1

A bill to be entitled

2

An act relating to public school personnel retirement

3

benefits; amending s. 121.091, F.S.; increasing the period

4

of time for certain school personnel to participate in the

5

Deferred Retirement Option Program; deleting obsolete

6

provisions; providing legislative findings with respect to

7

ensuring adequate staffing for the public school system

8

and funding extended benefits in an actuarially sound

9

manner; providing an effective date.

10

11

Be It Enacted by the Legislature of the State of Florida:

12

13

     Section 1.  Paragraphs (a) and (b) of subsection (13) of

14

section 121.091, Florida Statutes, are amended to read:

15

     121.091  Benefits payable under the system.--Benefits may

16

not be paid under this section unless the member has terminated

17

employment as provided in s. 121.021(39)(a) or begun

18

participation in the Deferred Retirement Option Program as

19

provided in subsection (13), and a proper application has been

20

filed in the manner prescribed by the department. The department

21

may cancel an application for retirement benefits when the member

22

or beneficiary fails to timely provide the information and

23

documents required by this chapter and the department's rules.

24

The department shall adopt rules establishing procedures for

25

application for retirement benefits and for the cancellation of

26

such application when the required information or documents are

27

not received.

28

     (13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and

29

subject to the provisions of this section, the Deferred

30

Retirement Option Program, hereinafter referred to as the DROP,

31

is a program under which an eligible member of the Florida  

32

Retirement System may elect to participate, deferring receipt of

33

retirement benefits while continuing employment with his or her

34

Florida Retirement System employer. The deferred monthly benefits

35

shall accrue in the System Trust Fund on behalf of the

36

participant, plus interest compounded  monthly, for the specified

37

period of the DROP participation, as provided in paragraph (c).

38

Upon termination of employment, the participant shall receive the

39

total DROP benefits and begin to receive the previously

40

determined normal retirement benefits. Participation in the DROP

41

does not guarantee employment for the specified period of DROP.

42

Participation in the DROP by an eligible member beyond the

43

initial 60-month period as authorized in this subsection shall be

44

on an annual contractual basis for all participants.

45

     (a)  Eligibility of member to participate in the DROP.--All

46

active Florida Retirement System members in a regularly

47

established position, and all active members of either the

48

Teachers' Retirement System established in chapter 238 or the

49

State and County Officers' and Employees' Retirement System

50

established in chapter 122, which systems are consolidated within

51

the Florida Retirement System under s. 121.011, are eligible to

52

elect participation in the DROP if provided that:

53

     1. The member is not a renewed member of the Florida

54

Retirement System under s. 121.122, or a member of the State

55

Community College System Optional Retirement Program under s.

56

121.051, the Senior Management Service Optional Annuity Program

57

under s. 121.055, or the optional retirement program for the

58

State University System under s. 121.35.

59

     2.  Except as provided in subparagraph 6., election to

60

participate is made within 12 months immediately following the

61

date on which the member first reaches normal retirement date,

62

or, for a member who reaches normal retirement date based on

63

service before he or she reaches age 62, or age 55 for Special

64

Risk Class members, election to participate may be deferred to

65

the 12 months immediately following the date the member attains

66

57, or age 52 for Special Risk Class members. For a member who

67

first reached normal retirement date or the deferred eligibility

68

date described above prior to the effective date of this section,

69

election to participate shall be made within 12 months after the

70

effective date of this section. A member who fails to make an

71

election within the such 12-month limitation period forfeits

72

shall forfeit all rights to participate in the DROP. The member

73

shall advise his or her employer and the division in writing of

74

the date on which the DROP shall begin. The Such beginning date

75

may be subsequent to the 12-month election period, but must be

76

within the 60-month or, with respect to members who are

77

instructional personnel employed by the Florida School for the

78

Deaf and the Blind and who have received authorization by the

79

Board of Trustees of the Florida School for the Deaf and the

80

Blind to participate in the DROP beyond 60 months, or who are

81

instructional personnel as defined in s. 1012.01(2)(a)-(d) in

82

grades K-12 and who have received authorization by the district

83

school superintendent to participate in the DROP beyond 60

84

months, the 96-month maximum participation limitation period as

85

provided in subparagraph (b)1. When establishing eligibility of

86

the member to participate in the DROP for the 60-month or, with

87

respect to members who are instructional personnel employed by

88

the Florida School for the Deaf and the Blind and who have

89

received authorization by the Board of Trustees of the Florida

90

School for the Deaf and the Blind to participate in the DROP

91

beyond 60 months, or who are instructional personnel as defined

92

in s. 1012.01(2)(a)-(d) in grades K-12 and who have received

93

authorization by the district school superintendent to

94

participate in the DROP beyond 60 months, the 96-month maximum

95

participation period, the member may elect to include or exclude

96

any optional service credit purchased by the member from the

97

total service used to establish the normal retirement date. A

98

member who has with dual normal retirement dates is shall be

99

eligible to elect to participate in DROP within 12 months after

100

attaining normal retirement date in either class.

101

     3. The employer of a member electing to participate in the

102

DROP, or employers if dually employed, shall acknowledge in

103

writing to the division the date the member's participation in

104

the DROP begins and the date the member's employment and DROP

105

participation will terminate.

106

     4.  Simultaneous employment of a participant by additional

107

Florida Retirement System employers subsequent to the

108

commencement of participation in the DROP is shall be permissible

109

if provided such employers acknowledge in writing a DROP

110

termination date no later than the participant's existing

111

termination date or the 60-month participation limitation period

112

as provided in subparagraph (b)1.

113

     5.  A DROP participant may change employers while

114

participating in the DROP, subject to the following:

115

     a.  A change of employment must take place without a break

116

in service so that the member receives salary for each month of

117

continuous DROP participation.  If a member receives no salary

118

during a month, DROP participation shall cease unless the

119

employer verifies a continuation of the employment relationship

120

for such participant pursuant to s. 121.021(39)(b).

121

     b.  Such participant and new employer shall notify the

122

division of the identity of the new employer on forms required by

123

the division as to the identity of the new employer.

124

     c.  The new employer shall acknowledge, in writing, the

125

participant's DROP termination date, which may be extended but

126

not beyond the original 60-month or, with respect to members who

127

are instructional personnel employed by the Florida School for

128

the Deaf and the Blind and who have received authorization by the

129

Board of Trustees of the Florida School for the Deaf and the

130

Blind to participate in the DROP beyond 60 months, or who are

131

instructional personnel as defined in s. 1012.01(2)(a)-(d) in

132

grades K-12 and who have received authorization by the district

133

school superintendent to participate in the DROP beyond 60

134

months, the 96-month maximum participation period provided in

135

subparagraph (b)1., shall acknowledge liability for any

136

additional retirement contributions and interest required if the

137

participant fails to timely terminate employment, and shall be

138

subject to the adjustment required in sub-subparagraph (c)5.d.

139

     6.  Effective July 1, 2001, for instructional personnel as

140

defined in s. 1012.01 s. 1012.01(2), election to participate in

141

the DROP may shall be made at any time following the date on

142

which the member first reaches normal retirement date. The member

143

shall advise his or her employer and the division in writing of

144

the date on which DROP the Deferred Retirement Option Program

145

shall begin. When establishing eligibility of the member to

146

participate in the DROP for the 60-month or, with respect to

147

members who are instructional personnel employed by the Florida

148

School for the Deaf and the Blind and who have received

149

authorization by the Board of Trustees of the Florida School for

150

the Deaf and the Blind to participate in the DROP beyond 60

151

months, or who are instructional personnel as defined in s.

152

1012.01(2)(a)-(d) in grades K-12 and who have received

153

authorization by the district school superintendent to

154

participate in the DROP beyond 60 months, the 96-month maximum

155

participation period, as provided in subparagraph (b)1., the

156

member may elect to include or exclude any optional service

157

credit purchased by the member from the total service used to

158

establish the normal retirement date. A member who has with dual

159

normal retirement dates is shall be eligible to elect to

160

participate in either class.

161

     (b) Participation in the DROP.--

162

     1. An eligible member may elect to participate in the DROP

163

for a period not to exceed a maximum of 60 calendar months.

164

However, participation for a period of up to 96 calendar months

165

immediately following the date on which the member first reaches

166

his or her normal retirement date, or the date he or she is

167

eligible to defer his or her election to participate as provided

168

in subparagraph (a)2, may be elected by: or, with respect to

169

members who are

170

     a. Instructional personnel employed by the Florida School

171

for the Deaf and the Blind and who have received authorization by

172

the Board of Trustees of the Florida School for the Deaf and the

173

Blind to participate in the DROP beyond 60 months;, or who are

174

     b. Instructional personnel as defined in s. 1012.01(2)(a)-

175

(d) in prekindergarten through grade 12, who are funded through

176

the Florida Education Finance Program, who are employed by a

177

public school, and who have received authorization by the

178

district school superintendent to participate in DROP beyond 60

179

calendar months; or

180

     c. Administrative personnel as defined in s. 1012(3)(c), or

181

administrative personnel as defined in s. 1012(3)(a) and (b) in

182

school-board-designated areas of critical administrative

183

shortages in grades K-12 and who have received authorization by

184

the district school superintendent to participate in the DROP

185

beyond 60 calendar months, 96 calendar months immediately

186

following the date on which the member first reaches his or her

187

normal retirement date or the date to which he or she is eligible

188

to defer his or her election to participate as provided in

189

subparagraph (a)2. However, a member who has reached normal

190

retirement date prior to the effective date of the DROP shall be

191

eligible to participate in the DROP for a period of time not to

192

exceed 60 calendar months or, with respect to members who are

193

instructional personnel employed by the Florida School for the

194

Deaf and the Blind and who have received authorization by the

195

Board of Trustees of the Florida School for the Deaf and the

196

Blind to participate in the DROP beyond 60 months, or who are

197

instructional personnel as defined in s. 1012.01(2)(a)-(d) in

198

grades K-12 and who have received authorization by the district

199

school superintendent to participate in the DROP beyond 60

200

calendar months, 96 calendar months immediately following the

201

effective date of the DROP, except a member of the Special Risk

202

Class who has reached normal retirement date prior to the

203

effective date of the DROP and whose total accrued value exceeds

204

75 percent of average final compensation as of his or her

205

effective date of retirement shall be eligible to participate in

206

the DROP for no more than 36 calendar months immediately

207

following the effective date of the DROP.

208

     2. Upon deciding to participate in the DROP, the member

209

shall submit, on forms required by the division:

210

     a. A written election to participate in the DROP;

211

     b. Selection of the DROP participation and termination

212

dates, which satisfy the limitations stated in paragraph (a) and

213

subparagraph 1. The Such termination date must shall be in a

214

binding letter of resignation to with the employer, establishing

215

a deferred termination date. The member may change the

216

termination date within the limitations of subparagraph 1., but

217

only with the written approval of the his or her employer;

218

     c.  A properly completed DROP application for service

219

retirement as provided in this section; and

220

     d.  Any other information required by the division.

221

     3.  The DROP participant shall be a retiree under the

222

Florida Retirement System for all purposes, except for paragraph

223

(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053, and

224

121.122. However, participation in the DROP does not alter the

225

participant's employment status and the member is such employee

226

shall not be deemed retired from employment until his or her

227

deferred resignation is effective and termination occurs as

228

provided in s. 121.021(39).

229

     4. Elected officers are shall be eligible to participate in

230

the DROP subject to the following:

231

     a.  An elected officer who reaches normal retirement date

232

during a term of office may defer the election to participate in

233

the DROP until the next succeeding term in that office. An Such

234

elected officer who exercises this option may participate in the

235

DROP for up to 60 calendar months or for a period of no longer

236

than the such succeeding term of office, whichever is less.

237

     b.  An elected or a nonelected participant may run for a

238

term of office while participating in DROP and, if elected,

239

extend the DROP termination date accordingly, except that,

240

however, if such additional term of office exceeds the 60-month

241

limitation established in subparagraph 1., and the officer does

242

not resign from office within the such 60-month limitation, the

243

retirement and the participant's DROP shall be null and void as

244

provided in sub-subparagraph (c)5.d.

245

     c.  An elected officer who is dually employed and elects to

246

participate in DROP shall be required to satisfy the definition

247

of termination within the 60-month or, with respect to members

248

who are instructional personnel employed by the Florida School

249

for the Deaf and the Blind and who have received authorization by

250

the Board of Trustees of the Florida School for the Deaf and the

251

Blind to participate in the DROP beyond 60 months, or who are

252

instructional personnel as defined in s. 1012.01(2)(a)-(d) in

253

grades K-12 and who have received authorization by the district

254

school superintendent to participate in the DROP beyond 60

255

months, the 96-month maximum participation limitation period as

256

provided in subparagraph 1. for the nonelected position and may

257

continue employment as an elected officer as provided in s.

258

121.053. The elected officer shall will be enrolled as a renewed

259

member in the Elected Officers' Class or the Regular Class, as

260

provided in ss. 121.053 and 121.122, on the first day of the

261

month after termination of employment in the nonelected position

262

and termination of DROP. Distribution of the DROP benefits shall

263

be made as provided in paragraph (c).

264

     Section 2. The Legislature finds and declares that ensuring

265

adequate and experienced staffing for the public school system is

266

an important state interest that is served by providing school

267

personnel who are members of the Florida Retirement System with

268

an opportunity to extend their participation in the Deferred

269

Retirement Option Program, and that funding for such benefits

270

shall be made, administered, and funded in an actuarially sound

271

manner as required by s. 14, Art. X of the State Constitution and

272

part VII of chapter 112, Florida Statutes.

273

     Section 3.  This act shall take effect upon becoming a law.