CS/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.; prohibiting certain members of
4	the Special Risk Class from being reemployed or
5	contracting with the same employing agency from which the
6	member retired; extending the period of time during which
7	certain Special Risk Class members may participate in the
8	Florida Retirement System Deferred Retirement Option
9	program; providing requirements for extended
10	participation; deleting obsolete provisions; providing
11	legislative findings with respect to the state's interest
12	in protecting the public's safety and welfare by extending
13	retirement benefits for officers and funding increased
14	retirement benefits in an actuarially sound manner;
15	providing an effective date.
16
17	WHEREAS, one of the most fundamental mechanisms for
18	ensuring the safety and welfare of the public is through the
19	state's law enforcement agencies and correctional institutions,
20	and
21	WHEREAS, law enforcement agencies and correctional
22	institutions throughout this state and the nation are
23	experiencing great difficulty in recruiting and retaining well-
24	qualified law enforcement and correctional officers, and
25	WHEREAS, this need is projected to become more critical in
26	the future, and
27	WHEREAS, the most critical need is to recruit and retain
28	line officers who have daily and direct contact with the
29	criminal element, and
30	WHEREAS, because such work is physically demanding or
31	arduous and often requires extraordinary agility and mental
32	acuity that can diminish with age, persons employed in these
33	positions are classified as special risk and able to retire at
34	an earlier age, and
35	WHEREAS, one mechanism for retaining qualified officers is
36	to extend the amount of time that such officers can remain in
37	the Deferred Retirement Option Program (DROP) if such officers
38	can demonstrate that they retain the necessary physical and
39	mental capacity to competently perform their job duties, NOW,
40	THEREFORE,
41
42	Be It Enacted by the Legislature of the State of Florida:
43
44	Section 1.  Paragraph (d) is added to subsection (9) of
45	section 121.091, Florida Statutes, and paragraphs (a) and (b) of
46	subsection (13) of that section are amended, to read:
47	121.091  Benefits payable under the system.--Benefits may
48	not be paid under this section unless the member has terminated
49	employment as provided in s. 121.021(39)(a) or begun
50	participation in the Deferred Retirement Option Program as
51	provided in subsection (13), and a proper application has been
52	filed in the manner prescribed by the department. The department
53	may cancel an application for retirement benefits when the
54	member or beneficiary fails to timely provide the information
55	and documents required by this chapter and the department's
56	rules. The department shall adopt rules establishing procedures
57	for application for retirement benefits and for the cancellation
58	of such application when the required information or documents
59	are not received.
60	(9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
61	(d)  Notwithstanding any other provision in this section, a
62	member of the Special Risk Class who is employed as a law
63	enforcement officer, correctional officer, or community-based
64	correctional probation officer, as described in s. 121.0515(2),
65	and who has a rank or the equivalent rank of captain or below,
66	at the conclusion of his or her participation in DROP, may not
67	be employed, reemployed, or retained in a contractual capacity
68	by the same employing agency from which the member retired;
69	however, the member may be retained by the employing agency as a
70	part-time or auxiliary law enforcement officer, as those terms
71	are defined in s. 943.10, if the member is serving on a
72	voluntary basis and receives no more than $1 per calendar year
73	in remuneration for services rendered directly for the employing
74	agency. Any person who is reemployed or retained in a
75	contractual capacity in violation of this paragraph shall void
76	his or her application for retirement benefits. Any person who
77	violates this paragraph and any employing agency that knowingly
78	employs or contracts with such person in violation of this
79	paragraph is jointly and severally liable for reimbursement to
80	the Florida Retirement System Trust Fund for any retirement
81	benefits improperly paid during the reemployment or contractual
82	period. This provision does not otherwise limit the employment
83	or contractual opportunities for a retiree at any other
84	employing agency. This paragraph does not apply to a retiree who
85	is elected to an office or appointed to an office by the
86	Governor or by the Governor and Cabinet.
87	(13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
88	subject to the provisions of this section, the Deferred
89	Retirement Option Program, hereinafter referred to as the DROP,
90	is a program under which an eligible member of the Florida
91	Retirement System may elect to participate, deferring receipt of
92	retirement benefits while continuing employment with his or her
93	Florida Retirement System employer. The deferred monthly
94	benefits shall accrue in the System Trust Fund on behalf of the
95	participant, plus interest compounded monthly, for the specified
96	period of the DROP participation, as provided in paragraph (c).
97	Upon termination of employment, the participant shall receive
98	the total DROP benefits and begin to receive the previously
99	determined normal retirement benefits. Participation in the DROP
100	does not guarantee employment for the specified period of DROP.
101	Participation in the DROP by an eligible member beyond the
102	initial 60-month period as authorized in this subsection shall
103	be on an annual contractual basis for all participants.
104	(a)  Eligibility of member to participate in the DROP.--All
105	active Florida Retirement System members in a regularly
106	established position, and all active members of either the
107	Teachers' Retirement System established in chapter 238 or the
108	State and County Officers' and Employees' Retirement System
109	established in chapter 122, which systems are consolidated
110	within the Florida Retirement System under s. 121.011, are
111	eligible to elect participation in the DROP if provided that:
112	1.  The member is not a renewed member of the Florida
113	Retirement System under s. 121.122, or a member of the State
114	Community College System Optional Retirement Program under s.
115	121.051, the Senior Management Service Optional Annuity Program
116	under s. 121.055, or the optional retirement program for the
117	State University System under s. 121.35.
118	2.  Except as provided in subparagraph 6., election to
119	participate is made within 12 months immediately following the
120	date on which the member first reaches normal retirement date,
121	or, for a member who reaches normal retirement date based on
122	service before he or she reaches age 62, or age 55 for Special
123	Risk Class members, election to participate may be deferred to
124	the 12 months immediately following the date the member attains
125	57, or age 52 for Special Risk Class members. For a member who
126	first reached normal retirement date or the deferred eligibility
127	date described above prior to the effective date of this
128	section, election to participate shall be made within 12 months
129	after the effective date of this section. A member who fails to
130	make an election within the such 12-month limitation period
131	forfeits shall forfeit all rights to participate in the DROP.
132	The member shall advise his or her employer and the division in
133	writing of the date on which the DROP shall begin. The Such
134	beginning date may be subsequent to the 12-month election
135	period, but must be within the maximum participation 60-month
136	or, with respect to members who are instructional personnel
137	employed by the Florida School for the Deaf and the Blind and
138	who have received authorization by the Board of Trustees of the
139	Florida School for the Deaf and the Blind to participate in the
140	DROP beyond 60 months, or who are instructional personnel as
141	defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
142	received authorization by the district school superintendent to
143	participate in the DROP beyond 60 months, the 96-month
144	limitation period as provided in subparagraph (b)1. When
145	establishing eligibility of the member to participate in the
146	DROP for the 60-month or, with respect to members who are
147	instructional personnel employed by the Florida School for the
148	Deaf and the Blind and who have received authorization by the
149	Board of Trustees of the Florida School for the Deaf and the
150	Blind to participate in the DROP beyond 60 months, or who are
151	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
152	grades K-12 and who have received authorization by the district
153	school superintendent to participate in the DROP beyond 60
154	months, the 96-month maximum participation period, the member
155	may elect to include or exclude any optional service credit
156	purchased by the member from the total service used to establish
157	the normal retirement date. A member who has with dual normal
158	retirement dates is shall be eligible to elect to participate in
159	DROP within 12 months after attaining normal retirement date in
160	either class.
161	3.  The employer of a member electing to participate in the
162	DROP, or employers if dually employed, shall acknowledge in
163	writing to the division the date the member's participation in
164	the DROP begins and the date the member's employment and DROP
165	participation will terminate.
166	4.  Simultaneous employment of a participant by additional
167	Florida Retirement System employers subsequent to the
168	commencement of participation in the DROP is shall be
169	permissible if provided such employers acknowledge in writing a
170	DROP termination date no later than the participant's existing
171	termination date or the maximum participation 60-month
172	limitation period as provided in subparagraph (b)1.
173	5.  A DROP participant may change employers while
174	participating in the DROP, subject to the following:
175	a.  A change of employment must take place without a break
176	in service so that the member receives salary for each month of
177	continuous DROP participation. If a member receives no salary
178	during a month, DROP participation shall cease unless the
179	employer verifies a continuation of the employment relationship
180	for such participant pursuant to s. 121.021(39)(b).
181	b.  Such participant and new employer shall notify the
182	division of the identity of the new employer on forms required
183	by the division as to the identity of the new employer.
184	c.  The new employer shall acknowledge, in writing, the
185	participant's DROP termination date, which may be extended but
186	not beyond the maximum participation original 60-month or, with
187	respect to members who are instructional personnel employed by
188	the Florida School for the Deaf and the Blind and who have
189	received authorization by the Board of Trustees of the Florida
190	School for the Deaf and the Blind to participate in the DROP
191	beyond 60 months, or who are instructional personnel as defined
192	in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
193	authorization by the district school superintendent to
194	participate in the DROP beyond 60 months, the 96-month period
195	provided in subparagraph (b)1., shall acknowledge liability for
196	any additional retirement contributions and interest required if
197	the participant fails to timely terminate employment, and shall
198	be subject to the adjustment required in sub-subparagraph
199	(c)5.d.
200	6.  Effective July 1, 2001, for instructional personnel as
201	defined in s. 1012.01 s. 1012.01(2), election to participate in
202	the DROP may shall be made at any time following the date on
203	which the member first reaches normal retirement date. The
204	member shall advise his or her employer and the division in
205	writing of the date on which DROP the Deferred Retirement Option
206	Program shall begin. When establishing eligibility of the member
207	to participate in the DROP for the 60-month or, with respect to
208	members who are instructional personnel employed by the Florida
209	School for the Deaf and the Blind and who have received
210	authorization by the Board of Trustees of the Florida School for
211	the Deaf and the Blind to participate in the DROP beyond 60
212	months, or who are instructional personnel as defined in s.
213	1012.01(2)(a)-(d) in grades K-12 and who have received
214	authorization by the district school superintendent to
215	participate in the DROP beyond 60 months, the 96-month maximum
216	participation period, as provided in subparagraph (b)1., the
217	member may elect to include or exclude any optional service
218	credit purchased by the member from the total service used to
219	establish the normal retirement date. A member who has with dual
220	normal retirement dates is shall be eligible to elect to
221	participate in either class.
222	(b)  Participation in the DROP.--
223	1.  Subject to the following exceptions, an eligible member
224	may elect to participate in the DROP for a period not to exceed
225	a maximum of 60 calendar months. or, with respect to
226	a.  Eligible members who are instructional personnel
227	employed by the Florida School for the Deaf and the Blind and
228	who have received authorization by the Board of Trustees of the
229	Florida School for the Deaf and the Blind to participate in the
230	DROP beyond 60 months, or who are instructional personnel as
231	defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
232	received authorization by the district school superintendent to
233	participate in the DROP beyond 60 calendar months, may elect to
234	participate for a period up to 96 calendar months immediately
235	following the date on which the member first reaches his or her
236	normal retirement date or the date to which he or she is
237	eligible to defer his or her election to participate as provided
238	in subparagraph (a)2. However, a member who has reached normal
239	retirement date prior to the effective date of the DROP shall be
240	eligible to participate in the DROP for a period of time not to
241	exceed 60 calendar months or, with respect to members who are
242	instructional personnel employed by the Florida School for the
243	Deaf and the Blind and who have received authorization by the
244	Board of Trustees of the Florida School for the Deaf and the
245	Blind to participate in the DROP beyond 60 months, or who are
246	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
247	grades K-12 and who have received authorization by the district
248	school superintendent to participate in the DROP beyond 60
249	calendar months, 96 calendar months immediately following the
250	effective date of the DROP, except a member of the Special Risk
251	Class who has reached normal retirement date prior to the
252	effective date of the DROP and whose total accrued value exceeds
253	75 percent of average final compensation as of his or her
254	effective date of retirement shall be eligible to participate in
255	the DROP for no more than 36 calendar months immediately
256	following the effective date of the DROP.
257	b.  Special Risk Class members who are employed as law
258	enforcement officers, correctional officers, or community-based
259	correctional probation officers, as described in s. 121.0515(2),
260	who have a rank or the equivalent rank of captain or below, and
261	who are currently participating in DROP for up to 60 months may
262	participate for an additional 36 calendar months. However, in
263	order to participate the member must, before beginning the
264	additional 36 months, receive authorization from the member's
265	employer to participate in DROP beyond 60 months, and pass the
266	same physical examination required for new officers under s.
267	943.13(6) and provide an accompanying statement from the
268	officer's examining physician, physician assistant, or certified
269	advanced registered nurse practitioner that the officer is
270	capable of performing the essential functions of his or her
271	duties as a law enforcement officer, correctional officer, or
272	probation officer. The member's rank at the time of entering
273	DROP shall be used for determining eligibility for the
274	additional 36 calendar months of DROP.
275	2.  Upon deciding to participate in the DROP, the member
276	shall submit, on forms required by the division:
277	a.  A written election to participate in the DROP;
278	b.  Selection of the DROP participation and termination
279	dates, which satisfy the limitations stated in paragraph (a) and
280	subparagraph 1. The Such termination date must shall be in a
281	binding letter of resignation to with the employer, establishing
282	a deferred termination date. The member may change the
283	termination date within the limitations of subparagraph 1., but
284	only with the written approval of the his or her employer;
285	c.  A properly completed DROP application for service
286	retirement as provided in this section; and
287	d.  Any other information required by the division.
288	3.  The DROP participant shall be a retiree under the
289	Florida Retirement System for all purposes, except for paragraph
290	(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
291	and 121.122. However, participation in the DROP does not alter
292	the participant's employment status and the member is such
293	employee shall not be deemed retired from employment until his
294	or her deferred resignation is effective and termination occurs
295	as provided in s. 121.021(39).
296	4.  Elected officers are shall be eligible to participate
297	in the DROP subject to the following:
298	a.  An elected officer who reaches normal retirement date
299	during a term of office may defer the election to participate in
300	the DROP until the next succeeding term in that office. An Such
301	elected officer who exercises this option may participate in the
302	DROP for up to 60 calendar months or for a period of no longer
303	than the such succeeding term of office, whichever is less.
304	b.  An elected or a nonelected participant may run for a
305	term of office while participating in DROP and, if elected,
306	extend the DROP termination date accordingly, except that,
307	however, if such additional term of office exceeds the 60-month
308	limitation established in subparagraph 1., and the officer does
309	not resign from office within such 60-month limitation, the
310	retirement and the participant's DROP shall be null and void as
311	provided in sub-subparagraph (c)5.d.
312	c.  An elected officer who is dually employed and elects to
313	participate in DROP must shall be required to satisfy the
314	definition of termination within the maximum participation 60-
315	month or, with respect to members who are instructional
316	personnel employed by the Florida School for the Deaf and the
317	Blind and who have received authorization by the Board of
318	Trustees of the Florida School for the Deaf and the Blind to
319	participate in the DROP beyond 60 months, or who are
320	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
321	grades K-12 and who have received authorization by the district
322	school superintendent to participate in the DROP beyond 60
323	months, the 96-month limitation period as provided in
324	subparagraph 1. for the nonelected position and may continue
325	employment as an elected officer as provided in s. 121.053. The
326	elected officer shall will be enrolled as a renewed member in
327	the Elected Officers' Class or the Regular Class, as provided in
328	ss. 121.053 and 121.122, on the first day of the month after
329	termination of employment in the nonelected position and
330	termination of DROP. Distribution of the DROP benefits shall be
331	made as provided in paragraph (c).
332	Section 2.  The Legislature finds and declares that
333	ensuring the availability of experienced law enforcement,
334	correctional, and probation officers to protect the safety and
335	welfare of the public is an important state interest. Providing
336	such officers who are members of the Florida Retirement System
337	with an opportunity to extend their employment as law
338	enforcement officers, correctional officers, or probation
339	officers by increasing the maximum participation period in the
340	Deferred Retirement Option Program will help serve that
341	interest. Funding for such retirement benefits must be made,
342	administered, and funded in an actuarially sound manner as
343	required by s. 14, Art. X of the State Constitution and part VII
344	of chapter 112, Florida Statutes.
345	Section 3.  This act shall take effect upon becoming a law.

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