| 1 | A bill to be entitled |
| 2 | An act relating to the Distinguished Educator Retirement |
| 3 | Option Program; providing a declaration of important state |
| 4 | interest; creating s. 1012.721, F.S.; creating the |
| 5 | Distinguished Educator Retirement Option Program; |
| 6 | providing definitions; creating reporting requirements for |
| 7 | the Department of Education; requiring each school |
| 8 | district to establish a Distinguished Educator Retirement |
| 9 | Option Program that funds a tax-sheltered annuity or |
| 10 | custodial account for certain qualified participants; |
| 11 | providing for funding from the Florida Education Finance |
| 12 | Program; authorizing the State Board of Education to adopt |
| 13 | rules; requiring a letter ruling from the Internal Revenue |
| 14 | Service; providing an effective date. |
| 15 |
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| 16 | Be It Enacted by the Legislature of the State of Florida: |
| 17 |
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| 18 | Section 1. The Legislature finds that a proper and |
| 19 | legitimate state purpose is served when employees and retirees |
| 20 | of the state and its political subdivisions, and the dependents, |
| 21 | survivors, and beneficiaries of such employees and retirees, are |
| 22 | extended the basic protections afforded by governmental |
| 23 | retirement systems. Therefore, the Legislature hereby determines |
| 24 | and declares that this act fulfills an important state interest. |
| 25 | Section 2. Section 1012.721, Florida Statutes, is created |
| 26 | to read: |
| 27 | 1012.721 Distinguished Educator Retirement Option |
| 28 | Program.-- |
| 29 | (1) As used in this section, the term: |
| 30 | (a) "Distinguished Educator Retirement Option Program" or |
| 31 | "program" means a tax-sheltered annuity or custodial account |
| 32 | established pursuant to s. 403(b) of the United States Internal |
| 33 | Revenue Code and administered by a local school district. |
| 34 | (b) "Learning gains" means student learning gains used for |
| 35 | calculating school grades under s. 1008.34(3)(a)2. |
| 36 | (c) "Title I school" means a Title I school as defined by |
| 37 | federal law. |
| 38 | (2) There is hereby created the Distinguished Educator |
| 39 | Retirement Option Program which shall be funded by the Florida |
| 40 | Education Finance Program. |
| 41 | (3)(a) For purposes of increased retirement contributions, |
| 42 | the Department of Education shall annually identify the |
| 43 | following: |
| 44 | 1. Instructional personnel who are employed in Title I |
| 45 | schools that have at least 75 percent of the students eligible |
| 46 | for the statewide assessment in the school making learning gains |
| 47 | in both reading and mathematics, based upon results on the |
| 48 | statewide assessment provided in s. 1008.22. |
| 49 | 2. Classroom teachers who are employed in Title I schools |
| 50 | who teach reading or mathematics and who have at least 75 |
| 51 | percent of the students assigned to the teacher making learning |
| 52 | gains in each subject taught by that classroom teacher, based |
| 53 | upon results on the statewide assessment provided in s. 1008.22. |
| 54 | (b) For any person who qualifies as both instructional |
| 55 | personnel and a classroom teacher, the department shall identify |
| 56 | that person for the category receiving the greater of the two |
| 57 | benefits. |
| 58 | (4) Beginning July 1, 2009, and each July 1 thereafter, |
| 59 | the department shall certify to each school district those |
| 60 | instructional personnel and classroom teachers who meet the |
| 61 | requirements of subsection (3) and who are therefore eligible to |
| 62 | participate in the Distinguished Educator Retirement Option |
| 63 | Program. |
| 64 | (5)(a) Each school district shall provide a tax-sheltered |
| 65 | annuity or custodial account for each certified instructional |
| 66 | personnel and classroom teacher, within its district, who is |
| 67 | eligible for the Distinguished Educator Retirement Option |
| 68 | Program. |
| 69 | (b) For each instructional personnel who is certified by |
| 70 | the department as eligible for participation in the program, the |
| 71 | school district shall pay an amount equal to 1.95 percent of |
| 72 | that person's annual salary to an insurance company licensed to |
| 73 | do business in Florida; to a credit union, bank, or savings and |
| 74 | loan association qualified to do business in Florida; or to a |
| 75 | custodial account to be invested in regulated investment company |
| 76 | stock to be held in such custodial account, as selected by the |
| 77 | person, notwithstanding any other provision of law, as premiums |
| 78 | on an annuity contract issued in the name of such person or as |
| 79 | payment into a qualified custodial account established pursuant |
| 80 | to s. 403(b) of the United States Internal Revenue Code. |
| 81 | (c) For each classroom teacher who is certified by the |
| 82 | department as eligible for participation in the program, the |
| 83 | school district shall pay an amount equal to 4.40 percent of |
| 84 | that person's annual salary to an insurance company licensed to |
| 85 | do business in Florida; to a credit union, bank, or savings and |
| 86 | loan association qualified to do business in Florida; or to a |
| 87 | custodial account to be invested in regulated investment company |
| 88 | stock to be held in such custodial account, as selected by the |
| 89 | person, notwithstanding any other provision of law, as premiums |
| 90 | on an annuity contract issued in the name of such person or as |
| 91 | payment into a qualified custodial account established pursuant |
| 92 | to s. 403(b) of the United States Internal Revenue Code. |
| 93 | (d) Each instructional personnel and classroom teacher who |
| 94 | participates in the program may pay matching funds to the same |
| 95 | account established by the school district. |
| 96 | (e) The amount of such payments shall not exceed the |
| 97 | amount excludable from income under s. 403(b) of the United |
| 98 | States Internal Revenue Code and shall be considered a part of |
| 99 | the employee's salary for all purposes other than federal income |
| 100 | taxation. |
| 101 | (6) The purchase of such tax-sheltered annuity or other |
| 102 | investment qualified under the United States Internal Revenue |
| 103 | Code and not prohibited under the laws of this state for an |
| 104 | employee shall impose no liability or responsibility whatsoever |
| 105 | on the employing agency except to show that the payments have |
| 106 | been remitted for the purposes for which deducted. |
| 107 | (7) The State Board of Education may adopt rules pursuant |
| 108 | to ss. 120.536(1) and 120.54 as necessary to administer the |
| 109 | creation of a process for identifying instructional personnel |
| 110 | and classroom teachers eligible for the Distinguished Educator |
| 111 | Retirement Option Program and for certifying to the appropriate |
| 112 | school districts those qualified participants. |
| 113 | Section 3. The Department of Education shall request from |
| 114 | the Internal Revenue Service, by October 1, 2008, a letter |
| 115 | ruling regarding the provisions of this act. |
| 116 | Section 4. This act shall take effect July 1, 2008. |