Florida Senate - 2009 COMMITTEE AMENDMENT
Bill No. SB 1182
Barcode 856546
LEGISLATIVE ACTION
Senate . House
Comm: WD .
03/31/2009 .
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The Committee on Community Affairs (Storms) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Subsections (10), (11), (18), (29), (39), (52),
6 and (53) of section 121.021, Florida Statutes, are amended, and
7 subsections (63) and (64) are added to that section, to read:
8 121.021 Definitions.—The following words and phrases as
9 used in this chapter have the respective meanings set forth
10 unless a different meaning is plainly required by the context:
11 (10) “Employer” means any agency, branch, department,
12 institution, university, institution of higher education, or
13 board of the state, or any county agency, branch, department,
14 board, district school board, city, metropolitan planning
15 organization, or special district of the state, or any city of
16 the state which participates in the system for the benefit of
17 certain of its employees, or a charter school or charter
18 technical career center that participates as provided in s.
19 121.051(2)(d). Employers are not agents of the department, the
20 state board, or the Division of Retirement, and the department,
21 the state board, and the division are not responsible for
22 erroneous information provided by representatives of employers.
23 (11) “Officer or employee” means any person receiving
24 salary payments for work performed in a regularly established
25 position and, if employed by a city, a metropolitan planning
26 organization, or a special district, employed in a covered
27 group. The term does not apply to state employees covered by a
28 leasing agreement under s. 110.191, other public employees
29 covered by a leasing agreement, or a co-employer relationship.
30 (18) “Past service” of any member, as provided in s.
31 121.081(1), means the number of years and complete months and
32 any fractional part of a month, recognized and credited by an
33 employer and approved by the administrator, during which the
34 member was in the active employ of a governmental an employer
35 and for which the employee is not entitled to a benefit prior to
36 his or her date of participation.
37 (29) “Normal retirement date” means the first day of any
38 month following the date a member attains normal retirement age
39 and is vested, which is determined as follows one of the
40 following statuses:
41 (a) If a Regular Class member, a Senior Management Service
42 Class member, or an Elected Officers’ Class the member:
43 1. The first day of the month the member completes 6 or
44 more years of creditable service and attains age 62; or
45 2. The first day of the month following the date the member
46 completes 30 years of creditable service, regardless of age,
47 which may include a maximum of 4 years of military service
48 credit as long as such credit is not claimed under any other
49 system.
50 (b) If a Special Risk Class member, the member:
51 1. The first day of the month the member completes 6 or
52 more years of creditable service in the Special Risk Class and
53 attains age 55;
54 2. The first day of the month following the date the member
55 completes 25 years of creditable service in the Special Risk
56 Class, regardless of age; or
57 3. The first day of the month following the date the member
58 completes 25 years of creditable service and attains age 52,
59 which service may include a maximum of 4 years of military
60 service credit as long as such credit is not claimed under any
61 other system and the remaining years are in the Special Risk
62 Class.
63 (c) If a Senior Management Service Class member, the
64 member:
65 1. Completes 6 years of creditable service in the Senior
66 Management Service Class and attains age 62; or
67 2. Completes 30 years of any creditable service, regardless
68 of age, which may include a maximum of 4 years of military
69 service credit as long as such credit is not claimed under any
70 other system.
71 (d) If an Elected Officers’ Class member, the member:
72 1. Completes 6 years of creditable service in the Elected
73 Officers’ Class and attains age 62; or
74 2. Completes 30 years of any creditable service, regardless
75 of age, which may include a maximum of 4 years of military
76 service credit as long as such credit is not claimed under any
77 other system.
78
79 “Normal retirement age” is attained on the “normal retirement
80 date.”
81 (39)(a) “Termination” occurs, except as provided in
82 paragraph (b), when:
83 1. For retirements effective before January 1, 2010, a
84 member ceases all employment relationships with employers under
85 this system, as defined in subsection (10), but in the event a
86 member should be employed by any such employer within the next
87 calendar month, termination shall be deemed not to have
88 occurred. A leave of absence shall constitute a continuation of
89 the employment relationship, except that a leave of absence
90 without pay due to disability may constitute termination for a
91 member, if such member makes application for and is approved for
92 disability retirement in accordance with s. 121.091(4). The
93 department or state board may require other evidence of
94 termination as it deems necessary.
95 2. For retirements effective on or after January 1, 2010, a
96 member ceases all employment relationships with employers under
97 this system, as defined in subsection (10), but in the event a
98 member should be employed by any such employer within the next
99 12 calendar months, termination shall be deemed not to have
100 occurred. A leave of absence shall constitute a continuation of
101 the employment relationship, except that a leave of absence
102 without pay due to disability may constitute termination for a
103 member, if such member makes application for and is approved for
104 disability retirement in accordance with s. 121.091(4). The
105 department or state board may require other evidence of
106 termination as it deems necessary.
107 (b) “Termination” for a member electing to participate
108 under the Deferred Retirement Option Program (DROP) occurs when
109 the Deferred Retirement Option Program participant ceases all
110 employment relationships with employers under this system in
111 accordance with s. 121.091(13), but:
112 1. For DROP termination dates occurring before January 1,
113 2010, in the event the DROP Deferred Retirement Option Program
114 participant should be employed by any such employer within the
115 next calendar month, termination will be deemed not to have
116 occurred, except as provided in s. 121.091(13)(b)4.c. A leave of
117 absence shall constitute a continuation of the employment
118 relationship.
119 2. For DROP termination dates occurring on or after January
120 1, 2010, in the event the DROP participant should be employed by
121 any such employer within the next 12 calendar months,
122 termination will be deemed not to have occurred, except as
123 provided in s. 121.091(13)(b)4.c. A leave of absence shall
124 constitute a continuation of the employment relationship.
125 (52) “Regularly established position” is defined as
126 follows:
127 (a) With respect to employment for In a state employer
128 agency, the term means a position that which is authorized and
129 established pursuant to law and is compensated from a salaries
130 and benefits appropriation pursuant to s. 216.011(1)(mm)(dd), or
131 an established position that which is authorized pursuant to s.
132 216.262(1)(a) and (b) and is compensated from a salaries account
133 as provided in s. 216.011(1)(nn) by rule.
134 (b) With respect to employment for In a local employer
135 agency (district school board, county agency, community college,
136 city, metropolitan planning organization, charter school,
137 charter technical career center, or special district), the term
138 means a regularly established position that which will be in
139 existence for a period beyond 6 consecutive months, except as
140 provided by rule.
141 (53) “Temporary position” is defined as follows:
142 (a) With respect to employment for In a state employer
143 agency, the term means a an employment position that which is
144 compensated from an other personal services (OPS) account, as
145 provided for in s. 216.011(1)(dd).
146 (b) With respect to employment for In a local employer
147 agency, the term means a an employment position that which will
148 exist for less than 6 consecutive months, or other employment
149 position as determined by rule of the division, regardless of
150 whether it will exist for 6 consecutive months or longer.
151 (63) “State board” means the State Board of Administration.
152 (64) “Trustees” means the Board of Trustees of the State
153 Board of Administration.
154 Section 2. Subsection (6) is added to section 121.031,
155 Florida Statutes, to read:
156 121.031 Administration of system; appropriation; oaths;
157 actuarial studies; public records.—
158 (6) Unless prior written approval is obtained from the
159 department or state board, any promotional materials or
160 advertisements that, directly or indirectly, refer to the
161 “Florida Retirement System” or the “FRS” must contain a
162 disclaimer that the information is not approved or endorsed by
163 the Florida Retirement System.
164 Section 3. Paragraph (a) of subsection (1) and paragraphs
165 (c) and (f) of subsection (2) of section 121.051, Florida
166 Statutes, are amended to read:
167 121.051 Participation in the system.—
168 (1) COMPULSORY PARTICIPATION.—
169 (a) The provisions of this law are shall be compulsory as
170 to all officers and employees, except elected officers who meet
171 the requirements of s. 121.052(3), who are employed on or after
172 December 1, 1970, by of an employer other than those referred to
173 in paragraph (2)(b), and each officer or employee, as a
174 condition of employment, shall become a member of the system as
175 of his or her date of employment, except that a person who is
176 retired from any state retirement system and is reemployed on or
177 after December 1, 1970, may not renew his or her membership in
178 any state retirement system except as provided in s.
179 121.091(4)(h) for a person who recovers from disability, and as
180 provided in s. 121.091(9)(b)10.8. for a person who is elected to
181 public office, and, effective July 1, 1991, as provided in s.
182 121.122 for all other retirees. Officers and employees of the
183 University Athletic Association, Inc., a nonprofit association
184 connected with the University of Florida, employed on and after
185 July 1, 1979, may shall not participate in any state-supported
186 retirement system.
187 1. Any person appointed on or after July 1, 1989, to a
188 faculty position in a college at the J. Hillis Miller Health
189 Center at the University of Florida or the Medical Center at the
190 University of South Florida which has a faculty practice plan
191 provided by rule adopted by the Board of Regents may not
192 participate in the Florida Retirement System. Effective July 1,
193 2008, any person appointed thereafter to a faculty position,
194 including clinical faculty, in a college at a state university
195 that has a faculty practice plan authorized by the Board of
196 Governors may not participate in the Florida Retirement System.
197 A faculty member so appointed shall participate in the optional
198 retirement program for the State University System
199 notwithstanding the provisions of s. 121.35(2)(a).
200 2. For purposes of this paragraph, the term “faculty
201 position” is defined as a position assigned the principal
202 responsibility of teaching, research, or public service
203 activities or administrative responsibility directly related to
204 the academic mission of the college. The term “clinical faculty”
205 is defined as a faculty position appointment in conjunction with
206 a professional position in a hospital or other clinical
207 environment at a college. The term “faculty practice plan”
208 includes professional services to patients, institutions, or
209 other parties which are rendered by the clinical faculty
210 employed by a college that has a faculty practice plan at a
211 state university authorized by the Board of Governors.
212 (2) OPTIONAL PARTICIPATION.—
213 (c) Employees of public community colleges or charter
214 technical career centers sponsored by public community colleges,
215 as designated in s. 1000.21(3), who are members of the Regular
216 Class of the Florida Retirement System and who comply with the
217 criteria set forth in this paragraph and in s. 1012.875 may
218 elect, in lieu of participating in the Florida Retirement
219 System, to withdraw from the Florida Retirement System
220 altogether and participate in an optional retirement program
221 provided by the employing agency under s. 1012.875, to be known
222 as the State Community College System Optional Retirement
223 Program. Pursuant thereto:
224 1. Through June 30, 2001, the cost to the employer for such
225 annuity shall equal the normal cost portion of the employer
226 retirement contribution which would be required if the employee
227 were a member of the Regular Class defined benefit program, plus
228 the portion of the contribution rate required by s. 112.363(8)
229 that would otherwise be assigned to the Retiree Health Insurance
230 Subsidy Trust Fund. Effective July 1, 2001, each employer shall
231 contribute on behalf of each participant in the optional program
232 an amount equal to 10.43 percent of the participant’s gross
233 monthly compensation. The employer shall deduct an amount to
234 provide for the administration of the optional retirement
235 program. The employer providing the optional program shall
236 contribute an additional amount to the Florida Retirement System
237 Trust Fund equal to the unfunded actuarial accrued liability
238 portion of the Regular Class contribution rate.
239 2. The decision to participate in such an optional
240 retirement program shall be irrevocable for as long as the
241 employee holds a position eligible for participation, except as
242 provided in subparagraph 3. Any service creditable under the
243 Florida Retirement System shall be retained after the member
244 withdraws from the Florida Retirement System; however,
245 additional service credit in the Florida Retirement System shall
246 not be earned while a member of the optional retirement program.
247 3. An employee who has elected to participate in the
248 optional retirement program shall have one opportunity, at the
249 employee’s discretion, to choose to transfer from the optional
250 retirement program to the defined benefit program of the Florida
251 Retirement System or to the Public Employee Optional Retirement
252 Program, subject to the terms of the applicable optional
253 retirement program contracts.
254 a. If the employee chooses to move to the Public Employee
255 Optional Retirement Program, any contributions, interest, and
256 earnings creditable to the employee under the State Community
257 College System Optional Retirement Program shall be retained by
258 the employee in the State Community College System Optional
259 Retirement Program, and the applicable provisions of s.
260 121.4501(4) shall govern the election.
261 b. If the employee chooses to move to the defined benefit
262 program of the Florida Retirement System, the employee shall
263 receive service credit equal to his or her years of service
264 under the State Community College System Optional Retirement
265 Program.
266 (I) The cost for such credit shall be an amount
267 representing the present value of that employee’s accumulated
268 benefit obligation for the affected period of service. The cost
269 shall be calculated as if the benefit commencement occurs on the
270 first date the employee would become eligible for unreduced
271 benefits, using the discount rate and other relevant actuarial
272 assumptions that were used to value the Florida Retirement
273 System defined benefit plan liabilities in the most recent
274 actuarial valuation. The calculation shall include any service
275 already maintained under the defined benefit plan in addition to
276 the years under the State Community College System Optional
277 Retirement Program. The present value of any service already
278 maintained under the defined benefit plan shall be applied as a
279 credit to total cost resulting from the calculation. The
280 division shall ensure that the transfer sum is prepared using a
281 formula and methodology certified by an enrolled actuary.
282 (II) The employee must transfer from his or her State
283 Community College System Optional Retirement Program account and
284 from other employee moneys as necessary, a sum representing the
285 present value of that employee’s accumulated benefit obligation
286 immediately following the time of such movement, determined
287 assuming that attained service equals the sum of service in the
288 defined benefit program and service in the State Community
289 College System Optional Retirement Program.
290 4. Participation in the optional retirement program shall
291 be limited to those employees who satisfy the following
292 eligibility criteria:
293 a. The employee must be otherwise eligible for membership
294 or renewed membership in the Regular Class of the Florida
295 Retirement System, as provided in s. 121.021(11) and (12) or s.
296 121.122.
297 b. The employee must be employed in a full-time position
298 classified in the Accounting Manual for Florida’s Public
299 Community Colleges as:
300 (I) Instructional; or
301 (II) Executive Management, Instructional Management, or
302 Institutional Management, if a community college determines that
303 recruiting to fill a vacancy in the position is to be conducted
304 in the national or regional market, and:
305 (A) The duties and responsibilities of the position include
306 either the formulation, interpretation, or implementation of
307 policies; or
308 (B) The duties and responsibilities of the position include
309 the performance of functions that are unique or specialized
310 within higher education and that frequently involve the support
311 of the mission of the community college.
312 c. The employee must be employed in a position not included
313 in the Senior Management Service Class of the Florida Retirement
314 System, as described in s. 121.055.
315 5. A participant who receives a program distribution funded
316 by employer contributions shall be deemed to be retired from a
317 state-administered retirement system in the event of subsequent
318 employment with any employer that participates in the Florida
319 Retirement System. Participants in the program are subject to
320 the same reemployment limitations, renewed membership
321 provisions, and forfeiture provisions as are applicable to
322 regular members of the Florida Retirement System under ss.
323 121.091(9), 121.122, and 121.091(5), respectively.
324 6. Eligible community college employees shall be compulsory
325 members of the Florida Retirement System until, pursuant to the
326 procedures set forth in s. 1012.875, a written election to
327 withdraw from the Florida Retirement System and to participate
328 in the State Community College System Optional Retirement
329 Program is filed with the program administrator and received by
330 the division.
331 a. Any community college employee whose program eligibility
332 results from initial employment shall be enrolled in the State
333 Community College System Optional Retirement Program retroactive
334 to the first day of eligible employment. The employer retirement
335 contributions paid through the month of the employee plan change
336 shall be transferred to the community college for the employee’s
337 optional program account, and, effective the first day of the
338 next month, the employer shall pay the applicable contributions
339 based upon subparagraph 1.
340 b. Any community college employee whose program eligibility
341 results from a change in status due to the subsequent
342 designation of the employee’s position as one of those specified
343 in subparagraph 4. or due to the employee’s appointment,
344 promotion, transfer, or reclassification to a position specified
345 in subparagraph 4. shall be enrolled in the program upon the
346 first day of the first full calendar month that such change in
347 status becomes effective. The employer retirement contributions
348 paid from the effective date through the month of the employee
349 plan change shall be transferred to the community college for
350 the employee’s optional program account, and, effective the
351 first day of the next month, the employer shall pay the
352 applicable contributions based upon subparagraph 1.
353 7. Effective July 1, 2003, through December 31, 2008, any
354 participant of the State Community College System Optional
355 Retirement Program who has service credit in the defined benefit
356 plan of the Florida Retirement System for the period between his
357 or her first eligibility to transfer from the defined benefit
358 plan to the optional retirement program and the actual date of
359 transfer may, during his or her employment, elect to transfer to
360 the optional retirement program a sum representing the present
361 value of the accumulated benefit obligation under the defined
362 benefit retirement program for such period of service credit.
363 Upon such transfer, all such service credit previously earned
364 under the defined benefit program of the Florida Retirement
365 System during this period shall be nullified for purposes of
366 entitlement to a future benefit under the defined benefit
367 program of the Florida Retirement System.
368 (f)1. If Whenever an employer that participates in the
369 Florida Retirement System undertakes the transfer, merger, or
370 consolidation of governmental services or assumes the functions
371 and activities of an employing governmental entity that was not
372 an employer under the system, the employer must notify the
373 department at least 60 days prior to such action and shall
374 provide documentation as required by the department. The
375 transfer, merger, or consolidation of governmental services or
376 assumption of governmental functions and activities must occur
377 between public employers. The current or former employer may pay
378 the employees’ past service cost, unless prohibited under this
379 chapter. This subparagraph does not apply to the transfer,
380 merger, or consolidation of governmental services or assumption
381 of functions and activities of a public entity under a leasing
382 agreement having a co-employer relationship. Employers and
383 employees of a public governmental employer whose service is
384 covered by a leasing agreement under s. 110.191, any other
385 leasing agreement, or a co-employer relationship are not
386 eligible to participate in the Florida Retirement System.
387 2. If When the agency to which a member’s employing unit is
388 transferred, merged, or consolidated does not participate in the
389 Florida Retirement System, a member may shall elect in writing
390 to remain in the Florida Retirement System or to transfer to the
391 local retirement system operated by the such agency. If the such
392 agency does not participate in a local retirement system, the
393 member shall continue membership in the Florida Retirement
394 System. In either case, the membership continues shall continue
395 for as long as the member is employed by the agency to which his
396 or her unit was transferred, merged, or consolidated.
397 Section 4. Paragraph (f) of subsection (2) and paragraph
398 (e) of subsection (3) of section 121.052, Florida Statutes, are
399 amended to read:
400 121.052 Membership class of elected officers.—
401 (2) MEMBERSHIP.—The following holders of elective office,
402 hereinafter referred to as “elected officers,” whether assuming
403 elective office by election, reelection, or appointment, are
404 members of the Elected Officers’ Class, except as provided in
405 subsection (3):
406 (f)1. Any elected officer of a municipality or special
407 district on or after July 1, 1997, through December 31, 2009, as
408 provided in paragraph (3)(e).
409 2. Any elected officer of a municipality or special
410 district on or after January 1, 2010, when the governing body of
411 a municipality or special district, at the time it joins the
412 Florida Retirement System for its elected officers, elects by
413 majority vote to designate all its elected positions for
414 inclusion in the Elected Officers’ Class.
415 (3) PARTICIPATION AND WITHDRAWAL, GENERALLY.—Effective July
416 1, 1990, participation in the Elected Officers’ Class shall be
417 compulsory for elected officers listed in paragraphs (2)(a)-(d)
418 and (f) assuming office on or after said date, unless the
419 elected officer elects membership in another class or withdraws
420 from the Florida Retirement System as provided in paragraphs
421 (3)(a)-(d):
422 (e)1. Effective July 1, 1997, the governing body of a
423 municipality or special district may, by majority vote, elect to
424 designate all its elected positions for inclusion in the Elected
425 Officers’ Class. Such election shall be made between July 1,
426 1997, and December 31, 1997, and is irrevocable. The designation
427 of such positions shall be effective the first day of the month
428 following receipt by the department of the ordinance or
429 resolution passed by the governing body.
430 2. Effective July 1, 2001, the governing body of a
431 municipality or special district may, by majority vote, elect to
432 designate all its elected positions for inclusion in the Elected
433 Officers’ Class. Such election shall be made between July 1,
434 2001, and December 31, 2001, and shall be irrevocable. The
435 designation of such positions shall be effective the first day
436 of the month following receipt by the department of the
437 ordinance or resolution passed by the governing body.
438 3. Effective July 1, 2009, the governing body of a
439 municipality or special district may, by majority vote, elect to
440 designate all its elected positions for inclusion in the Elected
441 Officers’ Class. Such election shall be made between July 1,
442 2009, and December 31, 2009, and is irrevocable. The designation
443 of such positions is effective the first day of the month
444 following receipt by the department of the ordinance or
445 resolution passed by the governing body.
446 Section 5. Subsections (1) and (2) of section 121.053,
447 Florida Statutes, are amended to read:
448 121.053 Participation in the Elected Officers’ Class for
449 retired members.—
450 (1)(a)1. Any retiree of a state-administered retirement
451 system who initially serves in an elective office in a regularly
452 established position with a covered employer on or after January
453 1, 2010, shall not be enrolled in the Florida Retirement System.
454 2. An elected officer who is elected or appointed to an
455 elective office and is participating in the Deferred Retirement
456 Option Program is subject to termination as provided in s.
457 121.021(39)(b), and reemployment limitations as provided in s.
458 121.091(9), upon completion of his or her DROP participation
459 period.
460 (b) Before January 1, 2010, any member who retired under
461 any existing system as defined in s. 121.021(2), and receives a
462 benefit thereof, and who serves in an office covered by the
463 Elected Officers’ Class for a period of at least 6 years, shall
464 be entitled to receive an additional retirement benefit for such
465 elected officer service prior to July 1, 1990, under the Elected
466 Officers’ Class of the Florida Retirement System, as follows:
467 1. Upon completion of 6 or more years of creditable service
468 in an office covered by the Elected Officers’ Class, s. 121.052,
469 such member shall notify the administrator of his or her intent
470 to purchase elected officer service prior to July 1, 1990, and
471 shall pay the member contribution applicable for the period
472 being claimed, plus 4 percent interest compounded annually from
473 the first year of service claimed until July 1, 1975, and 6.5
474 percent interest compounded annually thereafter, until full
475 payment is made to the Florida Retirement System Trust Fund;
476 however, such member may purchase retirement credit under the
477 Elected Officers’ Class only for such service as an elected
478 officer.
479 2. Upon payment of the amount specified in subparagraph 1.,
480 the employer shall pay into the Florida Retirement System Trust
481 Fund the applicable employer contribution for the period of
482 elected officer service prior to July 1, 1990, being claimed by
483 the member, plus 4 percent interest compounded annually from the
484 first year of service claimed until July 1, 1975, and 6.5
485 percent interest compounded annually thereafter, until full
486 payment is made to the Florida Retirement System Trust Fund.
487 (c)(b) Any retired member of the Florida Retirement System,
488 or any existing system as defined in s. 121.021(2), who, on or
489 after July 1, 1990, through December 31, 2009, is serving in, or
490 is elected or appointed to, an elective office covered by the
491 Elected Officers’ Class shall be enrolled in the appropriate
492 subclass of the Elected Officers’ Class of the Florida
493 Retirement System, and applicable contributions shall be paid
494 into the Florida Retirement System Trust Fund as provided in s.
495 121.052(7). Pursuant thereto:
496 1. Any such retired member shall be eligible to continue to
497 receive retirement benefits as well as compensation for the
498 elected officer service for as long as he or she remains in an
499 elective office covered by the Elected Officers’ Class.
500 2. If any such member serves in an elective office covered
501 by the Elected Officers’ Class and becomes vested under that
502 class, he or she shall be entitled to receive an additional
503 retirement benefit for such elected officer service.
504 3. Such member shall be entitled to purchase additional
505 retirement credit in the Elected Officers’ Class for any
506 postretirement service performed in an elected position eligible
507 for the Elected Officers’ Class prior to July 1, 1990, or in the
508 Regular Class for any postretirement service performed in any
509 other regularly established position prior to July 1, 1991, by
510 paying the applicable Elected Officers’ Class or Regular Class
511 employee and employer contributions for the period being
512 claimed, plus 4 percent interest compounded annually from the
513 first year of service claimed until July 1, 1975, and 6.5
514 percent interest compounded thereafter, until full payment is
515 made to the Florida Retirement System Trust Fund. The
516 contribution for postretirement Regular Class service between
517 July 1, 1985, and July 1, 1991, for which the reemployed retiree
518 contribution was paid, shall be the difference between such
519 contribution and the total applicable contribution for the
520 period being claimed, plus interest. The employer of such member
521 may pay the applicable employer contribution in lieu of the
522 member. If a member does not wish to claim credit for all of the
523 postretirement service for which he or she is eligible, the
524 service the member claims must be the most recent service.
525 4. Creditable service for which credit was received, or
526 which remained unclaimed, at retirement may not be claimed or
527 applied toward service credit earned following renewed
528 membership. However, service earned in accordance with the
529 renewed membership provisions in s. 121.122 may be used in
530 conjunction with creditable service earned under this paragraph,
531 provided applicable vesting requirements and other existing
532 statutory conditions required by this chapter are met.
533 5. An elected officer who is elected or appointed to an
534 elective office and is participating in the Deferred Retirement
535 Option Program before January 1, 2010, is not subject to
536 termination as provided in s. 121.021(39)(b), or reemployment
537 limitations as provided in s. 121.091(9), until the end of his
538 or her current term of office or, if the officer is
539 consecutively elected or reelected to an elective office
540 eligible for coverage under the Florida Retirement System, until
541 he or she no longer holds such an elective office, as follows:
542 a. At the end of the 60-month DROP period:
543 (I) The officer’s DROP account shall accrue no additional
544 monthly benefits, but shall continue to earn interest as
545 provided in s. 121.091(13).
546 (II) No retirement contributions shall be required of the
547 employer of the elected officer and no additional retirement
548 credit shall be earned under the Florida Retirement System.
549 b. Nothing herein shall prevent an elected officer from
550 voluntarily terminating his or her elective office at any time
551 and electing to receive his or her DROP proceeds. However, until
552 termination requirements are fulfilled as provided in s.
553 121.021(39), any elected officer whose termination limitations
554 are extended by this section shall be ineligible for renewed
555 membership in the system and shall receive no pension payments,
556 DROP lump sum payments, or any other state payment other than
557 the statutorily determined salary, travel, and per diem for the
558 elective office.
559 c. Upon termination, the officer shall receive his or her
560 accumulated DROP account, plus interest, and shall accrue and
561 commence receiving monthly retirement benefits, which shall be
562 paid on a prospective basis only.
563
564 However, an officer electing to participate in the Deferred
565 Retirement Option Program on or before June 30, 2002, shall not
566 be required to terminate and shall remain subject to the
567 provisions of this subparagraph as adopted in section 1 of
568 chapter 2001-235, Laws of Florida.
569 (2) Upon attaining his or her normal retirement date and
570 payment of the amount specified in paragraphs (1)(b) and (c)
571 (1)(a) and (b), and upon application to the administrator of the
572 intent to retire, the member shall receive a monthly benefit
573 under this section, in addition to any benefits already being
574 received, which shall commence on the last day of the month of
575 retirement and be payable on the last day of the month
576 thereafter during his or her lifetime. The amount of such
577 monthly benefit shall be the total percentage of retirement
578 credit purchased under this section multiplied by the member’s
579 average monthly compensation as an elected officer, adjusted
580 according to the option selected at retirement under s.
581 121.091(6).
582 Section 6. Paragraph (f) of subsection (1) and paragraphs
583 (c) and (e) of subsection (6) of section 121.055, Florida
584 Statutes, are amended to read:
585 121.055 Senior Management Service Class.—There is hereby
586 established a separate class of membership within the Florida
587 Retirement System to be known as the “Senior Management Service
588 Class,” which shall become effective February 1, 1987.
589 (1)
590 (f) Effective July 1, 1997:
591 1. Except as provided in subparagraph 3., any elected state
592 officer eligible for membership in the Elected Officers’ Class
593 under s. 121.052(2)(a), (b), or (c) who elects membership in the
594 Senior Management Service Class under s. 121.052(3)(c) may,
595 within 6 months after assuming office or within 6 months after
596 this act becomes a law for serving elected state officers, elect
597 to participate in the Senior Management Service Optional Annuity
598 Program, as provided in subsection (6), in lieu of membership in
599 the Senior Management Service Class.
600 2. Except as provided in subparagraph 3., any elected
601 county officer of a local agency employer eligible for
602 membership in the Elected Officers’ Class under s. 121.052(2)(d)
603 who elects membership in the Senior Management Service Class
604 under s. 121.052(3)(c) may, within 6 months after assuming
605 office, or within 6 months after this act becomes a law for
606 serving elected county officers of a local agency employer,
607 elect to withdraw from the Florida Retirement System participate
608 in a lifetime monthly annuity program, as provided in
609 subparagraph (b)2., in lieu of membership in the Senior
610 Management Service Class.
611 3. Any retiree of a state-administered retirement system
612 who is initially reemployed on or after January 1, 2010, as an
613 elected official eligible for Elected Officers’ Class membership
614 shall not be eligible for renewed membership in the Senior
615 Management Service Optional Annuity Program as provided in
616 subsection (6) or to withdraw from the Florida Retirement System
617 as a renewed member as provided in subparagraph (b)2., as
618 applicable, in lieu of Senior Management Service Class
619 membership.
620 (6)
621 (c) Participation.—
622 1. Any eligible employee who is employed on or before
623 February 1, 1987, may elect to participate in the optional
624 annuity program in lieu of participation in the Senior
625 Management Service Class. Such election shall be made in writing
626 and filed with the department and the personnel officer of the
627 employer on or before May 1, 1987. Any eligible employee who is
628 employed on or before February 1, 1987, and who fails to make an
629 election to participate in the optional annuity program by May
630 1, 1987, shall be deemed to have elected membership in the
631 Senior Management Service Class.
632 2. Except as provided in subparagraph 6., any employee who
633 becomes eligible to participate in the optional annuity program
634 by reason of initial employment commencing after February 1,
635 1987, may, within 90 days after the date of commencement of
636 employment, elect to participate in the optional annuity
637 program. Such election shall be made in writing and filed with
638 the personnel officer of the employer. Any eligible employee who
639 does not within 90 days after commencement of such employment
640 elect to participate in the optional annuity program shall be
641 deemed to have elected membership in the Senior Management
642 Service Class.
643 3. A person who is appointed to a position in the Senior
644 Management Service Class and who is a member of an existing
645 retirement system or the Special Risk or Special Risk
646 Administrative Support Classes of the Florida Retirement System
647 may elect to remain in such system or class in lieu of
648 participation in the Senior Management Service Class or optional
649 annuity program. Such election shall be made in writing and
650 filed with the department and the personnel officer of the
651 employer within 90 days of such appointment. Any eligible
652 employee who fails to make an election to participate in the
653 existing system, the Special Risk Class of the Florida
654 Retirement System, the Special Risk Administrative Support Class
655 of the Florida Retirement System, or the optional annuity
656 program shall be deemed to have elected membership in the Senior
657 Management Service Class.
658 4. Except as provided in subparagraph 5., an employee’s
659 election to participate in the optional annuity program is
660 irrevocable as long as such employee continues to be employed in
661 an eligible position and continues to meet the eligibility
662 requirements set forth in this paragraph.
663 5. Effective from July 1, 2002, through September 30, 2002,
664 any active employee in a regularly established position who has
665 elected to participate in the Senior Management Service Optional
666 Annuity Program has one opportunity to choose to move from the
667 Senior Management Service Optional Annuity Program to the
668 Florida Retirement System defined benefit program.
669 a. The election must be made in writing and must be filed
670 with the department and the personnel officer of the employer
671 before October 1, 2002, or, in the case of an active employee
672 who is on a leave of absence on July 1, 2002, within 90 days
673 after the conclusion of the leave of absence. This election is
674 irrevocable.
675 b. The employee will receive service credit under the
676 defined benefit program of the Florida Retirement System equal
677 to his or her years of service under the Senior Management
678 Service Optional Annuity Program. The cost for such credit shall
679 be an amount representing the present value of that employee’s
680 accumulated benefit obligation for the affected period of
681 service.
682 c. The employee must transfer the total accumulated
683 employer contributions and earnings on deposit in his or her
684 Senior Management Service Optional Annuity Program account. If
685 the transferred amount is not sufficient to pay the amount due,
686 the employee must pay a sum representing the remainder of the
687 amount due. In no case may the employee retain any employer
688 contributions or earnings thereon from the Senior Management
689 Service Optional Annuity Program account.
690 6. Any retiree of a state-administered retirement system
691 who is initially reemployed on or after January 1, 2010, is not
692 eligible for renewed membership in the Senior Management Service
693 Optional Annuity Program.
694 (e) Benefits.—
695 1. Benefits shall be payable under the Senior Management
696 Service Optional Annuity Program only to participants in the
697 program, or their beneficiaries as designated by the participant
698 in the contract with a provider company, and such benefits shall
699 be paid by the designated company in accordance with the terms
700 of the annuity contract or contracts applicable to the
701 participant. A participant must be terminated from all
702 employment with all Florida Retirement System employers as
703 provided in s. 121.021(39) to begin receiving the employer
704 funded benefit. Benefits funded by employer contributions shall
705 be payable under the terms of the contract only as a lifetime
706 annuity to the participant, his or her beneficiary, or his or
707 her estate, in addition to except for:
708 a. A lump-sum payment to the beneficiary upon the death of
709 the participant;
710 b. A cash-out of a de minimis account upon the request of a
711 former participant who has been terminated for a minimum of 6
712 months from the employment that entitled him or her to optional
713 annuity program participation. A de minimis account is an
714 account with a provider company containing employer
715 contributions and accumulated earnings of not more than $5,000
716 made under the provisions of this chapter. Such cash-out must be
717 a complete liquidation of the account balance with that company
718 and is subject to the provisions of the Internal Revenue Code;
719 c. A mandatory distribution of a de minimis account of a
720 former participant who has been terminated for a minimum of 6
721 months from the employment that entitled him or her to optional
722 annuity program participation as authorized by the department;
723 or
724 d.c. A lump-sum direct rollover distribution whereby all
725 accrued benefits, plus interest and investment earnings, are
726 paid from the participant’s account directly to the custodian of
727 an eligible retirement plan, as defined in s. 402(c)(8)(B) of
728 the Internal Revenue Code, on behalf of the participant.
729
730 As used in this subparagraph, a “de minimis account” means an
731 account with a provider company containing employer
732 contributions and accumulated earnings of not more than $5,000
733 made under this chapter.
734 2. The benefits payable to any person under the Senior
735 Management Service Optional Annuity Program, and any
736 contribution accumulated under such program, shall not be
737 subject to assignment, execution, or attachment or to any legal
738 process whatsoever.
739 3. Except as provided in subparagraph 4., a participant who
740 terminates employment and receives optional annuity program
741 benefits funded by employer contributions shall be deemed to be
742 retired from a state-administered retirement system in the event
743 of subsequent employment with any employer that participates in
744 the Florida Retirement System.
745 4. A participant who receives optional annuity program
746 benefits funded by employer contributions as a mandatory
747 distribution of a de minimis account authorized by the
748 department will not be considered a retiree.
749 Section 7. Paragraph (a) of subsection (6) of section
750 121.071, Florida Statutes, is amended to read:
751 121.071 Contributions.—Contributions to the system shall be
752 made as follows:
753 (6)(a) Required employee contributions for all service
754 other than current service, including, but not limited to, prior
755 service, past service, military service, leave-of-absence
756 service, out-of-state service, and certain non-Florida
757 Retirement System in-state service, shall be paid by cash,
758 personal check, cashier’s check, or money order, or a direct
759 rollover or transfer from a qualified plan as provided under the
760 Internal Revenue Code. The payment must only; shall be
761 accompanied by a statement identifying the service for which
762 payment is made; and shall be made in a lump sum for the total
763 amount due or in annual payments of not less than $100, except
764 for the final payment if less than $100, unless another method
765 of payment is authorized by law or rule.
766 Section 8. Paragraphs (a), (b), (e), (f), and (h) of
767 subsection (1) of section 121.081, Florida Statutes, are amended
768 to read:
769 121.081 Past service; prior service; contributions.
770 Conditions under which past service or prior service may be
771 claimed and credited are:
772 (1)(a) Past service, as defined in s. 121.021(18), may be
773 claimed as creditable service by officers or employees of a
774 city, metropolitan planning organization, charter school,
775 charter technical career center, or special district who that
776 become a covered group under this system. The governing body of
777 a covered group in compliance with s. 121.051(2)(b) may elect to
778 provide benefits with respect to past service earned prior to
779 January 1, 1975, in accordance with this chapter, and the cost
780 for such past service shall be established by applying the
781 following formula: The member contribution for both regular and
782 special risk members shall be 4 percent of the gross annual
783 salary for each year of past service claimed, plus 4-percent
784 employer matching contribution, plus 4-percent interest thereon
785 compounded annually, figured on each year of past service, with
786 interest compounded from date of annual salary earned until July
787 1, 1975, and 6.5-percent interest compounded annually thereafter
788 until date of payment. Once the total cost for a member has been
789 figured to date, then after July 1, 1975, 6.5-percent compounded
790 interest shall be added each June 30 thereafter on any unpaid
791 balance until the cost of such past service liability is paid in
792 full. The following formula shall be used in calculating past
793 service earned prior to January 1, 1975: (Annual gross salary
794 multiplied by 8 percent) multiplied by the 4-percent or 6.5
795 percent compound interest table factor, as may be applicable.
796 The resulting product equals cost to date for each particular
797 year of past service.
798 (b) Past service earned after January 1, 1975, may be
799 claimed by officers or employees of a city, metropolitan
800 planning organization, charter school, charter technical career
801 center, or special district who become that becomes a covered
802 group under this system. The governing body of a covered group
803 may elect to provide benefits with respect to past service
804 earned after January 1, 1975, in accordance with this chapter,
805 and the cost for such past service shall be established by
806 applying the following formula: The employer shall contribute an
807 amount equal to the contribution rate in effect at the time the
808 service was earned, multiplied by the employee’s gross salary
809 for each year of past service claimed, plus 6.5-percent interest
810 thereon, compounded annually, figured on each year of past
811 service, with interest compounded from date of annual salary
812 earned until date of payment.
813 (e) Past service, as defined in s. 121.021(18), may be
814 claimed as creditable service by a member of the Florida
815 Retirement System who formerly was an officer or employee of a
816 city, metropolitan planning organization, charter school,
817 charter technical career center, or special district,
818 notwithstanding the status or form of the retirement system, if
819 any, of that city, metropolitan planning organization, charter
820 school, charter technical career center, or special district and
821 irrespective of whether officers or employees of that city,
822 metropolitan planning organization, charter school, charter
823 technical career center, or special district now or hereafter
824 become a covered group under the Florida Retirement System. Such
825 member may claim creditable service and be entitled to the
826 benefits accruing to the regular class of members as provided
827 for the past service claimed under this paragraph by paying into
828 the retirement trust fund an amount equal to the total actuarial
829 cost of providing the additional benefit resulting from such
830 past-service credit, discounted by the applicable actuarial
831 factors to date of retirement.
832 (f) If When any person, either prior to this act or
833 hereafter, becomes entitled to and participates does participate
834 in one of the retirement systems under consolidated within or
835 created by this chapter through the consolidation or merger of
836 governments or the transfer of functions between units of
837 government, either at the state or local level or between state
838 and local units, or through the assumption of functions or
839 activities by a state or local unit from an employing
840 governmental entity that which was not an employer under the
841 system, and such person becomes a member of the Florida
842 Retirement System, such person is shall be entitled to receive
843 past-service credit as defined in s. 121.021(18) for the time
844 the such person performed services for, and was an employee of,
845 such state or local unit or other governmental employing entity
846 prior to the transfer, merger, consolidation, or assumption of
847 functions and activities. Past-service credit allowed by this
848 paragraph is shall also be available to any person who becomes a
849 member of an existing system, as defined in s. 121.021(2), prior
850 to December 1, 1970, through the transfer, merger,
851 consolidation, or assumption of functions and activities set
852 forth in this paragraph and who subsequently becomes a member of
853 the Florida Retirement System. However, credit for the past
854 service may not be granted until contributions are made in the
855 manner provided in this subsection. If a person rejected Florida
856 Retirement System membership at the time of the transfer,
857 merger, or consolidation, or assumption of governmental
858 functions and activities, the required contributions shall be at
859 total actuarial cost as specified in paragraph (e). Such
860 contributions or accrued interest may not be paid from any
861 public state funds.
862 (h) The following provisions apply to the purchase of past
863 service:
864 1. Notwithstanding any of the provisions of this
865 subsection, past-service credit may not be purchased under this
866 chapter for any service that is used to obtain a pension or
867 benefit from a any local retirement system. Eligibility to
868 receive or the receipt of contributions to a retirement plan
869 made by the employer on behalf of the employee is considered a
870 benefit.
871 2. A member may not receive past service credit under
872 paragraphs (a), (b), (e), or (f) for any leaves of absence
873 without pay, except that credit for active military service
874 leaves of absence may be claimed under paragraphs (a), (b), and
875 (f), in accordance with s. 121.111(1).
876 3. A member may not receive past service credit for co
877 employer service. Co-employer service or a co-employer
878 relationship is employment in a single position simultaneously
879 covered and reported by both a public employer and a private
880 employer.
881 4.3. If a member does not want desire to receive credit for
882 all of his or her past service, the period the member claims
883 must be the most recent past service prior to his or her
884 participation in the Florida Retirement System.
885 5.4. The cost of past service purchased by an employing
886 agency for its employees may be amortized over the such period
887 of time as is provided in the agreement, but not to exceed 15
888 years, calculated in accordance with rule 60S-1.007(5)(f),
889 Florida Administrative Code.
890 6.5. The retirement account of each member for whom past
891 service is being provided by his or her employer shall be
892 credited with all past service the employer agrees to purchase
893 as soon as the agreement between the employer and the department
894 is executed. Pursuant thereto:
895 a. Each such member’s account shall also be posted with the
896 total contribution his or her employer agrees to make on in the
897 member’s behalf for past service earned prior to October 1,
898 1975, excluding those contributions representing the employer’s
899 matching share and the compound interest calculation on the
900 total contribution. However, a portion of any contributions paid
901 by an employer for past service credit earned on and after
902 October 1, 1975, may not be posted to the a member’s account.
903 b. A refund of contributions payable after an employer has
904 made a written agreement to purchase past service for employees
905 of the covered group includes shall include contributions for
906 past service which are posted to the a member’s account.
907 However, contributions for past service earned on and after
908 October 1, 1975, are not refundable.
909 Section 9. Paragraphs (b) and (c) of subsection (9) and
910 subsections (13) and (14) of section 121.091, Florida Statutes,
911 are amended to read:
912 121.091 Benefits payable under the system.—Benefits may not
913 be paid under this section unless the member has terminated
914 employment as provided in s. 121.021(39)(a) or begun
915 participation in the Deferred Retirement Option Program as
916 provided in subsection (13), and a proper application has been
917 filed in the manner prescribed by the department. The department
918 may cancel an application for retirement benefits when the
919 member or beneficiary fails to timely provide the information
920 and documents required by this chapter and the department’s
921 rules. The department shall adopt rules establishing procedures
922 for application for retirement benefits and for the cancellation
923 of such application when the required information or documents
924 are not received.
925 (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
926 (b)1. Any person who is retired under this chapter, except
927 under the disability retirement provisions of subsection (4),
928 may be reemployed by any private or public employer after
929 retirement and receive retirement benefits and compensation from
930 the his or her employer without limitation any limitations,
931 except that the a person may not receive both a salary from
932 reemployment with any agency participating in the Florida
933 Retirement System and retirement benefits under this chapter for
934 a period of 12 calendar months immediately after meeting
935 subsequent to the definition of termination in s. 121.021(39)
936 date of retirement. However, a DROP participant may shall
937 continue employment and receive a salary during the period of
938 participation in DROP the Deferred Retirement Option Program, as
939 provided in subsection (13).
940 2. Any person to whom the limitation in subparagraph 1.
941 applies who violates such reemployment limitation and who is
942 reemployed with any agency participating in the Florida
943 Retirement System after he or she has been retired and met the
944 definition of termination in s. 121.021(39) but before
945 completion of the 12-month limitation period must shall give
946 timely notice of this fact in writing to the employer and to the
947 Division of Retirement and shall have his or her retirement
948 benefits suspended while employed during for the balance of the
949 12-month limitation period unless the person exceeds the 780
950 hour limitation in subparagraph 4. or subparagraph 5. Any person
951 employed in violation of this subparagraph paragraph and any
952 employing agency that which knowingly employs or appoints such
953 person without notifying the division of Retirement to suspend
954 retirement benefits are shall be jointly and severally liable
955 for reimbursement to the retirement trust fund of any benefits
956 paid during the reemployment limitation period. To avoid
957 liability, the such employing agency must shall have a written
958 statement from the retiree that he or she is not retired from a
959 state-administered retirement system. Any retirement benefits
960 received by a retired member while reemployed during this
961 reemployment limitation period must shall be repaid to the
962 Florida Retirement System Trust Fund, and retirement benefits
963 shall remain suspended until such repayment is has been made.
964 Benefits suspended beyond the reemployment limitation shall
965 apply toward repayment of benefits received in violation of the
966 reemployment limitation.
967 3. A district school board may reemploy a retired member as
968 a substitute or hourly teacher or an, education
969 paraprofessional, as defined in s. 1012.01(2)(e), transportation
970 assistant, bus driver, or food service worker on a
971 noncontractual basis after he or she has been retired and met
972 the definition of termination for 1 calendar month, in
973 accordance with s. 121.021(39). A district school board may
974 reemploy a retired member as instructional personnel, as defined
975 in s. 1012.01(2)(a), on an annual contractual basis after he or
976 she has met the definition of termination been retired for 1
977 calendar month, in accordance with s. 121.021(39). Any other
978 retired member who is reemployed before meeting the definition
979 of termination voids within 1 calendar month after retirement
980 shall void his or her application for retirement benefits. A
981 district school board that reemploys boards reemploying such
982 teachers or, education paraprofessionals is, transportation
983 assistants, bus drivers, or food service workers are subject to
984 the retirement contribution required by subparagraph 9. 7.
985 4. A community college board of trustees may reemploy a
986 retired member as an adjunct instructor, that is, an instructor
987 who is noncontractual and part-time, or as a participant in a
988 phased retirement program within the Florida Community College
989 System, after he or she has been retired and met the definition
990 of termination for 1 calendar month, in accordance with s.
991 121.021(39). Any retired member who is reemployed within 12 1
992 calendar months month after retirement voids shall void his or
993 her application for retirement benefits. A board Boards of
994 trustees that reemploys reemploying such instructors is are
995 subject to the retirement contribution required in subparagraph
996 9. 7. A retired member may be reemployed as an adjunct
997 instructor for no more than 780 hours during the first 12
998 calendar months after meeting the definition of termination
999 retirement. Any retired member reemployed for more than 780
1000 hours during the first 12 months of the limitation period must
1001 retirement shall give timely notice in writing to the employer
1002 and to the Division of Retirement of the date he or she will
1003 exceed the limitation. The division shall suspend his or her
1004 retirement benefits for the remainder of the 12-month limitation
1005 period first 12 months of retirement. Any person employed in
1006 violation of this subparagraph and any employing agency that
1007 which knowingly employs or appoints such person without
1008 notifying the division of Retirement to suspend retirement
1009 benefits are shall be jointly and severally liable for
1010 reimbursement to the retirement trust fund of any benefits paid
1011 during the reemployment limitation period. To avoid liability,
1012 the such employing agency must shall have a written statement
1013 from the retiree that he or she is not retired from a state
1014 administered retirement system. Any retirement benefits received
1015 by a retired member while reemployed in excess of 780 hours
1016 during the 12-month limitation period must first 12 months of
1017 retirement shall be repaid to the Florida Retirement System
1018 Trust Fund, and retirement benefits shall remain suspended until
1019 repayment is made. Benefits suspended beyond the end of the 12
1020 month limitation period retired member’s first 12 months of
1021 retirement shall apply toward repayment of benefits received in
1022 violation of the 780-hour reemployment limitation.
1023 5. The State University System may reemploy a retired
1024 member as an adjunct faculty member or as a participant in a
1025 phased retirement program within the State University System
1026 after the retired member has met the definition of termination
1027 been retired for 1 calendar month, in accordance with s.
1028 121.021(39). Any retired member who is reemployed before meeting
1029 the definition of termination voids within 1 calendar month
1030 after retirement shall void his or her application for
1031 retirement benefits. The State University System is subject to
1032 the retired contribution required in subparagraph 9. 7., as
1033 appropriate. A retired member may be reemployed as an adjunct
1034 faculty member or a participant in a phased retirement program
1035 for no more than 780 hours during the first 12 calendar months
1036 after meeting the definition of termination of his or her
1037 retirement. Any retired member reemployed for more than 780
1038 hours during the 12-month limitation period must first 12 months
1039 of retirement shall give timely notice in writing to the
1040 employer and to the Division of Retirement of the date he or she
1041 will exceed the limitation. The division shall suspend his or
1042 her retirement benefits for the remainder of the 12-month
1043 limitation period first 12 months of retirement. Any person
1044 employed in violation of this subparagraph and any employing
1045 agency that which knowingly employs or appoints such person
1046 without notifying the division of Retirement to suspend
1047 retirement benefits are shall be jointly and severally liable
1048 for reimbursement to the retirement trust fund of any benefits
1049 paid during the reemployment limitation period. To avoid
1050 liability, such employing agency must shall have a written
1051 statement from the retiree that he or she is not retired from a
1052 state-administered retirement system. Any retirement benefits
1053 received by a retired member while reemployed in excess of 780
1054 hours during the first 12 months of retirement must shall be
1055 repaid to the Florida Retirement System Trust Fund, and
1056 retirement benefits shall remain suspended until repayment is
1057 made. Benefits suspended beyond the end of the retired member’s
1058 12-month limitation period first 12 months of retirement shall
1059 apply toward repayment of benefits received in violation of the
1060 780-hour reemployment limitation.
1061 6. The Board of Trustees of the Florida School for the Deaf
1062 and the Blind may reemploy a retired member as a substitute
1063 teacher, substitute residential instructor, or substitute nurse
1064 on a noncontractual basis after he or she has met the definition
1065 of termination been retired for 1 calendar month, in accordance
1066 with s. 121.021(39). The Board of Trustees of the Florida School
1067 for the Deaf and the Blind may reemploy a retired member as
1068 instructional personnel, as defined in s. 1012.01(2)(a), on an
1069 annual contractual basis after he or she has been retired and
1070 met the definition of termination in s. 121.021(39). Any retired
1071 member who is reemployed before meeting the definition of
1072 termination voids within 1 calendar month after retirement shall
1073 void his or her application for retirement benefits. The Board
1074 of Trustees of the Florida School for the Deaf and the Blind
1075 reemploying such teachers, residential instructors, or nurses is
1076 subject to the retirement contribution required by subparagraph
1077 9. 7. Reemployment of a retired member as a substitute teacher,
1078 substitute residential instructor, or substitute nurse is
1079 limited to 780 hours during the first 12 months of his or her
1080 retirement. Any retired member reemployed for more than 780
1081 hours during the first 12 months of retirement shall give timely
1082 notice in writing to the employer and to the division of the
1083 date he or she will exceed the limitation. The division shall
1084 suspend his or her retirement benefits for the remainder of the
1085 first 12 months of retirement. Any person employed in violation
1086 of this subparagraph and any employing agency which knowingly
1087 employs or appoints such person without notifying the Division
1088 of Retirement to suspend retirement benefits shall be jointly
1089 and severally liable for reimbursement to the retirement trust
1090 fund of any benefits paid during the reemployment limitation
1091 period. To avoid liability, such employing agency shall have a
1092 written statement from the retiree that he or she is not retired
1093 from a state-administered retirement system. Any retirement
1094 benefits received by a retired member while reemployed in excess
1095 of 780 hours during the first 12 months of retirement shall be
1096 repaid to the Retirement System Trust Fund, and his or her
1097 retirement benefits shall remain suspended until payment is
1098 made. Benefits suspended beyond the end of the retired member’s
1099 first 12 months of retirement shall apply toward repayment of
1100 benefits received in violation of the 780-hour reemployment
1101 limitation.
1102 7. A developmental research school may reemploy a retired
1103 member as a substitute or hourly teacher or an education
1104 paraprofessional, as defined in s. 1012.01(2)(e), on a
1105 noncontractual basis after he or she has been retired and met
1106 the definition of termination in s. 121.021(39). A developmental
1107 research school may reemploy a retired member as instructional
1108 personnel, as defined in s. 1012.01(2)(a), on an annual
1109 contractual basis after he or she has been retired and met the
1110 definition of termination in s. 121.021(39). Any other retired
1111 member who is reemployed within 12 calendar months after
1112 retirement voids his or her application for retirement benefits.
1113 A developmental research school that reemploys retired teachers
1114 and education paraprofessionals is subject to the retirement
1115 contribution required by subparagraph 9.
1116 8. A charter school may reemploy a retired member as a
1117 substitute or hourly teacher on a noncontractual basis after he
1118 or she has been retired and met the definition of termination in
1119 s. 121.021(39). A charter school may reemploy a retired member
1120 as instructional personnel, as defined in s. 1012.01(2)(a), on
1121 an annual contractual basis after he or she has been retired and
1122 met the definition of termination in s. 121.021(39). Any other
1123 retired member who is reemployed within 12 calendar months after
1124 retirement voids his or her application for retirement benefits.
1125 A charter school that reemploys such members is subject to the
1126 retirement contribution required by subparagraph 9.
1127 9.a.7. The employment by an employer of a any retiree or
1128 DROP participant of a any state-administered retirement system
1129 does not affect shall have no effect on the average final
1130 compensation or years of creditable service of the retiree or
1131 DROP participant.
1132 b. Prior to July 1, 1991, upon employment of any person,
1133 other than an elected officer as provided in s. 121.053, who is
1134 has been retired under a any state-administered retirement
1135 program, the employer shall pay retirement contributions in an
1136 amount equal to the unfunded actuarial liability portion of the
1137 employer contribution which would be required for regular
1138 members of the Florida Retirement System. Effective July 1,
1139 1991, contributions shall be made as provided in s. 121.122 for
1140 retirees who have with renewed membership or as provided in
1141 subsection (13) for with respect to DROP participants.
1142 c. Any person who is retired under a state-administered
1143 retirement program and who is initially reemployed on or after
1144 January 1, 2010, may not renew membership in the Florida
1145 Retirement System. The employer shall pay retirement
1146 contributions in an amount equal to the unfunded actuarial
1147 liability portion of the employer contribution that would be
1148 required for active members of the Florida Retirement System in
1149 addition to the contributions required by s. 121.76.
1150 10.a.8. Any person who has previously retired and who is
1151 holding an elective public office or an appointment to an
1152 elective public office eligible for the Elected Officers’ Class
1153 on or after July 1, 1990, through December 31, 2009, shall be
1154 enrolled in the Florida Retirement System as provided in s.
1155 121.053(1)(c)(b) or, if holding an elective public office that
1156 does not qualify for the Elected Officers’ Class on or after
1157 July 1, 1991, through December 31, 2009, shall be enrolled in
1158 the Florida Retirement System as provided in s. 121.122, and
1159 shall continue to receive retirement benefits as well as
1160 compensation for the elected officer’s service for as long as he
1161 or she remains in elective office. However, any retired member
1162 who served in an elective office prior to July 1, 1990,
1163 suspended his or her retirement benefit, and had his or her
1164 Florida Retirement System membership reinstated shall, upon
1165 retirement from such office, have his or her retirement benefit
1166 recalculated to include the additional service and compensation
1167 earned.
1168 b. Any person who has retired and who is holding an
1169 elective public office or an appointment to an elective public
1170 office initially eligible for the Elected Officers’ Class on or
1171 after January 1, 2010, shall not be enrolled in the Florida
1172 Retirement System as provided in s. 121.053(1)(c) or, if holding
1173 an elective public office that does not qualify for the Elected
1174 Officers’ Class and is initially eligible on or after January 1,
1175 2010, shall not be enrolled in the Florida Retirement System as
1176 provided in s. 121.122, and shall not continue to receive
1177 retirement benefits during the first 12 calendar months after
1178 meeting the definition of termination in s. 121.021(39).
1179 11.9. Any person who is holding an elective public office
1180 which is covered by the Florida Retirement System and who is
1181 concurrently employed in nonelected covered employment may elect
1182 to retire while continuing employment in the elective public
1183 office if, provided that he or she terminates shall be required
1184 to terminate his or her nonelected covered employment. Any
1185 person who exercises this election shall receive his or her
1186 retirement benefits in addition to the compensation of the
1187 elective office without regard to the time limitations otherwise
1188 provided in this subsection. A No person who seeks to exercise
1189 the provisions of this subparagraph, as they the same existed
1190 prior to May 3, 1984, may not shall be deemed to be retired
1191 under those provisions, unless such person is eligible to retire
1192 under the provisions of this subparagraph, as amended by chapter
1193 84-11, Laws of Florida.
1194 12. The limitations of this paragraph apply to reemployment
1195 in any capacity with an employer irrespective of the category of
1196 funds from which the person is compensated.
1197 13. The provisions of this paragraph regarding reemployment
1198 after retirement apply to DROP participants effective upon
1199 termination from employment and the end of DROP participation.
1200 10. The limitations of this paragraph apply to reemployment
1201 in any capacity with an “employer” as defined in s. 121.021(10),
1202 irrespective of the category of funds from which the person is
1203 compensated.
1204 11. An employing agency may reemploy a retired member as a
1205 firefighter or paramedic after the retired member has been
1206 retired for 1 calendar month, in accordance with s. 121.021(39).
1207 Any retired member who is reemployed within 1 calendar month
1208 after retirement shall void his or her application for
1209 retirement benefits. The employing agency reemploying such
1210 firefighter or paramedic is subject to the retired contribution
1211 required in subparagraph 8. Reemployment of a retired
1212 firefighter or paramedic is limited to no more than 780 hours
1213 during the first 12 months of his or her retirement. Any retired
1214 member reemployed for more than 780 hours during the first 12
1215 months of retirement shall give timely notice in writing to the
1216 employer and to the division of the date he or she will exceed
1217 the limitation. The division shall suspend his or her retirement
1218 benefits for the remainder of the first 12 months of retirement.
1219 Any person employed in violation of this subparagraph and any
1220 employing agency which knowingly employs or appoints such person
1221 without notifying the Division of Retirement to suspend
1222 retirement benefits shall be jointly and severally liable for
1223 reimbursement to the Retirement System Trust Fund of any
1224 benefits paid during the reemployment limitation period. To
1225 avoid liability, such employing agency shall have a written
1226 statement from the retiree that he or she is not retired from a
1227 state-administered retirement system. Any retirement benefits
1228 received by a retired member while reemployed in excess of 780
1229 hours during the first 12 months of retirement shall be repaid
1230 to the Retirement System Trust Fund, and retirement benefits
1231 shall remain suspended until repayment is made. Benefits
1232 suspended beyond the end of the retired member’s first 12 months
1233 of retirement shall apply toward repayment of benefits received
1234 in violation of the 780-hour reemployment limitation.
1235 (c) The provisions of this subsection apply to retirees, as
1236 defined in s. 121.4501(2)(j), of the Public Employee Optional
1237 Retirement Program created in part II, subject to the following
1238 conditions:
1239 1. Such retirees may not be reemployed with an employer
1240 participating in the Florida Retirement System as provided in
1241 paragraph (b) until such person has been retired for 12 3
1242 calendar months, unless the participant has reached the normal
1243 retirement requirements of the defined benefit plan as provided
1244 in s. 121.021(29).
1245 2. Such retiree employed in violation of this subsection
1246 and any employing agency that knowingly employs or appoints such
1247 person shall be jointly and severally liable for reimbursement
1248 of any benefits paid to the retirement trust fund from which the
1249 benefits were paid, including the Florida Retirement System
1250 Trust Fund and the Public Employee Optional Retirement Program
1251 Trust Fund, as appropriate. To avoid liability, such employing
1252 agency must have a written statement from the retiree that he or
1253 she is not retired from a state-administered retirement system.
1254 (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
1255 subject to the provisions of this section, the Deferred
1256 Retirement Option Program, hereinafter referred to as the DROP,
1257 is a program under which an eligible member of the Florida
1258 Retirement System may elect to participate, deferring receipt of
1259 retirement benefits while continuing employment with his or her
1260 Florida Retirement System employer. The deferred monthly
1261 benefits shall accrue in the Florida Retirement System Trust
1262 Fund on behalf of the participant, plus interest compounded
1263 monthly, for the specified period of the DROP participation, as
1264 provided in paragraph (c). Upon termination of employment, the
1265 participant shall receive the total DROP benefits and begin to
1266 receive the previously determined normal retirement benefits.
1267 Participation in the DROP does not guarantee employment for the
1268 specified period of DROP. Participation in the DROP by an
1269 eligible member beyond the initial 60-month period as authorized
1270 in this subsection shall be on an annual contractual basis for
1271 all participants.
1272 (a) Eligibility of member to participate in the DROP.—All
1273 active Florida Retirement System members in a regularly
1274 established position, and all active members of either the
1275 Teachers’ Retirement System established in chapter 238 or the
1276 State and County Officers’ and Employees’ Retirement System
1277 established in chapter 122, which systems are consolidated
1278 within the Florida Retirement System under s. 121.011, are
1279 eligible to elect participation in the DROP if provided that:
1280 1. The member is not a renewed member of the Florida
1281 Retirement System under s. 121.122, or a member of the State
1282 Community College System Optional Retirement Program under s.
1283 121.051, the Senior Management Service Optional Annuity Program
1284 under s. 121.055, or the optional retirement program for the
1285 State University System under s. 121.35.
1286 2. Except as provided in subparagraph 6., election to
1287 participate is made within 12 months immediately following the
1288 date on which the member first reaches normal retirement date,
1289 or, for a member who reaches normal retirement date based on
1290 service before he or she reaches age 62, or age 55 for Special
1291 Risk Class members, election to participate may be deferred to
1292 the 12 months immediately following the date the member attains
1293 57, or age 52 for Special Risk Class members. A member who
1294 delays DROP participation during the 12-month period immediately
1295 following his or her maximum DROP deferral date, except as
1296 provided in subparagraph 6., loses a month of DROP participation
1297 for each month delayed. For a member who first reached normal
1298 retirement date or the deferred eligibility date described above
1299 prior to the effective date of this section, election to
1300 participate shall be made within 12 months after the effective
1301 date of this section. A member who fails to make an election
1302 within the such 12-month limitation period forfeits shall
1303 forfeit all rights to participate in the DROP. The member shall
1304 advise his or her employer and the division in writing of the
1305 date on which the DROP begins shall begin. The Such beginning
1306 date may be subsequent to the 12-month election period, but must
1307 be within the original 60-month participation or, with respect
1308 to members who are instructional personnel employed by the
1309 Florida School for the Deaf and the Blind and who have received
1310 authorization by the Board of Trustees of the Florida School for
1311 the Deaf and the Blind to participate in the DROP beyond 60
1312 months, or who are instructional personnel as defined in s.
1313 1012.01(2)(a)-(d) in grades K-12 and who have received
1314 authorization by the district school superintendent to
1315 participate in the DROP beyond 60 months, the 96-month
1316 limitation period as provided in subparagraph (b)1. When
1317 establishing eligibility of the member to participate in the
1318 DROP for the 60-month or, with respect to members who are
1319 instructional personnel employed by the Florida School for the
1320 Deaf and the Blind and who have received authorization by the
1321 Board of Trustees of the Florida School for the Deaf and the
1322 Blind to participate in the DROP beyond 60 months, or who are
1323 instructional personnel as defined in s. 1012.01(2)(a)-(d) in
1324 grades K-12 and who have received authorization by the district
1325 school superintendent to participate in the DROP beyond 60
1326 months, the 96-month maximum participation period, the member
1327 may elect to include or exclude any optional service credit
1328 purchased by the member from the total service used to establish
1329 the normal retirement date. A member who has with dual normal
1330 retirement dates is shall be eligible to elect to participate in
1331 DROP within 12 months after attaining normal retirement date in
1332 either class.
1333 3. The employer of a member electing to participate in the
1334 DROP, or employers if dually employed, shall acknowledge in
1335 writing to the division the date the member’s participation in
1336 the DROP begins and the date the member’s employment and DROP
1337 participation will terminate.
1338 4. Simultaneous employment of a participant by additional
1339 Florida Retirement System employers subsequent to the
1340 commencement of participation in the DROP is shall be
1341 permissible if provided such employers acknowledge in writing a
1342 DROP termination date no later than the participant’s existing
1343 termination date or the maximum participation 60-month
1344 limitation period as provided in subparagraph (b)1.
1345 5. A DROP participant may change employers while
1346 participating in the DROP, subject to the following:
1347 a. A change of employment must take place without a break
1348 in service so that the member receives salary for each month of
1349 continuous DROP participation. If a member receives no salary
1350 during a month, DROP participation shall cease unless the
1351 employer verifies a continuation of the employment relationship
1352 for such participant pursuant to s. 121.021(39)(b).
1353 b. Such participant and new employer shall notify the
1354 division of the identity of the new employer on forms required
1355 by the division as to the identity of the new employer.
1356 c. The new employer shall acknowledge, in writing, the
1357 participant’s DROP termination date, which may be extended but
1358 not beyond the maximum participation original 60-month or, with
1359 respect to members who are instructional personnel employed by
1360 the Florida School for the Deaf and the Blind and who have
1361 received authorization by the Board of Trustees of the Florida
1362 School for the Deaf and the Blind to participate in the DROP
1363 beyond 60 months, or who are instructional personnel as defined
1364 in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
1365 authorization by the district school superintendent to
1366 participate in the DROP beyond 60 months, the 96-month period
1367 provided in subparagraph (b)1., shall acknowledge liability for
1368 any additional retirement contributions and interest required if
1369 the participant fails to timely terminate employment, and is
1370 shall be subject to the adjustment required in sub-subparagraph
1371 (c)5.d.
1372 6. Effective July 1, 2001, for instructional personnel as
1373 defined in s. 1012.01(2), election to participate in the DROP
1374 may shall be made at any time following the date on which the
1375 member first reaches normal retirement date. The member shall
1376 advise his or her employer and the division in writing of the
1377 date on which DROP begins the Deferred Retirement Option Program
1378 shall begin. When establishing eligibility of the member to
1379 participate in the DROP for the 60-month or, with respect to
1380 members who are instructional personnel employed by the Florida
1381 School for the Deaf and the Blind and who have received
1382 authorization by the Board of Trustees of the Florida School for
1383 the Deaf and the Blind to participate in the DROP beyond 60
1384 months, or who are instructional personnel as defined in s.
1385 1012.01(2)(a)-(d) in grades K-12 and who have received
1386 authorization by the district school superintendent to
1387 participate in the DROP beyond 60 months, the 96-month maximum
1388 participation period, as provided in subparagraph (b)1., the
1389 member may elect to include or exclude any optional service
1390 credit purchased by the member from the total service used to
1391 establish the normal retirement date. A member who has with dual
1392 normal retirement dates is shall be eligible to elect to
1393 participate in either class.
1394 (b) Participation in the DROP.—
1395 1.a. Except as provided in sub-subparagraph b., an eligible
1396 member may elect to participate in the DROP for a period not to
1397 exceed a maximum of 60 calendar months. or, with respect to
1398 b. Members who are instructional personnel employed by the
1399 Florida School for the Deaf and the Blind and authorized who
1400 have received authorization by the Board of Trustees of the
1401 Florida School for the Deaf and the Blind to participate in the
1402 DROP beyond 60 months, or who are instructional personnel as
1403 defined in s. 1012.01(2)(a)-(d) in grades K-12 and authorized
1404 who have received authorization by the district school
1405 superintendent to participate in the DROP beyond 60 calendar
1406 months, or who are instructional personnel as defined in s.
1407 1012.01(2)(a) employed by a developmental research school and
1408 authorized by the school’s director, or if the school has no
1409 director, by the school’s principal, may participate in DROP for
1410 up to 36 calendar months beyond the 60-month period specified in
1411 sub-subparagraph a. 96 calendar months immediately following the
1412 date on which the member first reaches his or her normal
1413 retirement date or the date to which he or she is eligible to
1414 defer his or her election to participate as provided in
1415 subparagraph (a)2. However, a member who has reached normal
1416 retirement date prior to the effective date of the DROP shall be
1417 eligible to participate in the DROP for a period of time not to
1418 exceed 60 calendar months or, with respect to members who are
1419 instructional personnel employed by the Florida School for the
1420 Deaf and the Blind and who have received authorization by the
1421 Board of Trustees of the Florida School for the Deaf and the
1422 Blind to participate in the DROP beyond 60 months, or who are
1423 instructional personnel as defined in s. 1012.01(2)(a)-(d) in
1424 grades K-12 and who have received authorization by the district
1425 school superintendent to participate in the DROP beyond 60
1426 calendar months, 96 calendar months immediately following the
1427 effective date of the DROP, except a member of the Special Risk
1428 Class who has reached normal retirement date prior to the
1429 effective date of the DROP and whose total accrued value exceeds
1430 75 percent of average final compensation as of his or her
1431 effective date of retirement shall be eligible to participate in
1432 the DROP for no more than 36 calendar months immediately
1433 following the effective date of the DROP.
1434 2. Upon deciding to participate in the DROP, the member
1435 shall submit, on forms required by the division:
1436 a. A written election to participate in the DROP;
1437 b. Selection of the DROP participation and termination
1438 dates that, which satisfy the limitations stated in paragraph
1439 (a) and subparagraph 1. The Such termination date must shall be
1440 in a binding letter of resignation to with the employer,
1441 establishing a deferred termination date. The member may change
1442 the termination date within the limitations of subparagraph 1.,
1443 but only with the written approval of the his or her employer;
1444 c. A properly completed DROP application for service
1445 retirement as provided in this section; and
1446 d. Any other information required by the division.
1447 3. The DROP participant is shall be a retiree under the
1448 Florida Retirement System for all purposes, except for paragraph
1449 (5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
1450 and 121.122. DROP participation is final and cannot be canceled
1451 by the participant after the first payment is credited during
1452 the DROP participation period. However, participation in the
1453 DROP does not alter the participant’s employment status, and the
1454 member is such employee shall not be deemed retired from
1455 employment until his or her deferred resignation is effective
1456 and termination occurs as provided in s. 121.021(39).
1457 4. Elected officers are shall be eligible to participate in
1458 the DROP subject to the following:
1459 a. An elected officer who reaches normal retirement date
1460 during a term of office may defer the election to participate in
1461 the DROP until the next succeeding term in that office. An Such
1462 elected officer who exercises this option may participate in the
1463 DROP for up to 60 calendar months or a period of no longer than
1464 the such succeeding term of office, whichever is less.
1465 b. An elected or a nonelected participant may run for a
1466 term of office while participating in DROP and, if elected,
1467 extend the DROP termination date accordingly;, except, however,
1468 if such additional term of office exceeds the 60-month
1469 limitation established in subparagraph 1., and the officer does
1470 not resign from office within such 60-month limitation, the
1471 retirement and the participant’s DROP is shall be null and void
1472 as provided in sub-subparagraph (c)5.d.
1473 c.(I) For DROP participation ending before January 1, 2010,
1474 an elected officer who is dually employed and elects to
1475 participate in DROP must meet shall be required to satisfy the
1476 definition of termination in s. 121.021(39) within the original
1477 60-month period or maximum participation, with respect to
1478 members who are instructional personnel employed by the Florida
1479 School for the Deaf and the Blind and who have received
1480 authorization by the Board of Trustees of the Florida School for
1481 the Deaf and the Blind to participate in the DROP beyond 60
1482 months, or who are instructional personnel as defined in s.
1483 1012.01(2)(a)-(d) in grades K-12 and who have received
1484 authorization by the district school superintendent to
1485 participate in the DROP beyond 60 months, the 96-month
1486 limitation period as provided in subparagraph 1. for the
1487 nonelected position and may continue employment as an elected
1488 officer as provided in s. 121.053. The elected officer shall
1489 will be enrolled as a renewed member in the Elected Officers’
1490 Class or the Regular Class, as provided in ss. 121.053 and
1491 121.122, on the first day of the month after termination of
1492 employment in the nonelected position and termination of DROP.
1493 Distribution of the DROP benefits shall be made as provided in
1494 paragraph (c).
1495 (II) For DROP participation ending on or after January 1,
1496 2010, an elected officer who is dually employed and elects to
1497 participate in DROP must meet the definition of termination in
1498 s. 121.021(39) within the original 60-month period or maximum
1499 participation period as provided in subparagraph 1.
1500 (c) Benefits payable under the DROP.—
1501 1. Effective on with the date of DROP participation, the
1502 member’s initial normal monthly benefit, including creditable
1503 service, optional form of payment, and average final
1504 compensation, and the effective date of retirement are shall be
1505 fixed. The beneficiary established under the Florida Retirement
1506 System shall be the beneficiary eligible to receive any DROP
1507 benefits payable if the DROP participant dies prior to the
1508 completion of the period of DROP participation. If In the event
1509 a joint annuitant predeceases the member, the member may name a
1510 beneficiary to receive accumulated DROP benefits payable. The
1511 Such retirement benefit, the annual cost of living adjustments
1512 provided in s. 121.101, and interest shall accrue monthly in the
1513 Florida Retirement System Trust Fund. The Such interest shall
1514 accrue at an effective annual rate of 6.5 percent compounded
1515 monthly, on the prior month’s accumulated ending balance, up to
1516 the month of termination or death.
1517 2. Each employee who elects to participate in the DROP may
1518 shall be allowed to elect to receive a lump-sum payment for
1519 accrued annual leave earned in accordance with agency policy
1520 upon beginning participation in the DROP. The Such accumulated
1521 leave payment certified to the division upon commencement of
1522 DROP shall be included in the calculation of the member’s
1523 average final compensation. The employee electing the such lump
1524 sum payment is upon beginning participation in DROP will not be
1525 eligible to receive a second lump-sum payment upon termination,
1526 except to the extent the employee has earned additional annual
1527 leave which, combined with the original payment, does not exceed
1528 the maximum lump-sum payment allowed by the employing agency’s
1529 policy or rules. An Such early lump-sum payment shall be based
1530 on the hourly wage of the employee at the time he or she begins
1531 participation in the DROP. If the member elects to wait and
1532 receive a such lump-sum payment upon termination of DROP and
1533 termination of employment with the employer, any accumulated
1534 leave payment made at that time may not cannot be included in
1535 the member’s retirement benefit, which was determined and fixed
1536 by law when the employee elected to participate in the DROP.
1537 3. The effective date of DROP participation and the
1538 effective date of retirement of a DROP participant shall be the
1539 first day of the month selected by the member to begin
1540 participation in the DROP, provided such date is properly
1541 established, with the written confirmation of the employer, and
1542 the approval of the division, on forms required by the division.
1543 4. Normal retirement benefits and any interest thereon
1544 shall continue to accrue in the DROP until the established
1545 termination date of the DROP, or until the participant
1546 terminates employment or dies prior to such date. Although
1547 individual DROP accounts shall not be established, a separate
1548 accounting of each participant’s accrued benefits under the DROP
1549 shall be calculated and provided to participants.
1550 5. At the conclusion of the participant’s DROP, the
1551 division shall distribute the participant’s total accumulated
1552 DROP benefits, subject to the following provisions:
1553 a. The division shall receive verification by the
1554 participant’s employer or employers that the such participant
1555 has terminated employment as provided in s. 121.021(39)(b).
1556 b. The terminated DROP participant or, if deceased, the
1557 such participant’s named beneficiary, shall elect on forms
1558 provided by the division to receive payment of the DROP benefits
1559 in accordance with one of the options listed below. If For a
1560 participant or beneficiary who fails to elect a method of
1561 payment within 60 days after of termination of the DROP, the
1562 division shall will pay a lump sum as provided in sub-sub
1563 subparagraph (I).
1564 (I) Lump sum.—All accrued DROP benefits, plus interest,
1565 less withholding taxes remitted to the Internal Revenue Service,
1566 shall be paid to the DROP participant or surviving beneficiary.
1567 (II) Direct rollover.—All accrued DROP benefits, plus
1568 interest, shall be paid from the DROP directly to the custodian
1569 of an eligible retirement plan as defined in s. 402(c)(8)(B) of
1570 the Internal Revenue Code. However, in the case of an eligible
1571 rollover distribution to the surviving spouse of a deceased
1572 participant, an eligible retirement plan is an individual
1573 retirement account or an individual retirement annuity as
1574 described in s. 402(c)(9) of the Internal Revenue Code.
1575 (III) Partial lump sum.—A portion of the accrued DROP
1576 benefits shall be paid to the DROP participant or surviving
1577 spouse, less withholding taxes remitted to the Internal Revenue
1578 Service, and the remaining DROP benefits shall be transferred
1579 directly to the custodian of an eligible retirement plan as
1580 defined in s. 402(c)(8)(B) of the Internal Revenue Code.
1581 However, in the case of an eligible rollover distribution to the
1582 surviving spouse of a deceased participant, an eligible
1583 retirement plan is an individual retirement account or an
1584 individual retirement annuity as described in s. 402(c)(9) of
1585 the Internal Revenue Code. The proportions shall be specified by
1586 the DROP participant or surviving beneficiary.
1587 c. The form of payment selected by the DROP participant or
1588 surviving beneficiary must comply complies with the minimum
1589 distribution requirements of the Internal Revenue Code.
1590 d. A DROP participant who fails to terminate employment as
1591 defined in s. 121.021(39)(b) shall be deemed as not to be
1592 retired, and the DROP election is shall be null and void.
1593 Florida Retirement System membership shall be reestablished
1594 retroactively to the date of the commencement of the DROP, and
1595 each employer with whom the participant continues employment
1596 must shall be required to pay to the Florida Retirement System
1597 Trust Fund the difference between the DROP contributions paid in
1598 paragraph (h) (i) and the contributions required for the
1599 applicable Florida Retirement System class of membership during
1600 the period the member participated in the DROP, plus 6.5 percent
1601 interest compounded annually.
1602 6. The retirement benefits of any DROP participant who
1603 meets the definition of termination in s. 121.021(39)(b) but is
1604 in violation of the reemployment provisions as provided in
1605 subsection (9) shall be suspended during those months in which
1606 the member is in violation. Any member employed in violation of
1607 this subparagraph and any employing agency that employs or
1608 appoints such member without notifying the Division of
1609 Retirement to suspend retirement benefits are jointly and
1610 severally liable for any benefits paid during the reemployment
1611 limitation period. To avoid liability, the employing agency must
1612 have a written statement from the retiree that he or she is not
1613 retired from a state-administered retirement system. Any
1614 retirement benefits received by a retired member while employed
1615 in violation of the reemployment limitations during the first 12
1616 months after meeting termination in s. 121.021(39) must be
1617 repaid to the Florida Retirement System Trust Fund, and his or
1618 her retirement benefits shall remain suspended until payment is
1619 made. Benefits suspended beyond the end of the retired member’s
1620 first 12 calendar months after meeting the definition of
1621 termination in s. 121.021(39)(b) shall apply toward repayment of
1622 benefits received in violation of the reemployment limitation.
1623 7.6. The accrued benefits of any DROP participant, and any
1624 contributions accumulated under the such program, are shall not
1625 be subject to assignment, execution, attachment, or to any legal
1626 process whatsoever, except for qualified domestic relations
1627 orders by a court of competent jurisdiction, income deduction
1628 orders as provided in s. 61.1301, and federal income tax levies.
1629 8.7. DROP participants are shall not be eligible for
1630 disability retirement benefits as provided in subsection (4).
1631 (d) Death benefits under the DROP.—
1632 1. Upon the death of a DROP participant, the named
1633 beneficiary shall be entitled to apply for and receive the
1634 accrued benefits in the DROP as provided in sub-subparagraph
1635 (c)5.b.
1636 2. The normal retirement benefit accrued to the DROP during
1637 the month of a participant’s death shall be the final monthly
1638 benefit credited for such DROP participant.
1639 3. Eligibility to participate in the DROP terminates upon
1640 death of the participant. If the participant dies on or after
1641 the effective date of enrollment in the DROP, but prior to the
1642 first monthly benefit being credited to the DROP, Florida
1643 Retirement System benefits shall be paid in accordance with
1644 subparagraph (7)(c)1. or subparagraph 2.
1645 4. A DROP participant’s participants’ survivors shall not
1646 be eligible to receive Florida Retirement System death benefits
1647 as provided in paragraph (7)(d).
1648 (e) Cost-of-living adjustment.—On each July 1, the
1649 participant’s participants’ normal retirement benefit shall be
1650 increased as provided in s. 121.101.
1651 (f) Retiree health insurance subsidy.—DROP participants are
1652 not eligible to apply for the retiree health insurance subsidy
1653 payments as provided in s. 112.363 until such participants have
1654 terminated employment and participation in the DROP.
1655 (g) Renewed membership.—DROP participants shall not be
1656 eligible for renewed membership in the Florida Retirement System
1657 under ss. 121.053 and 121.122 until termination of employment is
1658 effectuated as provided in s. 121.021(39)(b).
1659 (g)(h) Employment limitation after DROP participation.—Upon
1660 satisfying the definition of termination of employment as
1661 provided in s. 121.021(39)(b), DROP participants shall be
1662 subject to such reemployment limitations as other retirees.
1663 Reemployment restrictions applicable to retirees as provided in
1664 subsection (9) shall not apply to DROP participants until their
1665 employment and participation in the DROP are terminated.
1666 (h)(i) Contributions.—
1667 1. All employers paying the salary of a DROP participant
1668 filling a regularly established position shall contribute 8.0
1669 percent of such participant’s gross compensation for the period
1670 of July 1, 2002, through June 30, 2003, and the percentage 11.56
1671 percent of such compensation required by s. 121.71 thereafter,
1672 which shall constitute the entire employer DROP contribution
1673 with respect to such participant. Such contributions, payable to
1674 the Florida Retirement System Trust Fund in the same manner as
1675 required in s. 121.071, shall be made as appropriate for each
1676 pay period and are in addition to contributions required for
1677 social security and the Retiree Health Insurance Subsidy Trust
1678 Fund. Such employer, social security, and health insurance
1679 subsidy contributions are not included in the DROP.
1680 2. The employer shall, in addition to subparagraph 1., also
1681 withhold one-half of the entire social security contribution
1682 required for the participant. Contributions for social security
1683 by each participant and each employer, in the amount required
1684 for social security coverage as now or hereafter provided by the
1685 federal Social Security Act, shall be in addition to
1686 contributions specified in subparagraph 1.
1687 3. All employers paying the salary of a DROP participant
1688 filling a regularly established position shall contribute the
1689 percent of such participant’s gross compensation required in s.
1690 121.071(4), which shall constitute the employer’s health
1691 insurance subsidy contribution with respect to such participant.
1692 Such contributions shall be deposited by the administrator in
1693 the Retiree Health Insurance Subsidy Trust Fund.
1694 (i)(j) Forfeiture of retirement benefits.—Nothing in this
1695 section shall be construed to remove DROP participants from the
1696 scope of s. 8(d), Art. II of the State Constitution, s.
1697 112.3173, and paragraph (5)(f). DROP participants who commit a
1698 specified felony offense while employed will be subject to
1699 forfeiture of all retirement benefits, including DROP benefits,
1700 pursuant to those provisions of law.
1701 (j)(k) Administration of program.—The division shall make
1702 such rules as are necessary for the effective and efficient
1703 administration of this subsection. The division shall not be
1704 required to advise members of the federal tax consequences of an
1705 election related to the DROP but may advise members to seek
1706 independent advice.
1707 (14) PAYMENT OF BENEFITS.—This subsection applies to the
1708 payment of benefits to a payee (retiree or beneficiary) under
1709 the Florida Retirement System:
1710 (a) Federal income tax shall be withheld in accordance with
1711 federal law, unless the payee elects otherwise on Form W-4P. The
1712 division shall prepare and distribute to each recipient of
1713 monthly retirement benefits an appropriate income tax form that
1714 reflects the recipient’s income and federal income tax withheld
1715 for the calendar year just ended.
1716 (b) Subject to approval by the division in accordance with
1717 rule 60S-4.015, Florida Administrative Code, a payee receiving
1718 retirement benefits under the Florida Retirement system may also
1719 have the following payments deducted from his or her monthly
1720 benefit:
1721 1. Premiums for life and health-related insurance policies
1722 from approved companies.
1723 2. Life insurance premiums for the State Group Life
1724 Insurance Plan, if authorized in writing by the payee and by the
1725 department of Management Services.
1726 3. Repayment of overpayments from the Florida Retirement
1727 System Trust Fund, the State Employees’ Health Insurance Trust
1728 Fund, or the State Employees’ Life Insurance Trust Fund, upon
1729 notification of the payee.
1730 4. Payments to an alternate payee for alimony or, child
1731 support pursuant to an income deduction order under s. 61.1301,
1732 or division of marital assets pursuant to a qualified domestic
1733 relations order under s. 222.21 or an income deduction order
1734 under s. 61.1301.
1735 5. Payments to the Internal Revenue Service for federal
1736 income tax levies, upon notification of the division by the
1737 Internal Revenue Service.
1738 (c) A payee must shall notify the division of any change in
1739 his or her address. The division may suspend benefit payments to
1740 a payee if correspondence sent to the payee’s mailing address is
1741 returned due to an incorrect address. Benefit payments shall be
1742 resumed upon notification to the division of the payee’s new
1743 address.
1744 (d) A payee whose retirement benefits are reduced by the
1745 application of maximum benefit limits under s. 415(b) of the
1746 Internal Revenue Code, as specified in s. 121.30(5), shall have
1747 the portion of his or her calculated benefit in the Florida
1748 Retirement System defined benefit plan which exceeds such
1749 federal limitation paid through the Florida Retirement System
1750 Preservation of Benefits Plan, as provided in s. 121.1001.
1751 (e) The Division of Retirement may issue retirement
1752 benefits payable for division of marital assets pursuant to a
1753 qualified domestic relations order directly to the alternate
1754 payee, any court order to the contrary notwithstanding, in order
1755 to meet Internal Revenue Code requirements.
1756 (f)(e) A No benefit may not be reduced for the purpose of
1757 preserving the member’s eligibility for a federal program.
1758 (g)(f) The division shall adopt rules establishing
1759 procedures for determining that the persons to whom benefits are
1760 being paid are still living. The division shall suspend the
1761 benefits being paid to any payee if when it is unable to contact
1762 such payee and to confirm that he or she is still living.
1763 Section 10. Section 121.1115, Florida Statutes, is amended
1764 to read:
1765 121.1115 Purchase of retirement credit for out-of-state or
1766 and federal service.—Effective January 1, 1995, a member of the
1767 Florida Retirement System may purchase creditable service for
1768 periods of public employment in another state and receive
1769 creditable service for such periods of employment. Service with
1770 the Federal Government, including any active military service,
1771 may be claimed. Upon completion of each year of service earned
1772 under the Florida Retirement System, a member may purchase up to
1773 1 year of retirement credit for his or her out-of-state service,
1774 subject to the following provisions:
1775 (1) LIMITATIONS AND CONDITIONS.—To receive credit for the
1776 out-of-state service:
1777 (a) The out-of-state service being claimed must have been:
1778 1. Performed in a position of employment with the state or
1779 a political subdivision thereof or with the Federal Government;
1780 2. Covered by a retirement or pension plan provided by the
1781 state or political subdivision, or by the Federal Government, as
1782 appropriate; and
1783 3. Performed prior to a period of membership in the Florida
1784 Retirement System.
1785 (b) The member must have completed a minimum of 6 years of
1786 creditable service under the Florida Retirement System,
1787 excluding out-of-state service and in-state service claimed and
1788 purchased under s. 121.1122.
1789 (c) Not more than 5 years of creditable service may be
1790 claimed for creditable service aggregated under the provisions
1791 of this section and s. 121.1122.
1792 (d) The out-of-state service credit claimed under this
1793 section shall be credited only as service in the Regular Class
1794 of membership, and any benefit or pension based thereon is shall
1795 be subject to the limitations and restrictions of s. 112.65.
1796 (e) The member is not eligible for and may not receive a
1797 pension or benefit from a retirement or pension plan based on or
1798 including the out-of-state service. Eligibility for or the
1799 receipt of contributions to a retirement plan made by the
1800 employer on behalf of the employee is considered a benefit.
1801 (f)(e) A member shall be eligible To receive service credit
1802 for out-of-state service performed after leaving the Florida
1803 Retirement System, the member must complete only upon return to
1804 membership and completion of at least 1 year of creditable
1805 service in the Florida Retirement System following the out-of
1806 state service.
1807 (2) COST.—For each year claimed, the member must pay into
1808 the Florida Retirement System Trust Fund an amount equal to 20
1809 percent of the member’s annual compensation for the first full
1810 work year of creditable service earned under the Florida
1811 Retirement System, but not less than $12,000, plus interest at
1812 6.5 percent compounded annually from the date of first annual
1813 salary earned until full payment is made. The employer may pay
1814 all or a portion of the cost of this service credit.
1815 Section 11. Subsection (2) of section 121.1122, Florida
1816 Statutes, is amended to read:
1817 121.1122 Purchase of retirement credit for in-state public
1818 service and in-state service in accredited nonpublic schools and
1819 colleges, including charter schools and charter technical career
1820 centers.—Effective January 1, 1998, a member of the Florida
1821 Retirement System may purchase creditable service for periods of
1822 certain public or nonpublic employment performed in this state,
1823 as provided in this section.
1824 (2) LIMITATIONS AND CONDITIONS.—
1825 (a) A member is not eligible to receive credit for in-state
1826 service under this section until he or she has completed 6 years
1827 of creditable service under the Florida Retirement System,
1828 excluding service purchased under this section and out-of-state
1829 service claimed and purchased under s. 121.1115.
1830 (b) A member may not purchase and receive credit for more
1831 than 5 years of creditable service aggregated under the
1832 provisions of this section and s. 121.1115.
1833 (c) Service credit claimed under this section shall be
1834 credited only as service in the Regular Class of membership and
1835 is shall be subject to the provisions of s. 112.65.
1836 (d) Service credit may not be purchased under this section
1837 if the member is eligible to receive or is receiving a pension
1838 or benefit from a retirement or pension plan based on or
1839 including the service. Eligibility for or the receipt of
1840 contributions to a retirement plan made by the employer on
1841 behalf of the employee is considered a benefit.
1842 (e)(d) A member is shall be eligible to receive service
1843 credit for in-state service performed after leaving the Florida
1844 Retirement System only after upon returning to membership and
1845 completing at least 1 year of creditable service in the Florida
1846 Retirement System following the in-state service.
1847 (f)(e) The service claimed must have been service covered
1848 by a retirement or pension plan provided by the employer.
1849 Section 12. Section 121.122, Florida Statutes, is amended
1850 to read:
1851 121.122 Renewed membership in system.—
1852 (1) Any retiree of a state-administered retirement system
1853 who is initially reemployed on or after January 1, 2010, shall
1854 not be eligible for renewed membership.
1855 (2) Except as provided in s. 121.053, effective July 1,
1856 1991, through December 31, 2009, any retiree of a state
1857 administered retirement system who is initially reemployed
1858 employed in a regularly established position with a covered
1859 employer shall be enrolled as a compulsory member of the Regular
1860 Class of the Florida Retirement System or, effective July 1,
1861 1997, through December 31, 2009, any retiree of a state
1862 administered retirement system who is initially reemployed
1863 employed in a position included in the Senior Management Service
1864 Class shall be enrolled as a compulsory member of the Senior
1865 Management Service Class of the Florida Retirement System as
1866 provided in s. 121.055, and shall be entitled to receive an
1867 additional retirement benefit, subject to the following
1868 conditions:
1869 (1)(a) Such member shall resatisfy the age and service
1870 requirements as provided in this chapter for initial membership
1871 under the system, unless such member elects to participate in
1872 the Senior Management Service Optional Annuity Program in lieu
1873 of the Senior Management Service Class, as provided in s.
1874 121.055(6).
1875 (b) Such member shall not be entitled to disability
1876 benefits as provided in s. 121.091(4).
1877 (c) Such member must meet the reemployment after retirement
1878 limitations as provided in s. 121.091(9), as applicable.
1879 (3)(2) Upon renewed membership or reemployment of a
1880 retiree, the employer of such member shall pay the applicable
1881 employer contributions as required by ss. 121.71, 121.74,
1882 121.76, and 112.363 121.055(3) and 121.071(1)(a) and (4).
1883 (4)(3) The retiree of a state-administered retirement
1884 system who is initially reemployed before January 1, 2010, Such
1885 member shall be entitled to purchase additional retirement
1886 credit in the Regular Class or the Senior Management Service
1887 Class, as applicable, for any postretirement service performed
1888 in a regularly established position as follows:
1889 (a) For regular class service prior to July 1, 1991, by
1890 paying the Regular Class applicable employee and employer
1891 contributions for the period being claimed, plus 4 percent
1892 interest compounded annually from first year of service claimed
1893 until July 1, 1975, and 6.5 percent interest compounded
1894 thereafter, until full payment is made to the Florida Retirement
1895 System Trust Fund; or
1896 (b) For Senior Management Service Class prior to June 1,
1897 1997, as provided in s. 121.055(1)(j).
1898
1899 The contribution for postretirement service between July 1,
1900 1985, and July 1, 1991, for which the reemployed retiree
1901 contribution was paid, shall be the difference between such
1902 contribution and the total applicable contribution for the
1903 period being claimed, plus interest. The employer of such member
1904 may pay the applicable employer contribution in lieu of the
1905 member. If a member does not wish to claim credit for all of the
1906 postretirement service for which he or she is eligible, the
1907 service the member claims must be the most recent service.
1908 (5)(4) No creditable service for which credit was received,
1909 or which remained unclaimed, at retirement may be claimed or
1910 applied toward service credit earned following renewed
1911 membership. However, for retirees initially reemployed before
1912 January 1, 2010, service earned as an elected officer with
1913 renewed membership in the Elected Officers’ Class may be used in
1914 conjunction with creditable service earned under this section,
1915 provided the applicable vesting requirements and other existing
1916 statutory conditions required by this chapter are met.
1917 (6)(5) Notwithstanding any other limitations provided in
1918 this section, a participant of the State University System
1919 Optional Retirement Program, the State Community College
1920 Optional Retirement Program, or the Senior Management Service
1921 Optional Annuity Program who terminated employment and commenced
1922 receiving a distribution an annuity under the provisions of the
1923 optional program, who initially renews membership before January
1924 1, 2010, in the Regular Class as required by this section upon
1925 reemployment after retirement, and who had previously earned
1926 creditable Florida Retirement System service that was not
1927 included in any retirement benefit may include such previous
1928 service toward vesting and service credit in the second career
1929 benefit provided under renewed membership.
1930 (7)(6) Any renewed member who is not receiving the maximum
1931 health insurance subsidy provided in s. 112.363 shall be
1932 entitled to earn additional credit toward the maximum health
1933 insurance subsidy. Any additional subsidy due because of such
1934 additional credit shall be received only at the time of payment
1935 of the second career retirement benefit. In no case shall the
1936 total health insurance subsidy received by a retiree receiving
1937 benefits from initial and renewed membership exceed the maximum
1938 allowed in s. 112.363.
1939 Section 13. Section 121.136, Florida Statutes, is amended
1940 to read:
1941 121.136 Annual benefit statement to members.—In Beginning
1942 January 1, 1993, and each January of each year thereafter, the
1943 department shall provide each active member of the Florida
1944 Retirement System with 5 or more years of creditable service an
1945 annual statement of benefits that provides. Such statement
1946 should provide the member with basic data about the member’s
1947 retirement account. At a minimum Minimally, it must shall
1948 include the member’s retirement plan, accrued service credit the
1949 amount of funds on deposit in the retirement account, and an
1950 estimate of retirement benefits.
1951 Section 14. Section 121.1905, Florida Statutes, is amended
1952 to read:
1953 121.1905 Division of Retirement; creation.—
1954 (1) There is created the Division of Retirement within the
1955 Department of Management Services.
1956 (2) The mission of the Division of Retirement is to provide
1957 quality and cost-effective retirement services as measured by
1958 member satisfaction and by comparison with administrative costs
1959 of comparable retirement systems.
1960 Section 15. Paragraph (a) of subsection (2) of section
1961 121.23, Florida Statutes, is amended to read:
1962 121.23 Disability retirement and special risk membership
1963 applications; Retirement Commission; powers and duties; judicial
1964 review.—The provisions of this section apply to all proceedings
1965 in which the administrator has made a written final decision on
1966 the merits respecting applications for disability retirement,
1967 reexamination of retired members receiving disability benefits,
1968 applications for special risk membership, and reexamination of
1969 special risk members in the Florida Retirement System. The
1970 jurisdiction of the State Retirement Commission under this
1971 section shall be limited to written final decisions of the
1972 administrator on the merits.
1973 (2) A member shall be entitled to a hearing before the
1974 State Retirement Commission pursuant to ss. 120.569 and
1975 120.57(1) on the merits of any written adverse decision of the
1976 administrator, if he or she files with the commission a written
1977 request for such hearing within 21 days after receipt of such
1978 written decision from the administrator. For the purpose of such
1979 hearings, the commission shall be an “agency head” as defined by
1980 s. 120.52.
1981 (a) The commission may shall have the authority to issue
1982 orders as a result of the a hearing that are shall be binding on
1983 all parties to the dispute and. The commission may order any
1984 action that it deems appropriate. Any disability retirement
1985 order of the commission that issued pursuant to this subsection
1986 which sustains the application of the member may include an
1987 amount, to be determined by the commission, for reasonable
1988 attorney’s fees and taxable costs, which shall be calculated in
1989 accordance with the statewide uniform guidelines for taxation of
1990 costs in civil actions. The amount of the attorney’s fees fee
1991 may not exceed 50 percent of the initial yearly benefit awarded
1992 under s. 121.091(4). In cases involving disability retirement,
1993 the State Retirement commission shall require the member to
1994 present substantial competent medical evidence that meets the
1995 requirements of s. 121.091(4)(c)2. and 3., and may require
1996 vocational evidence, before awarding disability retirement
1997 benefits.
1998 Section 16. Paragraph (a) of subsection (1) of section
1999 121.24, Florida Statutes, is amended to read:
2000 121.24 Conduct of commission business; legal and other
2001 assistance; compensation.—
2002 (1) The commission shall conduct its business within the
2003 following guidelines:
2004 (a) For purposes of hearing appeals under s. 121.23, the
2005 commission may meet in panels consisting of no not fewer than
2006 three members. For the purpose of meeting in these panels, a
2007 quorum shall be not fewer than two members. For all other
2008 purposes, A quorum shall consist of three members. The
2009 concurring vote of a majority of the members present is shall be
2010 required to reach a decision, issue orders, and conduct the
2011 business of the commission.
2012 Section 17. Paragraph (h) of subsection (3) and paragraphs
2013 (a) and (e) of subsection (5) of section 121.35, Florida
2014 Statutes, are amended, and paragraph (g) is added to subsection
2015 (5) of that section, to read:
2016 121.35 Optional retirement program for the State University
2017 System.—
2018 (3) ELECTION OF OPTIONAL PROGRAM.—
2019 (h) A participant in the optional retirement program may
2020 not participate in more than one state-administered retirement
2021 system, plan, or class simultaneously. Except as provided in s.
2022 121.052(6)(d), a participant who is or becomes dually employed
2023 in two or more positions covered by the Florida Retirement
2024 System, one of which is eligible for the optional program and
2025 one of which is not, may remain a member of the optional program
2026 and contributions shall be paid as required only on the salary
2027 earned in the position eligible for the optional program during
2028 such period of dual employment; or, within 90 days after
2029 becoming dually employed, he or she may elect membership in the
2030 Regular Class of the Florida Retirement System in lieu of the
2031 optional program and contributions shall be paid as required on
2032 the total salary received for all employment. At retirement, the
2033 average final compensation used to calculate any benefits for
2034 which the member becomes eligible under the Florida Retirement
2035 System shall be based on all salary reported for both positions
2036 during such period of dual employment. When such member ceases
2037 to be dually employed, he or she may, within 90 days, elect to
2038 remain in the Florida Retirement System class for which he or
2039 she is eligible or to again become a participant in the optional
2040 retirement program. Failure to elect membership in the optional
2041 program within 90 days shall result in compulsory membership in
2042 the Florida Retirement System, except that a member filling a
2043 faculty position at under a college with a faculty practice plan
2044 at the University of Florida, or at the medical center at the
2045 University of South Florida, or other state university shall
2046 again participate in the optional retirement program as required
2047 in s. 121.051(1)(a).
2048 (5) BENEFITS.—
2049 (a) Benefits shall be payable under the optional retirement
2050 program only to vested participants in the program, or their
2051 beneficiaries as designated by the participant in the contract
2052 with a provider company, and such benefits shall be paid only by
2053 the designated company in accordance with s. 403(b) of the
2054 Internal Revenue Code and in accordance with the terms of the
2055 annuity contract or contracts applicable to the participant.
2056 Benefits shall accrue in individual accounts that are
2057 participant-directed, portable, and funded by employer
2058 contributions and the earnings thereon. The participant must be
2059 terminated from all employment with all Florida Retirement
2060 System employers, as provided in s. 121.021(39), to begin
2061 receiving the employer-funded benefit. Benefits funded by
2062 employer contributions shall be payable in accordance with the
2063 following terms and conditions:
2064 1. Benefits shall be payable only to a participant, to his
2065 or her beneficiaries, or to his or her estate, as designated by
2066 the participant.
2067 2. Benefits shall be paid by the provider company or
2068 companies in accordance with the law, the provisions of the
2069 contract, and any applicable department board rule or policy.
2070 3. In the event of a participant’s death, moneys
2071 accumulated by, or on behalf of, the participant, less
2072 withholding taxes remitted to the Internal Revenue Service, if
2073 any, shall be distributed to the participant’s designated
2074 beneficiary or beneficiaries, or to the participant’s estate, as
2075 if the participant retired on the date of death, as provided in
2076 paragraph (c). No other death benefits shall be available for
2077 survivors of participants under the optional retirement program
2078 except for such benefits, or coverage for such benefits, as are
2079 separately afforded by the employer, at the employer’s
2080 discretion.
2081 (e) A participant who chooses to receive his or her
2082 benefits upon termination of employment as defined in s.
2083 121.021(39) shall have responsibility to notify the provider
2084 company of the date on which he or she wishes benefits funded by
2085 employer contributions to begin. Benefits may be deferred until
2086 such time as the participant chooses to make such application.
2087 (g) For purposes of this section, “retiree” means a former
2088 participant of the optional retirement program who has
2089 terminated employment and has taken a distribution as provided
2090 in this subsection, except for a mandatory distribution of a de
2091 minimis account authorized by the department.
2092 Section 18. Paragraph (f) of subsection (2) of section
2093 121.4501, Florida Statutes, is amended to read:
2094 121.4501 Public Employee Optional Retirement Program.—
2095 (2) DEFINITIONS.—As used in this part, the term:
2096 (f) “Eligible employee” means an officer or employee, as
2097 defined in s. 121.021(11), who:
2098 1. Is a member of, or is eligible for membership in, the
2099 Florida Retirement System, including any renewed member of the
2100 Florida Retirement System initially enrolled before January 1,
2101 2010; or
2102 2. Participates in, or is eligible to participate in, the
2103 Senior Management Service Optional Annuity Program as
2104 established under s. 121.055(6), the State Community College
2105 System Optional Retirement Program as established under s.
2106 121.051(2)(c), or the State University System Optional
2107 Retirement Program established under s. 121.35.
2108
2109 The term does not include any member participating in the
2110 Deferred Retirement Option Program established under s.
2111 121.091(13), a retiree of a state-administered retirement system
2112 initially reemployed on or after January 1, 2010, or a mandatory
2113 participant of the State University System Optional Retirement
2114 Program established under s. 121.35.
2115 Section 19. Paragraph (b) of subsection (1) of section
2116 121.591, Florida Statutes, is amended to read:
2117 121.591 Benefits payable under the Public Employee Optional
2118 Retirement Program of the Florida Retirement System.—Benefits
2119 may not be paid under this section unless the member has
2120 terminated employment as provided in s. 121.021(39)(a) or is
2121 deceased and a proper application has been filed in the manner
2122 prescribed by the state board or the department. The state board
2123 or department, as appropriate, may cancel an application for
2124 retirement benefits when the member or beneficiary fails to
2125 timely provide the information and documents required by this
2126 chapter and the rules of the state board and department. In
2127 accordance with their respective responsibilities as provided
2128 herein, the State Board of Administration and the Department of
2129 Management Services shall adopt rules establishing procedures
2130 for application for retirement benefits and for the cancellation
2131 of such application when the required information or documents
2132 are not received. The State Board of Administration and the
2133 Department of Management Services, as appropriate, are
2134 authorized to cash out a de minimis account of a participant who
2135 has been terminated from Florida Retirement System covered
2136 employment for a minimum of 6 calendar months. A de minimis
2137 account is an account containing employer contributions and
2138 accumulated earnings of not more than $5,000 made under the
2139 provisions of this chapter. Such cash-out must either be a
2140 complete lump-sum liquidation of the account balance, subject to
2141 the provisions of the Internal Revenue Code, or a lump-sum
2142 direct rollover distribution paid directly to the custodian of
2143 an eligible retirement plan, as defined by the Internal Revenue
2144 Code, on behalf of the participant. If any financial instrument
2145 issued for the payment of retirement benefits under this section
2146 is not presented for payment within 180 days after the last day
2147 of the month in which it was originally issued, the third-party
2148 administrator or other duly authorized agent of the State Board
2149 of Administration shall cancel the instrument and credit the
2150 amount of the instrument to the suspense account of the Public
2151 Employee Optional Retirement Program Trust Fund authorized under
2152 s. 121.4501(6). Any such amounts transferred to the suspense
2153 account are payable upon a proper application, not to include
2154 earnings thereon, as provided in this section, within 10 years
2155 after the last day of the month in which the instrument was
2156 originally issued, after which time such amounts and any
2157 earnings thereon shall be forfeited. Any such forfeited amounts
2158 are assets of the Public Employee Optional Retirement Program
2159 Trust Fund and are not subject to the provisions of chapter 717.
2160 (1) NORMAL BENEFITS.—Under the Public Employee Optional
2161 Retirement Program:
2162 (b) If a participant elects to receive his or her benefits
2163 upon termination of employment as defined in s. 121.021(39), the
2164 participant must submit a written application or an equivalent
2165 form to the third-party administrator indicating his or her
2166 preferred distribution date and selecting an authorized method
2167 of distribution as provided in paragraph (c). The participant
2168 may defer receipt of benefits until he or she chooses to make
2169 such application, subject to federal requirements.
2170 Section 20. Subsection (8) of section 1012.33, Florida
2171 Statutes, is amended to read:
2172 1012.33 Contracts with instructional staff, supervisors,
2173 and school principals.—
2174 (8) Notwithstanding any other provision of law, a retired
2175 any member who has retired may interrupt retirement and be
2176 reemployed in any public school. A Any member so reemployed by
2177 the same district from which he or she retired may be employed
2178 on a probationary contractual basis as provided in subsection
2179 (1); however, no regular retirement employee shall be eligible
2180 to renew membership under a retirement system created by chapter
2181 121 or chapter 238.
2182 Section 21. Sections 121.093, 121.094, and 121.45, Florida
2183 Statutes, are repealed.
2184 Section 22. The Legislature finds that a proper and
2185 legitimate state purpose is served when employees and retirees
2186 of the state and its political subdivisions, as well as the
2187 dependents, survivors, and beneficiaries of such employees and
2188 retirees, are extended the basic protections afforded by
2189 governmental retirement systems that provide fair and adequate
2190 benefits and that are managed, administered, and funded in an
2191 actuarially sound manner as required by s. 14, Art. X of the
2192 State Constitution and part VII of chapter 112, Florida
2193 Statutes. Therefore, the Legislature determines and declares
2194 that the amendment of s. 121.091, Florida Statutes, by this act
2195 fulfills an important state interest.
2196 Section 23. This act shall take effect July 1, 2009.
2197
2198 ================= T I T L E A M E N D M E N T ================
2199 And the title is amended as follows:
2200 Delete everything before the enacting clause
2201 and insert:
2202 A bill to be entitled
2203 An act relating to retirement; amending s. 121.021,
2204 F.S.; redefining the terms “employer,” “officer or
2205 employee,” “past service,” “normal retirement date,”
2206 “termination,” “regularly established position,” and
2207 “temporary position”; defining the terms “state board”
2208 and “trustees”; amending s. 121.031, F.S.; requiring
2209 promotional materials that refer to the Florida
2210 Retirement System to include a disclaimer unless
2211 approval is obtained from the Department of Management
2212 Services or the State Board of Administration;
2213 amending s. 121.051, F.S.; conforming a cross
2214 reference; clarifying when a State Community College
2215 System Optional Retirement Program participant is
2216 considered a retiree; revising provisions relating to
2217 participation in the Florida Retirement System by
2218 certain employers; excluding the participation of
2219 certain entities under a lease agreement; amending s.
2220 121.052, F.S.; revising membership criteria for
2221 members of the Elected Officers’ Class; revising the
2222 dates for when a governing body of a municipality or
2223 special district may elect to designate its elected
2224 positions for inclusion in the Elected Officers’
2225 Class; amending s. 121.053, F.S.; revising provisions
2226 relating to participation in the Elected Officers’
2227 Class for retired members; amending s. 121.055, F.S.;
2228 revising provisions relating to participation in the
2229 Senior Management Service Class; revising benefit
2230 payment procedures for the Senior Management Service
2231 Optional Annuity Program; clarifying when a
2232 participant is considered retired; amending s.
2233 121.071, F.S.; providing an additional mechanism for
2234 the payment of employee contributions to the system;
2235 amending s. 121.081, F.S.; providing for receipt of
2236 credit for past or prior service by charter school and
2237 charter technical career center employees; prohibiting
2238 a member from receiving credit for service covered and
2239 reported by both a public employer and a private
2240 employer; amending s. 121.091, F.S.; revising and
2241 clarifying provisions relating to retirement benefits;
2242 revising positions in which retired members may be
2243 reemployed by a district school board; deleting a
2244 restriction on the reemployment of certain personnel
2245 by the Florida School for the Deaf and the Blind;
2246 authorizing developmental research schools and charter
2247 schools to reemploy certain retired members under
2248 specified conditions; revising limitations on the
2249 payment of retirement benefits for certain retired
2250 persons who are reemployed by an employer
2251 participating in a state-administered retirement
2252 program; prohibiting certain persons holding public
2253 office from enrolling in the Florida Retirement
2254 System; deleting a provision authorizing an employing
2255 agency to reemploy a retired member as a firefighter
2256 or paramedic after a specified period; providing
2257 applicability; providing that certain members who
2258 delay DROP participation lose a month of DROP
2259 participation for each month delayed; clarifying that
2260 DROP participation cannot be canceled; clarifying
2261 maximum DROP participation; providing for the
2262 suspension of DROP benefits to a participant who is
2263 reemployed; deleting obsolete provisions; revising
2264 employer contribution requirements; authorizing the
2265 Division of Retirement to issue benefits pursuant to a
2266 qualified domestic relations order directly to the
2267 alternate payee; amending s. 121.1115, F.S.; revising
2268 provisions relating to receiving retirement credit for
2269 out-of-state service; providing that a member is not
2270 eligible for and may not receive a benefit based on
2271 such service; amending s. 121.1122, F.S.; revising
2272 provisions relating to receiving retirement credit for
2273 in-state service; providing that certain members may
2274 not be eligible to purchase service credit; amending
2275 s. 121.122, F.S.; providing that certain retirees
2276 initially reemployed on or after a specified date are
2277 ineligible for renewed membership in the system;
2278 revising conditions under which a retiree is entitled
2279 to certain additional retirement benefits; amending s.
2280 121.136, F.S.; revising provisions relating to the
2281 annual statement of benefits provided to certain
2282 active members of the system; amending s. 121.1905,
2283 F.S.; deleting a provision describing the mission of
2284 the Division of Retirement; amending s. 121.23, F.S.;
2285 requiring the State Retirement Commission to use
2286 certain requirements used by the Secretary of
2287 Management Services before approving a disability
2288 retirement benefit; amending s. 121.24, F.S.;
2289 requiring a quorum of three members for all appeal
2290 hearings held by the commission; amending s. 121.35,
2291 F.S.; revising a compulsory membership exception for
2292 certain members failing to elect membership in the
2293 optional retirement program; providing a cross
2294 reference; defining the term “retiree” for purposes of
2295 the State University System Optional Retirement
2296 Program; amending s. 121.4501, F.S.; revising the
2297 definition of “eligible employee” for purposes of the
2298 Public Employee Optional Retirement Program; amending
2299 s. 121.591, F.S.; providing a cross-reference;
2300 amending s. 1012.33, F.S.; deleting a provision
2301 preventing persons who have retired from the public
2302 school system from renewing membership in the Florida
2303 Retirement System or Teachers’ Retirement System upon
2304 reemployment by the school system; repealing s.
2305 121.093, F.S., relating to instructional personnel
2306 reemployment after retirement from a developmental
2307 research school or the Florida School for the Deaf and
2308 the Blind; repealing s. 121.094, F.S., relating to
2309 instructional personnel reemployment after retirement
2310 from a charter school; repealing s. 121.45, F.S.,
2311 relating to interstate compacts relating to pension
2312 portability; providing a declaration of important
2313 state interest; providing an effective date.