HB 501

1	A bill to be entitled
2	An act relating to Special Risk Class retirement benefits;
3	amending s. 121.091, F.S.; extending the period of time
4	during which certain Special Risk Class members may
5	participate in the Florida Retirement System Deferred
6	Retirement Option Program; providing requirements for
7	extended participation; deleting obsolete provisions;
8	providing legislative findings with respect to the state's
9	interest in protecting the public's safety and welfare by
10	extending retirement benefits for officers and funding
11	increased retirement benefits in an actuarially sound
12	manner; providing an effective date.
13
14	WHEREAS, one of the most fundamental mechanisms for
15	ensuring the safety and welfare of the public is through the
16	state's law enforcement agencies and correctional institutions,
17	and
18	WHEREAS, law enforcement agencies and correctional
19	institutions throughout this state and the nation are
20	experiencing great difficulty in recruiting and retaining well-
21	qualified law enforcement and correctional officers, and
22	WHEREAS, this need is projected to become more critical in
23	the future, and
24	WHEREAS, the most critical need is to recruit and retain
25	line officers who have daily and direct contact with the
26	criminal element, and
27	WHEREAS, because such work is physically demanding or
28	arduous and often requires extraordinary agility and mental
29	acuity that can diminish with age, persons employed in these
30	positions are classified as special risk and able to retire at
31	an earlier age, and
32	WHEREAS, one mechanism for retaining qualified officers is
33	to extend the amount of time that such officers can remain in
34	the Deferred Retirement Option Program (DROP) if such officers
35	can demonstrate that they retain the necessary physical and
36	mental capacity to competently perform their job duties, NOW,
37	THEREFORE,
38
39	Be It Enacted by the Legislature of the State of Florida:
40
41	Section 1.  Paragraphs (a) and (b) of subsection (13) of
42	section 121.091, Florida Statutes, are amended to read:
43	121.091  Benefits payable under the system.--Benefits may
44	not be paid under this section unless the member has terminated
45	employment as provided in s. 121.021(39)(a) or begun
46	participation in the Deferred Retirement Option Program as
47	provided in subsection (13), and a proper application has been
48	filed in the manner prescribed by the department. The department
49	may cancel an application for retirement benefits when the
50	member or beneficiary fails to timely provide the information
51	and documents required by this chapter and the department's
52	rules. The department shall adopt rules establishing procedures
53	for application for retirement benefits and for the cancellation
54	of such application when the required information or documents
55	are not received.
56	(13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
57	subject to the provisions of this section, the Deferred
58	Retirement Option Program, hereinafter referred to as the DROP,
59	is a program under which an eligible member of the Florida
60	Retirement System may elect to participate, deferring receipt of
61	retirement benefits while continuing employment with his or her
62	Florida Retirement System employer. The deferred monthly
63	benefits shall accrue in the System Trust Fund on behalf of the
64	participant, plus interest compounded monthly, for the specified
65	period of the DROP participation, as provided in paragraph (c).
66	Upon termination of employment, the participant shall receive
67	the total DROP benefits and begin to receive the previously
68	determined normal retirement benefits. Participation in the DROP
69	does not guarantee employment for the specified period of DROP.
70	Participation in the DROP by an eligible member beyond the
71	initial 60-month period as authorized in this subsection shall
72	be on an annual contractual basis for all participants.
73	(a)  Eligibility of member to participate in the DROP.--All
74	active Florida Retirement System members in a regularly
75	established position, and all active members of either the
76	Teachers' Retirement System established in chapter 238 or the
77	State and County Officers' and Employees' Retirement System
78	established in chapter 122, which systems are consolidated
79	within the Florida Retirement System under s. 121.011, are
80	eligible to elect participation in the DROP if provided that:
81	1.  The member is not a renewed member of the Florida
82	Retirement System under s. 121.122, or a member of the State
83	Community College System Optional Retirement Program under s.
84	121.051, the Senior Management Service Optional Annuity Program
85	under s. 121.055, or the optional retirement program for the
86	State University System under s. 121.35.
87	2.  Except as provided in subparagraph 6., election to
88	participate is made within 12 months immediately following the
89	date on which the member first reaches normal retirement date,
90	or, for a member who reaches normal retirement date based on
91	service before he or she reaches age 62, or age 55 for Special
92	Risk Class members, election to participate may be deferred to
93	the 12 months immediately following the date the member attains
94	57, or age 52 for Special Risk Class members. For a member who
95	first reached normal retirement date or the deferred eligibility
96	date described above prior to the effective date of this
97	section, election to participate shall be made within 12 months
98	after the effective date of this section. A member who fails to
99	make an election within the such 12-month limitation period
100	forfeits shall forfeit all rights to participate in the DROP.
101	The member shall advise his or her employer and the division in
102	writing of the date on which the DROP shall begin. The Such
103	beginning date may be subsequent to the 12-month election
104	period, but must be within the maximum participation 60-month
105	or, with respect to members who are instructional personnel
106	employed by the Florida School for the Deaf and the Blind and
107	who have received authorization by the Board of Trustees of the
108	Florida School for the Deaf and the Blind to participate in the
109	DROP beyond 60 months, or who are instructional personnel as
110	defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
111	received authorization by the district school superintendent to
112	participate in the DROP beyond 60 months, the 96-month
113	limitation period as provided in subparagraph (b)1. When
114	establishing eligibility of the member to participate in the
115	DROP for the 60-month or, with respect to members who are
116	instructional personnel employed by the Florida School for the
117	Deaf and the Blind and who have received authorization by the
118	Board of Trustees of the Florida School for the Deaf and the
119	Blind to participate in the DROP beyond 60 months, or who are
120	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
121	grades K-12 and who have received authorization by the district
122	school superintendent to participate in the DROP beyond 60
123	months, the 96-month maximum participation period, the member
124	may elect to include or exclude any optional service credit
125	purchased by the member from the total service used to establish
126	the normal retirement date. A member who has with dual normal
127	retirement dates is shall be eligible to elect to participate in
128	DROP within 12 months after attaining normal retirement date in
129	either class.
130	3.  The employer of a member electing to participate in the
131	DROP, or employers if dually employed, shall acknowledge in
132	writing to the division the date the member's participation in
133	the DROP begins and the date the member's employment and DROP
134	participation will terminate.
135	4.  Simultaneous employment of a participant by additional
136	Florida Retirement System employers subsequent to the
137	commencement of participation in the DROP is shall be
138	permissible if provided such employers acknowledge in writing a
139	DROP termination date no later than the participant's existing
140	termination date or the maximum participation 60-month
141	limitation period as provided in subparagraph (b)1.
142	5.  A DROP participant may change employers while
143	participating in the DROP, subject to the following:
144	a.  A change of employment must take place without a break
145	in service so that the member receives salary for each month of
146	continuous DROP participation. If a member receives no salary
147	during a month, DROP participation shall cease unless the
148	employer verifies a continuation of the employment relationship
149	for such participant pursuant to s. 121.021(39)(b).
150	b.  Such participant and new employer shall notify the
151	division of the identity of the new employer on forms required
152	by the division as to the identity of the new employer.
153	c.  The new employer shall acknowledge, in writing, the
154	participant's DROP termination date, which may be extended but
155	not beyond the maximum participation original 60-month or, with
156	respect to members who are instructional personnel employed by
157	the Florida School for the Deaf and the Blind and who have
158	received authorization by the Board of Trustees of the Florida
159	School for the Deaf and the Blind to participate in the DROP
160	beyond 60 months, or who are instructional personnel as defined
161	in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
162	authorization by the district school superintendent to
163	participate in the DROP beyond 60 months, the 96-month period
164	provided in subparagraph (b)1., shall acknowledge liability for
165	any additional retirement contributions and interest required if
166	the participant fails to timely terminate employment, and shall
167	be subject to the adjustment required in sub-subparagraph
168	(c)5.d.
169	6.  Effective July 1, 2001, for instructional personnel as
170	defined in s. 1012.01 s. 1012.01(2), election to participate in
171	the DROP may shall be made at any time following the date on
172	which the member first reaches normal retirement date. The
173	member shall advise his or her employer and the division in
174	writing of the date on which DROP the Deferred Retirement Option
175	Program shall begin. When establishing eligibility of the member
176	to participate in the DROP for the 60-month or, with respect to
177	members who are instructional personnel employed by the Florida
178	School for the Deaf and the Blind and who have received
179	authorization by the Board of Trustees of the Florida School for
180	the Deaf and the Blind to participate in the DROP beyond 60
181	months, or who are instructional personnel as defined in s.
182	1012.01(2)(a)-(d) in grades K-12 and who have received
183	authorization by the district school superintendent to
184	participate in the DROP beyond 60 months, the 96-month maximum
185	participation period, as provided in subparagraph (b)1., the
186	member may elect to include or exclude any optional service
187	credit purchased by the member from the total service used to
188	establish the normal retirement date. A member who has with dual
189	normal retirement dates is shall be eligible to elect to
190	participate in either class.
191	(b)  Participation in the DROP.--
192	1.  Subject to the following exceptions, an eligible member
193	may elect to participate in the DROP for a period not to exceed
194	a maximum of 60 calendar months. or, with respect to
195	a.  Eligible members who are instructional personnel
196	employed by the Florida School for the Deaf and the Blind and
197	who have received authorization by the Board of Trustees of the
198	Florida School for the Deaf and the Blind to participate in the
199	DROP beyond 60 months, or who are instructional personnel as
200	defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
201	received authorization by the district school superintendent to
202	participate in the DROP beyond 60 calendar months, may elect to
203	participate for a period up to 96 calendar months immediately
204	following the date on which the member first reaches his or her
205	normal retirement date or the date to which he or she is
206	eligible to defer his or her election to participate as provided
207	in subparagraph (a)2. However, a member who has reached normal
208	retirement date prior to the effective date of the DROP shall be
209	eligible to participate in the DROP for a period of time not to
210	exceed 60 calendar months or, with respect to members who are
211	instructional personnel employed by the Florida School for the
212	Deaf and the Blind and who have received authorization by the
213	Board of Trustees of the Florida School for the Deaf and the
214	Blind to participate in the DROP beyond 60 months, or who are
215	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
216	grades K-12 and who have received authorization by the district
217	school superintendent to participate in the DROP beyond 60
218	calendar months, 96 calendar months immediately following the
219	effective date of the DROP, except a member of the Special Risk
220	Class who has reached normal retirement date prior to the
221	effective date of the DROP and whose total accrued value exceeds
222	75 percent of average final compensation as of his or her
223	effective date of retirement shall be eligible to participate in
224	the DROP for no more than 36 calendar months immediately
225	following the effective date of the DROP.
226	b.  Special Risk Class members who are employed as law
227	enforcement officers, correctional officers, or community-based
228	correctional probation officers, as described in s. 121.0515(2),
229	having a rank or the equivalent rank of captain or below, and
230	who are currently participating in DROP for up to 60 months may
231	elect to participate for an additional 36 calendar months.
232	However, in order to participate the member must, before
233	beginning the additional 36 months, pass the same physical
234	examination required for new officers under s. 943.13(6) and
235	provide an accompanying statement from the officer's examining
236	physician, physician assistant, or certified advanced registered
237	nurse practitioner that the officer is capable of performing the
238	essential functions of his or her duties as a law enforcement
239	officer, correctional officer, or probation officer.
240	2.  Upon deciding to participate in the DROP, the member
241	shall submit, on forms required by the division:
242	a.  A written election to participate in the DROP;
243	b.  Selection of the DROP participation and termination
244	dates, which satisfy the limitations stated in paragraph (a) and
245	subparagraph 1. The Such termination date must shall be in a
246	binding letter of resignation to with the employer, establishing
247	a deferred termination date. The member may change the
248	termination date within the limitations of subparagraph 1., but
249	only with the written approval of the his or her employer;
250	c.  A properly completed DROP application for service
251	retirement as provided in this section; and
252	d.  Any other information required by the division.
253	3.  The DROP participant shall be a retiree under the
254	Florida Retirement System for all purposes, except for paragraph
255	(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
256	and 121.122. However, participation in the DROP does not alter
257	the participant's employment status and the member is such
258	employee shall not be deemed retired from employment until his
259	or her deferred resignation is effective and termination occurs
260	as provided in s. 121.021(39).
261	4.  Elected officers are shall be eligible to participate
262	in the DROP subject to the following:
263	a.  An elected officer who reaches normal retirement date
264	during a term of office may defer the election to participate in
265	the DROP until the next succeeding term in that office. An Such
266	elected officer who exercises this option may participate in the
267	DROP for up to 60 calendar months or for a period of no longer
268	than the such succeeding term of office, whichever is less.
269	b.  An elected or a nonelected participant may run for a
270	term of office while participating in DROP and, if elected,
271	extend the DROP termination date accordingly, except that,
272	however, if such additional term of office exceeds the 60-month
273	limitation established in subparagraph 1., and the officer does
274	not resign from office within such 60-month limitation, the
275	retirement and the participant's DROP shall be null and void as
276	provided in sub-subparagraph (c)5.d.
277	c.  An elected officer who is dually employed and elects to
278	participate in DROP must shall be required to satisfy the
279	definition of termination within the maximum participation 60-
280	month or, with respect to members who are instructional
281	personnel employed by the Florida School for the Deaf and the
282	Blind and who have received authorization by the Board of
283	Trustees of the Florida School for the Deaf and the Blind to
284	participate in the DROP beyond 60 months, or who are
285	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
286	grades K-12 and who have received authorization by the district
287	school superintendent to participate in the DROP beyond 60
288	months, the 96-month limitation period as provided in
289	subparagraph 1. for the nonelected position and may continue
290	employment as an elected officer as provided in s. 121.053. The
291	elected officer shall will be enrolled as a renewed member in
292	the Elected Officers' Class or the Regular Class, as provided in
293	ss. 121.053 and 121.122, on the first day of the month after
294	termination of employment in the nonelected position and
295	termination of DROP. Distribution of the DROP benefits shall be
296	made as provided in paragraph (c).
297	Section 2.  The Legislature finds and declares that
298	ensuring the availability of experienced law enforcement,
299	correctional, and probation officers to protect the safety and
300	welfare of the public is an important state interest. Providing
301	such officers who are members of the Florida Retirement System
302	with an opportunity to extend their employment as law
303	enforcement officers, correctional officers, or probation
304	officers by increasing the maximum participation period in the
305	Deferred Retirement Option Program will help serve that
306	interest. Funding for such retirement benefits must be made,
307	administered, and funded in an actuarially sound manner as
308	required by s. 14, Art. X of the State Constitution and part VII
309	of chapter 112, Florida Statutes.
310	Section 3.  This act shall take effect July 1, 2008.

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