	benefits shall be paid to the DROP participant or surviving
998	spouse, less withholding taxes remitted to the Internal Revenue
999	Service, and the remaining DROP benefits shall be transferred
1000	directly to the custodian of an eligible retirement plan as
1001	defined in s. 402(c)(8)(B) of the Internal Revenue Code.
1002	However, in the case of an eligible rollover distribution to the
1003	surviving spouse of a deceased participant, an eligible
1004	retirement plan is an individual retirement account or an
1005	individual retirement annuity as described in s. 402(c)(9) of
1006	the Internal Revenue Code. The proportions shall be specified by
1007	the DROP participant or surviving beneficiary.
1008	c.  The form of payment selected by the DROP participant or
1009	surviving beneficiary must comply complies with the minimum
1010	distribution requirements of the Internal Revenue Code.
1011	d.  A DROP participant who fails to terminate employment as
1012	defined in s. 121.021(39)(b) shall be deemed not to be retired,
1013	and the DROP election is shall be null and void. Florida
1014	Retirement System membership shall be reestablished
1015	retroactively to the date of the commencement of the DROP, and
1016	each employer with whom the participant continues employment
1017	must shall be required to pay to the Florida Retirement System
1018	Trust Fund the difference between the DROP contributions paid in
1019	paragraph (i) and the contributions required for the applicable
1020	Florida Retirement System class of membership during the period
1021	the member participated in the DROP, plus 6.5 percent interest
1022	compounded annually.
1023	6.  The retirement benefits of any DROP participant who
1024	meets the definition of termination in s. 121.021(39)(b), but is
1025	in violation of the reemployment provisions as provided in
1026	subsection (9), shall be suspended during those months in which
1027	the member is in violation. Any member employed in violation of
1028	this subparagraph and any employing agency that knowingly
1029	employs or appoints such member without notifying the Division
1030	of Retirement to suspend retirement benefits are jointly and
1031	severally liable for any benefits paid during the reemployment
1032	limitation period. To avoid liability, the employing agency must
1033	have a written statement from the retiree that he or she is not
1034	retired from a state-administered retirement system. Any
1035	retirement benefits received by a retired member while employed
1036	in violation of the reemployment limitations during the first 12
1037	months after meeting termination must be repaid to the Florida
1038	Retirement System Trust Fund, and his or her retirement benefits
1039	shall remain suspended until payment is made. Benefits suspended
1040	beyond the end of the retired member's first 12 calendar months
1041	after meeting the definition of termination in s. 121.021(39)(b)
1042	shall apply toward repayment of benefits received in violation
1043	of the reemployment limitations.
1044	7.  The accrued benefits of any DROP participant, and any
1045	contributions accumulated under the such program, are shall not
1046	be subject to assignment, execution, attachment, or to any legal
1047	process whatsoever, except for qualified domestic relations
1048	orders by a court of competent jurisdiction, income deduction
1049	orders as provided in s. 61.1301, and federal income tax levies.
1050	8.7.  DROP participants are not shall not be eligible for
1051	disability 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
1054	beneficiary shall be entitled to apply for and receive the
1055	accrued benefits in the DROP as provided in sub-subparagraph
1056	(c)5.b.
1057	2.  The normal retirement benefit accrued to the DROP
1058	during the month of a participant's death shall be the final
1059	monthly benefit credited for such DROP participant.
1060	3.  Eligibility to participate in the DROP terminates upon
1061	death of the participant. If the participant dies on or after
1062	the effective date of enrollment in the DROP, but prior to the
1063	first monthly benefit being credited to the DROP, Florida
1064	Retirement System benefits shall be paid in accordance with
1065	subparagraph (7)(c)1. or subparagraph 2.
1066	4.  A DROP participants' survivors shall not be eligible to
1067	receive Florida Retirement System death benefits as provided in
1068	paragraph (7)(d).
1069	(e)  Cost-of-living adjustment.--On each July 1, the
1070	participants' normal retirement benefit shall be increased as
1071	provided in s. 121.101.
1072	(f)  Retiree health insurance subsidy.--DROP participants
1073	are not eligible to apply for the retiree health insurance
1074	subsidy payments as provided in s. 112.363 until such
1075	participants have terminated employment and participation in the
1076	DROP.
1077	(g)  Renewed membership.--DROP participants must meet the
1078	definition of termination in s. 121.021(39)(b) and must meet
1079	eligibility requirements shall not be eligible for renewed
1080	membership in the Florida Retirement System under ss. 121.053
1081	and 121.122 until termination of employment is effectuated as
1082	provided in s. 121.021(39)(b).
1083	(h)  Employment limitation after DROP participation.--Upon
1084	satisfying the definition of termination of employment as
1085	provided in s. 121.021(39)(b), DROP participants shall be
1086	subject to such reemployment limitations as other retirees.
1087	Reemployment restrictions applicable to retirees as provided in
1088	subsection (9) shall not apply to DROP participants until their
1089	employment and participation in the DROP are terminated.
1090	(i)  Contributions.--
1091	1.  All employers paying the salary of a DROP participant
1092	filling a regularly established position shall contribute 8.0
1093	percent of such participant's gross compensation for the period
1094	of July 1, 2002, through June 30, 2003, and 11.56 percent of
1095	such compensation thereafter, which shall constitute the entire
1096	employer DROP contribution with respect to such participant.
1097	Such contributions, payable to the System Trust Fund in the same
1098	manner as required in s. 121.071, shall be made as appropriate
1099	for each pay period and are in addition to contributions
1100	required for social security and the Retiree Health Insurance
1101	Subsidy Trust Fund. Such employer, social security, and health
1102	insurance subsidy contributions are not included in the DROP.
1103	2.  The employer shall, in addition to subparagraph 1.,
1104	also withhold one-half of the entire social security
1105	contribution required for the participant. Contributions for
1106	social security by each participant and each employer, in the
1107	amount required for social security coverage as now or hereafter
1108	provided by the federal Social Security Act, shall be in
1109	addition to contributions specified in subparagraph 1.
1110	3.  All employers paying the salary of a DROP participant
1111	filling a regularly established position shall contribute the
1112	percent of such participant's gross compensation required in s.
1113	121.071(4), which shall constitute the employer's health
1114	insurance subsidy contribution with respect to such participant.
1115	Such contributions shall be deposited by the administrator in
1116	the Retiree Health Insurance Subsidy Trust Fund.
1117	(j)  Forfeiture of retirement benefits.--Nothing in this
1118	section shall be construed to remove DROP participants from the
1119	scope of s. 8(d), Art. II of the State Constitution, s.
1120	112.3173, and paragraph (5)(f). DROP participants who commit a
1121	specified felony offense while employed will be subject to
1122	forfeiture of all retirement benefits, including DROP benefits,
1123	pursuant to those provisions of law.
1124	(k)  Administration of program.--The division shall make
1125	such rules as are necessary for the effective and efficient
1126	administration of this subsection. The division shall not be
1127	required to advise members of the federal tax consequences of an
1128	election related to the DROP but may advise members to seek
1129	independent advice.
1130	(14)  PAYMENT OF BENEFITS.--This subsection applies to the
1131	payment of benefits to a payee (retiree or beneficiary) under
1132	the Florida Retirement System:
1133	(a)  Federal income tax shall be withheld in accordance
1134	with federal law, unless the payee elects otherwise on Form W-
1135	4P. The division shall prepare and distribute to each recipient
1136	of monthly retirement benefits an appropriate income tax form
1137	that reflects the recipient's income and federal income tax
1138	withheld for the calendar year just ended.
1139	(b)  Subject to approval by the division in accordance with
1140	rule 60S-4.015, Florida Administrative Code, a payee receiving
1141	retirement benefits under the Florida Retirement system may also
1142	have the following payments deducted from his or her monthly
1143	benefit:
1144	1.  Premiums for life and health-related insurance policies
1145	from approved companies.
1146	2.  Life insurance premiums for the State Group Life
1147	Insurance Plan, if authorized in writing by the payee and by the
1148	department of Management Services.
1149	3.  Repayment of overpayments from the Florida Retirement
1150	System Trust Fund, the State Employees' Health Insurance Trust
1151	Fund, or the State Employees' Life Insurance Trust Fund, upon
1152	notification of the payee.
1153	4.  Payments to an alternate payee for alimony or, child
1154	support pursuant to an income deduction order under s. 61.1301,
1155	or division of marital assets pursuant to a qualified domestic
1156	relations order under s. 222.21 or an income deduction order
1157	under s. 61.1301.
1158	5.  Payments to the Internal Revenue Service for federal
1159	income tax levies, upon notification of the division by the
1160	Internal Revenue Service.
1161	(c)  A payee must shall notify the division of any change
1162	in his or her address. The division may suspend benefit payments
1163	to a payee if correspondence sent to the payee's mailing address
1164	is returned due to an incorrect address. Benefit payments shall
1165	be resumed upon notification to the division of the payee's new
1166	address.
1167	(d)  A payee whose retirement benefits are reduced by the
1168	application of maximum benefit limits under s. 415(b) of the
1169	Internal Revenue Code, as specified in s. 121.30(5), shall have
1170	the portion of his or her calculated benefit in the Florida
1171	Retirement System defined benefit plan which exceeds such
1172	federal limitation paid through the Florida Retirement System
1173	Preservation of Benefits Plan, as provided in s. 121.1001.
1174	(e)  The Division of Retirement may issue retirement
1175	benefits payable for division of marital assets pursuant to a
1176	qualified domestic relations order directly to the alternate
1177	payee, any court order to the contrary notwithstanding, in order
1178	to meet Internal Revenue Code requirements.
1179	(f)(e)  A No benefit may not be reduced for the purpose of
1180	preserving the member's eligibility for a federal program.
1181	(g)(f)  The division shall adopt rules establishing
1182	procedures for determining that the persons to whom benefits are
1183	being paid are still living. The division shall suspend the
1184	benefits being paid to any payee if when it is unable to contact
1185	such payee and to confirm that he or she is still living.
1186	Section 23.  Effective January 1, 2009, section 121.093,
1187	Florida Statutes, is repealed.
1188	Section 24.  Effective January 1, 2009, section 121.094,
1189	Florida Statutes, is repealed.
1190	Section 25.  Effective January 1, 2009, section 121.122,
1191	Florida Statutes, is amended to read:
1192	121.122  Renewed membership in system.--
1193	(1)  Any retiree of a state-administered retirement system
1194	who is initially reemployed on or after January 1, 2009, shall
1195	not be eligible for renewed membership.
1196	(2)  Except as provided in s. 121.053, effective July 1,
1197	1991, through December 31, 2008, any retiree of a state-
1198	administered retirement system who is initially reemployed
1199	employed in a regularly established position with a covered
1200	employer shall be enrolled as a compulsory member of the Regular
1201	Class of the Florida Retirement System or, effective July 1,
1202	1997, through December 31, 2008, any retiree of a state-
1203	administered retirement system who is initially reemployed
1204	employed in a position included in the Senior Management Service
1205	Class shall be enrolled as a compulsory member of the Senior
1206	Management Service Class of the Florida Retirement System as
1207	provided in s. 121.055, and shall be entitled to receive an
1208	additional retirement benefit, subject to the following
1209	conditions:
1210	(1)(a)  Such member shall resatisfy the age and service
1211	requirements as provided in this chapter for initial membership
1212	under the system, unless such member elects to participate in
1213	the Senior Management Service Optional Annuity Program in lieu
1214	of the Senior Management Service Class, as provided in s.
1215	121.055(6).
1216	(b)  Such member shall not be entitled to disability
1217	benefits as provided in s. 121.091(4).
1218	(c)  Such member must meet the reemployment after
1219	retirement limitations as provided in s. 121.091(9), as
1220	applicable.
1221	(3)(2)  Upon renewed membership or reemployment of a
1222	retiree, the employer of such member shall pay the applicable
1223	employer contributions as required by ss. 121.71, 121.74,
1224	121.76, and 112.363 121.055(3) and 121.071(1)(a) and (4).
1225	(4)(3)  The retiree of a state-administered retirement
1226	system who is initially reemployed before January 1, 2009, Such
1227	member shall be entitled to purchase additional retirement
1228	credit in the Regular Class or the Senior Management Service
1229	Class, as applicable, for any postretirement service performed
1230	in a regularly established position as follows:
1231	(a)  For regular class service prior to July 1, 1991, by
1232	paying the Regular Class applicable employee and employer
1233	contributions for the period being claimed, plus 4 percent
1234	interest compounded annually from first year of service claimed
1235	until July 1, 1975, and 6.5 percent interest compounded
1236	thereafter, until full payment is made to the Florida Retirement
1237	System Trust Fund; or
1238	(b)  For Senior Management Service Class prior to June 1,
1239	1997, as provided in s. 121.055(1)(j).
1240
1241	The contribution for postretirement service between July 1,
1242	1985, and July 1, 1991, for which the reemployed retiree
1243	contribution was paid, shall be the difference between such
1244	contribution and the total applicable contribution for the
1245	period being claimed, plus interest. The employer of such member
1246	may pay the applicable employer contribution in lieu of the
1247	member. If a member does not wish to claim credit for all of the
1248	postretirement service for which he or she is eligible, the
1249	service the member claims must be the most recent service.
1250	(5)(4)  No creditable service for which credit was
1251	received, or which remained unclaimed, at retirement may be
1252	claimed or applied toward service credit earned following
1253	renewed membership. However, for retirees initially reemployed
1254	before January 1, 2009, service earned as an elected officer
1255	with renewed membership in the Elected Officers' Class may be
1256	used in conjunction with creditable service earned under this
1257	section, provided the applicable vesting requirements and other
1258	existing statutory conditions required by this chapter are met.
1259	(6)(5)  Notwithstanding any other limitations provided in
1260	this section, a participant of the State University System
1261	Optional Retirement Program or the Senior Management Service
1262	Optional Annuity Program who terminated employment and received
1263	a distribution commenced receiving an annuity under the
1264	provisions of the optional program, who initially renews
1265	membership before January 1, 2009, in the Regular Class as
1266	required by this section upon reemployment after retirement, and
1267	who had previously earned creditable Florida Retirement System
1268	service that was not included in any retirement benefit may
1269	include such previous service toward vesting and service credit
1270	in the second career benefit provided under renewed membership.
1271	(7)(6)  Any renewed member who is not receiving the maximum
1272	health insurance subsidy provided in s. 112.363 shall be
1273	entitled to earn additional credit toward the maximum health
1274	insurance subsidy. Any additional subsidy due because of such
1275	additional credit shall be received only at the time of payment
1276	of the second career retirement benefit. In no case shall the
1277	total health insurance subsidy received by a retiree receiving
1278	benefits from initial and renewed membership exceed the maximum
1279	allowed in s. 112.363.
1280	Section 26.  Effective January 1, 2009, paragraph (e) of
1281	subsection (5) of section 121.35, Florida Statutes, is amended
1282	to read:
1283	121.35  Optional retirement program for the State
1284	University System.--
1285	(5)  BENEFITS.--
1286	(e)  A participant who chooses to receive his or her
1287	benefits upon termination of employment as defined in s.
1288	121.021(39) shall have responsibility to notify the provider
1289	company of the date on which he or she wishes benefits funded by
1290	employer contributions to begin. Benefits may be deferred until
1291	such time as the participant chooses to make such application.
1292	Section 27.  Effective January 1, 2009, section 121.45,
1293	Florida Statutes, is repealed.
1294	Section 28.  Effective January 1, 2009, paragraph (f) of
1295	subsection (2) of section 121.4501, Florida Statutes, is amended
1296	to 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
1300	defined in s. 121.021(11), who:
1301	1.  Is a member of, or is eligible for membership in, the
1302	Florida Retirement System, including any renewed member of the
1303	Florida Retirement System initially enrolled before January 1,
1304	2009; or
1305	2.  Participates in, or is eligible to participate in, the
1306	Senior Management Service Optional Annuity Program as
1307	established under s. 121.055(6), the State Community College
1308	Optional Retirement Program as established under s.
1309	121.051(2)(c), or the State University System Optional
1310	Retirement Program established under s. 121.35.
1311
1312	The term does not include any member participating in the
1313	Deferred Retirement Option Program established under s.
1314	121.091(13), a retiree of a state-administered retirement system
1315	initially reemployed on or after January 1, 2009, or a mandatory
1316	participant of the State University System Optional Retirement
1317	Program established under s. 121.35.
1318	Section 29.  Effective January 1, 2009, subsection (1) of
1319	section 121.591, Florida Statutes, is amended to read:
1320	121.591  Benefits payable under the Public Employee
1321	Optional Retirement Program of the Florida Retirement
1322	System.--Benefits may not be paid under this section unless the
1323	member has terminated employment as provided in s.
1324	121.021(39)(a) or is deceased and a proper application has been
1325	filed in the manner prescribed by the state board or the
1326	department. The state board or department, as appropriate, may
1327	cancel an application for retirement benefits when the member or
1328	beneficiary fails to timely provide the information and
1329	documents required by this chapter and the rules of the state
1330	board and department. In accordance with their respective
1331	responsibilities as provided herein, the State Board of
1332	Administration and the Department of Management Services shall
1333	adopt rules establishing procedures for application for
1334	retirement benefits and for the cancellation of such application
1335	when the required information or documents are not received. The
1336	State Board of Administration and the Department of Management
1337	Services, as appropriate, are authorized to cash out a de
1338	minimis account of a participant who has been terminated from
1339	Florida Retirement System covered employment for a minimum of 6
1340	calendar months. A de minimis account is an account containing
1341	employer contributions and accumulated earnings of not more than
1342	$5,000 made under the provisions of this chapter. Such cash-out
1343	must either be a complete lump-sum liquidation of the account
1344	balance, subject to the provisions of the Internal Revenue Code,
1345	or a lump-sum direct rollover distribution paid directly to the
1346	custodian of an eligible retirement plan, as defined by the
1347	Internal Revenue Code, on behalf of the participant. If any
1348	financial instrument issued for the payment of retirement
1349	benefits under this section is not presented for payment within
1350	180 days after the last day of the month in which it was
1351	originally issued, the third-party administrator or other duly
1352	authorized agent of the State Board of Administration shall
1353	cancel the instrument and credit the amount of the instrument to
1354	the suspense account of the Public Employee Optional Retirement
1355	Program Trust Fund authorized under s. 121.4501(6). Any such
1356	amounts transferred to the suspense account are payable upon a
1357	proper application, not to include earnings thereon, as provided
1358	in this section, within 10 years after the last day of the month
1359	in which the instrument was originally issued, after which time
1360	such amounts and any earnings thereon shall be forfeited. Any
1361	such forfeited amounts are assets of the Public Employee
1362	Optional Retirement Program Trust Fund and are not subject to
1363	the provisions of chapter 717.
1364	(1)  NORMAL BENEFITS.--Under the Public Employee Optional
1365	Retirement Program:
1366	(a)  Benefits in the form of vested accumulations as
1367	described in s. 121.4501(6) shall be payable under this
1368	subsection in accordance with the following terms and
1369	conditions:
1370	1.  To the extent vested, benefits shall be payable only to
1371	a participant.
1372	2.  Benefits shall be paid by the third-party administrator
1373	or designated approved providers in accordance with the law, the
1374	contracts, and any applicable board rule or policy.
1375	3.  To receive benefits under this subsection, the
1376	participant must be terminated from all employment with all
1377	Florida Retirement System employers, as provided in s.
1378	121.021(39).
1379	4.  Benefit payments may not be made until the participant
1380	has been terminated for 3 calendar months, except that the board
1381	may authorize by rule for the distribution of up to 10 percent
1382	of the participant's account after being terminated for 1
1383	calendar month if a participant has reached the normal
1384	retirement requirements of the defined benefit plan, as provided
1385	in s. 121.021(29).
1386	5.  If a member or former member of the Florida Retirement
1387	System receives an invalid distribution from the Public Employee
1388	Optional Retirement Program Trust Fund, such person shall repay
1389	the full invalid distribution to the trust fund within 90 days
1390	after receipt of final notification by the State Board of
1391	Administration or the third-party administrator that the
1392	distribution was invalid. If such person fails to repay the full
1393	invalid distribution within 90 days after receipt of final
1394	notification, the person may be deemed retired from the Public
1395	Employee Optional Retirement Program by the state board, as
1396	provided pursuant to s. 121.4501(2)(j), and shall be subject to
1397	the provisions of s. 121.122. If such person is deemed retired
1398	by the state board, any joint and several liability set out in
1399	s. 121.091(9)(c)2. becomes null and void, and the state board,
1400	the Department of Management Services, or the employing agency
1401	is not liable for gains on payroll contributions that have not
1402	been deposited to the person's account in the Public Employee
1403	Optional Retirement Program, pending resolution of the invalid
1404	distribution. The member or former member who has been deemed
1405	retired or who has been determined by the board to have taken an
1406	invalid distribution may appeal the agency decision through the
1407	complaint process as provided under s. 121.4501(9)(f)3. As used
1408	in this subparagraph, the term "invalid distribution" means any
1409	distribution from an account in the Public Employee Optional
1410	Retirement Program which is taken in violation of the provisions
1411	of this section, s. 121.091(9), or s. 121.4501.
1412	(b)  If a participant elects to receive his or her benefits
1413	upon termination of employment as defined in s. 121.021(39), the
1414	participant must submit a written application or an equivalent
1415	form to the third-party administrator indicating his or her
1416	preferred distribution date and selecting an authorized method
1417	of distribution as provided in paragraph (c). The participant
1418	may defer receipt of benefits until he or she chooses to make
1419	such application, subject to federal requirements.
1420	(c)  Upon receipt by the third-party administrator of a
1421	properly executed application for distribution of benefits, the
1422	total accumulated benefit shall be payable to the participant,
1423	as:
1424	1.  A lump-sum distribution to the participant;
1425	2.  A lump-sum direct rollover distribution whereby all
1426	accrued benefits, plus interest and investment earnings, are
1427	paid from the participant's account directly to the custodian of
1428	an eligible retirement plan, as defined in s. 402(c)(8)(B) of
1429	the Internal Revenue Code, on behalf of the participant; or
1430	3.  Periodic distributions, as authorized by the state
1431	board.
1432	Section 30.  Except as otherwise specifically provided in
1433	this act, this act shall take effect July 1, 2008.
1434
1435
1436
1437
1438	-----------------------------------------------------
1439	T I T L E  A M E N D M E N T
1440	Remove line 85 and insert:
1441	of important state interest; amending s. 121.021, F.S.;
1442	redefining the term "termination"; amending s. 121.053,
1443	F.S.; revising provisions relating to participation in the
1444	Elected Officers' Class; amending s. 121.055, F.S.;
1445	revising provisions relating to participation in the
1446	Senior Management Service Class; amending s. 121.091,
1447	F.S.; revising limitations on the payment of retirement
1448	contributions for certain retired persons who are
1449	reemployed by an employer participating in a state-
1450	administered retirement system; deleting a restriction on
1451	the reemployment of certain personnel by the Florida
1452	School for the Deaf and the Blind; prohibiting certain
1453	persons holding public office from electing to retire
1454	while continuing employment in that elected office;
1455	deleting a provision authorizing an employing agency to
1456	reemploy a retired member as a firefighter or paramedic
1457	after a specified period; providing certain limitations
1458	for DROP participants; clarifying that DROP participation
1459	cannot be cancelled; providing for the suspension of DROP
1460	benefits to a participant who is reemployed; authorizing
1461	the Division of Retirement to issue benefits directly to
1462	the alternate payee pursuant to a qualified domestic
1463	relations order; repealing s. 121.093, F.S., authorizing a
1464	developmental research school and the Florida School for
1465	the Deaf and the Blind to reemploy after retirement
1466	instructional personnel; repealing s. 121.094, F.S.,
1467	authorizing charter schools to reemploy after retirement
1468	instructional personnel; reemployment after retirement;
1469	amending s. 121.122, F.S.; providing that certain persons
1470	are ineligible for renewed membership in the Florida
1471	Retirement System; amending s. 121.35, F.S.; providing a
1472	cross-reference; repealing s. 121.45, F.S., relating to
1473	interstate compacts for pension portability; amending s.
1474	121.4501, F.S.; revising the definition of the term
1475	"eligible employee" for purposes of the Public Employee
1476	Optional Retirement Program; amending s. 121.591, F.S.;
1477	providing a cross-reference; providing effective dates.

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