Florida Senate - 2009 CS for SB 1072
By the Committee on Criminal Justice; and Senator Baker
591-02681-09 20091072c1
1 A bill to be entitled
2 An act relating to Special Risk Class retirement
3 benefits; amending s. 121.091, F.S.; providing that
4 certain members of the Special Risk Class may
5 participate in the Deferred Retirement Option Program
6 for an additional 36 months; prohibiting such members
7 from being reemployed or contracting with the same
8 employing agency from which the member retired;
9 providing exceptions; deleting obsolete provisions;
10 providing legislative findings with respect to the
11 state’s interest in protecting the public’s safety and
12 welfare by extending retirement benefits for officers
13 and funding increased retirement benefits in an
14 actuarially sound manner; providing an effective date.
15
16 WHEREAS, one of the most fundamental mechanisms for
17 ensuring the safety and welfare of the public is through the
18 state’s law enforcement agencies and correctional institutions,
19 and
20 WHEREAS, law enforcement agencies and correctional
21 institutions throughout this state and the nation are
22 experiencing great difficulty in recruiting and retaining well
23 qualified law enforcement and correctional officers, and
24 WHEREAS, this need is projected to become more critical in
25 the future, and
26 WHEREAS, the most critical need is to recruit and retain
27 line officers who have daily and direct contact with the
28 criminal element, and
29 WHEREAS, because such work is physically demanding or
30 arduous and often requires extraordinary agility and mental
31 acuity that can diminish with age, persons employed in these
32 positions are classified as special risk and able to retire at
33 an earlier age, and
34 WHEREAS, one mechanism for retaining qualified officers is
35 to extend the amount of time that such officers can remain in
36 the Deferred Retirement Option Program (DROP), NOW, THEREFORE,
37
38 Be It Enacted by the Legislature of the State of Florida:
39
40 Section 1. Paragraphs (a) and (b) of subsection (13) of
41 section 121.091, Florida Statutes, are amended to read:
42 121.091 Benefits payable under the system.—Benefits may not
43 be paid under this section unless the member has terminated
44 employment as provided in s. 121.021(39)(a) or begun
45 participation in the Deferred Retirement Option Program as
46 provided in subsection (13), and a proper application has been
47 filed in the manner prescribed by the department. The department
48 may cancel an application for retirement benefits when the
49 member or beneficiary fails to timely provide the information
50 and documents required by this chapter and the department’s
51 rules. The department shall adopt rules establishing procedures
52 for application for retirement benefits and for the cancellation
53 of such application when the required information or documents
54 are not received.
55 (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
56 subject to the provisions of this section, the Deferred
57 Retirement Option Program, hereinafter referred to as the DROP,
58 is a program under which an eligible member of the Florida
59 Retirement System may elect to participate, deferring receipt of
60 retirement benefits while continuing employment with his or her
61 Florida Retirement System employer. The deferred monthly
62 benefits shall accrue in the System Trust Fund on behalf of the
63 participant, plus interest compounded monthly, for the specified
64 period of the DROP participation, as provided in paragraph (c).
65 Upon termination of employment, the participant shall receive
66 the total DROP benefits and begin to receive the previously
67 determined normal retirement benefits. Participation in the DROP
68 does not guarantee employment for the specified period of DROP.
69 Participation in the DROP by an eligible member beyond the
70 initial 60-month period as authorized in this subsection shall
71 be on an annual contractual basis for all participants.
72 (a) Eligibility of member to participate in the DROP.—All
73 active Florida Retirement System members in a regularly
74 established position, and all active members of either the
75 Teachers’ Retirement System established in chapter 238 or the
76 State and County Officers’ and Employees’ Retirement System
77 established in chapter 122, which systems are consolidated
78 within the Florida Retirement System under s. 121.011, are
79 eligible to elect participation in the DROP if provided that:
80 1. The member is not a renewed member of the Florida
81 Retirement System under s. 121.122, or a member of the State
82 Community College System Optional Retirement Program under s.
83 121.051, the Senior Management Service Optional Annuity Program
84 under s. 121.055, or the optional retirement program for the
85 State University System under s. 121.35.
86 2. Except as provided in subparagraph 6., election to
87 participate is made within 12 months immediately following the
88 date on which the member first reaches normal retirement date,
89 or, for a member who reaches normal retirement date based on
90 service before he or she reaches age 62, or age 55 for Special
91 Risk Class members, election to participate may be deferred to
92 the 12 months immediately following the date the member attains
93 age 57, or age 52 for Special Risk Class members. For a member
94 who first reached normal retirement date or the deferred
95 eligibility date described above prior to the effective date of
96 this section, election to participate shall be made within 12
97 months after the effective date of this section. A member who
98 fails to make an election within the such 12-month limitation
99 period forfeits shall forfeit all rights to participate in the
100 DROP. The member shall advise his or her employer and the
101 division in writing of the date on which the DROP begins shall
102 begin. The Such beginning date may be subsequent to the 12-month
103 election period, but must be within the maximum participation
104 60-month or, with respect to members who are instructional
105 personnel employed by the Florida School for the Deaf and the
106 Blind and who have received authorization by the Board of
107 Trustees of the Florida School for the Deaf and the Blind to
108 participate in the DROP beyond 60 months, or who are
109 instructional personnel as defined in s. 1012.01(2)(a)-(d) in
110 grades K-12 and who have received authorization by the district
111 school superintendent to participate in the DROP beyond 60
112 months, the 96-month limitation period as provided in
113 subparagraph (b)1. When establishing eligibility of the member
114 to participate in the DROP for the 60-month or, with respect to
115 members who are instructional personnel employed by the Florida
116 School for the Deaf and the Blind and who have received
117 authorization by the Board of Trustees of the Florida School for
118 the Deaf and the Blind to participate in the DROP beyond 60
119 months, or who are instructional personnel as defined in s.
120 1012.01(2)(a)-(d) in grades K-12 and who have received
121 authorization by the district school superintendent to
122 participate in the DROP beyond 60 months, the 96-month maximum
123 participation period, the member may elect to include or exclude
124 any optional service credit purchased by the member from the
125 total service used to establish the normal retirement date. A
126 member who has with dual normal retirement dates is shall be
127 eligible to elect to participate in DROP within 12 months after
128 attaining normal retirement date in either class.
129 3. The employer of a member electing to participate in the
130 DROP, or employers if dually employed, shall acknowledge in
131 writing to the division the date the member’s participation in
132 the DROP begins and the date the member’s employment and DROP
133 participation will terminate.
134 4. Simultaneous employment of a participant by additional
135 Florida Retirement System employers subsequent to the
136 commencement of participation in the DROP is shall be
137 permissible if provided such employers acknowledge in writing a
138 DROP termination date no later than the participant’s existing
139 termination date or the maximum participation 60-month
140 limitation period as provided in subparagraph (b)1.
141 5. A DROP participant may change employers while
142 participating in the DROP, subject to the following:
143 a. A change of employment must take place without a break
144 in service so that the member receives salary for each month of
145 continuous DROP participation. If a member receives no salary
146 during a month, DROP participation shall cease unless the
147 employer verifies a continuation of the employment relationship
148 for such participant pursuant to s. 121.021(39)(b).
149 b. Such participant and new employer shall notify the
150 division of the identity of the new employer on forms required
151 by the division as to the identity of the new employer.
152 c. The new employer shall acknowledge, in writing, the
153 participant’s DROP termination date, which may be extended, but
154 not beyond the original 60-month participation or, with respect
155 to members who are instructional personnel employed by the
156 Florida School for the Deaf and the Blind and who have received
157 authorization by the Board of Trustees of the Florida School for
158 the Deaf and the Blind to participate in the DROP beyond 60
159 months, or who are instructional personnel as defined in s.
160 1012.01(2)(a)-(d) in grades K-12 and who have received
161 authorization by the district school superintendent to
162 participate in the DROP beyond 60 months, the 96-month period
163 provided in subparagraph (b)1., shall acknowledge liability for
164 any additional retirement contributions and interest required if
165 the participant fails to timely terminate employment, and is
166 shall be subject to the adjustment required in sub-subparagraph
167 (c)5.d.
168 6. Effective July 1, 2001, for instructional personnel as
169 defined in s. 1012.01(2), election to participate in the DROP
170 may shall be made at any time following the date on which the
171 member first reaches normal retirement date. The member shall
172 advise his or her employer and the division in writing of the
173 date on which DROP begins the Deferred Retirement Option Program
174 shall begin. When establishing eligibility of the member to
175 participate in the DROP for the 60-month or, with respect to
176 members who are instructional personnel employed by the Florida
177 School for the Deaf and the Blind and who have received
178 authorization by the Board of Trustees of the Florida School for
179 the Deaf and the Blind to participate in the DROP beyond 60
180 months, or who are instructional personnel as defined in s.
181 1012.01(2)(a)-(d) in grades K-12 and who have received
182 authorization by the district school superintendent to
183 participate in the DROP beyond 60 months, the 96-month maximum
184 participation period, as provided in subparagraph (b)1., the
185 member may elect to include or exclude any optional service
186 credit purchased by the member from the total service used to
187 establish the normal retirement date. A member who has with dual
188 normal retirement dates is shall be eligible to elect to
189 participate in either class.
190 (b) Participation in the DROP.—
191 1. Subject to the following exceptions, an eligible member
192 may elect to participate in the DROP for a period not to exceed
193 a maximum of 60 calendar months. or, with respect to
194 a. Eligible members who are instructional personnel
195 employed by the Florida School for the Deaf and the Blind and
196 authorized who have received authorization by the Board of
197 Trustees of the Florida School for the Deaf and the Blind to
198 participate in the DROP beyond 60 months, or who are
199 instructional personnel as defined in s. 1012.01(2)(a)-(d) in
200 grades K-12 and authorized who have received authorization by
201 the district school superintendent to participate in the DROP
202 beyond 60 calendar months, may elect to participate for a period
203 up to 96 calendar months immediately following the date on which
204 the member first reaches his or her normal retirement date or
205 the date to which he or she is eligible to defer his or her
206 election to participate as provided in subparagraph (a)2.
207 However, a member who has reached normal retirement date prior
208 to the effective date of the DROP shall be eligible to
209 participate in the DROP for a period of time not to exceed 60
210 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 and who are currently participating in DROP for up to 60 months
230 may participate for an additional 36 calendar months. However,
231 notwithstanding subparagraph (9)(b)1., any such member who
232 participates for any or all of the additional 36 months may not
233 be reemployed or retained in a contractual capacity with the
234 same employing agency following the member’s termination from
235 that employer in accordance with s. 121.021(39). This provision
236 does not otherwise limit the retired member from being employed
237 or contracting with any other employing agency participating in
238 the Florida Retirement System.
239 (I) A retired member who is reemployed or retained in a
240 contractual capacity in violation of this sub-subparagraph voids
241 his or her application for retirement benefits. Any person who
242 violates this sub-subparagraph and any employing agency that
243 knowingly reemploys or contracts with such person in violation
244 of this sub-subparagraph is jointly and severally liable for
245 reimbursement to the Florida Retirement System Trust Fund for
246 any retirement benefits improperly paid during the reemployment
247 or contractual period.
248 (II) The provisions of this sub-subparagraph do not apply
249 to a retired member who is employed as a part-time or auxiliary
250 law enforcement or correctional probation officer, as those
251 terms are defined in s. 943.10, on a voluntary basis and who
252 receives no more than $1 per calendar year for services rendered
253 directly for the employing agency, or to a retired member who is
254 elected to an office or appointed to an office by the Governor
255 or by the Governor and Cabinet.
256 2. Upon deciding to participate in the DROP, the member
257 shall submit, on forms required by the division:
258 a. A written election to participate in the DROP;
259 b. Selection of the DROP participation and termination
260 dates, which satisfy the limitations stated in paragraph (a) and
261 subparagraph 1. The Such termination date must shall be
262 specified in a binding letter of resignation to with the
263 employer, establishing a deferred termination date. The member
264 may change the termination date within the limitations of
265 subparagraph 1., but only with the written approval of the his
266 or her employer;
267 c. A properly completed DROP application for service
268 retirement as provided in this section; and
269 d. Any other information required by the division.
270 3. The DROP participant shall be a retiree under the
271 Florida Retirement System for all purposes, except for paragraph
272 (5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
273 and 121.122. However, participation in the DROP does not alter
274 the participant’s employment status and the member is such
275 employee shall not be deemed retired from employment until his
276 or her deferred resignation is effective and termination occurs
277 as provided in s. 121.021(39).
278 4. Elected officers are shall be eligible to participate in
279 the DROP subject to the following:
280 a. An elected officer who reaches normal retirement date
281 during a term of office may defer the election to participate in
282 the DROP until the next succeeding term in that office. An Such
283 elected officer who exercises this option may participate in the
284 DROP for up to 60 calendar months or for a period of no longer
285 than the such succeeding term of office, whichever is less.
286 b. An elected or a nonelected participant may run for a
287 term of office while participating in DROP and, if elected,
288 extend the DROP termination date accordingly, except that,
289 however, if such additional term of office exceeds the 60-month
290 limitation established in subparagraph 1., and the officer does
291 not resign from office within the such 60-month limitation, the
292 retirement and the participant’s DROP is shall be null and void
293 as provided in sub-subparagraph (c)5.d.
294 c. An elected officer who is dually employed and elects to
295 participate in DROP must shall be required to satisfy the
296 definition of termination within the 60-month or, with respect
297 to members who are instructional personnel employed by the
298 Florida School for the Deaf and the Blind and who have received
299 authorization by the Board of Trustees of the Florida School for
300 the Deaf and the Blind to participate in the DROP beyond 60
301 months, or who are instructional personnel as defined in s.
302 1012.01(2)(a)-(d) in grades K-12 and who have received
303 authorization by the district school superintendent to
304 participate in the DROP beyond 60 months, the 96-month maximum
305 participation limitation period as provided in subparagraph 1.
306 for the nonelected position and may continue employment as an
307 elected officer as provided in s. 121.053. The elected officer
308 shall will be enrolled as a renewed member in the Elected
309 Officers’ Class or the Regular Class, as provided in ss. 121.053
310 and 121.122, on the first day of the month after termination of
311 employment in the nonelected position and termination of DROP.
312 Distribution of the DROP benefits shall be made as provided in
313 paragraph (c).
314 Section 2. The Legislature finds and declares that ensuring
315 the availability of experienced law enforcement, correctional,
316 and probation officers to protect the safety and welfare of the
317 public is an important state interest. Providing such officers
318 who are members of the Florida Retirement System with an
319 opportunity to extend their employment as law enforcement
320 officers, correctional officers, or probation officers by
321 increasing the maximum participation period in the Deferred
322 Retirement Option Program will help serve that interest. Funding
323 for such retirement benefits must be made, administered, and
324 funded in an actuarially sound manner as required by s. 14,
325 Article X of the State Constitution and part VII of chapter 112,
326 Florida Statutes.
327 Section 3. This act shall take effect July 1, 2009.