Florida Senate - 2009                        COMMITTEE AMENDMENT
       Bill No. SB 1182
       
       
       
       
       
       
                                Barcode 862520                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/31/2009           .                                
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       The Committee on Community Affairs (Storms) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3  
    4         Delete everything after the enacting clause
    5  and insert:
    6         Section 1. Subsection (60) of section 121.021, Florida
    7  Statutes, is amended 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         (60) “Retiree” means:
   12         (a) A former member of the Florida Retirement System or an
   13  existing system who has terminated employment and is receiving
   14  benefit payments from the system in which he or she was a
   15  member. This term also includes a person who retired and is
   16  receiving benefits under s. 112.05 and a retiree under the
   17  Public Employee Optional Retirement Program defined in s.
   18  121.4501(2).
   19         (b)A former participant of the following programs who has
   20  received a distribution from: the State Community College
   21  Optional Retirement Program as defined in s. 121.051(2)(c), the
   22  Senior Management Service Optional Annuity Program as defined in
   23  s. 121.055(6), an alternative program for local agency employer
   24  senior managers who withdrew from the Florida Retirement System
   25  under s. 121.055(1)(b), or the State University System
   26  Retirement Optional Retirement Program as defined in s.
   27  121.35(5)(g). A distribution is receiving funds that include
   28  employer contributions and associated earnings whether received
   29  as a full or partial: rollover or trustee-to-trustee transfer,
   30  lump sum payment, periodic payment, annuity payments or any
   31  combination of these payment methods.
   32         Section 2. Paragraph (a) of subsection (1) and paragraphs
   33  (c) and (f) of subsection (2) of section 121.051, Florida
   34  Statutes, are amended to read:
   35         121.051 Participation in the system.—
   36         (1) COMPULSORY PARTICIPATION.—
   37         (a) The provisions of this law are shall be compulsory as
   38  to all officers and employees, except elected officers who meet
   39  the requirements of s. 121.052(3), who are employed on or after
   40  December 1, 1970, by of an employer other than those referred to
   41  in paragraph (2)(b), and each officer or employee, as a
   42  condition of employment, shall become a member of the system as
   43  of his or her date of employment, except that a person who is
   44  retired from any state retirement system and is reemployed on or
   45  after December 1, 1970, may not renew his or her membership in
   46  any state retirement system except as provided in s.
   47  121.091(4)(h) for a person who recovers from disability, and as
   48  provided in s. 121.091(9)(b)10. s. 121.091(9)(b)8. for a person
   49  who is elected to public office, and, effective July 1, 1991, as
   50  provided in s. 121.122 for all other retirees. Officers and
   51  employees of the University Athletic Association, Inc., a
   52  nonprofit association connected with the University of Florida,
   53  employed on and after July 1, 1979, may shall not participate in
   54  any state-supported retirement system.
   55         1. Any person appointed on or after July 1, 1989, to a
   56  faculty position in a college at the J. Hillis Miller Health
   57  Center at the University of Florida or the Medical Center at the
   58  University of South Florida which has a faculty practice plan
   59  provided by rule adopted by the Board of Regents may not
   60  participate in the Florida Retirement System. Effective July 1,
   61  2008, any person appointed thereafter to a faculty position,
   62  including clinical faculty, in a college at a state university
   63  that has a faculty practice plan authorized by the Board of
   64  Governors may not participate in the Florida Retirement System.
   65  A faculty member so appointed shall participate in the optional
   66  retirement program for the State University System
   67  notwithstanding the provisions of s. 121.35(2)(a).
   68         2. For purposes of this paragraph, the term “faculty
   69  position” is defined as a position assigned the principal
   70  responsibility of teaching, research, or public service
   71  activities or administrative responsibility directly related to
   72  the academic mission of the college. The term “clinical faculty”
   73  is defined as a faculty position appointment in conjunction with
   74  a professional position in a hospital or other clinical
   75  environment at a college. The term “faculty practice plan”
   76  includes professional services to patients, institutions, or
   77  other parties which are rendered by the clinical faculty
   78  employed by a college that has a faculty practice plan at a
   79  state university authorized by the Board of Governors.
   80         (2) OPTIONAL PARTICIPATION.—
   81         (c) Employees of public community colleges or charter
   82  technical career centers sponsored by public community colleges,
   83  as designated in s. 1000.21(3), who are members of the Regular
   84  Class of the Florida Retirement System and who comply with the
   85  criteria set forth in this paragraph and in s. 1012.875 may
   86  elect, in lieu of participating in the Florida Retirement
   87  System, to withdraw from the Florida Retirement System
   88  altogether and participate in an optional retirement program
   89  provided by the employing agency under s. 1012.875, to be known
   90  as the State Community College System Optional Retirement
   91  Program. Pursuant thereto:
   92         1. Through June 30, 2001, the cost to the employer for such
   93  annuity shall equal the normal cost portion of the employer
   94  retirement contribution which would be required if the employee
   95  were a member of the Regular Class defined benefit program, plus
   96  the portion of the contribution rate required by s. 112.363(8)
   97  that would otherwise be assigned to the Retiree Health Insurance
   98  Subsidy Trust Fund. Effective July 1, 2001, each employer shall
   99  contribute on behalf of each participant in the optional program
  100  an amount equal to 10.43 percent of the participant’s gross
  101  monthly compensation. The employer shall deduct an amount to
  102  provide for the administration of the optional retirement
  103  program. The employer providing the optional program shall
  104  contribute an additional amount to the Florida Retirement System
  105  Trust Fund equal to the unfunded actuarial accrued liability
  106  portion of the Regular Class contribution rate.
  107         2. The decision to participate in such an optional
  108  retirement program shall be irrevocable for as long as the
  109  employee holds a position eligible for participation, except as
  110  provided in subparagraph 3. Any service creditable under the
  111  Florida Retirement System shall be retained after the member
  112  withdraws from the Florida Retirement System; however,
  113  additional service credit in the Florida Retirement System shall
  114  not be earned while a member of the optional retirement program.
  115         3. An employee who has elected to participate in the
  116  optional retirement program shall have one opportunity, at the
  117  employee’s discretion, to choose to transfer from the optional
  118  retirement program to the defined benefit program of the Florida
  119  Retirement System or to the Public Employee Optional Retirement
  120  Program, subject to the terms of the applicable optional
  121  retirement program contracts.
  122         a. If the employee chooses to move to the Public Employee
  123  Optional Retirement Program, any contributions, interest, and
  124  earnings creditable to the employee under the State Community
  125  College System Optional Retirement Program shall be retained by
  126  the employee in the State Community College System Optional
  127  Retirement Program, and the applicable provisions of s.
  128  121.4501(4) shall govern the election.
  129         b. If the employee chooses to move to the defined benefit
  130  program of the Florida Retirement System, the employee shall
  131  receive service credit equal to his or her years of service
  132  under the State Community College System Optional Retirement
  133  Program.
  134         (I) The cost for such credit shall be an amount
  135  representing the present value of that employee’s accumulated
  136  benefit obligation for the affected period of service. The cost
  137  shall be calculated as if the benefit commencement occurs on the
  138  first date the employee would become eligible for unreduced
  139  benefits, using the discount rate and other relevant actuarial
  140  assumptions that were used to value the Florida Retirement
  141  System defined benefit plan liabilities in the most recent
  142  actuarial valuation. The calculation shall include any service
  143  already maintained under the defined benefit plan in addition to
  144  the years under the State Community College System Optional
  145  Retirement Program. The present value of any service already
  146  maintained under the defined benefit plan shall be applied as a
  147  credit to total cost resulting from the calculation. The
  148  division shall ensure that the transfer sum is prepared using a
  149  formula and methodology certified by an enrolled actuary.
  150         (II) The employee must transfer from his or her State
  151  Community College System Optional Retirement Program account and
  152  from other employee moneys as necessary, a sum representing the
  153  present value of that employee’s accumulated benefit obligation
  154  immediately following the time of such movement, determined
  155  assuming that attained service equals the sum of service in the
  156  defined benefit program and service in the State Community
  157  College System Optional Retirement Program.
  158         4. Participation in the optional retirement program shall
  159  be limited to those employees who satisfy the following
  160  eligibility criteria:
  161         a. The employee must be otherwise eligible for membership
  162  or renewed membership in the Regular Class of the Florida
  163  Retirement System, as provided in s. 121.021(11) and (12) or s.
  164  121.122.
  165         b. The employee must be employed in a full-time position
  166  classified in the Accounting Manual for Florida’s Public
  167  Community Colleges as:
  168         (I) Instructional; or
  169         (II) Executive Management, Instructional Management, or
  170  Institutional Management, if a community college determines that
  171  recruiting to fill a vacancy in the position is to be conducted
  172  in the national or regional market, and:
  173         (A) The duties and responsibilities of the position include
  174  either the formulation, interpretation, or implementation of
  175  policies; or
  176         (B) The duties and responsibilities of the position include
  177  the performance of functions that are unique or specialized
  178  within higher education and that frequently involve the support
  179  of the mission of the community college.
  180         c. The employee must be employed in a position not included
  181  in the Senior Management Service Class of the Florida Retirement
  182  System, as described in s. 121.055.
  183         5. A participant who receives a program distribution,
  184  including a rollover or trustee-to-trustee transfer, funded by
  185  employer contributions shall be deemed to be retired from a
  186  state-administered retirement system in the event of subsequent
  187  employment with any employer that participates in the Florida
  188  Retirement System. Participants in the program are subject to
  189  the same reemployment limitations, renewed membership
  190  provisions, and forfeiture provisions as are applicable to
  191  regular members of the Florida Retirement System under ss.
  192  121.091(9), 121.122, and 121.091(5), respectively.
  193         6. Eligible community college employees shall be compulsory
  194  members of the Florida Retirement System until, pursuant to the
  195  procedures set forth in s. 1012.875, a written election to
  196  withdraw from the Florida Retirement System and to participate
  197  in the State Community College System Optional Retirement
  198  Program is filed with the program administrator and received by
  199  the division.
  200         a. Any community college employee whose program eligibility
  201  results from initial employment shall be enrolled in the State
  202  Community College System Optional Retirement Program retroactive
  203  to the first day of eligible employment. The employer retirement
  204  contributions paid through the month of the employee plan change
  205  shall be transferred to the community college for the employee’s
  206  optional program account, and, effective the first day of the
  207  next month, the employer shall pay the applicable contributions
  208  based upon subparagraph 1.
  209         b. Any community college employee whose program eligibility
  210  results from a change in status due to the subsequent
  211  designation of the employee’s position as one of those specified
  212  in subparagraph 4. or due to the employee’s appointment,
  213  promotion, transfer, or reclassification to a position specified
  214  in subparagraph 4. shall be enrolled in the program upon the
  215  first day of the first full calendar month that such change in
  216  status becomes effective. The employer retirement contributions
  217  paid from the effective date through the month of the employee
  218  plan change shall be transferred to the community college for
  219  the employee’s optional program account, and, effective the
  220  first day of the next month, the employer shall pay the
  221  applicable contributions based upon subparagraph 1.
  222         7. Effective July 1, 2003, through December 31, 2008, any
  223  participant of the State Community College System Optional
  224  Retirement Program who has service credit in the defined benefit
  225  plan of the Florida Retirement System for the period between his
  226  or her first eligibility to transfer from the defined benefit
  227  plan to the optional retirement program and the actual date of
  228  transfer may, during his or her employment, elect to transfer to
  229  the optional retirement program a sum representing the present
  230  value of the accumulated benefit obligation under the defined
  231  benefit retirement program for such period of service credit.
  232  Upon such transfer, all such service credit previously earned
  233  under the defined benefit program of the Florida Retirement
  234  System during this period shall be nullified for purposes of
  235  entitlement to a future benefit under the defined benefit
  236  program of the Florida Retirement System.
  237         (f)1. Whenever an employer that participates in the Florida
  238  Retirement System undertakes the transfer, merger, or
  239  consolidation of governmental services or functions, the
  240  employer must notify the department at least 60 days before
  241  prior to such action and shall provide documentation as required
  242  by the department.
  243         2. When the agency to which a member’s employing unit is
  244  transferred, merged, or consolidated does not participate in the
  245  Florida Retirement System, a member shall elect in writing to
  246  remain in the Florida Retirement System or to transfer to the
  247  local retirement system operated by the such agency. If the such
  248  agency does not participate in a local retirement system, the
  249  member shall continue membership in the Florida Retirement
  250  System. In either case, the membership shall continue for as
  251  long as the member is employed by the agency to which his or her
  252  unit was transferred, merged, or consolidated.
  253         Section 3. Subsections (1) and (2) of section 121.053,
  254  Florida Statutes, are amended to read:
  255         121.053 Participation in the Elected Officers’ Class for
  256  retired members.—
  257         (1)(a)1.Any retiree of a state-administered retirement
  258  system who initially serves in an elective office in a regularly
  259  established position with a covered employer on or after January
  260  1, 2010, may not enroll in the Florida Retirement System as a
  261  renewed member.
  262         2.An elected officer who is elected or appointed to an
  263  elective office and is participating in the Deferred Retirement
  264  Option Program is subject to termination as provided in s.
  265  121.021(39)(b), and reemployment limitations as provided in s.
  266  121.091(9), upon completion of his or her DROP participation
  267  period. An elected official may defer termination as provided in
  268  subparagraph (c)5.
  269         (b)Any member who retired before January 1, 2010, under
  270  any existing system as defined in s. 121.021(2), and receives a
  271  benefit thereof, who is initially reemployed before January 1,
  272  2010, and who serves in an office covered by the Elected
  273  Officers’ Class for a period of at least 6 years, is entitled to
  274  receive an additional retirement benefit for such elected
  275  officer service before July 1, 1990, under the Elected Officers’
  276  Class of the Florida Retirement System, as follows:
  277         1.Upon completion of 6 or more years of creditable service
  278  in an office covered by the Elected Officers’ Class, as provided
  279  in s. 121.052, the member shall notify the administrator of his
  280  or her intent to purchase elected officer service before July 1,
  281  1990, and shall pay the member contribution applicable for the
  282  period being claimed, plus 4 percent interest compounded
  283  annually from the first year of service claimed until July 1,
  284  1975, and 6.5 percent interest compounded annually thereafter,
  285  until full payment is made to the Florida Retirement System
  286  Trust Fund; however, the member may purchase retirement credit
  287  under the Elected Officers’ Class only for such service as an
  288  elected officer.
  289         2.Upon payment of the amount specified in subparagraph 1.,
  290  the employer shall pay into the Florida Retirement System Trust
  291  Fund the applicable employer contribution for the period of
  292  elected officer service before to July 1, 1990, being claimed by
  293  the member, plus 4 percent interest compounded annually from the
  294  first year of service claimed until July 1, 1975, and 6.5
  295  percent interest compounded annually thereafter, until full
  296  payment is made to the Florida Retirement System Trust Fund.
  297         (c)Any retired member of the Florida Retirement System, or
  298  any existing system as defined in s. 121.021(2), who, on or
  299  after July 1, 1990, through December 31, 2009, is serving in, or
  300  is elected or appointed to, an elective office covered by the
  301  Elected Officers’ Class shall be enrolled in the appropriate
  302  subclass of the Elected Officers’ Class of the Florida
  303  Retirement System, and applicable contributions shall be paid
  304  into the Florida Retirement System Trust Fund as provided in s.
  305  121.052(7). Pursuant thereto: Any member who retired under any
  306  existing system as defined in s. 121.021(2), and receives a
  307  benefit thereof, and who serves in an office covered by the
  308  Elected Officers’ Class for a period of at least 6 years, shall
  309  be entitled to receive an additional retirement benefit for such
  310  elected officer service prior to July 1, 1990, under the Elected
  311  Officers’ Class of the Florida Retirement System, as follows:
  312         1.Upon completion of 6 or more years of creditable service
  313  in an office covered by the Elected Officers’ Class, s. 121.052,
  314  such member shall notify the administrator of his or her intent
  315  to purchase elected officer service prior to July 1, 1990, and
  316  shall pay the member contribution applicable for the period
  317  being claimed, plus 4 percent interest compounded annually from
  318  the first year of service claimed until July 1, 1975, and 6.5
  319  percent interest compounded annually thereafter, until full
  320  payment is made to the Florida Retirement System Trust Fund;
  321  however, such member may purchase retirement credit under the
  322  Elected Officers’ Class only for such service as an elected
  323  officer.
  324         2.Upon payment of the amount specified in subparagraph 1.,
  325  the employer shall pay into the Florida Retirement System Trust
  326  Fund the applicable employer contribution for the period of
  327  elected officer service prior to July 1, 1990, being claimed by
  328  the member, plus 4 percent interest compounded annually from the
  329  first year of service claimed until July 1, 1975, and 6.5
  330  percent interest compounded annually thereafter, until full
  331  payment is made to the Florida Retirement System Trust Fund.
  332         (b)Any retired member of the Florida Retirement System, or
  333  any existing system as defined in s. 121.021(2), who, on or
  334  after July 1, 1990, is serving in, or is elected or appointed
  335  to, an elective office covered by the Elected Officers’ Class
  336  shall be enrolled in the appropriate subclass of the Elected
  337  Officers’ Class of the Florida Retirement System, and applicable
  338  contributions shall be paid into the Florida Retirement System
  339  Trust Fund as provided in s. 121.052(7). Pursuant thereto:
  340         1. Any such retired member shall be eligible to continue to
  341  receive retirement benefits as well as compensation for the
  342  elected officer service for as long as he or she remains in an
  343  elective office covered by the Elected Officers’ Class.
  344         2. If any such member serves in an elective office covered
  345  by the Elected Officers’ Class and becomes vested under that
  346  class, he or she shall be entitled to receive an additional
  347  retirement benefit for such elected officer service.
  348         3. Such member shall be entitled to purchase additional
  349  retirement credit in the Elected Officers’ Class for any
  350  postretirement service performed in an elected position eligible
  351  for the Elected Officers’ Class before prior to July 1, 1990, or
  352  in the Regular Class for any postretirement service performed in
  353  any other regularly established position prior to July 1, 1991,
  354  by paying the applicable Elected Officers’ Class or Regular
  355  Class employee and employer contributions for the period being
  356  claimed, plus 4 percent interest compounded annually from the
  357  first year of service claimed until July 1, 1975, and 6.5
  358  percent interest compounded thereafter, until full payment is
  359  made to the Florida Retirement System Trust Fund. The
  360  contribution for postretirement Regular Class service between
  361  July 1, 1985, and July 1, 1991, for which the reemployed retiree
  362  contribution was paid, shall be the difference between such
  363  contribution and the total applicable contribution for the
  364  period being claimed, plus interest. The employer of such member
  365  may pay the applicable employer contribution in lieu of the
  366  member. If a member does not wish to claim credit for all of the
  367  postretirement service for which he or she is eligible, the
  368  service the member claims must be the most recent service.
  369         4. Creditable service for which credit was received, or
  370  which remained unclaimed, at retirement may not be claimed or
  371  applied toward service credit earned following renewed
  372  membership. However, service earned in accordance with the
  373  renewed membership provisions in s. 121.122 may be used in
  374  conjunction with creditable service earned under this paragraph,
  375  provided applicable vesting requirements and other existing
  376  statutory conditions required by this chapter are met.
  377         5. An elected officer who is elected or appointed to an
  378  elective office and is participating in the Deferred Retirement
  379  Option Program is not subject to termination as provided in s.
  380  121.021(39)(b), or reemployment limitations as provided in s.
  381  121.091(9), until the end of his or her current term of office
  382  or, if the officer is consecutively elected or reelected to an
  383  elective office eligible for coverage under the Florida
  384  Retirement System, until he or she no longer holds such an
  385  elective office, as follows:
  386         a. At the end of the 60-month DROP period:
  387         (I) The officer’s DROP account shall accrue no additional
  388  monthly benefits, but shall continue to earn interest as
  389  provided in s. 121.091(13).
  390         (II) No retirement contributions shall be required of the
  391  employer of the elected officer and no additional retirement
  392  credit shall be earned under the Florida Retirement System.
  393         b. Nothing herein shall prevent an elected officer from
  394  voluntarily terminating his or her elective office at any time
  395  and electing to receive his or her DROP proceeds. However, until
  396  termination requirements are fulfilled as provided in s.
  397  121.021(39), any elected officer whose termination limitations
  398  are extended by this section shall be ineligible for renewed
  399  membership in the system and shall receive no pension payments,
  400  DROP lump sum payments, or any other state payment other than
  401  the statutorily determined salary, travel, and per diem for the
  402  elective office.
  403         c. Upon termination, the officer shall receive his or her
  404  accumulated DROP account, plus interest, and shall accrue and
  405  commence receiving monthly retirement benefits, which shall be
  406  paid on a prospective basis only.
  407  
  408  However, an officer electing to participate in the Deferred
  409  Retirement Option Program on or before June 30, 2002, shall not
  410  be required to terminate and shall remain subject to the
  411  provisions of this subparagraph as adopted in section 1 of
  412  chapter 2001-235, Laws of Florida.
  413         (2) Upon attaining his or her normal retirement date and
  414  payment of the amount specified in paragraphs (1)(b) and (c)
  415  (1)(a) and (b), and upon application to the administrator of the
  416  intent to retire, the member shall receive a monthly benefit
  417  under this section, in addition to any benefits already being
  418  received, which shall commence on the last day of the month of
  419  retirement and be payable on the last day of the month
  420  thereafter during his or her lifetime. The amount of such
  421  monthly benefit shall be the total percentage of retirement
  422  credit purchased under this section multiplied by the member’s
  423  average monthly compensation as an elected officer, adjusted
  424  according to the option selected at retirement under s.
  425  121.091(6).
  426         Section 4. Paragraph (f) of subsection (1) and paragraphs
  427  (c) and (e) of subsection (6) of section 121.055, Florida
  428  Statutes, are amended to read:
  429         121.055 Senior Management Service Class.—There is hereby
  430  established a separate class of membership within the Florida
  431  Retirement System to be known as the “Senior Management Service
  432  Class,” which shall become effective February 1, 1987.
  433         (1)
  434         (f) Effective July 1, 1997:
  435         1. Except as provided in subparagraph 3., any elected state
  436  officer eligible for membership in the Elected Officers’ Class
  437  under s. 121.052(2)(a), (b), or (c) who elects membership in the
  438  Senior Management Service Class under s. 121.052(3)(c) may,
  439  within 6 months after assuming office or within 6 months after
  440  this act becomes a law for serving elected state officers, elect
  441  to participate in the Senior Management Service Optional Annuity
  442  Program, as provided in subsection (6), in lieu of membership in
  443  the Senior Management Service Class.
  444         2. Except as provided in subparagraph 3., any elected
  445  county officer of a local agency employer eligible for
  446  membership in the Elected Officers’ Class under s. 121.052(2)(d)
  447  who elects membership in the Senior Management Service Class
  448  under s. 121.052(3)(c) may, within 6 months after assuming
  449  office, or within 6 months after this act becomes a law for
  450  serving elected county officers of a local agency employer,
  451  elect to withdraw from the Florida Retirement System participate
  452  in a lifetime monthly annuity program, as provided in
  453  subparagraph (b)2., in lieu of membership in the Senior
  454  Management Service Class.
  455         3.Any retiree of a state-administered retirement system
  456  who is initially reemployed on or after January 1, 2010, as an
  457  elected official eligible for Elected Officers’ Class membership
  458  shall not be eligible for renewed membership in the Senior
  459  Management Service Class; or in the Senior Management Service
  460  Optional Annuity Program as provided in subsection (6) or to
  461  withdraw from the Florida Retirement System as a renewed member
  462  as provided in subparagraph (b)2., as applicable, in lieu of
  463  Senior Management Service Class membership.
  464         (6)
  465         (c) Participation.—
  466         1. a. Except as provided in b., any eligible employee who
  467  is employed on or before February 1, 1987, may elect to
  468  participate in the optional annuity program in lieu of
  469  participation in the Senior Management Service Class. Such
  470  election shall be made in writing and filed with the department
  471  and the personnel officer of the employer on or before May 1,
  472  1987. Any eligible employee who is employed on or before
  473  February 1, 1987, and who fails to make an election to
  474  participate in the optional annuity program by May 1, 1987,
  475  shall be deemed to have elected membership in the Senior
  476  Management Service Class.
  477         b.Any retiree of a state-administered retirement system
  478  who is initially reemployed on or after January 1, 2010, is not
  479  eligible for renewed membership in the Senior Management Service
  480  Optional Annuity Program.
  481         2. Any employee who becomes eligible to participate in the
  482  optional annuity program by reason of initial employment
  483  commencing after February 1, 1987, may, within 90 days after the
  484  date of commencement of employment, elect to participate in the
  485  optional annuity program. Such election shall be made in writing
  486  and filed with the personnel officer of the employer. Any
  487  eligible employee who does not within 90 days after commencement
  488  of such employment elect to participate in the optional annuity
  489  program shall be deemed to have elected membership in the Senior
  490  Management Service Class.
  491         3. A person who is appointed to a position in the Senior
  492  Management Service Class and who is a member of an existing
  493  retirement system or the Special Risk or Special Risk
  494  Administrative Support Classes of the Florida Retirement System
  495  may elect to remain in such system or class in lieu of
  496  participation in the Senior Management Service Class or optional
  497  annuity program. Such election shall be made in writing and
  498  filed with the department and the personnel officer of the
  499  employer within 90 days of such appointment. Any eligible
  500  employee who fails to make an election to participate in the
  501  existing system, the Special Risk Class of the Florida
  502  Retirement System, the Special Risk Administrative Support Class
  503  of the Florida Retirement System, or the optional annuity
  504  program shall be deemed to have elected membership in the Senior
  505  Management Service Class.
  506         4. Except as provided in subparagraph 5., an employee’s
  507  election to participate in the optional annuity program is
  508  irrevocable as long as such employee continues to be employed in
  509  an eligible position and continues to meet the eligibility
  510  requirements set forth in this paragraph.
  511         5. Effective from July 1, 2002, through September 30, 2002,
  512  any active employee in a regularly established position who has
  513  elected to participate in the Senior Management Service Optional
  514  Annuity Program has one opportunity to choose to move from the
  515  Senior Management Service Optional Annuity Program to the
  516  Florida Retirement System defined benefit program.
  517         a. The election must be made in writing and must be filed
  518  with the department and the personnel officer of the employer
  519  before October 1, 2002, or, in the case of an active employee
  520  who is on a leave of absence on July 1, 2002, within 90 days
  521  after the conclusion of the leave of absence. This election is
  522  irrevocable.
  523         b. The employee will receive service credit under the
  524  defined benefit program of the Florida Retirement System equal
  525  to his or her years of service under the Senior Management
  526  Service Optional Annuity Program. The cost for such credit shall
  527  be an amount representing the present value of that employee’s
  528  accumulated benefit obligation for the affected period of
  529  service.
  530         c. The employee must transfer the total accumulated
  531  employer contributions and earnings on deposit in his or her
  532  Senior Management Service Optional Annuity Program account. If
  533  the transferred amount is not sufficient to pay the amount due,
  534  the employee must pay a sum representing the remainder of the
  535  amount due. In no case may the employee retain any employer
  536  contributions or earnings thereon from the Senior Management
  537  Service Optional Annuity Program account.
  538         (e) Benefits.—
  539         1. Benefits shall be payable under the Senior Management
  540  Service Optional Annuity Program only to participants in the
  541  program, or their beneficiaries as designated by the participant
  542  in the contract with a provider company, and such benefits shall
  543  be paid by the designated company in accordance with the terms
  544  of the annuity contract or contracts applicable to the
  545  participant. A participant must be terminated from all
  546  employment with all Florida Retirement System employers as
  547  provided in s. 121.021(39) to begin receiving the employer
  548  funded benefit. Benefits funded by employer contributions shall
  549  be payable under the terms of the contract only as a lifetime
  550  annuity to the participant, his or her beneficiary, or his or
  551  her estate, in addition to except for:
  552         a. A lump-sum payment to the beneficiary upon the death of
  553  the participant;
  554         b. A cash-out of a de minimis account upon the request of a
  555  former participant who has been terminated for a minimum of 6
  556  months from the employment that entitled him or her to optional
  557  annuity program participation. A de minimis account is an
  558  account with a provider company containing employer
  559  contributions and accumulated earnings of not more than $5,000
  560  made under the provisions of this chapter. Such cash-out must be
  561  a complete liquidation of the account balance with that company
  562  and is subject to the provisions of the Internal Revenue Code;
  563  or
  564         c.A mandatory distribution of a de minimis account of a
  565  former participant who has been terminated for a minimum of 6
  566  months from the employment that entitled him or her to optional
  567  annuity program participation as authorized by the department;
  568  or
  569         d.c. A lump-sum direct rollover distribution whereby all
  570  accrued benefits, plus interest and investment earnings, are
  571  paid from the participant’s account directly to the custodian of
  572  an eligible retirement plan, as defined in s. 402(c)(8)(B) of
  573  the Internal Revenue Code, on behalf of the participant.
  574  
  575  As used in this subparagraph, a “de minimis account” means an
  576  account with a provider company containing employer
  577  contributions and accumulated earnings of not more than $5,000
  578  made under this chapter.
  579         2. The benefits payable to any person under the Senior
  580  Management Service Optional Annuity Program, and any
  581  contribution accumulated under such program, shall not be
  582  subject to assignment, execution, or attachment or to any legal
  583  process whatsoever.
  584         3. Except as provided in subparagraph 4., a participant who
  585  terminates employment and receives a distribution, including a
  586  rollover or trustee-to-trustee transfer optional annuity program
  587  benefits funded by employer contributions shall be deemed to be
  588  retired from a state-administered retirement system in the event
  589  of subsequent employment with any employer that participates in
  590  the Florida Retirement System.
  591         4.A participant who receives optional annuity program
  592  benefits funded by employer contributions as a mandatory
  593  distribution of a de minimis account authorized by the
  594  department will not be considered a retiree.
  595         Section 5. Subsections (9), (13), and (14) of section
  596  121.091, Florida Statutes, are amended to read:
  597         121.091 Benefits payable under the system.—Benefits may not
  598  be paid under this section unless the member has terminated
  599  employment as provided in s. 121.021(39)(a) or begun
  600  participation in the Deferred Retirement Option Program as
  601  provided in subsection (13), and a proper application has been
  602  filed in the manner prescribed by the department. The department
  603  may cancel an application for retirement benefits when the
  604  member or beneficiary fails to timely provide the information
  605  and documents required by this chapter and the department’s
  606  rules. The department shall adopt rules establishing procedures
  607  for application for retirement benefits and for the cancellation
  608  of such application when the required information or documents
  609  are not received.
  610         (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
  611         (a)Any person who is retired under this chapter, except
  612  under the disability retirement provisions of subsection (4),
  613  may be employed by any private employer or public employer that
  614  does not participate in a state-administered retirement system
  615  and may receive compensation from that employment without
  616  limiting or restricting in any way the retirement benefits
  617  payable to that person.
  618         (b)The limitations on receiving a retirement benefit while
  619  reemployed by an employer participating in a state-administered
  620  retirement system are:
  621         1.For retirements effective on or after January 1, 2010,
  622  or DROP participation ending on or after January 1, 2010, the
  623  retiree may not receive a retirement benefit if receiving salary
  624  or wages from reemployment with any agency participating in the
  625  Florida Retirement System subsequent to the date of retirement.
  626  However, a DROP participant may continue employment and receive
  627  a salary during the period of participation in DROP, as provided
  628  in subsection (13). Any person employed in violation of this
  629  sub-subparagraph and any employing agency that employs or
  630  appoints such person without notifying the Division of
  631  Retirement to suspend retirement benefits are jointly and
  632  severally liable for any benefits paid during reemployment. To
  633  avoid liability, the employing agency must have a written
  634  statement from the retiree that he or she is not retired from a
  635  state-administered retirement system. Any retirement benefits
  636  received by a retired member while reemployed by an employer
  637  participating in a state-administered retirement system must be
  638  repaid to the Florida Retirement System Trust Fund, and
  639  retirement benefits shall remain suspended until repayment is
  640  made.
  641         2.a.For retirements effective on or after January 1, 2010
  642  or DROP participation ending on or after January 1, 2010, there
  643  shall be no exceptions to reemployment limitations and the
  644  exceptions in subparagraphs (b)4. and (b)5. do not apply.
  645         b.For retirements effective before January 1, 2010, or
  646  DROP participation ending before January 1, 2010, a retiree may
  647  not receive a salary from reemployment with any agency
  648  participating in the Florida Retirement System and retirement
  649  benefits under this chapter for 12 calendar months immediately
  650  after retirement. However, a DROP participant may continue
  651  employment and receive a salary during the period of
  652  participation in DROP, as provided in subsection (13). Any
  653  person to whom the limitation in this subparagraph applies who
  654  is reemployed with any agency participating in the Florida
  655  Retirement System after he or she has been retired and met the
  656  definition of termination in s. 121.021(39), but before
  657  completion of the 12-month limitation period must give timely
  658  notice of this fact in writing to the employer and to the
  659  Division of Retirement and shall have his or her retirement
  660  benefits suspended while employed during the balance of the 12
  661  month limitation period unless the person exceeds the 780-hour
  662  reemployment limitation set forth in law. Any person employed in
  663  violation of this sub-subparagraph and any employing agency that
  664  employs or appoints such person without notifying the division
  665  to suspend retirement benefits are jointly and severally liable
  666  for any benefits paid during the reemployment limitation period.
  667  To avoid liability, the employing agency must have a written
  668  statement from the retiree that he or she is not retired from a
  669  state-administered retirement system. Any retirement benefits
  670  received by a retired member while reemployed during this
  671  reemployment limitation period must be repaid to the Florida
  672  Retirement System Trust Fund, and retirement benefits shall
  673  remain suspended until repayment is made. Benefits suspended
  674  beyond the reemployment limitation shall apply toward repayment
  675  of benefits received in violation of the reemployment
  676  limitation.
  677         3.a.A district school board may reemploy a retired member
  678  as a substitute or hourly teacher, education paraprofessional,
  679  transportation assistant, bus driver, or food service worker on
  680  a noncontractual basis after he or she has been retired and met
  681  the definition of termination in s. 121.021(39). A district
  682  school board may reemploy a retired member as instructional
  683  personnel, as defined in s. 1012.01(2)(a), on an annual
  684  contractual basis after he or she has met the definition of
  685  termination in s. 121.021(39). Any other retired member who is
  686  reemployed before meeting the definition of termination voids
  687  his or her application for retirement benefits. A district
  688  school board that reemploys such teachers, education
  689  paraprofessionals, transportation assistants, bus drivers, or
  690  food service workers is subject to the retirement contribution
  691  required by law.
  692         b.A community college board of trustees may reemploy a
  693  retired member as an adjunct instructor or as a participant in a
  694  phased retirement program within the Florida Community College
  695  System after he or she has been retired and met the definition
  696  of termination in s. 121.021(39). Any retired member who is
  697  reemployed within 1 calendar month after retirement voids his or
  698  her application for retirement benefits. A board of trustees
  699  that reemploys such instructors are subject to the retirement
  700  contribution required by law. A retired member may be reemployed
  701  as an adjunct instructor for no more than 780 hours during the
  702  first 12 calendar months of retirement. Any retired member
  703  reemployed for more than 780 hours during the first 12 months of
  704  retirement must give timely notice in writing to the employer
  705  and to the Division of Retirement of the date he or she will
  706  exceed the limitation. The division shall suspend his or her
  707  retirement benefits for the remainder of the 12-month limitation
  708  period. Any person employed in violation of this subparagraph
  709  and any employing agency that employs or appoints such person
  710  without notifying the division to suspend retirement benefits
  711  are jointly and severally liable for any benefits paid during
  712  the reemployment limitation period. The retiree must submit a
  713  written statement to the employing agency stating that he or she
  714  is not retired from a state-administered retirement system. Any
  715  retirement benefits received by a retired member while
  716  reemployed in excess of 780 hours during the 12-month limitation
  717  period must be repaid to the Florida Retirement System Trust
  718  Fund, and retirement benefits shall remain suspended until
  719  repayment is made. Benefits suspended beyond the end of the 12
  720  month limitation period shall apply toward repayment of benefits
  721  received in violation of the 780-hour reemployment limitation.
  722         c.The State University System may reemploy a retired
  723  member as an adjunct faculty member or as a participant in a
  724  phased retirement program within the State University System
  725  after the retired member has met the definition of termination
  726  in s. 121.021(39). Any retired member who is reemployed before
  727  meeting the definition of termination voids his or her
  728  application for retirement benefits. The State University System
  729  is subject to the retired contribution required in subparagraph
  730  3., as appropriate. A retired member may be reemployed as an
  731  adjunct faculty member or a participant in a phased retirement
  732  program for no more than 780 hours during the first 12 calendar
  733  months of his or her retirement. Any retired member reemployed
  734  for more than 780 hours during the 12-month limitation period
  735  shall give timely notice in writing to the employer and to the
  736  Division of Retirement of the date he or she will exceed the
  737  limitation. The division shall suspend his or her retirement
  738  benefits for the remainder of the 12-month limitation period.
  739  Any person employed in violation of this subparagraph and any
  740  employing agency that employs or appoints such person without
  741  notifying the division to suspend retirement benefits are
  742  jointly and severally liable for any benefits paid during the
  743  reemployment limitation period. The retiree must submit a
  744  written statement to the employing agency stating that he or she
  745  is not retired from a state-administered retirement system. Any
  746  retirement benefits received by a retired member while
  747  reemployed in excess of 780 hours during the first 12 months of
  748  retirement must be repaid to the Florida Retirement System Trust
  749  Fund, and retirement benefits remain suspended until repayment
  750  is made. Benefits suspended beyond the end of the retired
  751  member’s 12-month limitation period shall apply toward repayment
  752  of benefits received in violation of the 780-hour reemployment
  753  limitation.
  754         d.The Board of Trustees of the Florida School for the Deaf
  755  and the Blind may reemploy a retired member as a substitute
  756  teacher, substitute residential instructor, or substitute nurse
  757  on a noncontractual basis after he or she has met the definition
  758  of termination in s. 121.021(39). The Board of Trustees of the
  759  Florida School for the Deaf and the Blind may reemploy a retired
  760  member as instructional personnel, as defined in s. 1012.01(2),
  761  on an annual contractual basis after he or she has been retired
  762  and met the definition of termination in s. 121.021(39). Any
  763  retired member who is reemployed before meeting the definition
  764  of termination voids his or her application for retirement
  765  benefits. The Board of Trustees of the Florida School for the
  766  Deaf and the Blind reemploying such teachers, residential
  767  instructors, or nurses is subject to the retirement contribution
  768  required by subparagraph 3.
  769         e.A developmental research school may reemploy a retired
  770  member as a substitute or hourly teacher or an education
  771  paraprofessional, as defined in s. 1012.01(2), on a
  772  noncontractual basis after he or she has been retired and met
  773  the definition of termination in s. 121.021(39). A developmental
  774  research school may reemploy a retired member as instructional
  775  personnel, as defined in s. 1012.01(2), on an annual contractual
  776  basis after he or she has been retired and met the definition of
  777  termination in s. 121.021(39). A developmental research school
  778  that reemploys retired teachers and education paraprofessionals
  779  are subject to the retirement contribution required by
  780  subparagraph 3.
  781         f.A charter school may reemploy a retired member as a
  782  substitute or hourly teacher on a noncontractual basis after he
  783  or she has been retired and met the definition of termination in
  784  s. 121.021(39). A charter school may reemploy a retired member
  785  as instructional personnel, as defined in s. 1012.01(2), on an
  786  annual contractual basis after he or she has been retired and
  787  met the definition of termination in s. 121.021(39). A charter
  788  school that reemploys such members is subject to the retirement
  789  contribution required by subparagraph 3.
  790         g.An employing agency may reemploy a retired member as a
  791  firefighter or paramedic after the retired member has been
  792  retired and met the definition of termination in s. 121.021(39).
  793  Any retired member who is reemployed within 1 calendar month
  794  after retirement shall void his or her application for
  795  retirement benefits. The employing agency reemploying such
  796  firefighter or paramedic is subject to the retired contribution
  797  required in subparagraph 3. Reemployment of a retired
  798  firefighter or paramedic is limited to no more than 780 hours
  799  during the first 12 calendar months of his or her retirement.
  800  Any retired member reemployed for more than 780 hours during the
  801  first 12 months of retirement must give timely notice in writing
  802  to the employer and to the Division of Retirement of the date he
  803  or she will exceed the limitation. The division shall suspend
  804  his or her retirement benefits for the remainder of the 12-month
  805  limitation period. Any person employed in violation of this
  806  subparagraph and any employing agency that employs or appoints
  807  such person without notifying the division to suspend retirement
  808  benefits are jointly and severally liable for any benefits paid
  809  during the reemployment limitation period. The retiree must
  810  submit a written statement to the employing agency stating that
  811  he or she is not retired from a state-administered retirement
  812  system. Any retirement benefits received by a retired member
  813  while reemployed in excess of 780 hours during the 12-month
  814  limitation period must be repaid to the Florida Retirement
  815  System Trust Fund, and retirement benefits shall remain
  816  suspended until repayment is made. Benefits suspended beyond the
  817  end of the 12-month limitation period shall apply toward
  818  repayment of benefits received in violation of the 780-hour
  819  reemployment limitation.
  820         4.a.The employment of a retiree or DROP participant of a
  821  state-administered retirement system does not affect the average
  822  final compensation or years of creditable service of the retiree
  823  or DROP participant.
  824         b.(I)Before to July 1, 1991, upon employment of any
  825  person, other than an elected officer as provided in s. 121.053,
  826  who is retired under a state-administered retirement program,
  827  the employer shall pay retirement contributions in an amount
  828  equal to the unfunded actuarial liability portion of the
  829  employer contribution which would be required for regular
  830  members of the Florida Retirement System.
  831         (II)For retirees initially reemployed from July 1, 1991
  832  through December 31, 2009, contributions shall be made as
  833  provided in s. 121.122 for retirees who have renewed membership
  834  or as provided in subsection (13) for DROP participants.
  835         c.Any person who is retired under a state-administered
  836  retirement program and who is initially reemployed on or after
  837  January 1, 2010, may not renew membership in the Florida
  838  Retirement System. The employer shall pay retirement
  839  contributions in an amount equal to the unfunded actuarial
  840  liability portion of the employer contribution that would be
  841  required for active members of the Florida Retirement System in
  842  addition to the contributions required by s. 121.76.
  843         5.a.Any person who has retired and who is holding an
  844  elective public office or an appointment to an elective public
  845  office eligible for the Elected Officers’ Class on or after July
  846  1, 1990, and initially enrolled through December 31, 2009, shall
  847  be enrolled in the Florida Retirement System as provided in s.
  848  121.053(1)(c) or, if holding an elective public office that does
  849  not qualify for the Elected Officers’ Class on or after July 1,
  850  1991, and initially enrolled through December 31, 2009, shall be
  851  enrolled in the Florida Retirement System as provided in s.
  852  121.122, and shall continue to receive retirement benefits as
  853  well as compensation for the elected officer’s service for as
  854  long as he or she remains in elective office. However, any
  855  retired member who served in an elective office before July 1,
  856  1990, suspended his or her retirement benefit, and had his or
  857  her Florida Retirement System membership reinstated shall, upon
  858  retirement from such office, have his or her retirement benefit
  859  recalculated to include the additional service and compensation
  860  earned.
  861         b.A retiree with renewed membership established before
  862  January 1, 2010 and who is not receiving a benefit based on this
  863  service, who is elected or appointed to an elective office shall
  864  become a member of the Elected Officers’ Class or the Regular
  865  Class depending upon the designation for the position.
  866         c.A retiree who is elected or appointed to an elective
  867  office on or after January 1, 2010 and who is initially
  868  reemployed in a position covered by the Florida Retirement
  869  System shall not be enrolled in the Florida Retirement System
  870  and shall not receive retirement benefits after meeting the
  871  definition of termination in s. 121.021(39).
  872         6.Any person who is holding an elective public office
  873  which is covered by the Florida Retirement System and who is
  874  concurrently employed in nonelected covered employment may elect
  875  to retire while continuing employment in the elective public
  876  office if he or she terminates his or her nonelected covered
  877  employment.
  878         a.For retirements effective before January 1, 2010 or DROP
  879  participation ending before January 1, 2010, any person who
  880  exercises this election shall receive his or her retirement
  881  benefits in addition to the compensation of the elective office
  882  without regard to the time limitations otherwise provided in
  883  this subsection. A person who seeks to exercise the provisions
  884  of this subparagraph, as they existed before May 3, 1984, may
  885  not be deemed to be retired under those provisions unless the
  886  person is eligible to retire under the provisions of this
  887  subparagraph as amended by chapter 84-11, Laws of Florida.
  888         b.For retirements effective on or after January 1, 2010 or
  889  DROP participation ending on or after January 1, 2010, any
  890  person who exercises this election shall not receive his or her
  891  retirement benefits in addition to the compensation of the
  892  elective office.
  893         7.The limitations of this paragraph apply to reemployment
  894  in any capacity with an employer irrespective of the category of
  895  funds from which the person is compensated.
  896         8.This paragraph regarding reemployment after retirement
  897  applies to DROP participants effective upon termination from
  898  employment and the end of DROP participation.
  899         (c)This subsection applies to retirees, as defined in s.
  900  121.4501(2), of the Public Employee Optional Retirement Program
  901  created in part II, subject to the following conditions:
  902         1.Such retirees may not be reemployed with an employer
  903  participating in the Florida Retirement System as provided in
  904  paragraph (b) until the person has been retired for 3 calendar
  905  months, unless the participant has reached the normal retirement
  906  requirements of the defined benefit plan as provided in s.
  907  121.021(29).
  908         2.The retiree employed in violation of this subsection and
  909  any employing agency that employs or appoints such person shall
  910  be jointly and severally liable for reimbursement of any
  911  benefits paid to the retirement trust fund from which the
  912  benefits were paid, including the Retirement System Trust Fund
  913  and the Public Employee Optional Retirement Program Trust Fund,
  914  as appropriate. To be employed, the retiree must submit to the
  915  employing agency a written statement that he or she is not
  916  retired from a state-administered retirement system.
  917         (a)Any person who is retired under this chapter, except
  918  under the disability retirement provisions of subsection (4),
  919  may be employed by an employer that does not participate in a
  920  state-administered retirement system and may receive
  921  compensation from that employment without limiting or
  922  restricting in any way the retirement benefits payable to that
  923  person.
  924         (b)1.Any person who is retired under this chapter, except
  925  under the disability retirement provisions of subsection (4),
  926  may be reemployed by any private or public employer after
  927  retirement and receive retirement benefits and compensation from
  928  his or her employer without any limitations, except that a
  929  person may not receive both a salary from reemployment with any
  930  agency participating in the Florida Retirement System and
  931  retirement benefits under this chapter for a period of 12 months
  932  immediately subsequent to the date of retirement. However, a
  933  DROP participant shall continue employment and receive a salary
  934  during the period of participation in the Deferred Retirement
  935  Option Program, as provided in subsection (13).
  936         2.Any person to whom the limitation in subparagraph 1.
  937  applies who violates such reemployment limitation and who is
  938  reemployed with any agency participating in the Florida
  939  Retirement System before completion of the 12-month limitation
  940  period shall give timely notice of this fact in writing to the
  941  employer and to the division and shall have his or her
  942  retirement benefits suspended for the balance of the 12-month
  943  limitation period. Any person employed in violation of this
  944  paragraph and any employing agency which knowingly employs or
  945  appoints such person without notifying the Division of
  946  Retirement to suspend retirement benefits shall be jointly and
  947  severally liable for reimbursement to the retirement trust fund
  948  of any benefits paid during the reemployment limitation period.
  949  To avoid liability, such employing agency shall have a written
  950  statement from the retiree that he or she is not retired from a
  951  state-administered retirement system. Any retirement benefits
  952  received while reemployed during this reemployment limitation
  953  period shall be repaid to the retirement trust fund, and
  954  retirement benefits shall remain suspended until such repayment
  955  has been made. Benefits suspended beyond the reemployment
  956  limitation shall apply toward repayment of benefits received in
  957  violation of the reemployment limitation.
  958         3.A district school board may reemploy a retired member as
  959  a substitute or hourly teacher, education paraprofessional,
  960  transportation assistant, bus driver, or food service worker on
  961  a noncontractual basis after he or she has been retired for 1
  962  calendar month, in accordance with s. 121.021(39). A district
  963  school board may reemploy a retired member as instructional
  964  personnel, as defined in s. 1012.01(2)(a), on an annual
  965  contractual basis after he or she has been retired for 1
  966  calendar month, in accordance with s. 121.021(39). Any other
  967  retired member who is reemployed within 1 calendar month after
  968  retirement shall void his or her application for retirement
  969  benefits. District school boards reemploying such teachers,
  970  education paraprofessionals, transportation assistants, bus
  971  drivers, or food service workers are subject to the retirement
  972  contribution required by subparagraph 7.
  973         4.A community college board of trustees may reemploy a
  974  retired member as an adjunct instructor, that is, an instructor
  975  who is noncontractual and part-time, or as a participant in a
  976  phased retirement program within the Florida Community College
  977  System, after he or she has been retired for 1 calendar month,
  978  in accordance with s. 121.021(39). Any retired member who is
  979  reemployed within 1 calendar month after retirement shall void
  980  his or her application for retirement benefits. Boards of
  981  trustees reemploying such instructors are subject to the
  982  retirement contribution required in subparagraph 7. A retired
  983  member may be reemployed as an adjunct instructor for no more
  984  than 780 hours during the first 12 months of retirement. Any
  985  retired member reemployed for more than 780 hours during the
  986  first 12 months of retirement shall give timely notice in
  987  writing to the employer and to the division of the date he or
  988  she will exceed the limitation. The division shall suspend his
  989  or her retirement benefits for the remainder of the first 12
  990  months of retirement. Any person employed in violation of this
  991  subparagraph and any employing agency which knowingly employs or
  992  appoints such person without notifying the Division of
  993  Retirement to suspend retirement benefits shall be jointly and
  994  severally liable for reimbursement to the retirement trust fund
  995  of any benefits paid during the reemployment limitation period.
  996  To avoid liability, such employing agency shall have a written
  997  statement from the retiree that he or she is not retired from a
  998  state-administered retirement system. Any retirement benefits
  999  received by a retired member while reemployed in excess of 780
 1000  hours during the first 12 months of retirement shall be repaid
 1001  to the Retirement System Trust Fund, and retirement benefits
 1002  shall remain suspended until repayment is made. Benefits
 1003  suspended beyond the end of the retired member’s first 12 months
 1004  of retirement shall apply toward repayment of benefits received
 1005  in violation of the 780-hour reemployment limitation.
 1006         5.The State University System may reemploy a retired
 1007  member as an adjunct faculty member or as a participant in a
 1008  phased retirement program within the State University System
 1009  after the retired member has been retired for 1 calendar month,
 1010  in accordance with s. 121.021(39). Any retired member who is
 1011  reemployed within 1 calendar month after retirement shall void
 1012  his or her application for retirement benefits. The State
 1013  University System is subject to the retired contribution
 1014  required in subparagraph 7., as appropriate. A retired member
 1015  may be reemployed as an adjunct faculty member or a participant
 1016  in a phased retirement program for no more than 780 hours during
 1017  the first 12 months of his or her retirement. Any retired member
 1018  reemployed for more than 780 hours during the first 12 months of
 1019  retirement shall give timely notice in writing to the employer
 1020  and to the division of the date he or she will exceed the
 1021  limitation. The division shall suspend his or her retirement
 1022  benefits for the remainder of the first 12 months of retirement.
 1023  Any person employed in violation of this subparagraph and any
 1024  employing agency which knowingly employs or appoints such person
 1025  without notifying the Division of Retirement to suspend
 1026  retirement benefits shall be jointly and severally liable for
 1027  reimbursement to the retirement trust fund of any benefits paid
 1028  during the reemployment limitation period. To avoid liability,
 1029  such employing agency shall have a written statement from the
 1030  retiree that he or she is not retired from a state-administered
 1031  retirement system. Any retirement benefits received by a retired
 1032  member while reemployed in excess of 780 hours during the first
 1033  12 months of retirement shall be repaid to the Retirement System
 1034  Trust Fund, and retirement benefits shall remain suspended until
 1035  repayment is made. Benefits suspended beyond the end of the
 1036  retired member’s first 12 months of retirement shall apply
 1037  toward repayment of benefits received in violation of the 780
 1038  hour reemployment limitation.
 1039         6.The Board of Trustees of the Florida School for the Deaf
 1040  and the Blind may reemploy a retired member as a substitute
 1041  teacher, substitute residential instructor, or substitute nurse
 1042  on a noncontractual basis after he or she has been retired for 1
 1043  calendar month, in accordance with s. 121.021(39). Any retired
 1044  member who is reemployed within 1 calendar month after
 1045  retirement shall void his or her application for retirement
 1046  benefits. The Board of Trustees of the Florida School for the
 1047  Deaf and the Blind reemploying such teachers, residential
 1048  instructors, or nurses is subject to the retirement contribution
 1049  required by subparagraph 7. Reemployment of a retired member as
 1050  a substitute teacher, substitute residential instructor, or
 1051  substitute nurse is limited to 780 hours during the first 12
 1052  months of his or her retirement. Any retired member reemployed
 1053  for more than 780 hours during the first 12 months of retirement
 1054  shall give timely notice in writing to the employer and to the
 1055  division of the date he or she will exceed the limitation. The
 1056  division shall suspend his or her retirement benefits for the
 1057  remainder of the first 12 months of retirement. Any person
 1058  employed in violation of this subparagraph and any employing
 1059  agency which knowingly employs or appoints such person without
 1060  notifying the Division of Retirement to suspend retirement
 1061  benefits shall be jointly and severally liable for reimbursement
 1062  to the retirement trust fund of any benefits paid during the
 1063  reemployment limitation period. To avoid liability, such
 1064  employing agency shall have a written statement from the retiree
 1065  that he or she is not retired from a state-administered
 1066  retirement system. Any retirement benefits received by a retired
 1067  member while reemployed in excess of 780 hours during the first
 1068  12 months of retirement shall be repaid to the Retirement System
 1069  Trust Fund, and his or her retirement benefits shall remain
 1070  suspended until payment is made. Benefits suspended beyond the
 1071  end of the retired member’s first 12 months of retirement shall
 1072  apply toward repayment of benefits received in violation of the
 1073  780-hour reemployment limitation.
 1074         7.The employment by an employer of any retiree or DROP
 1075  participant of any state-administered retirement system shall
 1076  have no effect on the average final compensation or years of
 1077  creditable service of the retiree or DROP participant. Prior to
 1078  July 1, 1991, upon employment of any person, other than an
 1079  elected officer as provided in s. 121.053, who has been retired
 1080  under any state-administered retirement program, the employer
 1081  shall pay retirement contributions in an amount equal to the
 1082  unfunded actuarial liability portion of the employer
 1083  contribution which would be required for regular members of the
 1084  Florida Retirement System. Effective July 1, 1991, contributions
 1085  shall be made as provided in s. 121.122 for retirees with
 1086  renewed membership or subsection (13) with respect to DROP
 1087  participants.
 1088         8.Any person who has previously retired and who is holding
 1089  an elective public office or an appointment to an elective
 1090  public office eligible for the Elected Officers’ Class on or
 1091  after July 1, 1990, shall be enrolled in the Florida Retirement
 1092  System as provided in s. 121.053(1)(b) or, if holding an
 1093  elective public office that does not qualify for the Elected
 1094  Officers’ Class on or after July 1, 1991, shall be enrolled in
 1095  the Florida Retirement System as provided in s. 121.122, and
 1096  shall continue to receive retirement benefits as well as
 1097  compensation for the elected officer’s service for as long as he
 1098  or she remains in elective office. However, any retired member
 1099  who served in an elective office prior to July 1, 1990,
 1100  suspended his or her retirement benefit, and had his or her
 1101  Florida Retirement System membership reinstated shall, upon
 1102  retirement from such office, have his or her retirement benefit
 1103  recalculated to include the additional service and compensation
 1104  earned.
 1105         9.Any person who is holding an elective public office
 1106  which is covered by the Florida Retirement System and who is
 1107  concurrently employed in nonelected covered employment may elect
 1108  to retire while continuing employment in the elective public
 1109  office, provided that he or she shall be required to terminate
 1110  his or her nonelected covered employment. Any person who
 1111  exercises this election shall receive his or her retirement
 1112  benefits in addition to the compensation of the elective office
 1113  without regard to the time limitations otherwise provided in
 1114  this subsection. No person who seeks to exercise the provisions
 1115  of this subparagraph, as the same existed prior to May 3, 1984,
 1116  shall be deemed to be retired under those provisions, unless
 1117  such person is eligible to retire under the provisions of this
 1118  subparagraph, as amended by chapter 84-11, Laws of Florida.
 1119         10.The limitations of this paragraph apply to reemployment
 1120  in any capacity with an “employer” as defined in s. 121.021(10),
 1121  irrespective of the category of funds from which the person is
 1122  compensated.
 1123         11.An employing agency may reemploy a retired member as a
 1124  firefighter or paramedic after the retired member has been
 1125  retired for 1 calendar month, in accordance with s. 121.021(39).
 1126  Any retired member who is reemployed within 1 calendar month
 1127  after retirement shall void his or her application for
 1128  retirement benefits. The employing agency reemploying such
 1129  firefighter or paramedic is subject to the retired contribution
 1130  required in subparagraph 8. Reemployment of a retired
 1131  firefighter or paramedic is limited to no more than 780 hours
 1132  during the first 12 months of his or her retirement. Any retired
 1133  member reemployed for more than 780 hours during the first 12
 1134  months of retirement shall give timely notice in writing to the
 1135  employer and to the division of the date he or she will exceed
 1136  the limitation. The division shall suspend his or her retirement
 1137  benefits for the remainder of the first 12 months of retirement.
 1138  Any person employed in violation of this subparagraph and any
 1139  employing agency which knowingly employs or appoints such person
 1140  without notifying the Division of Retirement to suspend
 1141  retirement benefits shall be jointly and severally liable for
 1142  reimbursement to the Retirement System Trust Fund of any
 1143  benefits paid during the reemployment limitation period. To
 1144  avoid liability, such employing agency shall have a written
 1145  statement from the retiree that he or she is not retired from a
 1146  state-administered retirement system. Any retirement benefits
 1147  received by a retired member while reemployed in excess of 780
 1148  hours during the first 12 months of retirement shall be repaid
 1149  to the Retirement System Trust Fund, and retirement benefits
 1150  shall remain suspended until repayment is made. Benefits
 1151  suspended beyond the end of the retired member’s first 12 months
 1152  of retirement shall apply toward repayment of benefits received
 1153  in violation of the 780-hour reemployment limitation.
 1154         (c)The provisions of this subsection apply to retirees, as
 1155  defined in s. 121.4501(2)(j), of the Public Employee Optional
 1156  Retirement Program created in part II, subject to the following
 1157  conditions:
 1158         1.Such retirees may not be reemployed with an employer
 1159  participating in the Florida Retirement System as provided in
 1160  paragraph (b) until such person has been retired for 3 calendar
 1161  months, unless the participant has reached the normal retirement
 1162  requirements of the defined benefit plan as provided in s.
 1163  121.021(29).
 1164         2.Such retiree employed in violation of this subsection
 1165  and any employing agency that knowingly employs or appoints such
 1166  person shall be jointly and severally liable for reimbursement
 1167  of any benefits paid to the retirement trust fund from which the
 1168  benefits were paid, including the Retirement System Trust Fund
 1169  and the Public Employee Optional Retirement Program Trust Fund,
 1170  as appropriate. To avoid liability, such employing agency must
 1171  have a written statement from the retiree that he or she is not
 1172  retired from a state-administered retirement system.
 1173         (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
 1174  subject to the provisions of this section, the Deferred
 1175  Retirement Option Program, hereinafter referred to as the DROP,
 1176  is a program under which an eligible member of the Florida
 1177  Retirement System may elect to participate, deferring receipt of
 1178  retirement benefits while continuing employment with his or her
 1179  Florida Retirement System employer. The deferred monthly
 1180  benefits shall accrue in the Florida Retirement System Trust
 1181  Fund on behalf of the participant, plus interest compounded
 1182  monthly, for the specified period of the DROP participation, as
 1183  provided in paragraph (c). Upon termination of employment, the
 1184  participant shall receive the total DROP benefits and begin to
 1185  receive the previously determined normal retirement benefits.
 1186  Participation in the DROP does not guarantee employment for the
 1187  specified period of DROP. Participation in the DROP by an
 1188  eligible member beyond the initial 60-month period as authorized
 1189  in this subsection shall be on an annual contractual basis for
 1190  all participants.
 1191         (a) Eligibility of member to participate in the DROP.—All
 1192  active Florida Retirement System members in a regularly
 1193  established position, and all active members of either the
 1194  Teachers’ Retirement System established in chapter 238 or the
 1195  State and County Officers’ and Employees’ Retirement System
 1196  established in chapter 122, which systems are consolidated
 1197  within the Florida Retirement System under s. 121.011, are
 1198  eligible to elect participation in the DROP if provided that:
 1199         1. The member is not a renewed member of the Florida
 1200  Retirement System under s. 121.122, or a member of the State
 1201  Community College System Optional Retirement Program under s.
 1202  121.051, the Senior Management Service Optional Annuity Program
 1203  under s. 121.055, or the optional retirement program for the
 1204  State University System under s. 121.35.
 1205         2. Except as provided in subparagraph 6., election to
 1206  participate is made within 12 months immediately following the
 1207  date on which the member first reaches normal retirement date,
 1208  or, for a member who reaches normal retirement date based on
 1209  service before he or she reaches age 62, or age 55 for Special
 1210  Risk Class members, election to participate may be deferred to
 1211  the 12 months immediately following the date the member attains
 1212  57, or age 52 for Special Risk Class members. A member who
 1213  delays DROP participation during the 12-month period immediately
 1214  following his or her maximum DROP deferral date, except as
 1215  provided in subparagraph 6., loses a month of DROP participation
 1216  for each month delayed. For a member who first reached normal
 1217  retirement date or the deferred eligibility date described above
 1218  prior to the effective date of this section, election to
 1219  participate shall be made within 12 months after the effective
 1220  date of this section. A member who fails to make an election
 1221  within the such 12-month limitation period forfeits shall
 1222  forfeit all rights to participate in the DROP. The member shall
 1223  advise his or her employer and the division in writing of the
 1224  date on which the DROP begins shall begin. The Such beginning
 1225  date may be subsequent to the 12-month election period, but must
 1226  be within the original 60-month participation or, with respect
 1227  to members who are instructional personnel employed by the
 1228  Florida School for the Deaf and the Blind and who have received
 1229  authorization by the Board of Trustees of the Florida School for
 1230  the Deaf and the Blind to participate in the DROP beyond 60
 1231  months, or who are instructional personnel as defined in s.
 1232  1012.01(2)(a)-(d) in grades K-12 and who have received
 1233  authorization by the district school superintendent to
 1234  participate in the DROP beyond 60 months, the 96-month
 1235  limitation period as provided in subparagraph (b)1. When
 1236  establishing eligibility of the member to participate in the
 1237  DROP for the 60-month or, with respect to members who are
 1238  instructional personnel employed by the Florida School for the
 1239  Deaf and the Blind and who have received authorization by the
 1240  Board of Trustees of the Florida School for the Deaf and the
 1241  Blind to participate in the DROP beyond 60 months, or who are
 1242  instructional personnel as defined in s. 1012.01(2)(a)-(d) in
 1243  grades K-12 and who have received authorization by the district
 1244  school superintendent to participate in the DROP beyond 60
 1245  months, the 96-month maximum participation period, the member
 1246  may elect to include or exclude any optional service credit
 1247  purchased by the member from the total service used to establish
 1248  the normal retirement date. A member who has with dual normal
 1249  retirement dates is shall be eligible to elect to participate in
 1250  DROP within 12 months after attaining normal retirement date in
 1251  either class.
 1252         3. The employer of a member electing to participate in the
 1253  DROP, or employers if dually employed, shall acknowledge in
 1254  writing to the division the date the member’s participation in
 1255  the DROP begins and the date the member’s employment and DROP
 1256  participation will terminate.
 1257         4. Simultaneous employment of a participant by additional
 1258  Florida Retirement System employers subsequent to the
 1259  commencement of participation in the DROP is shall be
 1260  permissible if the provided such employers acknowledge in
 1261  writing a DROP termination date no later than the participant’s
 1262  existing termination date or the 60-month limitation period as
 1263  provided in subparagraph (b)1.
 1264         5. A DROP participant may change employers while
 1265  participating in the DROP, subject to the following:
 1266         a. A change of employment must take place without a break
 1267  in service so that the member receives salary for each month of
 1268  continuous DROP participation. If a member receives no salary
 1269  during a month, DROP participation shall cease unless the
 1270  employer verifies a continuation of the employment relationship
 1271  for such participant pursuant to s. 121.021(39)(b).
 1272         b. Such participant and new employer shall notify the
 1273  division of the identity of the new employer on forms required
 1274  by the division as to the identity of the new employer.
 1275         c. The new employer shall acknowledge, in writing, the
 1276  participant’s DROP termination date, which may be extended but
 1277  not beyond the maximum participation original 60-month or, with
 1278  respect to members who are instructional personnel employed by
 1279  the Florida School for the Deaf and the Blind and who have
 1280  received authorization by the Board of Trustees of the Florida
 1281  School for the Deaf and the Blind to participate in the DROP
 1282  beyond 60 months, or who are instructional personnel as defined
 1283  in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
 1284  authorization by the district school superintendent to
 1285  participate in the DROP beyond 60 months, the 96-month period
 1286  provided in subparagraph (b)1., shall acknowledge liability for
 1287  any additional retirement contributions and interest required if
 1288  the participant fails to timely terminate employment, and is
 1289  shall be subject to the adjustment required in sub-subparagraph
 1290  (c)5.d.
 1291         6. Effective July 1, 2001, for instructional personnel as
 1292  defined in s. 1012.01(2), election to participate in the DROP is
 1293  shall be made at any time following the date on which the member
 1294  first reaches normal retirement date. The member shall advise
 1295  his or her employer and the division in writing of the date on
 1296  which DROP begins the Deferred Retirement Option Program shall
 1297  begin. When establishing eligibility of the member to
 1298  participate in the DROP for the 60-month or, with respect to
 1299  members who are instructional personnel employed by the Florida
 1300  School for the Deaf and the Blind and who have received
 1301  authorization by the Board of Trustees of the Florida School for
 1302  the Deaf and the Blind to participate in the DROP beyond 60
 1303  months, or who are instructional personnel as defined in s.
 1304  1012.01(2)(a)-(d) in grades K-12 and who have received
 1305  authorization by the district school superintendent to
 1306  participate in the DROP beyond 60 months, the 96-month maximum
 1307  participation period, as provided in subparagraph (b)1., the
 1308  member may elect to include or exclude any optional service
 1309  credit purchased by the member from the total service used to
 1310  establish the normal retirement date. A member who has with dual
 1311  normal retirement dates is shall be eligible to elect to
 1312  participate in either class.
 1313         (b) Participation in the DROP.—
 1314         1.a.Except as provided in sub-subparagraph b., an eligible
 1315  member may elect to participate in the DROP for a period not to
 1316  exceed a maximum of 60 calendar months. or, with respect to
 1317         b. Members who are instructional personnel employed by the
 1318  Florida School for the Deaf and the Blind and authorized who
 1319  have received authorization by the Board of Trustees of the
 1320  Florida School for the Deaf and the Blind to participate in the
 1321  DROP beyond 60 months, or who are instructional personnel as
 1322  defined in s. 1012.01(2)(a)-(d) in grades K-12 and authorized
 1323  who have received authorization by the district school
 1324  superintendent to participate in the DROP beyond 60 calendar
 1325  months, or who are instructional personnel as defined in s.
 1326  1012.01(2) employed by a developmental research school and
 1327  authorized by the school’s director, or if the school has no
 1328  director, by the school’s principal, may participate in DROP for
 1329  up to 36 calendar months beyond the 60-month period specified in
 1330  sub-subparagraph a. 96 calendar months immediately following the
 1331  date on which the member first reaches his or her normal
 1332  retirement date or the date to which he or she is eligible to
 1333  defer his or her election to participate as provided in
 1334  subparagraph (a)2. However, a member who has reached normal
 1335  retirement date prior to the effective date of the DROP shall be
 1336  eligible to participate in the DROP for a period of time not to
 1337  exceed 60 calendar months or, with respect to members who are
 1338  instructional personnel employed by the Florida School for the
 1339  Deaf and the Blind and who have received authorization by the
 1340  Board of Trustees of the Florida School for the Deaf and the
 1341  Blind to participate in the DROP beyond 60 months, or who are
 1342  instructional personnel as defined in s. 1012.01(2)(a)-(d) in
 1343  grades K-12 and who have received authorization by the district
 1344  school superintendent to participate in the DROP beyond 60
 1345  calendar months, 96 calendar months immediately following the
 1346  effective date of the DROP, except a member of the Special Risk
 1347  Class who has reached normal retirement date prior to the
 1348  effective date of the DROP and whose total accrued value exceeds
 1349  75 percent of average final compensation as of his or her
 1350  effective date of retirement shall be eligible to participate in
 1351  the DROP for no more than 36 calendar months immediately
 1352  following the effective date of the DROP.
 1353         2. Upon deciding to participate in the DROP, the member
 1354  shall submit, on forms required by the division:
 1355         a. A written election to participate in the DROP;
 1356         b. Selection of the DROP participation and termination
 1357  dates, which satisfy the limitations stated in paragraph (a) and
 1358  subparagraph 1. The Such termination date must shall be in a
 1359  binding letter of resignation to with the employer, establishing
 1360  a deferred termination date. The member may change the
 1361  termination date within the limitations of subparagraph 1., but
 1362  only with the written approval of the his or her employer;
 1363         c. A properly completed DROP application for service
 1364  retirement as provided in this section; and
 1365         d. Any other information required by the division.
 1366         3. The DROP participant is shall be a retiree under the
 1367  Florida Retirement System for all purposes, except for paragraph
 1368  (5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
 1369  and 121.122. DROP participation is final and cannot be canceled
 1370  by the participant after the first payment is credited during
 1371  the DROP participation period. However, participation in the
 1372  DROP does not alter the participant’s employment status, and the
 1373  member is such employee shall not be deemed retired from
 1374  employment until his or her deferred resignation is effective
 1375  and termination occurs as provided in s. 121.021(39).
 1376         4. Elected officers are shall be eligible to participate in
 1377  the DROP subject to the following:
 1378         a. An elected officer who reaches normal retirement date
 1379  during a term of office may defer the election to participate in
 1380  the DROP until the next succeeding term in that office. An Such
 1381  elected officer who exercises this option may participate in the
 1382  DROP for up to 60 calendar months or a period of no longer than
 1383  the such succeeding term of office, whichever is less.
 1384         b. An elected or a nonelected participant may run for a
 1385  term of office while participating in DROP and, if elected,
 1386  extend the DROP termination date accordingly;, except, however,
 1387  if the such additional term of office exceeds the 60-month
 1388  limitation established in subparagraph 1., and the officer does
 1389  not resign from office within such 60-month limitation, the
 1390  retirement and the participant’s DROP is shall be null and void
 1391  as provided in sub-subparagraph (c)5.d.
 1392         c.(I)For DROP participation ending before January 1, 2010,
 1393  an elected officer who is dually employed and elects to
 1394  participate in DROP must shall be required to satisfy the
 1395  definition of termination within the original 60-month period or
 1396  maximum participation or, with respect to members who are
 1397  instructional personnel employed by the Florida School for the
 1398  Deaf and the Blind and who have received authorization by the
 1399  Board of Trustees of the Florida School for the Deaf and the
 1400  Blind to participate in the DROP beyond 60 months, or who are
 1401  instructional personnel as defined in s. 1012.01(2)(a)-(d) in
 1402  grades K-12 and who have received authorization by the district
 1403  school superintendent to participate in the DROP beyond 60
 1404  months, the 96-month limitation period as provided in
 1405  subparagraph 1. for the nonelected position and may continue
 1406  employment as an elected officer as provided in s. 121.053. The
 1407  elected officer shall will be enrolled as a renewed member in
 1408  the Elected Officers’ Class or the Regular Class, as provided in
 1409  ss. 121.053 and 121.122, on the first day of the month after
 1410  termination of employment in the nonelected position and
 1411  termination of DROP. Distribution of the DROP benefits shall be
 1412  made as provided in paragraph (c).
 1413         (II)For DROP participation ending on or after January 1,
 1414  2010, an elected officer who is dually employed and elects to
 1415  participate in DROP must satisfy the definition of termination
 1416  in s. 121.021(39) for the nonelected position within the
 1417  original 60-month period or maximum period as provided in
 1418  subparagraph 1. If the elected officer does not terminate from
 1419  elective office within the original 60-month period or maximum
 1420  period, he or she may defer termination as provided in s.
 1421  121.053 but is subject to termination in s. 121.021(39) to
 1422  finalize retirement.
 1423         (c) Benefits payable under the DROP.—
 1424         1. Effective on with the date of DROP participation, the
 1425  member’s initial normal monthly benefit, including creditable
 1426  service, optional form of payment, and average final
 1427  compensation, and the effective date of retirement are shall be
 1428  fixed. The beneficiary established under the Florida Retirement
 1429  System shall be the beneficiary eligible to receive any DROP
 1430  benefits payable if the DROP participant dies prior to the
 1431  completion of the period of DROP participation. If In the event
 1432  a joint annuitant predeceases the member, the member may name a
 1433  beneficiary to receive accumulated DROP benefits payable. The
 1434  Such retirement benefit, the annual cost of living adjustments
 1435  provided in s. 121.101, and interest shall accrue monthly in the
 1436  Florida Retirement System Trust Fund. The Such interest shall
 1437  accrue at an effective annual rate of 6.5 percent compounded
 1438  monthly, on the prior month’s accumulated ending balance, up to
 1439  the month of termination or death.
 1440         2. Each employee who elects to participate in the DROP may
 1441  shall be allowed to elect to receive a lump-sum payment for
 1442  accrued annual leave earned in accordance with agency policy
 1443  upon beginning participation in the DROP. The Such accumulated
 1444  leave payment certified to the division upon commencement of
 1445  DROP shall be included in the calculation of the member’s
 1446  average final compensation. The employee electing the such lump
 1447  sum payment is upon beginning participation in DROP will not be
 1448  eligible to receive a second lump-sum payment upon termination,
 1449  except to the extent the employee has earned additional annual
 1450  leave which combined with the original payment does not exceed
 1451  the maximum lump-sum payment allowed by the employing agency’s
 1452  policy or rules. An Such early lump-sum payment shall be based
 1453  on the hourly wage of the employee at the time he or she begins
 1454  participation in the DROP. If the member elects to wait and
 1455  receive a such lump-sum payment upon termination of DROP and
 1456  termination of employment with the employer, any accumulated
 1457  leave payment made at that time may not cannot be included in
 1458  the member’s retirement benefit, which was determined and fixed
 1459  by law when the employee elected to participate in the DROP.
 1460         3. The effective date of DROP participation and the
 1461  effective date of retirement of a DROP participant shall be the
 1462  first day of the month selected by the member to begin
 1463  participation in the DROP, provided such date is properly
 1464  established, with the written confirmation of the employer, and
 1465  the approval of the division, on forms required by the division.
 1466         4. Normal retirement benefits and any interest thereon
 1467  shall continue to accrue in the DROP until the established
 1468  termination date of the DROP, or until the participant
 1469  terminates employment or dies prior to such date. Although
 1470  individual DROP accounts shall not be established, a separate
 1471  accounting of each participant’s accrued benefits under the DROP
 1472  shall be calculated and provided to participants.
 1473         5. At the conclusion of the participant’s DROP, the
 1474  division shall distribute the participant’s total accumulated
 1475  DROP benefits, subject to the following provisions:
 1476         a. The division shall receive verification by the
 1477  participant’s employer or employers that the such participant
 1478  has terminated employment as provided in s. 121.021(39)(b).
 1479         b. The terminated DROP participant or, if deceased, the
 1480  such participant’s named beneficiary, shall elect on forms
 1481  provided by the division to receive payment of the DROP benefits
 1482  in accordance with one of the options listed below. If For a
 1483  participant or beneficiary who fails to elect a method of
 1484  payment within 60 days after of termination of the DROP, the
 1485  division shall will pay a lump sum as provided in sub-sub
 1486  subparagraph (I).
 1487         (I) Lump sum.—All accrued DROP benefits, plus interest,
 1488  less withholding taxes remitted to the Internal Revenue Service,
 1489  shall be paid to the DROP participant or surviving beneficiary.
 1490         (II) Direct rollover.—All accrued DROP benefits, plus
 1491  interest, shall be paid from the DROP directly to the custodian
 1492  of an eligible retirement plan as defined in s. 402(c)(8)(B) of
 1493  the Internal Revenue Code. However, in the case of an eligible
 1494  rollover distribution to the surviving spouse of a deceased
 1495  participant, an eligible retirement plan is an individual
 1496  retirement account or an individual retirement annuity as
 1497  described in s. 402(c)(9) of the Internal Revenue Code.
 1498         (III) Partial lump sum.—A portion of the accrued DROP
 1499  benefits shall be paid to the DROP participant or surviving
 1500  spouse, less withholding taxes remitted to the Internal Revenue
 1501  Service, and the remaining DROP benefits shall be transferred
 1502  directly to the custodian of an eligible retirement plan as
 1503  defined in s. 402(c)(8)(B) of the Internal Revenue Code.
 1504  However, in the case of an eligible rollover distribution to the
 1505  surviving spouse of a deceased participant, an eligible
 1506  retirement plan is an individual retirement account or an
 1507  individual retirement annuity as described in s. 402(c)(9) of
 1508  the Internal Revenue Code. The proportions shall be specified by
 1509  the DROP participant or surviving beneficiary.
 1510         c. The form of payment selected by the DROP participant or
 1511  surviving beneficiary must comply complies with the minimum
 1512  distribution requirements of the Internal Revenue Code.
 1513         d. A DROP participant who fails to terminate employment as
 1514  defined in s. 121.021(39)(b) shall be deemed as not to be
 1515  retired, and the DROP election is shall be null and void.
 1516  Florida Retirement System membership shall be reestablished
 1517  retroactively to the date of the commencement of the DROP, and
 1518  each employer with whom the participant continues employment
 1519  must shall be required to pay to the Florida Retirement System
 1520  Trust Fund the difference between the DROP contributions paid in
 1521  paragraph (i) and the contributions required for the applicable
 1522  Florida Retirement System class of membership during the period
 1523  the member participated in the DROP, plus 6.5 percent interest
 1524  compounded annually.
 1525         6.The retirement benefits of a retiree who participated in
 1526  DROP and meets the definition of termination in s.
 1527  121.021(39)(b), but is in violation of the reemployment
 1528  provisions as provided in subsection (9), shall be suspended
 1529  during the months in which the reemployed retiree is in
 1530  violation. Any retiree reemployed in violation of this
 1531  subparagraph and any employing agency that employs or appoints
 1532  such member without notifying the Division of Retirement to
 1533  suspend retirement benefits are jointly and severally liable for
 1534  any benefits paid during the reemployment limitation period. To
 1535  avoid liability, the employing agency must have a written
 1536  statement from the retiree that he or she is not retired from a
 1537  state-administered retirement system.
 1538         a.For DROP participation ending before January 1, 2010,
 1539  any retirement benefits received by a retiree while employed in
 1540  violation of the reemployment limitations during the 12-month
 1541  limitation period must be repaid to the Florida Retirement
 1542  System Trust Fund, and his or her retirement benefits shall
 1543  remain suspended until payment is made. Benefits suspended
 1544  beyond the end of the retiree’s 12-calendar month limitation
 1545  period apply toward repayment of benefits received in violation
 1546  of the reemployment limitations.
 1547         b.For DROP participation ending on or after January 1,
 1548  2010, any retirement benefits received by a retiree while
 1549  employed in violation of the reemployment limitations must be
 1550  repaid to the Florida Retirement System Trust Fund, and his or
 1551  her retirement benefits shall remain suspended until payment is
 1552  made. Benefits suspended after the retiree has terminated
 1553  employment shall apply toward repayment of benefits received in
 1554  violation of the reemployment limitations.
 1555         7.6. The accrued benefits of any DROP participant, and any
 1556  contributions accumulated under the such program, are shall not
 1557  be subject to assignment, execution, attachment, or to any legal
 1558  process whatsoever, except for qualified domestic relations
 1559  orders by a court of competent jurisdiction, income deduction
 1560  orders as provided in s. 61.1301, and federal income tax levies.
 1561         8.7. DROP participants are shall not be eligible for
 1562  disability retirement benefits as provided in subsection (4).
 1563         (d) Death benefits under the DROP.—
 1564         1. Upon the death of a DROP participant, the named
 1565  beneficiary is shall be entitled to apply for and receive the
 1566  accrued benefits in the DROP as provided in sub-subparagraph
 1567  (c)5.b.
 1568         2. The normal retirement benefit accrued to the DROP during
 1569  the month of a participant’s death shall be the final monthly
 1570  benefit credited for such DROP participant.
 1571         3. Eligibility to participate in the DROP terminates upon
 1572  death of the participant. If the participant dies on or after
 1573  the effective date of enrollment in the DROP, but prior to the
 1574  first monthly benefit being credited to the DROP, Florida
 1575  Retirement System benefits shall be paid in accordance with
 1576  subparagraph (7)(c)1. or subparagraph 2.
 1577         4. A DROP participant’s participants’ survivors shall not
 1578  be eligible to receive Florida Retirement System death benefits
 1579  as provided in paragraph (7)(d).
 1580         (e) Cost-of-living adjustment.—On each July 1, the
 1581  participant’s participants’ normal retirement benefit shall be
 1582  increased as provided in s. 121.101.
 1583         (f) Retiree health insurance subsidy.—DROP participants are
 1584  not eligible to apply for the retiree health insurance subsidy
 1585  payments as provided in s. 112.363 until such participants have
 1586  terminated employment and participation in the DROP.
 1587         (g) Renewed membership.—
 1588         1. DROP participants who end DROP participation before
 1589  January 1, 2010 are shall not be eligible for renewed membership
 1590  in the Florida Retirement System under ss. 121.053 and 121.122
 1591  until termination of employment is effectuated as provided in s.
 1592  121.021(39)(b).
 1593         2.DROP participants who end DROP participation on or after
 1594  January 1, 2010, are not eligible for renewed membership in a
 1595  state-administered retirement system.
 1596         (h) Employment limitation after DROP participation.—Upon
 1597  satisfying the definition of termination of employment as
 1598  provided in s. 121.021(39)(b), DROP participants shall be
 1599  subject to such reemployment limitations as other retirees.
 1600  Reemployment restrictions applicable to retirees as provided in
 1601  subsection (9) shall not apply to DROP participants until their
 1602  employment and participation in the DROP are terminated.
 1603         (i) Contributions.—
 1604         1. All employers paying the salary of a DROP participant
 1605  filling a regularly established position shall contribute 8.0
 1606  percent of such participant’s gross compensation for the period
 1607  of July 1, 2002, through June 30, 2003, and the 11.56 percent of
 1608  such compensation required by s. 121.71 thereafter, which shall
 1609  constitute the entire employer DROP contribution with respect to
 1610  such participant. Such contributions, payable to the Florida
 1611  Retirement System Trust Fund in the same manner as required in
 1612  s. 121.071, shall be made as appropriate for each pay period and
 1613  are in addition to contributions required for social security
 1614  and the Retiree Health Insurance Subsidy Trust Fund. Such
 1615  employer, social security, and health insurance subsidy
 1616  contributions are not included in the DROP.
 1617         2. The employer shall, in addition to subparagraph 1., also
 1618  withhold one-half of the entire social security contribution
 1619  required for the participant. Contributions for social security
 1620  by each participant and each employer, in the amount required
 1621  for social security coverage as now or hereafter provided by the
 1622  federal Social Security Act, shall be in addition to
 1623  contributions specified in subparagraph 1.
 1624         3. All employers paying the salary of a DROP participant
 1625  filling a regularly established position shall contribute the
 1626  percent of such participant’s gross compensation required in s.
 1627  121.071(4), which shall constitute the employer’s health
 1628  insurance subsidy contribution with respect to such participant.
 1629  Such contributions shall be deposited by the administrator in
 1630  the Retiree Health Insurance Subsidy Trust Fund.
 1631         (j) Forfeiture of retirement benefits.—Nothing in this
 1632  section shall be construed to remove DROP participants from the
 1633  scope of s. 8(d), Art. II of the State Constitution, s.
 1634  112.3173, and paragraph (5)(f). DROP participants who commit a
 1635  specified felony offense while employed will be subject to
 1636  forfeiture of all retirement benefits, including DROP benefits,
 1637  pursuant to those provisions of law.
 1638         (k) Administration of program.—The division shall make such
 1639  rules as are necessary for the effective and efficient
 1640  administration of this subsection. The division shall not be
 1641  required to advise members of the federal tax consequences of an
 1642  election related to the DROP but may advise members to seek
 1643  independent advice.
 1644         (14) PAYMENT OF BENEFITS.—This subsection applies to the
 1645  payment of benefits to a payee (retiree or beneficiary) under
 1646  the Florida Retirement System:
 1647         (a) Federal income tax shall be withheld in accordance with
 1648  federal law, unless the payee elects otherwise on Form W-4P. The
 1649  division shall prepare and distribute to each recipient of
 1650  monthly retirement benefits an appropriate income tax form that
 1651  reflects the recipient’s income and federal income tax withheld
 1652  for the calendar year just ended.
 1653         (b) Subject to approval by the division in accordance with
 1654  rule 60S-4.015, Florida Administrative Code, a payee receiving
 1655  retirement benefits under the Florida Retirement System may also
 1656  have the following payments deducted from his or her monthly
 1657  benefit:
 1658         1. Premiums for life and health-related insurance policies
 1659  from approved companies.
 1660         2. Life insurance premiums for the State Group Life
 1661  Insurance Plan, if authorized in writing by the payee and by the
 1662  Department of Management Services.
 1663         3. Repayment of overpayments from the Florida Retirement
 1664  System Trust Fund, the State Employees’ Health Insurance Trust
 1665  Fund, or the State Employees’ Life Insurance Trust Fund, upon
 1666  notification of the payee.
 1667         4. Payments to an alternate payee for alimony, child
 1668  support, or division of marital assets pursuant to a qualified
 1669  domestic relations order under s. 222.21 or an income deduction
 1670  order under s. 61.1301.
 1671         5. Payments to the Internal Revenue Service for federal
 1672  income tax levies, upon notification of the division by the
 1673  Internal Revenue Service.
 1674         (c) A payee shall notify the division of any change in his
 1675  or her address. The division may suspend benefit payments to a
 1676  payee if correspondence sent to the payee’s mailing address is
 1677  returned due to an incorrect address. Benefit payments shall be
 1678  resumed upon notification to the division of the payee’s new
 1679  address.
 1680         (d) A payee whose retirement benefits are reduced by the
 1681  application of maximum benefit limits under s. 415(b) of the
 1682  Internal Revenue Code, as specified in s. 121.30(5), shall have
 1683  the portion of his or her calculated benefit in the Florida
 1684  Retirement System defined benefit plan which exceeds such
 1685  federal limitation paid through the Florida Retirement System
 1686  Preservation of Benefits Plan, as provided in s. 121.1001.
 1687         (e) No benefit may be reduced for the purpose of preserving
 1688  the member’s eligibility for a federal program.
 1689         (f) The division shall adopt rules establishing procedures
 1690  for determining that the persons to whom benefits are being paid
 1691  are still living. The division shall suspend the benefits being
 1692  paid to any payee when it is unable to contact such payee and to
 1693  confirm that he or she is still living.
 1694         Section 6. Section 121.122, Florida Statutes, is amended to
 1695  read:
 1696         121.122 Renewed membership in system.—
 1697         (1)A retiree of a state-administered retirement system who
 1698  is initially reemployed on or after January 1, 2010, is not
 1699  eligible for renewed membership.
 1700         (2) Except as provided in s. 121.053, effective July 1,
 1701  1991, through December 31, 2009, any retiree of a state
 1702  administered retirement system who is initially reemployed
 1703  employed in a regularly established position with a covered
 1704  employer shall be enrolled as a compulsory member of the Regular
 1705  Class of the Florida Retirement System or, effective July 1,
 1706  1997, through December 31, 2009, any retiree of a state
 1707  administered retirement system who is initially reemployed
 1708  employed in a position included in the Senior Management Service
 1709  Class shall be enrolled as a compulsory member of the Senior
 1710  Management Service Class of the Florida Retirement System as
 1711  provided in s. 121.055, and shall be entitled to receive an
 1712  additional retirement benefit, subject to the following
 1713  conditions:
 1714         (1)(a) Such member shall resatisfy the age and service
 1715  requirements as provided in this chapter for initial membership
 1716  under the system, unless such member elects to participate in
 1717  the Senior Management Service Optional Annuity Program in lieu
 1718  of the Senior Management Service Class, as provided in s.
 1719  121.055(6).
 1720         (b) Such member shall not be entitled to disability
 1721  benefits as provided in s. 121.091(4).
 1722         (c) Such member must meet the reemployment after retirement
 1723  limitations as provided in s. 121.091(9), as applicable.
 1724         (3)(2) Upon reemployment of a retiree renewed membership,
 1725  the employer of the such member shall pay the applicable
 1726  employer contributions as required by ss. 121.71, 121.74,
 1727  121.76, and 112.363 ss. 121.055(3) and 121.071(1)(a) and (4).
 1728         (4)(3)The retiree of a state-administered retirement
 1729  system who is initially reemployed before January 1, 2010, is
 1730  Such member shall be entitled to purchase additional retirement
 1731  credit in the Regular Class or the Senior Management Service
 1732  Class, as applicable, for any postretirement service performed
 1733  in a regularly established position as follows:
 1734         (a) For regular class service before prior to July 1, 1991,
 1735  by paying the Regular Class applicable employee and employer
 1736  contributions for the period being claimed, plus 4 percent
 1737  interest compounded annually from first year of service claimed
 1738  until July 1, 1975, and 6.5 percent interest compounded
 1739  thereafter, until full payment is made to the Florida Retirement
 1740  System Trust Fund; or
 1741         (b) For Senior Management Service Class before prior to
 1742  June 1, 1997, as provided in s. 121.055(1)(j).
 1743  
 1744  The contribution for postretirement service between July 1,
 1745  1985, and July 1, 1991, for which the reemployed retiree
 1746  contribution was paid, shall be the difference between such
 1747  contribution and the total applicable contribution for the
 1748  period being claimed, plus interest. The employer of such member
 1749  may pay the applicable employer contribution in lieu of the
 1750  member. If a member does not wish to claim credit for all of the
 1751  postretirement service for which he or she is eligible, the
 1752  service the member claims must be the most recent service.
 1753         (5)(4) No creditable service for which credit was received,
 1754  or which remained unclaimed, at retirement may be claimed or
 1755  applied toward service credit earned following renewed
 1756  membership. However, for retirees initially reemployed before
 1757  January 1, 2010, service earned as an elected officer with
 1758  renewed membership in the Elected Officers’ Class may be used in
 1759  conjunction with creditable service earned under this section,
 1760  provided the applicable vesting requirements and other existing
 1761  statutory conditions required by this chapter are met.
 1762         (6)(5) Notwithstanding any other limitations provided in
 1763  this section, a participant of the State University System
 1764  Optional Retirement Program, the State Community College
 1765  Optional Retirement Program, or the Senior Management Service
 1766  Optional Annuity Program who terminated employment and commenced
 1767  receiving a distribution an annuity under the provisions of the
 1768  optional program, who initially renews membership before January
 1769  1, 2010, in the Regular Class as required by this section upon
 1770  reemployment after retirement, and who had previously earned
 1771  creditable Florida Retirement System service that was not
 1772  included in any retirement benefit may include such previous
 1773  service toward vesting and service credit in the second career
 1774  benefit provided under renewed membership.
 1775         (7)(6) Any renewed member who is not receiving the maximum
 1776  health insurance subsidy provided in s. 112.363 shall be
 1777  entitled to earn additional credit toward the maximum health
 1778  insurance subsidy. Any additional subsidy due because of such
 1779  additional credit shall be received only at the time of payment
 1780  of the second career retirement benefit. In no case shall the
 1781  total health insurance subsidy received by a retiree receiving
 1782  benefits from initial and renewed membership exceed the maximum
 1783  allowed in s. 112.363.
 1784         Section 7. Paragraph (h) of subsection (3) and paragraphs
 1785  (a) and (e) of subsection (5) of section 121.35, Florida
 1786  Statutes, are amended, and paragraph (g) is added to subsection
 1787  (5) of that section, to read:
 1788         121.35 Optional retirement program for the State University
 1789  System.—
 1790         (3) ELECTION OF OPTIONAL PROGRAM.—
 1791         (h) A participant in the optional retirement program may
 1792  not participate in more than one state-administered retirement
 1793  system, plan, or class simultaneously. Except as provided in s.
 1794  121.052(6)(d), a participant who is or becomes dually employed
 1795  in two or more positions covered by the Florida Retirement
 1796  System, one of which is eligible for the optional program and
 1797  one of which is not, may remain a member of the optional program
 1798  and contributions shall be paid as required only on the salary
 1799  earned in the position eligible for the optional program during
 1800  such period of dual employment; or, within 90 days after
 1801  becoming dually employed, he or she may elect membership in the
 1802  Regular Class of the Florida Retirement System in lieu of the
 1803  optional program and contributions shall be paid as required on
 1804  the total salary received for all employment. At retirement, the
 1805  average final compensation used to calculate any benefits for
 1806  which the member becomes eligible under the Florida Retirement
 1807  System shall be based on all salary reported for both positions
 1808  during such period of dual employment. When such member ceases
 1809  to be dually employed, he or she may, within 90 days, elect to
 1810  remain in the Florida Retirement System class for which he or
 1811  she is eligible or to again become a participant in the optional
 1812  retirement program. Failure to elect membership in the optional
 1813  program within 90 days shall result in compulsory membership in
 1814  the Florida Retirement System, except that a member filling a
 1815  faculty position at under a college with a faculty practice plan
 1816  at the University of Florida, at or the Medical Center at the
 1817  University of South Florida, or other state university shall
 1818  again participate in the optional retirement program as required
 1819  in s. 121.051(1)(a).
 1820         (5) BENEFITS.—
 1821         (a) Benefits shall be payable under the optional retirement
 1822  program only to vested participants in the program, or their
 1823  beneficiaries as designated by the participant in the contract
 1824  with a provider company, and such benefits shall be paid only by
 1825  the designated company in accordance with s. 403(b) of the
 1826  Internal Revenue Code and in accordance with the terms of the
 1827  annuity contract or contracts applicable to the participant.
 1828  Benefits shall accrue in individual accounts that are
 1829  participant-directed, portable, and funded by employer
 1830  contributions and the earnings thereon. The participant must be
 1831  terminated from all employment with all Florida Retirement
 1832  System employers, as provided in s. 121.021(39), to begin
 1833  receiving the employer-funded benefit. Benefits funded by
 1834  employer contributions shall be payable in accordance with the
 1835  following terms and conditions:
 1836         1. Benefits shall be payable only to a participant, to his
 1837  or her beneficiaries, or to his or her estate, as designated by
 1838  the participant.
 1839         2. Benefits shall be paid by the provider company or
 1840  companies in accordance with the law, the provisions of the
 1841  contract, and any applicable department board rule or policy.
 1842         3. In the event of a participant’s death, moneys
 1843  accumulated by, or on behalf of, the participant, less
 1844  withholding taxes remitted to the Internal Revenue Service, if
 1845  any, shall be distributed to the participant’s designated
 1846  beneficiary or beneficiaries, or to the participant’s estate, as
 1847  if the participant retired on the date of death, as provided in
 1848  paragraph (c). No other death benefits shall be available for
 1849  survivors of participants under the optional retirement program
 1850  except for such benefits, or coverage for such benefits, as are
 1851  separately afforded by the employer, at the employer’s
 1852  discretion.
 1853         (e) A participant who chooses to receive his or her
 1854  benefits upon termination of employment as defined in s.
 1855  121.021(39) has the shall have responsibility to notify the
 1856  provider company of the date on which he or she wishes benefits
 1857  funded by employer contributions to begin. Benefits may be
 1858  deferred until such time as the participant chooses to make such
 1859  application.
 1860         (g)For purposes of this section, the term “retiree” means
 1861  a former participant of the optional retirement program who has
 1862  terminated employment and has taken a distribution, including a
 1863  rollover or trustee-to-trustee transfer, as provided in this
 1864  subsection, except for a mandatory distribution of a de minimis
 1865  account authorized by the department.
 1866         Section 8. Paragraph (f) of subsection (2) of section
 1867  121.4501, Florida Statutes, is amended to read:
 1868         121.4501 Public Employee Optional Retirement Program.—
 1869         (2) DEFINITIONS.—As used in this part, the term:
 1870         (f) “Eligible employee” means an officer or employee, as
 1871  defined in s. 121.021(11), who:
 1872         1. Is a member of, or is eligible for membership in, the
 1873  Florida Retirement System, including any renewed member of the
 1874  Florida Retirement System initially reemployed before January 1,
 1875  2010; or
 1876         2. Participates in, or is eligible to participate in, the
 1877  Senior Management Service Optional Annuity Program as
 1878  established under s. 121.055(6), the State Community College
 1879  System Optional Retirement Program as established under s.
 1880  121.051(2)(c), or the State University System Optional
 1881  Retirement Program established under s. 121.35.
 1882  
 1883  The term does not include any member participating in the
 1884  Deferred Retirement Option Program established under s.
 1885  121.091(13), a retiree of a state-administered retirement system
 1886  initially reemployed on or after January 1, 2010, or a mandatory
 1887  participant of the State University System Optional Retirement
 1888  Program established under s. 121.35.
 1889         Section 9. Paragraph (b) of subsection (1) of section
 1890  121.591, Florida Statutes, is amended to read:
 1891         121.591 Benefits payable under the Public Employee Optional
 1892  Retirement Program of the Florida Retirement System.—Benefits
 1893  may not be paid under this section unless the member has
 1894  terminated employment as provided in s. 121.021(39)(a) or is
 1895  deceased and a proper application has been filed in the manner
 1896  prescribed by the state board or the department. The state board
 1897  or department, as appropriate, may cancel an application for
 1898  retirement benefits when the member or beneficiary fails to
 1899  timely provide the information and documents required by this
 1900  chapter and the rules of the state board and department. In
 1901  accordance with their respective responsibilities as provided
 1902  herein, the State Board of Administration and the Department of
 1903  Management Services shall adopt rules establishing procedures
 1904  for application for retirement benefits and for the cancellation
 1905  of such application when the required information or documents
 1906  are not received. The State Board of Administration and the
 1907  Department of Management Services, as appropriate, are
 1908  authorized to cash out a de minimis account of a participant who
 1909  has been terminated from Florida Retirement System covered
 1910  employment for a minimum of 6 calendar months. A de minimis
 1911  account is an account containing employer contributions and
 1912  accumulated earnings of not more than $5,000 made under the
 1913  provisions of this chapter. Such cash-out must either be a
 1914  complete lump-sum liquidation of the account balance, subject to
 1915  the provisions of the Internal Revenue Code, or a lump-sum
 1916  direct rollover distribution paid directly to the custodian of
 1917  an eligible retirement plan, as defined by the Internal Revenue
 1918  Code, on behalf of the participant. If any financial instrument
 1919  issued for the payment of retirement benefits under this section
 1920  is not presented for payment within 180 days after the last day
 1921  of the month in which it was originally issued, the third-party
 1922  administrator or other duly authorized agent of the State Board
 1923  of Administration shall cancel the instrument and credit the
 1924  amount of the instrument to the suspense account of the Public
 1925  Employee Optional Retirement Program Trust Fund authorized under
 1926  s. 121.4501(6). Any such amounts transferred to the suspense
 1927  account are payable upon a proper application, not to include
 1928  earnings thereon, as provided in this section, within 10 years
 1929  after the last day of the month in which the instrument was
 1930  originally issued, after which time such amounts and any
 1931  earnings thereon shall be forfeited. Any such forfeited amounts
 1932  are assets of the Public Employee Optional Retirement Program
 1933  Trust Fund and are not subject to the provisions of chapter 717.
 1934         (1) NORMAL BENEFITS.—Under the Public Employee Optional
 1935  Retirement Program:
 1936         (b) If a participant elects to receive his or her benefits
 1937  upon termination of employment as defined in s. 121.021(39), the
 1938  participant must submit a written application or an equivalent
 1939  form to the third-party administrator indicating his or her
 1940  preferred distribution date and selecting an authorized method
 1941  of distribution as provided in paragraph (c). The participant
 1942  may defer receipt of benefits until he or she chooses to make
 1943  such application, subject to federal requirements.
 1944         Section 10. Sections 121.093 and 121.094, Florida Statutes,
 1945  are repealed.
 1946         Section 11. The Legislature finds that a proper and
 1947  legitimate state purpose is served when employees and retirees
 1948  of the state and its political subdivisions, as well as the
 1949  dependents, survivors, and beneficiaries of such employees and
 1950  retirees, are extended the basic protections afforded by
 1951  governmental retirement systems that provide fair and adequate
 1952  benefits and that are managed, administered, and funded in an
 1953  actuarially sound manner as required by s. 14, Art. X of the
 1954  State Constitution and part VII of chapter 112, Florida
 1955  Statutes. Therefore, the Legislature determines and declares
 1956  that the amendment of s. 121.091, Florida Statutes, by this act
 1957  fulfills an important state interest.
 1958         Section 12. This act shall take effect July 1, 2009.
 1959  
 1960  ================= T I T L E  A M E N D M E N T ================
 1961         And the title is amended as follows:
 1962         Delete everything before the enacting clause
 1963  and insert:
 1964                        A bill to be entitled                      
 1965         An act relating to the retirement; amending s.
 1966         121.021, F.S.; defining the term “retiree”; amending
 1967         s. 121.051, F.S.; conforming a cross-reference;
 1968         clarifying when a State Community College System
 1969         Optional Retirement Program participant is considered
 1970         a retiree; amending s. 121.053, F.S.; revising
 1971         membership criteria for renewed elected officials;
 1972         amending s. 121.055, F.S.; revising benefit payment
 1973         procedures for the Senior Management Service Optional
 1974         Annuity Program; clarifying when a participant is
 1975         considered retired; amending s. 121.091, F.S.;
 1976         revising and clarifying provisions relating to
 1977         retirement benefits; deleting a restriction on the
 1978         reemployment of certain personnel by the Florida
 1979         School for the Deaf and the Blind; extending the
 1980         period of time that instructional personnel employed
 1981         by a developmental research school may participate in
 1982         the Deferred Retirement Option Program (DROP);
 1983         authorizing developmental research school and charter
 1984         schools to reemploy certain retired members under
 1985         specified conditions; providing applicability;
 1986         clarifying that DROP participation cannot be canceled;
 1987         clarifying maximum DROP participation; providing for
 1988         the suspension of DROP benefits to a participant who
 1989         is reemployed; deleting obsolete provisions; amending
 1990         s. 121.122, F.S.; revising conditions under which a
 1991         retiree is entitled to certain additional retirement
 1992         benefits; amending s. 121.35, F.S.; revising a
 1993         compulsory membership exception for certain members
 1994         failing to elect membership in the optional retirement
 1995         program; defining the term “retiree” for purposes of
 1996         the State University System Optional Retirement
 1997         Program; repealing ss. 121.093 and 121.094, F.S.,
 1998         relating to instructional personnel reemployment after
 1999         retirement from a developmental research school or the
 2000         Florida School for the Deaf and the Blind that are
 2001         reenacted in s. 121.091, F.S., and relating to
 2002         instructional personnel reemployment after retirement
 2003         from a charter school that are reenacted in s.
 2004         121.091, F.S., respectively; providing a declaration
 2005         of important state interest; providing an effective
 2006         date.