CS/HB 501

1
A bill to be entitled
2An act relating to Special Risk Class retirement benefits;
3amending s. 121.091, F.S.; prohibiting certain members of
4the Special Risk Class from being reemployed or
5contracting with the same employing agency from which the
6member retired; extending the period of time during which
7certain Special Risk Class members may participate in the
8Florida Retirement System Deferred Retirement Option
9program; providing requirements for extended
10participation; deleting obsolete provisions; providing
11legislative findings with respect to the state's interest
12in protecting the public's safety and welfare by extending
13retirement benefits for officers and funding increased
14retirement benefits in an actuarially sound manner;
15providing an effective date.
16
17     WHEREAS, one of the most fundamental mechanisms for
18ensuring the safety and welfare of the public is through the
19state's law enforcement agencies and correctional institutions,
20and
21     WHEREAS, law enforcement agencies and correctional
22institutions throughout this state and the nation are
23experiencing great difficulty in recruiting and retaining well-
24qualified law enforcement and correctional officers, and
25     WHEREAS, this need is projected to become more critical in
26the future, and
27     WHEREAS, the most critical need is to recruit and retain
28line officers who have daily and direct contact with the
29criminal element, and
30     WHEREAS, because such work is physically demanding or
31arduous and often requires extraordinary agility and mental
32acuity that can diminish with age, persons employed in these
33positions are classified as special risk and able to retire at
34an earlier age, and
35     WHEREAS, one mechanism for retaining qualified officers is
36to extend the amount of time that such officers can remain in
37the Deferred Retirement Option Program (DROP) if such officers
38can demonstrate that they retain the necessary physical and
39mental capacity to competently perform their job duties, NOW,
40THEREFORE,
41
42Be It Enacted by the Legislature of the State of Florida:
43
44     Section 1.  Paragraph (d) is added to subsection (9) of
45section 121.091, Florida Statutes, and paragraphs (a) and (b) of
46subsection (13) of that section are amended, to read:
47     121.091  Benefits payable under the system.--Benefits may
48not be paid under this section unless the member has terminated
49employment as provided in s. 121.021(39)(a) or begun
50participation in the Deferred Retirement Option Program as
51provided in subsection (13), and a proper application has been
52filed in the manner prescribed by the department. The department
53may cancel an application for retirement benefits when the
54member or beneficiary fails to timely provide the information
55and documents required by this chapter and the department's
56rules. The department shall adopt rules establishing procedures
57for application for retirement benefits and for the cancellation
58of such application when the required information or documents
59are not received.
60     (9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
61     (d)  Notwithstanding any other provision in this section, a
62member of the Special Risk Class who is employed as a law
63enforcement officer, correctional officer, or community-based
64correctional probation officer, as described in s. 121.0515(2),
65and who has a rank or the equivalent rank of captain or below,
66at the conclusion of his or her participation in DROP, may not
67be employed, reemployed, or retained in a contractual capacity
68by the same employing agency from which the member retired;
69however, the member may be retained by the employing agency as a
70part-time or auxiliary law enforcement officer, as those terms
71are defined in s. 943.10, if the member is serving on a
72voluntary basis and receives no more than $1 per calendar year
73in remuneration for services rendered directly for the employing
74agency. Any person who is reemployed or retained in a
75contractual capacity in violation of this paragraph shall void
76his or her application for retirement benefits. Any person who
77violates this paragraph and any employing agency that knowingly
78employs or contracts with such person in violation of this
79paragraph is jointly and severally liable for reimbursement to
80the Florida Retirement System Trust Fund for any retirement
81benefits improperly paid during the reemployment or contractual
82period. This provision does not otherwise limit the employment
83or contractual opportunities for a retiree at any other
84employing agency. This paragraph does not apply to a retiree who
85is elected to an office or appointed to an office by the
86Governor or by the Governor and Cabinet.
87     (13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
88subject to the provisions of this section, the Deferred
89Retirement Option Program, hereinafter referred to as the DROP,
90is a program under which an eligible member of the Florida
91Retirement System may elect to participate, deferring receipt of
92retirement benefits while continuing employment with his or her
93Florida Retirement System employer. The deferred monthly
94benefits shall accrue in the System Trust Fund on behalf of the
95participant, plus interest compounded monthly, for the specified
96period of the DROP participation, as provided in paragraph (c).
97Upon termination of employment, the participant shall receive
98the total DROP benefits and begin to receive the previously
99determined normal retirement benefits. Participation in the DROP
100does not guarantee employment for the specified period of DROP.
101Participation in the DROP by an eligible member beyond the
102initial 60-month period as authorized in this subsection shall
103be on an annual contractual basis for all participants.
104     (a)  Eligibility of member to participate in the DROP.--All
105active Florida Retirement System members in a regularly
106established position, and all active members of either the
107Teachers' Retirement System established in chapter 238 or the
108State and County Officers' and Employees' Retirement System
109established in chapter 122, which systems are consolidated
110within the Florida Retirement System under s. 121.011, are
111eligible to elect participation in the DROP if provided that:
112     1.  The member is not a renewed member of the Florida
113Retirement System under s. 121.122, or a member of the State
114Community College System Optional Retirement Program under s.
115121.051, the Senior Management Service Optional Annuity Program
116under s. 121.055, or the optional retirement program for the
117State University System under s. 121.35.
118     2.  Except as provided in subparagraph 6., election to
119participate is made within 12 months immediately following the
120date on which the member first reaches normal retirement date,
121or, for a member who reaches normal retirement date based on
122service before he or she reaches age 62, or age 55 for Special
123Risk Class members, election to participate may be deferred to
124the 12 months immediately following the date the member attains
12557, or age 52 for Special Risk Class members. For a member who
126first reached normal retirement date or the deferred eligibility
127date described above prior to the effective date of this
128section, election to participate shall be made within 12 months
129after the effective date of this section. A member who fails to
130make an election within the such 12-month limitation period
131forfeits shall forfeit all rights to participate in the DROP.
132The member shall advise his or her employer and the division in
133writing of the date on which the DROP shall begin. The Such
134beginning date may be subsequent to the 12-month election
135period, but must be within the maximum participation 60-month
136or, with respect to members who are instructional personnel
137employed by the Florida School for the Deaf and the Blind and
138who have received authorization by the Board of Trustees of the
139Florida School for the Deaf and the Blind to participate in the
140DROP beyond 60 months, or who are instructional personnel as
141defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
142received authorization by the district school superintendent to
143participate in the DROP beyond 60 months, the 96-month
144limitation period as provided in subparagraph (b)1. When
145establishing eligibility of the member to participate in the
146DROP for the 60-month or, with respect to members who are
147instructional personnel employed by the Florida School for the
148Deaf and the Blind and who have received authorization by the
149Board of Trustees of the Florida School for the Deaf and the
150Blind to participate in the DROP beyond 60 months, or who are
151instructional personnel as defined in s. 1012.01(2)(a)-(d) in
152grades K-12 and who have received authorization by the district
153school superintendent to participate in the DROP beyond 60
154months, the 96-month maximum participation period, the member
155may elect to include or exclude any optional service credit
156purchased by the member from the total service used to establish
157the normal retirement date. A member who has with dual normal
158retirement dates is shall be eligible to elect to participate in
159DROP within 12 months after attaining normal retirement date in
160either class.
161     3.  The employer of a member electing to participate in the
162DROP, or employers if dually employed, shall acknowledge in
163writing to the division the date the member's participation in
164the DROP begins and the date the member's employment and DROP
165participation will terminate.
166     4.  Simultaneous employment of a participant by additional
167Florida Retirement System employers subsequent to the
168commencement of participation in the DROP is shall be
169permissible if provided such employers acknowledge in writing a
170DROP termination date no later than the participant's existing
171termination date or the maximum participation 60-month
172limitation period as provided in subparagraph (b)1.
173     5.  A DROP participant may change employers while
174participating in the DROP, subject to the following:
175     a.  A change of employment must take place without a break
176in service so that the member receives salary for each month of
177continuous DROP participation. If a member receives no salary
178during a month, DROP participation shall cease unless the
179employer verifies a continuation of the employment relationship
180for such participant pursuant to s. 121.021(39)(b).
181     b.  Such participant and new employer shall notify the
182division of the identity of the new employer on forms required
183by the division as to the identity of the new employer.
184     c.  The new employer shall acknowledge, in writing, the
185participant's DROP termination date, which may be extended but
186not beyond the maximum participation original 60-month or, with
187respect to members who are instructional personnel employed by
188the Florida School for the Deaf and the Blind and who have
189received authorization by the Board of Trustees of the Florida
190School for the Deaf and the Blind to participate in the DROP
191beyond 60 months, or who are instructional personnel as defined
192in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
193authorization by the district school superintendent to
194participate in the DROP beyond 60 months, the 96-month period
195provided in subparagraph (b)1., shall acknowledge liability for
196any additional retirement contributions and interest required if
197the participant fails to timely terminate employment, and shall
198be subject to the adjustment required in sub-subparagraph
199(c)5.d.
200     6.  Effective July 1, 2001, for instructional personnel as
201defined in s. 1012.01 s. 1012.01(2), election to participate in
202the DROP may shall be made at any time following the date on
203which the member first reaches normal retirement date. The
204member shall advise his or her employer and the division in
205writing of the date on which DROP the Deferred Retirement Option
206Program shall begin. When establishing eligibility of the member
207to participate in the DROP for the 60-month or, with respect to
208members who are instructional personnel employed by the Florida
209School for the Deaf and the Blind and who have received
210authorization by the Board of Trustees of the Florida School for
211the Deaf and the Blind to participate in the DROP beyond 60
212months, or who are instructional personnel as defined in s.
2131012.01(2)(a)-(d) in grades K-12 and who have received
214authorization by the district school superintendent to
215participate in the DROP beyond 60 months, the 96-month maximum
216participation period, as provided in subparagraph (b)1., the
217member may elect to include or exclude any optional service
218credit purchased by the member from the total service used to
219establish the normal retirement date. A member who has with dual
220normal retirement dates is shall be eligible to elect to
221participate in either class.
222     (b)  Participation in the DROP.--
223     1.  Subject to the following exceptions, an eligible member
224may elect to participate in the DROP for a period not to exceed
225a maximum of 60 calendar months. or, with respect to
226     a.  Eligible members who are instructional personnel
227employed by the Florida School for the Deaf and the Blind and
228who have received authorization by the Board of Trustees of the
229Florida School for the Deaf and the Blind to participate in the
230DROP beyond 60 months, or who are instructional personnel as
231defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
232received authorization by the district school superintendent to
233participate in the DROP beyond 60 calendar months, may elect to
234participate for a period up to 96 calendar months immediately
235following the date on which the member first reaches his or her
236normal retirement date or the date to which he or she is
237eligible to defer his or her election to participate as provided
238in subparagraph (a)2. However, a member who has reached normal
239retirement date prior to the effective date of the DROP shall be
240eligible to participate in the DROP for a period of time not to
241exceed 60 calendar months or, with respect to members who are
242instructional personnel employed by the Florida School for the
243Deaf and the Blind and who have received authorization by the
244Board of Trustees of the Florida School for the Deaf and the
245Blind to participate in the DROP beyond 60 months, or who are
246instructional personnel as defined in s. 1012.01(2)(a)-(d) in
247grades K-12 and who have received authorization by the district
248school superintendent to participate in the DROP beyond 60
249calendar months, 96 calendar months immediately following the
250effective date of the DROP, except a member of the Special Risk
251Class who has reached normal retirement date prior to the
252effective date of the DROP and whose total accrued value exceeds
25375 percent of average final compensation as of his or her
254effective date of retirement shall be eligible to participate in
255the DROP for no more than 36 calendar months immediately
256following the effective date of the DROP.
257     b.  Special Risk Class members who are employed as law
258enforcement officers, correctional officers, or community-based
259correctional probation officers, as described in s. 121.0515(2),
260who have a rank or the equivalent rank of captain or below, and
261who are currently participating in DROP for up to 60 months may
262participate for an additional 36 calendar months. However, in
263order to participate the member must, before beginning the
264additional 36 months, receive authorization from the member's
265employer to participate in DROP beyond 60 months, and pass the
266same physical examination required for new officers under s.
267943.13(6) and provide an accompanying statement from the
268officer's examining physician, physician assistant, or certified
269advanced registered nurse practitioner that the officer is
270capable of performing the essential functions of his or her
271duties as a law enforcement officer, correctional officer, or
272probation officer. The member's rank at the time of entering
273DROP shall be used for determining eligibility for the
274additional 36 calendar months of DROP.
275     2.  Upon deciding to participate in the DROP, the member
276shall 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
279dates, which satisfy the limitations stated in paragraph (a) and
280subparagraph 1. The Such termination date must shall be in a
281binding letter of resignation to with the employer, establishing
282a deferred termination date. The member may change the
283termination date within the limitations of subparagraph 1., but
284only with the written approval of the his or her employer;
285     c.  A properly completed DROP application for service
286retirement 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
289Florida Retirement System for all purposes, except for paragraph
290(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
291and 121.122. However, participation in the DROP does not alter
292the participant's employment status and the member is such
293employee shall not be deemed retired from employment until his
294or her deferred resignation is effective and termination occurs
295as provided in s. 121.021(39).
296     4.  Elected officers are shall be eligible to participate
297in the DROP subject to the following:
298     a.  An elected officer who reaches normal retirement date
299during a term of office may defer the election to participate in
300the DROP until the next succeeding term in that office. An Such
301elected officer who exercises this option may participate in the
302DROP for up to 60 calendar months or for a period of no longer
303than the such succeeding term of office, whichever is less.
304     b.  An elected or a nonelected participant may run for a
305term of office while participating in DROP and, if elected,
306extend the DROP termination date accordingly, except that,
307however, if such additional term of office exceeds the 60-month
308limitation established in subparagraph 1., and the officer does
309not resign from office within such 60-month limitation, the
310retirement and the participant's DROP shall be null and void as
311provided in sub-subparagraph (c)5.d.
312     c.  An elected officer who is dually employed and elects to
313participate in DROP must shall be required to satisfy the
314definition of termination within the maximum participation 60-
315month or, with respect to members who are instructional
316personnel employed by the Florida School for the Deaf and the
317Blind and who have received authorization by the Board of
318Trustees of the Florida School for the Deaf and the Blind to
319participate in the DROP beyond 60 months, or who are
320instructional personnel as defined in s. 1012.01(2)(a)-(d) in
321grades K-12 and who have received authorization by the district
322school superintendent to participate in the DROP beyond 60
323months, the 96-month limitation period as provided in
324subparagraph 1. for the nonelected position and may continue
325employment as an elected officer as provided in s. 121.053. The
326elected officer shall will be enrolled as a renewed member in
327the Elected Officers' Class or the Regular Class, as provided in
328ss. 121.053 and 121.122, on the first day of the month after
329termination of employment in the nonelected position and
330termination of DROP. Distribution of the DROP benefits shall be
331made as provided in paragraph (c).
332     Section 2.  The Legislature finds and declares that
333ensuring the availability of experienced law enforcement,
334correctional, and probation officers to protect the safety and
335welfare of the public is an important state interest. Providing
336such officers who are members of the Florida Retirement System
337with an opportunity to extend their employment as law
338enforcement officers, correctional officers, or probation
339officers by increasing the maximum participation period in the
340Deferred Retirement Option Program will help serve that
341interest. Funding for such retirement benefits must be made,
342administered, and funded in an actuarially sound manner as
343required by s. 14, Art. X of the State Constitution and part VII
344of 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.