Florida Senate - 2009                             CS for SB 1182
       
       
       
       By the Committee on Community Affairs; and Senators Fasano,
       Gaetz, and Dockery
       
       
       
       578-03857-09                                          20091182c1
    1                        A bill to be entitled                      
    2         An act relating to the state retirement system;
    3         amending s. 121.021, F.S.; defining the term
    4         “retiree”; amending s. 121.051, F.S.; conforming a
    5         cross-reference; clarifying when a State Community
    6         College System Optional Retirement Program participant
    7         is considered a retiree; amending s. 121.053, F.S.;
    8         revising membership criteria for renewed elected
    9         officials; amending s. 121.055, F.S.; revising benefit
   10         payment procedures for the Senior Management Service
   11         Optional Annuity Program; clarifying when a
   12         participant is considered retired; amending s.
   13         121.091, F.S.; revising and clarifying provisions
   14         relating to retirement benefits; deleting a
   15         restriction on the reemployment of certain personnel
   16         by the Florida School for the Deaf and the Blind;
   17         extending the period of time that instructional
   18         personnel employed by a developmental research school
   19         may participate in the Deferred Retirement Option
   20         Program (DROP); authorizing developmental research
   21         school and charter schools to reemploy certain retired
   22         members under specified conditions; providing
   23         applicability; clarifying that DROP participation
   24         cannot be canceled; clarifying maximum DROP
   25         participation; providing for the suspension of DROP
   26         benefits to a participant who is reemployed; deleting
   27         obsolete provisions; amending s. 121.122, F.S.;
   28         revising conditions under which a retiree is entitled
   29         to certain additional retirement benefits; amending s.
   30         121.35, F.S.; revising a compulsory membership
   31         exception for certain members failing to elect
   32         membership in the optional retirement program;
   33         amending s. 121.4501, F.S.; defining the term
   34         “retiree” for purposes of the State University System
   35         Optional Retirement Program; amending s. 121.591,
   36         F.S.; conforming provisions; repealing ss. 121.093 and
   37         121.094, F.S., relating to instructional personnel
   38         reemployment after retirement from a developmental
   39         research school or the Florida School for the Deaf and
   40         the Blind, the provisions of which are reenacted in s.
   41         121.091, F.S., and relating to instructional personnel
   42         reemployment after retirement from a charter school,
   43         the provisions of which are reenacted in s. 121.091,
   44         F.S., respectively; providing a declaration of
   45         important state interest; providing an effective date.
   46  
   47  Be It Enacted by the Legislature of the State of Florida:
   48  
   49         Section 1. Subsection (60) of section 121.021, Florida
   50  Statutes, is amended to read:
   51         121.021 Definitions.—The following words and phrases as
   52  used in this chapter have the respective meanings set forth
   53  unless a different meaning is plainly required by the context:
   54         (60) “Retiree” means:
   55         (a) A former member of the Florida Retirement System or an
   56  existing system who has terminated employment and is receiving
   57  benefit payments from the system in which he or she was a
   58  member. This term also includes a person who retired and is
   59  receiving benefits under s. 112.05 and a retiree under the
   60  Public Employee Optional Retirement Program defined in s.
   61  121.4501(2).
   62         (b)A former participant of the following programs who has
   63  received a distribution from the State Community College
   64  Optional Retirement Program as defined in s. 121.051(2)(c), the
   65  Senior Management Service Optional Annuity Program as defined in
   66  s. 121.055(6), an alternative program for local agency employer
   67  senior managers who withdrew from the Florida Retirement System
   68  under s. 121.055(1)(b), or the State University System
   69  Retirement Optional Retirement Program as defined in s.
   70  121.35(5)(g). A distribution is receiving funds that include
   71  employer contributions and associated earnings, whether received
   72  as a full or partial rollover, or trustee-to-trustee transfer,
   73  lump-sum payment, periodic payment, annuity payment, or any
   74  combination of these payment methods.
   75         Section 2. Paragraph (a) of subsection (1) and paragraphs
   76  (c) and (f) of subsection (2) of section 121.051, Florida
   77  Statutes, are amended to read:
   78         121.051 Participation in the system.—
   79         (1) COMPULSORY PARTICIPATION.—
   80         (a) The provisions of this law are shall be compulsory as
   81  to all officers and employees, except elected officers who meet
   82  the requirements of s. 121.052(3), who are employed on or after
   83  December 1, 1970, by of an employer other than those referred to
   84  in paragraph (2)(b), and each officer or employee, as a
   85  condition of employment, shall become a member of the system as
   86  of his or her date of employment, except that a person who is
   87  retired from any state retirement system and is reemployed on or
   88  after December 1, 1970, may not renew his or her membership in
   89  any state retirement system except as provided in s.
   90  121.091(4)(h) for a person who recovers from disability, and as
   91  provided in s. 121.091(9)(b)10. s. 121.091(9)(b)8. for a person
   92  who is elected to public office, and, effective July 1, 1991, as
   93  provided in s. 121.122 for all other retirees. Officers and
   94  employees of the University Athletic Association, Inc., a
   95  nonprofit association connected with the University of Florida,
   96  employed on and after July 1, 1979, may shall not participate in
   97  any state-supported retirement system.
   98         1. Any person appointed on or after July 1, 1989, to a
   99  faculty position in a college at the J. Hillis Miller Health
  100  Center at the University of Florida or the Medical Center at the
  101  University of South Florida which has a faculty practice plan
  102  provided by rule adopted by the Board of Regents may not
  103  participate in the Florida Retirement System. Effective July 1,
  104  2008, any person appointed thereafter to a faculty position,
  105  including clinical faculty, in a college at a state university
  106  that has a faculty practice plan authorized by the Board of
  107  Governors may not participate in the Florida Retirement System.
  108  A faculty member so appointed shall participate in the optional
  109  retirement program for the State University System
  110  notwithstanding the provisions of s. 121.35(2)(a).
  111         2. For purposes of this paragraph, the term “faculty
  112  position” is defined as a position assigned the principal
  113  responsibility of teaching, research, or public service
  114  activities or administrative responsibility directly related to
  115  the academic mission of the college. The term “clinical faculty”
  116  is defined as a faculty position appointment in conjunction with
  117  a professional position in a hospital or other clinical
  118  environment at a college. The term “faculty practice plan”
  119  includes professional services to patients, institutions, or
  120  other parties which are rendered by the clinical faculty
  121  employed by a college that has a faculty practice plan at a
  122  state university authorized by the Board of Governors.
  123         (2) OPTIONAL PARTICIPATION.—
  124         (c) Employees of public community colleges or charter
  125  technical career centers sponsored by public community colleges,
  126  as designated in s. 1000.21(3), who are members of the Regular
  127  Class of the Florida Retirement System and who comply with the
  128  criteria set forth in this paragraph and in s. 1012.875 may
  129  elect, in lieu of participating in the Florida Retirement
  130  System, to withdraw from the Florida Retirement System
  131  altogether and participate in an optional retirement program
  132  provided by the employing agency under s. 1012.875, to be known
  133  as the State Community College System Optional Retirement
  134  Program. Pursuant thereto:
  135         1. Through June 30, 2001, the cost to the employer for such
  136  annuity shall equal the normal cost portion of the employer
  137  retirement contribution which would be required if the employee
  138  were a member of the Regular Class defined benefit program, plus
  139  the portion of the contribution rate required by s. 112.363(8)
  140  that would otherwise be assigned to the Retiree Health Insurance
  141  Subsidy Trust Fund. Effective July 1, 2001, each employer shall
  142  contribute on behalf of each participant in the optional program
  143  an amount equal to 10.43 percent of the participant’s gross
  144  monthly compensation. The employer shall deduct an amount to
  145  provide for the administration of the optional retirement
  146  program. The employer providing the optional program shall
  147  contribute an additional amount to the Florida Retirement System
  148  Trust Fund equal to the unfunded actuarial accrued liability
  149  portion of the Regular Class contribution rate.
  150         2. The decision to participate in such an optional
  151  retirement program shall be irrevocable for as long as the
  152  employee holds a position eligible for participation, except as
  153  provided in subparagraph 3. Any service creditable under the
  154  Florida Retirement System shall be retained after the member
  155  withdraws from the Florida Retirement System; however,
  156  additional service credit in the Florida Retirement System shall
  157  not be earned while a member of the optional retirement program.
  158         3. An employee who has elected to participate in the
  159  optional retirement program shall have one opportunity, at the
  160  employee’s discretion, to choose to transfer from the optional
  161  retirement program to the defined benefit program of the Florida
  162  Retirement System or to the Public Employee Optional Retirement
  163  Program, subject to the terms of the applicable optional
  164  retirement program contracts.
  165         a. If the employee chooses to move to the Public Employee
  166  Optional Retirement Program, any contributions, interest, and
  167  earnings creditable to the employee under the State Community
  168  College System Optional Retirement Program shall be retained by
  169  the employee in the State Community College System Optional
  170  Retirement Program, and the applicable provisions of s.
  171  121.4501(4) shall govern the election.
  172         b. If the employee chooses to move to the defined benefit
  173  program of the Florida Retirement System, the employee shall
  174  receive service credit equal to his or her years of service
  175  under the State Community College System Optional Retirement
  176  Program.
  177         (I) The cost for such credit shall be an amount
  178  representing the present value of that employee’s accumulated
  179  benefit obligation for the affected period of service. The cost
  180  shall be calculated as if the benefit commencement occurs on the
  181  first date the employee would become eligible for unreduced
  182  benefits, using the discount rate and other relevant actuarial
  183  assumptions that were used to value the Florida Retirement
  184  System defined benefit plan liabilities in the most recent
  185  actuarial valuation. The calculation shall include any service
  186  already maintained under the defined benefit plan in addition to
  187  the years under the State Community College System Optional
  188  Retirement Program. The present value of any service already
  189  maintained under the defined benefit plan shall be applied as a
  190  credit to total cost resulting from the calculation. The
  191  division shall ensure that the transfer sum is prepared using a
  192  formula and methodology certified by an enrolled actuary.
  193         (II) The employee must transfer from his or her State
  194  Community College System Optional Retirement Program account and
  195  from other employee moneys as necessary, a sum representing the
  196  present value of that employee’s accumulated benefit obligation
  197  immediately following the time of such movement, determined
  198  assuming that attained service equals the sum of service in the
  199  defined benefit program and service in the State Community
  200  College System Optional Retirement Program.
  201         4. Participation in the optional retirement program shall
  202  be limited to those employees who satisfy the following
  203  eligibility criteria:
  204         a. The employee must be otherwise eligible for membership
  205  or renewed membership in the Regular Class of the Florida
  206  Retirement System, as provided in s. 121.021(11) and (12) or s.
  207  121.122.
  208         b. The employee must be employed in a full-time position
  209  classified in the Accounting Manual for Florida’s Public
  210  Community Colleges as:
  211         (I) Instructional; or
  212         (II) Executive Management, Instructional Management, or
  213  Institutional Management, if a community college determines that
  214  recruiting to fill a vacancy in the position is to be conducted
  215  in the national or regional market, and:
  216         (A) The duties and responsibilities of the position include
  217  either the formulation, interpretation, or implementation of
  218  policies; or
  219         (B) The duties and responsibilities of the position include
  220  the performance of functions that are unique or specialized
  221  within higher education and that frequently involve the support
  222  of the mission of the community college.
  223         c. The employee must be employed in a position not included
  224  in the Senior Management Service Class of the Florida Retirement
  225  System, as described in s. 121.055.
  226         5. A participant who receives a program distribution,
  227  including a rollover or trustee-to-trustee transfer, funded by
  228  employer contributions shall be deemed to be retired from a
  229  state-administered retirement system in the event of subsequent
  230  employment with any employer that participates in the Florida
  231  Retirement System. Participants in the program are subject to
  232  the same reemployment limitations, renewed membership
  233  provisions, and forfeiture provisions as are applicable to
  234  regular members of the Florida Retirement System under ss.
  235  121.091(9), 121.122, and 121.091(5), respectively.
  236         6. Eligible community college employees shall be compulsory
  237  members of the Florida Retirement System until, pursuant to the
  238  procedures set forth in s. 1012.875, a written election to
  239  withdraw from the Florida Retirement System and to participate
  240  in the State Community College System Optional Retirement
  241  Program is filed with the program administrator and received by
  242  the division.
  243         a. Any community college employee whose program eligibility
  244  results from initial employment shall be enrolled in the State
  245  Community College System Optional Retirement Program retroactive
  246  to the first day of eligible employment. The employer retirement
  247  contributions paid through the month of the employee plan change
  248  shall be transferred to the community college for the employee’s
  249  optional program account, and, effective the first day of the
  250  next month, the employer shall pay the applicable contributions
  251  based upon subparagraph 1.
  252         b. Any community college employee whose program eligibility
  253  results from a change in status due to the subsequent
  254  designation of the employee’s position as one of those specified
  255  in subparagraph 4. or due to the employee’s appointment,
  256  promotion, transfer, or reclassification to a position specified
  257  in subparagraph 4. shall be enrolled in the program upon the
  258  first day of the first full calendar month that such change in
  259  status becomes effective. The employer retirement contributions
  260  paid from the effective date through the month of the employee
  261  plan change shall be transferred to the community college for
  262  the employee’s optional program account, and, effective the
  263  first day of the next month, the employer shall pay the
  264  applicable contributions based upon subparagraph 1.
  265         7. Effective July 1, 2003, through December 31, 2008, any
  266  participant of the State Community College System Optional
  267  Retirement Program who has service credit in the defined benefit
  268  plan of the Florida Retirement System for the period between his
  269  or her first eligibility to transfer from the defined benefit
  270  plan to the optional retirement program and the actual date of
  271  transfer may, during his or her employment, elect to transfer to
  272  the optional retirement program a sum representing the present
  273  value of the accumulated benefit obligation under the defined
  274  benefit retirement program for such period of service credit.
  275  Upon such transfer, all such service credit previously earned
  276  under the defined benefit program of the Florida Retirement
  277  System during this period shall be nullified for purposes of
  278  entitlement to a future benefit under the defined benefit
  279  program of the Florida Retirement System.
  280         (f)1. Whenever an employer that participates in the Florida
  281  Retirement System undertakes the transfer, merger, or
  282  consolidation of governmental services or functions, the
  283  employer must notify the department at least 60 days before
  284  prior to such action and shall provide documentation as required
  285  by the department.
  286         2. When the agency to which a member’s employing unit is
  287  transferred, merged, or consolidated does not participate in the
  288  Florida Retirement System, a member shall elect in writing to
  289  remain in the Florida Retirement System or to transfer to the
  290  local retirement system operated by the such agency. If the such
  291  agency does not participate in a local retirement system, the
  292  member shall continue membership in the Florida Retirement
  293  System. In either case, the membership shall continue for as
  294  long as the member is employed by the agency to which his or her
  295  unit was transferred, merged, or consolidated.
  296         Section 3. Subsections (1) and (2) of section 121.053,
  297  Florida Statutes, are amended to read:
  298         121.053 Participation in the Elected Officers’ Class for
  299  retired members.—
  300         (1)(a)1.Any retiree of a state-administered retirement
  301  system who initially serves in an elective office in a regularly
  302  established position with a covered employer on or after January
  303  1, 2010, may not enroll in the Florida Retirement System as a
  304  renewed member.
  305         2.An elected officer who is elected or appointed to an
  306  elective office and is participating in the Deferred Retirement
  307  Option Program is subject to termination as provided in s.
  308  121.021(39)(b), and reemployment limitations as provided in s.
  309  121.091(9), upon completion of his or her DROP participation
  310  period. An elected official may defer termination as provided in
  311  subparagraph (c)5.
  312         (b)Any member who retired before January 1, 2010, under
  313  any existing system as defined in s. 121.021(2), and receives a
  314  benefit thereof, who is initially reemployed before January 1,
  315  2010, and who serves in an office covered by the Elected
  316  Officers’ Class for a period of at least 6 years, is entitled to
  317  receive an additional retirement benefit for such elected
  318  officer service before July 1, 1990, under the Elected Officers’
  319  Class of the Florida Retirement System, as follows:
  320         1.Upon completion of 6 or more years of creditable service
  321  in an office covered by the Elected Officers’ Class, as provided
  322  in s. 121.052, the member shall notify the administrator of his
  323  or her intent to purchase elected officer service before July 1,
  324  1990, and shall pay the member contribution applicable for the
  325  period being claimed, plus 4 percent interest compounded
  326  annually from the first year of service claimed until July 1,
  327  1975, and 6.5 percent interest compounded annually thereafter,
  328  until full payment is made to the Florida Retirement System
  329  Trust Fund; however, the member may purchase retirement credit
  330  under the Elected Officers’ Class only for such service as an
  331  elected officer.
  332         2.Upon payment of the amount specified in subparagraph 1.,
  333  the employer shall pay into the Florida Retirement System Trust
  334  Fund the applicable employer contribution for the period of
  335  elected officer service before to July 1, 1990, being claimed by
  336  the member, plus 4 percent interest compounded annually from the
  337  first year of service claimed until July 1, 1975, and 6.5
  338  percent interest compounded annually thereafter, until full
  339  payment is made to the Florida Retirement System Trust Fund.
  340         (c)Any retired member of the Florida Retirement System, or
  341  any existing system as defined in s. 121.021(2), who, on or
  342  after July 1, 1990, through December 31, 2009, is serving in, or
  343  is elected or appointed to, an elective office covered by the
  344  Elected Officers’ Class shall be enrolled in the appropriate
  345  subclass of the Elected Officers’ Class of the Florida
  346  Retirement System, and applicable contributions shall be paid
  347  into the Florida Retirement System Trust Fund as provided in s.
  348  121.052(7). Pursuant thereto: Any member who retired under any
  349  existing system as defined in s. 121.021(2), and receives a
  350  benefit thereof, and who serves in an office covered by the
  351  Elected Officers’ Class for a period of at least 6 years, shall
  352  be entitled to receive an additional retirement benefit for such
  353  elected officer service prior to July 1, 1990, under the Elected
  354  Officers’ Class of the Florida Retirement System, as follows:
  355         1.Upon completion of 6 or more years of creditable service
  356  in an office covered by the Elected Officers’ Class, s. 121.052,
  357  such member shall notify the administrator of his or her intent
  358  to purchase elected officer service prior to July 1, 1990, and
  359  shall pay the member contribution applicable for the period
  360  being claimed, plus 4 percent interest compounded annually from
  361  the first year of service claimed until July 1, 1975, and 6.5
  362  percent interest compounded annually thereafter, until full
  363  payment is made to the Florida Retirement System Trust Fund;
  364  however, such member may purchase retirement credit under the
  365  Elected Officers’ Class only for such service as an elected
  366  officer.
  367         2.Upon payment of the amount specified in subparagraph 1.,
  368  the employer shall pay into the Florida Retirement System Trust
  369  Fund the applicable employer contribution for the period of
  370  elected officer service prior to July 1, 1990, being claimed by
  371  the member, plus 4 percent interest compounded annually from the
  372  first year of service claimed until July 1, 1975, and 6.5
  373  percent interest compounded annually thereafter, until full
  374  payment is made to the Florida Retirement System Trust Fund.
  375         (b)Any retired member of the Florida Retirement System, or
  376  any existing system as defined in s. 121.021(2), who, on or
  377  after July 1, 1990, is serving in, or is elected or appointed
  378  to, an elective office covered by the Elected Officers’ Class
  379  shall be enrolled in the appropriate subclass of the Elected
  380  Officers’ Class of the Florida Retirement System, and applicable
  381  contributions shall be paid into the Florida Retirement System
  382  Trust Fund as provided in s. 121.052(7). Pursuant thereto:
  383         1. Any such retired member shall be eligible to continue to
  384  receive retirement benefits as well as compensation for the
  385  elected officer service for as long as he or she remains in an
  386  elective office covered by the Elected Officers’ Class.
  387         2. If any such member serves in an elective office covered
  388  by the Elected Officers’ Class and becomes vested under that
  389  class, he or she shall be entitled to receive an additional
  390  retirement benefit for such elected officer service.
  391         3. Such member shall be entitled to purchase additional
  392  retirement credit in the Elected Officers’ Class for any
  393  postretirement service performed in an elected position eligible
  394  for the Elected Officers’ Class before prior to July 1, 1990, or
  395  in the Regular Class for any postretirement service performed in
  396  any other regularly established position prior to July 1, 1991,
  397  by paying the applicable Elected Officers’ Class or Regular
  398  Class employee and employer contributions for the period being
  399  claimed, plus 4 percent interest compounded annually from the
  400  first year of service claimed until July 1, 1975, and 6.5
  401  percent interest compounded thereafter, until full payment is
  402  made to the Florida Retirement System Trust Fund. The
  403  contribution for postretirement Regular Class service between
  404  July 1, 1985, and July 1, 1991, for which the reemployed retiree
  405  contribution was paid, shall be the difference between such
  406  contribution and the total applicable contribution for the
  407  period being claimed, plus interest. The employer of such member
  408  may pay the applicable employer contribution in lieu of the
  409  member. If a member does not wish to claim credit for all of the
  410  postretirement service for which he or she is eligible, the
  411  service the member claims must be the most recent service.
  412         4. Creditable service for which credit was received, or
  413  which remained unclaimed, at retirement may not be claimed or
  414  applied toward service credit earned following renewed
  415  membership. However, service earned in accordance with the
  416  renewed membership provisions in s. 121.122 may be used in
  417  conjunction with creditable service earned under this paragraph,
  418  provided applicable vesting requirements and other existing
  419  statutory conditions required by this chapter are met.
  420         5. An elected officer who is elected or appointed to an
  421  elective office and is participating in the Deferred Retirement
  422  Option Program is not subject to termination as provided in s.
  423  121.021(39)(b), or reemployment limitations as provided in s.
  424  121.091(9), until the end of his or her current term of office
  425  or, if the officer is consecutively elected or reelected to an
  426  elective office eligible for coverage under the Florida
  427  Retirement System, until he or she no longer holds such an
  428  elective office, as follows:
  429         a. At the end of the 60-month DROP period:
  430         (I) The officer’s DROP account shall accrue no additional
  431  monthly benefits, but shall continue to earn interest as
  432  provided in s. 121.091(13).
  433         (II) No retirement contributions shall be required of the
  434  employer of the elected officer and no additional retirement
  435  credit shall be earned under the Florida Retirement System.
  436         b. Nothing herein shall prevent an elected officer from
  437  voluntarily terminating his or her elective office at any time
  438  and electing to receive his or her DROP proceeds. However, until
  439  termination requirements are fulfilled as provided in s.
  440  121.021(39), any elected officer whose termination limitations
  441  are extended by this section shall be ineligible for renewed
  442  membership in the system and shall receive no pension payments,
  443  DROP lump sum payments, or any other state payment other than
  444  the statutorily determined salary, travel, and per diem for the
  445  elective office.
  446         c. Upon termination, the officer shall receive his or her
  447  accumulated DROP account, plus interest, and shall accrue and
  448  commence receiving monthly retirement benefits, which shall be
  449  paid on a prospective basis only.
  450  
  451  However, an officer electing to participate in the Deferred
  452  Retirement Option Program on or before June 30, 2002, shall not
  453  be required to terminate and shall remain subject to the
  454  provisions of this subparagraph as adopted in section 1 of
  455  chapter 2001-235, Laws of Florida.
  456         (2) Upon attaining his or her normal retirement date and
  457  payment of the amount specified in paragraphs (1)(b) and (c)
  458  (1)(a) and (b), and upon application to the administrator of the
  459  intent to retire, the member shall receive a monthly benefit
  460  under this section, in addition to any benefits already being
  461  received, which shall commence on the last day of the month of
  462  retirement and be payable on the last day of the month
  463  thereafter during his or her lifetime. The amount of such
  464  monthly benefit shall be the total percentage of retirement
  465  credit purchased under this section multiplied by the member’s
  466  average monthly compensation as an elected officer, adjusted
  467  according to the option selected at retirement under s.
  468  121.091(6).
  469         Section 4. Paragraph (f) of subsection (1) and paragraphs
  470  (c) and (e) of subsection (6) of section 121.055, Florida
  471  Statutes, are amended to read:
  472         121.055 Senior Management Service Class.—There is hereby
  473  established a separate class of membership within the Florida
  474  Retirement System to be known as the “Senior Management Service
  475  Class,” which shall become effective February 1, 1987.
  476         (1)
  477         (f) Effective July 1, 1997:
  478         1. Except as provided in subparagraph 3., any elected state
  479  officer eligible for membership in the Elected Officers’ Class
  480  under s. 121.052(2)(a), (b), or (c) who elects membership in the
  481  Senior Management Service Class under s. 121.052(3)(c) may,
  482  within 6 months after assuming office or within 6 months after
  483  this act becomes a law for serving elected state officers, elect
  484  to participate in the Senior Management Service Optional Annuity
  485  Program, as provided in subsection (6), in lieu of membership in
  486  the Senior Management Service Class.
  487         2. Except as provided in subparagraph 3., any elected
  488  county officer of a local agency employer eligible for
  489  membership in the Elected Officers’ Class under s. 121.052(2)(d)
  490  who elects membership in the Senior Management Service Class
  491  under s. 121.052(3)(c) may, within 6 months after assuming
  492  office, or within 6 months after this act becomes a law for
  493  serving elected county officers of a local agency employer,
  494  elect to withdraw from the Florida Retirement System participate
  495  in a lifetime monthly annuity program, as provided in
  496  subparagraph (b)2., in lieu of membership in the Senior
  497  Management Service Class.
  498         3.Any retiree of a state-administered retirement system
  499  who is initially reemployed on or after January 1, 2010, as an
  500  elected official eligible for Elected Officers’ Class membership
  501  shall not be eligible for renewed membership in the Senior
  502  Management Service Class or in the Senior Management Service
  503  Optional Annuity Program as provided in subsection (6), or to
  504  withdraw from the Florida Retirement System as a renewed member
  505  as provided in subparagraph (b)2., as applicable, in lieu of
  506  Senior Management Service Class membership.
  507         (6)
  508         (c) Participation.—
  509         1. a. Except as provided in b., any eligible employee who
  510  is employed on or before February 1, 1987, may elect to
  511  participate in the optional annuity program in lieu of
  512  participation in the Senior Management Service Class. Such
  513  election shall be made in writing and filed with the department
  514  and the personnel officer of the employer on or before May 1,
  515  1987. Any eligible employee who is employed on or before
  516  February 1, 1987, and who fails to make an election to
  517  participate in the optional annuity program by May 1, 1987,
  518  shall be deemed to have elected membership in the Senior
  519  Management Service Class.
  520         b.Any retiree of a state-administered retirement system
  521  who is initially reemployed on or after January 1, 2010, is not
  522  eligible for renewed membership in the Senior Management Service
  523  Optional Annuity Program.
  524         2. Any employee who becomes eligible to participate in the
  525  optional annuity program by reason of initial employment
  526  commencing after February 1, 1987, may, within 90 days after the
  527  date of commencement of employment, elect to participate in the
  528  optional annuity program. Such election shall be made in writing
  529  and filed with the personnel officer of the employer. Any
  530  eligible employee who does not within 90 days after commencement
  531  of such employment elect to participate in the optional annuity
  532  program shall be deemed to have elected membership in the Senior
  533  Management Service Class.
  534         3. A person who is appointed to a position in the Senior
  535  Management Service Class and who is a member of an existing
  536  retirement system or the Special Risk or Special Risk
  537  Administrative Support Classes of the Florida Retirement System
  538  may elect to remain in such system or class in lieu of
  539  participation in the Senior Management Service Class or optional
  540  annuity program. Such election shall be made in writing and
  541  filed with the department and the personnel officer of the
  542  employer within 90 days of such appointment. Any eligible
  543  employee who fails to make an election to participate in the
  544  existing system, the Special Risk Class of the Florida
  545  Retirement System, the Special Risk Administrative Support Class
  546  of the Florida Retirement System, or the optional annuity
  547  program shall be deemed to have elected membership in the Senior
  548  Management Service Class.
  549         4. Except as provided in subparagraph 5., an employee’s
  550  election to participate in the optional annuity program is
  551  irrevocable as long as such employee continues to be employed in
  552  an eligible position and continues to meet the eligibility
  553  requirements set forth in this paragraph.
  554         5. Effective from July 1, 2002, through September 30, 2002,
  555  any active employee in a regularly established position who has
  556  elected to participate in the Senior Management Service Optional
  557  Annuity Program has one opportunity to choose to move from the
  558  Senior Management Service Optional Annuity Program to the
  559  Florida Retirement System defined benefit program.
  560         a. The election must be made in writing and must be filed
  561  with the department and the personnel officer of the employer
  562  before October 1, 2002, or, in the case of an active employee
  563  who is on a leave of absence on July 1, 2002, within 90 days
  564  after the conclusion of the leave of absence. This election is
  565  irrevocable.
  566         b. The employee will receive service credit under the
  567  defined benefit program of the Florida Retirement System equal
  568  to his or her years of service under the Senior Management
  569  Service Optional Annuity Program. The cost for such credit shall
  570  be an amount representing the present value of that employee’s
  571  accumulated benefit obligation for the affected period of
  572  service.
  573         c. The employee must transfer the total accumulated
  574  employer contributions and earnings on deposit in his or her
  575  Senior Management Service Optional Annuity Program account. If
  576  the transferred amount is not sufficient to pay the amount due,
  577  the employee must pay a sum representing the remainder of the
  578  amount due. In no case may the employee retain any employer
  579  contributions or earnings thereon from the Senior Management
  580  Service Optional Annuity Program account.
  581         (e) Benefits.—
  582         1. Benefits shall be payable under the Senior Management
  583  Service Optional Annuity Program only to participants in the
  584  program, or their beneficiaries as designated by the participant
  585  in the contract with a provider company, and such benefits shall
  586  be paid by the designated company in accordance with the terms
  587  of the annuity contract or contracts applicable to the
  588  participant. A participant must be terminated from all
  589  employment with all Florida Retirement System employers as
  590  provided in s. 121.021(39) to begin receiving the employer
  591  funded benefit. Benefits funded by employer contributions shall
  592  be payable under the terms of the contract only as a lifetime
  593  annuity to the participant, his or her beneficiary, or his or
  594  her estate, in addition to except for:
  595         a. A lump-sum payment to the beneficiary upon the death of
  596  the participant;
  597         b. A cash-out of a de minimis account upon the request of a
  598  former participant who has been terminated for a minimum of 6
  599  months from the employment that entitled him or her to optional
  600  annuity program participation. A de minimis account is an
  601  account with a provider company containing employer
  602  contributions and accumulated earnings of not more than $5,000
  603  made under the provisions of this chapter. Such cash-out must be
  604  a complete liquidation of the account balance with that company
  605  and is subject to the provisions of the Internal Revenue Code;
  606  or
  607         c.A mandatory distribution of a de minimis account of a
  608  former participant who has been terminated for a minimum of 6
  609  months from the employment that entitled him or her to optional
  610  annuity program participation as authorized by the department;
  611  or
  612         d.c. A lump-sum direct rollover distribution whereby all
  613  accrued benefits, plus interest and investment earnings, are
  614  paid from the participant’s account directly to the custodian of
  615  an eligible retirement plan, as defined in s. 402(c)(8)(B) of
  616  the Internal Revenue Code, on behalf of the participant.
  617  
  618  As used in this subparagraph, a “de minimis account” means an
  619  account with a provider company containing employer
  620  contributions and accumulated earnings of not more than $5,000
  621  made under this chapter.
  622         2. The benefits payable to any person under the Senior
  623  Management Service Optional Annuity Program, and any
  624  contribution accumulated under such program, shall not be
  625  subject to assignment, execution, or attachment or to any legal
  626  process whatsoever.
  627         3. Except as provided in subparagraph 4., a participant who
  628  terminates employment and receives a distribution, including a
  629  rollover or trustee-to-trustee transfer, optional annuity
  630  program benefits funded by employer contributions shall be
  631  deemed to be retired from a state-administered retirement system
  632  in the event of subsequent employment with any employer that
  633  participates in the Florida Retirement System.
  634         4.A participant who receives optional annuity program
  635  benefits funded by employer contributions as a mandatory
  636  distribution of a de minimis account authorized by the
  637  department will not be considered a retiree.
  638         Section 5. Subsections (9), (13), and (14) of section
  639  121.091, Florida Statutes, are amended to read:
  640         121.091 Benefits payable under the system.—Benefits may not
  641  be paid under this section unless the member has terminated
  642  employment as provided in s. 121.021(39)(a) or begun
  643  participation in the Deferred Retirement Option Program as
  644  provided in subsection (13), and a proper application has been
  645  filed in the manner prescribed by the department. The department
  646  may cancel an application for retirement benefits when the
  647  member or beneficiary fails to timely provide the information
  648  and documents required by this chapter and the department’s
  649  rules. The department shall adopt rules establishing procedures
  650  for application for retirement benefits and for the cancellation
  651  of such application when the required information or documents
  652  are not received.
  653         (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
  654         (a)Any person who is retired under this chapter, except
  655  under the disability retirement provisions of subsection (4),
  656  may be employed by any private employer or public employer that
  657  does not participate in a state-administered retirement system
  658  and may receive compensation from that employment without
  659  limiting or restricting in any way the retirement benefits
  660  payable to that person.
  661         (b)The limitations on receiving a retirement benefit while
  662  reemployed by an employer participating in a state-administered
  663  retirement system are:
  664         1.For retirements effective on or after January 1, 2010,
  665  or DROP participation ending on or after January 1, 2010, the
  666  retiree may not receive a retirement benefit if receiving salary
  667  or wages from reemployment with any agency participating in the
  668  Florida Retirement System subsequent to the date of retirement.
  669  However, a DROP participant may continue employment and receive
  670  a salary during the period of participation in DROP, as provided
  671  in subsection (13). Any person employed in violation of this
  672  subparagraph and any employing agency that employs or appoints
  673  such person without notifying the Division of Retirement to
  674  suspend retirement benefits are jointly and severally liable for
  675  any benefits paid during reemployment. To avoid liability, the
  676  employing agency must have a written statement from the retiree
  677  that he or she is not retired from a state-administered
  678  retirement system. Any retirement benefits received by a retired
  679  member while reemployed by an employer participating in a state
  680  administered retirement system must be repaid to the Florida
  681  Retirement System Trust Fund, and retirement benefits shall
  682  remain suspended until repayment is made.
  683         2.a.For retirements effective on or after January 1, 2010
  684  or DROP participation ending on or after January 1, 2010, there
  685  shall be no exceptions to reemployment limitations and the
  686  exceptions in subparagraphs (b)4. and 5. do not apply.
  687         b.For retirements effective before January 1, 2010, or
  688  DROP participation ending before January 1, 2010, a retiree may
  689  not receive a salary from reemployment with any agency
  690  participating in the Florida Retirement System and retirement
  691  benefits under this chapter for 12 calendar months immediately
  692  after retirement. However, a DROP participant may continue
  693  employment and receive a salary during the period of
  694  participation in DROP, as provided in subsection (13). Any
  695  person to whom the limitation in this subparagraph applies who
  696  is reemployed with any agency participating in the Florida
  697  Retirement System after he or she has been retired and met the
  698  definition of termination in s. 121.021(39), but before
  699  completion of the 12-month limitation period must give timely
  700  notice of this fact in writing to the employer and to the
  701  Division of Retirement and shall have his or her retirement
  702  benefits suspended while employed during the balance of the 12
  703  month limitation period unless the person exceeds the 780-hour
  704  reemployment limitation set forth in law. Any person employed in
  705  violation of this sub-subparagraph and any employing agency that
  706  employs or appoints such person without notifying the division
  707  to suspend retirement benefits are jointly and severally liable
  708  for any benefits paid during the reemployment limitation period.
  709  To avoid liability, the employing agency must have a written
  710  statement from the retiree that he or she is not retired from a
  711  state-administered retirement system. Any retirement benefits
  712  received by a retired member while reemployed during this
  713  reemployment limitation period must be repaid to the Florida
  714  Retirement System Trust Fund, and retirement benefits shall
  715  remain suspended until repayment is made. Benefits suspended
  716  beyond the reemployment limitation shall apply toward repayment
  717  of benefits received in violation of the reemployment
  718  limitation.
  719         3.a.A district school board may reemploy a retired member
  720  as a substitute or hourly teacher, education paraprofessional,
  721  transportation assistant, bus driver, or food service worker on
  722  a noncontractual basis after he or she has been retired and met
  723  the definition of termination in s. 121.021(39). A district
  724  school board may reemploy a retired member as instructional
  725  personnel, as defined in s. 1012.01(2)(a), on an annual
  726  contractual basis after he or she has met the definition of
  727  termination in s. 121.021(39). Any other retired member who is
  728  reemployed before meeting the definition of termination voids
  729  his or her application for retirement benefits. A district
  730  school board that reemploys such teachers, education
  731  paraprofessionals, transportation assistants, bus drivers, or
  732  food service workers is subject to the retirement contribution
  733  required by law.
  734         b.A community college board of trustees may reemploy a
  735  retired member as an adjunct instructor or as a participant in a
  736  phased retirement program within the Florida Community College
  737  System after he or she has been retired and met the definition
  738  of termination in s. 121.021(39). Any retired member who is
  739  reemployed within 1 calendar month after retirement voids his or
  740  her application for retirement benefits. A board of trustees
  741  that reemploys such instructors are subject to the retirement
  742  contribution required by law. A retired member may be reemployed
  743  as an adjunct instructor for no more than 780 hours during the
  744  first 12 calendar months of retirement. Any retired member
  745  reemployed for more than 780 hours during the first 12 months of
  746  retirement must give timely notice in writing to the employer
  747  and to the Division of Retirement of the date he or she will
  748  exceed the limitation. The division shall suspend his or her
  749  retirement benefits for the remainder of the 12-month limitation
  750  period. Any person employed in violation of this subparagraph
  751  and any employing agency that employs or appoints such person
  752  without notifying the division to suspend retirement benefits
  753  are jointly and severally liable for any benefits paid during
  754  the reemployment limitation period. The retiree must submit a
  755  written statement to the employing agency stating that he or she
  756  is not retired from a state-administered retirement system. Any
  757  retirement benefits received by a retired member while
  758  reemployed in excess of 780 hours during the 12-month limitation
  759  period must be repaid to the Florida Retirement System Trust
  760  Fund, and retirement benefits shall remain suspended until
  761  repayment is made. Benefits suspended beyond the end of the 12
  762  month limitation period shall apply toward repayment of benefits
  763  received in violation of the 780-hour reemployment limitation.
  764         c.The State University System may reemploy a retired
  765  member as an adjunct faculty member or as a participant in a
  766  phased retirement program within the State University System
  767  after the retired member has met the definition of termination
  768  in s. 121.021(39). Any retired member who is reemployed before
  769  meeting the definition of termination voids his or her
  770  application for retirement benefits. The State University System
  771  is subject to the retired contribution required in subparagraph
  772  3., as appropriate. A retired member may be reemployed as an
  773  adjunct faculty member or a participant in a phased retirement
  774  program for no more than 780 hours during the first 12 calendar
  775  months of his or her retirement. Any retired member reemployed
  776  for more than 780 hours during the 12-month limitation period
  777  shall give timely notice in writing to the employer and to the
  778  Division of Retirement of the date he or she will exceed the
  779  limitation. The division shall suspend his or her retirement
  780  benefits for the remainder of the 12-month limitation period.
  781  Any person employed in violation of this subparagraph and any
  782  employing agency that employs or appoints such person without
  783  notifying the division to suspend retirement benefits are
  784  jointly and severally liable for any benefits paid during the
  785  reemployment limitation period. The retiree must submit a
  786  written statement to the employing agency stating that he or she
  787  is not retired from a state-administered retirement system. Any
  788  retirement benefits received by a retired member while
  789  reemployed in excess of 780 hours during the first 12 months of
  790  retirement must be repaid to the Florida Retirement System Trust
  791  Fund, and retirement benefits remain suspended until repayment
  792  is made. Benefits suspended beyond the end of the retired
  793  member’s 12-month limitation period shall apply toward repayment
  794  of benefits received in violation of the 780-hour reemployment
  795  limitation.
  796         d.The Board of Trustees of the Florida School for the Deaf
  797  and the Blind may reemploy a retired member as a substitute
  798  teacher, substitute residential instructor, or substitute nurse
  799  on a noncontractual basis after he or she has met the definition
  800  of termination in s. 121.021(39). The Board of Trustees of the
  801  Florida School for the Deaf and the Blind may reemploy a retired
  802  member as instructional personnel, as defined in s. 1012.01(2),
  803  on an annual contractual basis after he or she has been retired
  804  and met the definition of termination in s. 121.021(39). Any
  805  retired member who is reemployed before meeting the definition
  806  of termination voids his or her application for retirement
  807  benefits. The Board of Trustees of the Florida School for the
  808  Deaf and the Blind reemploying such teachers, residential
  809  instructors, or nurses is subject to the retirement contribution
  810  required by this subparagraph.
  811         e.A developmental research school may reemploy a retired
  812  member as a substitute or hourly teacher or an education
  813  paraprofessional, as defined in s. 1012.01(2), on a
  814  noncontractual basis after he or she has been retired and met
  815  the definition of termination in s. 121.021(39). A developmental
  816  research school may reemploy a retired member as instructional
  817  personnel, as defined in s. 1012.01(2), on an annual contractual
  818  basis after he or she has been retired and met the definition of
  819  termination in s. 121.021(39). A developmental research school
  820  that reemploys retired teachers and education paraprofessionals
  821  are subject to the retirement contribution required by
  822  subparagraph 3.
  823         f.A charter school may reemploy a retired member as a
  824  substitute or hourly teacher on a noncontractual basis after he
  825  or she has been retired and met the definition of termination in
  826  s. 121.021(39). A charter school may reemploy a retired member
  827  as instructional personnel, as defined in s. 1012.01(2), on an
  828  annual contractual basis after he or she has been retired and
  829  met the definition of termination in s. 121.021(39). A charter
  830  school that reemploys such members is subject to the retirement
  831  contribution required by this subparagraph.
  832         g.An employing agency may reemploy a retired member as a
  833  firefighter or paramedic after the retired member has been
  834  retired and met the definition of termination in s. 121.021(39).
  835  Any retired member who is reemployed within 1 calendar month
  836  after retirement shall void his or her application for
  837  retirement benefits. The employing agency reemploying such
  838  firefighter or paramedic is subject to the retired contribution
  839  required in this subparagraph. Reemployment of a retired
  840  firefighter or paramedic is limited to no more than 780 hours
  841  during the first 12 calendar months of his or her retirement.
  842  Any retired member reemployed for more than 780 hours during the
  843  first 12 months of retirement must give timely notice in writing
  844  to the employer and to the Division of Retirement of the date he
  845  or she will exceed the limitation. The division shall suspend
  846  his or her retirement benefits for the remainder of the 12-month
  847  limitation period. Any person employed in violation of this
  848  subparagraph and any employing agency that employs or appoints
  849  such person without notifying the division to suspend retirement
  850  benefits are jointly and severally liable for any benefits paid
  851  during the reemployment limitation period. The retiree must
  852  submit a written statement to the employing agency stating that
  853  he or she is not retired from a state-administered retirement
  854  system. Any retirement benefits received by a retired member
  855  while reemployed in excess of 780 hours during the 12-month
  856  limitation period must be repaid to the Florida Retirement
  857  System Trust Fund, and retirement benefits shall remain
  858  suspended until repayment is made. Benefits suspended beyond the
  859  end of the 12-month limitation period shall apply toward
  860  repayment of benefits received in violation of the 780-hour
  861  reemployment limitation.
  862         4.a.The employment of a retiree or DROP participant of a
  863  state-administered retirement system does not affect the average
  864  final compensation or years of creditable service of the retiree
  865  or DROP participant.
  866         b.(I)Before to July 1, 1991, upon employment of any
  867  person, other than an elected officer as provided in s. 121.053,
  868  who is retired under a state-administered retirement program,
  869  the employer shall pay retirement contributions in an amount
  870  equal to the unfunded actuarial liability portion of the
  871  employer contribution which would be required for regular
  872  members of the Florida Retirement System.
  873         (II)For retirees initially reemployed from July 1, 1991,
  874  through December 31, 2009, contributions shall be made as
  875  provided in s. 121.122 for retirees who have renewed membership
  876  or as provided in subsection (13) for DROP participants.
  877         c.Any person who is retired under a state-administered
  878  retirement program and who is initially reemployed on or after
  879  January 1, 2010, may not renew membership in the Florida
  880  Retirement System. The employer shall pay retirement
  881  contributions in an amount equal to the unfunded actuarial
  882  liability portion of the employer contribution that would be
  883  required for active members of the Florida Retirement System in
  884  addition to the contributions required by s. 121.76.
  885         5.a.Any person who has retired and who is holding an
  886  elective public office or an appointment to an elective public
  887  office eligible for the Elected Officers’ Class on or after July
  888  1, 1990, and initially enrolled through December 31, 2009, shall
  889  be enrolled in the Florida Retirement System as provided in s.
  890  121.053(1)(c) or, if holding an elective public office that does
  891  not qualify for the Elected Officers’ Class on or after July 1,
  892  1991, and initially enrolled through December 31, 2009, shall be
  893  enrolled in the Florida Retirement System as provided in s.
  894  121.122, and shall continue to receive retirement benefits as
  895  well as compensation for the elected officer’s service for as
  896  long as he or she remains in elective office. However, any
  897  retired member who served in an elective office before July 1,
  898  1990, suspended his or her retirement benefit, and had his or
  899  her Florida Retirement System membership reinstated shall, upon
  900  retirement from such office, have his or her retirement benefit
  901  recalculated to include the additional service and compensation
  902  earned.
  903         b.A retiree with renewed membership established before
  904  January 1, 2010, and who is not receiving a benefit based on
  905  this service, who is elected or appointed to an elective office
  906  shall become a member of the Elected Officers’ Class or the
  907  Regular Class depending upon the designation for the position.
  908         c.A retiree who is elected or appointed to an elective
  909  office on or after January 1, 2010, and who is initially
  910  reemployed in a position covered by the Florida Retirement
  911  System shall not be enrolled in the Florida Retirement System
  912  and shall not receive retirement benefits after meeting the
  913  definition of termination in s. 121.021(39).
  914         6.Any person who is holding an elective public office
  915  which is covered by the Florida Retirement System and who is
  916  concurrently employed in nonelected covered employment may elect
  917  to retire while continuing employment in the elective public
  918  office if he or she terminates his or her nonelected covered
  919  employment.
  920         a.For retirements effective before January 1, 2010, or
  921  DROP participation ending before January 1, 2010, any person who
  922  exercises this election shall receive his or her retirement
  923  benefits in addition to the compensation of the elective office
  924  without regard to the time limitations otherwise provided in
  925  this subsection. A person who seeks to exercise the provisions
  926  of this subparagraph, as they existed before May 3, 1984, may
  927  not be deemed to be retired under those provisions unless the
  928  person is eligible to retire under the provisions of this
  929  subparagraph as amended by chapter 84-11, Laws of Florida.
  930         b.For retirements effective on or after January 1, 2010 or
  931  DROP participation ending on or after January 1, 2010, any
  932  person who exercises this election shall not receive his or her
  933  retirement benefits in addition to the compensation of the
  934  elective office.
  935         7.The limitations of this paragraph apply to reemployment
  936  in any capacity with an employer irrespective of the category of
  937  funds from which the person is compensated.
  938         8.This paragraph regarding reemployment after retirement
  939  applies to DROP participants effective upon termination from
  940  employment and the end of DROP participation.
  941         (c)This subsection applies to retirees, as defined in s.
  942  121.4501(2), of the Public Employee Optional Retirement Program
  943  created in part II, subject to the following conditions:
  944         1.Such retirees may not be reemployed with an employer
  945  participating in the Florida Retirement System as provided in
  946  paragraph (b) until the person has been retired for 3 calendar
  947  months, unless the participant has reached the normal retirement
  948  requirements of the defined benefit plan as provided in s.
  949  121.021(29).
  950         2.The retiree employed in violation of this subsection and
  951  any employing agency that employs or appoints such person shall
  952  be jointly and severally liable for reimbursement of any
  953  benefits paid to the retirement trust fund from which the
  954  benefits were paid, including the Retirement System Trust Fund
  955  and the Public Employee Optional Retirement Program Trust Fund,
  956  as appropriate. To be employed, the retiree must submit to the
  957  employing agency a written statement that he or she is not
  958  retired from a state-administered retirement system.
  959         (a)Any person who is retired under this chapter, except
  960  under the disability retirement provisions of subsection (4),
  961  may be employed by an employer that does not participate in a
  962  state-administered retirement system and may receive
  963  compensation from that employment without limiting or
  964  restricting in any way the retirement benefits payable to that
  965  person.
  966         (b)1.Any person who is retired under this chapter, except
  967  under the disability retirement provisions of subsection (4),
  968  may be reemployed by any private or public employer after
  969  retirement and receive retirement benefits and compensation from
  970  his or her employer without any limitations, except that a
  971  person may not receive both a salary from reemployment with any
  972  agency participating in the Florida Retirement System and
  973  retirement benefits under this chapter for a period of 12 months
  974  immediately subsequent to the date of retirement. However, a
  975  DROP participant shall continue employment and receive a salary
  976  during the period of participation in the Deferred Retirement
  977  Option Program, as provided in subsection (13).
  978         2.Any person to whom the limitation in subparagraph 1.
  979  applies who violates such reemployment limitation and who is
  980  reemployed with any agency participating in the Florida
  981  Retirement System before completion of the 12-month limitation
  982  period shall give timely notice of this fact in writing to the
  983  employer and to the division and shall have his or her
  984  retirement benefits suspended for the balance of the 12-month
  985  limitation period. Any person employed in violation of this
  986  paragraph and any employing agency which knowingly employs or
  987  appoints such person without notifying the Division of
  988  Retirement to suspend retirement benefits shall be jointly and
  989  severally liable for reimbursement to the retirement trust fund
  990  of any benefits paid during the reemployment limitation period.
  991  To avoid liability, such employing agency shall have a written
  992  statement from the retiree that he or she is not retired from a
  993  state-administered retirement system. Any retirement benefits
  994  received while reemployed during this reemployment limitation
  995  period shall be repaid to the retirement trust fund, and
  996  retirement benefits shall remain suspended until such repayment
  997  has been made. Benefits suspended beyond the reemployment
  998  limitation shall apply toward repayment of benefits received in
  999  violation of the reemployment limitation.
 1000         3.A district school board may reemploy a retired member as
 1001  a substitute or hourly teacher, education paraprofessional,
 1002  transportation assistant, bus driver, or food service worker on
 1003  a noncontractual basis after he or she has been retired for 1
 1004  calendar month, in accordance with s. 121.021(39). A district
 1005  school board may reemploy a retired member as instructional
 1006  personnel, as defined in s. 1012.01(2)(a), on an annual
 1007  contractual basis after he or she has been retired for 1
 1008  calendar month, in accordance with s. 121.021(39). Any other
 1009  retired member who is reemployed within 1 calendar month after
 1010  retirement shall void his or her application for retirement
 1011  benefits. District school boards reemploying such teachers,
 1012  education paraprofessionals, transportation assistants, bus
 1013  drivers, or food service workers are subject to the retirement
 1014  contribution required by subparagraph 7.
 1015         4.A community college board of trustees may reemploy a
 1016  retired member as an adjunct instructor, that is, an instructor
 1017  who is noncontractual and part-time, or as a participant in a
 1018  phased retirement program within the Florida Community College
 1019  System, after he or she has been retired for 1 calendar month,
 1020  in accordance with s. 121.021(39). Any retired member who is
 1021  reemployed within 1 calendar month after retirement shall void
 1022  his or her application for retirement benefits. Boards of
 1023  trustees reemploying such instructors are subject to the
 1024  retirement contribution required in subparagraph 7. A retired
 1025  member may be reemployed as an adjunct instructor for no more
 1026  than 780 hours during the first 12 months of retirement. Any
 1027  retired member reemployed for more than 780 hours during the
 1028  first 12 months of retirement shall give timely notice in
 1029  writing to the employer and to the division of the date he or
 1030  she will exceed the limitation. The division shall suspend his
 1031  or her retirement benefits for the remainder of the first 12
 1032  months of retirement. Any person employed in violation of this
 1033  subparagraph and any employing agency which knowingly employs or
 1034  appoints such person without notifying the Division of
 1035  Retirement to suspend retirement benefits shall be jointly and
 1036  severally liable for reimbursement to the retirement trust fund
 1037  of any benefits paid during the reemployment limitation period.
 1038  To avoid liability, such employing agency shall have a written
 1039  statement from the retiree that he or she is not retired from a
 1040  state-administered retirement system. Any retirement benefits
 1041  received by a retired member while reemployed in excess of 780
 1042  hours during the first 12 months of retirement shall be repaid
 1043  to the Retirement System Trust Fund, and retirement benefits
 1044  shall remain suspended until repayment is made. Benefits
 1045  suspended beyond the end of the retired member’s first 12 months
 1046  of retirement shall apply toward repayment of benefits received
 1047  in violation of the 780-hour reemployment limitation.
 1048         5.The State University System may reemploy a retired
 1049  member as an adjunct faculty member or as a participant in a
 1050  phased retirement program within the State University System
 1051  after the retired member has been retired for 1 calendar month,
 1052  in accordance with s. 121.021(39). Any retired member who is
 1053  reemployed within 1 calendar month after retirement shall void
 1054  his or her application for retirement benefits. The State
 1055  University System is subject to the retired contribution
 1056  required in subparagraph 7., as appropriate. A retired member
 1057  may be reemployed as an adjunct faculty member or a participant
 1058  in a phased retirement program for no more than 780 hours during
 1059  the first 12 months of his or her retirement. Any retired member
 1060  reemployed for more than 780 hours during the first 12 months of
 1061  retirement shall give timely notice in writing to the employer
 1062  and to the division of the date he or she will exceed the
 1063  limitation. The division shall suspend his or her retirement
 1064  benefits for the remainder of the first 12 months of retirement.
 1065  Any person employed in violation of this subparagraph and any
 1066  employing agency which knowingly employs or appoints such person
 1067  without notifying the Division of Retirement to suspend
 1068  retirement benefits shall be jointly and severally liable for
 1069  reimbursement to the retirement trust fund of any benefits paid
 1070  during the reemployment limitation period. To avoid liability,
 1071  such employing agency shall have a written statement from the
 1072  retiree that he or she is not retired from a state-administered
 1073  retirement system. Any retirement benefits received by a retired
 1074  member while reemployed in excess of 780 hours during the first
 1075  12 months of retirement shall be repaid to the Retirement System
 1076  Trust Fund, and retirement benefits shall remain suspended until
 1077  repayment is made. Benefits suspended beyond the end of the
 1078  retired member’s first 12 months of retirement shall apply
 1079  toward repayment of benefits received in violation of the 780
 1080  hour reemployment limitation.
 1081         6.The Board of Trustees of the Florida School for the Deaf
 1082  and the Blind may reemploy a retired member as a substitute
 1083  teacher, substitute residential instructor, or substitute nurse
 1084  on a noncontractual basis after he or she has been retired for 1
 1085  calendar month, in accordance with s. 121.021(39). Any retired
 1086  member who is reemployed within 1 calendar month after
 1087  retirement shall void his or her application for retirement
 1088  benefits. The Board of Trustees of the Florida School for the
 1089  Deaf and the Blind reemploying such teachers, residential
 1090  instructors, or nurses is subject to the retirement contribution
 1091  required by subparagraph 7. Reemployment of a retired member as
 1092  a substitute teacher, substitute residential instructor, or
 1093  substitute nurse is limited to 780 hours during the first 12
 1094  months of his or her retirement. Any retired member reemployed
 1095  for more than 780 hours during the first 12 months of retirement
 1096  shall give timely notice in writing to the employer and to the
 1097  division of the date he or she will exceed the limitation. The
 1098  division shall suspend his or her retirement benefits for the
 1099  remainder of the first 12 months of retirement. Any person
 1100  employed in violation of this subparagraph and any employing
 1101  agency which knowingly employs or appoints such person without
 1102  notifying the Division of Retirement to suspend retirement
 1103  benefits shall be jointly and severally liable for reimbursement
 1104  to the retirement trust fund of any benefits paid during the
 1105  reemployment limitation period. To avoid liability, such
 1106  employing agency shall have a written statement from the retiree
 1107  that he or she is not retired from a state-administered
 1108  retirement system. Any retirement benefits received by a retired
 1109  member while reemployed in excess of 780 hours during the first
 1110  12 months of retirement shall be repaid to the Retirement System
 1111  Trust Fund, and his or her retirement benefits shall remain
 1112  suspended until payment is made. Benefits suspended beyond the
 1113  end of the retired member’s first 12 months of retirement shall
 1114  apply toward repayment of benefits received in violation of the
 1115  780-hour reemployment limitation.
 1116         7.The employment by an employer of any retiree or DROP
 1117  participant of any state-administered retirement system shall
 1118  have no effect on the average final compensation or years of
 1119  creditable service of the retiree or DROP participant. Prior to
 1120  July 1, 1991, upon employment of any person, other than an
 1121  elected officer as provided in s. 121.053, who has been retired
 1122  under any state-administered retirement program, the employer
 1123  shall pay retirement contributions in an amount equal to the
 1124  unfunded actuarial liability portion of the employer
 1125  contribution which would be required for regular members of the
 1126  Florida Retirement System. Effective July 1, 1991, contributions
 1127  shall be made as provided in s. 121.122 for retirees with
 1128  renewed membership or subsection (13) with respect to DROP
 1129  participants.
 1130         8.Any person who has previously retired and who is holding
 1131  an elective public office or an appointment to an elective
 1132  public office eligible for the Elected Officers’ Class on or
 1133  after July 1, 1990, shall be enrolled in the Florida Retirement
 1134  System as provided in s. 121.053(1)(b) or, if holding an
 1135  elective public office that does not qualify for the Elected
 1136  Officers’ Class on or after July 1, 1991, shall be enrolled in
 1137  the Florida Retirement System as provided in s. 121.122, and
 1138  shall continue to receive retirement benefits as well as
 1139  compensation for the elected officer’s service for as long as he
 1140  or she remains in elective office. However, any retired member
 1141  who served in an elective office prior to July 1, 1990,
 1142  suspended his or her retirement benefit, and had his or her
 1143  Florida Retirement System membership reinstated shall, upon
 1144  retirement from such office, have his or her retirement benefit
 1145  recalculated to include the additional service and compensation
 1146  earned.
 1147         9.Any person who is holding an elective public office
 1148  which is covered by the Florida Retirement System and who is
 1149  concurrently employed in nonelected covered employment may elect
 1150  to retire while continuing employment in the elective public
 1151  office, provided that he or she shall be required to terminate
 1152  his or her nonelected covered employment. Any person who
 1153  exercises this election shall receive his or her retirement
 1154  benefits in addition to the compensation of the elective office
 1155  without regard to the time limitations otherwise provided in
 1156  this subsection. No person who seeks to exercise the provisions
 1157  of this subparagraph, as the same existed prior to May 3, 1984,
 1158  shall be deemed to be retired under those provisions, unless
 1159  such person is eligible to retire under the provisions of this
 1160  subparagraph, as amended by chapter 84-11, Laws of Florida.
 1161         10.The limitations of this paragraph apply to reemployment
 1162  in any capacity with an “employer” as defined in s. 121.021(10),
 1163  irrespective of the category of funds from which the person is
 1164  compensated.
 1165         11.An employing agency may reemploy a retired member as a
 1166  firefighter or paramedic after the retired member has been
 1167  retired for 1 calendar month, in accordance with s. 121.021(39).
 1168  Any retired member who is reemployed within 1 calendar month
 1169  after retirement shall void his or her application for
 1170  retirement benefits. The employing agency reemploying such
 1171  firefighter or paramedic is subject to the retired contribution
 1172  required in subparagraph 8. Reemployment of a retired
 1173  firefighter or paramedic is limited to no more than 780 hours
 1174  during the first 12 months of his or her retirement. Any retired
 1175  member reemployed for more than 780 hours during the first 12
 1176  months of retirement shall give timely notice in writing to the
 1177  employer and to the division of the date he or she will exceed
 1178  the limitation. The division shall suspend his or her retirement
 1179  benefits for the remainder of the first 12 months of retirement.
 1180  Any person employed in violation of this subparagraph and any
 1181  employing agency which knowingly employs or appoints such person
 1182  without notifying the Division of Retirement to suspend
 1183  retirement benefits shall be jointly and severally liable for
 1184  reimbursement to the Retirement System Trust Fund of any
 1185  benefits paid during the reemployment limitation period. To
 1186  avoid liability, such employing agency shall have a written
 1187  statement from the retiree that he or she is not retired from a
 1188  state-administered retirement system. Any retirement benefits
 1189  received by a retired member while reemployed in excess of 780
 1190  hours during the first 12 months of retirement shall be repaid
 1191  to the Retirement System Trust Fund, and retirement benefits
 1192  shall remain suspended until repayment is made. Benefits
 1193  suspended beyond the end of the retired member’s first 12 months
 1194  of retirement shall apply toward repayment of benefits received
 1195  in violation of the 780-hour reemployment limitation.
 1196         (c)The provisions of this subsection apply to retirees, as
 1197  defined in s. 121.4501(2)(j), of the Public Employee Optional
 1198  Retirement Program created in part II, subject to the following
 1199  conditions:
 1200         1.Such retirees may not be reemployed with an employer
 1201  participating in the Florida Retirement System as provided in
 1202  paragraph (b) until such person has been retired for 3 calendar
 1203  months, unless the participant has reached the normal retirement
 1204  requirements of the defined benefit plan as provided in s.
 1205  121.021(29).
 1206         2.Such retiree employed in violation of this subsection
 1207  and any employing agency that knowingly employs or appoints such
 1208  person shall be jointly and severally liable for reimbursement
 1209  of any benefits paid to the retirement trust fund from which the
 1210  benefits were paid, including the Retirement System Trust Fund
 1211  and the Public Employee Optional Retirement Program Trust Fund,
 1212  as appropriate. To avoid liability, such employing agency must
 1213  have a written statement from the retiree that he or she is not
 1214  retired from a state-administered retirement system.
 1215         (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
 1216  subject to the provisions of this section, the Deferred
 1217  Retirement Option Program, hereinafter referred to as the DROP,
 1218  is a program under which an eligible member of the Florida
 1219  Retirement System may elect to participate, deferring receipt of
 1220  retirement benefits while continuing employment with his or her
 1221  Florida Retirement System employer. The deferred monthly
 1222  benefits shall accrue in the Florida Retirement System Trust
 1223  Fund on behalf of the participant, plus interest compounded
 1224  monthly, for the specified period of the DROP participation, as
 1225  provided in paragraph (c). Upon termination of employment, the
 1226  participant shall receive the total DROP benefits and begin to
 1227  receive the previously determined normal retirement benefits.
 1228  Participation in the DROP does not guarantee employment for the
 1229  specified period of DROP. Participation in the DROP by an
 1230  eligible member beyond the initial 60-month period as authorized
 1231  in this subsection shall be on an annual contractual basis for
 1232  all participants.
 1233         (a) Eligibility of member to participate in the DROP.—All
 1234  active Florida Retirement System members in a regularly
 1235  established position, and all active members of either the
 1236  Teachers’ Retirement System established in chapter 238 or the
 1237  State and County Officers’ and Employees’ Retirement System
 1238  established in chapter 122, which systems are consolidated
 1239  within the Florida Retirement System under s. 121.011, are
 1240  eligible to elect participation in the DROP if provided that:
 1241         1. The member is not a renewed member of the Florida
 1242  Retirement System under s. 121.122, or a member of the State
 1243  Community College System Optional Retirement Program under s.
 1244  121.051, the Senior Management Service Optional Annuity Program
 1245  under s. 121.055, or the optional retirement program for the
 1246  State University System under s. 121.35.
 1247         2. Except as provided in subparagraph 6., election to
 1248  participate is made within 12 months immediately following the
 1249  date on which the member first reaches normal retirement date,
 1250  or, for a member who reaches normal retirement date based on
 1251  service before he or she reaches age 62, or age 55 for Special
 1252  Risk Class members, election to participate may be deferred to
 1253  the 12 months immediately following the date the member attains
 1254  57, or age 52 for Special Risk Class members. A member who
 1255  delays DROP participation during the 12-month period immediately
 1256  following his or her maximum DROP deferral date, except as
 1257  provided in subparagraph 6., loses a month of DROP participation
 1258  for each month delayed. For a member who first reached normal
 1259  retirement date or the deferred eligibility date described above
 1260  prior to the effective date of this section, election to
 1261  participate shall be made within 12 months after the effective
 1262  date of this section. A member who fails to make an election
 1263  within the such 12-month limitation period forfeits shall
 1264  forfeit all rights to participate in the DROP. The member shall
 1265  advise his or her employer and the division in writing of the
 1266  date on which the DROP begins shall begin. The Such beginning
 1267  date may be subsequent to the 12-month election period, but must
 1268  be within the original 60-month participation or, with respect
 1269  to members who are instructional personnel employed by the
 1270  Florida School for the Deaf and the Blind and who have received
 1271  authorization by the Board of Trustees of the Florida School for
 1272  the Deaf and the Blind to participate in the DROP beyond 60
 1273  months, or who are instructional personnel as defined in s.
 1274  1012.01(2)(a)-(d) in grades K-12 and who have received
 1275  authorization by the district school superintendent to
 1276  participate in the DROP beyond 60 months, the 96-month
 1277  limitation period as provided in subparagraph (b)1. When
 1278  establishing eligibility of the member to participate in the
 1279  DROP for the 60-month or, with respect to members who are
 1280  instructional personnel employed by the Florida School for the
 1281  Deaf and the Blind and who have received authorization by the
 1282  Board of Trustees of the Florida School for the Deaf and the
 1283  Blind to participate in the DROP beyond 60 months, or who are
 1284  instructional personnel as defined in s. 1012.01(2)(a)-(d) in
 1285  grades K-12 and who have received authorization by the district
 1286  school superintendent to participate in the DROP beyond 60
 1287  months, the 96-month maximum participation period, the member
 1288  may elect to include or exclude any optional service credit
 1289  purchased by the member from the total service used to establish
 1290  the normal retirement date. A member who has with dual normal
 1291  retirement dates is shall be eligible to elect to participate in
 1292  DROP within 12 months after attaining normal retirement date in
 1293  either class.
 1294         3. The employer of a member electing to participate in the
 1295  DROP, or employers if dually employed, shall acknowledge in
 1296  writing to the division the date the member’s participation in
 1297  the DROP begins and the date the member’s employment and DROP
 1298  participation will terminate.
 1299         4. Simultaneous employment of a participant by additional
 1300  Florida Retirement System employers subsequent to the
 1301  commencement of participation in the DROP is shall be
 1302  permissible if the provided such employers acknowledge in
 1303  writing a DROP termination date no later than the participant’s
 1304  existing termination date or the 60-month limitation period as
 1305  provided in subparagraph (b)1.
 1306         5. A DROP participant may change employers while
 1307  participating in the DROP, subject to the following:
 1308         a. A change of employment must take place without a break
 1309  in service so that the member receives salary for each month of
 1310  continuous DROP participation. If a member receives no salary
 1311  during a month, DROP participation shall cease unless the
 1312  employer verifies a continuation of the employment relationship
 1313  for such participant pursuant to s. 121.021(39)(b).
 1314         b. Such participant and new employer shall notify the
 1315  division of the identity of the new employer on forms required
 1316  by the division as to the identity of the new employer.
 1317         c. The new employer shall acknowledge, in writing, the
 1318  participant’s DROP termination date, which may be extended but
 1319  not beyond the maximum participation original 60-month or, with
 1320  respect to members who are instructional personnel employed by
 1321  the Florida School for the Deaf and the Blind and who have
 1322  received authorization by the Board of Trustees of the Florida
 1323  School for the Deaf and the Blind to participate in the DROP
 1324  beyond 60 months, or who are instructional personnel as defined
 1325  in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
 1326  authorization by the district school superintendent to
 1327  participate in the DROP beyond 60 months, the 96-month period
 1328  provided in subparagraph (b)1., shall acknowledge liability for
 1329  any additional retirement contributions and interest required if
 1330  the participant fails to timely terminate employment, and is
 1331  shall be subject to the adjustment required in sub-subparagraph
 1332  (c)5.d.
 1333         6. Effective July 1, 2001, for instructional personnel as
 1334  defined in s. 1012.01(2), election to participate in the DROP is
 1335  shall be made at any time following the date on which the member
 1336  first reaches normal retirement date. The member shall advise
 1337  his or her employer and the division in writing of the date on
 1338  which DROP begins the Deferred Retirement Option Program shall
 1339  begin. When establishing eligibility of the member to
 1340  participate in the DROP for the 60-month or, with respect to
 1341  members who are instructional personnel employed by the Florida
 1342  School for the Deaf and the Blind and who have received
 1343  authorization by the Board of Trustees of the Florida School for
 1344  the Deaf and the Blind to participate in the DROP beyond 60
 1345  months, or who are instructional personnel as defined in s.
 1346  1012.01(2)(a)-(d) in grades K-12 and who have received
 1347  authorization by the district school superintendent to
 1348  participate in the DROP beyond 60 months, the 96-month maximum
 1349  participation period, as provided in subparagraph (b)1., the
 1350  member may elect to include or exclude any optional service
 1351  credit purchased by the member from the total service used to
 1352  establish the normal retirement date. A member who has with dual
 1353  normal retirement dates is shall be eligible to elect to
 1354  participate in either class.
 1355         (b) Participation in the DROP.—
 1356         1.a.Except as provided in sub-subparagraph b., an eligible
 1357  member may elect to participate in the DROP for a period not to
 1358  exceed a maximum of 60 calendar months. or, with respect to
 1359         b. Members who are instructional personnel employed by the
 1360  Florida School for the Deaf and the Blind and authorized who
 1361  have received authorization by the Board of Trustees of the
 1362  Florida School for the Deaf and the Blind to participate in the
 1363  DROP beyond 60 months, or who are instructional personnel as
 1364  defined in s. 1012.01(2)(a)-(d) in grades K-12 and authorized
 1365  who have received authorization by the district school
 1366  superintendent to participate in the DROP beyond 60 calendar
 1367  months, or who are instructional personnel as defined in s.
 1368  1012.01(2) employed by a developmental research school and
 1369  authorized by the school’s director, or if the school has no
 1370  director, by the school’s principal, may participate in DROP for
 1371  up to 36 calendar months beyond the 60-month period specified in
 1372  sub-subparagraph a. 96 calendar months immediately following the
 1373  date on which the member first reaches his or her normal
 1374  retirement date or the date to which he or she is eligible to
 1375  defer his or her election to participate as provided in
 1376  subparagraph (a)2. However, a member who has reached normal
 1377  retirement date prior to the effective date of the DROP shall be
 1378  eligible to participate in the DROP for a period of time not to
 1379  exceed 60 calendar months or, with respect to members who are
 1380  instructional personnel employed by the Florida School for the
 1381  Deaf and the Blind and who have received authorization by the
 1382  Board of Trustees of the Florida School for the Deaf and the
 1383  Blind to participate in the DROP beyond 60 months, or who are
 1384  instructional personnel as defined in s. 1012.01(2)(a)-(d) in
 1385  grades K-12 and who have received authorization by the district
 1386  school superintendent to participate in the DROP beyond 60
 1387  calendar months, 96 calendar months immediately following the
 1388  effective date of the DROP, except a member of the Special Risk
 1389  Class who has reached normal retirement date prior to the
 1390  effective date of the DROP and whose total accrued value exceeds
 1391  75 percent of average final compensation as of his or her
 1392  effective date of retirement shall be eligible to participate in
 1393  the DROP for no more than 36 calendar months immediately
 1394  following the effective date of the DROP.
 1395         2. Upon deciding to participate in the DROP, the member
 1396  shall submit, on forms required by the division:
 1397         a. A written election to participate in the DROP;
 1398         b. Selection of the DROP participation and termination
 1399  dates, which satisfy the limitations stated in paragraph (a) and
 1400  subparagraph 1. The Such termination date must shall be in a
 1401  binding letter of resignation to with the employer, establishing
 1402  a deferred termination date. The member may change the
 1403  termination date within the limitations of subparagraph 1., but
 1404  only with the written approval of the his or her employer;
 1405         c. A properly completed DROP application for service
 1406  retirement as provided in this section; and
 1407         d. Any other information required by the division.
 1408         3. The DROP participant is shall be a retiree under the
 1409  Florida Retirement System for all purposes, except for paragraph
 1410  (5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
 1411  and 121.122. DROP participation is final and cannot be canceled
 1412  by the participant after the first payment is credited during
 1413  the DROP participation period. However, participation in the
 1414  DROP does not alter the participant’s employment status, and the
 1415  member is such employee shall not be deemed retired from
 1416  employment until his or her deferred resignation is effective
 1417  and termination occurs as provided in s. 121.021(39).
 1418         4. Elected officers are shall be eligible to participate in
 1419  the DROP subject to the following:
 1420         a. An elected officer who reaches normal retirement date
 1421  during a term of office may defer the election to participate in
 1422  the DROP until the next succeeding term in that office. An Such
 1423  elected officer who exercises this option may participate in the
 1424  DROP for up to 60 calendar months or a period of no longer than
 1425  the such succeeding term of office, whichever is less.
 1426         b. An elected or a nonelected participant may run for a
 1427  term of office while participating in DROP and, if elected,
 1428  extend the DROP termination date accordingly;, except, however,
 1429  if the such additional term of office exceeds the 60-month
 1430  limitation established in subparagraph 1., and the officer does
 1431  not resign from office within such 60-month limitation, the
 1432  retirement and the participant’s DROP is shall be null and void
 1433  as provided in sub-subparagraph (c)5.d.
 1434         c.(I)For DROP participation ending before January 1, 2010,
 1435  an elected officer who is dually employed and elects to
 1436  participate in DROP must shall be required to satisfy the
 1437  definition of termination within the original 60-month period or
 1438  maximum participation or, with respect to members who are
 1439  instructional personnel employed by the Florida School for the
 1440  Deaf and the Blind and who have received authorization by the
 1441  Board of Trustees of the Florida School for the Deaf and the
 1442  Blind to participate in the DROP beyond 60 months, or who are
 1443  instructional personnel as defined in s. 1012.01(2)(a)-(d) in
 1444  grades K-12 and who have received authorization by the district
 1445  school superintendent to participate in the DROP beyond 60
 1446  months, the 96-month limitation period as provided in
 1447  subparagraph 1. for the nonelected position and may continue
 1448  employment as an elected officer as provided in s. 121.053. The
 1449  elected officer shall will be enrolled as a renewed member in
 1450  the Elected Officers’ Class or the Regular Class, as provided in
 1451  ss. 121.053 and 121.122, on the first day of the month after
 1452  termination of employment in the nonelected position and
 1453  termination of DROP. Distribution of the DROP benefits shall be
 1454  made as provided in paragraph (c).
 1455         (II)For DROP participation ending on or after January 1,
 1456  2010, an elected officer who is dually employed and elects to
 1457  participate in DROP must satisfy the definition of termination
 1458  in s. 121.021(39) for the nonelected position within the
 1459  original 60-month period or maximum period as provided in
 1460  subparagraph 1. If the elected officer does not terminate from
 1461  elective office within the original 60-month period or maximum
 1462  period, he or she may defer termination as provided in s.
 1463  121.053 but is subject to termination in s. 121.021(39) to
 1464  finalize retirement.
 1465         (c) Benefits payable under the DROP.—
 1466         1. Effective on with the date of DROP participation, the
 1467  member’s initial normal monthly benefit, including creditable
 1468  service, optional form of payment, and average final
 1469  compensation, and the effective date of retirement are shall be
 1470  fixed. The beneficiary established under the Florida Retirement
 1471  System shall be the beneficiary eligible to receive any DROP
 1472  benefits payable if the DROP participant dies prior to the
 1473  completion of the period of DROP participation. If In the event
 1474  a joint annuitant predeceases the member, the member may name a
 1475  beneficiary to receive accumulated DROP benefits payable. The
 1476  Such retirement benefit, the annual cost of living adjustments
 1477  provided in s. 121.101, and interest shall accrue monthly in the
 1478  Florida Retirement System Trust Fund. The Such interest shall
 1479  accrue at an effective annual rate of 6.5 percent compounded
 1480  monthly, on the prior month’s accumulated ending balance, up to
 1481  the month of termination or death.
 1482         2. Each employee who elects to participate in the DROP may
 1483  shall be allowed to elect to receive a lump-sum payment for
 1484  accrued annual leave earned in accordance with agency policy
 1485  upon beginning participation in the DROP. The Such accumulated
 1486  leave payment certified to the division upon commencement of
 1487  DROP shall be included in the calculation of the member’s
 1488  average final compensation. The employee electing the such lump
 1489  sum payment is upon beginning participation in DROP will not be
 1490  eligible to receive a second lump-sum payment upon termination,
 1491  except to the extent the employee has earned additional annual
 1492  leave which combined with the original payment does not exceed
 1493  the maximum lump-sum payment allowed by the employing agency’s
 1494  policy or rules. An Such early lump-sum payment shall be based
 1495  on the hourly wage of the employee at the time he or she begins
 1496  participation in the DROP. If the member elects to wait and
 1497  receive a such lump-sum payment upon termination of DROP and
 1498  termination of employment with the employer, any accumulated
 1499  leave payment made at that time may not cannot be included in
 1500  the member’s retirement benefit, which was determined and fixed
 1501  by law when the employee elected to participate in the DROP.
 1502         3. The effective date of DROP participation and the
 1503  effective date of retirement of a DROP participant shall be the
 1504  first day of the month selected by the member to begin
 1505  participation in the DROP, provided such date is properly
 1506  established, with the written confirmation of the employer, and
 1507  the approval of the division, on forms required by the division.
 1508         4. Normal retirement benefits and any interest thereon
 1509  shall continue to accrue in the DROP until the established
 1510  termination date of the DROP, or until the participant
 1511  terminates employment or dies prior to such date. Although
 1512  individual DROP accounts shall not be established, a separate
 1513  accounting of each participant’s accrued benefits under the DROP
 1514  shall be calculated and provided to participants.
 1515         5. At the conclusion of the participant’s DROP, the
 1516  division shall distribute the participant’s total accumulated
 1517  DROP benefits, subject to the following provisions:
 1518         a. The division shall receive verification by the
 1519  participant’s employer or employers that the such participant
 1520  has terminated employment as provided in s. 121.021(39)(b).
 1521         b. The terminated DROP participant or, if deceased, the
 1522  such participant’s named beneficiary, shall elect on forms
 1523  provided by the division to receive payment of the DROP benefits
 1524  in accordance with one of the options listed below. If For a
 1525  participant or beneficiary who fails to elect a method of
 1526  payment within 60 days after of termination of the DROP, the
 1527  division shall will pay a lump sum as provided in sub-sub
 1528  subparagraph (I).
 1529         (I) Lump sum.—All accrued DROP benefits, plus interest,
 1530  less withholding taxes remitted to the Internal Revenue Service,
 1531  shall be paid to the DROP participant or surviving beneficiary.
 1532         (II) Direct rollover.—All accrued DROP benefits, plus
 1533  interest, shall be paid from the DROP directly to the custodian
 1534  of an eligible retirement plan as defined in s. 402(c)(8)(B) of
 1535  the Internal Revenue Code. However, in the case of an eligible
 1536  rollover distribution to the surviving spouse of a deceased
 1537  participant, an eligible retirement plan is an individual
 1538  retirement account or an individual retirement annuity as
 1539  described in s. 402(c)(9) of the Internal Revenue Code.
 1540         (III) Partial lump sum.—A portion of the accrued DROP
 1541  benefits shall be paid to the DROP participant or surviving
 1542  spouse, less withholding taxes remitted to the Internal Revenue
 1543  Service, and the remaining DROP benefits shall be transferred
 1544  directly to the custodian of an eligible retirement plan as
 1545  defined in s. 402(c)(8)(B) of the Internal Revenue Code.
 1546  However, in the case of an eligible rollover distribution to the
 1547  surviving spouse of a deceased participant, an eligible
 1548  retirement plan is an individual retirement account or an
 1549  individual retirement annuity as described in s. 402(c)(9) of
 1550  the Internal Revenue Code. The proportions shall be specified by
 1551  the DROP participant or surviving beneficiary.
 1552         c. The form of payment selected by the DROP participant or
 1553  surviving beneficiary must comply complies with the minimum
 1554  distribution requirements of the Internal Revenue Code.
 1555         d. A DROP participant who fails to terminate employment as
 1556  defined in s. 121.021(39)(b) shall be deemed as not to be
 1557  retired, and the DROP election is shall be null and void.
 1558  Florida Retirement System membership shall be reestablished
 1559  retroactively to the date of the commencement of the DROP, and
 1560  each employer with whom the participant continues employment
 1561  must shall be required to pay to the Florida Retirement System
 1562  Trust Fund the difference between the DROP contributions paid in
 1563  paragraph (i) and the contributions required for the applicable
 1564  Florida Retirement System class of membership during the period
 1565  the member participated in the DROP, plus 6.5 percent interest
 1566  compounded annually.
 1567         6.The retirement benefits of a retiree who participated in
 1568  DROP and meets the definition of termination in s.
 1569  121.021(39)(b), but is in violation of the reemployment
 1570  provisions as provided in subsection (9), shall be suspended
 1571  during the months in which the reemployed retiree is in
 1572  violation. Any retiree reemployed in violation of this
 1573  subparagraph and any employing agency that employs or appoints
 1574  such member without notifying the Division of Retirement to
 1575  suspend retirement benefits are jointly and severally liable for
 1576  any benefits paid during the reemployment limitation period. To
 1577  avoid liability, the employing agency must have a written
 1578  statement from the retiree that he or she is not retired from a
 1579  state-administered retirement system.
 1580         a.For DROP participation ending before January 1, 2010,
 1581  any retirement benefits received by a retiree while employed in
 1582  violation of the reemployment limitations during the 12-month
 1583  limitation period must be repaid to the Florida Retirement
 1584  System Trust Fund, and his or her retirement benefits shall
 1585  remain suspended until payment is made. Benefits suspended
 1586  beyond the end of the retiree’s 12-calendar month limitation
 1587  period apply toward repayment of benefits received in violation
 1588  of the reemployment limitations.
 1589         b.For DROP participation ending on or after January 1,
 1590  2010, any retirement benefits received by a retiree while
 1591  employed in violation of the reemployment limitations must be
 1592  repaid to the Florida Retirement System Trust Fund, and his or
 1593  her retirement benefits shall remain suspended until payment is
 1594  made. Benefits suspended after the retiree has terminated
 1595  employment shall apply toward repayment of benefits received in
 1596  violation of the reemployment limitations.
 1597         7.6. The accrued benefits of any DROP participant, and any
 1598  contributions accumulated under the such program, are shall not
 1599  be subject to assignment, execution, attachment, or to any legal
 1600  process whatsoever, except for qualified domestic relations
 1601  orders by a court of competent jurisdiction, income deduction
 1602  orders as provided in s. 61.1301, and federal income tax levies.
 1603         8.7. DROP participants are shall not be eligible for
 1604  disability retirement benefits as provided in subsection (4).
 1605         (d) Death benefits under the DROP.—
 1606         1. Upon the death of a DROP participant, the named
 1607  beneficiary is shall be entitled to apply for and receive the
 1608  accrued benefits in the DROP as provided in sub-subparagraph
 1609  (c)5.b.
 1610         2. The normal retirement benefit accrued to the DROP during
 1611  the month of a participant’s death shall be the final monthly
 1612  benefit credited for such DROP participant.
 1613         3. Eligibility to participate in the DROP terminates upon
 1614  death of the participant. If the participant dies on or after
 1615  the effective date of enrollment in the DROP, but prior to the
 1616  first monthly benefit being credited to the DROP, Florida
 1617  Retirement System benefits shall be paid in accordance with
 1618  subparagraph (7)(c)1. or subparagraph 2.
 1619         4. A DROP participant’s participants’ survivors shall not
 1620  be eligible to receive Florida Retirement System death benefits
 1621  as provided in paragraph (7)(d).
 1622         (e) Cost-of-living adjustment.—On each July 1, the
 1623  participant’s participants’ normal retirement benefit shall be
 1624  increased as provided in s. 121.101.
 1625         (f) Retiree health insurance subsidy.—DROP participants are
 1626  not eligible to apply for the retiree health insurance subsidy
 1627  payments as provided in s. 112.363 until such participants have
 1628  terminated employment and participation in the DROP.
 1629         (g) Renewed membership.—
 1630         1. DROP participants who end DROP participation before
 1631  January 1, 2010 are shall not be eligible for renewed membership
 1632  in the Florida Retirement System under ss. 121.053 and 121.122
 1633  until termination of employment is effectuated as provided in s.
 1634  121.021(39)(b).
 1635         2.DROP participants who end DROP participation on or after
 1636  January 1, 2010, are not eligible for renewed membership in a
 1637  state-administered retirement system.
 1638         (h) Employment limitation after DROP participation.—Upon
 1639  satisfying the definition of termination of employment as
 1640  provided in s. 121.021(39)(b), DROP participants shall be
 1641  subject to such reemployment limitations as other retirees.
 1642  Reemployment restrictions applicable to retirees as provided in
 1643  subsection (9) shall not apply to DROP participants until their
 1644  employment and participation in the DROP are terminated.
 1645         (i) Contributions.—
 1646         1. All employers paying the salary of a DROP participant
 1647  filling a regularly established position shall contribute 8.0
 1648  percent of such participant’s gross compensation for the period
 1649  of July 1, 2002, through June 30, 2003, and the 11.56 percent of
 1650  such compensation required by s. 121.71 thereafter, which shall
 1651  constitute the entire employer DROP contribution with respect to
 1652  such participant. Such contributions, payable to the Florida
 1653  Retirement System Trust Fund in the same manner as required in
 1654  s. 121.071, shall be made as appropriate for each pay period and
 1655  are in addition to contributions required for social security
 1656  and the Retiree Health Insurance Subsidy Trust Fund. Such
 1657  employer, social security, and health insurance subsidy
 1658  contributions are not included in the DROP.
 1659         2. The employer shall, in addition to subparagraph 1., also
 1660  withhold one-half of the entire social security contribution
 1661  required for the participant. Contributions for social security
 1662  by each participant and each employer, in the amount required
 1663  for social security coverage as now or hereafter provided by the
 1664  federal Social Security Act, shall be in addition to
 1665  contributions specified in subparagraph 1.
 1666         3. All employers paying the salary of a DROP participant
 1667  filling a regularly established position shall contribute the
 1668  percent of such participant’s gross compensation required in s.
 1669  121.071(4), which shall constitute the employer’s health
 1670  insurance subsidy contribution with respect to such participant.
 1671  Such contributions shall be deposited by the administrator in
 1672  the Retiree Health Insurance Subsidy Trust Fund.
 1673         (j) Forfeiture of retirement benefits.—Nothing in this
 1674  section shall be construed to remove DROP participants from the
 1675  scope of s. 8(d), Art. II of the State Constitution, s.
 1676  112.3173, and paragraph (5)(f). DROP participants who commit a
 1677  specified felony offense while employed will be subject to
 1678  forfeiture of all retirement benefits, including DROP benefits,
 1679  pursuant to those provisions of law.
 1680         (k) Administration of program.—The division shall make such
 1681  rules as are necessary for the effective and efficient
 1682  administration of this subsection. The division shall not be
 1683  required to advise members of the federal tax consequences of an
 1684  election related to the DROP but may advise members to seek
 1685  independent advice.
 1686         (14) PAYMENT OF BENEFITS.—This subsection applies to the
 1687  payment of benefits to a payee (retiree or beneficiary) under
 1688  the Florida Retirement System:
 1689         (a) Federal income tax shall be withheld in accordance with
 1690  federal law, unless the payee elects otherwise on Form W-4P. The
 1691  division shall prepare and distribute to each recipient of
 1692  monthly retirement benefits an appropriate income tax form that
 1693  reflects the recipient’s income and federal income tax withheld
 1694  for the calendar year just ended.
 1695         (b) Subject to approval by the division in accordance with
 1696  rule 60S-4.015, Florida Administrative Code, a payee receiving
 1697  retirement benefits under the Florida Retirement System may also
 1698  have the following payments deducted from his or her monthly
 1699  benefit:
 1700         1. Premiums for life and health-related insurance policies
 1701  from approved companies.
 1702         2. Life insurance premiums for the State Group Life
 1703  Insurance Plan, if authorized in writing by the payee and by the
 1704  Department of Management Services.
 1705         3. Repayment of overpayments from the Florida Retirement
 1706  System Trust Fund, the State Employees’ Health Insurance Trust
 1707  Fund, or the State Employees’ Life Insurance Trust Fund, upon
 1708  notification of the payee.
 1709         4. Payments to an alternate payee for alimony, child
 1710  support, or division of marital assets pursuant to a qualified
 1711  domestic relations order under s. 222.21 or an income deduction
 1712  order under s. 61.1301.
 1713         5. Payments to the Internal Revenue Service for federal
 1714  income tax levies, upon notification of the division by the
 1715  Internal Revenue Service.
 1716         (c) A payee shall notify the division of any change in his
 1717  or her address. The division may suspend benefit payments to a
 1718  payee if correspondence sent to the payee’s mailing address is
 1719  returned due to an incorrect address. Benefit payments shall be
 1720  resumed upon notification to the division of the payee’s new
 1721  address.
 1722         (d) A payee whose retirement benefits are reduced by the
 1723  application of maximum benefit limits under s. 415(b) of the
 1724  Internal Revenue Code, as specified in s. 121.30(5), shall have
 1725  the portion of his or her calculated benefit in the Florida
 1726  Retirement System defined benefit plan which exceeds such
 1727  federal limitation paid through the Florida Retirement System
 1728  Preservation of Benefits Plan, as provided in s. 121.1001.
 1729         (e) No benefit may be reduced for the purpose of preserving
 1730  the member’s eligibility for a federal program.
 1731         (f) The division shall adopt rules establishing procedures
 1732  for determining that the persons to whom benefits are being paid
 1733  are still living. The division shall suspend the benefits being
 1734  paid to any payee when it is unable to contact such payee and to
 1735  confirm that he or she is still living.
 1736         Section 6. Section 121.122, Florida Statutes, is amended to
 1737  read:
 1738         121.122 Renewed membership in system.—
 1739         (1)A retiree of a state-administered retirement system who
 1740  is initially reemployed on or after January 1, 2010, is not
 1741  eligible for renewed membership.
 1742         (2) Except as provided in s. 121.053, effective July 1,
 1743  1991, through December 31, 2009, any retiree of a state
 1744  administered retirement system who is initially reemployed
 1745  employed in a regularly established position with a covered
 1746  employer shall be enrolled as a compulsory member of the Regular
 1747  Class of the Florida Retirement System or, effective July 1,
 1748  1997, through December 31, 2009, any retiree of a state
 1749  administered retirement system who is initially reemployed
 1750  employed in a position included in the Senior Management Service
 1751  Class shall be enrolled as a compulsory member of the Senior
 1752  Management Service Class of the Florida Retirement System as
 1753  provided in s. 121.055, and shall be entitled to receive an
 1754  additional retirement benefit, subject to the following
 1755  conditions:
 1756         (1)(a) Such member shall resatisfy the age and service
 1757  requirements as provided in this chapter for initial membership
 1758  under the system, unless such member elects to participate in
 1759  the Senior Management Service Optional Annuity Program in lieu
 1760  of the Senior Management Service Class, as provided in s.
 1761  121.055(6).
 1762         (b) Such member shall not be entitled to disability
 1763  benefits as provided in s. 121.091(4).
 1764         (c) Such member must meet the reemployment after retirement
 1765  limitations as provided in s. 121.091(9), as applicable.
 1766         (3)(2) Upon reemployment of a retiree renewed membership,
 1767  the employer of the such member shall pay the applicable
 1768  employer contributions as required by ss. 121.71, 121.74,
 1769  121.76, and 112.363 ss. 121.055(3) and 121.071(1)(a) and (4).
 1770         (4)(3)The retiree of a state-administered retirement
 1771  system who is initially reemployed before January 1, 2010, is
 1772  Such member shall be entitled to purchase additional retirement
 1773  credit in the Regular Class or the Senior Management Service
 1774  Class, as applicable, for any postretirement service performed
 1775  in a regularly established position as follows:
 1776         (a) For regular class service before prior to July 1, 1991,
 1777  by paying the Regular Class applicable employee and employer
 1778  contributions for the period being claimed, plus 4 percent
 1779  interest compounded annually from first year of service claimed
 1780  until July 1, 1975, and 6.5 percent interest compounded
 1781  thereafter, until full payment is made to the Florida Retirement
 1782  System Trust Fund; or
 1783         (b) For Senior Management Service Class before prior to
 1784  June 1, 1997, as provided in s. 121.055(1)(j).
 1785  
 1786  The contribution for postretirement service between July 1,
 1787  1985, and July 1, 1991, for which the reemployed retiree
 1788  contribution was paid, shall be the difference between such
 1789  contribution and the total applicable contribution for the
 1790  period being claimed, plus interest. The employer of such member
 1791  may pay the applicable employer contribution in lieu of the
 1792  member. If a member does not wish to claim credit for all of the
 1793  postretirement service for which he or she is eligible, the
 1794  service the member claims must be the most recent service.
 1795         (5)(4) No creditable service for which credit was received,
 1796  or which remained unclaimed, at retirement may be claimed or
 1797  applied toward service credit earned following renewed
 1798  membership. However, for retirees initially reemployed before
 1799  January 1, 2010, service earned as an elected officer with
 1800  renewed membership in the Elected Officers’ Class may be used in
 1801  conjunction with creditable service earned under this section,
 1802  provided the applicable vesting requirements and other existing
 1803  statutory conditions required by this chapter are met.
 1804         (6)(5) Notwithstanding any other limitations provided in
 1805  this section, a participant of the State University System
 1806  Optional Retirement Program, the State Community College
 1807  Optional Retirement Program, or the Senior Management Service
 1808  Optional Annuity Program who terminated employment and commenced
 1809  receiving a distribution an annuity under the provisions of the
 1810  optional program, who initially renews membership before January
 1811  1, 2010, in the Regular Class as required by this section upon
 1812  reemployment after retirement, and who had previously earned
 1813  creditable Florida Retirement System service that was not
 1814  included in any retirement benefit may include such previous
 1815  service toward vesting and service credit in the second career
 1816  benefit provided under renewed membership.
 1817         (7)(6) Any renewed member who is not receiving the maximum
 1818  health insurance subsidy provided in s. 112.363 shall be
 1819  entitled to earn additional credit toward the maximum health
 1820  insurance subsidy. Any additional subsidy due because of such
 1821  additional credit shall be received only at the time of payment
 1822  of the second career retirement benefit. In no case shall the
 1823  total health insurance subsidy received by a retiree receiving
 1824  benefits from initial and renewed membership exceed the maximum
 1825  allowed in s. 112.363.
 1826         Section 7. Paragraph (h) of subsection (3) and paragraphs
 1827  (a) and (e) of subsection (5) of section 121.35, Florida
 1828  Statutes, are amended, and paragraph (g) is added to subsection
 1829  (5) of that section, to read:
 1830         121.35 Optional retirement program for the State University
 1831  System.—
 1832         (3) ELECTION OF OPTIONAL PROGRAM.—
 1833         (h) A participant in the optional retirement program may
 1834  not participate in more than one state-administered retirement
 1835  system, plan, or class simultaneously. Except as provided in s.
 1836  121.052(6)(d), a participant who is or becomes dually employed
 1837  in two or more positions covered by the Florida Retirement
 1838  System, one of which is eligible for the optional program and
 1839  one of which is not, may remain a member of the optional program
 1840  and contributions shall be paid as required only on the salary
 1841  earned in the position eligible for the optional program during
 1842  such period of dual employment; or, within 90 days after
 1843  becoming dually employed, he or she may elect membership in the
 1844  Regular Class of the Florida Retirement System in lieu of the
 1845  optional program and contributions shall be paid as required on
 1846  the total salary received for all employment. At retirement, the
 1847  average final compensation used to calculate any benefits for
 1848  which the member becomes eligible under the Florida Retirement
 1849  System shall be based on all salary reported for both positions
 1850  during such period of dual employment. When such member ceases
 1851  to be dually employed, he or she may, within 90 days, elect to
 1852  remain in the Florida Retirement System class for which he or
 1853  she is eligible or to again become a participant in the optional
 1854  retirement program. Failure to elect membership in the optional
 1855  program within 90 days shall result in compulsory membership in
 1856  the Florida Retirement System, except that a member filling a
 1857  faculty position at under a college with a faculty practice plan
 1858  at the University of Florida, at or the Medical Center at the
 1859  University of South Florida, or other state university shall
 1860  again participate in the optional retirement program as required
 1861  in s. 121.051(1)(a).
 1862         (5) BENEFITS.—
 1863         (a) Benefits shall be payable under the optional retirement
 1864  program only to vested participants in the program, or their
 1865  beneficiaries as designated by the participant in the contract
 1866  with a provider company, and such benefits shall be paid only by
 1867  the designated company in accordance with s. 403(b) of the
 1868  Internal Revenue Code and in accordance with the terms of the
 1869  annuity contract or contracts applicable to the participant.
 1870  Benefits shall accrue in individual accounts that are
 1871  participant-directed, portable, and funded by employer
 1872  contributions and the earnings thereon. The participant must be
 1873  terminated from all employment with all Florida Retirement
 1874  System employers, as provided in s. 121.021(39), to begin
 1875  receiving the employer-funded benefit. Benefits funded by
 1876  employer contributions shall be payable in accordance with the
 1877  following terms and conditions:
 1878         1. Benefits shall be payable only to a participant, to his
 1879  or her beneficiaries, or to his or her estate, as designated by
 1880  the participant.
 1881         2. Benefits shall be paid by the provider company or
 1882  companies in accordance with the law, the provisions of the
 1883  contract, and any applicable department board rule or policy.
 1884         3. In the event of a participant’s death, moneys
 1885  accumulated by, or on behalf of, the participant, less
 1886  withholding taxes remitted to the Internal Revenue Service, if
 1887  any, shall be distributed to the participant’s designated
 1888  beneficiary or beneficiaries, or to the participant’s estate, as
 1889  if the participant retired on the date of death, as provided in
 1890  paragraph (c). No other death benefits shall be available for
 1891  survivors of participants under the optional retirement program
 1892  except for such benefits, or coverage for such benefits, as are
 1893  separately afforded by the employer, at the employer’s
 1894  discretion.
 1895         (e) A participant who chooses to receive his or her
 1896  benefits upon termination of employment as defined in s.
 1897  121.021(39) has the shall have responsibility to notify the
 1898  provider company of the date on which he or she wishes benefits
 1899  funded by employer contributions to begin. Benefits may be
 1900  deferred until such time as the participant chooses to make such
 1901  application.
 1902         (g)For purposes of this section, the term “retiree” means
 1903  a former participant of the optional retirement program who has
 1904  terminated employment and has taken a distribution, including a
 1905  rollover or trustee-to-trustee transfer, as provided in this
 1906  subsection, except for a mandatory distribution of a de minimis
 1907  account authorized by the department.
 1908         Section 8. Paragraph (f) of subsection (2) of section
 1909  121.4501, Florida Statutes, is amended to read:
 1910         121.4501 Public Employee Optional Retirement Program.—
 1911         (2) DEFINITIONS.—As used in this part, the term:
 1912         (f) “Eligible employee” means an officer or employee, as
 1913  defined in s. 121.021(11), who:
 1914         1. Is a member of, or is eligible for membership in, the
 1915  Florida Retirement System, including any renewed member of the
 1916  Florida Retirement System initially reemployed before January 1,
 1917  2010; or
 1918         2. Participates in, or is eligible to participate in, the
 1919  Senior Management Service Optional Annuity Program as
 1920  established under s. 121.055(6), the State Community College
 1921  System Optional Retirement Program as established under s.
 1922  121.051(2)(c), or the State University System Optional
 1923  Retirement Program established under s. 121.35.
 1924  
 1925  The term does not include any member participating in the
 1926  Deferred Retirement Option Program established under s.
 1927  121.091(13), a retiree of a state-administered retirement system
 1928  initially reemployed on or after January 1, 2010, or a mandatory
 1929  participant of the State University System Optional Retirement
 1930  Program established under s. 121.35.
 1931         Section 9. Paragraph (b) of subsection (1) of section
 1932  121.591, Florida Statutes, is amended to read:
 1933         121.591 Benefits payable under the Public Employee Optional
 1934  Retirement Program of the Florida Retirement System.—Benefits
 1935  may not be paid under this section unless the member has
 1936  terminated employment as provided in s. 121.021(39)(a) or is
 1937  deceased and a proper application has been filed in the manner
 1938  prescribed by the state board or the department. The state board
 1939  or department, as appropriate, may cancel an application for
 1940  retirement benefits when the member or beneficiary fails to
 1941  timely provide the information and documents required by this
 1942  chapter and the rules of the state board and department. In
 1943  accordance with their respective responsibilities as provided
 1944  herein, the State Board of Administration and the Department of
 1945  Management Services shall adopt rules establishing procedures
 1946  for application for retirement benefits and for the cancellation
 1947  of such application when the required information or documents
 1948  are not received. The State Board of Administration and the
 1949  Department of Management Services, as appropriate, are
 1950  authorized to cash out a de minimis account of a participant who
 1951  has been terminated from Florida Retirement System covered
 1952  employment for a minimum of 6 calendar months. A de minimis
 1953  account is an account containing employer contributions and
 1954  accumulated earnings of not more than $5,000 made under the
 1955  provisions of this chapter. Such cash-out must either be a
 1956  complete lump-sum liquidation of the account balance, subject to
 1957  the provisions of the Internal Revenue Code, or a lump-sum
 1958  direct rollover distribution paid directly to the custodian of
 1959  an eligible retirement plan, as defined by the Internal Revenue
 1960  Code, on behalf of the participant. If any financial instrument
 1961  issued for the payment of retirement benefits under this section
 1962  is not presented for payment within 180 days after the last day
 1963  of the month in which it was originally issued, the third-party
 1964  administrator or other duly authorized agent of the State Board
 1965  of Administration shall cancel the instrument and credit the
 1966  amount of the instrument to the suspense account of the Public
 1967  Employee Optional Retirement Program Trust Fund authorized under
 1968  s. 121.4501(6). Any such amounts transferred to the suspense
 1969  account are payable upon a proper application, not to include
 1970  earnings thereon, as provided in this section, within 10 years
 1971  after the last day of the month in which the instrument was
 1972  originally issued, after which time such amounts and any
 1973  earnings thereon shall be forfeited. Any such forfeited amounts
 1974  are assets of the Public Employee Optional Retirement Program
 1975  Trust Fund and are not subject to the provisions of chapter 717.
 1976         (1) NORMAL BENEFITS.—Under the Public Employee Optional
 1977  Retirement Program:
 1978         (b) If a participant elects to receive his or her benefits
 1979  upon termination of employment as defined in s. 121.021(39), the
 1980  participant must submit a written application or an equivalent
 1981  form to the third-party administrator indicating his or her
 1982  preferred distribution date and selecting an authorized method
 1983  of distribution as provided in paragraph (c). The participant
 1984  may defer receipt of benefits until he or she chooses to make
 1985  such application, subject to federal requirements.
 1986         Section 10. Sections 121.093 and 121.094, Florida Statutes,
 1987  are repealed.
 1988         Section 11. The Legislature finds that a proper and
 1989  legitimate state purpose is served when employees and retirees
 1990  of the state and its political subdivisions, as well as the
 1991  dependents, survivors, and beneficiaries of such employees and
 1992  retirees, are extended the basic protections afforded by
 1993  governmental retirement systems that provide fair and adequate
 1994  benefits and that are managed, administered, and funded in an
 1995  actuarially sound manner as required by s. 14, Art. X of the
 1996  State Constitution and part VII of chapter 112, Florida
 1997  Statutes. Therefore, the Legislature determines and declares
 1998  that the amendment of s. 121.091, Florida Statutes, by this act
 1999  fulfills an important state interest.
 2000         Section 12. This act shall take effect July 1, 2009.