Florida Senate - 2009 CS for CS for SB 1182
By the Committees on Ethics and Elections; and Community
Affairs; and Senators Fasano, Gaetz, and Dockery
582-04470-09 20091182c2
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
22 retirees 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; requiring the Department of
46 Management Services to request an actuarial study to
47 determine the effect of this act on employer
48 contributions and to notify the Governor and
49 Legislature of the results; providing a contingent
50 effective date.
51
52 Be It Enacted by the Legislature of the State of Florida:
53
54 Section 1. Subsection (60) of section 121.021, Florida
55 Statutes, is amended to read:
56 121.021 Definitions.—The following words and phrases as
57 used in this chapter have the respective meanings set forth
58 unless a different meaning is plainly required by the context:
59 (60) “Retiree” means:
60 (a) A former member of the Florida Retirement System or an
61 existing system who has terminated employment and is receiving
62 benefit payments from the system in which he or she was a
63 member. The This term also includes a person who retired and is
64 receiving benefits under s. 112.05 and a retiree under the
65 Public Employee Optional Retirement Program defined in s.
66 121.4501(2).
67 (b) A former participant who has received a distribution
68 from the State Community College Optional Retirement Program as
69 defined in s. 121.051(2)(c), the Senior Management Service
70 Optional Annuity Program as defined in s. 121.055(6), an
71 alternative program for local agency employer senior managers
72 who withdrew from the Florida Retirement System under s.
73 121.055(1)(b), or the State University System Retirement
74 Optional Retirement Program as defined in s. 121.35(5)(g). The
75 term “distribution” means receiving funds that include employer
76 contributions and associated earnings, whether received as a
77 full or partial rollover, or trustee-to-trustee transfer, lump
78 sum payment, periodic payment, annuity payment, or any
79 combination of these payment methods.
80 Section 2. Paragraph (a) of subsection (1) and paragraphs
81 (c) and (f) of subsection (2) of section 121.051, Florida
82 Statutes, are amended to read:
83 121.051 Participation in the system.—
84 (1) COMPULSORY PARTICIPATION.—
85 (a) The provisions of this law are shall be compulsory as
86 to all officers and employees, except elected officers who meet
87 the requirements of s. 121.052(3), who are employed on or after
88 December 1, 1970, by of an employer other than those referred to
89 in paragraph (2)(b), and each officer or employee, as a
90 condition of employment, shall become a member of the system as
91 of his or her date of employment, except that a person who is
92 retired from any state retirement system and is reemployed on or
93 after December 1, 1970, may not renew his or her membership in
94 any state retirement system except as provided in s.
95 121.091(4)(h) for a person who recovers from disability, and as
96 provided in s. 121.091(9)(b) s. 121.091(9)(b)8. for a person who
97 is elected to public office, and, effective July 1, 1991, as
98 provided in s. 121.122 for all other retirees. Officers and
99 employees of the University Athletic Association, Inc., a
100 nonprofit association connected with the University of Florida,
101 employed on and after July 1, 1979, may shall not participate in
102 any state-supported retirement system.
103 1. Any person appointed on or after July 1, 1989, to a
104 faculty position in a college at the J. Hillis Miller Health
105 Center at the University of Florida or the Medical Center at the
106 University of South Florida which has a faculty practice plan
107 provided by rule adopted by the Board of Regents may not
108 participate in the Florida Retirement System. Effective July 1,
109 2008, any person appointed thereafter to a faculty position,
110 including clinical faculty, in a college at a state university
111 that has a faculty practice plan authorized by the Board of
112 Governors may not participate in the Florida Retirement System.
113 A faculty member so appointed shall participate in the optional
114 retirement program for the State University System
115 notwithstanding the provisions of s. 121.35(2)(a).
116 2. For purposes of this paragraph, the term “faculty
117 position” means is defined as a position assigned the principal
118 responsibility of teaching, research, or public service
119 activities or administrative responsibility directly related to
120 the academic mission of the college. The term “clinical faculty”
121 means is defined as a faculty position appointment in
122 conjunction with a professional position in a hospital or other
123 clinical environment at a college. The term “faculty practice
124 plan” includes professional services to patients, institutions,
125 or other parties which are rendered by the clinical faculty
126 employed by a college that has a faculty practice plan at a
127 state university authorized by the Board of Governors.
128 (2) OPTIONAL PARTICIPATION.—
129 (c) Employees of public community colleges or charter
130 technical career centers sponsored by public community colleges,
131 as designated in s. 1000.21(3), who are members of the Regular
132 Class of the Florida Retirement System and who comply with the
133 criteria set forth in this paragraph and in s. 1012.875 may
134 elect, in lieu of participating in the Florida Retirement
135 System, to withdraw from the Florida Retirement system
136 altogether and participate in an optional retirement program
137 provided by the employing agency under s. 1012.875, to be known
138 as the State Community College System Optional Retirement
139 Program. Pursuant thereto:
140 1. Through June 30, 2001, the cost to the employer for such
141 annuity equals shall equal the normal cost portion of the
142 employer retirement contribution which would be required if the
143 employee were a member of the Regular Class defined benefit
144 program, plus the portion of the contribution rate required by
145 s. 112.363(8) which that would otherwise be assigned to the
146 Retiree Health Insurance Subsidy Trust Fund. Effective July 1,
147 2001, each employer shall contribute on behalf of each
148 participant in the optional program an amount equal to 10.43
149 percent of the participant’s gross monthly compensation. The
150 employer shall deduct an amount to provide for the
151 administration of the optional retirement program. The employer
152 providing the optional program shall contribute an additional
153 amount to the Florida Retirement System Trust Fund equal to the
154 unfunded actuarial accrued liability portion of the Regular
155 Class contribution rate.
156 2. The decision to participate in such an optional
157 retirement program is shall be irrevocable for as long as the
158 employee holds a position eligible for participation, except as
159 provided in subparagraph 3. Any service creditable under the
160 Florida Retirement System is shall be retained after the member
161 withdraws from the Florida Retirement system; however,
162 additional service credit in the Florida Retirement System may
163 shall not be earned while a member of the optional retirement
164 program.
165 3. An employee who has elected to participate in the
166 optional retirement program shall have one opportunity, at the
167 employee’s discretion, to choose to transfer from the optional
168 retirement program to the defined benefit program of the Florida
169 Retirement System or to the Public Employee Optional Retirement
170 Program, subject to the terms of the applicable optional
171 retirement program contracts.
172 a. If the employee chooses to move to the Public Employee
173 Optional Retirement Program, any contributions, interest, and
174 earnings creditable to the employee under the State Community
175 College System Optional Retirement Program must shall be
176 retained by the employee in the State Community College System
177 Optional Retirement Program, and the applicable provisions of s.
178 121.4501(4) shall govern the election.
179 b. If the employee chooses to move to the defined benefit
180 program of the Florida Retirement System, the employee shall
181 receive service credit equal to his or her years of service
182 under the State Community College System Optional Retirement
183 Program.
184 (I) The cost for such credit is the shall be an amount
185 representing the present value of that employee’s accumulated
186 benefit obligation for the affected period of service. The cost
187 shall be calculated as if the benefit commencement occurs on the
188 first date the employee becomes would become eligible for
189 unreduced benefits, using the discount rate and other relevant
190 actuarial assumptions that were used to value the Florida
191 Retirement System defined benefit plan liabilities in the most
192 recent actuarial valuation. The calculation must shall include
193 any service already maintained under the defined benefit plan in
194 addition to the years under the State Community College System
195 Optional Retirement Program. The present value of any service
196 already maintained must under the defined benefit plan shall be
197 applied as a credit to total cost resulting from the
198 calculation. The division shall ensure that the transfer sum is
199 prepared using a formula and methodology certified by an
200 enrolled actuary.
201 (II) The employee must transfer from his or her State
202 Community College System Optional Retirement Program account and
203 from other employee moneys as necessary, a sum representing the
204 present value of that employee’s accumulated benefit obligation
205 immediately following the time of such movement, determined
206 assuming that attained service equals the sum of service in the
207 defined benefit program and service in the State Community
208 College System Optional Retirement Program.
209 4. Participation in the optional retirement program is
210 shall be limited to those employees who satisfy the following
211 eligibility criteria:
212 a. The employee must be otherwise eligible for membership
213 or renewed membership in the Regular Class of the Florida
214 Retirement System, as provided in s. 121.021(11) and (12) or s.
215 121.122.
216 b. The employee must be employed in a full-time position
217 classified in the Accounting Manual for Florida’s Public
218 Community Colleges as:
219 (I) Instructional; or
220 (II) Executive Management, Instructional Management, or
221 Institutional Management, if a community college determines that
222 recruiting to fill a vacancy in the position is to be conducted
223 in the national or regional market, and:
224 (A) The duties and responsibilities of the position include
225 either the formulation, interpretation, or implementation of
226 policies; or
227 (B) The duties and responsibilities of the position include
228 the performance of functions that are unique or specialized
229 within higher education and that frequently involve the support
230 of the mission of the community college.
231 c. The employee must be employed in a position not included
232 in the Senior Management Service Class of the Florida Retirement
233 System, as described in s. 121.055.
234 5. A participant who receives a program distribution,
235 including a rollover or trustee-to-trustee transfer, funded by
236 employer contributions shall be deemed to be retired from a
237 state-administered retirement system if the participant is
238 subsequently employed by an employer that participates in the
239 Florida Retirement System. Participants in the program are
240 subject to the same reemployment limitations, renewed membership
241 provisions, and forfeiture provisions as are applicable to
242 regular members of the Florida Retirement System under ss.
243 121.091(9), 121.122, and 121.091(5), respectively.
244 6. Eligible community college employees are shall be
245 compulsory members of the Florida Retirement System until,
246 pursuant to the procedures set forth in s. 1012.875, a written
247 election to withdraw from the Florida Retirement system and to
248 participate in the State Community College System Optional
249 Retirement Program is filed with the program administrator and
250 received by the division.
251 a. A Any community college employee whose program
252 eligibility results from initial employment must shall be
253 enrolled in the State Community College System Optional
254 Retirement Program retroactive to the first day of eligible
255 employment. The employer retirement contributions paid through
256 the month of the employee plan change shall be transferred to
257 the community college to for the employee’s optional program
258 account, and, effective the first day of the next month, the
259 employer shall pay the applicable contributions based upon
260 subparagraph 1.
261 b. Any community college employee whose program eligibility
262 is results from a change in status due to the subsequent
263 designation of the employee’s position as one of those specified
264 in subparagraph 4. or due to the employee’s appointment,
265 promotion, transfer, or reclassification to a position specified
266 in subparagraph 4. must shall be enrolled in the program on upon
267 the first day of the first full calendar month that such change
268 in status becomes effective. The employer retirement
269 contributions paid from the effective date through the month of
270 the employee plan change must shall be transferred to the
271 community college to for the employee’s optional program
272 account, and, effective the first day of the next month, the
273 employer shall pay the applicable contributions based upon
274 subparagraph 1.
275 7. Effective July 1, 2003, through December 31, 2008, any
276 participant of the State Community College System Optional
277 Retirement Program who has service credit in the defined benefit
278 plan of the Florida Retirement System for the period between his
279 or her first eligibility to transfer from the defined benefit
280 plan to the optional retirement program and the actual date of
281 transfer may, during his or her employment, elect to transfer to
282 the optional retirement program a sum representing the present
283 value of the accumulated benefit obligation under the defined
284 benefit retirement program for the such period of service
285 credit. Upon such transfer, all such service credit previously
286 earned under the defined benefit program of the Florida
287 Retirement System during this period is shall be nullified for
288 purposes of entitlement to a future benefit under the defined
289 benefit program of the Florida Retirement System.
290 (f)1. If Whenever an employer that participates in the
291 Florida Retirement System undertakes the transfer, merger, or
292 consolidation of governmental services or functions, the
293 employer must notify the department at least 60 days before
294 prior to such action and shall provide documentation as required
295 by the department.
296 2. If When the agency to which a member’s employing unit is
297 transferred, merged, or consolidated does not participate in the
298 Florida Retirement System, a member may shall elect in writing
299 to remain in the Florida Retirement System or to transfer to the
300 local retirement system operated by the such agency. If the such
301 agency does not participate in a local retirement system, the
302 member shall continue membership in the Florida Retirement
303 System. In either case, the membership continues shall continue
304 for as long as the member is employed by the agency to which his
305 or her unit was transferred, merged, or consolidated.
306 Section 3. Subsections (1) and (2) of section 121.053,
307 Florida Statutes, are amended to read:
308 121.053 Participation in the Elected Officers’ Class for
309 retired members.—
310 (1)(a)1. A retiree of a state-administered retirement
311 system who initially serves in an elective office in a regularly
312 established position with a covered employer on or after January
313 1, 2010, may not enroll in the Florida Retirement System as a
314 renewed member.
315 2. An elected officer who is elected or appointed to an
316 elective office and is participating in the Deferred Retirement
317 Option Program is subject to termination as provided in s.
318 121.021(39)(b), and reemployment limitations as provided in s.
319 121.091(9), upon completion of his or her DROP participation
320 period. An elected official may defer termination as provided in
321 subparagraph (c)5.
322 (b) A member who retired before January 1, 2010, under any
323 existing system as defined in s. 121.021(2), and receives a
324 benefit thereof, who is initially reemployed before January 1,
325 2010, and who serves in an office covered by the Elected
326 Officers’ Class for a period of at least 6 years, is entitled to
327 receive an additional retirement benefit for such elected
328 officer service before July 1, 1990, under the Elected Officers’
329 Class of the Florida Retirement System, as follows:
330 1. Upon completion of 6 or more years of creditable service
331 in an office covered by the Elected Officers’ Class, as provided
332 in s. 121.052, the member shall notify the administrator of his
333 or her intent to purchase elected officer service before July 1,
334 1990, and shall pay the member contribution applicable for the
335 period being claimed, plus 4 percent interest compounded
336 annually from the first year of service claimed until July 1,
337 1975, and 6.5 percent interest compounded annually thereafter,
338 until full payment is made to the Florida Retirement System
339 Trust Fund; however, the member may purchase retirement credit
340 under the Elected Officers’ Class only for service as an elected
341 officer.
342 2. Upon payment of the amount specified in subparagraph 1.,
343 the employer shall pay into the Florida Retirement System Trust
344 Fund the applicable employer contribution for the period of
345 elected officer service before July 1, 1990, being claimed by
346 the member, plus 4 percent interest compounded annually from the
347 first year of service claimed until July 1, 1975, and 6.5
348 percent interest compounded annually thereafter, until full
349 payment is made to the Florida Retirement System Trust Fund.
350 (c) Any retiree of the Florida Retirement System, or any
351 existing system as defined in s. 121.021(2), who, on or after
352 July 1, 1990, through December 31, 2009, is serving in, or is
353 elected or appointed to, an elective office covered by the
354 Elected Officers’ Class shall be enrolled in the appropriate
355 subclass of the Elected Officers’ Class of the Florida
356 Retirement System, and applicable contributions shall be paid
357 into the Florida Retirement System Trust Fund as provided in s.
358 121.052(7). Any member who retired under any existing system as
359 defined in s. 121.021(2), and receives a benefit thereof, and
360 who serves in an office covered by the Elected Officers’ Class
361 for a period of at least 6 years, shall be entitled to receive
362 an additional retirement benefit for such elected officer
363 service prior to July 1, 1990, under the Elected Officers’ Class
364 of the Florida Retirement System, as follows:
365 1. Upon completion of 6 or more years of creditable service
366 in an office covered by the Elected Officers’ Class, s. 121.052,
367 such member shall notify the administrator of his or her intent
368 to purchase elected officer service prior to July 1, 1990, and
369 shall pay the member contribution applicable for the period
370 being claimed, plus 4 percent interest compounded annually from
371 the first year of service claimed until July 1, 1975, and 6.5
372 percent interest compounded annually thereafter, until full
373 payment is made to the Florida Retirement System Trust Fund;
374 however, such member may purchase retirement credit under the
375 Elected Officers’ Class only for such service as an elected
376 officer.
377 2. Upon payment of the amount specified in subparagraph 1.,
378 the employer shall pay into the Florida Retirement System Trust
379 Fund the applicable employer contribution for the period of
380 elected officer service prior to July 1, 1990, being claimed by
381 the member, plus 4 percent interest compounded annually from the
382 first year of service claimed until July 1, 1975, and 6.5
383 percent interest compounded annually thereafter, until full
384 payment is made to the Florida Retirement System Trust Fund.
385 (b) Any retired member of the Florida Retirement System, or
386 any existing system as defined in s. 121.021(2), who, on or
387 after July 1, 1990, is serving in, or is elected or appointed
388 to, an elective office covered by the Elected Officers’ Class
389 shall be enrolled in the appropriate subclass of the Elected
390 Officers’ Class of the Florida Retirement System, and applicable
391 contributions shall be paid into the Florida Retirement System
392 Trust Fund as provided in s. 121.052(7). Pursuant thereto:
393 1. The Any such retired member may shall be eligible to
394 continue to receive retirement benefits as well as compensation
395 for the elected officer service if for as long as he or she
396 remains in an elective office covered by the Elected Officers’
397 Class.
398 2. If the any such member serves in an elective office
399 covered by the Elected Officers’ Class and becomes vested under
400 that class, he or she is shall be entitled to receive an
401 additional retirement benefit for the such elected officer
402 service.
403 3. The Such member is shall be entitled to purchase
404 additional retirement credit in the Elected Officers’ Class for
405 any postretirement service performed in an elected position
406 eligible for the Elected Officers’ Class before prior to July 1,
407 1990, or in the Regular Class for any postretirement service
408 performed in any other regularly established position before
409 prior to July 1, 1991, by paying the applicable Elected
410 Officers’ Class or Regular Class employee and employer
411 contributions for the period being claimed, plus 4 percent
412 interest compounded annually from the first year of service
413 claimed until July 1, 1975, and 6.5 percent interest compounded
414 thereafter, until full payment is made to the Florida Retirement
415 System Trust Fund. The contribution for postretirement Regular
416 Class service between July 1, 1985, and July 1, 1991, for which
417 the reemployed retiree contribution was paid, is shall be the
418 difference between the such contribution and the total
419 applicable contribution for the period being claimed, plus
420 interest. The employer of such member may pay the applicable
421 employer contribution in lieu of the member. If a member does
422 not wish to claim credit for all of the postretirement service
423 for which he or she is eligible, the service the member claims
424 must be the most recent service.
425 4. Creditable service for which credit was received, or
426 which remained unclaimed, at retirement may not be claimed or
427 applied toward service credit earned following renewed
428 membership. However, service earned in accordance with the
429 renewed membership provisions of in s. 121.122 may be used in
430 conjunction with creditable service earned under this paragraph,
431 if provided applicable vesting requirements and other existing
432 statutory conditions required by this chapter are met.
433 5. An elected officer who is elected or appointed to an
434 elective office and is participating in the Deferred Retirement
435 Option Program is not subject to termination as provided in s.
436 121.021(39)(b), or reemployment limitations as provided in s.
437 121.091(9), until the end of his or her current term of office
438 or, if the officer is consecutively elected or reelected to an
439 elective office eligible for coverage under the Florida
440 Retirement System, until he or she no longer holds such an
441 elective office, as follows:
442 a. At the end of the 60-month DROP period:
443 (I) The officer’s DROP account may not shall accrue no
444 additional monthly benefits, but shall continue to earn interest
445 as provided in s. 121.091(13).
446 (II) No Retirement contributions are not shall be required
447 of the employer of the elected officer and no additional
448 retirement credit may not shall be earned under the Florida
449 Retirement System.
450 b. Nothing herein shall prevent An elected officer may from
451 voluntarily terminate terminating his or her elective office at
452 any time and electing to receive his or her DROP proceeds.
453 However, until termination requirements are fulfilled as
454 provided in s. 121.021(39), an any elected officer whose
455 termination limitations are extended by this section is shall be
456 ineligible for renewed membership in the system and may not
457 shall receive no pension payments, DROP lump sum payments, or
458 any other state payment other than the statutorily determined
459 salary, travel, and per diem for the elective office.
460 c. Upon termination, the officer shall receive his or her
461 accumulated DROP account, plus interest, and shall accrue and
462 commence receiving monthly retirement benefits, which must shall
463 be paid on a prospective basis only.
464
465 However, an officer electing to participate in the Deferred
466 Retirement Option Program on or before June 30, 2002, is shall
467 not be required to terminate and remains shall remain subject to
468 the provisions of this subparagraph as adopted in section 1 of
469 chapter 2001-235, Laws of Florida.
470 (2) Upon attaining his or her normal retirement date and
471 payment of the amount specified in paragraphs (1)(b) and (c)
472 (1)(a) and (b), and upon application to the administrator of the
473 intent to retire, the member shall receive a monthly benefit
474 under this section, in addition to any benefits already being
475 received, which shall commence on the last day of the month of
476 retirement and be payable on the last day of the month
477 thereafter during his or her lifetime. The amount of the such
478 monthly benefit is shall be the total percentage of retirement
479 credit purchased under this section multiplied by the member’s
480 average monthly compensation as an elected officer, adjusted
481 according to the option selected at retirement under s.
482 121.091(6).
483 Section 4. Paragraph (f) of subsection (1) and paragraphs
484 (c) and (e) of subsection (6) of section 121.055, Florida
485 Statutes, are amended to read:
486 121.055 Senior Management Service Class.—There is hereby
487 established a separate class of membership within the Florida
488 Retirement System to be known as the “Senior Management Service
489 Class,” which shall become effective February 1, 1987.
490 (1)
491 (f) Effective July 1, 1997:
492 1. Except as provided in subparagraph 3., an any elected
493 state officer eligible for membership in the Elected Officers’
494 Class under s. 121.052(2)(a), (b), or (c) who elects membership
495 in the Senior Management Service Class under s. 121.052(3)(c)
496 may, within 6 months after assuming office or within 6 months
497 after this act becomes a law for serving elected state officers,
498 elect to participate in the Senior Management Service Optional
499 Annuity Program, as provided in subsection (6), in lieu of
500 membership in the Senior Management Service Class.
501 2. Except as provided in subparagraph 3., an any elected
502 county officer of a local agency employer eligible for
503 membership in the Elected Officers’ Class under s. 121.052(2)(d)
504 who elects membership in the Senior Management Service Class
505 under s. 121.052(3)(c) may, within 6 months after assuming
506 office, or within 6 months after this act becomes a law for
507 serving elected county officers of a local agency employer,
508 elect to withdraw from the Florida Retirement System participate
509 in a lifetime monthly annuity program, as provided in
510 subparagraph (b)2., in lieu of membership in the Senior
511 Management Service Class.
512 3. A retiree of a state-administered retirement system who
513 is initially reemployed on or after January 1, 2010, as an
514 elected official eligible for the Elected Officers’ Class is not
515 eligible for renewed membership in the Senior Management Service
516 Class or in the Senior Management Service Optional Annuity
517 Program as provided in subsection (6), or to withdraw from the
518 Florida Retirement System as a renewed member as provided in
519 subparagraph (b)2., as applicable, in lieu of Senior Management
520 Service Class membership.
521 (6)
522 (c) Participation.—
523 1. An any eligible employee who is employed on or before
524 February 1, 1987, may elect to participate in the optional
525 annuity program in lieu of participation in the Senior
526 Management Service Class. Such election must shall be made in
527 writing and filed with the department and the personnel officer
528 of the employer on or before May 1, 1987. An Any eligible
529 employee who is employed on or before February 1, 1987, and who
530 fails to make an election to participate in the optional annuity
531 program by May 1, 1987, shall be deemed to have elected
532 membership in the Senior Management Service Class. However, a
533 retiree of a state-administered retirement system who is
534 initially reemployed on or after January 1, 2010, is not
535 eligible for renewed membership in the Senior Management Service
536 Optional Annuity Program.
537 2. An Any employee who becomes eligible to participate in
538 the optional annuity program by reason of initial employment
539 commencing after February 1, 1987, may, within 90 days after the
540 date of commencing commencement of employment, elect to
541 participate in the optional annuity program. Such election must
542 shall be made in writing and filed with the personnel officer of
543 the employer. An Any eligible employee who does not within 90
544 days after commencing commencement of such employment elect to
545 participate in the optional annuity program shall be deemed to
546 have elected membership in the Senior Management Service Class.
547 3. A person who is appointed to a position in the Senior
548 Management Service Class and who is a member of an existing
549 retirement system or the Special Risk or Special Risk
550 Administrative Support Classes of the Florida Retirement System
551 may elect to remain in such system or class in lieu of
552 participation in the Senior Management Service Class or optional
553 annuity program. Such election must shall be made in writing and
554 filed with the department and the personnel officer of the
555 employer within 90 days of such appointment. Any eligible
556 employee who fails to make an election to participate in the
557 existing system, the Special Risk Class of the Florida
558 Retirement System, the Special Risk Administrative Support Class
559 of the Florida Retirement System, or the optional annuity
560 program shall be deemed to have elected membership in the Senior
561 Management Service Class.
562 4. Except as provided in subparagraph 5., an employee’s
563 election to participate in the optional annuity program is
564 irrevocable if the as long as such employee continues to be
565 employed in an eligible position and continues to meet the
566 eligibility requirements set forth in this paragraph.
567 5. Effective from July 1, 2002, through September 30, 2002,
568 any active employee in a regularly established position who has
569 elected to participate in the Senior Management Service Optional
570 Annuity Program has one opportunity to choose to move from the
571 Senior Management Service Optional Annuity Program to the
572 Florida Retirement System defined benefit program.
573 a. The election must be made in writing and must be filed
574 with the department and the personnel officer of the employer
575 before October 1, 2002, or, in the case of an active employee
576 who is on a leave of absence on July 1, 2002, within 90 days
577 after the conclusion of the leave of absence. This election is
578 irrevocable.
579 b. The employee shall will receive service credit under the
580 defined benefit program of the Florida Retirement System equal
581 to his or her years of service under the Senior Management
582 Service Optional Annuity Program. The cost for such credit is
583 the shall be an amount representing the present value of that
584 employee’s accumulated benefit obligation for the affected
585 period of service.
586 c. The employee must transfer the total accumulated
587 employer contributions and earnings on deposit in his or her
588 Senior Management Service Optional Annuity Program account. If
589 the transferred amount is not sufficient to pay the amount due,
590 the employee must pay a sum representing the remainder of the
591 amount due. In no case may The employee may not retain any
592 employer contributions or earnings thereon from the Senior
593 Management Service Optional Annuity Program account.
594 (e) Benefits.—
595 1. Benefits are shall be payable under the Senior
596 Management Service Optional Annuity Program only to participants
597 in the program, or their beneficiaries as designated by the
598 participant in the contract with a provider company, and must
599 such benefits shall be paid by the designated company in
600 accordance with the terms of the annuity contract or contracts
601 applicable to the participant. A participant must be terminated
602 from all employment with all Florida Retirement System employers
603 as provided in s. 121.021(39) to begin receiving the employer
604 funded benefit. Benefits funded by employer contributions are
605 shall be payable under the terms of the contract only as a
606 lifetime annuity to the participant, his or her beneficiary, or
607 his or her estate, in addition to except for:
608 a. A lump-sum payment to the beneficiary upon the death of
609 the participant;
610 b. A cash-out of a de minimis account upon the request of a
611 former participant who has been terminated for a minimum of 6
612 months from the employment that entitled him or her to optional
613 annuity program participation. A de minimis account is an
614 account with a provider company containing employer
615 contributions and accumulated earnings of not more than $5,000
616 made under the provisions of this chapter. Such cash-out must be
617 a complete liquidation of the account balance with that company
618 and is subject to the provisions of the Internal Revenue Code;
619 or
620 c. A mandatory distribution of a de minimis account of a
621 former participant who has been terminated for a minimum of 6
622 months from the employment that entitled him or her to optional
623 annuity program participation as authorized by the department;
624 or
625 d.c. A lump-sum direct rollover distribution whereby all
626 accrued benefits, plus interest and investment earnings, are
627 paid from the participant’s account directly to the custodian of
628 an eligible retirement plan, as defined in s. 402(c)(8)(B) of
629 the Internal Revenue Code, on behalf of the participant.
630
631 As used in this subparagraph, a “de minimis account” means an
632 account with a provider company containing employer
633 contributions and accumulated earnings of not more than $5,000
634 made under this chapter.
635 2. The benefits payable to any person under the Senior
636 Management Service Optional Annuity Program, and any
637 contribution accumulated under such program, are shall not be
638 subject to assignment, execution, or attachment or to any legal
639 process whatsoever.
640 3. Except as provided in subparagraph 4., a participant who
641 terminates employment and receives a distribution, including a
642 rollover or trustee-to-trustee transfer, optional annuity
643 program benefits funded by employer contributions shall be
644 deemed to be retired from a state-administered retirement system
645 if the participant is subsequently employed with an in the event
646 of subsequent employment with any employer that participates in
647 the Florida Retirement System.
648 4. A participant who receives optional annuity program
649 benefits funded by employer contributions as a mandatory
650 distribution of a de minimis account authorized by the
651 department is not considered a retiree.
652 Section 5. Subsections (9) and (13) of section 121.091,
653 Florida Statutes, are amended to read:
654 121.091 Benefits payable under the system.—Benefits may not
655 be paid under this section unless the member has terminated
656 employment as provided in s. 121.021(39)(a) or begun
657 participation in the Deferred Retirement Option Program as
658 provided in subsection (13), and a proper application has been
659 filed in the manner prescribed by the department. The department
660 may cancel an application for retirement benefits when the
661 member or beneficiary fails to timely provide the information
662 and documents required by this chapter and the department’s
663 rules. The department shall adopt rules establishing procedures
664 for application for retirement benefits and for the cancellation
665 of such application when the required information or documents
666 are not received.
667 (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
668 (a) Any person who is retired under this chapter, except
669 under the disability retirement provisions of subsection (4),
670 may be employed by any private employer or public employer that
671 does not participate in a state-administered retirement system
672 and may receive compensation from that employment without
673 limiting or restricting in any way the retirement benefits
674 payable to that person.
675 (b) The limitations on receiving a retirement benefit while
676 reemployed by an employer participating in a state-administered
677 retirement system are:
678 1. For retirements effective on or after January 1, 2010,
679 or DROP participation ending on or after January 1, 2010:
680 a. The retiree may not receive a retirement benefit if the
681 retiree is receiving a salary or wages from reemployment with an
682 employer participating in the Florida Retirement System after
683 the date of retirement. However, a DROP participant may continue
684 employment and receive a salary during the period of
685 participation in DROP, as provided in subsection (13). Any
686 retiree employed in violation of this subparagraph and any
687 agency that employs or appoints such person without notifying
688 the Division of Retirement to suspend retirement benefits are
689 jointly and severally liable for any retirement benefits paid
690 during reemployment. To avoid liability, the employing agency
691 must have a written statement from the employee that he or she
692 is not retired from a state-administered retirement system. Any
693 benefits received by a retiree while reemployed must be repaid
694 to the Florida Retirement System Trust Fund, and his or her
695 benefits remain suspended until repayment is made.
696 b. There are no exceptions to the reemployment limitations
697 in subparagraph (a) and the exceptions in subparagraphs (b)3.
698 and 4. do not apply.
699 2. For retirements effective before January 1, 2010, or
700 DROP participation ending before January 1, 2010, a retiree may
701 not receive a salary from reemployment with an employer
702 participating in the Florida Retirement System and retirement
703 benefits under this chapter for 12 months immediately after
704 retirement. However, a DROP participant may continue employment
705 and receive a salary during the period of participation in DROP
706 as provided in subsection (13). A retiree who is reemployed with
707 an employer participating in the Florida Retirement System after
708 he or she has met the definition of termination in s.
709 121.021(39), but before completing the 12-month limitation
710 period must give timely notice of this fact in writing to the
711 employer and to the Division of Retirement and have his or her
712 retirement benefits suspended while employed during the balance
713 of the 12-month limitation period unless the employee exceeds
714 the 780-hour reemployment limitation set forth in law. Any
715 retiree employed in violation of this sub-subparagraph and any
716 agency that employs or appoints such person without notifying
717 the division to suspend retirement benefits are jointly and
718 severally liable for any benefits paid during the reemployment
719 limitation period. To avoid liability, the employing agency must
720 have a written statement from the employee that he or she is not
721 retired from a state-administered retirement system. Any
722 retirement benefits received by a retiree while reemployed
723 during the reemployment limitation period must be repaid to the
724 Florida Retirement System Trust Fund, and his or her retirement
725 benefits remain suspended until repayment is made. Benefits
726 suspended beyond the reemployment limitation apply toward
727 repayment of benefits received in violation of the reemployment
728 limitation.
729 a. A district school board may reemploy a retiree as a
730 substitute or hourly teacher, education paraprofessional,
731 transportation assistant, bus driver, or food service worker on
732 a noncontractual basis after he or she has met the definition of
733 termination in s. 121.021(39). A district school board may
734 reemploy a retiree as instructional personnel, as defined in s.
735 1012.01(2)(a), on an annual contractual basis after he or she
736 has met the definition of termination in s. 121.021(39). A
737 retiree who is reemployed before meeting the definition of
738 termination voids his or her application for retirement
739 benefits. A district school board that reemploys such teachers,
740 education paraprofessionals, transportation assistants, bus
741 drivers, or food service workers is subject to the retirement
742 contribution.
743 b. A community college board of trustees may reemploy a
744 retiree as an adjunct instructor or as a participant in a phased
745 retirement program within the Florida Community College System
746 after he or she has met the definition of termination in s.
747 121.021(39). A retiree who is reemployed within 1 calendar month
748 after retirement voids his or her application for retirement
749 benefits. A board of trustees that reemploys such instructor is
750 subject to the retirement contribution. A retiree may be
751 reemployed as an adjunct instructor for up to 780 hours during
752 the first 12 months of retirement. A retiree reemployed for more
753 than 780 hours during the first 12 months of retirement must
754 give timely notice in writing to the employer and to the
755 Division of Retirement of the date he or she will exceed the
756 limitation. The division shall suspend his or her retirement
757 benefits for the remainder of the 12-month limitation period.
758 Any retiree employed in violation of this subparagraph and any
759 agency that employs or appoints such person without notifying
760 the division are jointly and severally liable for any retirement
761 benefits paid during the reemployment limitation period. To
762 avoid liability, the employee must submit a written statement to
763 the employing agency stating that he or she is not retired from
764 a state-administered retirement system. Any retirement benefits
765 received by a retiree while reemployed in excess of 780 hours
766 during the 12-month limitation period must be repaid to the
767 Florida Retirement System Trust Fund, and his or her benefits
768 remain suspended until repayment is made. Benefits suspended
769 beyond the end of the 12-month limitation period apply toward
770 repayment of benefits received in violation of the 780-hour
771 reemployment limitation.
772 c. The State University System may reemploy a retiree
773 member as an adjunct faculty member or as a participant in a
774 phased retirement program within the State University System
775 after he or she has met the definition of termination in s.
776 121.021(39). A retiree who is reemployed before meeting the
777 definition of termination voids his or her application for
778 retirement benefits. The State University System is subject to
779 the retirement contribution. A retiree may be reemployed as an
780 adjunct faculty member or a participant in a phased retirement
781 program for up to 780 hours during the first 12 months of his or
782 her retirement. Any retiree reemployed for more than 780 hours
783 during the 12-month limitation period must give timely notice in
784 writing to the employer and to the Division of Retirement of the
785 date he or she will exceed the limitation. The division shall
786 suspend his or her retirement benefits for the remainder of the
787 12-month limitation period. Any retiree employed in violation of
788 this subparagraph and any agency that employs or appoints such
789 person without notifying the division to suspend retirement
790 benefits are jointly and severally liable for any benefits paid
791 during the reemployment limitation period. To avoid liability,
792 the employee must submit a written statement to the employing
793 agency stating that he or she is not retired from a state
794 administered retirement system. Any benefits received by a
795 retiree while reemployed in excess of 780 hours during the first
796 12 months of retirement must be repaid to the Florida Retirement
797 System Trust Fund, and his or her benefits remain suspended
798 until repayment is made. Benefits suspended beyond the end of
799 the 12-month limitation period apply toward repayment of
800 benefits received in violation of the 780-hour reemployment
801 limitation.
802 d. The Board of Trustees of the Florida School for the Deaf
803 and the Blind may reemploy a retiree as a substitute teacher,
804 substitute residential instructor, or substitute nurse on a
805 noncontractual basis after he or she has met the definition of
806 termination in s. 121.021(39). The Board of Trustees may
807 reemploy a retiree as instructional personnel, as defined in s.
808 1012.01(2)(a), on an annual contractual basis after he or she
809 has met the definition of termination in s. 121.021(39). A
810 retiree who is reemployed before meeting the definition of
811 termination voids his or her application for retirement
812 benefits. The Board of Trustees reemploying such teachers,
813 residential instructors, or nurses is subject to the retirement
814 contribution.
815 e. A developmental research school may reemploy a retiree
816 as a substitute or hourly teacher or an education
817 paraprofessional, as defined in s. 1012.01(2), on a
818 noncontractual basis after he or she has met the definition of
819 termination in s. 121.021(39). A developmental research school
820 may reemploy a retiree as instructional personnel, as defined in
821 s. 1012.01(2)(a), on an annual contractual basis after the
822 retiree has met the definition of termination in s. 121.021(39).
823 A developmental research school that reemploys such teachers and
824 education paraprofessionals is subject to the retirement
825 contribution.
826 f. A charter school may reemploy a retiree as a substitute
827 or hourly teacher on a noncontractual basis after he or she has
828 met the definition of termination in s. 121.021(39). A charter
829 school may reemploy a retiree as instructional personnel, as
830 defined in s. 1012.01(2)(a), on an annual contractual basis
831 after he or she has met the definition of termination in s.
832 121.021(39). A charter school that reemploys such teachers and
833 instructional personnel is subject to the retirement
834 contribution.
835 g. An agency may reemploy a retiree as a firefighter or
836 paramedic after he or she has met the definition of termination
837 in s. 121.021(39). Any retiree who is reemployed within 1
838 calendar month after retirement shall void his or her
839 application for retirement benefits. The agency reemploying such
840 firefighter or paramedic is subject to the retirement
841 contribution. A retiree may be reemployed as a firefighter or
842 paramedic for up to 780 hours during the first 12 months of his
843 or her retirement. Any retiree reemployed for more than 780
844 hours during the first 12 months of retirement must give timely
845 notice in writing to the employer and to the Division of
846 Retirement of the date he or she will exceed the limitation. The
847 division shall suspend his or her retirement benefits for the
848 remainder of the 12-month limitation period. Any retiree
849 employed in violation of this subparagraph and any agency that
850 employs or appoints such person without notifying the division
851 to suspend retirement benefits are jointly and severally liable
852 for any benefits paid during the reemployment limitation period.
853 To avoid liability, the employee must submit a written statement
854 to the employing agency stating that he or she is not retired
855 from a state-administered retirement system. Any benefits
856 received by a retiree while reemployed in excess of 780 hours
857 during the 12-month limitation period must be repaid to the
858 Florida Retirement System Trust Fund, and his or her benefits
859 remain suspended until repayment is made. Benefits suspended
860 beyond the end of the 12-month limitation period apply toward
861 repayment of benefits received in violation of the 780-hour
862 reemployment limitation.
863 3.a. The employment of a retiree or DROP participant of a
864 state-administered retirement system does not affect the average
865 final compensation or years of creditable service of the retiree
866 or DROP participant.
867 b.(I) Before July 1, 1991, upon employment of any person,
868 other than an elected officer as provided in s. 121.053, who is
869 retired under a state-administered retirement program, the
870 employer must pay retirement contributions in an amount equal to
871 the unfunded actuarial liability portion of the employer
872 contribution which would be required for regular members of the
873 Florida Retirement System.
874 (II) For retirees initially reemployed from July 1, 1991,
875 through December 31, 2009, contributions must be made as
876 provided in s. 121.122 for retirees who have renewed membership
877 or as provided in subsection (13) for DROP participants.
878 c. Any person who is retired under a state-administered
879 retirement program and who is initially reemployed on or after
880 January 1, 2010, may not renew membership in the Florida
881 Retirement System. The employer must pay retirement
882 contributions in an amount equal to the unfunded actuarial
883 liability portion of the employer contribution which would be
884 required for active members of the Florida Retirement System in
885 addition to the contributions required by s. 121.76.
886 4.a. A retiree who is elected or appointed to an elective
887 office eligible for the Elected Officers’ Class on or after July
888 1, 1990, and initially enrolled through December 31, 2009, must
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, must 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 as long
896 as he or she remains in elective office. However, a retiree who
897 served in an elective office before July 1, 1990, suspended his
898 or her retirement benefit, and had his or her Florida Retirement
899 System membership reinstated shall, upon retirement from such
900 office, have his or her retirement benefit recalculated to
901 include the additional service and compensation earned.
902 b. A retiree with renewed membership established before
903 January 1, 2010, and who is not receiving a benefit based on
904 this service, who is elected or appointed to an elective office
905 shall become a member of the Elected Officers’ Class or the
906 Regular Class depending upon the designation for the position.
907 c. A retiree who is elected or appointed to an elective
908 office on or after January 1, 2010, and who is initially
909 reemployed in a position covered by the Florida Retirement
910 System may not be enrolled in the Florida Retirement System and
911 may not receive retirement benefits after meeting the definition
912 of termination in s. 121.021(39).
913 5. A person who is holding an elective office which is
914 covered by the Florida Retirement System and who is concurrently
915 employed in nonelected covered employment may elect to retire
916 while continuing employment in the elective public office if he
917 or she terminates his or her nonelected covered employment.
918 a. For retirement effective before January 1, 2010, or DROP
919 participation ending before January 1, 2010, any person who
920 exercises this election shall receive his or her retirement
921 benefits in addition to the compensation of the elective office
922 without regard to the time limitations otherwise provided in
923 this subsection. A person who seeks to exercise the provisions
924 of this subparagraph, as they existed before May 3, 1984, is not
925 deemed retired under those provisions unless the person is
926 eligible to retire under this subparagraph as amended by chapter
927 84-11, Laws of Florida.
928 b. For retirement effective on or after January 1, 2010, or
929 DROP participation ending on or after January 1, 2010, any
930 person who exercises this election may not receive retirement
931 benefits in addition to compensation for the elective office.
932 6. The limitations of this paragraph apply to reemployment
933 in any capacity with an employer irrespective of the category of
934 funds from which the person is compensated.
935 7. This paragraph regarding reemployment after retirement
936 applies to DROP participants effective upon termination from
937 employment and the end of DROP participation.
938 (c) This subsection applies to retirees, as defined in s.
939 121.4501(2), of the Public Employee Optional Retirement Program
940 created in part II, subject to the following conditions:
941 1. The retiree may not be reemployed with an employer
942 participating in the Florida Retirement System as provided in
943 paragraph (b) until the person has been retired for 3 months,
944 unless the participant has reached the normal retirement
945 requirements of the defined benefit plan as provided in s.
946 121.021(29).
947 2. A retiree employed in violation of this subsection and
948 the agency that employs or appoints such person are jointly and
949 severally liable for reimbursement of any retirement benefits
950 paid to the retirement trust fund from which the benefits were
951 paid, including the Retirement System Trust Fund and the Public
952 Employee Optional Retirement Program Trust Fund, as appropriate.
953 To be employed, the employee must submit to the employing agency
954 a written statement that he or she is not retired from a state
955 administered retirement system.
956 (a) Any person who is retired under this chapter, except
957 under the disability retirement provisions of subsection (4),
958 may be employed by an employer that does not participate in a
959 state-administered retirement system and may receive
960 compensation from that employment without limiting or
961 restricting in any way the retirement benefits payable to that
962 person.
963 (b)1. Any person who is retired under this chapter, except
964 under the disability retirement provisions of subsection (4),
965 may be reemployed by any private or public employer after
966 retirement and receive retirement benefits and compensation from
967 his or her employer without any limitations, except that a
968 person may not receive both a salary from reemployment with any
969 agency participating in the Florida Retirement System and
970 retirement benefits under this chapter for a period of 12 months
971 immediately subsequent to the date of retirement. However, a
972 DROP participant shall continue employment and receive a salary
973 during the period of participation in the Deferred Retirement
974 Option Program, as provided in subsection (13).
975 2. Any person to whom the limitation in subparagraph 1.
976 applies who violates such reemployment limitation and who is
977 reemployed with any agency participating in the Florida
978 Retirement System before completion of the 12-month limitation
979 period shall give timely notice of this fact in writing to the
980 employer and to the division and shall have his or her
981 retirement benefits suspended for the balance of the 12-month
982 limitation period. Any person employed in violation of this
983 paragraph and any employing agency which knowingly employs or
984 appoints such person without notifying the Division of
985 Retirement to suspend retirement benefits shall be jointly and
986 severally liable for reimbursement to the retirement trust fund
987 of any benefits paid during the reemployment limitation period.
988 To avoid liability, such employing agency shall have a written
989 statement from the retiree that he or she is not retired from a
990 state-administered retirement system. Any retirement benefits
991 received while reemployed during this reemployment limitation
992 period shall be repaid to the retirement trust fund, and
993 retirement benefits shall remain suspended until such repayment
994 has been made. Benefits suspended beyond the reemployment
995 limitation shall apply toward repayment of benefits received in
996 violation of the reemployment limitation.
997 3. A district school board may reemploy a retired member as
998 a substitute or hourly teacher, education paraprofessional,
999 transportation assistant, bus driver, or food service worker on
1000 a noncontractual basis after he or she has been retired for 1
1001 calendar month, in accordance with s. 121.021(39). A district
1002 school board may reemploy a retired member as instructional
1003 personnel, as defined in s. 1012.01(2)(a), on an annual
1004 contractual basis after he or she has been retired for 1
1005 calendar month, in accordance with s. 121.021(39). Any other
1006 retired member who is reemployed within 1 calendar month after
1007 retirement shall void his or her application for retirement
1008 benefits. District school boards reemploying such teachers,
1009 education paraprofessionals, transportation assistants, bus
1010 drivers, or food service workers are subject to the retirement
1011 contribution required by subparagraph 7.
1012 4. A community college board of trustees may reemploy a
1013 retired member as an adjunct instructor, that is, an instructor
1014 who is noncontractual and part-time, or as a participant in a
1015 phased retirement program within the Florida Community College
1016 System, after he or she has been retired for 1 calendar month,
1017 in accordance with s. 121.021(39). Any retired member who is
1018 reemployed within 1 calendar month after retirement shall void
1019 his or her application for retirement benefits. Boards of
1020 trustees reemploying such instructors are subject to the
1021 retirement contribution required in subparagraph 7. A retired
1022 member may be reemployed as an adjunct instructor for no more
1023 than 780 hours during the first 12 months of retirement. Any
1024 retired member reemployed for more than 780 hours during the
1025 first 12 months of retirement shall give timely notice in
1026 writing to the employer and to the division of the date he or
1027 she will exceed the limitation. The division shall suspend his
1028 or her retirement benefits for the remainder of the first 12
1029 months of retirement. Any person employed in violation of this
1030 subparagraph and any employing agency which knowingly employs or
1031 appoints such person without notifying the Division of
1032 Retirement to suspend retirement benefits shall be jointly and
1033 severally liable for reimbursement to the retirement trust fund
1034 of any benefits paid during the reemployment limitation period.
1035 To avoid liability, such employing agency shall have a written
1036 statement from the retiree that he or she is not retired from a
1037 state-administered retirement system. Any retirement benefits
1038 received by a retired member while reemployed in excess of 780
1039 hours during the first 12 months of retirement shall be repaid
1040 to the Retirement System Trust Fund, and retirement benefits
1041 shall remain suspended until repayment is made. Benefits
1042 suspended beyond the end of the retired member’s first 12 months
1043 of retirement shall apply toward repayment of benefits received
1044 in violation of the 780-hour reemployment limitation.
1045 5. The State University System may reemploy a retired
1046 member as an adjunct faculty member or as a participant in a
1047 phased retirement program within the State University System
1048 after the retired member has been retired for 1 calendar month,
1049 in accordance with s. 121.021(39). Any retired member who is
1050 reemployed within 1 calendar month after retirement shall void
1051 his or her application for retirement benefits. The State
1052 University System is subject to the retired contribution
1053 required in subparagraph 7., as appropriate. A retired member
1054 may be reemployed as an adjunct faculty member or a participant
1055 in a phased retirement program for no more than 780 hours during
1056 the first 12 months of his or her retirement. Any retired member
1057 reemployed for more than 780 hours during the first 12 months of
1058 retirement shall give timely notice in writing to the employer
1059 and to the division of the date he or she will exceed the
1060 limitation. The division shall suspend his or her retirement
1061 benefits for the remainder of the first 12 months of retirement.
1062 Any person employed in violation of this subparagraph and any
1063 employing agency which knowingly employs or appoints such person
1064 without notifying the Division of Retirement to suspend
1065 retirement benefits shall be jointly and severally liable for
1066 reimbursement to the retirement trust fund of any benefits paid
1067 during the reemployment limitation period. To avoid liability,
1068 such employing agency shall have a written statement from the
1069 retiree that he or she is not retired from a state-administered
1070 retirement system. Any retirement benefits received by a retired
1071 member while reemployed in excess of 780 hours during the first
1072 12 months of retirement shall be repaid to the Retirement System
1073 Trust Fund, and retirement benefits shall remain suspended until
1074 repayment is made. Benefits suspended beyond the end of the
1075 retired member’s first 12 months of retirement shall apply
1076 toward repayment of benefits received in violation of the 780
1077 hour reemployment limitation.
1078 6. The Board of Trustees of the Florida School for the Deaf
1079 and the Blind may reemploy a retired member as a substitute
1080 teacher, substitute residential instructor, or substitute nurse
1081 on a noncontractual basis after he or she has been retired for 1
1082 calendar month, in accordance with s. 121.021(39). Any retired
1083 member who is reemployed within 1 calendar month after
1084 retirement shall void his or her application for retirement
1085 benefits. The Board of Trustees of the Florida School for the
1086 Deaf and the Blind reemploying such teachers, residential
1087 instructors, or nurses is subject to the retirement contribution
1088 required by subparagraph 7. Reemployment of a retired member as
1089 a substitute teacher, substitute residential instructor, or
1090 substitute nurse is limited to 780 hours during the first 12
1091 months of his or her retirement. Any retired member reemployed
1092 for more than 780 hours during the first 12 months of retirement
1093 shall give timely notice in writing to the employer and to the
1094 division of the date he or she will exceed the limitation. The
1095 division shall suspend his or her retirement benefits for the
1096 remainder of the first 12 months of retirement. Any person
1097 employed in violation of this subparagraph and any employing
1098 agency which knowingly employs or appoints such person without
1099 notifying the Division of Retirement to suspend retirement
1100 benefits shall be jointly and severally liable for reimbursement
1101 to the retirement trust fund of any benefits paid during the
1102 reemployment limitation period. To avoid liability, such
1103 employing agency shall have a written statement from the retiree
1104 that he or she is not retired from a state-administered
1105 retirement system. Any retirement benefits received by a retired
1106 member while reemployed in excess of 780 hours during the first
1107 12 months of retirement shall be repaid to the Retirement System
1108 Trust Fund, and his or her retirement benefits shall remain
1109 suspended until payment is made. Benefits suspended beyond the
1110 end of the retired member’s first 12 months of retirement shall
1111 apply toward repayment of benefits received in violation of the
1112 780-hour reemployment limitation.
1113 7. The employment by an employer of any retiree or DROP
1114 participant of any state-administered retirement system shall
1115 have no effect on the average final compensation or years of
1116 creditable service of the retiree or DROP participant. Prior to
1117 July 1, 1991, upon employment of any person, other than an
1118 elected officer as provided in s. 121.053, who has been retired
1119 under any state-administered retirement program, the employer
1120 shall pay retirement contributions in an amount equal to the
1121 unfunded actuarial liability portion of the employer
1122 contribution which would be required for regular members of the
1123 Florida Retirement System. Effective July 1, 1991, contributions
1124 shall be made as provided in s. 121.122 for retirees with
1125 renewed membership or subsection (13) with respect to DROP
1126 participants.
1127 8. Any person who has previously retired and who is holding
1128 an elective public office or an appointment to an elective
1129 public office eligible for the Elected Officers’ Class on or
1130 after July 1, 1990, shall be enrolled in the Florida Retirement
1131 System as provided in s. 121.053(1)(b) or, if holding an
1132 elective public office that does not qualify for the Elected
1133 Officers’ Class on or after July 1, 1991, shall be enrolled in
1134 the Florida Retirement System as provided in s. 121.122, and
1135 shall continue to receive retirement benefits as well as
1136 compensation for the elected officer’s service for as long as he
1137 or she remains in elective office. However, any retired member
1138 who served in an elective office prior to July 1, 1990,
1139 suspended his or her retirement benefit, and had his or her
1140 Florida Retirement System membership reinstated shall, upon
1141 retirement from such office, have his or her retirement benefit
1142 recalculated to include the additional service and compensation
1143 earned.
1144 9. Any person who is holding an elective public office
1145 which is covered by the Florida Retirement System and who is
1146 concurrently employed in nonelected covered employment may elect
1147 to retire while continuing employment in the elective public
1148 office, provided that he or she shall be required to terminate
1149 his or her nonelected covered employment. Any person who
1150 exercises this election shall receive his or her retirement
1151 benefits in addition to the compensation of the elective office
1152 without regard to the time limitations otherwise provided in
1153 this subsection. No person who seeks to exercise the provisions
1154 of this subparagraph, as the same existed prior to May 3, 1984,
1155 shall be deemed to be retired under those provisions, unless
1156 such person is eligible to retire under the provisions of this
1157 subparagraph, as amended by chapter 84-11, Laws of Florida.
1158 10. The limitations of this paragraph apply to reemployment
1159 in any capacity with an “employer” as defined in s. 121.021(10),
1160 irrespective of the category of funds from which the person is
1161 compensated.
1162 11. An employing agency may reemploy a retired member as a
1163 firefighter or paramedic after the retired member has been
1164 retired for 1 calendar month, in accordance with s. 121.021(39).
1165 Any retired member who is reemployed within 1 calendar month
1166 after retirement shall void his or her application for
1167 retirement benefits. The employing agency reemploying such
1168 firefighter or paramedic is subject to the retired contribution
1169 required in subparagraph 8. Reemployment of a retired
1170 firefighter or paramedic is limited to no more than 780 hours
1171 during the first 12 months of his or her retirement. Any retired
1172 member reemployed for more than 780 hours during the first 12
1173 months of retirement shall give timely notice in writing to the
1174 employer and to the division of the date he or she will exceed
1175 the limitation. The division shall suspend his or her retirement
1176 benefits for the remainder of the first 12 months of retirement.
1177 Any person employed in violation of this subparagraph and any
1178 employing agency which knowingly employs or appoints such person
1179 without notifying the Division of Retirement to suspend
1180 retirement benefits shall be jointly and severally liable for
1181 reimbursement to the Retirement System Trust Fund of any
1182 benefits paid during the reemployment limitation period. To
1183 avoid liability, such employing agency shall have a written
1184 statement from the retiree that he or she is not retired from a
1185 state-administered retirement system. Any retirement benefits
1186 received by a retired member while reemployed in excess of 780
1187 hours during the first 12 months of retirement shall be repaid
1188 to the Retirement System Trust Fund, and retirement benefits
1189 shall remain suspended until repayment is made. Benefits
1190 suspended beyond the end of the retired member’s first 12 months
1191 of retirement shall apply toward repayment of benefits received
1192 in violation of the 780-hour reemployment limitation.
1193 (c) The provisions of this subsection apply to retirees, as
1194 defined in s. 121.4501(2)(j), of the Public Employee Optional
1195 Retirement Program created in part II, subject to the following
1196 conditions:
1197 1. Such retirees may not be reemployed with an employer
1198 participating in the Florida Retirement System as provided in
1199 paragraph (b) until such person has been retired for 3 calendar
1200 months, unless the participant has reached the normal retirement
1201 requirements of the defined benefit plan as provided in s.
1202 121.021(29).
1203 2. Such retiree employed in violation of this subsection
1204 and any employing agency that knowingly employs or appoints such
1205 person shall be jointly and severally liable for reimbursement
1206 of any benefits paid to the retirement trust fund from which the
1207 benefits were paid, including the Retirement System Trust Fund
1208 and the Public Employee Optional Retirement Program Trust Fund,
1209 as appropriate. To avoid liability, such employing agency must
1210 have a written statement from the retiree that he or she is not
1211 retired from a state-administered retirement system.
1212 (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
1213 subject to the provisions of this section, the Deferred
1214 Retirement Option Program, hereinafter referred to as the DROP,
1215 is a program under which an eligible member of the Florida
1216 Retirement System may elect to participate, deferring receipt of
1217 retirement benefits while continuing employment with his or her
1218 Florida Retirement System employer. The deferred monthly
1219 benefits shall accrue in the Florida Retirement System Trust
1220 Fund on behalf of the participant, plus interest compounded
1221 monthly, for the specified period of the DROP participation, as
1222 provided in paragraph (c). Upon termination of employment, the
1223 participant shall receive the total DROP benefits and begin to
1224 receive the previously determined normal retirement benefits.
1225 Participation in the DROP does not guarantee employment for the
1226 specified period of DROP. Participation in the DROP by an
1227 eligible member beyond the initial 60-month period as authorized
1228 in this subsection shall be on an annual contractual basis for
1229 all participants.
1230 (a) Eligibility of member to participate in the DROP.—All
1231 active Florida Retirement System members in a regularly
1232 established position, and all active members of either the
1233 Teachers’ Retirement System established in chapter 238 or the
1234 State and County Officers’ and Employees’ Retirement System
1235 established in chapter 122, which systems are consolidated
1236 within the Florida Retirement System under s. 121.011, are
1237 eligible to elect participation in the DROP if provided that:
1238 1. The member is not a renewed member of the Florida
1239 Retirement System under s. 121.122, or a member of the State
1240 Community College System Optional Retirement Program under s.
1241 121.051, the Senior Management Service Optional Annuity Program
1242 under s. 121.055, or the optional retirement program for the
1243 State University System under s. 121.35.
1244 2. Except as provided in subparagraph 6., election to
1245 participate is made within 12 months immediately following the
1246 date on which the member first reaches normal retirement date,
1247 or, for a member who reaches normal retirement date based on
1248 service before he or she reaches age 62, or age 55 for Special
1249 Risk Class members, election to participate may be deferred to
1250 the 12 months immediately following the date the member attains
1251 57, or age 52 for Special Risk Class members. Except as provided
1252 in subparagraph 6., a member who delays DROP participation
1253 during the 12-month period immediately following his or her
1254 maximum DROP deferral date, loses a month of DROP participation
1255 for each month delayed. For a member who first reached normal
1256 retirement date or the deferred eligibility date described above
1257 prior to the effective date of this section, election to
1258 participate shall be made within 12 months after the effective
1259 date of this section. A member who fails to make an election
1260 within the such 12-month limitation period forfeits shall
1261 forfeit all rights to participate in the DROP. The member must
1262 shall advise his or her employer and the division in writing of
1263 the date on which the DROP begins shall begin. The Such
1264 beginning date may be after subsequent to the 12-month election
1265 period, but must be within the original 60-month participation
1266 or, with respect to members who are instructional personnel
1267 employed by the Florida School for the Deaf and the Blind and
1268 who have received authorization by the Board of Trustees of the
1269 Florida School for the Deaf and the Blind to participate in the
1270 DROP beyond 60 months, or who are instructional personnel as
1271 defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
1272 received authorization by the district school superintendent to
1273 participate in the DROP beyond 60 months, the 96-month
1274 limitation period as provided in subparagraph (b)1. When
1275 establishing eligibility of the member to participate in the
1276 DROP for the 60-month or, with respect to members who are
1277 instructional personnel employed by the Florida School for the
1278 Deaf and the Blind and who have received authorization by the
1279 Board of Trustees of the Florida School for the Deaf and the
1280 Blind to participate in the DROP beyond 60 months, or who are
1281 instructional personnel as defined in s. 1012.01(2)(a)-(d) in
1282 grades K-12 and who have received authorization by the district
1283 school superintendent to participate in the DROP beyond 60
1284 months, the 96-month maximum participation period, the member
1285 may elect to include or exclude any optional service credit
1286 purchased by the member from the total service used to establish
1287 the normal retirement date. A member who has with dual normal
1288 retirement dates is shall be eligible to elect to participate in
1289 DROP within 12 months after attaining normal retirement date in
1290 either class.
1291 3. The employer of a member electing to participate in the
1292 DROP, or employers if dually employed, shall acknowledge in
1293 writing to the division the date the member’s participation in
1294 the DROP begins and the date the member’s employment and DROP
1295 participation will terminate.
1296 4. Simultaneous employment of a participant by additional
1297 Florida Retirement System employers subsequent to the
1298 commencement of participation in the DROP is shall be
1299 permissible if the provided such employers acknowledge in
1300 writing a DROP termination date no later than the participant’s
1301 existing termination date or the maximum participation 60-month
1302 limitation period as provided in subparagraph (b)1.
1303 5. A DROP participant may change employers while
1304 participating in the DROP, subject to the following:
1305 a. A change of employment must take place without a break
1306 in service so that the member receives salary for each month of
1307 continuous DROP participation. If a member receives no salary
1308 during a month, DROP participation ceases shall cease unless the
1309 employer verifies a continuation of the employment relationship
1310 for such participant pursuant to s. 121.021(39)(b).
1311 b. Such participant and new employer shall notify the
1312 division of the identity of the new employer on forms required
1313 by the division as to the identity of the new employer.
1314 c. The new employer shall acknowledge, in writing, the
1315 participant’s DROP termination date, which may be extended but
1316 not beyond the maximum participation original 60-month or, with
1317 respect to members who are instructional personnel employed by
1318 the Florida School for the Deaf and the Blind and who have
1319 received authorization by the Board of Trustees of the Florida
1320 School for the Deaf and the Blind to participate in the DROP
1321 beyond 60 months, or who are instructional personnel as defined
1322 in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
1323 authorization by the district school superintendent to
1324 participate in the DROP beyond 60 months, the 96-month period
1325 provided in subparagraph (b)1., shall acknowledge liability for
1326 any additional retirement contributions and interest required if
1327 the participant fails to timely terminate employment, and is
1328 shall be subject to the adjustment required in sub-subparagraph
1329 (c)5.d.
1330 6. Effective July 1, 2001, for instructional personnel as
1331 defined in s. 1012.01(2), election to participate in the DROP is
1332 shall be made at any time following the date on which the member
1333 first reaches normal retirement date. The member shall advise
1334 his or her employer and the division in writing of the date on
1335 which DROP begins the Deferred Retirement Option Program shall
1336 begin. When establishing eligibility of the member to
1337 participate in the DROP for the 60-month or, with respect to
1338 members who are instructional personnel employed by the Florida
1339 School for the Deaf and the Blind and who have received
1340 authorization by the Board of Trustees of the Florida School for
1341 the Deaf and the Blind to participate in the DROP beyond 60
1342 months, or who are instructional personnel as defined in s.
1343 1012.01(2)(a)-(d) in grades K-12 and who have received
1344 authorization by the district school superintendent to
1345 participate in the DROP beyond 60 months, the 96-month maximum
1346 participation period, as provided in subparagraph (b)1., the
1347 member may elect to include or exclude any optional service
1348 credit purchased by the member from the total service used to
1349 establish the normal retirement date. A member who has with dual
1350 normal retirement dates is shall be eligible to elect to
1351 participate in either class.
1352 (b) Participation in the DROP.—
1353 1. An eligible member may elect to participate in the DROP
1354 for a period not to exceed a maximum of 60 calendar months.
1355 However, or, with respect to members who are instructional
1356 personnel employed by the Florida School for the Deaf and the
1357 Blind and authorized who have received authorization by the
1358 Board of Trustees of the Florida School for the Deaf and the
1359 Blind to participate in the DROP beyond 60 months, or who are
1360 instructional personnel as defined in s. 1012.01(2)(a)-(d) in
1361 grades K-12 and authorized who have received authorization by
1362 the district school superintendent to participate in the DROP
1363 beyond 60 calendar months, or who are instructional personnel as
1364 defined in s. 1012.01(2) employed by a developmental research
1365 school and authorized by the school’s director, or if the school
1366 has no director, by the school’s principal, may participate in
1367 DROP for up to 36 calendar months beyond the 60-month period. 96
1368 calendar months immediately following the date on which the
1369 member first reaches his or her normal retirement date or the
1370 date to which he or she is eligible to defer his or her election
1371 to participate as provided in subparagraph (a)2. However, a
1372 member who has reached normal retirement date prior to the
1373 effective date of the DROP shall be eligible to participate in
1374 the DROP for a period of time not to exceed 60 calendar months
1375 or, with respect to members who are instructional personnel
1376 employed by the Florida School for the Deaf and the Blind and
1377 who have received authorization by the Board of Trustees of the
1378 Florida School for the Deaf and the Blind to participate in the
1379 DROP beyond 60 months, or who are instructional personnel as
1380 defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
1381 received authorization by the district school superintendent to
1382 participate in the DROP beyond 60 calendar months, 96 calendar
1383 months immediately following the effective date of the DROP,
1384 except a member of the Special Risk Class who has reached normal
1385 retirement date prior to the effective date of the DROP and
1386 whose total accrued value exceeds 75 percent of average final
1387 compensation as of his or her effective date of retirement shall
1388 be eligible to participate in the DROP for no more than 36
1389 calendar months immediately following the effective date of the
1390 DROP.
1391 2. Upon deciding to participate in the DROP, the member
1392 shall submit, on forms required by the division:
1393 a. A written election to participate in the DROP;
1394 b. Selection of the DROP participation and termination
1395 dates, which satisfy the limitations stated in paragraph (a) and
1396 subparagraph 1. The Such termination date must shall be in a
1397 binding letter of resignation to with the employer, establishing
1398 a deferred termination date. The member may change the
1399 termination date within the limitations of subparagraph 1., but
1400 only with the written approval of the his or her employer;
1401 c. A properly completed DROP application for service
1402 retirement as provided in this section; and
1403 d. Any other information required by the division.
1404 3. The DROP participant is shall be a retiree under the
1405 Florida Retirement System for all purposes, except for paragraph
1406 (5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
1407 and 121.122. DROP participation is final and cannot be cancelled
1408 by the participant after the first payment is credited during
1409 the DROP participation period. However, participation in the
1410 DROP does not alter the participant’s employment status, and the
1411 member is such employee shall not be deemed retired from
1412 employment until his or her deferred resignation is effective
1413 and termination occurs as provided in s. 121.021(39).
1414 4. Elected officers are shall be eligible to participate in
1415 the DROP subject to the following:
1416 a. An elected officer who reaches normal retirement date
1417 during a term of office may defer the election to participate in
1418 the DROP until the next succeeding term in that office. An Such
1419 elected officer who exercises this option may participate in the
1420 DROP for up to 60 calendar months or a period of no longer than
1421 the such succeeding term of office, whichever is less.
1422 b. An elected or a nonelected participant may run for a
1423 term of office while participating in DROP and, if elected,
1424 extend the DROP termination date accordingly;, except, however,
1425 if the such additional term of office exceeds the 60-month
1426 limitation established in subparagraph 1., and the officer does
1427 not resign from office within such 60-month limitation, the
1428 retirement and the participant’s DROP is shall be null and void
1429 as provided in sub-subparagraph (c)5.d.
1430 c. For DROP participation ending:
1431 (I) Before January 1, 2010, an elected officer who is
1432 dually employed and elects to participate in DROP must shall be
1433 required to satisfy the definition of termination within the
1434 original 60-month period or maximum participation or, with
1435 respect to members who are instructional personnel employed by
1436 the Florida School for the Deaf and the Blind and who have
1437 received authorization by the Board of Trustees of the Florida
1438 School for the Deaf and the Blind to participate in the DROP
1439 beyond 60 months, or who are instructional personnel as defined
1440 in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
1441 authorization by the district school superintendent to
1442 participate in the DROP beyond 60 months, the 96-month
1443 limitation period as provided in subparagraph 1. for the
1444 nonelected position and may continue employment as an elected
1445 officer as provided in s. 121.053. The elected officer shall
1446 will be enrolled as a renewed member in the Elected Officers’
1447 Class or the Regular Class, as provided in ss. 121.053 and
1448 121.122, on the first day of the month after termination of
1449 employment in the nonelected position and termination of DROP.
1450 Distribution of the DROP benefits shall be made as provided in
1451 paragraph (c).
1452 (II) On or after January 1, 2010, an elected officer who is
1453 dually employed and elects to participate in DROP must satisfy
1454 the definition of termination in s. 121.021(39) for the
1455 nonelected position within the original 60-month period or
1456 maximum period as provided in subparagraph 1. If the elected
1457 officer does not terminate from elective office within the
1458 original 60-month period or maximum period, he or she may defer
1459 termination as provided in s. 121.053 but is subject to
1460 termination in s. 121.021(39) to finalize retirement.
1461 (c) Benefits payable under the DROP.—
1462 1. Effective on with the date of DROP participation, the
1463 member’s initial normal monthly benefit, including creditable
1464 service, optional form of payment, and average final
1465 compensation, and the effective date of retirement are shall be
1466 fixed. The beneficiary established under the Florida Retirement
1467 System is shall be the beneficiary eligible to receive any DROP
1468 benefits payable if the DROP participant dies before completing
1469 prior to the completion of the period of DROP participation. If
1470 In the event a joint annuitant predeceases the member, the
1471 member may name a beneficiary to receive accumulated DROP
1472 benefits payable. The Such retirement benefit, the annual cost
1473 of living adjustments provided in s. 121.101, and interest shall
1474 accrue monthly in the Florida Retirement System Trust Fund. The
1475 Such interest accrues shall accrue at an effective annual rate
1476 of 6.5 percent compounded monthly, on the prior month’s
1477 accumulated ending balance, up to the month of termination or
1478 death.
1479 2. Each employee who elects to participate in the DROP may
1480 shall be allowed to elect to receive a lump-sum payment for
1481 accrued annual leave earned in accordance with agency policy
1482 upon beginning participation in the DROP. The Such accumulated
1483 leave payment certified to the division upon commencement of
1484 DROP must shall be included in the calculation of the member’s
1485 average final compensation. The employee electing the such lump
1486 sum payment is upon beginning participation in DROP will not be
1487 eligible to receive a second lump-sum payment upon termination,
1488 except to the extent the employee has earned additional annual
1489 leave which combined with the original payment does not exceed
1490 the maximum lump-sum payment allowed by the employing agency’s
1491 policy or rules. An Such early lump-sum payment shall be based
1492 on the hourly wage of the employee at the time he or she begins
1493 participation in the DROP. If the member elects to wait and
1494 receive a such lump-sum payment upon termination of DROP and
1495 termination of employment with the employer, any accumulated
1496 leave payment made at that time may not cannot be included in
1497 the member’s retirement benefit, which was determined and fixed
1498 by law when the employee elected to participate in the DROP.
1499 3. The effective date of DROP participation and the
1500 effective date of retirement of a DROP participant is shall be
1501 the first day of the month selected by the member to begin
1502 participation in the DROP, if provided such date is properly
1503 established, with the written confirmation of the employer, and
1504 the approval of the division, on forms required by the division.
1505 4. Normal retirement benefits and any interest thereon
1506 shall continue to accrue in the DROP until the established
1507 termination date of the DROP, or until the participant
1508 terminates employment or dies before prior to such date.
1509 Although individual DROP accounts may shall not be established,
1510 a separate accounting of each participant’s accrued benefits
1511 under the DROP shall be calculated and provided to participants.
1512 5. At the conclusion of the participant’s DROP, the
1513 division shall distribute the participant’s total accumulated
1514 DROP benefits, subject to the following provisions:
1515 a. The division shall receive verification by the
1516 participant’s employer or employers that the such participant
1517 has terminated employment as provided in s. 121.021(39)(b).
1518 b. The terminated DROP participant or, if deceased, the
1519 such participant’s named beneficiary, shall elect on forms
1520 provided by the division to receive payment of the DROP benefits
1521 in accordance with one of the options listed below. If For a
1522 participant or beneficiary who fails to elect a method of
1523 payment within 60 days after of termination of the DROP, the
1524 division shall will pay a lump sum as provided in sub-sub
1525 subparagraph (I).
1526 (I) Lump sum.—All accrued DROP benefits, plus interest,
1527 less withholding taxes remitted to the Internal Revenue Service,
1528 shall be paid to the DROP participant or surviving beneficiary.
1529 (II) Direct rollover.—All accrued DROP benefits, plus
1530 interest, shall be paid from the DROP directly to the custodian
1531 of an eligible retirement plan as defined in s. 402(c)(8)(B) of
1532 the Internal Revenue Code. However, in the case of an eligible
1533 rollover distribution to the surviving spouse of a deceased
1534 participant, an eligible retirement plan is an individual
1535 retirement account or an individual retirement annuity as
1536 described in s. 402(c)(9) of the Internal Revenue Code.
1537 (III) Partial lump sum.—A portion of the accrued DROP
1538 benefits shall be paid to the DROP participant or surviving
1539 spouse, less withholding taxes remitted to the Internal Revenue
1540 Service, and the remaining DROP benefits must shall be
1541 transferred directly to the custodian of an eligible retirement
1542 plan as defined in s. 402(c)(8)(B) of the Internal Revenue Code.
1543 However, in the case of an eligible rollover distribution to the
1544 surviving spouse of a deceased participant, an eligible
1545 retirement plan is an individual retirement account or an
1546 individual retirement annuity as described in s. 402(c)(9) of
1547 the Internal Revenue Code. The proportions must shall be
1548 specified by the DROP participant or surviving beneficiary.
1549 c. The form of payment selected by the DROP participant or
1550 surviving beneficiary must comply complies with the minimum
1551 distribution requirements of the Internal Revenue Code.
1552 d. A DROP participant who fails to terminate employment as
1553 defined in s. 121.021(39)(b) shall be deemed as not to be
1554 retired, and the DROP election is shall be null and void.
1555 Florida Retirement System membership shall be reestablished
1556 retroactively to the date of the commencement of the DROP, and
1557 each employer with whom the participant continues employment
1558 must shall be required to pay to the Florida Retirement System
1559 Trust Fund the difference between the DROP contributions paid in
1560 paragraph (i) and the contributions required for the applicable
1561 Florida Retirement System class of membership during the period
1562 the member participated in the DROP, plus 6.5 percent interest
1563 compounded annually.
1564 6. The retirement benefits of a retiree who participated in
1565 DROP and meets the definition of termination in s.
1566 121.021(39)(b), but is in violation of the reemployment
1567 provisions provided in subsection (9), must be suspended during
1568 the months in which the reemployed retiree is in violation. A
1569 retiree reemployed in violation of this subparagraph and the
1570 agency that employs or appoints such member without notifying
1571 the Division of Retirement to suspend retirement benefits are
1572 jointly and severally liable for any benefits paid during the
1573 reemployment limitation period. To avoid liability, the
1574 employing agency must have a written statement from the retiree
1575 that he or she is not retired from a state-administered
1576 retirement system.
1577 a. For DROP participation ending before January 1, 2010,
1578 any retirement benefits received by a retiree while employed in
1579 violation of the reemployment limitations during the 12-month
1580 limitation period must be repaid to the Florida Retirement
1581 System Trust Fund, and his or her retirement benefits shall
1582 remain suspended until payment is made. Benefits suspended
1583 beyond the end of the retiree’s 12-calendar month limitation
1584 period apply toward repayment of benefits received in violation
1585 of the reemployment limitations.
1586 b. For DROP participation ending on or after January 1,
1587 2010, any retirement benefits received by a retiree while
1588 employed in violation of the reemployment limitations must be
1589 repaid to the Florida Retirement System Trust Fund, and his or
1590 her retirement benefits remain suspended until payment is made.
1591 Benefits suspended after the retiree has terminated employment
1592 apply toward repayment of benefits received in violation of the
1593 reemployment limitations.
1594 7.6. The accrued benefits of any DROP participant, and any
1595 contributions accumulated under the such program, are shall not
1596 be subject to assignment, execution, attachment, or to any legal
1597 process whatsoever, except for qualified domestic relations
1598 orders by a court of competent jurisdiction, income deduction
1599 orders as provided in s. 61.1301, and federal income tax levies.
1600 8.7. DROP participants are shall not be eligible for
1601 disability retirement benefits as provided in subsection (4).
1602 (d) Death benefits under the DROP.—
1603 1. Upon the death of a DROP participant, the named
1604 beneficiary is shall be entitled to apply for and receive the
1605 accrued benefits in the DROP as provided in sub-subparagraph
1606 (c)5.b.
1607 2. The normal retirement benefit accrued to the DROP during
1608 the month of a participant’s death is shall be the final monthly
1609 benefit credited for such DROP participant.
1610 3. Eligibility to participate in the DROP terminates upon
1611 death of the participant. If the participant dies on or after
1612 the effective date of enrollment in the DROP, but before prior
1613 to the first monthly benefit is being credited to the DROP,
1614 Florida Retirement System benefits are shall be paid in
1615 accordance with subparagraph (7)(c)1. or subparagraph 2.
1616 4. A DROP participant’s participants’ survivors are shall
1617 not be eligible to receive Florida Retirement System death
1618 benefits as provided in paragraph (7)(d).
1619 (e) Cost-of-living adjustment.—On each July 1, the
1620 participant’s participants’ normal retirement benefit shall be
1621 increased as provided in s. 121.101.
1622 (f) Retiree health insurance subsidy.—DROP participants are
1623 not eligible to apply for the retiree health insurance subsidy
1624 payments as provided in s. 112.363 until such participants have
1625 terminated employment and participation in the DROP.
1626 (g) Renewed membership.—
1627 1. DROP participants who end DROP participation before
1628 January 1, 2010, are shall not be eligible for renewed
1629 membership in the Florida Retirement System under ss. 121.053
1630 and 121.122 until termination of employment is effectuated as
1631 provided in s. 121.021(39)(b).
1632 2. DROP participants who end DROP participation on or after
1633 January 1, 2010, are not eligible for renewed membership in a
1634 state-administered retirement system.
1635 (h) Employment limitation after DROP participation.—Upon
1636 satisfying the definition of termination of employment as
1637 provided in s. 121.021(39)(b), DROP participants are shall be
1638 subject to the same such reemployment limitations as other
1639 retirees. Reemployment restrictions applicable to retirees as
1640 provided in subsection (9) do shall not apply to DROP
1641 participants until their employment and participation in the
1642 DROP are terminated.
1643 (i) Contributions.—
1644 1. All employers paying the salary of a DROP participant
1645 filling a regularly established position shall contribute 8.0
1646 percent of such participant’s gross compensation for the period
1647 of July 1, 2002, through June 30, 2003, and the 11.56 percent of
1648 such compensation required by s. 121.71 thereafter, which shall
1649 constitute the entire employer DROP contribution with respect to
1650 such participant. Such contributions, payable to the Florida
1651 Retirement System Trust Fund in the same manner as required in
1652 s. 121.071, must shall be made as appropriate for each pay
1653 period and are in addition to contributions required for social
1654 security and the Retiree Health Insurance Subsidy Trust Fund.
1655 Such employer, social security, and health insurance subsidy
1656 contributions are not included in the DROP.
1657 2. The employer shall, in addition to subparagraph 1., also
1658 withhold one-half of the entire social security contribution
1659 required for the participant. Contributions for social security
1660 by each participant and each employer, in the amount required
1661 for social security coverage as now or hereafter provided by the
1662 federal Social Security Act, are shall be in addition to
1663 contributions specified in subparagraph 1.
1664 3. All employers paying the salary of a DROP participant
1665 filling a regularly established position shall contribute the
1666 percent of such participant’s gross compensation required in s.
1667 121.071(4), which shall constitute the employer’s health
1668 insurance subsidy contribution with respect to such participant.
1669 Such contributions must shall be deposited by the administrator
1670 in the Retiree Health Insurance Subsidy Trust Fund.
1671 (j) Forfeiture of retirement benefits.—Nothing in This
1672 section does not shall be construed to remove DROP participants
1673 from the scope of s. 8(d), Art. II of the State Constitution, s.
1674 112.3173, and paragraph (5)(f). DROP participants who commit a
1675 specified felony offense while employed are will be subject to
1676 forfeiture of all retirement benefits, including DROP benefits,
1677 pursuant to those provisions of law.
1678 (k) Administration of program.—The division shall adopt
1679 make such rules as are necessary for the effective and efficient
1680 administration of this subsection. The division is shall not be
1681 required to advise members of the federal tax consequences of an
1682 election related to the DROP but may advise members to seek
1683 independent advice.
1684 Section 6. Section 121.122, Florida Statutes, is amended to
1685 read:
1686 121.122 Renewed membership in system.—
1687 (1) A retiree of a state-administered retirement system who
1688 is initially reemployed on or after January 1, 2010, is not
1689 eligible for renewed membership.
1690 (2) Except as provided in s. 121.053, effective July 1,
1691 1991, through December 31, 2009, any retiree of a state
1692 administered retirement system who is initially reemployed
1693 employed in a regularly established position with a covered
1694 employer shall be enrolled as a compulsory member of the Regular
1695 Class of the Florida Retirement System or, effective July 1,
1696 1997, through December 31, 2009, any retiree of a state
1697 administered retirement system who is initially reemployed
1698 employed in a position included in the Senior Management Service
1699 Class shall be enrolled as a compulsory member of the Senior
1700 Management Service Class of the Florida Retirement System as
1701 provided in s. 121.055, and is shall be entitled to receive an
1702 additional retirement benefit, subject to the following
1703 conditions:
1704 (1)(a) Such member must shall resatisfy the age and service
1705 requirements as provided in this chapter for initial membership
1706 under the system, unless the such member elects to participate
1707 in the Senior Management Service Optional Annuity Program in
1708 lieu of the Senior Management Service Class, as provided in s.
1709 121.055(6).
1710 (b) Such member is shall not be entitled to disability
1711 benefits as provided in s. 121.091(4).
1712 (c) Such member must meet the reemployment after retirement
1713 limitations as provided in s. 121.091(9), as applicable.
1714 (3)(2) Upon reemployment of a retiree renewed membership,
1715 the employer of such member shall pay the applicable employer
1716 contributions as required by ss. 121.71, 121.74, 121.76, and
1717 112.363 ss. 121.055(3) and 121.071(1)(a) and (4).
1718 (4)(3) The retiree of a state-administered retirement
1719 system who is initially reemployed before January 1, 2010, is
1720 Such member shall be entitled to purchase additional retirement
1721 credit in the Regular Class or the Senior Management Service
1722 Class, as applicable, for any postretirement service performed
1723 in a regularly established position as follows:
1724 (a) For regular class service before prior to July 1, 1991,
1725 by paying the Regular Class applicable employee and employer
1726 contributions for the period being claimed, plus 4 percent
1727 interest compounded annually from first year of service claimed
1728 until July 1, 1975, and 6.5 percent interest compounded
1729 thereafter, until full payment is made to the Florida Retirement
1730 System Trust Fund; or
1731 (b) For Senior Management Service Class before prior to
1732 June 1, 1997, as provided in s. 121.055(1)(j).
1733
1734 The contribution for postretirement service between July 1,
1735 1985, and July 1, 1991, for which the reemployed retiree
1736 contribution was paid, is shall be the difference between the
1737 such contribution and the total applicable contribution for the
1738 period being claimed, plus interest. The employer of such member
1739 may pay the applicable employer contribution in lieu of the
1740 member. If a member does not wish to claim credit for all of the
1741 postretirement service for which he or she is eligible, the
1742 service the member claims must be the most recent service.
1743 (5)(4) No Creditable service for which credit was received,
1744 or which remained unclaimed, at retirement may not be claimed or
1745 applied toward service credit earned following renewed
1746 membership. However, for retirees initially reemployed before
1747 January 1, 2010, service earned as an elected officer with
1748 renewed membership in the Elected Officers’ Class may be used in
1749 conjunction with creditable service earned under this section,
1750 if provided the applicable vesting requirements and other
1751 existing statutory conditions required by this chapter are met.
1752 (6)(5) Notwithstanding any other limitations provided in
1753 this section, a participant of the State University System
1754 Optional Retirement Program, the State Community College
1755 Optional Retirement Program, or the Senior Management Service
1756 Optional Annuity Program who terminated employment and commenced
1757 receiving a distribution an annuity under the provisions of the
1758 optional program, who initially renews membership before January
1759 1, 2010, in the Regular Class as required by this section upon
1760 reemployment after retirement, and who had previously earned
1761 creditable Florida Retirement System service that was not
1762 included in any retirement benefit may include such previous
1763 service toward vesting and service credit in the second career
1764 benefit provided under renewed membership.
1765 (7)(6) A Any renewed member who is not receiving the
1766 maximum health insurance subsidy provided in s. 112.363 is shall
1767 be entitled to earn additional credit toward the maximum health
1768 insurance subsidy. Any additional subsidy due because of such
1769 additional credit may shall be received only at the time of
1770 payment of the second career retirement benefit. In no case
1771 shall The total health insurance subsidy received by a retiree
1772 receiving benefits from initial and renewed membership may not
1773 exceed the maximum allowed in s. 112.363.
1774 Section 7. Paragraph (h) of subsection (3) and paragraphs
1775 (a) and (e) of subsection (5) of section 121.35, Florida
1776 Statutes, are amended, and paragraph (g) is added to subsection
1777 (5) of that section, to read:
1778 121.35 Optional retirement program for the State University
1779 System.—
1780 (3) ELECTION OF OPTIONAL PROGRAM.—
1781 (h) A participant in the optional retirement program may
1782 not participate in more than one state-administered retirement
1783 system, plan, or class simultaneously. Except as provided in s.
1784 121.052(6)(d), a participant who is or becomes dually employed
1785 in two or more positions covered by the Florida Retirement
1786 System, one of which is eligible for the optional program and
1787 one of which is not, may remain a member of the optional program
1788 and contributions shall be paid as required only on the salary
1789 earned in the position eligible for the optional program during
1790 the such period of dual employment; or, within 90 days after
1791 becoming dually employed, he or she may elect membership in the
1792 Regular Class of the Florida Retirement System in lieu of the
1793 optional program and contributions shall be paid as required on
1794 the total salary received for all employment. At retirement, the
1795 average final compensation used to calculate any benefits for
1796 which the member becomes eligible under the Florida Retirement
1797 System must shall be based on all salary reported for both
1798 positions during such period of dual employment. If the When
1799 such member ceases to be dually employed, he or she may, within
1800 90 days, elect to remain in the Florida Retirement System class
1801 for which he or she is eligible or to again become a participant
1802 in the optional retirement program. Failure to elect membership
1803 in the optional program within 90 days shall result in
1804 compulsory membership in the Florida Retirement System, except
1805 that a member filling a faculty position at under a college with
1806 a faculty practice plan at the University of Florida, at or the
1807 Medical Center at the University of South Florida, or other
1808 state university shall again participate in the optional
1809 retirement program as required in s. 121.051(1)(a).
1810 (5) BENEFITS.—
1811 (a) Benefits are shall be payable under the optional
1812 retirement program only to vested participants in the program,
1813 or their beneficiaries as designated by the participant in the
1814 contract with a provider company, and such benefits shall be
1815 paid only by the designated company in accordance with s. 403(b)
1816 of the Internal Revenue Code and in accordance with the terms of
1817 the annuity contract or contracts applicable to the participant.
1818 Benefits shall accrue in individual accounts that are
1819 participant-directed, portable, and funded by employer
1820 contributions and the earnings thereon. The participant must be
1821 terminated from all employment with all Florida Retirement
1822 System employers, as provided in s. 121.021(39), to begin
1823 receiving the employer-funded benefit. Benefits funded by
1824 employer contributions are shall be payable in accordance with
1825 the following terms and conditions:
1826 1. Benefits shall be paid payable only to a participant, to
1827 his or her beneficiaries, or to his or her estate, as designated
1828 by the participant.
1829 2. Benefits shall be paid by the provider company or
1830 companies in accordance with the law, the provisions of the
1831 contract, and any applicable department board rule or policy.
1832 3. In the event of a participant’s death, moneys
1833 accumulated by, or on behalf of, the participant, less
1834 withholding taxes remitted to the Internal Revenue Service, if
1835 any, shall be distributed to the participant’s designated
1836 beneficiary or beneficiaries, or to the participant’s estate, as
1837 if the participant retired on the date of death, as provided in
1838 paragraph (c). No other death benefits are shall be available to
1839 for survivors of participants under the optional retirement
1840 program except for such benefits, or coverage for such benefits,
1841 as are separately afforded by the employer, at the employer’s
1842 discretion.
1843 (e) A participant who chooses to receive his or her
1844 benefits upon termination of employment as defined in s.
1845 121.021(39) must shall have responsibility to notify the
1846 provider company of the date on which he or she wishes benefits
1847 funded by employer contributions to begin. Benefits may be
1848 deferred until such time as the participant chooses to make such
1849 application.
1850 (g) For purposes of this section, the term “retiree” means
1851 a former participant of the optional retirement program who has
1852 terminated employment and has taken a distribution, including a
1853 rollover or trustee-to-trustee transfer, as provided in this
1854 subsection, except for a mandatory distribution of a de minimis
1855 account authorized by the department.
1856 Section 8. Paragraph (f) of subsection (2) of section
1857 121.4501, Florida Statutes, is amended to read:
1858 121.4501 Public Employee Optional Retirement Program.—
1859 (2) DEFINITIONS.—As used in this part, the term:
1860 (f) “Eligible employee” means an officer or employee, as
1861 defined in s. 121.021(11), who:
1862 1. Is a member of, or is eligible for membership in, the
1863 Florida Retirement System, including any renewed member of the
1864 Florida Retirement System initially reemployed before January 1,
1865 2010; or
1866 2. Participates in, or is eligible to participate in, the
1867 Senior Management Service Optional Annuity Program as
1868 established under s. 121.055(6), the State Community College
1869 System Optional Retirement Program as established under s.
1870 121.051(2)(c), or the State University System Optional
1871 Retirement Program established under s. 121.35.
1872
1873 The term does not include any member participating in the
1874 Deferred Retirement Option Program established under s.
1875 121.091(13), a retiree of a state-administered retirement system
1876 initially reemployed on or after January 1, 2010, or a mandatory
1877 participant of the State University System Optional Retirement
1878 Program established under s. 121.35.
1879 Section 9. Paragraph (b) of subsection (1) of section
1880 121.591, Florida Statutes, is amended to read:
1881 121.591 Benefits payable under the Public Employee Optional
1882 Retirement Program of the Florida Retirement System.—Benefits
1883 may not be paid under this section unless the member has
1884 terminated employment as provided in s. 121.021(39)(a) or is
1885 deceased and a proper application has been filed in the manner
1886 prescribed by the state board or the department. The state board
1887 or department, as appropriate, may cancel an application for
1888 retirement benefits when the member or beneficiary fails to
1889 timely provide the information and documents required by this
1890 chapter and the rules of the state board and department. In
1891 accordance with their respective responsibilities as provided
1892 herein, the State Board of Administration and the Department of
1893 Management Services shall adopt rules establishing procedures
1894 for application for retirement benefits and for the cancellation
1895 of such application when the required information or documents
1896 are not received. The State Board of Administration and the
1897 Department of Management Services, as appropriate, are
1898 authorized to cash out a de minimis account of a participant who
1899 has been terminated from Florida Retirement System covered
1900 employment for a minimum of 6 calendar months. A de minimis
1901 account is an account containing employer contributions and
1902 accumulated earnings of not more than $5,000 made under the
1903 provisions of this chapter. Such cash-out must either be a
1904 complete lump-sum liquidation of the account balance, subject to
1905 the provisions of the Internal Revenue Code, or a lump-sum
1906 direct rollover distribution paid directly to the custodian of
1907 an eligible retirement plan, as defined by the Internal Revenue
1908 Code, on behalf of the participant. If any financial instrument
1909 issued for the payment of retirement benefits under this section
1910 is not presented for payment within 180 days after the last day
1911 of the month in which it was originally issued, the third-party
1912 administrator or other duly authorized agent of the State Board
1913 of Administration shall cancel the instrument and credit the
1914 amount of the instrument to the suspense account of the Public
1915 Employee Optional Retirement Program Trust Fund authorized under
1916 s. 121.4501(6). Any such amounts transferred to the suspense
1917 account are payable upon a proper application, not to include
1918 earnings thereon, as provided in this section, within 10 years
1919 after the last day of the month in which the instrument was
1920 originally issued, after which time such amounts and any
1921 earnings thereon shall be forfeited. Any such forfeited amounts
1922 are assets of the Public Employee Optional Retirement Program
1923 Trust Fund and are not subject to the provisions of chapter 717.
1924 (1) NORMAL BENEFITS.—Under the Public Employee Optional
1925 Retirement Program:
1926 (b) If a participant elects to receive his or her benefits
1927 upon termination of employment as defined in s. 121.021(39), the
1928 participant must submit a written application or an equivalent
1929 form to the third-party administrator indicating his or her
1930 preferred distribution date and selecting an authorized method
1931 of distribution as provided in paragraph (c). The participant
1932 may defer receipt of benefits until he or she chooses to make
1933 such application, subject to federal requirements.
1934 Section 10. Subsection (1) of section 238.183, Florida
1935 Statutes, is amended to read:
1936 238.183 Developmental research school and Florida School
1937 for the Deaf and the Blind instructional personnel; reemployment
1938 after retirement.—
1939 (1) Notwithstanding any other law, instructional personnel,
1940 as defined in s. 1012.01(2), employed by a developmental
1941 research school or the Florida School for the Deaf and the Blind
1942 are eligible for reemployment after retirement in the same
1943 manner as classroom teachers who are employed by the district
1944 school boards, as described in ss. 121.091(9)(b) 121.091(9)(b)3.
1945 and 238.181(2)(c).
1946 Section 11. Paragraph (g) of subsection (3) of section
1947 1012.33, Florida Statutes, is amended to read:
1948 1012.33 Contracts with instructional staff, supervisors,
1949 and school principals.—
1950 (3)
1951 (g) Beginning July 1, 2001, for each employee who enters
1952 into a written contract, pursuant to this section, in a school
1953 district in which the employee was not employed as of June 30,
1954 2001, or was employed as of June 30, 2001, but has since broken
1955 employment with that district for 1 school year or more, for
1956 purposes of pay, a district school board must recognize and
1957 accept each year of full-time public school teaching service
1958 earned in this state the State of Florida or outside the state
1959 and for which the employee received a satisfactory performance
1960 evaluation. Instructional personnel employed pursuant to s.
1961 121.091(b) s. 121.091(9)(b)3. are exempt from the provisions of
1962 this paragraph.
1963 Section 12. Sections 121.093 and 121.094, Florida Statutes,
1964 are repealed.
1965 Section 13. The Legislature finds that a proper and
1966 legitimate state purpose is served when employees and retirees
1967 of the state and its political subdivisions, as well as the
1968 dependents, survivors, and beneficiaries of such employees and
1969 retirees, are extended the basic protections afforded by
1970 governmental retirement systems that provide fair and adequate
1971 benefits and that are managed, administered, and funded in an
1972 actuarially sound manner as required by s. 14, Art. X of the
1973 State Constitution and part VII of chapter 112, Florida
1974 Statutes. Therefore, the Legislature determines and declares
1975 that the amendment of s. 121.091, Florida Statutes, by this act
1976 fulfills an important state interest.
1977 Section 14. Effective upon this act becoming a law, the
1978 Department of Management Services shall request an actuarial
1979 special study to determine the employer contribution rates
1980 required by this act. The department shall notify the Governor,
1981 the President of the Senate, and the Speaker of the House of
1982 Representatives of the results of the actuarial special study
1983 within 1 week after receiving the results.
1984 Section 15. Except as otherwise expressly provided in this
1985 act and except for this section, which shall take effect upon
1986 becoming a law, this act shall take effect January 1, 2010;
1987 except that this act shall not take effect if the Department of
1988 Management Services receives an actuarial special study stating
1989 that the provisions of this act require an increase of 0.01
1990 percent or more in the employer contribution rate for any
1991 Florida Retirement System member class, subclass, or the
1992 Deferred Retirement Option Program.