Florida Senate - 2009                          SENATOR AMENDMENT
       Bill No. CS for CS for CS for SB 1182
       
       
       
       
       
       
                                Barcode 273708                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                 Floor: WD/2R          .                                
             04/30/2009 10:55 AM       .                                
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       Senator Lawson moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsections (10), (11), (18), (29), (39), (52),
    6  and (53) of section 121.021, Florida Statutes, are amended, and
    7  subsections (63) and (64) are added to that section, to read:
    8         121.021 Definitions.—The following words and phrases as
    9  used in this chapter have the respective meanings set forth
   10  unless a different meaning is plainly required by the context:
   11         (10) “Employer” means any agency, branch, department,
   12  institution, university, institution of higher education, or
   13  board of the state, or any county agency, branch, department,
   14  board, district school board, municipality, metropolitan
   15  planning organization, or special district of the state, or any
   16  city of the state which participates in the system for the
   17  benefit of certain of its employees, or a charter school or
   18  charter technical career center that participates as provided in
   19  s. 121.051(2)(d). Employers are not agents of the department,
   20  the state board, or the Division of Retirement, and the
   21  department, the state board, and the division are not
   22  responsible for erroneous information provided by
   23  representatives of employers.
   24         (11) “Officer or employee” means any person receiving
   25  salary payments for work performed in a regularly established
   26  position and, if employed by a municipality city, a metropolitan
   27  planning organization, or a special district, employed in a
   28  covered group. The term does not apply to state employees
   29  covered by a leasing agreement under s. 110.191, other public
   30  employees covered by a leasing agreement, or a co-employer
   31  relationship.
   32         (18) “Past service” of any member, as provided in s.
   33  121.081(1), means the number of years and complete months and
   34  any fractional part of a month, recognized and credited by an
   35  employer and approved by the administrator, during which the
   36  member was in the active employ of a governmental an employer
   37  and for which the employee is not entitled to a benefit before
   38  prior to his or her date of participation.
   39         (29) “Normal retirement date” means the first day of any
   40  month following the date a member attains normal retirement age
   41  and is vested, which is determined as follows one of the
   42  following statuses:
   43         (a) If a Regular Class member, a Senior Management Service
   44  Class member, or an Elected Officers’ Class the member:
   45         1. The first day of the month the member completes 6 or
   46  more years of creditable service and attains age 62; or
   47         2. The first day of the month following the date the member
   48  completes 30 years of creditable service, regardless of age,
   49  which may include a maximum of 4 years of military service
   50  credit as long as such credit is not claimed under any other
   51  system.
   52         (b) If a Special Risk Class member, the member:
   53         1. The first day of the month the member completes 6 or
   54  more years of creditable service in the Special Risk Class and
   55  attains age 55;
   56         2. The first day of the month following the date the member
   57  completes 25 years of creditable service in the Special Risk
   58  Class, regardless of age; or
   59         3. The first day of the month following the date the member
   60  completes 25 years of creditable service and attains age 52,
   61  which service may include a maximum of 4 years of military
   62  service credit as long as such credit is not claimed under any
   63  other system and the remaining years are in the Special Risk
   64  Class.
   65         (c)If a Senior Management Service Class member, the
   66  member:
   67         1.Completes 6 years of creditable service in the Senior
   68  Management Service Class and attains age 62; or
   69         2.Completes 30 years of any creditable service, regardless
   70  of age, which may include a maximum of 4 years of military
   71  service credit as long as such credit is not claimed under any
   72  other system.
   73         (d)If an Elected Officers’ Class member, the member:
   74         1.Completes 6 years of creditable service in the Elected
   75  Officers’ Class and attains age 62; or
   76         2.Completes 30 years of any creditable service, regardless
   77  of age, which may include a maximum of 4 years of military
   78  service credit as long as such credit is not claimed under any
   79  other system.
   80  
   81  “Normal retirement age” is attained on the “normal retirement
   82  date.”
   83         (39)(a) “Termination” occurs, except as provided in
   84  paragraph (b), when a member ceases all employment relationships
   85  with an employer, however: employers under this system, as
   86  defined in subsection (10), but in the event
   87         1.For termination dates occurring before July 1, 2010, if
   88  a member is should be employed by any such employer within the
   89  next calendar month, termination shall be deemed not to have
   90  occurred. A leave of absence constitutes shall constitute a
   91  continuation of the employment relationship, except that a leave
   92  of absence without pay due to disability may constitute
   93  termination for a member, if such member makes application for
   94  and is approved for disability retirement in accordance with s.
   95  121.091(4). The department or state board may require other
   96  evidence of termination as it deems necessary.
   97         2.For termination dates occurring on or after July 1,
   98  2010, if a member is employed by any such employer within the
   99  next 6 calendar months, termination shall be deemed not to have
  100  occurred. A leave of absence constitutes a continuation of the
  101  employment relationship, except that a leave of absence without
  102  pay due to disability may constitute termination if such member
  103  makes application for and is approved for disability retirement
  104  in accordance with s. 121.091(4). The department or state board
  105  may require other evidence of termination as it deems necessary.
  106         (b) “Termination” for a member electing to participate in
  107  under the Deferred Retirement Option Program occurs when the
  108  Deferred Retirement Option program participant ceases all
  109  employment relationships with an employer employers under this
  110  system in accordance with s. 121.091(13), however: but
  111         1.For termination dates occurring before July 1, 2010, if
  112  in the event the Deferred Retirement Option Program participant
  113  is should be employed by any such employer within the next
  114  calendar month, termination will be deemed not to have occurred,
  115  except as provided in s. 121.091(13)(b)4.c. A leave of absence
  116  shall constitute a continuation of the employment relationship.
  117         2.For termination dates occurring on or after July 1,
  118  2010, if the DROP participant becomes employed by any such
  119  employer within the next 6 calendar months, termination will be
  120  deemed not to have occurred, except as provided in s.
  121  121.091(13)(b)4.c. A leave of absence constitutes a continuation
  122  of the employment relationship.
  123         (52) “Regularly established position” means is defined as
  124  follows:
  125         (a) With respect to In a state employer agency, the term
  126  means a position that which is authorized and established
  127  pursuant to law and is compensated from a salaries and benefits
  128  appropriation pursuant to s. 216.011(1)(mm)(dd), or an
  129  established position that which is authorized pursuant to s.
  130  216.262(1)(a) and (b) and is compensated from a salaries account
  131  as provided in s. 216.011(1)(nn) by rule.
  132         (b) With respect to In a local employer agency (district
  133  school board, county agency, community college, city,
  134  metropolitan planning organization, charter school, charter
  135  technical career center, or special district), the term means a
  136  regularly established position that which will be in existence
  137  for a period beyond 6 consecutive months, except as provided by
  138  rule.
  139         (53) “Temporary position” means is defined as follows:
  140         (a) With respect to In a state employer agency, a the term
  141  means an employment position that which is compensated from an
  142  other personal services (OPS) account, as provided for in s.
  143  216.011(1)(dd).
  144         (b) With respect to In a local employer agency, a the term
  145  means an employment position that which will exist for less than
  146  6 consecutive months, or other employment position as determined
  147  by rule of the division, regardless of whether it will exist for
  148  6 consecutive months or longer.
  149         (63)“State board” means the State Board of Administration.
  150         (64)“Trustees” means the Board of Trustees of the State
  151  Board of Administration.
  152         Section 2. Subsection (6) is added to section 121.031,
  153  Florida Statutes, to read:
  154         121.031 Administration of system; appropriation; oaths;
  155  actuarial studies; public records.—
  156         (6)Unless prior written approval is obtained from the
  157  department or state board, any promotional materials or
  158  advertisements that, directly or indirectly, refer to the
  159  “Florida Retirement System” or the “FRS” must contain a
  160  disclaimer that the information is not approved or endorsed by
  161  the Florida Retirement System.
  162         Section 3. Paragraph (a) of subsection (1) and paragraphs
  163  (c) and (f) of subsection (2) of section 121.051, Florida
  164  Statutes, are amended to read:
  165         121.051 Participation in the system.—
  166         (1) COMPULSORY PARTICIPATION.—
  167         (a) Participation in the Florida Retirement System is The
  168  provisions of this law shall be compulsory for as to all
  169  officers and employees, except elected officers who meet the
  170  requirements of s. 121.052(3), who are employed on or after
  171  December 1, 1970, by of an employer other than those referred to
  172  in paragraph (2)(b)., and Each officer or employee, as a
  173  condition of employment, becomes shall become a member of the
  174  system on the as of his or her date of employment, except that a
  175  person who is retired from any state retirement system and is
  176  reemployed on or after December 1, 1970, may not renew his or
  177  her membership in any state retirement system except as provided
  178  in s. 121.091(4)(h) for a person who recovers from disability,
  179  and as provided in s. 121.053 s. 121.091(9)(b)8. for a person
  180  who is elected to public office, and, effective July 1, 1991, as
  181  provided in s. 121.122 for all other retirees.
  182         1. Officers and employees of the University Athletic
  183  Association, Inc., a nonprofit association connected with the
  184  University of Florida, employed on and after July 1, 1979, may
  185  shall not participate in any state-supported retirement system.
  186         2.1. Any person appointed on or after July 1, 1989, to a
  187  faculty position in a college at the J. Hillis Miller Health
  188  Center at the University of Florida or the Medical Center at the
  189  University of South Florida which has a faculty practice plan
  190  adopted provided by rule adopted by the Board of Regents may not
  191  participate in the Florida Retirement System. Effective July 1,
  192  2008, any person appointed thereafter to a faculty position,
  193  including clinical faculty, in a college at a state university
  194  that has a faculty practice plan authorized by the Board of
  195  Governors may not participate in the Florida Retirement System.
  196  A faculty member so appointed shall participate in the optional
  197  retirement program for the State University System
  198  notwithstanding the provisions of s. 121.35(2)(a).
  199         2. For purposes of this subparagraph paragraph, the term:
  200         a. “Faculty position” means is defined as a position
  201  assigned the principal responsibility of teaching, research, or
  202  public service activities or administrative responsibility
  203  directly related to the academic mission of the college. The
  204  term
  205         b. “Clinical faculty” means is defined as a faculty
  206  position appointment in conjunction with a professional position
  207  in a hospital or other clinical environment at a college. The
  208  term
  209         c. “Faculty practice plan” includes professional services
  210  to patients, institutions, or other parties which are rendered
  211  by the clinical faculty employed by a college that has a faculty
  212  practice plan at a state university authorized by the Board of
  213  Governors.
  214         (2) OPTIONAL PARTICIPATION.—
  215         (c) Employees of public community colleges or charter
  216  technical career centers sponsored by public community colleges,
  217  as designated in s. 1000.21(3), who are members of the Regular
  218  Class of the Florida Retirement System and who comply with the
  219  criteria set forth in this paragraph and in s. 1012.875 may
  220  elect, in lieu of participating in the Florida Retirement
  221  System, elect to withdraw from the Florida Retirement system
  222  altogether and participate in the State Community College System
  223  an Optional Retirement Program provided by the employing agency
  224  under s. 1012.875, to be known as the State Community College
  225  System Optional Retirement Program. Pursuant thereto:
  226         1. Through June 30, 2001, the cost to the employer for such
  227  annuity equals shall equal the normal cost portion of the
  228  employer retirement contribution which would be required if the
  229  employee were a member of the Regular Class defined benefit
  230  program, plus the portion of the contribution rate required by
  231  s. 112.363(8) which that would otherwise be assigned to the
  232  Retiree Health Insurance Subsidy Trust Fund. Effective July 1,
  233  2001, each employer shall contribute on behalf of each
  234  participant in the optional program an amount equal to 10.43
  235  percent of the participant’s gross monthly compensation. The
  236  employer shall deduct an amount to provide for the
  237  administration of the optional retirement program. The employer
  238  providing the optional program shall contribute an additional
  239  amount to the Florida Retirement System Trust Fund equal to the
  240  unfunded actuarial accrued liability portion of the Regular
  241  Class contribution rate.
  242         2. The decision to participate in such an optional
  243  retirement program is shall be irrevocable for as long as the
  244  employee holds a position eligible for participation, except as
  245  provided in subparagraph 3. Any service creditable under the
  246  Florida Retirement System is shall be retained after the member
  247  withdraws from the Florida Retirement system; however,
  248  additional service credit in the Florida Retirement system may
  249  shall not be earned while a member of the optional retirement
  250  program.
  251         3. An employee who has elected to participate in the
  252  optional retirement program shall have one opportunity, at the
  253  employee’s discretion, to choose to transfer from the optional
  254  retirement program to the defined benefit program of the Florida
  255  Retirement System or to the Public Employee Optional Retirement
  256  Program, subject to the terms of the applicable optional
  257  retirement program contracts.
  258         a. If the employee chooses to move to the Public Employee
  259  Optional Retirement Program, any contributions, interest, and
  260  earnings creditable to the employee under the State Community
  261  College System Optional Retirement Program is shall be retained
  262  by the employee in the State Community College System Optional
  263  Retirement Program, and the applicable provisions of s.
  264  121.4501(4) shall govern the election.
  265         b. If the employee chooses to move to the defined benefit
  266  program of the Florida Retirement System, the employee shall
  267  receive service credit equal to his or her years of service
  268  under the State Community College System Optional Retirement
  269  Program.
  270         (I) The cost for such credit is the shall be an amount
  271  representing the present value of the that employee’s
  272  accumulated benefit obligation for the affected period of
  273  service. The cost shall be calculated as if the benefit
  274  commencement occurs on the first date the employee becomes would
  275  become eligible for unreduced benefits, using the discount rate
  276  and other relevant actuarial assumptions that were used to value
  277  the Florida Retirement System defined benefit plan liabilities
  278  in the most recent actuarial valuation. The calculation must
  279  shall include any service already maintained under the defined
  280  benefit plan in addition to the years under the State Community
  281  College System Optional Retirement Program. The present value of
  282  any service already maintained must under the defined benefit
  283  plan shall be applied as a credit to total cost resulting from
  284  the calculation. The division shall ensure that the transfer sum
  285  is prepared using a formula and methodology certified by an
  286  enrolled actuary.
  287         (II) The employee must transfer from his or her State
  288  Community College System Optional Retirement Program account and
  289  from other employee moneys as necessary, a sum representing the
  290  present value of the that employee’s accumulated benefit
  291  obligation immediately following the time of such movement,
  292  determined assuming that attained service equals the sum of
  293  service in the defined benefit program and service in the State
  294  Community College System Optional Retirement Program.
  295         4. Participation in the optional retirement program is
  296  shall be limited to those employees who satisfy the following
  297  eligibility criteria:
  298         a. The employee must be otherwise eligible for membership
  299  or renewed membership in the Regular Class of the Florida
  300  Retirement System, as provided in s. 121.021(11) and (12) or s.
  301  121.122.
  302         b. The employee must be employed in a full-time position
  303  classified in the Accounting Manual for Florida’s Public
  304  Community Colleges as:
  305         (I) Instructional; or
  306         (II) Executive Management, Instructional Management, or
  307  Institutional Management, if a community college determines that
  308  recruiting to fill a vacancy in the position is to be conducted
  309  in the national or regional market, and:
  310         (A) the duties and responsibilities of the position include
  311  either the formulation, interpretation, or implementation of
  312  policies,; or
  313         (B)The duties and responsibilities of the position include
  314  the performance of functions that are unique or specialized
  315  within higher education and that frequently involve the support
  316  of the mission of the community college.
  317         c. The employee must be employed in a position not included
  318  in the Senior Management Service Class of the Florida Retirement
  319  System, as described in s. 121.055.
  320         5. Participants in the program are subject to the same
  321  reemployment limitations, renewed membership provisions, and
  322  forfeiture provisions as are applicable to regular members of
  323  the Florida Retirement System under ss. 121.091(9), 121.122, and
  324  121.091(5), respectively. A participant who receives a program
  325  distribution funded by employer contributions shall be deemed to
  326  be retired from a state-administered retirement system if the
  327  participant is subsequently employed with an employer that
  328  participates in the Florida Retirement System.
  329         6. Eligible community college employees are shall be
  330  compulsory members of the Florida Retirement System until,
  331  pursuant to the procedures set forth in s. 1012.875, a written
  332  election to withdraw from the Florida Retirement system and to
  333  participate in the State Community College System Optional
  334  Retirement Program is filed with the program administrator and
  335  received by the division.
  336         a. A Any community college employee whose program
  337  eligibility results from initial employment must shall be
  338  enrolled in the State Community College System Optional
  339  Retirement Program retroactive to the first day of eligible
  340  employment. The employer retirement contributions paid through
  341  the month of the employee plan change shall be transferred to
  342  the community college to for the employee’s optional program
  343  account, and, effective the first day of the next month, the
  344  employer shall pay the applicable contributions based upon
  345  subparagraph 1.
  346         b. A Any community college employee whose program
  347  eligibility is results from a change in status due to the
  348  subsequent designation of the employee’s position as one of
  349  those specified in subparagraph 4., or due to the employee’s
  350  appointment, promotion, transfer, or reclassification to a
  351  position specified in subparagraph 4., must shall be enrolled in
  352  the program on upon the first day of the first full calendar
  353  month that such change in status becomes effective. The employer
  354  retirement contributions paid from the effective date through
  355  the month of the employee plan change must shall be transferred
  356  to the community college to for the employee’s optional program
  357  account, and, effective the first day of the next month, the
  358  employer shall pay the applicable contributions based upon
  359  subparagraph 1.
  360         7. Effective July 1, 2003, through December 31, 2008, any
  361  participant of the State Community College System Optional
  362  Retirement Program who has service credit in the defined benefit
  363  plan of the Florida Retirement System for the period between his
  364  or her first eligibility to transfer from the defined benefit
  365  plan to the optional retirement program and the actual date of
  366  transfer may, during his or her employment, elect to transfer to
  367  the optional retirement program a sum representing the present
  368  value of the accumulated benefit obligation under the defined
  369  benefit retirement program for the such period of service
  370  credit. Upon such transfer, all such service credit previously
  371  earned under the defined benefit program of the Florida
  372  Retirement System during this period is shall be nullified for
  373  purposes of entitlement to a future benefit under the defined
  374  benefit program of the Florida Retirement System.
  375         (f)1. If Whenever an employer that participates in the
  376  Florida Retirement System undertakes the transfer, merger, or
  377  consolidation of governmental services or assumes the functions
  378  and activities of an employing governmental entity that was not
  379  an employer under the system, the employer must notify the
  380  department at least 60 days before prior to such action and
  381  shall provide documentation as required by the department. The
  382  transfer, merger, or consolidation of governmental services or
  383  assumption of governmental functions and activities must occur
  384  between public employers. The current or former employer may pay
  385  the employees’ past service cost, unless prohibited under this
  386  chapter. This subparagraph does not apply to the transfer,
  387  merger, or consolidation of governmental services or assumption
  388  of functions and activities of a public entity under a leasing
  389  agreement having a co-employer relationship. Employers and
  390  employees of a public governmental employer whose service is
  391  covered by a leasing agreement under s. 110.191, any other
  392  leasing agreement, or a co-employer relationship are not
  393  eligible to participate in the Florida Retirement System.
  394         2. If When the agency to which a member’s employing unit is
  395  transferred, merged, or consolidated does not participate in the
  396  Florida Retirement System, a member may shall elect in writing
  397  to remain in the Florida Retirement System or to transfer to the
  398  local retirement system operated by the such agency. If the such
  399  agency does not participate in a local retirement system, the
  400  member shall continue membership in the Florida Retirement
  401  System. In either case, the membership continues shall continue
  402  for as long as the member is employed by the agency to which his
  403  or her unit was transferred, merged, or consolidated.
  404         Section 4. Paragraph (f) of subsection (2) and paragraph
  405  (e) of subsection (3) of section 121.052, Florida Statutes, are
  406  amended to read:
  407         121.052 Membership class of elected officers.—
  408         (2) MEMBERSHIP.—The following holders of elective office,
  409  hereinafter referred to as “elected officers,” whether assuming
  410  elective office by election, reelection, or appointment, are
  411  members of the Elected Officers’ Class, except as provided in
  412  subsection (3):
  413         (f) Any elected officer of a municipality or special
  414  district assuming office on or after July 1, 1997, through June
  415  30, 2009, as provided in subsection (3) paragraph (3)(e). On or
  416  after July 1, 2010, an elected officer shall become a member
  417  only if the governing body of the municipality or special
  418  district, at the time it joins the Florida Retirement System for
  419  its elected officers, elects, by majority vote, to include all
  420  its elected positions in the Elected Officers’ Class.
  421         (3) PARTICIPATION AND WITHDRAWAL, GENERALLY.—Effective July
  422  1, 1990, participation in the Elected Officers’ Class shall be
  423  compulsory for elected officers listed in paragraphs (2)(a)-(d)
  424  and (f) assuming office on or after said date, unless the
  425  elected officer elects membership in another class or withdraws
  426  from the Florida Retirement System as provided in paragraphs
  427  (3)(a)-(d):
  428         (e) Effective July 1, 2001, The governing body of a
  429  municipality or special district may, by majority vote, elect to
  430  designate all its elected positions for inclusion in the Elected
  431  Officers’ Class.
  432         1.Effective July 1, 1997, such election must be made
  433  between July 1, 1997, and December 31, 1997, and is irrevocable.
  434  The designation of such positions is effective the first day of
  435  the month following receipt by the department of the ordinance
  436  or resolution passed by the governing body.
  437         2.Effective July 1, 2001, such election must shall be made
  438  between July 1, 2001, and December 31, 2001, and is shall be
  439  irrevocable. The designation of such positions is shall be
  440  effective the first day of the month following receipt by the
  441  department of the ordinance or resolution passed by the
  442  governing body.
  443         3. Effective July 1, 2009, such election must be made
  444  between July 1, 2009, and December 31, 2009, and is irrevocable.
  445  The designation of such positions is effective the first day of
  446  the month following receipt by the department of the ordinance
  447  or resolution passed by the governing body.
  448         Section 5. Paragraph (b) of subsection (1) of section
  449  121.053, Florida Statutes, is amended to read:
  450         121.053 Participation in the Elected Officers’ Class for
  451  retired members.—
  452         (1)
  453         (b) A Any retired member of the Florida Retirement System,
  454  or an any existing system as defined in s. 121.021(2), who, on
  455  or after July 1, 1990, serves in is serving in, or is elected or
  456  appointed to, an elective office covered by the Elected
  457  Officers’ Class shall be enrolled in the appropriate subclass of
  458  the Elected Officers’ Class of the Florida Retirement System,
  459  and applicable contributions shall be paid into the Florida
  460  Retirement System Trust Fund as provided in s. 121.052(7).
  461  Pursuant thereto:
  462         1. The Any such retired member may shall be eligible to
  463  continue to receive retirement benefits as well as compensation
  464  for the elected officer service if for as long as he or she
  465  remains in an elective office covered by the Elected Officers’
  466  Class.
  467         2. If the any such member serves in an elective office
  468  covered by the Elected Officers’ Class and becomes vested under
  469  that class, he or she is shall be entitled to receive an
  470  additional retirement benefit for the such elected officer
  471  service.
  472         3. The Such member is shall be entitled to purchase
  473  additional retirement credit in the Elected Officers’ Class for
  474  any postretirement service performed in an elected position
  475  eligible for the Elected Officers’ Class before prior to July 1,
  476  1990, or in the Regular Class for any postretirement service
  477  performed in any other regularly established position before
  478  prior to July 1, 1991, by paying the applicable Elected
  479  Officers’ Class or Regular Class employee and employer
  480  contributions for the period being claimed, plus 4 percent
  481  interest compounded annually from the first year of service
  482  claimed until July 1, 1975, and 6.5 percent interest compounded
  483  thereafter, until full payment is made to the Florida Retirement
  484  System Trust Fund. The contribution for postretirement Regular
  485  Class service between July 1, 1985, and July 1, 1991, for which
  486  the reemployed retiree contribution was paid, is shall be the
  487  difference between the such contribution and the total
  488  applicable contribution for the period being claimed, plus
  489  interest. The employer of such member may pay the applicable
  490  employer contribution in lieu of the member. If a member does
  491  not wish to claim credit for all of the postretirement service
  492  for which he or she is eligible, the service the member claims
  493  must be the most recent service. Any retiree who served in an
  494  elective office before July 1, 1990, suspended his or her
  495  retirement benefits, and had his or her Florida Retirement
  496  System membership reinstated shall, upon retirement from such
  497  office, have his or her retirement benefit recalculated to
  498  include the additional service and compensation earned.
  499         4. Creditable service for which credit was received, or
  500  which remained unclaimed, at retirement may not be claimed or
  501  applied toward service credit earned following renewed
  502  membership. However, service earned in accordance with the
  503  renewed membership provisions of in s. 121.122 may be used in
  504  conjunction with creditable service earned under this paragraph,
  505  if provided applicable vesting requirements and other existing
  506  statutory conditions required by this chapter are met.
  507         5. A member An elected officer who is elected or appointed
  508  to an elective office and is participating in the Deferred
  509  Retirement Option Program before July 1, 2010, is not subject to
  510  termination as provided in s. 121.021(39)(b), or reemployment
  511  limitations as provided in s. 121.091(9), until the end of his
  512  or her current term of office or, if the officer is
  513  consecutively elected or reelected to an elective office
  514  eligible for coverage under the Florida Retirement System, until
  515  he or she no longer holds such an elective office, as follows:
  516         a. At the end of the 60-month DROP period:
  517         (I) The officer’s DROP account may not shall accrue no
  518  additional monthly benefits, but shall continue to earn interest
  519  as provided in s. 121.091(13). However, an officer whose DROP
  520  participation begins on or after July 1, 2010, may not continue
  521  to earn interest as provided in s. 121.091(13).
  522         (II) No Retirement contributions are not shall be required
  523  of the employer of the elected officer and no additional
  524  retirement credit may not shall be earned under the Florida
  525  Retirement System.
  526         b. Nothing herein shall prevent An elected officer may from
  527  voluntarily terminate terminating his or her elective office at
  528  any time and electing to receive his or her DROP proceeds.
  529  However, until termination requirements are fulfilled as defined
  530  provided in s. 121.021(39) occurs, an any elected officer whose
  531  termination limitations are extended by this section is shall be
  532  ineligible for renewed membership in the system and may not
  533  shall receive no pension payments, DROP lump sum payments, or
  534  any other state payment other than the statutorily determined
  535  salary, travel, and per diem for the elective office.
  536         c.  Upon termination, the officer shall receive his or her
  537  accumulated DROP account, plus interest, and shall accrue and
  538  commence receiving monthly retirement benefits, which must shall
  539  be paid on a prospective basis only.
  540  
  541  However, an officer electing to participate in the Deferred
  542  Retirement Option Program on or before June 30, 2002, is shall
  543  not be required to terminate and remains shall remain subject to
  544  the provisions of this subparagraph as adopted in section 1 of
  545  chapter 2001-235, Laws of Florida.
  546         Section 6. Paragraph (f) of subsection (1) and paragraph
  547  (e) of subsection (6) of section 121.055, Florida Statutes, are
  548  amended to read:
  549         121.055 Senior Management Service Class.—There is hereby
  550  established a separate class of membership within the Florida
  551  Retirement System to be known as the “Senior Management Service
  552  Class,” which shall become effective February 1, 1987.
  553         (1)
  554         (f) Effective July 1, 1997:
  555         1. An Any elected state officer eligible for membership in
  556  the Elected Officers’ Class under s. 121.052(2)(a), (b), or (c)
  557  who elects membership in the Senior Management Service Class
  558  under s. 121.052(3)(c) may, within 6 months after assuming
  559  office or within 6 months after this act becomes a law for
  560  serving elected state officers, elect to participate in the
  561  Senior Management Service Optional Annuity Program, as provided
  562  in subsection (6), in lieu of membership in the Senior
  563  Management Service Class.
  564         2. An Any elected county officer of a local agency employer
  565  eligible for membership in the Elected Officers’ Class under s.
  566  121.052(2)(d) who elects membership in the Senior Management
  567  Service Class under s. 121.052(3)(c) may, within 6 months after
  568  assuming office, or within 6 months after this act becomes a law
  569  for serving elected county officers of a local agency employer,
  570  elect to withdraw from the Florida Retirement System participate
  571  in a lifetime monthly annuity program, as provided in
  572  subparagraph (b)2., in lieu of membership in the Senior
  573  Management Service Class.
  574         (6)
  575         (e) Benefits.—
  576         1. Benefits shall be payable under the Senior Management
  577  Service Optional Annuity Program only to participants in the
  578  program, or their beneficiaries as designated by the participant
  579  in the contract with a provider company, and such benefits shall
  580  be paid by the designated company in accordance with the terms
  581  of the annuity contract or contracts applicable to the
  582  participant. A participant must be terminated from all
  583  employment with all Florida Retirement System employers as
  584  provided in s. 121.021(39) to begin receiving the employer
  585  funded benefit. Benefits funded by employer contributions shall
  586  be payable under the terms of the contract only as a lifetime
  587  annuity to the participant, his or her beneficiary, or his or
  588  her estate, in addition to except for:
  589         a. A lump-sum payment to the beneficiary upon the death of
  590  the participant;
  591         b. A cash-out of a de minimis account upon the request of a
  592  former participant who has been terminated for a minimum of 6
  593  months from the employment that entitled him or her to optional
  594  annuity program participation. A de minimis account is an
  595  account with a provider company containing employer
  596  contributions and accumulated earnings of not more than $5,000
  597  made under the provisions of this chapter. Such cash-out must be
  598  a complete liquidation of the account balance with that company
  599  and is subject to the provisions of the Internal Revenue Code;
  600         c.A mandatory distribution of a de minimis account of a
  601  former participant who has been terminated for a minimum of 6
  602  months from the employment that entitled him or her to optional
  603  annuity program participation as authorized by the department;
  604  or
  605         d.c. A lump-sum direct rollover distribution whereby all
  606  accrued benefits, plus interest and investment earnings, are
  607  paid from the participant’s account directly to the custodian of
  608  an eligible retirement plan, as defined in s. 402(c)(8)(B) of
  609  the Internal Revenue Code, on behalf of the participant.
  610  
  611  As used in this subparagraph, a “de minimis account” means an
  612  account with a provider company containing employer
  613  contributions and accumulated earnings of not more than $5,000
  614  made under this chapter.
  615         2. The benefits payable to any person under the Senior
  616  Management Service Optional Annuity Program, and any
  617  contribution accumulated under such program, shall not be
  618  subject to assignment, execution, or attachment or to any legal
  619  process whatsoever.
  620         3. Except as provided in subparagraph 4., a participant who
  621  terminates employment and receives optional annuity program
  622  benefits funded by employer contributions shall be deemed to be
  623  retired from a state-administered retirement system in the event
  624  of subsequent employment with any employer that participates in
  625  the Florida Retirement System.
  626         4.A participant who receives optional annuity program
  627  benefits funded by employer contributions as a mandatory
  628  distribution of a de minimis account authorized by the
  629  department will not be considered a retiree.
  630         Section 7. Paragraph (a) of subsection (6) of section
  631  121.071, Florida Statutes, is amended to read:
  632         121.071 Contributions.—Contributions to the system shall be
  633  made as follows:
  634         (6)(a) Required employee contributions for all service
  635  other than current service, including, but not limited to, prior
  636  service, past service, military service, leave-of-absence
  637  service, out-of-state service, and certain non-Florida
  638  Retirement System in-state service, shall be paid by cash,
  639  personal check, cashier’s check, or money order, or a direct
  640  rollover or transfer from a qualified plan as provided under the
  641  Internal Revenue Code. The payment must only; shall be
  642  accompanied by a statement identifying the service for which
  643  payment is made; and shall be made in a lump sum for the total
  644  amount due or in annual payments of not less than $100, except
  645  for the final payment if less than $100, unless another method
  646  of payment is authorized by law or rule.
  647         Section 8. Paragraphs (a), (b), (e), (f), and (h) of
  648  subsection (1) of section 121.081, Florida Statutes, are amended
  649  to read:
  650         121.081 Past service; prior service; contributions.
  651  Conditions under which past service or prior service may be
  652  claimed and credited are:
  653         (1)(a) Past service, as defined in s. 121.021(18), may be
  654  claimed as creditable service by officers or employees of a
  655  municipality city, metropolitan planning organization, charter
  656  school, charter technical career center, or special district who
  657  that become a covered group under this system. The governing
  658  body of a covered group in compliance with s. 121.051(2)(b) may
  659  elect to provide benefits for with respect to past service
  660  earned before prior to January 1, 1975, in accordance with this
  661  chapter, and the cost for such past service is shall be
  662  established by applying the following formula: The member
  663  contribution for both regular and special risk members is shall
  664  be 4 percent of the gross annual salary for each year of past
  665  service claimed, plus 4-percent employer matching contribution,
  666  plus 4-percent interest thereon compounded annually, figured on
  667  each year of past service, with interest compounded from date of
  668  annual salary earned until July 1, 1975, and 6.5-percent
  669  interest compounded annually thereafter until date of payment.
  670  Once the total cost for a member has been figured to date, then
  671  after July 1, 1975, 6.5-percent compounded interest shall be
  672  added each June 30 thereafter on any unpaid balance until the
  673  cost of such past service liability is paid in full. The
  674  following formula shall be used in calculating past service
  675  earned before prior to January 1, 1975: (Annual gross salary
  676  multiplied by 8 percent) multiplied by the 4-percent or 6.5
  677  percent compound interest table factor, as may be applicable.
  678  The resulting product equals cost to date for each particular
  679  year of past service.
  680         (b) Past service earned after January 1, 1975, may be
  681  claimed by officers or employees of a municipality city,
  682  metropolitan planning organization, charter school, charter
  683  technical career center, or special district who become that
  684  becomes a covered group under this system. The governing body of
  685  a covered group may elect to provide benefits for with respect
  686  to past service earned after January 1, 1975, in accordance with
  687  this chapter, and the cost for such past service is shall be
  688  established by applying the following formula: The employer
  689  shall contribute an amount equal to the contribution rate in
  690  effect at the time the service was earned, multiplied by the
  691  employee’s gross salary for each year of past service claimed,
  692  plus 6.5-percent interest thereon, compounded annually, figured
  693  on each year of past service, with interest compounded from date
  694  of annual salary earned until date of payment.
  695         (e) Past service, as defined in s. 121.021(18), may be
  696  claimed as creditable service by a member of the Florida
  697  Retirement System who formerly was an officer or employee of a
  698  municipality city, metropolitan planning organization, charter
  699  school, charter technical career center, or special district,
  700  notwithstanding the status or form of the retirement system, if
  701  any, of that municipality city, metropolitan planning
  702  organization, charter school, charter technical career center,
  703  or special district and irrespective of whether such officers or
  704  employees of that city, metropolitan planning organization, or
  705  special district now or hereafter become a covered group under
  706  the Florida Retirement System. Such member may claim creditable
  707  service and be entitled to the benefits accruing to the regular
  708  class of members as provided for the past service claimed under
  709  this paragraph by paying into the retirement trust fund an
  710  amount equal to the total actuarial cost of providing the
  711  additional benefit resulting from such past-service credit,
  712  discounted by the applicable actuarial factors to date of
  713  retirement.
  714         (f) If When any person, either prior to this act or
  715  hereafter, becomes entitled to and participates does participate
  716  in one of the retirement systems under consolidated within or
  717  created by this chapter through the consolidation or merger of
  718  governments or the transfer of functions between units of
  719  government, either at the state or local level or between state
  720  and local units, or through the assumption of functions or
  721  activities by a state or local unit from an employing
  722  governmental entity that which was not an employer under the
  723  system, and such person becomes a member of the Florida
  724  Retirement System, such person is shall be entitled to receive
  725  past-service credit as defined in s. 121.021(18) for the time
  726  the such person performed services for, and was an employee of,
  727  such state or local unit or other governmental employing entity
  728  before prior to the transfer, merger, consolidation, or
  729  assumption of functions and activities. Past-service credit
  730  allowed by this paragraph is shall also be available to any
  731  person who becomes a member of an existing system before, as
  732  defined in s. 121.021(2), prior to December 1, 1970, through the
  733  transfer, merger, consolidation, or assumption of functions and
  734  activities set forth in this paragraph and who subsequently
  735  becomes a member of the Florida Retirement System. However,
  736  credit for the past service may not be granted until
  737  contributions are made in the manner provided in this
  738  subsection. If a person rejected Florida Retirement System
  739  membership at the time of the transfer, merger, or
  740  consolidation, or assumption of governmental functions and
  741  activities, the required contributions shall be at total
  742  actuarial cost as specified in paragraph (e). Such contributions
  743  or accrued interest may not be paid from any public state funds.
  744         (h) The following provisions apply to the purchase of past
  745  service:
  746         1. Notwithstanding any of the provisions of this
  747  subsection, past-service credit may not be purchased under this
  748  chapter for any service that is used to obtain a pension or
  749  benefit from a any local retirement system. Eligibility to
  750  receive or the receipt of contributions to a retirement plan
  751  made by the employer on behalf of the employee is considered a
  752  benefit.
  753         2. A member may not receive past service credit under
  754  paragraphs (a), (b), (e), or (f) for any leaves of absence
  755  without pay, except that credit for active military service
  756  leaves of absence may be claimed under paragraphs (a), (b), and
  757  (f), in accordance with s. 121.111(1).
  758         3.A member may not receive past service credit for co
  759  employer service. Co-employer service or a co-employer
  760  relationship is employment in a single position simultaneously
  761  covered and reported by both a public employer and a private
  762  employer.
  763         4.3. If a member does not want desire to receive credit for
  764  all of his or her past service, the period the member claims
  765  must be the most recent past service prior to his or her
  766  participation in the Florida Retirement System.
  767         5.4. The cost of past service purchased by an employing
  768  agency for its employees may be amortized over the such period
  769  of time as is provided in the agreement, but not to exceed 15
  770  years, calculated in accordance with rule 60S-1.007(5)(f),
  771  Florida Administrative Code.
  772         6.5. The retirement account of each member for whom past
  773  service is being provided by his or her employer shall be
  774  credited with all past service the employer agrees to purchase
  775  as soon as the agreement between the employer and the department
  776  is executed. Pursuant thereto:
  777         a. Each such member’s account shall also be posted with the
  778  total contribution his or her employer agrees to make on in the
  779  member’s behalf for past service earned before prior to October
  780  1, 1975, excluding those contributions representing the
  781  employer’s matching share and the compound interest calculation
  782  on the total contribution. However, a portion of any
  783  contributions paid by an employer for past service credit earned
  784  on and after October 1, 1975, may not be posted to the a
  785  member’s account.
  786         b. A refund of contributions payable after an employer has
  787  made a written agreement to purchase past service for employees
  788  of the covered group includes shall include contributions for
  789  past service which are posted to the a member’s account.
  790  However, contributions for past service earned on and after
  791  October 1, 1975, are not refundable.
  792         Section 9. Subsections (9), (13), and (14) of section
  793  121.091, Florida Statutes, are amended to read:
  794         121.091 Benefits payable under the system.—Benefits may not
  795  be paid under this section unless the member has terminated
  796  employment as provided in s. 121.021(39)(a) or begun
  797  participation in the Deferred Retirement Option Program as
  798  provided in subsection (13), and a proper application has been
  799  filed in the manner prescribed by the department. The department
  800  may cancel an application for retirement benefits when the
  801  member or beneficiary fails to timely provide the information
  802  and documents required by this chapter and the department’s
  803  rules. The department shall adopt rules establishing procedures
  804  for application for retirement benefits and for the cancellation
  805  of such application when the required information or documents
  806  are not received.
  807         (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
  808         (a) Any person who is retired under this chapter, except
  809  under the disability retirement provisions of subsection (4),
  810  may be employed by an employer that does not participate in a
  811  state-administered retirement system and may receive
  812  compensation from that employment without limiting or
  813  restricting in any way the retirement benefits payable to that
  814  person.
  815         (b)1. Any person whose retirement is effective before July
  816  1, 2010, or whose participation in the Deferred Retirement
  817  Option Program terminates before July 1, 2010, who is retired
  818  under this chapter, except under the disability retirement
  819  provisions of subsection (4) or as provided in s. 121.053, may
  820  be reemployed by an any private or public employer that
  821  participates in a state-administered retirement system after
  822  retirement and receive retirement benefits and compensation from
  823  that his or her employer without any limitations, except that
  824  the a person may not be reemployed by an employer receive both a
  825  salary from reemployment with any agency participating in the
  826  Florida Retirement System and retirement benefits under this
  827  chapter for a period of 12 calendar months immediately
  828  subsequent to the date of retirement. However, a DROP
  829  participant shall continue employment and receive a salary
  830  during the period of participation in the Deferred Retirement
  831  Option Program, as provided in subsection (13).
  832         1.2.A retiree Any person to whom the limitation in
  833  subparagraph 1. applies who violates such reemployment
  834  limitation and who is reemployed with any agency participating
  835  in the Florida Retirement System before completion of the 12
  836  month limitation period must shall give timely notice of this
  837  fact in writing to the employer and to the Division of
  838  Retirement or the state board and shall have his or her
  839  retirement benefits suspended for the balance of the 12-month
  840  limitation period. A retiree Any person employed in violation of
  841  this paragraph and an employer who any employing agency which
  842  knowingly employs or appoints such person are without notifying
  843  the Division of Retirement to suspend retirement benefits shall
  844  be jointly and severally liable for reimbursement to the
  845  retirement trust fund, including the Florida Retirement Systme
  846  Trust Fund and the Public employee Optional Retirement Program
  847  Trust Fund, from which the benefits were paid of any benefits
  848  paid during the reemployment limitation period. The employer
  849  must To avoid liability, such employing agency shall have a
  850  written statement from the retiree that he or she is not retired
  851  from a state-administered retirement system. Any retirement
  852  benefits received while reemployed during this reemployment
  853  limitation period shall be repaid to the retirement trust fund,
  854  and Retirement benefits shall remain suspended until such
  855  repayment has been made. Benefits suspended beyond the
  856  reemployment limitation shall apply toward repayment of benefits
  857  received in violation of the reemployment limitation.
  858         a.3. A district school board may reemploy a retiree retired
  859  member as a substitute or hourly teacher, education
  860  paraprofessional, transportation assistant, bus driver, or food
  861  service worker on a noncontractual basis after he or she has
  862  been retired for 1 calendar month, in accordance with s.
  863  121.021(39). A district school board may reemploy a retiree
  864  retired member as instructional personnel, as defined in s.
  865  1012.01(2)(a), on an annual contractual basis after he or she
  866  has been retired for 1 calendar month, in accordance with s.
  867  121.021(39). Any other retired member who is reemployed within 1
  868  calendar month after retirement shall void his or her
  869  application for retirement benefits. District school boards
  870  reemploying such teachers, education paraprofessionals,
  871  transportation assistants, bus drivers, or food service workers
  872  are subject to the retirement contribution required by
  873  subparagraph 2. 7.
  874         b.4. A community college board of trustees may reemploy a
  875  retiree retired member as an adjunct instructor, that is, an
  876  instructor who is noncontractual and part-time, or as a
  877  participant in a phased retirement program within the Florida
  878  Community College System, after he or she has been retired for 1
  879  calendar month, in accordance with s. 121.021(39). A Any retired
  880  member who is reemployed within 1 calendar month after
  881  retirement shall void his or her application for retirement
  882  benefits. Boards of trustees reemploying such instructors are
  883  subject to the retirement contribution required in subparagraph
  884  2. 7. A retiree retired member may be reemployed as an adjunct
  885  instructor for no more than 780 hours during the first 12 months
  886  of retirement. A retiree Any retired member reemployed for more
  887  than 780 hours during the first 12 months of retirement must
  888  shall give timely notice in writing to the employer and to the
  889  Division of Retirement or the state board of the date he or she
  890  will exceed the limitation. The division shall suspend his or
  891  her retirement benefits for the remainder of the first 12 months
  892  of retirement. Any retiree person employed in violation of this
  893  sub-subparagraph subparagraph and any employer who employing
  894  agency which knowingly employs or appoints such person without
  895  notifying the division of Retirement to suspend retirement
  896  benefits are shall be jointly and severally liable for
  897  reimbursement to the retirement trust fund of any benefits paid
  898  during the reemployment limitation period. The employer must To
  899  avoid liability, such employing agency shall have a written
  900  statement from the retiree that he or she is not retired from a
  901  state-administered retirement system. Any retirement benefits
  902  received by the retiree a retired member while reemployed in
  903  excess of 780 hours during the first 12 months of retirement
  904  must shall be repaid to the Florida Retirement System Trust
  905  Fund, and retirement benefits shall remain suspended until
  906  repayment is made. Benefits suspended beyond the end of the
  907  retiree’s retired member’s first 12 months of retirement shall
  908  apply toward repayment of benefits received in violation of the
  909  780-hour reemployment limitation.
  910         c.5. The State University System may reemploy a retiree
  911  retired member as an adjunct faculty member or as a participant
  912  in a phased retirement program within the State University
  913  System after the retiree retired member has been retired for 1
  914  calendar month, in accordance with s. 121.021(39). A Any retired
  915  member who is reemployed within 1 calendar month after
  916  retirement shall void his or her application for retirement
  917  benefits. The State University System is subject to the retired
  918  contribution required in subparagraph 2. 7., as appropriate. A
  919  retiree retired member may be reemployed as an adjunct faculty
  920  member or a participant in a phased retirement program for no
  921  more than 780 hours during the first 12 months of his or her
  922  retirement. A retiree Any retired member reemployed for more
  923  than 780 hours during the first 12 months of retirement must
  924  shall give timely notice in writing to the employer and to the
  925  Division of Retirement or the state board of the date he or she
  926  will exceed the limitation. The division shall suspend his or
  927  her retirement benefits for the remainder of the first 12 months
  928  of retirement. Any retiree person employed in violation of this
  929  sub-subparagraph subparagraph and any employer who employing
  930  agency which knowingly employs or appoints such person without
  931  notifying the division of Retirement to suspend retirement
  932  benefits are shall be jointly and severally liable for
  933  reimbursement to the retirement trust fund of any benefits paid
  934  during the reemployment limitation period. The employer must To
  935  avoid liability, such employing agency shall have a written
  936  statement from the retiree that he or she is not retired from a
  937  state-administered retirement system. Any retirement benefits
  938  received by the retiree a retired member while reemployed in
  939  excess of 780 hours during the first 12 months of retirement
  940  must shall be repaid to the Florida Retirement System Trust
  941  Fund, and retirement benefits shall remain suspended until
  942  repayment is made. Benefits suspended beyond the end of the
  943  retiree’s retired member’s first 12 months of retirement shall
  944  apply toward repayment of benefits received in violation of the
  945  780-hour reemployment limitation.
  946         d.6. The Board of Trustees of the Florida School for the
  947  Deaf and the Blind may reemploy a retiree retired member as a
  948  substitute teacher, substitute residential instructor, or
  949  substitute nurse on a noncontractual basis after he or she has
  950  been retired for 1 calendar month, in accordance with s.
  951  121.021(39). Any retired member who is reemployed within 1
  952  calendar month after retirement shall void his or her
  953  application for retirement benefits. The Board of Trustees of
  954  the Florida School for the Deaf and the Blind reemploying such
  955  teachers, residential instructors, or nurses is subject to the
  956  retirement contribution required by subparagraph 2. 7.
  957  Reemployment of a retired member as a substitute teacher,
  958  substitute residential instructor, or substitute nurse is
  959  limited to 780 hours during the first 12 months of his or her
  960  retirement. Any retired member reemployed for more than 780
  961  hours during the first 12 months of retirement shall give timely
  962  notice in writing to the employer and to the division of the
  963  date he or she will exceed the limitation. The division shall
  964  suspend his or her retirement benefits for the remainder of the
  965  first 12 months of retirement. Any person employed in violation
  966  of this subparagraph and any employing agency which knowingly
  967  employs or appoints such person without notifying the division
  968  of Retirement to suspend retirement benefits shall be jointly
  969  and severally liable for reimbursement to the retirement trust
  970  fund of any benefits paid during the reemployment limitation
  971  period. To avoid liability, such employing agency shall have a
  972  written statement from the retiree that he or she is not retired
  973  from a state-administered retirement system. Any retirement
  974  benefits received by a retired member while reemployed in excess
  975  of 780 hours during the first 12 months of retirement shall be
  976  repaid to the Retirement System Trust Fund, and his or her
  977  retirement benefits shall remain suspended until payment is
  978  made. Benefits suspended beyond the end of the retired member’s
  979  first 12 months of retirement shall apply toward repayment of
  980  benefits received in violation of the 780-hour reemployment
  981  limitation.
  982         e.A developmental research school may reemploy a retiree
  983  as a substitute or hourly teacher or an education
  984  paraprofessional as defined in s. 1012.01(2) on a noncontractual
  985  basis after he or she has been retired for 1 calendar month. A
  986  developmental research school may reemploy a retiree as
  987  instructional personnel, as defined in s. 1012.01(2)(a), on an
  988  annual contractual basis after he or she has been retired for 1
  989  calendar month after retirement. Any member who is reemployed
  990  within 1 calendar month voids his or her application for
  991  retirement benefits. A developmental research school that
  992  reemploys retired teachers and education paraprofessionals is
  993  subject to the retirement contribution required by subparagraph
  994  2.
  995         f.A charter school may reemploy a retiree as a substitute
  996  or hourly teacher on a noncontractual basis after he or she has
  997  been retired for 1 calendar month. A charter school may reemploy
  998  a retired member as instructional personnel, as defined in s.
  999  1012.01(2)(a), on an annual contractual basis after he or she
 1000  has been retired for 1 calendar month after retirement. Any
 1001  member who is reemployed within 1 calendar month voids his or
 1002  her application for retirement benefits. A charter school that
 1003  reemploys such teachers is subject to the retirement
 1004  contribution required by subparagraph 2.
 1005         2.7.  The employment by an employer of a any retiree or
 1006  DROP participant of a any state-administered retirement system
 1007  does not affect shall have no effect on the average final
 1008  compensation or years of creditable service of the retiree or
 1009  DROP participant. Before Prior to July 1, 1991, upon employment
 1010  of any person, other than an elected officer as provided in s.
 1011  121.053, who is has been retired under a any state-administered
 1012  retirement program, the employer shall pay retirement
 1013  contributions in an amount equal to the unfunded actuarial
 1014  liability portion of the employer contribution which would be
 1015  required for regular members of the Florida Retirement System.
 1016  Effective July 1, 1991, contributions shall be made as provided
 1017  in s. 121.122 for retirees who have with renewed membership or,
 1018  as provided in subsection (13), for with respect to DROP
 1019  participants.
 1020         8.Any person who has previously retired and who is holding
 1021  an elective public office or an appointment to an elective
 1022  public office eligible for the Elected Officers’ Class on or
 1023  after July 1, 1990, shall be enrolled in the Florida Retirement
 1024  System as provided in s. 121.053(1)(b) or, if holding an
 1025  elective public office that does not qualify for the Elected
 1026  Officers’ Class on or after July 1, 1991, shall be enrolled in
 1027  the Florida Retirement System as provided in s. 121.122, and
 1028  shall continue to receive retirement benefits as well as
 1029  compensation for the elected officer’s service for as long as he
 1030  or she remains in elective office. However, any retired member
 1031  who served in an elective office prior to July 1, 1990,
 1032  suspended his or her retirement benefit, and had his or her
 1033  Florida Retirement System membership reinstated shall, upon
 1034  retirement from such office, have his or her retirement benefit
 1035  recalculated to include the additional service and compensation
 1036  earned.
 1037         3.9. Any person who is holding an elective public office
 1038  which is covered by the Florida Retirement System and who is
 1039  concurrently employed in nonelected covered employment may elect
 1040  to retire while continuing employment in the elective public
 1041  office if, provided that he or she terminates shall be required
 1042  to terminate his or her nonelected covered employment. Such Any
 1043  person who exercises this election shall receive his or her
 1044  retirement benefits in addition to the compensation of the
 1045  elective office without regard to the time limitations otherwise
 1046  provided in this subsection. A No person who seeks to exercise
 1047  the provisions of this subparagraph, as they the same existed
 1048  before prior to May 3, 1984, may not be shall be deemed to be
 1049  retired under those provisions, unless such person is eligible
 1050  to retire under the provisions of this subparagraph, as amended
 1051  by chapter 84-11, Laws of Florida.
 1052         10.The limitations of this paragraph apply to reemployment
 1053  in any capacity with an “employer” as defined in s. 121.021(10),
 1054  irrespective of the category of funds from which the person is
 1055  compensated.
 1056         11.An employing agency may reemploy a retired member as a
 1057  firefighter or paramedic after the retired member has been
 1058  retired for 1 calendar month, in accordance with s. 121.021(39).
 1059  Any retired member who is reemployed within 1 calendar month
 1060  after retirement shall void his or her application for
 1061  retirement benefits. The employing agency reemploying such
 1062  firefighter or paramedic is subject to the retired contribution
 1063  required in subparagraph 8. Reemployment of a retired
 1064  firefighter or paramedic is limited to no more than 780 hours
 1065  during the first 12 months of his or her retirement. Any retired
 1066  member reemployed for more than 780 hours during the first 12
 1067  months of retirement shall give timely notice in writing to the
 1068  employer and to the division of the date he or she will exceed
 1069  the limitation. The division shall suspend his or her retirement
 1070  benefits for the remainder of the first 12 months of retirement.
 1071  Any person employed in violation of this subparagraph and any
 1072  employing agency which knowingly employs or appoints such person
 1073  without notifying the Division of Retirement to suspend
 1074  retirement benefits shall be jointly and severally liable for
 1075  reimbursement to the Retirement System Trust Fund of any
 1076  benefits paid during the reemployment limitation period. To
 1077  avoid liability, such employing agency shall have a written
 1078  statement from the retiree that he or she is not retired from a
 1079  state-administered retirement system. Any retirement benefits
 1080  received by a retired member while reemployed in excess of 780
 1081  hours during the first 12 months of retirement shall be repaid
 1082  to the Retirement System Trust Fund, and retirement benefits
 1083  shall remain suspended until repayment is made. Benefits
 1084  suspended beyond the end of the retired member’s first 12 months
 1085  of retirement shall apply toward repayment of benefits received
 1086  in violation of the 780-hour reemployment limitation.
 1087         (c)Any person whose retirement is effective on or after
 1088  July 1, 2010, or whose participation in the Deferred Retirement
 1089  Option Program terminates on or after July 1, 2010, except as
 1090  provided under the disability retirement provisions of
 1091  subsection (4) or under s. 121.053, may be reemployed by an
 1092  employer that participates in a state-administered retirement
 1093  system and receive retirement benefits and compensation from
 1094  that his or her employer without limitation, except that the
 1095  person may not be reemployed by an employer participating in the
 1096  Florida Retirement System for 6 calendar months immediately
 1097  subsequent to the date of retirement. However, a DROP
 1098  participant shall continue employment and receive a salary
 1099  during the period of participation in the Deferred Retirement
 1100  Option Program, as provided in subsection (13). A retiree
 1101  initially reemployed in violation of this paragraph and an
 1102  employer that employs or appoints such person are jointly and
 1103  severally liable for reimbursement of any retirement benefits
 1104  paid to the retirement trust fund from which the benefits were
 1105  paid, including the Florida Retirement System Trust Fund and the
 1106  Public Employee Optional Retirement Program Trust Fund, as
 1107  appropriate. The employer must have a written statement from the
 1108  employee that he or she is not retired from a state-administered
 1109  retirement system.
 1110         (d)(c) The provisions of this subsection apply to retirees,
 1111  as defined in s. 121.4501(2)(j), of the Public Employee Optional
 1112  Retirement Program created in part II, subject to the following
 1113  conditions:
 1114         1. The Such retirees may not be reemployed with an employer
 1115  participating in the Florida Retirement System as provided in
 1116  paragraph (b) until such person has been retired for 6 3
 1117  calendar months, unless the participant has reached the normal
 1118  retirement requirements of the defined benefit plan as provided
 1119  in s. 121.021(29).
 1120         2. A Such retiree employed in violation of this subsection
 1121  and an employer any employing agency that knowingly employs or
 1122  appoints such person are shall be jointly and severally liable
 1123  for reimbursement of any benefits paid to the retirement trust
 1124  fund from which the benefits were paid, including the Retirement
 1125  System Trust Fund and the Public Employee Optional Retirement
 1126  Program Trust Fund, as appropriate. The employer To avoid
 1127  liability, such employing agency must have a written statement
 1128  from the retiree that he or she is not retired from a state
 1129  administered retirement system.
 1130         (e)The limitations of this subsection apply to
 1131  reemployment in any capacity irrespective of the category of
 1132  funds from which the person is compensated.
 1133         (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
 1134  subject to the provisions of this section, the Deferred
 1135  Retirement Option Program, hereinafter referred to as the DROP,
 1136  is a program under which an eligible member of the Florida
 1137  Retirement System may elect to participate, deferring receipt of
 1138  retirement benefits while continuing employment with his or her
 1139  Florida Retirement System employer. The deferred monthly
 1140  benefits shall accrue in the Florida Retirement System Trust
 1141  Fund on behalf of the participant, plus interest compounded
 1142  monthly, for the specified period of the DROP participation, as
 1143  provided in paragraph (c). Upon termination of employment, the
 1144  participant shall receive the total DROP benefits and begin to
 1145  receive the previously determined normal retirement benefits.
 1146  Participation in the DROP does not guarantee employment for the
 1147  specified period of DROP. Participation in the DROP by an
 1148  eligible member beyond the initial 60-month period as authorized
 1149  in this subsection shall be on an annual contractual basis for
 1150  all participants.
 1151         (a) Eligibility of member to participate in the DROP.—All
 1152  active Florida Retirement System members in a regularly
 1153  established position, and all active members of either the
 1154  Teachers’ Retirement System established in chapter 238 or the
 1155  State and County Officers’ and Employees’ Retirement System
 1156  established in chapter 122, which systems are consolidated
 1157  within the Florida Retirement System under s. 121.011, are
 1158  eligible to elect participation in the DROP if provided that:
 1159         1. The member is not a renewed member of the Florida
 1160  Retirement System under s. 121.122, or a member of the State
 1161  Community College System Optional Retirement Program under s.
 1162  121.051, the Senior Management Service Optional Annuity Program
 1163  under s. 121.055, or the optional retirement program for the
 1164  State University System under s. 121.35.
 1165         2. Except as provided in subparagraph 6., election to
 1166  participate is made within 12 months immediately following the
 1167  date on which the member first reaches normal retirement date,
 1168  or, for a member who reaches normal retirement date based on
 1169  service before he or she reaches age 62, or age 55 for Special
 1170  Risk Class members, election to participate may be deferred to
 1171  the 12 months immediately following the date the member attains
 1172  57, or age 52 for Special Risk Class members. A member who
 1173  delays DROP participation during the 12-month period immediately
 1174  following his or her maximum DROP deferral date, except as
 1175  provided in subparagraph 6., loses a month of DROP participation
 1176  for each month delayed. For a member who first reached normal
 1177  retirement date or the deferred eligibility date described above
 1178  prior to the effective date of this section, election to
 1179  participate shall be made within 12 months after the effective
 1180  date of this section. A member who fails to make an election
 1181  within the such 12-month limitation period forfeits shall
 1182  forfeit all rights to participate in the DROP. The member shall
 1183  advise his or her employer and the division in writing of the
 1184  date on which the DROP begins shall begin. The Such beginning
 1185  date may be subsequent to the 12-month election period, but must
 1186  be within the original 60-month participation or, with respect
 1187  to members who are instructional personnel employed by the
 1188  Florida School for the Deaf and the Blind and who have received
 1189  authorization by the Board of Trustees of the Florida School for
 1190  the Deaf and the Blind to participate in the DROP beyond 60
 1191  months, or who are instructional personnel as defined in s.
 1192  1012.01(2)(a)-(d) in grades K-12 and who have received
 1193  authorization by the district school superintendent to
 1194  participate in the DROP beyond 60 months, the 96-month
 1195  limitation period as provided in subparagraph (b)1. When
 1196  establishing eligibility of the member to participate in the
 1197  DROP for the 60-month or, with respect to members who are
 1198  instructional personnel employed by the Florida School for the
 1199  Deaf and the Blind and who have received authorization by the
 1200  Board of Trustees of the Florida School for the Deaf and the
 1201  Blind to participate in the DROP beyond 60 months, or who are
 1202  instructional personnel as defined in s. 1012.01(2)(a)-(d) in
 1203  grades K-12 and who have received authorization by the district
 1204  school superintendent to participate in the DROP beyond 60
 1205  months, the 96-month maximum participation period, the member
 1206  may elect to include or exclude any optional service credit
 1207  purchased by the member from the total service used to establish
 1208  the normal retirement date. A member who has with dual normal
 1209  retirement dates is shall be eligible to elect to participate in
 1210  DROP within 12 months after attaining normal retirement date in
 1211  either class.
 1212         3. The employer of a member electing to participate in the
 1213  DROP, or employers if dually employed, shall acknowledge in
 1214  writing to the division the date the member’s participation in
 1215  the DROP begins and the date the member’s employment and DROP
 1216  participation will terminate.
 1217         4. Simultaneous employment of a participant by additional
 1218  Florida Retirement System employers subsequent to the
 1219  commencement of participation in the DROP is shall be
 1220  permissible if provided such employers acknowledge in writing a
 1221  DROP termination date no later than the participant’s existing
 1222  termination date or the maximum participation 60-month
 1223  limitation period as provided in subparagraph (b)1.
 1224         5. A DROP participant may change employers while
 1225  participating in the DROP, subject to the following:
 1226         a. A change of employment must take place without a break
 1227  in service so that the member receives salary for each month of
 1228  continuous DROP participation. If a member receives no salary
 1229  during a month, DROP participation shall cease unless the
 1230  employer verifies a continuation of the employment relationship
 1231  for such participant pursuant to s. 121.021(39)(b).
 1232         b. Such participant and new employer shall notify the
 1233  division of the identity of the new employer on forms required
 1234  by the division as to the identity of the new employer.
 1235         c. The new employer shall acknowledge, in writing, the
 1236  participant’s DROP termination date, which may be extended but
 1237  not beyond the maximum participation original 60-month or, with
 1238  respect to members who are instructional personnel employed by
 1239  the Florida School for the Deaf and the Blind and who have
 1240  received authorization by the Board of Trustees of the Florida
 1241  School for the Deaf and the Blind to participate in the DROP
 1242  beyond 60 months, or who are instructional personnel as defined
 1243  in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
 1244  authorization by the district school superintendent to
 1245  participate in the DROP beyond 60 months, the 96-month period
 1246  provided in subparagraph (b)1., shall acknowledge liability for
 1247  any additional retirement contributions and interest required if
 1248  the participant fails to timely terminate employment, and is
 1249  shall be subject to the adjustment required in sub-subparagraph
 1250  (c)5.d.
 1251         6. Effective July 1, 2001, for instructional personnel as
 1252  defined in s. 1012.01(2), election to participate in the DROP
 1253  may shall be made at any time following the date on which the
 1254  member first reaches normal retirement date. The member shall
 1255  advise his or her employer and the division in writing of the
 1256  date on which DROP begins the Deferred Retirement Option Program
 1257  shall begin. When establishing eligibility of the member to
 1258  participate in the DROP for the 60-month or, with respect to
 1259  members who are instructional personnel employed by the Florida
 1260  School for the Deaf and the Blind and who have received
 1261  authorization by the Board of Trustees of the Florida School for
 1262  the Deaf and the Blind to participate in the DROP beyond 60
 1263  months, or who are instructional personnel as defined in s.
 1264  1012.01(2)(a)-(d) in grades K-12 and who have received
 1265  authorization by the district school superintendent to
 1266  participate in the DROP beyond 60 months, the 96-month maximum
 1267  participation period, as provided in subparagraph (b)1., the
 1268  member may elect to include or exclude any optional service
 1269  credit purchased by the member from the total service used to
 1270  establish the normal retirement date. A member who has with dual
 1271  normal retirement dates is shall be eligible to elect to
 1272  participate in either class.
 1273         (b) Participation in the DROP.—
 1274         1. An eligible member may elect to participate in the DROP
 1275  for a period not to exceed a maximum of 60 calendar months.
 1276  However, or, with respect to members who are instructional
 1277  personnel employed by the Florida School for the Deaf and the
 1278  Blind and authorized who have received authorization by the
 1279  Board of Trustees of the Florida School for the Deaf and the
 1280  Blind to participate in the DROP beyond 60 months, or who are
 1281  instructional personnel as defined in s. 1012.01(2)(a)-(d) in
 1282  grades K-12 and authorized who have received authorization by
 1283  the district school superintendent to participate in the DROP
 1284  beyond 60 calendar months, or who are instructional personnel as
 1285  defined in s. 1012.01(2)(a) employed by a developmental research
 1286  school and authorized by the school’s director, or if the school
 1287  has no director, by the school’s principal, may participate in
 1288  DROP for up to 36 calendar months beyond the 60-month period. 96
 1289  calendar months immediately following the date on which the
 1290  member first reaches his or her normal retirement date or the
 1291  date to which he or she is eligible to defer his or her election
 1292  to participate as provided in subparagraph (a)2. However, a
 1293  member who has reached normal retirement date prior to the
 1294  effective date of the DROP shall be eligible to participate in
 1295  the DROP for a period of time not to exceed 60 calendar months
 1296  or, with respect to members who are instructional personnel
 1297  employed by the Florida School for the Deaf and the Blind and
 1298  who have received authorization by the Board of Trustees of the
 1299  Florida School for the Deaf and the Blind to participate in the
 1300  DROP beyond 60 months, or who are instructional personnel as
 1301  defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
 1302  received authorization by the district school superintendent to
 1303  participate in the DROP beyond 60 calendar months, 96 calendar
 1304  months immediately following the effective date of the DROP,
 1305  except a member of the Special Risk Class who has reached normal
 1306  retirement date prior to the effective date of the DROP and
 1307  whose total accrued value exceeds 75 percent of average final
 1308  compensation as of his or her effective date of retirement shall
 1309  be eligible to participate in the DROP for no more than 36
 1310  calendar months immediately following the effective date of the
 1311  DROP.
 1312         2. Upon deciding to participate in the DROP, the member
 1313  shall submit, on forms required by the division:
 1314         a. A written election to participate in the DROP;
 1315         b. Selection of the DROP participation and termination
 1316  dates that, which satisfy the limitations stated in paragraph
 1317  (a) and subparagraph 1. The Such termination date must shall be
 1318  in a binding letter of resignation to with the employer,
 1319  establishing a deferred termination date. The member may change
 1320  the termination date within the limitations of subparagraph 1.,
 1321  but only with the written approval of the his or her employer;
 1322         c. A properly completed DROP application for service
 1323  retirement as provided in this section; and
 1324         d. Any other information required by the division.
 1325         3. The DROP participant is shall be a retiree under the
 1326  Florida Retirement System for all purposes, except for paragraph
 1327  (5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
 1328  and 121.122. DROP participation is final and may not be canceled
 1329  by the participant after the first payment is credited during
 1330  the DROP participation period. However, participation in the
 1331  DROP does not alter the participant’s employment status, and the
 1332  member is such employee shall not be deemed retired from
 1333  employment until his or her deferred resignation is effective
 1334  and termination occurs as provided in s. 121.021(39).
 1335         4. Elected officers are shall be eligible to participate in
 1336  the DROP subject to the following:
 1337         a. An elected officer who reaches normal retirement date
 1338  during a term of office may defer the election to participate in
 1339  the DROP until the next succeeding term in that office. An Such
 1340  elected officer who exercises this option may participate in the
 1341  DROP for up to 60 calendar months or a period of no longer than
 1342  the such succeeding term of office, whichever is less.
 1343         b. An elected or a nonelected participant may run for a
 1344  term of office while participating in DROP and, if elected,
 1345  extend the DROP termination date accordingly;, except, however,
 1346  if such additional term of office exceeds the 60-month
 1347  limitation established in subparagraph 1., and the officer does
 1348  not resign from office within such 60-month limitation, the
 1349  retirement and the participant’s DROP is shall be null and void
 1350  as provided in sub-subparagraph (c)5.d.
 1351         c. An elected officer who is dually employed and elects to
 1352  participate in DROP must meet shall be required to satisfy the
 1353  definition of termination in s. 121.021(39) within the original
 1354  60-month period or maximum participation, with respect to
 1355  members who are instructional personnel employed by the Florida
 1356  School for the Deaf and the Blind and who have received
 1357  authorization by the Board of Trustees of the Florida School for
 1358  the Deaf and the Blind to participate in the DROP beyond 60
 1359  months, or who are instructional personnel as defined in s.
 1360  1012.01(2)(a)-(d) in grades K-12 and who have received
 1361  authorization by the district school superintendent to
 1362  participate in the DROP beyond 60 months, the 96-month
 1363  limitation period as provided in subparagraph 1. for the
 1364  nonelected position and may continue employment as an elected
 1365  officer as provided in s. 121.053. The elected officer shall
 1366  will be enrolled as a renewed member in the Elected Officers’
 1367  Class or the Regular Class, as provided in ss. 121.053 and
 1368  121.122, on the first day of the month after termination of
 1369  employment in the nonelected position and termination of DROP.
 1370  Distribution of the DROP benefits shall be made as provided in
 1371  paragraph (c).
 1372         (c) Benefits payable under the DROP.—
 1373         1. Effective on with the date of DROP participation, the
 1374  member’s initial normal monthly benefit, including creditable
 1375  service, optional form of payment, and average final
 1376  compensation, and the effective date of retirement are shall be
 1377  fixed. The beneficiary established under the Florida Retirement
 1378  System is shall be the beneficiary eligible to receive any DROP
 1379  benefits payable if the DROP participant dies before completing
 1380  prior to the completion of the period of DROP participation. If
 1381  In the event a joint annuitant predeceases the member, the
 1382  member may name a beneficiary to receive accumulated DROP
 1383  benefits payable. The Such retirement benefit, the annual cost
 1384  of living adjustments provided in s. 121.101, and interest shall
 1385  accrue monthly in the Florida Retirement System Trust Fund. The
 1386  Such interest accrues shall accrue at an effective annual rate
 1387  of 6.5 percent compounded monthly, on the prior month’s
 1388  accumulated ending balance, up to the month of termination or
 1389  death, except as provided in s. 121.053(1)(b)5.
 1390         2. Each employee who elects to participate in the DROP may
 1391  shall be allowed to elect to receive a lump-sum payment for
 1392  accrued annual leave earned in accordance with agency policy
 1393  upon beginning participation in the DROP. The Such accumulated
 1394  leave payment certified to the division upon commencement of
 1395  DROP shall be included in the calculation of the member’s
 1396  average final compensation. The employee electing the such lump
 1397  sum payment is upon beginning participation in DROP will not be
 1398  eligible to receive a second lump-sum payment upon termination,
 1399  except to the extent the employee has earned additional annual
 1400  leave which, combined with the original payment, does not exceed
 1401  the maximum lump-sum payment allowed by the employing agency’s
 1402  policy or rules. An Such early lump-sum payment shall be based
 1403  on the hourly wage of the employee at the time he or she begins
 1404  participation in the DROP. If the member elects to wait and
 1405  receive a such lump-sum payment upon termination of DROP and
 1406  termination of employment with the employer, any accumulated
 1407  leave payment made at that time may not cannot be included in
 1408  the member’s retirement benefit, which was determined and fixed
 1409  by law when the employee elected to participate in the DROP.
 1410         3. The effective date of DROP participation and the
 1411  effective date of retirement of a DROP participant shall be the
 1412  first day of the month selected by the member to begin
 1413  participation in the DROP, provided such date is properly
 1414  established, with the written confirmation of the employer, and
 1415  the approval of the division, on forms required by the division.
 1416         4. Normal retirement benefits and any interest thereon
 1417  shall continue to accrue in the DROP until the established
 1418  termination date of the DROP, or until the participant
 1419  terminates employment or dies prior to such date, except as
 1420  provided in s. 121.053(1)(b)5. Although individual DROP accounts
 1421  shall not be established, a separate accounting of each
 1422  participant’s accrued benefits under the DROP shall be
 1423  calculated and provided to participants.
 1424         5. At the conclusion of the participant’s DROP, the
 1425  division shall distribute the participant’s total accumulated
 1426  DROP benefits, subject to the following provisions:
 1427         a. The division shall receive verification by the
 1428  participant’s employer or employers that the such participant
 1429  has terminated all employment relationships as provided in s.
 1430  121.021(39)(b).
 1431         b. The terminated DROP participant or, if deceased, the
 1432  such participant’s named beneficiary, shall elect on forms
 1433  provided by the division to receive payment of the DROP benefits
 1434  in accordance with one of the options listed below. If For a
 1435  participant or beneficiary who fails to elect a method of
 1436  payment within 60 days after of termination of the DROP, the
 1437  division shall will pay a lump sum as provided in sub-sub
 1438  subparagraph (I).
 1439         (I) Lump sum.—All accrued DROP benefits, plus interest,
 1440  less withholding taxes remitted to the Internal Revenue Service,
 1441  shall be paid to the DROP participant or surviving beneficiary.
 1442         (II) Direct rollover.—All accrued DROP benefits, plus
 1443  interest, shall be paid from the DROP directly to the custodian
 1444  of an eligible retirement plan as defined in s. 402(c)(8)(B) of
 1445  the Internal Revenue Code. However, in the case of an eligible
 1446  rollover distribution to the surviving spouse of a deceased
 1447  participant, an eligible retirement plan is an individual
 1448  retirement account or an individual retirement annuity as
 1449  described in s. 402(c)(9) of the Internal Revenue Code.
 1450         (III) Partial lump sum.—A portion of the accrued DROP
 1451  benefits shall be paid to the DROP participant or surviving
 1452  spouse, less withholding taxes remitted to the Internal Revenue
 1453  Service, and the remaining DROP benefits must shall be
 1454  transferred directly to the custodian of an eligible retirement
 1455  plan as defined in s. 402(c)(8)(B) of the Internal Revenue Code.
 1456  However, in the case of an eligible rollover distribution to the
 1457  surviving spouse of a deceased participant, an eligible
 1458  retirement plan is an individual retirement account or an
 1459  individual retirement annuity as described in s. 402(c)(9) of
 1460  the Internal Revenue Code. The proportions must shall be
 1461  specified by the DROP participant or surviving beneficiary.
 1462         c. The form of payment selected by the DROP participant or
 1463  surviving beneficiary must comply complies with the minimum
 1464  distribution requirements of the Internal Revenue Code.
 1465         d. A DROP participant who fails to terminate all employment
 1466  relationships as provided defined in s. 121.021(39)(b) shall be
 1467  deemed as not to be retired, and the DROP election is shall be
 1468  null and void. Florida Retirement System membership shall be
 1469  reestablished retroactively to the date of the commencement of
 1470  the DROP, and each employer with whom the participant continues
 1471  employment must shall be required to pay to the Florida
 1472  Retirement System Trust Fund the difference between the DROP
 1473  contributions paid in paragraph (i) and the contributions
 1474  required for the applicable Florida Retirement System class of
 1475  membership during the period the member participated in the
 1476  DROP, plus 6.5 percent interest compounded annually.
 1477         6.The retirement benefits of any DROP participant who
 1478  terminates all employment relationships as provided in s.
 1479  121.021(39) but is reemployed in violation of the reemployment
 1480  provisions subsection (9) shall be suspended during those months
 1481  in which the retiree is in violation. Any retiree in violation
 1482  of this subparagraph and any employer that employs or appoints
 1483  such person without notifying the Division of Retirement to
 1484  suspend retirement benefits are jointly and severally liable for
 1485  any benefits paid during the reemployment limitation period. To
 1486  avoid liability, the employer must have a written statement from
 1487  the retiree that he or she is not retired from a state
 1488  administered retirement system. Any retirement benefits received
 1489  by a retiree while employed in violation of the reemployment
 1490  limitations must be repaid to the Florida Retirement System
 1491  Trust Fund, and his or her retirement benefits shall remain
 1492  suspended until payment is made. Benefits suspended beyond the
 1493  end of the retired retiree’s first 6 calendar months shall apply
 1494  toward repayment of benefits received in violation of the
 1495  reemployment limitation.
 1496         7.6. The accrued benefits of any DROP participant, and any
 1497  contributions accumulated under the such program, are shall not
 1498  be subject to assignment, execution, attachment, or to any legal
 1499  process whatsoever, except for qualified domestic relations
 1500  orders by a court of competent jurisdiction, income deduction
 1501  orders as provided in s. 61.1301, and federal income tax levies.
 1502         8.7. DROP participants are shall not be eligible for
 1503  disability retirement benefits as provided in subsection (4).
 1504         (d) Death benefits under the DROP.—
 1505         1. Upon the death of a DROP participant, the named
 1506  beneficiary is shall be entitled to apply for and receive the
 1507  accrued benefits in the DROP as provided in sub-subparagraph
 1508  (c)5.b.
 1509         2. The normal retirement benefit accrued to the DROP during
 1510  the month of a participant’s death is shall be the final monthly
 1511  benefit credited for such DROP participant.
 1512         3. Eligibility to participate in the DROP terminates upon
 1513  death of the participant. If the participant dies on or after
 1514  the effective date of enrollment in the DROP, but before prior
 1515  to the first monthly benefit is being credited to the DROP,
 1516  Florida Retirement System benefits are shall be paid in
 1517  accordance with subparagraph (7)(c)1. or subparagraph 2.
 1518         4. A DROP participant’s participants’ survivors are shall
 1519  not be eligible to receive Florida Retirement System death
 1520  benefits as provided in paragraph (7)(d).
 1521         (e) Cost-of-living adjustment.—On each July 1, the
 1522  participant’s participants’ normal retirement benefit shall be
 1523  increased as provided in s. 121.101.
 1524         (f) Retiree health insurance subsidy.—DROP participants are
 1525  not eligible to apply for the retiree health insurance subsidy
 1526  payments as provided in s. 112.363 until such participants have
 1527  terminated employment and participation in the DROP.
 1528         (g) Renewed membership.—DROP participants are shall not be
 1529  eligible for renewed membership in the Florida Retirement System
 1530  under ss. 121.053 and 121.122 until all employment relationships
 1531  are terminated termination of employment is effectuated as
 1532  provided in s. 121.021(39)(b).
 1533         (h) Employment limitation after DROP participation.— Upon
 1534  satisfying the definition of termination of all employment
 1535  relationships as provided in s. 121.021(39)(b), DROP
 1536  participants are shall be subject to the same such reemployment
 1537  limitations as other retirees. Reemployment restrictions
 1538  applicable to retirees as provided in subsection (9) do shall
 1539  not apply to DROP participants until their employment and
 1540  participation in the DROP are terminated.
 1541         (i) Contributions.—
 1542         1. All employers paying the salary of a DROP participant
 1543  filling a regularly established position shall contribute 8.0
 1544  percent of such participant’s gross compensation for the period
 1545  of July 1, 2002, through June 30, 2003, and the percentage 11.56
 1546  percent of such compensation required by s. 121.71 thereafter,
 1547  which shall constitute the entire employer DROP contribution
 1548  with respect to such participant. Such contributions, payable to
 1549  the Florida Retirement System Trust Fund in the same manner as
 1550  required in s. 121.071, must shall be made as appropriate for
 1551  each pay period and are in addition to contributions required
 1552  for social security and the Retiree Health Insurance Subsidy
 1553  Trust Fund. Such employer, social security, and health insurance
 1554  subsidy contributions are not included in the DROP.
 1555         2. The employer shall, in addition to subparagraph 1., also
 1556  withhold one-half of the entire social security contribution
 1557  required for the participant. Contributions for social security
 1558  by each participant and each employer, in the amount required
 1559  for social security coverage as now or hereafter provided by the
 1560  federal Social Security Act, are shall be in addition to
 1561  contributions specified in subparagraph 1.
 1562         3. All employers paying the salary of a DROP participant
 1563  filling a regularly established position shall contribute the
 1564  percent of such participant’s gross compensation required in s.
 1565  121.071(4), which shall constitute the employer’s health
 1566  insurance subsidy contribution with respect to such participant.
 1567  Such contributions must shall be deposited by the administrator
 1568  in the Retiree Health Insurance Subsidy Trust Fund.
 1569         (j) Forfeiture of retirement benefits.Nothing in This
 1570  section does not shall be construed to remove DROP participants
 1571  from the scope of s. 8(d), Art. II of the State Constitution, s.
 1572  112.3173, and paragraph (5)(f). DROP participants who commit a
 1573  specified felony offense while employed are will be subject to
 1574  forfeiture of all retirement benefits, including DROP benefits,
 1575  pursuant to those provisions of law.
 1576         (k) Administration of program.—The division shall adopt
 1577  make such rules as are necessary for the effective and efficient
 1578  administration of this subsection. The division is shall not be
 1579  required to advise members of the federal tax consequences of an
 1580  election related to the DROP but may advise members to seek
 1581  independent advice.
 1582         (14) PAYMENT OF BENEFITS.—This subsection applies to the
 1583  payment of benefits to a payee (retiree or beneficiary) under
 1584  the Florida Retirement System:
 1585         (a) Federal income tax shall be withheld in accordance with
 1586  federal law, unless the payee elects otherwise on Form W-4P. The
 1587  division shall prepare and distribute to each recipient of
 1588  monthly retirement benefits an appropriate income tax form that
 1589  reflects the recipient’s income and federal income tax withheld
 1590  for the calendar year just ended.
 1591         (b) Subject to approval by the division in accordance with
 1592  rule 60S-4.015, Florida Administrative Code, a payee receiving
 1593  retirement benefits under the Florida Retirement system may also
 1594  have the following payments deducted from his or her monthly
 1595  benefit:
 1596         1. Premiums for life and health-related insurance policies
 1597  from approved companies.
 1598         2. Life insurance premiums for the State Group Life
 1599  Insurance Plan, if authorized in writing by the payee and by the
 1600  department of Management Services.
 1601         3. Repayment of overpayments from the Florida Retirement
 1602  System Trust Fund, the State Employees’ Health Insurance Trust
 1603  Fund, or the State Employees’ Life Insurance Trust Fund, upon
 1604  notification of the payee.
 1605         4. Payments to an alternate payee for alimony or, child
 1606  support pursuant to an income deduction order under s. 61.1301,
 1607  or division of marital assets pursuant to a qualified domestic
 1608  relations order under s. 222.21 or an income deduction order
 1609  under s. 61.1301.
 1610         5. Payments to the Internal Revenue Service for federal
 1611  income tax levies, upon notification of the division by the
 1612  Internal Revenue Service.
 1613         (c) A payee must shall notify the division of any change in
 1614  his or her address. The division may suspend benefit payments to
 1615  a payee if correspondence sent to the payee’s mailing address is
 1616  returned due to an incorrect address. Benefit payments shall be
 1617  resumed upon notification to the division of the payee’s new
 1618  address.
 1619         (d) A payee whose retirement benefits are reduced by the
 1620  application of maximum benefit limits under s. 415(b) of the
 1621  Internal Revenue Code, as specified in s. 121.30(5), shall have
 1622  the portion of his or her calculated benefit in the Florida
 1623  Retirement System defined benefit plan which exceeds such
 1624  federal limitation paid through the Florida Retirement System
 1625  Preservation of Benefits Plan, as provided in s. 121.1001.
 1626         (e)The Division of Retirement may issue retirement
 1627  benefits payable for division of marital assets pursuant to a
 1628  qualified domestic relations order directly to the alternate
 1629  payee, any court order to the contrary notwithstanding, in order
 1630  to meet Internal Revenue Code requirements.
 1631         (f)(e)A No benefit may not be reduced for the purpose of
 1632  preserving the member’s eligibility for a federal program.
 1633         (g)(f) The division shall adopt rules establishing
 1634  procedures for determining that the persons to whom benefits are
 1635  being paid are still living. The division shall suspend the
 1636  benefits being paid to any payee if when it is unable to contact
 1637  such payee and to confirm that he or she is still living.
 1638         Section 10. Section 121.1115, Florida Statutes, is amended
 1639  to read:
 1640         121.1115 Purchase of retirement credit for out-of-state or
 1641  and federal service.—Effective January 1, 1995, a member of the
 1642  Florida Retirement System may purchase creditable service for
 1643  periods of public employment in another state and receive
 1644  creditable service for such periods of employment. Service with
 1645  the Federal Government, including any active military service,
 1646  may be claimed. Upon completion of each year of service earned
 1647  under the Florida Retirement System, a member may purchase up to
 1648  1 year of retirement credit for his or her out-of-state service,
 1649  subject to the following provisions:
 1650         (1) LIMITATIONS AND CONDITIONS.—To receive credit for the
 1651  out-of-state service:
 1652         (a) The out-of-state service being claimed must have been:
 1653         1. Performed in a position of employment with the state or
 1654  a political subdivision thereof or with the Federal Government;
 1655         2. Covered by a retirement or pension plan provided by the
 1656  state or political subdivision, or by the Federal Government, as
 1657  appropriate; and
 1658         3. Performed prior to a period of membership in the Florida
 1659  Retirement System.
 1660         (b) The member must have completed a minimum of 6 years of
 1661  creditable service under the Florida Retirement System,
 1662  excluding out-of-state service and in-state service claimed and
 1663  purchased under s. 121.1122.
 1664         (c) Not more than 5 years of creditable service may be
 1665  claimed for creditable service aggregated under the provisions
 1666  of this section and s. 121.1122.
 1667         (d) The out-of-state service credit claimed under this
 1668  section shall be credited only as service in the Regular Class
 1669  of membership, and any benefit or pension based thereon is shall
 1670  be subject to the limitations and restrictions of s. 112.65.
 1671         (e)The member is not eligible for and may not receive a
 1672  pension or benefit from a retirement or pension plan based on or
 1673  including the out-of-state service. Eligibility for or the
 1674  receipt of contributions to a retirement plan made by the
 1675  employer on behalf of the employee is considered a benefit.
 1676         (f)(e)A member shall be eligible To receive service credit
 1677  for out-of-state service performed after leaving the Florida
 1678  Retirement System, the member must complete only upon return to
 1679  membership and completion of at least 1 year of creditable
 1680  service in the Florida Retirement System following the out-of
 1681  state service.
 1682         (2) COST.—For each year claimed, the member must pay into
 1683  the Florida Retirement System Trust Fund an amount equal to 20
 1684  percent of the member’s annual compensation for the first full
 1685  work year of creditable service earned under the Florida
 1686  Retirement System, but not less than $12,000, plus interest at
 1687  6.5 percent compounded annually from the date of first annual
 1688  salary earned until full payment is made. The employer may pay
 1689  all or a portion of the cost of this service credit.
 1690         Section 11. Subsection (2) of section 121.1122, Florida
 1691  Statutes, is amended to read:
 1692         121.1122 Purchase of retirement credit for in-state public
 1693  service and in-state service in accredited nonpublic schools and
 1694  colleges, including charter schools and charter technical career
 1695  centers.—Effective January 1, 1998, a member of the Florida
 1696  Retirement System may purchase creditable service for periods of
 1697  certain public or nonpublic employment performed in this state,
 1698  as provided in this section.
 1699         (2) LIMITATIONS AND CONDITIONS.—
 1700         (a) A member is not eligible to receive credit for in-state
 1701  service under this section until he or she has completed 6 years
 1702  of creditable service under the Florida Retirement System,
 1703  excluding service purchased under this section and out-of-state
 1704  service claimed and purchased under s. 121.1115.
 1705         (b) A member may not purchase and receive credit for more
 1706  than 5 years of creditable service aggregated under the
 1707  provisions of this section and s. 121.1115.
 1708         (c) Service credit claimed under this section shall be
 1709  credited only as service in the Regular Class of membership and
 1710  is shall be subject to the provisions of s. 112.65.
 1711         (d)Service credit may not be purchased under this section
 1712  if the member is eligible to receive or is receiving a pension
 1713  or benefit from a retirement or pension plan based on or
 1714  including the service. Eligibility for or the receipt of
 1715  contributions to a retirement plan made by the employer on
 1716  behalf of the employee is considered a benefit.
 1717         (e)(d) A member is shall be eligible to receive service
 1718  credit for in-state service performed after leaving the Florida
 1719  Retirement System only after upon returning to membership and
 1720  completing at least 1 year of creditable service in the Florida
 1721  Retirement System following the in-state service.
 1722         (f)(e) The service claimed must have been service covered
 1723  by a retirement or pension plan provided by the employer.
 1724         Section 12. Section 121.122, Florida Statutes, is amended
 1725  to read:
 1726         121.122 Renewed membership in system.—
 1727         (1) Except as provided in s. 121.053, effective July 1,
 1728  1991, any retiree of a state-administered retirement system who
 1729  is initially reemployed employed in a regularly established
 1730  position with a covered employer shall be enrolled as a
 1731  compulsory member of the Regular Class of the Florida Retirement
 1732  System or, effective July 1, 1997, any retiree of a state
 1733  administered retirement system who is initially reemployed
 1734  employed in a position included in the Senior Management Service
 1735  Class shall be enrolled as a compulsory member of the Senior
 1736  Management Service Class of the Florida Retirement System as
 1737  provided in s. 121.055, and shall be entitled to receive an
 1738  additional retirement benefit, subject to the following
 1739  conditions:
 1740         (1)(a) Such member must shall resatisfy the age and service
 1741  requirements as provided in this chapter for initial membership
 1742  under the system, unless such member elects to participate in
 1743  the Senior Management Service Optional Annuity Program in lieu
 1744  of the Senior Management Service Class, as provided in s.
 1745  121.055(6).
 1746         (b) Such member is shall not be entitled to disability
 1747  benefits as provided in s. 121.091(4).
 1748         (c) Such member must meet the reemployment after retirement
 1749  limitations as provided in s. 121.091(9), as applicable.
 1750         (2) Upon renewed membership or reemployment of a retiree,
 1751  the employer of such member shall pay the applicable employer
 1752  contributions as required by ss. 121.71, 121.74, 121.76, and
 1753  112.363 121.055(3) and 121.071(1)(a) and (4).
 1754         (3) Such member is shall be entitled to purchase additional
 1755  retirement credit in the Regular Class or the Senior Management
 1756  Service Class, as applicable, for any postretirement service
 1757  performed in a regularly established position as follows:
 1758         (a) For regular class service prior to July 1, 1991, by
 1759  paying the Regular Class applicable employee and employer
 1760  contributions for the period being claimed, plus 4 percent
 1761  interest compounded annually from first year of service claimed
 1762  until July 1, 1975, and 6.5 percent interest compounded
 1763  thereafter, until full payment is made to the Florida Retirement
 1764  System Trust Fund; or
 1765         (b) For Senior Management Service Class prior to June 1,
 1766  1997, as provided in s. 121.055(1)(j).
 1767  
 1768  The contribution for postretirement service between July 1,
 1769  1985, and July 1, 1991, for which the reemployed retiree
 1770  contribution was paid, shall be the difference between such
 1771  contribution and the total applicable contribution for the
 1772  period being claimed, plus interest. The employer of such member
 1773  may pay the applicable employer contribution in lieu of the
 1774  member. If a member does not wish to claim credit for all of the
 1775  postretirement service for which he or she is eligible, the
 1776  service the member claims must be the most recent service.
 1777         (4) No creditable service for which credit was received, or
 1778  which remained unclaimed, at retirement may be claimed or
 1779  applied toward service credit earned following renewed
 1780  membership. However, service earned as an elected officer with
 1781  renewed membership in the Elected Officers’ Class may be used in
 1782  conjunction with creditable service earned under this section,
 1783  provided the applicable vesting requirements and other existing
 1784  statutory conditions required by this chapter are met.
 1785         (5) Notwithstanding any other limitations provided in this
 1786  section, a participant of the State University System Optional
 1787  Retirement Program, the State Community College Optional
 1788  Retirement Program, or the Senior Management Service Optional
 1789  Annuity Program who terminated employment and commenced
 1790  receiving a distribution an annuity under the provisions of the
 1791  optional program, who initially renews membership in the Regular
 1792  Class as required by this section upon reemployment after
 1793  retirement, and who had previously earned creditable Florida
 1794  Retirement System service that was not included in any
 1795  retirement benefit may include such previous service toward
 1796  vesting and service credit in the second career benefit provided
 1797  under renewed membership.
 1798         (6) A Any renewed member who is not receiving the maximum
 1799  health insurance subsidy provided in s. 112.363 is shall be
 1800  entitled to earn additional credit toward the maximum health
 1801  insurance subsidy. Any additional subsidy due because of such
 1802  additional credit may shall be received only at the time of
 1803  payment of the second career retirement benefit. In no case
 1804  shall The total health insurance subsidy received by a retiree
 1805  receiving benefits from initial and renewed membership may not
 1806  exceed the maximum allowed in s. 112.363.
 1807         Section 13. Section 121.136, Florida Statutes, is amended
 1808  to read:
 1809         121.136 Annual benefit statement to members.—Each year
 1810  Beginning January 1, 1993, and each January thereafter, the
 1811  department shall provide each active member of the Florida
 1812  Retirement System with 5 or more years of creditable service an
 1813  annual statement of benefits that provides. Such statement
 1814  should provide the member with basic data about the member’s
 1815  retirement account. At a minimum Minimally, it must shall
 1816  include the member’s retirement plan, accrued service credit the
 1817  amount of funds on deposit in the retirement account, and an
 1818  estimate of retirement benefits.
 1819         Section 14. Section 121.1905, Florida Statutes, is amended
 1820  to read:
 1821         121.1905 Division of Retirement; creation.—
 1822         (1) There is created the Division of Retirement within the
 1823  Department of Management Services.
 1824         (2)The mission of the Division of Retirement is to provide
 1825  quality and cost-effective retirement services as measured by
 1826  member satisfaction and by comparison with administrative costs
 1827  of comparable retirement systems.
 1828         Section 15. Paragraph (a) of subsection (2) of section
 1829  121.23, Florida Statutes, is amended to read:
 1830         121.23 Disability retirement and special risk membership
 1831  applications; Retirement Commission; powers and duties; judicial
 1832  review.—The provisions of this section apply to all proceedings
 1833  in which the administrator has made a written final decision on
 1834  the merits respecting applications for disability retirement,
 1835  reexamination of retired members receiving disability benefits,
 1836  applications for special risk membership, and reexamination of
 1837  special risk members in the Florida Retirement System. The
 1838  jurisdiction of the State Retirement Commission under this
 1839  section shall be limited to written final decisions of the
 1840  administrator on the merits.
 1841         (2) A member shall be entitled to a hearing before the
 1842  State Retirement Commission pursuant to ss. 120.569 and
 1843  120.57(1) on the merits of any written adverse decision of the
 1844  administrator, if he or she files with the commission a written
 1845  request for such hearing within 21 days after receipt of such
 1846  written decision from the administrator. For the purpose of such
 1847  hearings, the commission shall be an “agency head” as defined by
 1848  s. 120.52.
 1849         (a) The commission may shall have the authority to issue
 1850  orders as a result of the a hearing that are shall be binding on
 1851  all parties to the dispute and. The commission may order any
 1852  action that it deems appropriate. Any disability retirement
 1853  order of the commission that issued pursuant to this subsection
 1854  which sustains the application of the member may include an
 1855  amount, to be determined by the commission, for reasonable
 1856  attorney’s fees and taxable costs, which shall be calculated in
 1857  accordance with the statewide uniform guidelines for taxation of
 1858  costs in civil actions. The amount of the attorney’s fees fee
 1859  may not exceed 50 percent of the initial yearly benefit awarded
 1860  under s. 121.091(4). In cases involving disability retirement,
 1861  the State Retirement commission shall require the member to
 1862  present substantial competent medical evidence that meets the
 1863  requirements of s. 121.091(4)(c)2. and 3., and may require
 1864  vocational evidence, before awarding disability retirement
 1865  benefits.
 1866         Section 16. Paragraph (a) of subsection (1) of section
 1867  121.24, Florida Statutes, is amended to read:
 1868         121.24 Conduct of commission business; legal and other
 1869  assistance; compensation.—
 1870         (1) The commission shall conduct its business within the
 1871  following guidelines:
 1872         (a) For purposes of hearing appeals under s. 121.23, the
 1873  commission may meet in panels consisting of no not fewer than
 1874  three members. For the purpose of meeting in these panels, a
 1875  quorum shall be not fewer than two members. For all other
 1876  purposes, A quorum shall consist of three members. The
 1877  concurring vote of a majority of the members present is shall be
 1878  required to reach a decision, issue orders, and conduct the
 1879  business of the commission.
 1880         Section 17. Paragraph (h) of subsection (3) and paragraphs
 1881  (a) and (e) of subsection (5) of section 121.35, Florida
 1882  Statutes, are amended, and paragraph (g) is added to subsection
 1883  (5) of that section, to read:
 1884         121.35 Optional retirement program for the State University
 1885  System.—
 1886         (3) ELECTION OF OPTIONAL PROGRAM.—
 1887         (h) A participant in the optional retirement program may
 1888  not participate in more than one state-administered retirement
 1889  system, plan, or class simultaneously. Except as provided in s.
 1890  121.052(6)(d), a participant who is or becomes dually employed
 1891  in two or more positions covered by the Florida Retirement
 1892  System, one of which is eligible for the optional program and
 1893  one of which is not, may remain a member of the optional program
 1894  and contributions shall be paid as required only on the salary
 1895  earned in the position eligible for the optional program during
 1896  the such period of dual employment; or, within 90 days after
 1897  becoming dually employed, he or she may elect membership in the
 1898  Regular Class of the Florida Retirement System in lieu of the
 1899  optional program and contributions shall be paid as required on
 1900  the total salary received for all employment. At retirement, the
 1901  average final compensation used to calculate any benefits for
 1902  which the member becomes eligible under the Florida Retirement
 1903  System must shall be based on all salary reported for both
 1904  positions during such period of dual employment. If the When
 1905  such member ceases to be dually employed, he or she may, within
 1906  90 days, elect to remain in the Florida Retirement System class
 1907  for which he or she is eligible or to again become a participant
 1908  in the optional retirement program. Failure to elect membership
 1909  in the optional program within 90 days shall result in
 1910  compulsory membership in the Florida Retirement System, except
 1911  that a member filling a faculty position at under a college that
 1912  has a faculty practice plan at the University of Florida, at or
 1913  the Medical Center at the University of South Florida, or other
 1914  state university shall again participate in the optional
 1915  retirement program as required in s. 121.051(1)(a).
 1916         (5) BENEFITS.—
 1917         (a) Benefits are shall be payable under the optional
 1918  retirement program only to vested participants in the program,
 1919  or their beneficiaries as designated by the participant in the
 1920  contract with a provider company, and such benefits shall be
 1921  paid only by the designated company in accordance with s. 403(b)
 1922  of the Internal Revenue Code and in accordance with the terms of
 1923  the annuity contract or contracts applicable to the participant.
 1924  Benefits shall accrue in individual accounts that are
 1925  participant-directed, portable, and funded by employer
 1926  contributions and the earnings thereon. The participant must be
 1927  terminated from all employment relationships with all Florida
 1928  Retirement System employers, as provided in s. 121.021(39), to
 1929  begin receiving the employer-funded benefit. Benefits funded by
 1930  employer contributions are shall be payable in accordance with
 1931  the following terms and conditions:
 1932         1. Benefits shall be paid payable only to a participant, to
 1933  his or her beneficiaries, or to his or her estate, as designated
 1934  by the participant.
 1935         2. Benefits shall be paid by the provider company or
 1936  companies in accordance with the law, the provisions of the
 1937  contract, and any applicable department board rule or policy.
 1938         3. In the event of a participant’s death, moneys
 1939  accumulated by, or on behalf of, the participant, less
 1940  withholding taxes remitted to the Internal Revenue Service, if
 1941  any, shall be distributed to the participant’s designated
 1942  beneficiary or beneficiaries, or to the participant’s estate, as
 1943  if the participant retired on the date of death, as provided in
 1944  paragraph (c). No other death benefits are shall be available to
 1945  for survivors of participants under the optional retirement
 1946  program except for such benefits, or coverage for such benefits,
 1947  as are separately afforded by the employer, at the employer’s
 1948  discretion.
 1949         (e) A participant who chooses to receive his or her
 1950  benefits upon termination as defined in s. 121.021(39) must of
 1951  employment shall have responsibility to notify the provider
 1952  company of the date on which he or she wishes benefits funded by
 1953  employer contributions to begin. Benefits may be deferred until
 1954  such time as the participant chooses to make such application.
 1955         (g)For purposes of this section, “retiree” means a former
 1956  participant of the optional retirement program who has
 1957  terminated employment and has taken a distribution as provided
 1958  in this subsection, except for a mandatory distribution of a de
 1959  minimis account authorized by the department.
 1960         Section 18. Paragraphs (a) and (b) of subsection (1) of
 1961  section 121.591, Florida Statutes, is amended to read:
 1962         121.591 Benefits payable under the Public Employee Optional
 1963  Retirement Program of the Florida Retirement System.—Benefits
 1964  may not be paid under this section unless the member has
 1965  terminated employment as provided in s. 121.021(39)(a) or is
 1966  deceased and a proper application has been filed in the manner
 1967  prescribed by the state board or the department. The state board
 1968  or department, as appropriate, may cancel an application for
 1969  retirement benefits when the member or beneficiary fails to
 1970  timely provide the information and documents required by this
 1971  chapter and the rules of the state board and department. In
 1972  accordance with their respective responsibilities as provided
 1973  herein, the State Board of Administration and the Department of
 1974  Management Services shall adopt rules establishing procedures
 1975  for application for retirement benefits and for the cancellation
 1976  of such application when the required information or documents
 1977  are not received. The State Board of Administration and the
 1978  Department of Management Services, as appropriate, are
 1979  authorized to cash out a de minimis account of a participant who
 1980  has been terminated from Florida Retirement System covered
 1981  employment for a minimum of 6 calendar months. A de minimis
 1982  account is an account containing employer contributions and
 1983  accumulated earnings of not more than $5,000 made under the
 1984  provisions of this chapter. Such cash-out must either be a
 1985  complete lump-sum liquidation of the account balance, subject to
 1986  the provisions of the Internal Revenue Code, or a lump-sum
 1987  direct rollover distribution paid directly to the custodian of
 1988  an eligible retirement plan, as defined by the Internal Revenue
 1989  Code, on behalf of the participant. If any financial instrument
 1990  issued for the payment of retirement benefits under this section
 1991  is not presented for payment within 180 days after the last day
 1992  of the month in which it was originally issued, the third-party
 1993  administrator or other duly authorized agent of the State Board
 1994  of Administration shall cancel the instrument and credit the
 1995  amount of the instrument to the suspense account of the Public
 1996  Employee Optional Retirement Program Trust Fund authorized under
 1997  s. 121.4501(6). Any such amounts transferred to the suspense
 1998  account are payable upon a proper application, not to include
 1999  earnings thereon, as provided in this section, within 10 years
 2000  after the last day of the month in which the instrument was
 2001  originally issued, after which time such amounts and any
 2002  earnings thereon shall be forfeited. Any such forfeited amounts
 2003  are assets of the Public Employee Optional Retirement Program
 2004  Trust Fund and are not subject to the provisions of chapter 717.
 2005         (1) NORMAL BENEFITS.—Under the Public Employee Optional
 2006  Retirement Program:
 2007         (a) Benefits in the form of vested accumulations as
 2008  described in s. 121.4501(6) shall be payable under this
 2009  subsection in accordance with the following terms and
 2010  conditions:
 2011         1. To the extent vested, benefits shall be payable only to
 2012  a participant.
 2013         2. Benefits shall be paid by the third-party administrator
 2014  or designated approved providers in accordance with the law, the
 2015  contracts, and any applicable board rule or policy.
 2016         3. To receive benefits under this subsection, the
 2017  participant must be terminated from all employment with all
 2018  Florida Retirement System employers, as provided in s.
 2019  121.021(39).
 2020         4. Benefit payments may not be made until the participant
 2021  has been terminated for 3 calendar months, except that the board
 2022  may authorize by rule for the distribution of up to 10 percent
 2023  of the participant’s account after being terminated for 1
 2024  calendar month if a participant has reached the normal
 2025  retirement requirements of the defined benefit plan, as provided
 2026  in s. 121.021(29).
 2027         5. If a member or former member of the Florida Retirement
 2028  System receives an invalid distribution from the Public Employee
 2029  Optional Retirement Program Trust Fund, such person shall repay
 2030  the full invalid distribution to the trust fund within 90 days
 2031  after receipt of final notification by the State Board of
 2032  Administration or the third-party administrator that the
 2033  distribution was invalid. If such person fails to repay the full
 2034  invalid distribution within 90 days after receipt of final
 2035  notification, the person may be deemed retired from the Public
 2036  Employee Optional Retirement Program by the state board, as
 2037  provided pursuant to s. 121.4501(2)(j), and shall be subject to
 2038  the provisions of s. 121.122. If such person is deemed retired
 2039  by the state board, any joint and several liability set out in
 2040  s. 121.091(9)(d)2. s. 121.091(9)(c)2. becomes null and void, and
 2041  the state board, the Department of Management Services, or the
 2042  employing agency is not liable for gains on payroll
 2043  contributions that have not been deposited to the person’s
 2044  account in the Public Employee Optional Retirement Program,
 2045  pending resolution of the invalid distribution. The member or
 2046  former member who has been deemed retired or who has been
 2047  determined by the board to have taken an invalid distribution
 2048  may appeal the agency decision through the complaint process as
 2049  provided under s. 121.4501(9)(f)3. As used in this subparagraph,
 2050  the term “invalid distribution” means any distribution from an
 2051  account in the Public Employee Optional Retirement Program which
 2052  is taken in violation of the provisions of this section, s.
 2053  121.091(9), or s. 121.4501.
 2054         (b) If a participant elects to receive his or her benefits
 2055  upon termination of employment as defined in s. 121.021(39), the
 2056  participant must submit a written application or an equivalent
 2057  form to the third-party administrator indicating his or her
 2058  preferred distribution date and selecting an authorized method
 2059  of distribution as provided in paragraph (c). The participant
 2060  may defer receipt of benefits until he or she chooses to make
 2061  such application, subject to federal requirements.
 2062         Section 19. Subsection (1) of section 238.183, Florida
 2063  Statutes, is amended to read:
 2064         238.183 Developmental research school and Florida School
 2065  for the Deaf and the Blind instructional personnel; reemployment
 2066  after retirement.—
 2067         (1) Notwithstanding any other law, instructional personnel,
 2068  as defined in s. 1012.01(2), employed by a developmental
 2069  research school or the Florida School for the Deaf and the Blind
 2070  are eligible for reemployment after retirement in the same
 2071  manner as classroom teachers who are employed by the district
 2072  school boards, as described in ss. 121.091(9)(b)3. and
 2073  238.181(2)(c).
 2074         Section 20. Paragraph (g) of subsection (3) and subsection
 2075  (8) of section 1012.33, Florida Statutes, are amended to read:
 2076         1012.33 Contracts with instructional staff, supervisors,
 2077  and school principals.—
 2078         (3)
 2079         (g) Beginning July 1, 2001, for each employee who enters
 2080  into a written contract, pursuant to this section, in a school
 2081  district in which the employee was not employed as of June 30,
 2082  2001, or was employed as of June 30, 2001, but has since broken
 2083  employment with that district for 1 school year or more, for
 2084  purposes of pay, a district school board must recognize and
 2085  accept each year of full-time public school teaching service
 2086  earned in the State of Florida or outside the state and for
 2087  which the employee received a satisfactory performance
 2088  evaluation. Instructional personnel employed pursuant to s.
 2089  121.091(9)(b)3. are exempt from the provisions of this
 2090  paragraph.
 2091         (8) Notwithstanding any other provision of law, a retired
 2092  any member who has retired may interrupt retirement and be
 2093  reemployed in any public school. A Any member so reemployed by
 2094  the same district from which he or she retired may be employed
 2095  on a probationary contractual basis as provided in subsection
 2096  (1); however, no regular retirement employee shall be eligible
 2097  to renew membership under a retirement system created by chapter
 2098  121 or chapter 238.
 2099         Section 21. Sections 121.093, 121.094, and 121.45, Florida
 2100  Statutes, are repealed.
 2101         Section 22. The Legislature finds that a proper and
 2102  legitimate state purpose is served when employees and retirees
 2103  of the state and its political subdivisions, as well as the
 2104  dependents, survivors, and beneficiaries of such employees and
 2105  retirees, are extended the basic protections afforded by
 2106  governmental retirement systems that provide fair and adequate
 2107  benefits and that are managed, administered, and funded in an
 2108  actuarially sound manner as required by s. 14, Art. X of the
 2109  State Constitution and part VII of chapter 112, Florida
 2110  Statutes. Therefore, the Legislature determines and declares
 2111  that the amendment of s. 121.091, Florida Statutes, by this act
 2112  fulfills an important state interest.
 2113         Section 23. This act shall take effect July 1, 2009.
 2114  
 2115  ================= T I T L E  A M E N D M E N T ================
 2116         And the title is amended as follows:
 2117         Delete everything before the enacting clause
 2118  and insert:
 2119                        A bill to be entitled                      
 2120         An act relating to retirement; amending s. 121.021,
 2121         F.S.; redefining the terms “employer,” “officer or
 2122         employee,” “past service,” “normal retirement date,”
 2123         “termination,” “regularly established position,” and
 2124         “temporary position”; defining the terms “state board”
 2125         and “trustees”; amending s. 121.031, F.S.; requiring
 2126         promotional materials that refer to the Florida
 2127         Retirement System to include a disclaimer unless
 2128         approval is obtained from the Department of Management
 2129         Services or the State Board of Administration;
 2130         amending s. 121.051, F.S.; conforming a cross
 2131         reference; clarifying when a State Community College
 2132         System Optional Retirement Program participant is
 2133         considered a retiree; revising provisions relating to
 2134         participation in the Florida Retirement System by
 2135         certain employers; excluding the participation of
 2136         certain entities under a lease agreement; amending s.
 2137         121.052, F.S.; revising membership criteria for
 2138         members of the Elected Officers’ Class; revising the
 2139         dates when a governing body of a municipality or
 2140         special district may elect to designate its elected
 2141         positions for inclusion in the Elected Officers’
 2142         Class; amending s. 121.053, F.S.; revising provisions
 2143         relating to participation in the Elected Officers’
 2144         Class for retired members; providing that a member
 2145         whose DROP participation begins after a certain date
 2146         may not continue to earn interest on his or her DROP
 2147         account after the end of the 60-month DROP period;
 2148         amending s. 121.055, F.S.; revising provisions
 2149         relating to participation in the Senior Management
 2150         Service Class; revising provisions relating to de
 2151         minimis accounts; amending s. 121.071, F.S.; providing
 2152         an additional mechanism for the payment of employee
 2153         contributions to the system; amending s. 121.081,
 2154         F.S.; providing for receipt of credit for past or
 2155         prior service by charter school and charter technical
 2156         career center employees; prohibiting a member from
 2157         receiving credit for service covered and reported by
 2158         both a public employer and a private employer;
 2159         amending s. 121.091, F.S.; revising and clarifying
 2160         provisions relating to retirement benefits;
 2161         authorizing developmental research schools and charter
 2162         schools to reemploy certain retired members under
 2163         specified conditions; providing that retirees of a
 2164         state-administered retirement system who retire after
 2165         a certain date may not be reemployed by an employer
 2166         participating in the Florida Retirement System for 6
 2167         months; revising provisions relating to reemployment
 2168         of retirees of the Public Employee Optional Retirement
 2169         Program; providing that certain members who delay DROP
 2170         participation lose a month of DROP participation for
 2171         each month delayed; clarifying that DROP participation
 2172         may not be canceled; clarifying maximum DROP
 2173         participation; providing for the suspension of DROP
 2174         benefits to a participant who is reemployed; deleting
 2175         obsolete provisions; revising employer contribution
 2176         requirements; authorizing the Division of Retirement
 2177         to issue benefits pursuant to a qualified domestic
 2178         relations order directly to the alternate payee;
 2179         amending s. 121.1115, F.S.; revising provisions
 2180         relating to receiving retirement credit for out-of
 2181         state service; providing that a member is not eligible
 2182         for and may not receive a benefit based on such
 2183         service; amending s. 121.1122, F.S.; revising
 2184         provisions relating to receiving retirement credit for
 2185         in-state service; providing that certain members are
 2186         not eligible to purchase service credit; amending s.
 2187         121.122, F.S.; providing that certain retirees
 2188         initially reemployed on or after a specified date are
 2189         ineligible for renewed membership in the system;
 2190         revising conditions under which a retiree is entitled
 2191         to certain additional retirement benefits; amending s.
 2192         121.136, F.S.; revising provisions relating to the
 2193         annual statement of benefits provided to certain
 2194         active members of the system; amending s. 121.1905,
 2195         F.S.; deleting a provision describing the mission of
 2196         the Division of Retirement; amending s. 121.23, F.S.;
 2197         requiring the State Retirement Commission to use
 2198         certain requirements used by the Secretary of
 2199         Management Services before approving a disability
 2200         retirement benefit; amending s. 121.24, F.S.;
 2201         requiring a quorum of three members for all appeal
 2202         hearings held by the commission; amending s. 121.35,
 2203         F.S.; revising a compulsory membership exception for
 2204         certain members failing to elect membership in the
 2205         optional retirement program; providing a cross
 2206         reference; defining the term “retiree” for purposes of
 2207         the State University System Optional Retirement
 2208         Program; amending ss. 121.591 and 238.183, F.S.;
 2209         providing and conforming cross-references; amending s.
 2210         1012.33, F.S.; deleting a provision preventing persons
 2211         who have retired from the public school system from
 2212         renewing membership in the Florida Retirement System
 2213         or Teachers’ Retirement System upon reemployment by
 2214         the school system; repealing s. 121.093, F.S.,
 2215         relating to instructional personnel reemployment after
 2216         retirement from a developmental research school or the
 2217         Florida School for the Deaf and the Blind; repealing
 2218         s. 121.094, F.S., relating to instructional personnel
 2219         reemployment after retirement from a charter school;
 2220         repealing s. 121.45, F.S., relating to interstate
 2221         compacts relating to pension portability; providing a
 2222         declaration of important state interest; providing an
 2223         effective date.