Florida Senate - 2009                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1182
       
       
       
       
       
       
                                Barcode 737122                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: FAV            .                                
                  04/07/2009           .                                
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       The Committee on Ethics and Elections (Fasano) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (60) of section 121.021, Florida
    6  Statutes, is amended to read:
    7         121.021 Definitions.—The following words and phrases as
    8  used in this chapter have the respective meanings set forth
    9  unless a different meaning is plainly required by the context:
   10         (60) “Retiree” means:
   11         (a) A former member of the Florida Retirement System or an
   12  existing system who has terminated employment and is receiving
   13  benefit payments from the system in which he or she was a
   14  member. The This term also includes a person who retired and is
   15  receiving benefits under s. 112.05 and a retiree under the
   16  Public Employee Optional Retirement Program defined in s.
   17  121.4501(2).
   18         (b)A former participant who has received a distribution
   19  from the State Community College Optional Retirement Program as
   20  defined in s. 121.051(2)(c), the Senior Management Service
   21  Optional Annuity Program as defined in s. 121.055(6), an
   22  alternative program for local agency employer senior managers
   23  who withdrew from the Florida Retirement System under s.
   24  121.055(1)(b), or the State University System Retirement
   25  Optional Retirement Program as defined in s. 121.35(5)(g). The
   26  term “distribution” means receiving funds that include employer
   27  contributions and associated earnings, whether received as a
   28  full or partial rollover, or trustee-to-trustee transfer, lump
   29  sum payment, periodic payment, annuity payment, or any
   30  combination of these payment methods.
   31         Section 2. Paragraph (a) of subsection (1) and paragraphs
   32  (c) and (f) of subsection (2) of section 121.051, Florida
   33  Statutes, are amended to read:
   34         121.051 Participation in the system.—
   35         (1) COMPULSORY PARTICIPATION.—
   36         (a) The provisions of this law are shall be compulsory as
   37  to all officers and employees, except elected officers who meet
   38  the requirements of s. 121.052(3), who are employed on or after
   39  December 1, 1970, by of an employer other than those referred to
   40  in paragraph (2)(b), and each officer or employee, as a
   41  condition of employment, shall become a member of the system as
   42  of his or her date of employment, except that a person who is
   43  retired from any state retirement system and is reemployed on or
   44  after December 1, 1970, may not renew his or her membership in
   45  any state retirement system except as provided in s.
   46  121.091(4)(h) for a person who recovers from disability, and as
   47  provided in s. 121.091(9)(b) s. 121.091(9)(b)8. for a person who
   48  is elected to public office, and, effective July 1, 1991, as
   49  provided in s. 121.122 for all other retirees. Officers and
   50  employees of the University Athletic Association, Inc., a
   51  nonprofit association connected with the University of Florida,
   52  employed on and after July 1, 1979, may shall not participate in
   53  any state-supported retirement system.
   54         1. Any person appointed on or after July 1, 1989, to a
   55  faculty position in a college at the J. Hillis Miller Health
   56  Center at the University of Florida or the Medical Center at the
   57  University of South Florida which has a faculty practice plan
   58  provided by rule adopted by the Board of Regents may not
   59  participate in the Florida Retirement System. Effective July 1,
   60  2008, any person appointed thereafter to a faculty position,
   61  including clinical faculty, in a college at a state university
   62  that has a faculty practice plan authorized by the Board of
   63  Governors may not participate in the Florida Retirement System.
   64  A faculty member so appointed shall participate in the optional
   65  retirement program for the State University System
   66  notwithstanding the provisions of s. 121.35(2)(a).
   67         2. For purposes of this paragraph, the term “faculty
   68  position” means is defined as a position assigned the principal
   69  responsibility of teaching, research, or public service
   70  activities or administrative responsibility directly related to
   71  the academic mission of the college. The term “clinical faculty”
   72  means is defined as a faculty position appointment in
   73  conjunction with a professional position in a hospital or other
   74  clinical environment at a college. The term “faculty practice
   75  plan” includes professional services to patients, institutions,
   76  or other parties which are rendered by the clinical faculty
   77  employed by a college that has a faculty practice plan at a
   78  state university authorized by the Board of Governors.
   79         (2) OPTIONAL PARTICIPATION.—
   80         (c) Employees of public community colleges or charter
   81  technical career centers sponsored by public community colleges,
   82  as designated in s. 1000.21(3), who are members of the Regular
   83  Class of the Florida Retirement System and who comply with the
   84  criteria set forth in this paragraph and in s. 1012.875 may
   85  elect, in lieu of participating in the Florida Retirement
   86  System, to withdraw from the Florida Retirement system
   87  altogether and participate in an optional retirement program
   88  provided by the employing agency under s. 1012.875, to be known
   89  as the State Community College System Optional Retirement
   90  Program. Pursuant thereto:
   91         1. Through June 30, 2001, the cost to the employer for such
   92  annuity equals shall equal the normal cost portion of the
   93  employer retirement contribution which would be required if the
   94  employee were a member of the Regular Class defined benefit
   95  program, plus the portion of the contribution rate required by
   96  s. 112.363(8) which that would otherwise be assigned to the
   97  Retiree Health Insurance Subsidy Trust Fund. Effective July 1,
   98  2001, each employer shall contribute on behalf of each
   99  participant in the optional program an amount equal to 10.43
  100  percent of the participant’s gross monthly compensation. The
  101  employer shall deduct an amount to provide for the
  102  administration of the optional retirement program. The employer
  103  providing the optional program shall contribute an additional
  104  amount to the Florida Retirement System Trust Fund equal to the
  105  unfunded actuarial accrued liability portion of the Regular
  106  Class contribution rate.
  107         2. The decision to participate in such an optional
  108  retirement program is shall be irrevocable for as long as the
  109  employee holds a position eligible for participation, except as
  110  provided in subparagraph 3. Any service creditable under the
  111  Florida Retirement System is shall be retained after the member
  112  withdraws from the Florida Retirement system; however,
  113  additional service credit in the Florida Retirement System may
  114  shall not be earned while a member of the optional retirement
  115  program.
  116         3. An employee who has elected to participate in the
  117  optional retirement program shall have one opportunity, at the
  118  employee’s discretion, to choose to transfer from the optional
  119  retirement program to the defined benefit program of the Florida
  120  Retirement System or to the Public Employee Optional Retirement
  121  Program, subject to the terms of the applicable optional
  122  retirement program contracts.
  123         a. If the employee chooses to move to the Public Employee
  124  Optional Retirement Program, any contributions, interest, and
  125  earnings creditable to the employee under the State Community
  126  College System Optional Retirement Program must shall be
  127  retained by the employee in the State Community College System
  128  Optional Retirement Program, and the applicable provisions of s.
  129  121.4501(4) shall govern the election.
  130         b. If the employee chooses to move to the defined benefit
  131  program of the Florida Retirement System, the employee shall
  132  receive service credit equal to his or her years of service
  133  under the State Community College System Optional Retirement
  134  Program.
  135         (I) The cost for such credit is the shall be an amount
  136  representing the present value of that employee’s accumulated
  137  benefit obligation for the affected period of service. The cost
  138  shall be calculated as if the benefit commencement occurs on the
  139  first date the employee becomes would become eligible for
  140  unreduced benefits, using the discount rate and other relevant
  141  actuarial assumptions that were used to value the Florida
  142  Retirement System defined benefit plan liabilities in the most
  143  recent actuarial valuation. The calculation must shall include
  144  any service already maintained under the defined benefit plan in
  145  addition to the years under the State Community College System
  146  Optional Retirement Program. The present value of any service
  147  already maintained must under the defined benefit plan shall be
  148  applied as a credit to total cost resulting from the
  149  calculation. The division shall ensure that the transfer sum is
  150  prepared using a formula and methodology certified by an
  151  enrolled actuary.
  152         (II) The employee must transfer from his or her State
  153  Community College System Optional Retirement Program account and
  154  from other employee moneys as necessary, a sum representing the
  155  present value of that employee’s accumulated benefit obligation
  156  immediately following the time of such movement, determined
  157  assuming that attained service equals the sum of service in the
  158  defined benefit program and service in the State Community
  159  College System Optional Retirement Program.
  160         4. Participation in the optional retirement program is
  161  shall be limited to those employees who satisfy the following
  162  eligibility criteria:
  163         a. The employee must be otherwise eligible for membership
  164  or renewed membership in the Regular Class of the Florida
  165  Retirement System, as provided in s. 121.021(11) and (12) or s.
  166  121.122.
  167         b. The employee must be employed in a full-time position
  168  classified in the Accounting Manual for Florida’s Public
  169  Community Colleges as:
  170         (I) Instructional; or
  171         (II) Executive Management, Instructional Management, or
  172  Institutional Management, if a community college determines that
  173  recruiting to fill a vacancy in the position is to be conducted
  174  in the national or regional market, and:
  175         (A) The duties and responsibilities of the position include
  176  either the formulation, interpretation, or implementation of
  177  policies; or
  178         (B) The duties and responsibilities of the position include
  179  the performance of functions that are unique or specialized
  180  within higher education and that frequently involve the support
  181  of the mission of the community college.
  182         c. The employee must be employed in a position not included
  183  in the Senior Management Service Class of the Florida Retirement
  184  System, as described in s. 121.055.
  185         5. A participant who receives a program distribution,
  186  including a rollover or trustee-to-trustee transfer, funded by
  187  employer contributions shall be deemed to be retired from a
  188  state-administered retirement system if the participant is
  189  subsequently employed by an employer that participates in the
  190  Florida Retirement System. Participants in the program are
  191  subject to the same reemployment limitations, renewed membership
  192  provisions, and forfeiture provisions as are applicable to
  193  regular members of the Florida Retirement System under ss.
  194  121.091(9), 121.122, and 121.091(5), respectively.
  195         6. Eligible community college employees are shall be
  196  compulsory members of the Florida Retirement System until,
  197  pursuant to the procedures set forth in s. 1012.875, a written
  198  election to withdraw from the Florida Retirement system and to
  199  participate in the State Community College System Optional
  200  Retirement Program is filed with the program administrator and
  201  received by the division.
  202         a. A Any community college employee whose program
  203  eligibility results from initial employment must shall be
  204  enrolled in the State Community College System Optional
  205  Retirement Program retroactive to the first day of eligible
  206  employment. The employer retirement contributions paid through
  207  the month of the employee plan change shall be transferred to
  208  the community college to for the employee’s optional program
  209  account, and, effective the first day of the next month, the
  210  employer shall pay the applicable contributions based upon
  211  subparagraph 1.
  212         b. Any community college employee whose program eligibility
  213  is results from a change in status due to the subsequent
  214  designation of the employee’s position as one of those specified
  215  in subparagraph 4. or due to the employee’s appointment,
  216  promotion, transfer, or reclassification to a position specified
  217  in subparagraph 4. must shall be enrolled in the program on upon
  218  the first day of the first full calendar month that such change
  219  in status becomes effective. The employer retirement
  220  contributions paid from the effective date through the month of
  221  the employee plan change must shall be transferred to the
  222  community college to for the employee’s optional program
  223  account, and, effective the first day of the next month, the
  224  employer shall pay the applicable contributions based upon
  225  subparagraph 1.
  226         7. Effective July 1, 2003, through December 31, 2008, any
  227  participant of the State Community College System Optional
  228  Retirement Program who has service credit in the defined benefit
  229  plan of the Florida Retirement System for the period between his
  230  or her first eligibility to transfer from the defined benefit
  231  plan to the optional retirement program and the actual date of
  232  transfer may, during his or her employment, elect to transfer to
  233  the optional retirement program a sum representing the present
  234  value of the accumulated benefit obligation under the defined
  235  benefit retirement program for the such period of service
  236  credit. Upon such transfer, all such service credit previously
  237  earned under the defined benefit program of the Florida
  238  Retirement System during this period is shall be nullified for
  239  purposes of entitlement to a future benefit under the defined
  240  benefit program of the Florida Retirement System.
  241         (f)1. If Whenever an employer that participates in the
  242  Florida Retirement System undertakes the transfer, merger, or
  243  consolidation of governmental services or functions, the
  244  employer must notify the department at least 60 days before
  245  prior to such action and shall provide documentation as required
  246  by the department.
  247         2. If When the agency to which a member’s employing unit is
  248  transferred, merged, or consolidated does not participate in the
  249  Florida Retirement System, a member may shall elect in writing
  250  to remain in the Florida Retirement System or to transfer to the
  251  local retirement system operated by the such agency. If the such
  252  agency does not participate in a local retirement system, the
  253  member shall continue membership in the Florida Retirement
  254  System. In either case, the membership continues shall continue
  255  for as long as the member is employed by the agency to which his
  256  or her unit was transferred, merged, or consolidated.
  257         Section 3. Subsections (1) and (2) of section 121.053,
  258  Florida Statutes, are amended to read:
  259         121.053 Participation in the Elected Officers’ Class for
  260  retired members.—
  261         (1)(a)1.A retiree of a state-administered retirement
  262  system who initially serves in an elective office in a regularly
  263  established position with a covered employer on or after January
  264  1, 2010, may not enroll in the Florida Retirement System as a
  265  renewed member.
  266         2.An elected officer who is elected or appointed to an
  267  elective office and is participating in the Deferred Retirement
  268  Option Program is subject to termination as provided in s.
  269  121.021(39)(b), and reemployment limitations as provided in s.
  270  121.091(9), upon completion of his or her DROP participation
  271  period. An elected official may defer termination as provided in
  272  subparagraph (c)5.
  273         (b)A member who retired before January 1, 2010, under any
  274  existing system as defined in s. 121.021(2), and receives a
  275  benefit thereof, who is initially reemployed before January 1,
  276  2010, and who serves in an office covered by the Elected
  277  Officers’ Class for a period of at least 6 years, is entitled to
  278  receive an additional retirement benefit for such elected
  279  officer service before July 1, 1990, under the Elected Officers’
  280  Class of the Florida Retirement System, as follows:
  281         1.Upon completion of 6 or more years of creditable service
  282  in an office covered by the Elected Officers’ Class, as provided
  283  in s. 121.052, the member shall notify the administrator of his
  284  or her intent to purchase elected officer service before July 1,
  285  1990, and shall pay the member contribution applicable for the
  286  period being claimed, plus 4 percent interest compounded
  287  annually from the first year of service claimed until July 1,
  288  1975, and 6.5 percent interest compounded annually thereafter,
  289  until full payment is made to the Florida Retirement System
  290  Trust Fund; however, the member may purchase retirement credit
  291  under the Elected Officers’ Class only for service as an elected
  292  officer.
  293         2.Upon payment of the amount specified in subparagraph 1.,
  294  the employer shall pay into the Florida Retirement System Trust
  295  Fund the applicable employer contribution for the period of
  296  elected officer service before July 1, 1990, being claimed by
  297  the member, plus 4 percent interest compounded annually from the
  298  first year of service claimed until July 1, 1975, and 6.5
  299  percent interest compounded annually thereafter, until full
  300  payment is made to the Florida Retirement System Trust Fund.
  301         (c)Any retiree of the Florida Retirement System, or any
  302  existing system as defined in s. 121.021(2), who, on or after
  303  July 1, 1990, through December 31, 2009, is serving in, or is
  304  elected or appointed to, an elective office covered by the
  305  Elected Officers’ Class shall be enrolled in the appropriate
  306  subclass of the Elected Officers’ Class of the Florida
  307  Retirement System, and applicable contributions shall be paid
  308  into the Florida Retirement System Trust Fund as provided in s.
  309  121.052(7). Any member who retired under any existing system as
  310  defined in s. 121.021(2), and receives a benefit thereof, and
  311  who serves in an office covered by the Elected Officers’ Class
  312  for a period of at least 6 years, shall be entitled to receive
  313  an additional retirement benefit for such elected officer
  314  service prior to July 1, 1990, under the Elected Officers’ Class
  315  of the Florida Retirement System, as follows:
  316         1. Upon completion of 6 or more years of creditable service
  317  in an office covered by the Elected Officers’ Class, s. 121.052,
  318  such member shall notify the administrator of his or her intent
  319  to purchase elected officer service prior to July 1, 1990, and
  320  shall pay the member contribution applicable for the period
  321  being claimed, plus 4 percent interest compounded annually from
  322  the first year of service claimed until July 1, 1975, and 6.5
  323  percent interest compounded annually thereafter, until full
  324  payment is made to the Florida Retirement System Trust Fund;
  325  however, such member may purchase retirement credit under the
  326  Elected Officers’ Class only for such service as an elected
  327  officer.
  328         2. Upon payment of the amount specified in subparagraph 1.,
  329  the employer shall pay into the Florida Retirement System Trust
  330  Fund the applicable employer contribution for the period of
  331  elected officer service prior to July 1, 1990, being claimed by
  332  the member, plus 4 percent interest compounded annually from the
  333  first year of service claimed until July 1, 1975, and 6.5
  334  percent interest compounded annually thereafter, until full
  335  payment is made to the Florida Retirement System Trust Fund.
  336         (b) Any retired member of the Florida Retirement System, or
  337  any existing system as defined in s. 121.021(2), who, on or
  338  after July 1, 1990, is serving in, or is elected or appointed
  339  to, an elective office covered by the Elected Officers’ Class
  340  shall be enrolled in the appropriate subclass of the Elected
  341  Officers’ Class of the Florida Retirement System, and applicable
  342  contributions shall be paid into the Florida Retirement System
  343  Trust Fund as provided in s. 121.052(7). Pursuant thereto:
  344         1. The Any such retired member may shall be eligible to
  345  continue to receive retirement benefits as well as compensation
  346  for the elected officer service if for as long as he or she
  347  remains in an elective office covered by the Elected Officers’
  348  Class.
  349         2. If the any such member serves in an elective office
  350  covered by the Elected Officers’ Class and becomes vested under
  351  that class, he or she is shall be entitled to receive an
  352  additional retirement benefit for the such elected officer
  353  service.
  354         3. The Such member is shall be entitled to purchase
  355  additional retirement credit in the Elected Officers’ Class for
  356  any postretirement service performed in an elected position
  357  eligible for the Elected Officers’ Class before prior to July 1,
  358  1990, or in the Regular Class for any postretirement service
  359  performed in any other regularly established position before
  360  prior to July 1, 1991, by paying the applicable Elected
  361  Officers’ Class or Regular Class employee and employer
  362  contributions for the period being claimed, plus 4 percent
  363  interest compounded annually from the first year of service
  364  claimed until July 1, 1975, and 6.5 percent interest compounded
  365  thereafter, until full payment is made to the Florida Retirement
  366  System Trust Fund. The contribution for postretirement Regular
  367  Class service between July 1, 1985, and July 1, 1991, for which
  368  the reemployed retiree contribution was paid, is shall be the
  369  difference between the such contribution and the total
  370  applicable contribution for the period being claimed, plus
  371  interest. The employer of such member may pay the applicable
  372  employer contribution in lieu of the member. If a member does
  373  not wish to claim credit for all of the postretirement service
  374  for which he or she is eligible, the service the member claims
  375  must be the most recent service.
  376         4. Creditable service for which credit was received, or
  377  which remained unclaimed, at retirement may not be claimed or
  378  applied toward service credit earned following renewed
  379  membership. However, service earned in accordance with the
  380  renewed membership provisions of in s. 121.122 may be used in
  381  conjunction with creditable service earned under this paragraph,
  382  if provided applicable vesting requirements and other existing
  383  statutory conditions required by this chapter are met.
  384         5. An elected officer who is elected or appointed to an
  385  elective office and is participating in the Deferred Retirement
  386  Option Program is not subject to termination as provided in s.
  387  121.021(39)(b), or reemployment limitations as provided in s.
  388  121.091(9), until the end of his or her current term of office
  389  or, if the officer is consecutively elected or reelected to an
  390  elective office eligible for coverage under the Florida
  391  Retirement System, until he or she no longer holds such an
  392  elective office, as follows:
  393         a. At the end of the 60-month DROP period:
  394         (I) The officer’s DROP account may not shall accrue no
  395  additional monthly benefits, but shall continue to earn interest
  396  as provided in s. 121.091(13).
  397         (II) No Retirement contributions are not shall be required
  398  of the employer of the elected officer and no additional
  399  retirement credit may not shall be earned under the Florida
  400  Retirement System.
  401         b. Nothing herein shall prevent An elected officer may from
  402  voluntarily terminate terminating his or her elective office at
  403  any time and electing to receive his or her DROP proceeds.
  404  However, until termination requirements are fulfilled as
  405  provided in s. 121.021(39), an any elected officer whose
  406  termination limitations are extended by this section is shall be
  407  ineligible for renewed membership in the system and may not
  408  shall receive no pension payments, DROP lump sum payments, or
  409  any other state payment other than the statutorily determined
  410  salary, travel, and per diem for the elective office.
  411         c. Upon termination, the officer shall receive his or her
  412  accumulated DROP account, plus interest, and shall accrue and
  413  commence receiving monthly retirement benefits, which must shall
  414  be paid on a prospective basis only.
  415  
  416  However, an officer electing to participate in the Deferred
  417  Retirement Option Program on or before June 30, 2002, is shall
  418  not be required to terminate and remains shall remain subject to
  419  the provisions of this subparagraph as adopted in section 1 of
  420  chapter 2001-235, Laws of Florida.
  421         (2) Upon attaining his or her normal retirement date and
  422  payment of the amount specified in paragraphs (1)(b) and (c)
  423  (1)(a) and (b), and upon application to the administrator of the
  424  intent to retire, the member shall receive a monthly benefit
  425  under this section, in addition to any benefits already being
  426  received, which shall commence on the last day of the month of
  427  retirement and be payable on the last day of the month
  428  thereafter during his or her lifetime. The amount of the such
  429  monthly benefit is shall be the total percentage of retirement
  430  credit purchased under this section multiplied by the member’s
  431  average monthly compensation as an elected officer, adjusted
  432  according to the option selected at retirement under s.
  433  121.091(6).
  434         Section 4. Paragraph (f) of subsection (1) and paragraphs
  435  (c) and (e) of subsection (6) of section 121.055, Florida
  436  Statutes, are amended to read:
  437         121.055 Senior Management Service Class.—There is hereby
  438  established a separate class of membership within the Florida
  439  Retirement System to be known as the “Senior Management Service
  440  Class,” which shall become effective February 1, 1987.
  441         (1)
  442         (f) Effective July 1, 1997:
  443         1. Except as provided in subparagraph 3., an any elected
  444  state officer eligible for membership in the Elected Officers’
  445  Class under s. 121.052(2)(a), (b), or (c) who elects membership
  446  in the Senior Management Service Class under s. 121.052(3)(c)
  447  may, within 6 months after assuming office or within 6 months
  448  after this act becomes a law for serving elected state officers,
  449  elect to participate in the Senior Management Service Optional
  450  Annuity Program, as provided in subsection (6), in lieu of
  451  membership in the Senior Management Service Class.
  452         2. Except as provided in subparagraph 3., an any elected
  453  county officer of a local agency employer eligible for
  454  membership in the Elected Officers’ Class under s. 121.052(2)(d)
  455  who elects membership in the Senior Management Service Class
  456  under s. 121.052(3)(c) may, within 6 months after assuming
  457  office, or within 6 months after this act becomes a law for
  458  serving elected county officers of a local agency employer,
  459  elect to withdraw from the Florida Retirement System participate
  460  in a lifetime monthly annuity program, as provided in
  461  subparagraph (b)2., in lieu of membership in the Senior
  462  Management Service Class.
  463         3.A retiree of a state-administered retirement system who
  464  is initially reemployed on or after January 1, 2010, as an
  465  elected official eligible for the Elected Officers’ Class is not
  466  eligible for renewed membership in the Senior Management Service
  467  Class or in the Senior Management Service Optional Annuity
  468  Program as provided in subsection (6), or to withdraw from the
  469  Florida Retirement System as a renewed member as provided in
  470  subparagraph (b)2., as applicable, in lieu of Senior Management
  471  Service Class membership.
  472         (6)
  473         (c) Participation.—
  474         1. An any eligible employee who is employed on or before
  475  February 1, 1987, may elect to participate in the optional
  476  annuity program in lieu of participation in the Senior
  477  Management Service Class. Such election must shall be made in
  478  writing and filed with the department and the personnel officer
  479  of the employer on or before May 1, 1987. An Any eligible
  480  employee who is employed on or before February 1, 1987, and who
  481  fails to make an election to participate in the optional annuity
  482  program by May 1, 1987, shall be deemed to have elected
  483  membership in the Senior Management Service Class. However, a
  484  retiree of a state-administered retirement system who is
  485  initially reemployed on or after January 1, 2010, is not
  486  eligible for renewed membership in the Senior Management Service
  487  Optional Annuity Program.
  488         2. An Any employee who becomes eligible to participate in
  489  the optional annuity program by reason of initial employment
  490  commencing after February 1, 1987, may, within 90 days after the
  491  date of commencing commencement of employment, elect to
  492  participate in the optional annuity program. Such election must
  493  shall be made in writing and filed with the personnel officer of
  494  the employer. An Any eligible employee who does not within 90
  495  days after commencing commencement of such employment elect to
  496  participate in the optional annuity program shall be deemed to
  497  have elected membership in the Senior Management Service Class.
  498         3. A person who is appointed to a position in the Senior
  499  Management Service Class and who is a member of an existing
  500  retirement system or the Special Risk or Special Risk
  501  Administrative Support Classes of the Florida Retirement System
  502  may elect to remain in such system or class in lieu of
  503  participation in the Senior Management Service Class or optional
  504  annuity program. Such election must shall be made in writing and
  505  filed with the department and the personnel officer of the
  506  employer within 90 days of such appointment. Any eligible
  507  employee who fails to make an election to participate in the
  508  existing system, the Special Risk Class of the Florida
  509  Retirement System, the Special Risk Administrative Support Class
  510  of the Florida Retirement System, or the optional annuity
  511  program shall be deemed to have elected membership in the Senior
  512  Management Service Class.
  513         4. Except as provided in subparagraph 5., an employee’s
  514  election to participate in the optional annuity program is
  515  irrevocable if the as long as such employee continues to be
  516  employed in an eligible position and continues to meet the
  517  eligibility requirements set forth in this paragraph.
  518         5. Effective from July 1, 2002, through September 30, 2002,
  519  any active employee in a regularly established position who has
  520  elected to participate in the Senior Management Service Optional
  521  Annuity Program has one opportunity to choose to move from the
  522  Senior Management Service Optional Annuity Program to the
  523  Florida Retirement System defined benefit program.
  524         a. The election must be made in writing and must be filed
  525  with the department and the personnel officer of the employer
  526  before October 1, 2002, or, in the case of an active employee
  527  who is on a leave of absence on July 1, 2002, within 90 days
  528  after the conclusion of the leave of absence. This election is
  529  irrevocable.
  530         b. The employee shall will receive service credit under the
  531  defined benefit program of the Florida Retirement System equal
  532  to his or her years of service under the Senior Management
  533  Service Optional Annuity Program. The cost for such credit is
  534  the shall be an amount representing the present value of that
  535  employee’s accumulated benefit obligation for the affected
  536  period of service.
  537         c. The employee must transfer the total accumulated
  538  employer contributions and earnings on deposit in his or her
  539  Senior Management Service Optional Annuity Program account. If
  540  the transferred amount is not sufficient to pay the amount due,
  541  the employee must pay a sum representing the remainder of the
  542  amount due. In no case may The employee may not retain any
  543  employer contributions or earnings thereon from the Senior
  544  Management Service Optional Annuity Program account.
  545         (e) Benefits.—
  546         1. Benefits are shall be payable under the Senior
  547  Management Service Optional Annuity Program only to participants
  548  in the program, or their beneficiaries as designated by the
  549  participant in the contract with a provider company, and must
  550  such benefits shall be paid by the designated company in
  551  accordance with the terms of the annuity contract or contracts
  552  applicable to the participant. A participant must be terminated
  553  from all employment with all Florida Retirement System employers
  554  as provided in s. 121.021(39) to begin receiving the employer
  555  funded benefit. Benefits funded by employer contributions are
  556  shall be payable under the terms of the contract only as a
  557  lifetime annuity to the participant, his or her beneficiary, or
  558  his or her estate, in addition to except for:
  559         a. A lump-sum payment to the beneficiary upon the death of
  560  the participant;
  561         b. A cash-out of a de minimis account upon the request of a
  562  former participant who has been terminated for a minimum of 6
  563  months from the employment that entitled him or her to optional
  564  annuity program participation. A de minimis account is an
  565  account with a provider company containing employer
  566  contributions and accumulated earnings of not more than $5,000
  567  made under the provisions of this chapter. Such cash-out must be
  568  a complete liquidation of the account balance with that company
  569  and is subject to the provisions of the Internal Revenue Code;
  570  or
  571         c.A mandatory distribution of a de minimis account of a
  572  former participant who has been terminated for a minimum of 6
  573  months from the employment that entitled him or her to optional
  574  annuity program participation as authorized by the department;
  575  or
  576         d.c. A lump-sum direct rollover distribution whereby all
  577  accrued benefits, plus interest and investment earnings, are
  578  paid from the participant’s account directly to the custodian of
  579  an eligible retirement plan, as defined in s. 402(c)(8)(B) of
  580  the Internal Revenue Code, on behalf of the participant.
  581  
  582  As used in this subparagraph, a “de minimis account” means an
  583  account with a provider company containing employer
  584  contributions and accumulated earnings of not more than $5,000
  585  made under this chapter.
  586         2. The benefits payable to any person under the Senior
  587  Management Service Optional Annuity Program, and any
  588  contribution accumulated under such program, are shall not be
  589  subject to assignment, execution, or attachment or to any legal
  590  process whatsoever.
  591         3. Except as provided in subparagraph 4., a participant who
  592  terminates employment and receives a distribution, including a
  593  rollover or trustee-to-trustee transfer, optional annuity
  594  program benefits funded by employer contributions shall be
  595  deemed to be retired from a state-administered retirement system
  596  if the participant is subsequently employed with an in the event
  597  of subsequent employment with any employer that participates in
  598  the Florida Retirement System.
  599         4.A participant who receives optional annuity program
  600  benefits funded by employer contributions as a mandatory
  601  distribution of a de minimis account authorized by the
  602  department is not considered a retiree.
  603         Section 5. Subsections (9) and (13) of section 121.091,
  604  Florida Statutes, are amended to read:
  605         121.091 Benefits payable under the system.—Benefits may not
  606  be paid under this section unless the member has terminated
  607  employment as provided in s. 121.021(39)(a) or begun
  608  participation in the Deferred Retirement Option Program as
  609  provided in subsection (13), and a proper application has been
  610  filed in the manner prescribed by the department. The department
  611  may cancel an application for retirement benefits when the
  612  member or beneficiary fails to timely provide the information
  613  and documents required by this chapter and the department’s
  614  rules. The department shall adopt rules establishing procedures
  615  for application for retirement benefits and for the cancellation
  616  of such application when the required information or documents
  617  are not received.
  618         (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
  619         (a)Any person who is retired under this chapter, except
  620  under the disability retirement provisions of subsection (4),
  621  may be employed by any private employer or public employer that
  622  does not participate in a state-administered retirement system
  623  and may receive compensation from that employment without
  624  limiting or restricting in any way the retirement benefits
  625  payable to that person.
  626         (b)The limitations on receiving a retirement benefit while
  627  reemployed by an employer participating in a state-administered
  628  retirement system are:
  629         1.For retirements effective on or after January 1, 2010,
  630  or DROP participation ending on or after January 1, 2010:
  631         a.The retiree may not receive a retirement benefit if the
  632  retiree is receiving a salary or wages from reemployment with an
  633  employer participating in the Florida Retirement System after
  634  the date of retirement. However, a DROP participant may continue
  635  employment and receive a salary during the period of
  636  participation in DROP, as provided in subsection (13). Any
  637  retiree employed in violation of this subparagraph and any
  638  agency that employs or appoints such person without notifying
  639  the Division of Retirement to suspend retirement benefits are
  640  jointly and severally liable for any retirement benefits paid
  641  during reemployment. To avoid liability, the employing agency
  642  must have a written statement from the employee that he or she
  643  is not retired from a state-administered retirement system. Any
  644  benefits received by a retiree while reemployed must be repaid
  645  to the Florida Retirement System Trust Fund, and his or her
  646  benefits remain suspended until repayment is made.
  647         b.There are no exceptions to the reemployment limitations
  648  in subparagraph (a) and the exceptions in subparagraphs (b)3.
  649  and 4. do not apply.
  650         2.For retirements effective before January 1, 2010, or
  651  DROP participation ending before January 1, 2010, a retiree may
  652  not receive a salary from reemployment with an employer
  653  participating in the Florida Retirement System and retirement
  654  benefits under this chapter for 12 months immediately after
  655  retirement. However, a DROP participant may continue employment
  656  and receive a salary during the period of participation in DROP
  657  as provided in subsection (13). A retiree who is reemployed with
  658  an employer participating in the Florida Retirement System after
  659  he or she has met the definition of termination in s.
  660  121.021(39), but before completing the 12-month limitation
  661  period must give timely notice of this fact in writing to the
  662  employer and to the Division of Retirement and have his or her
  663  retirement benefits suspended while employed during the balance
  664  of the 12-month limitation period unless the employee exceeds
  665  the 780-hour reemployment limitation set forth in law. Any
  666  retiree employed in violation of this sub-subparagraph and any
  667  agency that employs or appoints such person without notifying
  668  the division to suspend retirement benefits are jointly and
  669  severally liable for any benefits paid during the reemployment
  670  limitation period. To avoid liability, the employing agency must
  671  have a written statement from the employee that he or she is not
  672  retired from a state-administered retirement system. Any
  673  retirement benefits received by a retiree while reemployed
  674  during the reemployment limitation period must be repaid to the
  675  Florida Retirement System Trust Fund, and his or her retirement
  676  benefits remain suspended until repayment is made. Benefits
  677  suspended beyond the reemployment limitation apply toward
  678  repayment of benefits received in violation of the reemployment
  679  limitation.
  680         a.A district school board may reemploy a retiree as a
  681  substitute or hourly teacher, education paraprofessional,
  682  transportation assistant, bus driver, or food service worker on
  683  a noncontractual basis after he or she has met the definition of
  684  termination in s. 121.021(39). A district school board may
  685  reemploy a retiree as instructional personnel, as defined in s.
  686  1012.01(2)(a), on an annual contractual basis after he or she
  687  has met the definition of termination in s. 121.021(39). A
  688  retiree who is reemployed before meeting the definition of
  689  termination voids his or her application for retirement
  690  benefits. A district school board that reemploys such teachers,
  691  education paraprofessionals, transportation assistants, bus
  692  drivers, or food service workers is subject to the retirement
  693  contribution.
  694         b.A community college board of trustees may reemploy a
  695  retiree as an adjunct instructor or as a participant in a phased
  696  retirement program within the Florida Community College System
  697  after he or she has met the definition of termination in s.
  698  121.021(39). A retiree who is reemployed within 1 calendar month
  699  after retirement voids his or her application for retirement
  700  benefits. A board of trustees that reemploys such instructor is
  701  subject to the retirement contribution. A retiree may be
  702  reemployed as an adjunct instructor for up to 780 hours during
  703  the first 12 months of retirement. A retiree reemployed for more
  704  than 780 hours during the first 12 months of retirement must
  705  give timely notice in writing to the employer and to the
  706  Division of Retirement of the date he or she will exceed the
  707  limitation. The division shall suspend his or her retirement
  708  benefits for the remainder of the 12-month limitation period.
  709  Any retiree employed in violation of this subparagraph and any
  710  agency that employs or appoints such person without notifying
  711  the division are jointly and severally liable for any retirement
  712  benefits paid during the reemployment limitation period. To
  713  avoid liability, the employee must submit a written statement to
  714  the employing agency stating that he or she is not retired from
  715  a state-administered retirement system. Any retirement benefits
  716  received by a retiree while reemployed in excess of 780 hours
  717  during the 12-month limitation period must be repaid to the
  718  Florida Retirement System Trust Fund, and his or her benefits
  719  remain suspended until repayment is made. Benefits suspended
  720  beyond the end of the 12-month limitation period apply toward
  721  repayment of benefits received in violation of the 780-hour
  722  reemployment limitation.
  723         c.The State University System may reemploy a retiree
  724  member as an adjunct faculty member or as a participant in a
  725  phased retirement program within the State University System
  726  after he or she has met the definition of termination in s.
  727  121.021(39). A retiree who is reemployed before meeting the
  728  definition of termination voids his or her application for
  729  retirement benefits. The State University System is subject to
  730  the retirement contribution. A retiree may be reemployed as an
  731  adjunct faculty member or a participant in a phased retirement
  732  program for up to 780 hours during the first 12 months of his or
  733  her retirement. Any retiree reemployed for more than 780 hours
  734  during the 12-month limitation period must give timely notice in
  735  writing to the employer and to the Division of Retirement of the
  736  date he or she will exceed the limitation. The division shall
  737  suspend his or her retirement benefits for the remainder of the
  738  12-month limitation period. Any retiree employed in violation of
  739  this subparagraph and any agency that employs or appoints such
  740  person without notifying the division to suspend retirement
  741  benefits are jointly and severally liable for any benefits paid
  742  during the reemployment limitation period. To avoid liability,
  743  the employee must submit a written statement to the employing
  744  agency stating that he or she is not retired from a state
  745  administered retirement system. Any benefits received by a
  746  retiree while reemployed in excess of 780 hours during the first
  747  12 months of retirement must be repaid to the Florida Retirement
  748  System Trust Fund, and his or her benefits remain suspended
  749  until repayment is made. Benefits suspended beyond the end of
  750  the 12-month limitation period apply toward repayment of
  751  benefits received in violation of the 780-hour reemployment
  752  limitation.
  753         d.The Board of Trustees of the Florida School for the Deaf
  754  and the Blind may reemploy a retiree as a substitute teacher,
  755  substitute residential instructor, or substitute nurse on a
  756  noncontractual basis after he or she has met the definition of
  757  termination in s. 121.021(39). The Board of Trustees may
  758  reemploy a retiree as instructional personnel, as defined in s.
  759  1012.01(2)(a), on an annual contractual basis after he or she
  760  has met the definition of termination in s. 121.021(39). A
  761  retiree who is reemployed before meeting the definition of
  762  termination voids his or her application for retirement
  763  benefits. The Board of Trustees reemploying such teachers,
  764  residential instructors, or nurses is subject to the retirement
  765  contribution.
  766         e.A developmental research school may reemploy a retiree
  767  as a substitute or hourly teacher or an education
  768  paraprofessional, as defined in s. 1012.01(2), on a
  769  noncontractual basis after he or she has met the definition of
  770  termination in s. 121.021(39). A developmental research school
  771  may reemploy a retiree as instructional personnel, as defined in
  772  s. 1012.01(2)(a), on an annual contractual basis after the
  773  retiree has met the definition of termination in s. 121.021(39).
  774  A developmental research school that reemploys such teachers and
  775  education paraprofessionals is subject to the retirement
  776  contribution.
  777         f.A charter school may reemploy a retiree as a substitute
  778  or hourly teacher on a noncontractual basis after he or she has
  779  met the definition of termination in s. 121.021(39). A charter
  780  school may reemploy a retiree as instructional personnel, as
  781  defined in s. 1012.01(2)(a), on an annual contractual basis
  782  after he or she has met the definition of termination in s.
  783  121.021(39). A charter school that reemploys such teachers and
  784  instructional personnel is subject to the retirement
  785  contribution.
  786         g.An agency may reemploy a retiree as a firefighter or
  787  paramedic after he or she has met the definition of termination
  788  in s. 121.021(39). Any retiree who is reemployed within 1
  789  calendar month after retirement shall void his or her
  790  application for retirement benefits. The agency reemploying such
  791  firefighter or paramedic is subject to the retirement
  792  contribution. A retiree may be reemployed as a firefighter or
  793  paramedic for up to 780 hours during the first 12 months of his
  794  or her retirement. Any retiree reemployed for more than 780
  795  hours during the first 12 months of retirement must give timely
  796  notice in writing to the employer and to the Division of
  797  Retirement of the date he or she will exceed the limitation. The
  798  division shall suspend his or her retirement benefits for the
  799  remainder of the 12-month limitation period. Any retiree
  800  employed in violation of this subparagraph and any agency that
  801  employs or appoints such person without notifying the division
  802  to suspend retirement benefits are jointly and severally liable
  803  for any benefits paid during the reemployment limitation period.
  804  To avoid liability, the employee must submit a written statement
  805  to the employing agency stating that he or she is not retired
  806  from a state-administered retirement system. Any benefits
  807  received by a retiree while reemployed in excess of 780 hours
  808  during the 12-month limitation period must be repaid to the
  809  Florida Retirement System Trust Fund, and his or her benefits
  810  remain suspended until repayment is made. Benefits suspended
  811  beyond the end of the 12-month limitation period apply toward
  812  repayment of benefits received in violation of the 780-hour
  813  reemployment limitation.
  814         3.a.The employment of a retiree or DROP participant of a
  815  state-administered retirement system does not affect the average
  816  final compensation or years of creditable service of the retiree
  817  or DROP participant.
  818         b.(I)Before July 1, 1991, upon employment of any person,
  819  other than an elected officer as provided in s. 121.053, who is
  820  retired under a state-administered retirement program, the
  821  employer must pay retirement contributions in an amount equal to
  822  the unfunded actuarial liability portion of the employer
  823  contribution which would be required for regular members of the
  824  Florida Retirement System.
  825         (II)For retirees initially reemployed from July 1, 1991,
  826  through December 31, 2009, contributions must be made as
  827  provided in s. 121.122 for retirees who have renewed membership
  828  or as provided in subsection (13) for DROP participants.
  829         c.Any person who is retired under a state-administered
  830  retirement program and who is initially reemployed on or after
  831  January 1, 2010, may not renew membership in the Florida
  832  Retirement System. The employer must pay retirement
  833  contributions in an amount equal to the unfunded actuarial
  834  liability portion of the employer contribution which would be
  835  required for active members of the Florida Retirement System in
  836  addition to the contributions required by s. 121.76.
  837         4.a.A retiree who is elected or appointed to an elective
  838  office eligible for the Elected Officers’ Class on or after July
  839  1, 1990, and initially enrolled through December 31, 2009, must
  840  be enrolled in the Florida Retirement System as provided in s.
  841  121.053(1)(c) or, if holding an elective public office that does
  842  not qualify for the Elected Officers’ Class on or after July 1,
  843  1991, and initially enrolled through December 31, 2009, must be
  844  enrolled in the Florida Retirement System as provided in s.
  845  121.122, and shall continue to receive retirement benefits as
  846  well as compensation for the elected officer’s service as long
  847  as he or she remains in elective office. However, a retiree who
  848  served in an elective office before July 1, 1990, suspended his
  849  or her retirement benefit, and had his or her Florida Retirement
  850  System membership reinstated shall, upon retirement from such
  851  office, have his or her retirement benefit recalculated to
  852  include the additional service and compensation earned.
  853         b.A retiree with renewed membership established before
  854  January 1, 2010, and who is not receiving a benefit based on
  855  this service, who is elected or appointed to an elective office
  856  shall become a member of the Elected Officers’ Class or the
  857  Regular Class depending upon the designation for the position.
  858         c.A retiree who is elected or appointed to an elective
  859  office on or after January 1, 2010, and who is initially
  860  reemployed in a position covered by the Florida Retirement
  861  System may not be enrolled in the Florida Retirement System and
  862  may not receive retirement benefits after meeting the definition
  863  of termination in s. 121.021(39).
  864         5.A person who is holding an elective office which is
  865  covered by the Florida Retirement System and who is concurrently
  866  employed in nonelected covered employment may elect to retire
  867  while continuing employment in the elective public office if he
  868  or she terminates his or her nonelected covered employment.
  869         a.For retirement effective before January 1, 2010, or DROP
  870  participation ending before January 1, 2010, any person who
  871  exercises this election shall receive his or her retirement
  872  benefits in addition to the compensation of the elective office
  873  without regard to the time limitations otherwise provided in
  874  this subsection. A person who seeks to exercise the provisions
  875  of this subparagraph, as they existed before May 3, 1984, is not
  876  deemed retired under those provisions unless the person is
  877  eligible to retire under this subparagraph as amended by chapter
  878  84-11, Laws of Florida.
  879         b.For retirement effective on or after January 1, 2010, or
  880  DROP participation ending on or after January 1, 2010, any
  881  person who exercises this election may not receive retirement
  882  benefits in addition to compensation for the elective office.
  883         6.The limitations of this paragraph apply to reemployment
  884  in any capacity with an employer irrespective of the category of
  885  funds from which the person is compensated.
  886         7.This paragraph regarding reemployment after retirement
  887  applies to DROP participants effective upon termination from
  888  employment and the end of DROP participation.
  889         (c)This subsection applies to retirees, as defined in s.
  890  121.4501(2), of the Public Employee Optional Retirement Program
  891  created in part II, subject to the following conditions:
  892         1.The retiree may not be reemployed with an employer
  893  participating in the Florida Retirement System as provided in
  894  paragraph (b) until the person has been retired for 3 months,
  895  unless the participant has reached the normal retirement
  896  requirements of the defined benefit plan as provided in s.
  897  121.021(29).
  898         2.A retiree employed in violation of this subsection and
  899  the agency that employs or appoints such person are jointly and
  900  severally liable for reimbursement of any retirement benefits
  901  paid to the retirement trust fund from which the benefits were
  902  paid, including the Retirement System Trust Fund and the Public
  903  Employee Optional Retirement Program Trust Fund, as appropriate.
  904  To be employed, the employee must submit to the employing agency
  905  a written statement that he or she is not retired from a state
  906  administered retirement system.
  907         (a) Any person who is retired under this chapter, except
  908  under the disability retirement provisions of subsection (4),
  909  may be employed by an employer that does not participate in a
  910  state-administered retirement system and may receive
  911  compensation from that employment without limiting or
  912  restricting in any way the retirement benefits payable to that
  913  person.
  914         (b)1. Any person who is retired under this chapter, except
  915  under the disability retirement provisions of subsection (4),
  916  may be reemployed by any private or public employer after
  917  retirement and receive retirement benefits and compensation from
  918  his or her employer without any limitations, except that a
  919  person may not receive both a salary from reemployment with any
  920  agency participating in the Florida Retirement System and
  921  retirement benefits under this chapter for a period of 12 months
  922  immediately subsequent to the date of retirement. However, a
  923  DROP participant shall continue employment and receive a salary
  924  during the period of participation in the Deferred Retirement
  925  Option Program, as provided in subsection (13).
  926         2. Any person to whom the limitation in subparagraph 1.
  927  applies who violates such reemployment limitation and who is
  928  reemployed with any agency participating in the Florida
  929  Retirement System before completion of the 12-month limitation
  930  period shall give timely notice of this fact in writing to the
  931  employer and to the division and shall have his or her
  932  retirement benefits suspended for the balance of the 12-month
  933  limitation period. Any person employed in violation of this
  934  paragraph and any employing agency which knowingly employs or
  935  appoints such person without notifying the Division of
  936  Retirement to suspend retirement benefits shall be jointly and
  937  severally liable for reimbursement to the retirement trust fund
  938  of any benefits paid during the reemployment limitation period.
  939  To avoid liability, such employing agency shall have a written
  940  statement from the retiree that he or she is not retired from a
  941  state-administered retirement system. Any retirement benefits
  942  received while reemployed during this reemployment limitation
  943  period shall be repaid to the retirement trust fund, and
  944  retirement benefits shall remain suspended until such repayment
  945  has been made. Benefits suspended beyond the reemployment
  946  limitation shall apply toward repayment of benefits received in
  947  violation of the reemployment limitation.
  948         3. A district school board may reemploy a retired member as
  949  a substitute or hourly teacher, education paraprofessional,
  950  transportation assistant, bus driver, or food service worker on
  951  a noncontractual basis after he or she has been retired for 1
  952  calendar month, in accordance with s. 121.021(39). A district
  953  school board may reemploy a retired member as instructional
  954  personnel, as defined in s. 1012.01(2)(a), on an annual
  955  contractual basis after he or she has been retired for 1
  956  calendar month, in accordance with s. 121.021(39). Any other
  957  retired member who is reemployed within 1 calendar month after
  958  retirement shall void his or her application for retirement
  959  benefits. District school boards reemploying such teachers,
  960  education paraprofessionals, transportation assistants, bus
  961  drivers, or food service workers are subject to the retirement
  962  contribution required by subparagraph 7.
  963         4. A community college board of trustees may reemploy a
  964  retired member as an adjunct instructor, that is, an instructor
  965  who is noncontractual and part-time, or as a participant in a
  966  phased retirement program within the Florida Community College
  967  System, after he or she has been retired for 1 calendar month,
  968  in accordance with s. 121.021(39). Any retired member who is
  969  reemployed within 1 calendar month after retirement shall void
  970  his or her application for retirement benefits. Boards of
  971  trustees reemploying such instructors are subject to the
  972  retirement contribution required in subparagraph 7. A retired
  973  member may be reemployed as an adjunct instructor for no more
  974  than 780 hours during the first 12 months of retirement. Any
  975  retired member reemployed for more than 780 hours during the
  976  first 12 months of retirement shall give timely notice in
  977  writing to the employer and to the division of the date he or
  978  she will exceed the limitation. The division shall suspend his
  979  or her retirement benefits for the remainder of the first 12
  980  months of retirement. Any person employed in violation of this
  981  subparagraph and any employing agency which knowingly employs or
  982  appoints such person without notifying the Division of
  983  Retirement to suspend retirement benefits shall be jointly and
  984  severally liable for reimbursement to the retirement trust fund
  985  of any benefits paid during the reemployment limitation period.
  986  To avoid liability, such employing agency shall have a written
  987  statement from the retiree that he or she is not retired from a
  988  state-administered retirement system. Any retirement benefits
  989  received by a retired member while reemployed in excess of 780
  990  hours during the first 12 months of retirement shall be repaid
  991  to the Retirement System Trust Fund, and retirement benefits
  992  shall remain suspended until repayment is made. Benefits
  993  suspended beyond the end of the retired member’s first 12 months
  994  of retirement shall apply toward repayment of benefits received
  995  in violation of the 780-hour reemployment limitation.
  996         5. The State University System may reemploy a retired
  997  member as an adjunct faculty member or as a participant in a
  998  phased retirement program within the State University System
  999  after the retired member has been retired for 1 calendar month,
 1000  in accordance with s. 121.021(39). Any retired member who is
 1001  reemployed within 1 calendar month after retirement shall void
 1002  his or her application for retirement benefits. The State
 1003  University System is subject to the retired contribution
 1004  required in subparagraph 7., as appropriate. A retired member
 1005  may be reemployed as an adjunct faculty member or a participant
 1006  in a phased retirement program for no more than 780 hours during
 1007  the first 12 months of his or her retirement. Any retired member
 1008  reemployed for more than 780 hours during the first 12 months of
 1009  retirement shall give timely notice in writing to the employer
 1010  and to the division of the date he or she will exceed the
 1011  limitation. The division shall suspend his or her retirement
 1012  benefits for the remainder of the first 12 months of retirement.
 1013  Any person employed in violation of this subparagraph and any
 1014  employing agency which knowingly employs or appoints such person
 1015  without notifying the Division of Retirement to suspend
 1016  retirement benefits shall be jointly and severally liable for
 1017  reimbursement to the retirement trust fund of any benefits paid
 1018  during the reemployment limitation period. To avoid liability,
 1019  such employing agency shall have a written statement from the
 1020  retiree that he or she is not retired from a state-administered
 1021  retirement system. Any retirement benefits received by a retired
 1022  member while reemployed in excess of 780 hours during the first
 1023  12 months of retirement shall be repaid to the Retirement System
 1024  Trust Fund, and retirement benefits shall remain suspended until
 1025  repayment is made. Benefits suspended beyond the end of the
 1026  retired member’s first 12 months of retirement shall apply
 1027  toward repayment of benefits received in violation of the 780
 1028  hour reemployment limitation.
 1029         6. The Board of Trustees of the Florida School for the Deaf
 1030  and the Blind may reemploy a retired member as a substitute
 1031  teacher, substitute residential instructor, or substitute nurse
 1032  on a noncontractual basis after he or she has been retired for 1
 1033  calendar month, in accordance with s. 121.021(39). Any retired
 1034  member who is reemployed within 1 calendar month after
 1035  retirement shall void his or her application for retirement
 1036  benefits. The Board of Trustees of the Florida School for the
 1037  Deaf and the Blind reemploying such teachers, residential
 1038  instructors, or nurses is subject to the retirement contribution
 1039  required by subparagraph 7. Reemployment of a retired member as
 1040  a substitute teacher, substitute residential instructor, or
 1041  substitute nurse is limited to 780 hours during the first 12
 1042  months of his or her retirement. Any retired member reemployed
 1043  for more than 780 hours during the first 12 months of retirement
 1044  shall give timely notice in writing to the employer and to the
 1045  division of the date he or she will exceed the limitation. The
 1046  division shall suspend his or her retirement benefits for the
 1047  remainder of the first 12 months of retirement. Any person
 1048  employed in violation of this subparagraph and any employing
 1049  agency which knowingly employs or appoints such person without
 1050  notifying the Division of Retirement to suspend retirement
 1051  benefits shall be jointly and severally liable for reimbursement
 1052  to the retirement trust fund of any benefits paid during the
 1053  reemployment limitation period. To avoid liability, such
 1054  employing agency shall have a written statement from the retiree
 1055  that he or she is not retired from a state-administered
 1056  retirement system. Any retirement benefits received by a retired
 1057  member while reemployed in excess of 780 hours during the first
 1058  12 months of retirement shall be repaid to the Retirement System
 1059  Trust Fund, and his or her retirement benefits shall remain
 1060  suspended until payment is made. Benefits suspended beyond the
 1061  end of the retired member’s first 12 months of retirement shall
 1062  apply toward repayment of benefits received in violation of the
 1063  780-hour reemployment limitation.
 1064         7. The employment by an employer of any retiree or DROP
 1065  participant of any state-administered retirement system shall
 1066  have no effect on the average final compensation or years of
 1067  creditable service of the retiree or DROP participant. Prior to
 1068  July 1, 1991, upon employment of any person, other than an
 1069  elected officer as provided in s. 121.053, who has been retired
 1070  under any state-administered retirement program, the employer
 1071  shall pay retirement contributions in an amount equal to the
 1072  unfunded actuarial liability portion of the employer
 1073  contribution which would be required for regular members of the
 1074  Florida Retirement System. Effective July 1, 1991, contributions
 1075  shall be made as provided in s. 121.122 for retirees with
 1076  renewed membership or subsection (13) with respect to DROP
 1077  participants.
 1078         8. Any person who has previously retired and who is holding
 1079  an elective public office or an appointment to an elective
 1080  public office eligible for the Elected Officers’ Class on or
 1081  after July 1, 1990, shall be enrolled in the Florida Retirement
 1082  System as provided in s. 121.053(1)(b) or, if holding an
 1083  elective public office that does not qualify for the Elected
 1084  Officers’ Class on or after July 1, 1991, shall be enrolled in
 1085  the Florida Retirement System as provided in s. 121.122, and
 1086  shall continue to receive retirement benefits as well as
 1087  compensation for the elected officer’s service for as long as he
 1088  or she remains in elective office. However, any retired member
 1089  who served in an elective office prior to July 1, 1990,
 1090  suspended his or her retirement benefit, and had his or her
 1091  Florida Retirement System membership reinstated shall, upon
 1092  retirement from such office, have his or her retirement benefit
 1093  recalculated to include the additional service and compensation
 1094  earned.
 1095         9. Any person who is holding an elective public office
 1096  which is covered by the Florida Retirement System and who is
 1097  concurrently employed in nonelected covered employment may elect
 1098  to retire while continuing employment in the elective public
 1099  office, provided that he or she shall be required to terminate
 1100  his or her nonelected covered employment. Any person who
 1101  exercises this election shall receive his or her retirement
 1102  benefits in addition to the compensation of the elective office
 1103  without regard to the time limitations otherwise provided in
 1104  this subsection. No person who seeks to exercise the provisions
 1105  of this subparagraph, as the same existed prior to May 3, 1984,
 1106  shall be deemed to be retired under those provisions, unless
 1107  such person is eligible to retire under the provisions of this
 1108  subparagraph, as amended by chapter 84-11, Laws of Florida.
 1109         10. The limitations of this paragraph apply to reemployment
 1110  in any capacity with an “employer” as defined in s. 121.021(10),
 1111  irrespective of the category of funds from which the person is
 1112  compensated.
 1113         11. An employing agency may reemploy a retired member as a
 1114  firefighter or paramedic after the retired member has been
 1115  retired for 1 calendar month, in accordance with s. 121.021(39).
 1116  Any retired member who is reemployed within 1 calendar month
 1117  after retirement shall void his or her application for
 1118  retirement benefits. The employing agency reemploying such
 1119  firefighter or paramedic is subject to the retired contribution
 1120  required in subparagraph 8. Reemployment of a retired
 1121  firefighter or paramedic is limited to no more than 780 hours
 1122  during the first 12 months of his or her retirement. Any retired
 1123  member reemployed for more than 780 hours during the first 12
 1124  months of retirement shall give timely notice in writing to the
 1125  employer and to the division of the date he or she will exceed
 1126  the limitation. The division shall suspend his or her retirement
 1127  benefits for the remainder of the first 12 months of retirement.
 1128  Any person employed in violation of this subparagraph and any
 1129  employing agency which knowingly employs or appoints such person
 1130  without notifying the Division of Retirement to suspend
 1131  retirement benefits shall be jointly and severally liable for
 1132  reimbursement to the Retirement System Trust Fund of any
 1133  benefits paid during the reemployment limitation period. To
 1134  avoid liability, such employing agency shall have a written
 1135  statement from the retiree that he or she is not retired from a
 1136  state-administered retirement system. Any retirement benefits
 1137  received by a retired member while reemployed in excess of 780
 1138  hours during the first 12 months of retirement shall be repaid
 1139  to the Retirement System Trust Fund, and retirement benefits
 1140  shall remain suspended until repayment is made. Benefits
 1141  suspended beyond the end of the retired member’s first 12 months
 1142  of retirement shall apply toward repayment of benefits received
 1143  in violation of the 780-hour reemployment limitation.
 1144         (c) The provisions of this subsection apply to retirees, as
 1145  defined in s. 121.4501(2)(j), of the Public Employee Optional
 1146  Retirement Program created in part II, subject to the following
 1147  conditions:
 1148         1. Such retirees may not be reemployed with an employer
 1149  participating in the Florida Retirement System as provided in
 1150  paragraph (b) until such person has been retired for 3 calendar
 1151  months, unless the participant has reached the normal retirement
 1152  requirements of the defined benefit plan as provided in s.
 1153  121.021(29).
 1154         2. Such retiree employed in violation of this subsection
 1155  and any employing agency that knowingly employs or appoints such
 1156  person shall be jointly and severally liable for reimbursement
 1157  of any benefits paid to the retirement trust fund from which the
 1158  benefits were paid, including the Retirement System Trust Fund
 1159  and the Public Employee Optional Retirement Program Trust Fund,
 1160  as appropriate. To avoid liability, such employing agency must
 1161  have a written statement from the retiree that he or she is not
 1162  retired from a state-administered retirement system.
 1163         (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
 1164  subject to the provisions of this section, the Deferred
 1165  Retirement Option Program, hereinafter referred to as the DROP,
 1166  is a program under which an eligible member of the Florida
 1167  Retirement System may elect to participate, deferring receipt of
 1168  retirement benefits while continuing employment with his or her
 1169  Florida Retirement System employer. The deferred monthly
 1170  benefits shall accrue in the Florida Retirement System Trust
 1171  Fund on behalf of the participant, plus interest compounded
 1172  monthly, for the specified period of the DROP participation, as
 1173  provided in paragraph (c). Upon termination of employment, the
 1174  participant shall receive the total DROP benefits and begin to
 1175  receive the previously determined normal retirement benefits.
 1176  Participation in the DROP does not guarantee employment for the
 1177  specified period of DROP. Participation in the DROP by an
 1178  eligible member beyond the initial 60-month period as authorized
 1179  in this subsection shall be on an annual contractual basis for
 1180  all participants.
 1181         (a) Eligibility of member to participate in the DROP.—All
 1182  active Florida Retirement System members in a regularly
 1183  established position, and all active members of either the
 1184  Teachers’ Retirement System established in chapter 238 or the
 1185  State and County Officers’ and Employees’ Retirement System
 1186  established in chapter 122, which systems are consolidated
 1187  within the Florida Retirement System under s. 121.011, are
 1188  eligible to elect participation in the DROP if provided that:
 1189         1. The member is not a renewed member of the Florida
 1190  Retirement System under s. 121.122, or a member of the State
 1191  Community College System Optional Retirement Program under s.
 1192  121.051, the Senior Management Service Optional Annuity Program
 1193  under s. 121.055, or the optional retirement program for the
 1194  State University System under s. 121.35.
 1195         2. Except as provided in subparagraph 6., election to
 1196  participate is made within 12 months immediately following the
 1197  date on which the member first reaches normal retirement date,
 1198  or, for a member who reaches normal retirement date based on
 1199  service before he or she reaches age 62, or age 55 for Special
 1200  Risk Class members, election to participate may be deferred to
 1201  the 12 months immediately following the date the member attains
 1202  57, or age 52 for Special Risk Class members. Except as provided
 1203  in subparagraph 6., a member who delays DROP participation
 1204  during the 12-month period immediately following his or her
 1205  maximum DROP deferral date, loses a month of DROP participation
 1206  for each month delayed. For a member who first reached normal
 1207  retirement date or the deferred eligibility date described above
 1208  prior to the effective date of this section, election to
 1209  participate shall be made within 12 months after the effective
 1210  date of this section. A member who fails to make an election
 1211  within the such 12-month limitation period forfeits shall
 1212  forfeit all rights to participate in the DROP. The member must
 1213  shall advise his or her employer and the division in writing of
 1214  the date on which the DROP begins shall begin. The Such
 1215  beginning date may be after subsequent to the 12-month election
 1216  period, but must be within the original 60-month participation
 1217  or, with respect to members who are instructional personnel
 1218  employed by the Florida School for the Deaf and the Blind and
 1219  who have received authorization by the Board of Trustees of the
 1220  Florida School for the Deaf and the Blind to participate in the
 1221  DROP beyond 60 months, or who are instructional personnel as
 1222  defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
 1223  received authorization by the district school superintendent to
 1224  participate in the DROP beyond 60 months, the 96-month
 1225  limitation period as provided in subparagraph (b)1. When
 1226  establishing eligibility of the member to participate in the
 1227  DROP for the 60-month or, with respect to members who are
 1228  instructional personnel employed by the Florida School for the
 1229  Deaf and the Blind and who have received authorization by the
 1230  Board of Trustees of the Florida School for the Deaf and the
 1231  Blind to participate in the DROP beyond 60 months, or who are
 1232  instructional personnel as defined in s. 1012.01(2)(a)-(d) in
 1233  grades K-12 and who have received authorization by the district
 1234  school superintendent to participate in the DROP beyond 60
 1235  months, the 96-month maximum participation period, the member
 1236  may elect to include or exclude any optional service credit
 1237  purchased by the member from the total service used to establish
 1238  the normal retirement date. A member who has with dual normal
 1239  retirement dates is shall be eligible to elect to participate in
 1240  DROP within 12 months after attaining normal retirement date in
 1241  either class.
 1242         3. The employer of a member electing to participate in the
 1243  DROP, or employers if dually employed, shall acknowledge in
 1244  writing to the division the date the member’s participation in
 1245  the DROP begins and the date the member’s employment and DROP
 1246  participation will terminate.
 1247         4. Simultaneous employment of a participant by additional
 1248  Florida Retirement System employers subsequent to the
 1249  commencement of participation in the DROP is shall be
 1250  permissible if the provided such employers acknowledge in
 1251  writing a DROP termination date no later than the participant’s
 1252  existing termination date or the maximum participation 60-month
 1253  limitation period as provided in subparagraph (b)1.
 1254         5. A DROP participant may change employers while
 1255  participating in the DROP, subject to the following:
 1256         a. A change of employment must take place without a break
 1257  in service so that the member receives salary for each month of
 1258  continuous DROP participation. If a member receives no salary
 1259  during a month, DROP participation ceases shall cease unless the
 1260  employer verifies a continuation of the employment relationship
 1261  for such participant pursuant to s. 121.021(39)(b).
 1262         b. Such participant and new employer shall notify the
 1263  division of the identity of the new employer on forms required
 1264  by the division as to the identity of the new employer.
 1265         c. The new employer shall acknowledge, in writing, the
 1266  participant’s DROP termination date, which may be extended but
 1267  not beyond the maximum participation original 60-month or, with
 1268  respect to members who are instructional personnel employed by
 1269  the Florida School for the Deaf and the Blind and who have
 1270  received authorization by the Board of Trustees of the Florida
 1271  School for the Deaf and the Blind to participate in the DROP
 1272  beyond 60 months, or who are instructional personnel as defined
 1273  in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
 1274  authorization by the district school superintendent to
 1275  participate in the DROP beyond 60 months, the 96-month period
 1276  provided in subparagraph (b)1., shall acknowledge liability for
 1277  any additional retirement contributions and interest required if
 1278  the participant fails to timely terminate employment, and is
 1279  shall be subject to the adjustment required in sub-subparagraph
 1280  (c)5.d.
 1281         6. Effective July 1, 2001, for instructional personnel as
 1282  defined in s. 1012.01(2), election to participate in the DROP is
 1283  shall be made at any time following the date on which the member
 1284  first reaches normal retirement date. The member shall advise
 1285  his or her employer and the division in writing of the date on
 1286  which DROP begins the Deferred Retirement Option Program shall
 1287  begin. When establishing eligibility of the member to
 1288  participate in the DROP for the 60-month or, with respect to
 1289  members who are instructional personnel employed by the Florida
 1290  School for the Deaf and the Blind and who have received
 1291  authorization by the Board of Trustees of the Florida School for
 1292  the Deaf and the Blind to participate in the DROP beyond 60
 1293  months, or who are instructional personnel as defined in s.
 1294  1012.01(2)(a)-(d) in grades K-12 and who have received
 1295  authorization by the district school superintendent to
 1296  participate in the DROP beyond 60 months, the 96-month maximum
 1297  participation period, as provided in subparagraph (b)1., the
 1298  member may elect to include or exclude any optional service
 1299  credit purchased by the member from the total service used to
 1300  establish the normal retirement date. A member who has with dual
 1301  normal retirement dates is shall be eligible to elect to
 1302  participate in either class.
 1303         (b) Participation in the DROP.—
 1304         1. An eligible member may elect to participate in the DROP
 1305  for a period not to exceed a maximum of 60 calendar months. or,
 1306  with respect to However, members who are instructional personnel
 1307  employed by the Florida School for the Deaf and the Blind and
 1308  authorized who have received authorization by the Board of
 1309  Trustees of the Florida School for the Deaf and the Blind to
 1310  participate in the DROP beyond 60 months, or who are
 1311  instructional personnel as defined in s. 1012.01(2)(a)-(d) in
 1312  grades K-12 and authorized who have received authorization by
 1313  the district school superintendent to participate in the DROP
 1314  beyond 60 calendar months, or who are instructional personnel as
 1315  defined in s. 1012.01(2) employed by a developmental research
 1316  school and authorized by the school’s director, or if the school
 1317  has no director, by the school’s principal, may participate in
 1318  DROP for up to 36 calendar months beyond the 60-month period. 96
 1319  calendar months immediately following the date on which the
 1320  member first reaches his or her normal retirement date or the
 1321  date to which he or she is eligible to defer his or her election
 1322  to participate as provided in subparagraph (a)2. However, a
 1323  member who has reached normal retirement date prior to the
 1324  effective date of the DROP shall be eligible to participate in
 1325  the DROP for a period of time not to exceed 60 calendar months
 1326  or, with respect to members who are instructional personnel
 1327  employed by the Florida School for the Deaf and the Blind and
 1328  who have received authorization by the Board of Trustees of the
 1329  Florida School for the Deaf and the Blind to participate in the
 1330  DROP beyond 60 months, or who are instructional personnel as
 1331  defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
 1332  received authorization by the district school superintendent to
 1333  participate in the DROP beyond 60 calendar months, 96 calendar
 1334  months immediately following the effective date of the DROP,
 1335  except a member of the Special Risk Class who has reached normal
 1336  retirement date prior to the effective date of the DROP and
 1337  whose total accrued value exceeds 75 percent of average final
 1338  compensation as of his or her effective date of retirement shall
 1339  be eligible to participate in the DROP for no more than 36
 1340  calendar months immediately following the effective date of the
 1341  DROP.
 1342         2. Upon deciding to participate in the DROP, the member
 1343  shall submit, on forms required by the division:
 1344         a. A written election to participate in the DROP;
 1345         b. Selection of the DROP participation and termination
 1346  dates, which satisfy the limitations stated in paragraph (a) and
 1347  subparagraph 1. The Such termination date must shall be in a
 1348  binding letter of resignation to with the employer, establishing
 1349  a deferred termination date. The member may change the
 1350  termination date within the limitations of subparagraph 1., but
 1351  only with the written approval of the his or her employer;
 1352         c. A properly completed DROP application for service
 1353  retirement as provided in this section; and
 1354         d. Any other information required by the division.
 1355         3. The DROP participant is shall be a retiree under the
 1356  Florida Retirement System for all purposes, except for paragraph
 1357  (5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
 1358  and 121.122. DROP participation is final and cannot be cancelled
 1359  by the participant after the first payment is credited during
 1360  the DROP participation period. However, participation in the
 1361  DROP does not alter the participant’s employment status, and the
 1362  member is such employee shall not be deemed retired from
 1363  employment until his or her deferred resignation is effective
 1364  and termination occurs as provided in s. 121.021(39).
 1365         4. Elected officers are shall be eligible to participate in
 1366  the DROP subject to the following:
 1367         a. An elected officer who reaches normal retirement date
 1368  during a term of office may defer the election to participate in
 1369  the DROP until the next succeeding term in that office. An Such
 1370  elected officer who exercises this option may participate in the
 1371  DROP for up to 60 calendar months or a period of no longer than
 1372  the such succeeding term of office, whichever is less.
 1373         b. An elected or a nonelected participant may run for a
 1374  term of office while participating in DROP and, if elected,
 1375  extend the DROP termination date accordingly;, except, however,
 1376  if the such additional term of office exceeds the 60-month
 1377  limitation established in subparagraph 1., and the officer does
 1378  not resign from office within such 60-month limitation, the
 1379  retirement and the participant’s DROP is shall be null and void
 1380  as provided in sub-subparagraph (c)5.d.
 1381         c. For DROP participation ending:
 1382         (I)Before January 1, 2010, an elected officer who is
 1383  dually employed and elects to participate in DROP must shall be
 1384  required to satisfy the definition of termination within the
 1385  original 60-month period or maximum participation or, with
 1386  respect to members who are instructional personnel employed by
 1387  the Florida School for the Deaf and the Blind and who have
 1388  received authorization by the Board of Trustees of the Florida
 1389  School for the Deaf and the Blind to participate in the DROP
 1390  beyond 60 months, or who are instructional personnel as defined
 1391  in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
 1392  authorization by the district school superintendent to
 1393  participate in the DROP beyond 60 months, the 96-month
 1394  limitation period as provided in subparagraph 1. for the
 1395  nonelected position and may continue employment as an elected
 1396  officer as provided in s. 121.053. The elected officer shall
 1397  will be enrolled as a renewed member in the Elected Officers’
 1398  Class or the Regular Class, as provided in ss. 121.053 and
 1399  121.122, on the first day of the month after termination of
 1400  employment in the nonelected position and termination of DROP.
 1401  Distribution of the DROP benefits shall be made as provided in
 1402  paragraph (c).
 1403         (II)On or after January 1, 2010, an elected officer who is
 1404  dually employed and elects to participate in DROP must satisfy
 1405  the definition of termination in s. 121.021(39) for the
 1406  nonelected position within the original 60-month period or
 1407  maximum period as provided in subparagraph 1. If the elected
 1408  officer does not terminate from elective office within the
 1409  original 60-month period or maximum period, he or she may defer
 1410  termination as provided in s. 121.053 but is subject to
 1411  termination in s. 121.021(39) to finalize retirement.
 1412         (c) Benefits payable under the DROP.—
 1413         1. Effective on with the date of DROP participation, the
 1414  member’s initial normal monthly benefit, including creditable
 1415  service, optional form of payment, and average final
 1416  compensation, and the effective date of retirement are shall be
 1417  fixed. The beneficiary established under the Florida Retirement
 1418  System is shall be the beneficiary eligible to receive any DROP
 1419  benefits payable if the DROP participant dies before completing
 1420  prior to the completion of the period of DROP participation. If
 1421  In the event a joint annuitant predeceases the member, the
 1422  member may name a beneficiary to receive accumulated DROP
 1423  benefits payable. The Such retirement benefit, the annual cost
 1424  of living adjustments provided in s. 121.101, and interest shall
 1425  accrue monthly in the Florida Retirement System Trust Fund. The
 1426  Such interest accrues shall accrue at an effective annual rate
 1427  of 6.5 percent compounded monthly, on the prior month’s
 1428  accumulated ending balance, up to the month of termination or
 1429  death.
 1430         2. Each employee who elects to participate in the DROP may
 1431  shall be allowed to elect to receive a lump-sum payment for
 1432  accrued annual leave earned in accordance with agency policy
 1433  upon beginning participation in the DROP. The Such accumulated
 1434  leave payment certified to the division upon commencement of
 1435  DROP must shall be included in the calculation of the member’s
 1436  average final compensation. The employee electing the such lump
 1437  sum payment is upon beginning participation in DROP will not be
 1438  eligible to receive a second lump-sum payment upon termination,
 1439  except to the extent the employee has earned additional annual
 1440  leave which combined with the original payment does not exceed
 1441  the maximum lump-sum payment allowed by the employing agency’s
 1442  policy or rules. An Such early lump-sum payment shall be based
 1443  on the hourly wage of the employee at the time he or she begins
 1444  participation in the DROP. If the member elects to wait and
 1445  receive a such lump-sum payment upon termination of DROP and
 1446  termination of employment with the employer, any accumulated
 1447  leave payment made at that time may not cannot be included in
 1448  the member’s retirement benefit, which was determined and fixed
 1449  by law when the employee elected to participate in the DROP.
 1450         3. The effective date of DROP participation and the
 1451  effective date of retirement of a DROP participant is shall be
 1452  the first day of the month selected by the member to begin
 1453  participation in the DROP, if provided such date is properly
 1454  established, with the written confirmation of the employer, and
 1455  the approval of the division, on forms required by the division.
 1456         4. Normal retirement benefits and any interest thereon
 1457  shall continue to accrue in the DROP until the established
 1458  termination date of the DROP, or until the participant
 1459  terminates employment or dies before prior to such date.
 1460  Although individual DROP accounts may shall not be established,
 1461  a separate accounting of each participant’s accrued benefits
 1462  under the DROP shall be calculated and provided to participants.
 1463         5. At the conclusion of the participant’s DROP, the
 1464  division shall distribute the participant’s total accumulated
 1465  DROP benefits, subject to the following provisions:
 1466         a. The division shall receive verification by the
 1467  participant’s employer or employers that the such participant
 1468  has terminated employment as provided in s. 121.021(39)(b).
 1469         b. The terminated DROP participant or, if deceased, the
 1470  such participant’s named beneficiary, shall elect on forms
 1471  provided by the division to receive payment of the DROP benefits
 1472  in accordance with one of the options listed below. If For a
 1473  participant or beneficiary who fails to elect a method of
 1474  payment within 60 days after of termination of the DROP, the
 1475  division shall will pay a lump sum as provided in sub-sub
 1476  subparagraph (I).
 1477         (I) Lump sum.—All accrued DROP benefits, plus interest,
 1478  less withholding taxes remitted to the Internal Revenue Service,
 1479  shall be paid to the DROP participant or surviving beneficiary.
 1480         (II) Direct rollover.—All accrued DROP benefits, plus
 1481  interest, shall be paid from the DROP directly to the custodian
 1482  of an eligible retirement plan as defined in s. 402(c)(8)(B) of
 1483  the Internal Revenue Code. However, in the case of an eligible
 1484  rollover distribution to the surviving spouse of a deceased
 1485  participant, an eligible retirement plan is an individual
 1486  retirement account or an individual retirement annuity as
 1487  described in s. 402(c)(9) of the Internal Revenue Code.
 1488         (III) Partial lump sum.—A portion of the accrued DROP
 1489  benefits shall be paid to the DROP participant or surviving
 1490  spouse, less withholding taxes remitted to the Internal Revenue
 1491  Service, and the remaining DROP benefits must shall be
 1492  transferred directly to the custodian of an eligible retirement
 1493  plan as defined in s. 402(c)(8)(B) of the Internal Revenue Code.
 1494  However, in the case of an eligible rollover distribution to the
 1495  surviving spouse of a deceased participant, an eligible
 1496  retirement plan is an individual retirement account or an
 1497  individual retirement annuity as described in s. 402(c)(9) of
 1498  the Internal Revenue Code. The proportions must shall be
 1499  specified by the DROP participant or surviving beneficiary.
 1500         c. The form of payment selected by the DROP participant or
 1501  surviving beneficiary must comply complies with the minimum
 1502  distribution requirements of the Internal Revenue Code.
 1503         d. A DROP participant who fails to terminate employment as
 1504  defined in s. 121.021(39)(b) shall be deemed as not to be
 1505  retired, and the DROP election is shall be null and void.
 1506  Florida Retirement System membership shall be reestablished
 1507  retroactively to the date of the commencement of the DROP, and
 1508  each employer with whom the participant continues employment
 1509  must shall be required to pay to the Florida Retirement System
 1510  Trust Fund the difference between the DROP contributions paid in
 1511  paragraph (i) and the contributions required for the applicable
 1512  Florida Retirement System class of membership during the period
 1513  the member participated in the DROP, plus 6.5 percent interest
 1514  compounded annually.
 1515         6.The retirement benefits of a retiree who participated in
 1516  DROP and meets the definition of termination in s.
 1517  121.021(39)(b), but is in violation of the reemployment
 1518  provisions provided in subsection (9), must be suspended during
 1519  the months in which the reemployed retiree is in violation. A
 1520  retiree reemployed in violation of this subparagraph and the
 1521  agency that employs or appoints such member without notifying
 1522  the Division of Retirement to suspend retirement benefits are
 1523  jointly and severally liable for any benefits paid during the
 1524  reemployment limitation period. To avoid liability, the
 1525  employing agency must have a written statement from the retiree
 1526  that he or she is not retired from a state-administered
 1527  retirement system.
 1528         a.For DROP participation ending before January 1, 2010,
 1529  any retirement benefits received by a retiree while employed in
 1530  violation of the reemployment limitations during the 12-month
 1531  limitation period must be repaid to the Florida Retirement
 1532  System Trust Fund, and his or her retirement benefits shall
 1533  remain suspended until payment is made. Benefits suspended
 1534  beyond the end of the retiree’s 12-calendar month limitation
 1535  period apply toward repayment of benefits received in violation
 1536  of the reemployment limitations.
 1537         b.For DROP participation ending on or after January 1,
 1538  2010, any retirement benefits received by a retiree while
 1539  employed in violation of the reemployment limitations must be
 1540  repaid to the Florida Retirement System Trust Fund, and his or
 1541  her retirement benefits remain suspended until payment is made.
 1542  Benefits suspended after the retiree has terminated employment
 1543  apply toward repayment of benefits received in violation of the
 1544  reemployment limitations.
 1545         7.6. The accrued benefits of any DROP participant, and any
 1546  contributions accumulated under the such program, are shall not
 1547  be subject to assignment, execution, attachment, or to any legal
 1548  process whatsoever, except for qualified domestic relations
 1549  orders by a court of competent jurisdiction, income deduction
 1550  orders as provided in s. 61.1301, and federal income tax levies.
 1551         8.7. DROP participants are shall not be eligible for
 1552  disability retirement benefits as provided in subsection (4).
 1553         (d) Death benefits under the DROP.—
 1554         1. Upon the death of a DROP participant, the named
 1555  beneficiary is shall be entitled to apply for and receive the
 1556  accrued benefits in the DROP as provided in sub-subparagraph
 1557  (c)5.b.
 1558         2. The normal retirement benefit accrued to the DROP during
 1559  the month of a participant’s death is shall be the final monthly
 1560  benefit credited for such DROP participant.
 1561         3. Eligibility to participate in the DROP terminates upon
 1562  death of the participant. If the participant dies on or after
 1563  the effective date of enrollment in the DROP, but before prior
 1564  to the first monthly benefit is being credited to the DROP,
 1565  Florida Retirement System benefits are shall be paid in
 1566  accordance with subparagraph (7)(c)1. or subparagraph 2.
 1567         4. A DROP participant’s participants’ survivors are shall
 1568  not be eligible to receive Florida Retirement System death
 1569  benefits as provided in paragraph (7)(d).
 1570         (e) Cost-of-living adjustment.—On each July 1, the
 1571  participant’s participants’ normal retirement benefit shall be
 1572  increased as provided in s. 121.101.
 1573         (f) Retiree health insurance subsidy.—DROP participants are
 1574  not eligible to apply for the retiree health insurance subsidy
 1575  payments as provided in s. 112.363 until such participants have
 1576  terminated employment and participation in the DROP.
 1577         (g) Renewed membership.—
 1578         1. DROP participants who end DROP participation before
 1579  January 1, 2010, are shall not be eligible for renewed
 1580  membership in the Florida Retirement System under ss. 121.053
 1581  and 121.122 until termination of employment is effectuated as
 1582  provided in s. 121.021(39)(b).
 1583         2.DROP participants who end DROP participation on or after
 1584  January 1, 2010, are not eligible for renewed membership in a
 1585  state-administered retirement system.
 1586         (h) Employment limitation after DROP participation.—Upon
 1587  satisfying the definition of termination of employment as
 1588  provided in s. 121.021(39)(b), DROP participants are shall be
 1589  subject to the same such reemployment limitations as other
 1590  retirees. Reemployment restrictions applicable to retirees as
 1591  provided in subsection (9) do shall not apply to DROP
 1592  participants until their employment and participation in the
 1593  DROP are terminated.
 1594         (i) Contributions.—
 1595         1. All employers paying the salary of a DROP participant
 1596  filling a regularly established position shall contribute 8.0
 1597  percent of such participant’s gross compensation for the period
 1598  of July 1, 2002, through June 30, 2003, and the 11.56 percent of
 1599  such compensation required by s. 121.71 thereafter, which shall
 1600  constitute the entire employer DROP contribution with respect to
 1601  such participant. Such contributions, payable to the Florida
 1602  Retirement System Trust Fund in the same manner as required in
 1603  s. 121.071, must shall be made as appropriate for each pay
 1604  period and are in addition to contributions required for social
 1605  security and the Retiree Health Insurance Subsidy Trust Fund.
 1606  Such employer, social security, and health insurance subsidy
 1607  contributions are not included in the DROP.
 1608         2. The employer shall, in addition to subparagraph 1., also
 1609  withhold one-half of the entire social security contribution
 1610  required for the participant. Contributions for social security
 1611  by each participant and each employer, in the amount required
 1612  for social security coverage as now or hereafter provided by the
 1613  federal Social Security Act, are shall be in addition to
 1614  contributions specified in subparagraph 1.
 1615         3. All employers paying the salary of a DROP participant
 1616  filling a regularly established position shall contribute the
 1617  percent of such participant’s gross compensation required in s.
 1618  121.071(4), which shall constitute the employer’s health
 1619  insurance subsidy contribution with respect to such participant.
 1620  Such contributions must shall be deposited by the administrator
 1621  in the Retiree Health Insurance Subsidy Trust Fund.
 1622         (j) Forfeiture of retirement benefits.Nothing in This
 1623  section does not shall be construed to remove DROP participants
 1624  from the scope of s. 8(d), Art. II of the State Constitution, s.
 1625  112.3173, and paragraph (5)(f). DROP participants who commit a
 1626  specified felony offense while employed are will be subject to
 1627  forfeiture of all retirement benefits, including DROP benefits,
 1628  pursuant to those provisions of law.
 1629         (k) Administration of program.—The division shall adopt
 1630  make such rules as are necessary for the effective and efficient
 1631  administration of this subsection. The division is shall not be
 1632  required to advise members of the federal tax consequences of an
 1633  election related to the DROP but may advise members to seek
 1634  independent advice.
 1635         Section 6. Section 121.122, Florida Statutes, is amended to
 1636  read:
 1637         121.122 Renewed membership in system.—
 1638         (1)A retiree of a state-administered retirement system who
 1639  is initially reemployed on or after January 1, 2010, is not
 1640  eligible for renewed membership.
 1641         (2) Except as provided in s. 121.053, effective July 1,
 1642  1991, through December 31, 2009, any retiree of a state
 1643  administered retirement system who is initially reemployed
 1644  employed in a regularly established position with a covered
 1645  employer shall be enrolled as a compulsory member of the Regular
 1646  Class of the Florida Retirement System or, effective July 1,
 1647  1997, through December 31, 2009, any retiree of a state
 1648  administered retirement system who is initially reemployed
 1649  employed in a position included in the Senior Management Service
 1650  Class shall be enrolled as a compulsory member of the Senior
 1651  Management Service Class of the Florida Retirement System as
 1652  provided in s. 121.055, and is shall be entitled to receive an
 1653  additional retirement benefit, subject to the following
 1654  conditions:
 1655         (1)(a) Such member must shall resatisfy the age and service
 1656  requirements as provided in this chapter for initial membership
 1657  under the system, unless the such member elects to participate
 1658  in the Senior Management Service Optional Annuity Program in
 1659  lieu of the Senior Management Service Class, as provided in s.
 1660  121.055(6).
 1661         (b) Such member is shall not be entitled to disability
 1662  benefits as provided in s. 121.091(4).
 1663         (c) Such member must meet the reemployment after retirement
 1664  limitations as provided in s. 121.091(9), as applicable.
 1665         (3)(2) Upon reemployment of a retiree renewed membership,
 1666  the employer of such member shall pay the applicable employer
 1667  contributions as required by ss. 121.71, 121.74, 121.76, and
 1668  112.363 ss. 121.055(3) and 121.071(1)(a) and (4).
 1669         (4)(3)The retiree of a state-administered retirement
 1670  system who is initially reemployed before January 1, 2010, is
 1671  Such member shall be entitled to purchase additional retirement
 1672  credit in the Regular Class or the Senior Management Service
 1673  Class, as applicable, for any postretirement service performed
 1674  in a regularly established position as follows:
 1675         (a) For regular class service before prior to July 1, 1991,
 1676  by paying the Regular Class applicable employee and employer
 1677  contributions for the period being claimed, plus 4 percent
 1678  interest compounded annually from first year of service claimed
 1679  until July 1, 1975, and 6.5 percent interest compounded
 1680  thereafter, until full payment is made to the Florida Retirement
 1681  System Trust Fund; or
 1682         (b) For Senior Management Service Class before prior to
 1683  June 1, 1997, as provided in s. 121.055(1)(j).
 1684  
 1685  The contribution for postretirement service between July 1,
 1686  1985, and July 1, 1991, for which the reemployed retiree
 1687  contribution was paid, is shall be the difference between the
 1688  such contribution and the total applicable contribution for the
 1689  period being claimed, plus interest. The employer of such member
 1690  may pay the applicable employer contribution in lieu of the
 1691  member. If a member does not wish to claim credit for all of the
 1692  postretirement service for which he or she is eligible, the
 1693  service the member claims must be the most recent service.
 1694         (5)(4)No Creditable service for which credit was received,
 1695  or which remained unclaimed, at retirement may not be claimed or
 1696  applied toward service credit earned following renewed
 1697  membership. However, for retirees initially reemployed before
 1698  January 1, 2010, service earned as an elected officer with
 1699  renewed membership in the Elected Officers’ Class may be used in
 1700  conjunction with creditable service earned under this section,
 1701  if provided the applicable vesting requirements and other
 1702  existing statutory conditions required by this chapter are met.
 1703         (6)(5) Notwithstanding any other limitations provided in
 1704  this section, a participant of the State University System
 1705  Optional Retirement Program, the State Community College
 1706  Optional Retirement Program, or the Senior Management Service
 1707  Optional Annuity Program who terminated employment and commenced
 1708  receiving a distribution an annuity under the provisions of the
 1709  optional program, who initially renews membership before January
 1710  1, 2010, in the Regular Class as required by this section upon
 1711  reemployment after retirement, and who had previously earned
 1712  creditable Florida Retirement System service that was not
 1713  included in any retirement benefit may include such previous
 1714  service toward vesting and service credit in the second career
 1715  benefit provided under renewed membership.
 1716         (7)(6)A Any renewed member who is not receiving the
 1717  maximum health insurance subsidy provided in s. 112.363 is shall
 1718  be entitled to earn additional credit toward the maximum health
 1719  insurance subsidy. Any additional subsidy due because of such
 1720  additional credit may shall be received only at the time of
 1721  payment of the second career retirement benefit. In no case
 1722  shall The total health insurance subsidy received by a retiree
 1723  receiving benefits from initial and renewed membership may not
 1724  exceed the maximum allowed in s. 112.363.
 1725         Section 7. Paragraph (h) of subsection (3) and paragraphs
 1726  (a) and (e) of subsection (5) of section 121.35, Florida
 1727  Statutes, are amended, and paragraph (g) is added to subsection
 1728  (5) of that section, to read:
 1729         121.35 Optional retirement program for the State University
 1730  System.—
 1731         (3) ELECTION OF OPTIONAL PROGRAM.—
 1732         (h) A participant in the optional retirement program may
 1733  not participate in more than one state-administered retirement
 1734  system, plan, or class simultaneously. Except as provided in s.
 1735  121.052(6)(d), a participant who is or becomes dually employed
 1736  in two or more positions covered by the Florida Retirement
 1737  System, one of which is eligible for the optional program and
 1738  one of which is not, may remain a member of the optional program
 1739  and contributions shall be paid as required only on the salary
 1740  earned in the position eligible for the optional program during
 1741  the such period of dual employment; or, within 90 days after
 1742  becoming dually employed, he or she may elect membership in the
 1743  Regular Class of the Florida Retirement System in lieu of the
 1744  optional program and contributions shall be paid as required on
 1745  the total salary received for all employment. At retirement, the
 1746  average final compensation used to calculate any benefits for
 1747  which the member becomes eligible under the Florida Retirement
 1748  System must shall be based on all salary reported for both
 1749  positions during such period of dual employment. If the When
 1750  such member ceases to be dually employed, he or she may, within
 1751  90 days, elect to remain in the Florida Retirement System class
 1752  for which he or she is eligible or to again become a participant
 1753  in the optional retirement program. Failure to elect membership
 1754  in the optional program within 90 days shall result in
 1755  compulsory membership in the Florida Retirement System, except
 1756  that a member filling a faculty position at under a college with
 1757  a faculty practice plan at the University of Florida, at or the
 1758  Medical Center at the University of South Florida, or other
 1759  state university shall again participate in the optional
 1760  retirement program as required in s. 121.051(1)(a).
 1761         (5) BENEFITS.—
 1762         (a) Benefits are shall be payable under the optional
 1763  retirement program only to vested participants in the program,
 1764  or their beneficiaries as designated by the participant in the
 1765  contract with a provider company, and such benefits shall be
 1766  paid only by the designated company in accordance with s. 403(b)
 1767  of the Internal Revenue Code and in accordance with the terms of
 1768  the annuity contract or contracts applicable to the participant.
 1769  Benefits shall accrue in individual accounts that are
 1770  participant-directed, portable, and funded by employer
 1771  contributions and the earnings thereon. The participant must be
 1772  terminated from all employment with all Florida Retirement
 1773  System employers, as provided in s. 121.021(39), to begin
 1774  receiving the employer-funded benefit. Benefits funded by
 1775  employer contributions are shall be payable in accordance with
 1776  the following terms and conditions:
 1777         1. Benefits shall be paid payable only to a participant, to
 1778  his or her beneficiaries, or to his or her estate, as designated
 1779  by the participant.
 1780         2. Benefits shall be paid by the provider company or
 1781  companies in accordance with the law, the provisions of the
 1782  contract, and any applicable department board rule or policy.
 1783         3. In the event of a participant’s death, moneys
 1784  accumulated by, or on behalf of, the participant, less
 1785  withholding taxes remitted to the Internal Revenue Service, if
 1786  any, shall be distributed to the participant’s designated
 1787  beneficiary or beneficiaries, or to the participant’s estate, as
 1788  if the participant retired on the date of death, as provided in
 1789  paragraph (c). No other death benefits are shall be available to
 1790  for survivors of participants under the optional retirement
 1791  program except for such benefits, or coverage for such benefits,
 1792  as are separately afforded by the employer, at the employer’s
 1793  discretion.
 1794         (e) A participant who chooses to receive his or her
 1795  benefits upon termination of employment as defined in s.
 1796  121.021(39) must shall have responsibility to notify the
 1797  provider company of the date on which he or she wishes benefits
 1798  funded by employer contributions to begin. Benefits may be
 1799  deferred until such time as the participant chooses to make such
 1800  application.
 1801         (g)For purposes of this section, the term “retiree” means
 1802  a former participant of the optional retirement program who has
 1803  terminated employment and has taken a distribution, including a
 1804  rollover or trustee-to-trustee transfer, as provided in this
 1805  subsection, except for a mandatory distribution of a de minimis
 1806  account authorized by the department.
 1807         Section 8. Paragraph (f) of subsection (2) of section
 1808  121.4501, Florida Statutes, is amended to read:
 1809         121.4501 Public Employee Optional Retirement Program.—
 1810         (2) DEFINITIONS.—As used in this part, the term:
 1811         (f) “Eligible employee” means an officer or employee, as
 1812  defined in s. 121.021(11), who:
 1813         1. Is a member of, or is eligible for membership in, the
 1814  Florida Retirement System, including any renewed member of the
 1815  Florida Retirement System initially reemployed before January 1,
 1816  2010; or
 1817         2. Participates in, or is eligible to participate in, the
 1818  Senior Management Service Optional Annuity Program as
 1819  established under s. 121.055(6), the State Community College
 1820  System Optional Retirement Program as established under s.
 1821  121.051(2)(c), or the State University System Optional
 1822  Retirement Program established under s. 121.35.
 1823  
 1824  The term does not include any member participating in the
 1825  Deferred Retirement Option Program established under s.
 1826  121.091(13), a retiree of a state-administered retirement system
 1827  initially reemployed on or after January 1, 2010, or a mandatory
 1828  participant of the State University System Optional Retirement
 1829  Program established under s. 121.35.
 1830         Section 9. Paragraph (b) of subsection (1) of section
 1831  121.591, Florida Statutes, is amended to read:
 1832         121.591 Benefits payable under the Public Employee Optional
 1833  Retirement Program of the Florida Retirement System.—Benefits
 1834  may not be paid under this section unless the member has
 1835  terminated employment as provided in s. 121.021(39)(a) or is
 1836  deceased and a proper application has been filed in the manner
 1837  prescribed by the state board or the department. The state board
 1838  or department, as appropriate, may cancel an application for
 1839  retirement benefits when the member or beneficiary fails to
 1840  timely provide the information and documents required by this
 1841  chapter and the rules of the state board and department. In
 1842  accordance with their respective responsibilities as provided
 1843  herein, the State Board of Administration and the Department of
 1844  Management Services shall adopt rules establishing procedures
 1845  for application for retirement benefits and for the cancellation
 1846  of such application when the required information or documents
 1847  are not received. The State Board of Administration and the
 1848  Department of Management Services, as appropriate, are
 1849  authorized to cash out a de minimis account of a participant who
 1850  has been terminated from Florida Retirement System covered
 1851  employment for a minimum of 6 calendar months. A de minimis
 1852  account is an account containing employer contributions and
 1853  accumulated earnings of not more than $5,000 made under the
 1854  provisions of this chapter. Such cash-out must either be a
 1855  complete lump-sum liquidation of the account balance, subject to
 1856  the provisions of the Internal Revenue Code, or a lump-sum
 1857  direct rollover distribution paid directly to the custodian of
 1858  an eligible retirement plan, as defined by the Internal Revenue
 1859  Code, on behalf of the participant. If any financial instrument
 1860  issued for the payment of retirement benefits under this section
 1861  is not presented for payment within 180 days after the last day
 1862  of the month in which it was originally issued, the third-party
 1863  administrator or other duly authorized agent of the State Board
 1864  of Administration shall cancel the instrument and credit the
 1865  amount of the instrument to the suspense account of the Public
 1866  Employee Optional Retirement Program Trust Fund authorized under
 1867  s. 121.4501(6). Any such amounts transferred to the suspense
 1868  account are payable upon a proper application, not to include
 1869  earnings thereon, as provided in this section, within 10 years
 1870  after the last day of the month in which the instrument was
 1871  originally issued, after which time such amounts and any
 1872  earnings thereon shall be forfeited. Any such forfeited amounts
 1873  are assets of the Public Employee Optional Retirement Program
 1874  Trust Fund and are not subject to the provisions of chapter 717.
 1875         (1) NORMAL BENEFITS.—Under the Public Employee Optional
 1876  Retirement Program:
 1877         (b) If a participant elects to receive his or her benefits
 1878  upon termination of employment as defined in s. 121.021(39), the
 1879  participant must submit a written application or an equivalent
 1880  form to the third-party administrator indicating his or her
 1881  preferred distribution date and selecting an authorized method
 1882  of distribution as provided in paragraph (c). The participant
 1883  may defer receipt of benefits until he or she chooses to make
 1884  such application, subject to federal requirements.
 1885         Section 10. Subsection (1) of section 238.183, Florida
 1886  Statutes, is amended to read:
 1887         238.183 Developmental research school and Florida School
 1888  for the Deaf and the Blind instructional personnel; reemployment
 1889  after retirement.—
 1890         (1) Notwithstanding any other law, instructional personnel,
 1891  as defined in s. 1012.01(2), employed by a developmental
 1892  research school or the Florida School for the Deaf and the Blind
 1893  are eligible for reemployment after retirement in the same
 1894  manner as classroom teachers who are employed by the district
 1895  school boards, as described in ss. 121.091(9)(b) 121.091(9)(b)3.
 1896  and 238.181(2)(c).
 1897         Section 11. Paragraph (g) of subsection (3) of section
 1898  1012.33, Florida Statutes, is amended to read:
 1899         1012.33 Contracts with instructional staff, supervisors,
 1900  and school principals.—
 1901         (3)
 1902         (g) Beginning July 1, 2001, for each employee who enters
 1903  into a written contract, pursuant to this section, in a school
 1904  district in which the employee was not employed as of June 30,
 1905  2001, or was employed as of June 30, 2001, but has since broken
 1906  employment with that district for 1 school year or more, for
 1907  purposes of pay, a district school board must recognize and
 1908  accept each year of full-time public school teaching service
 1909  earned in this state the State of Florida or outside the state
 1910  and for which the employee received a satisfactory performance
 1911  evaluation. Instructional personnel employed pursuant to s.
 1912  121.091(b) s. 121.091(9)(b)3. are exempt from the provisions of
 1913  this paragraph.
 1914         Section 12. Sections 121.093 and 121.094, Florida Statutes,
 1915  are repealed.
 1916         Section 13. The Legislature finds that a proper and
 1917  legitimate state purpose is served when employees and retirees
 1918  of the state and its political subdivisions, as well as the
 1919  dependents, survivors, and beneficiaries of such employees and
 1920  retirees, are extended the basic protections afforded by
 1921  governmental retirement systems that provide fair and adequate
 1922  benefits and that are managed, administered, and funded in an
 1923  actuarially sound manner as required by s. 14, Art. X of the
 1924  State Constitution and part VII of chapter 112, Florida
 1925  Statutes. Therefore, the Legislature determines and declares
 1926  that the amendment of s. 121.091, Florida Statutes, by this act
 1927  fulfills an important state interest.
 1928         Section 14. Effective upon this act becoming a law, the
 1929  Department of Management Services shall request an actuarial
 1930  special study to determine the employer contribution rates
 1931  required by this act. The department shall notify the Governor,
 1932  the President of the Senate, and the Speaker of the House of
 1933  Representatives of the results of the actuarial special study
 1934  within 1 week after receiving the results.
 1935         Section 15. Except as otherwise expressly provided in this
 1936  act and except for this section, which shall take effect upon
 1937  becoming a law, this act shall take effect January 1, 2010;
 1938  except that this act shall not take effect if the Department of
 1939  Management Services receives an actuarial special study stating
 1940  that the provisions of this act require an increase of 0.01
 1941  percent or more in the employer contribution rate for any
 1942  Florida Retirement System member class, subclass, or the
 1943  Deferred Retirement Option Program.
 1944  
 1945  ================= T I T L E  A M E N D M E N T ================
 1946         And the title is amended as follows:
 1947         Delete everything before the enacting clause
 1948  and insert:
 1949                        A bill to be entitled                      
 1950         An act relating to the state retirement system;
 1951         amending s. 121.021, F.S.; defining the term
 1952         “retiree”; amending s. 121.051, F.S.; conforming a
 1953         cross-reference; clarifying when a State Community
 1954         College System Optional Retirement Program participant
 1955         is considered a retiree; amending s. 121.053, F.S.;
 1956         revising membership criteria for renewed elected
 1957         officials; amending s. 121.055, F.S.; revising benefit
 1958         payment procedures for the Senior Management Service
 1959         Optional Annuity Program; clarifying when a
 1960         participant is considered retired; amending s.
 1961         121.091, F.S.; revising and clarifying provisions
 1962         relating to retirement benefits; deleting a
 1963         restriction on the reemployment of certain personnel
 1964         by the Florida School for the Deaf and the Blind;
 1965         extending the period of time that instructional
 1966         personnel employed by a developmental research school
 1967         may participate in the Deferred Retirement Option
 1968         Program (DROP); authorizing developmental research
 1969         school and charter schools to reemploy certain
 1970         retirees under specified conditions; providing
 1971         applicability; clarifying that DROP participation
 1972         cannot be canceled; clarifying maximum DROP
 1973         participation; providing for the suspension of DROP
 1974         benefits to a participant who is reemployed; deleting
 1975         obsolete provisions; amending s. 121.122, F.S.;
 1976         revising conditions under which a retiree is entitled
 1977         to certain additional retirement benefits; amending s.
 1978         121.35, F.S.; revising a compulsory membership
 1979         exception for certain members failing to elect
 1980         membership in the optional retirement program;
 1981         amending s. 121.4501, F.S.; defining the term
 1982         “retiree” for purposes of the State University System
 1983         Optional Retirement Program; amending s. 121.591,
 1984         F.S.; conforming provisions; repealing ss. 121.093 and
 1985         121.094, F.S., relating to instructional personnel
 1986         reemployment after retirement from a developmental
 1987         research school or the Florida School for the Deaf and
 1988         the Blind, the provisions of which are reenacted in s.
 1989         121.091, F.S., and relating to instructional personnel
 1990         reemployment after retirement from a charter school,
 1991         the provisions of which are reenacted in s. 121.091,
 1992         F.S., respectively; providing a declaration of
 1993         important state interest; requiring the Department of
 1994         Management Services to request an actuarial study to
 1995         determine the effect of this act on employer
 1996         contributions and to notify the Governor and
 1997         Legislature of the results; providing a contingent
 1998         effective date.
 1999