Amendment
Bill No. CS/CS/HB 479

Amendment No. 325469

CHAMBER ACTION
Senate		House
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1	Representative Schenck offered the following:
2
3	Substitute Amendment for Amendment (805709) (with title
4	amendment)
5	Remove everything after the enacting clause and insert:
6	Section 1.  Subsections (10), (11), (18), (29), (39), (52),
7	and (53) of section 121.021, Florida Statutes, are amended, and
8	subsections (63) and (64) are added to that section, to read:
9	121.021  Definitions.--The following words and phrases as
10	used in this chapter have the respective meanings set forth
11	unless a different meaning is plainly required by the context:
12	(10)  "Employer" means any agency, branch, department,
13	institution, university, institution of higher education, or
14	board of the state, or any county agency, branch, department,
15	board, district school board, city, metropolitan planning
16	organization, or special district of the state, or any city of
17	the state which participates in the system for the benefit of
18	certain of its employees, or a charter school or charter
19	technical career center that participates as provided in s.
20	121.051(2)(d). Employers are not agents of the department, the
21	state board, or the Division of Retirement, and the department,
22	the state board, and the division are not responsible for
23	erroneous information provided by representatives of employers.
24	(11)  "Officer or employee" means any person receiving
25	salary payments for work performed in a regularly established
26	position and, if employed by a city, a metropolitan planning
27	organization, or a special district, employed in a covered
28	group. The term does not apply to state employees covered by a
29	leasing agreement under s. 110.191, other public employees
30	covered by a leasing agreement, or a co-employer relationship.
31	(18)  "Past service" of any member, as provided in s.
32	121.081(1), means the number of years and complete months and
33	any fractional part of a month, recognized and credited by an
34	employer and approved by the administrator, during which the
35	member was in the active employ of a governmental an employer
36	and for which the employee is not entitled to a benefit prior to
37	his or her date of participation.
38	(29)  "Normal retirement date" means the first day of any
39	month following the date a member attains normal retirement age
40	and is vested, which is determined as follows one of the
41	following statuses:
42	(a)  If a Regular Class member, a Senior Management Service
43	Class member, or an Elected Officers' Class the member:
44	1.  The first day of the month the member completes 6 or
45	more years of creditable service and attains age 62; or
46	2.  The first day of the month following the date the
47	member completes 30 years of creditable service, regardless of
48	age, which may include a maximum of 4 years of military service
49	credit as long as such credit is not claimed under any other
50	system.
51	(b)  If a Special Risk Class member, the member:
52	1.  The first day of the month the member completes 6 or
53	more years of creditable service in the Special Risk Class and
54	attains age 55;
55	2.  The first day of the month following the date the
56	member completes 25 years of creditable service in the Special
57	Risk Class, regardless of age; or
58	3.  The first day of the month following the date the
59	member completes 25 years of creditable service and attains age
60	52, which service may include a maximum of 4 years of military
61	service credit as long as such credit is not claimed under any
62	other system and the remaining years are in the Special Risk
63	Class.
64	(c)  If a Senior Management Service Class member, the
65	member:
66	1.  Completes 6 years of creditable service in the Senior
67	Management Service Class and attains age 62; or
68	2.  Completes 30 years of any creditable service,
69	regardless of age, which may include a maximum of 4 years of
70	military service credit as long as such credit is not claimed
71	under any other system.
72	(d)  If an Elected Officers' Class member, the member:
73	1.  Completes 6 years of creditable service in the Elected
74	Officers' Class and attains age 62; or
75	2.  Completes 30 years of any creditable service,
76	regardless of age, which may include a maximum of 4 years of
77	military service credit as long as such credit is not claimed
78	under any other system.
79
80	"Normal retirement age" is attained on the "normal retirement
81	date."
82	(39)(a)  "Termination" occurs, except as provided in
83	paragraph (b), when:
84	1.  For retirements effective before January 1, 2010, a
85	member ceases all employment relationships with employers under
86	this system, as defined in subsection (10), but in the event a
87	member should be employed by any such employer within the next
88	calendar month, termination shall be deemed not to have
89	occurred. A leave of absence shall constitute a continuation of
90	the employment relationship, except that a leave of absence
91	without pay due to disability may constitute termination for a
92	member, if such member makes application for and is approved for
93	disability retirement in accordance with s. 121.091(4). The
94	department or state board may require other evidence of
95	termination as it deems necessary.
96	2.  For retirements effective on or after January 1, 2010,
97	a member ceases all employment relationships with employers
98	under this system, as defined in subsection (10), but in the
99	event a member should be employed by any such employer within
100	the next 6 calendar months, termination shall be deemed not to
101	have occurred. A leave of absence shall constitute a
102	continuation of the employment relationship, except that a leave
103	of absence without pay due to disability may constitute
104	termination for a member, if such member makes application for
105	and is approved for disability retirement in accordance with s.
106	121.091(4). The department or state board may require other
107	evidence of termination as it deems necessary.
108	(b)  "Termination" for a member electing to participate
109	under the Deferred Retirement Option Program (DROP) occurs when
110	the Deferred Retirement Option Program participant ceases all
111	employment relationships with employers under this system in
112	accordance with s. 121.091(13), but:
113	1.  For DROP termination dates occurring before January 1,
114	2010, in the event the DROP Deferred Retirement Option Program
115	participant should be employed by any such employer within the
116	next calendar month, termination will be deemed not to have
117	occurred, except as provided in s. 121.091(13)(b)4.c. A leave of
118	absence shall constitute a continuation of the employment
119	relationship.
120	2.  For DROP termination dates occurring on or after
121	January 1, 2010, in the event the DROP participant should be
122	employed by any such employer within the next 6 calendar months,
123	termination will be deemed not to have occurred, except as
124	provided in s. 121.091(13)(b)4.c. A leave of absence shall
125	constitute a continuation of the employment relationship.
126	(52)  "Regularly established position" is defined as
127	follows:
128	(a)  With respect to employment for In a state employer
129	agency, the term means a position that which is authorized and
130	established pursuant to law and is compensated from a salaries
131	and benefits appropriation pursuant to s. 216.011(1)(mm)(dd), or
132	an established position that which is authorized pursuant to s.
133	216.262(1)(a) and (b) and is compensated from a salaries account
134	as provided in s. 216.011(1)(nn) by rule.
135	(b)  With respect to employment for In a local employer
136	agency (district school board, county agency, community college,
137	city, metropolitan planning organization, charter school,
138	charter technical career center, or special district), the term
139	means a regularly established position that which will be in
140	existence for a period beyond 6 consecutive months, except as
141	provided by rule.
142	(53)  "Temporary position" is defined as follows:
143	(a)  With respect to employment for In a state employer
144	agency, the term means a an employment position that which is
145	compensated from an other personal services (OPS) account, as
146	provided for in s. 216.011(1)(dd).
147	(b)  With respect to employment for In a local employer
148	agency, the term means a an employment position that which will
149	exist for less than 6 consecutive months, or other employment
150	position as determined by rule of the division, regardless of
151	whether it will exist for 6 consecutive months or longer.
152	(63)  "State board" means the State Board of
153	Administration.
154	(64)  "Trustees" means the Board of Trustees of the State
155	Board of Administration.
156	Section 2.  Subsection (6) is added to section 121.031,
157	Florida Statutes, to read:
158	121.031  Administration of system; appropriation; oaths;
159	actuarial studies; public records.--
160	(6)  Unless prior written approval is obtained from the
161	department or state board, any promotional materials or
162	advertisements that, directly or indirectly, refer to the
163	"Florida Retirement System" or the "FRS" must contain a
164	disclaimer that the information is not approved or endorsed by
165	the Florida Retirement System.
166	Section 3.  Paragraph (a) of subsection (1) and paragraphs
167	(c) and (f) of subsection (2) of section 121.051, Florida
168	Statutes, are amended to read:
169	121.051  Participation in the system.--
170	(1)  COMPULSORY PARTICIPATION.--
171	(a)  The provisions of this law are shall be compulsory as
172	to all officers and employees, except elected officers who meet
173	the requirements of s. 121.052(3), who are employed on or after
174	December 1, 1970, by of an employer other than those referred to
175	in paragraph (2)(b), and each officer or employee, as a
176	condition of employment, shall become a member of the system as
177	of his or her date of employment, except that a person who is
178	retired from any state retirement system and is reemployed on or
179	after December 1, 1970, may not renew his or her membership in
180	any state retirement system except as provided in s.
181	121.091(4)(h) for a person who recovers from disability, and as
182	provided in s. 121.091(9)(b)4.8. for a person who is elected to
183	public office, and, effective July 1, 1991, as provided in s.
184	121.122 for all other retirees. Officers and employees of the
185	University Athletic Association, Inc., a nonprofit association
186	connected with the University of Florida, employed on and after
187	July 1, 1979, may shall not participate in any state-supported
188	retirement system.
189	1.  Any person appointed on or after July 1, 1989, to a
190	faculty position in a college at the J. Hillis Miller Health
191	Center at the University of Florida or the Medical Center at the
192	University of South Florida which has a faculty practice plan
193	provided by rule adopted by the Board of Regents may not
194	participate in the Florida Retirement System. Effective July 1,
195	2008, any person appointed thereafter to a faculty position,
196	including clinical faculty, in a college at a state university
197	that has a faculty practice plan authorized by the Board of
198	Governors may not participate in the Florida Retirement System.
199	A faculty member so appointed shall participate in the optional
200	retirement program for the State University System
201	notwithstanding the provisions of s. 121.35(2)(a).
202	2.  For purposes of this paragraph, the term "faculty
203	position" is defined as a position assigned the principal
204	responsibility of teaching, research, or public service
205	activities or administrative responsibility directly related to
206	the academic mission of the college. The term "clinical faculty"
207	is defined as a faculty position appointment in conjunction with
208	a professional position in a hospital or other clinical
209	environment at a college. The term "faculty practice plan"
210	includes professional services to patients, institutions, or
211	other parties which are rendered by the clinical faculty
212	employed by a college that has a faculty practice plan at a
213	state university authorized by the Board of Governors.
214	(2)  OPTIONAL PARTICIPATION.--
215	(c)  Employees of public community colleges or charter
216	technical career centers sponsored by public community colleges,
217	as designated in s. 1000.21(3), who are members of the Regular
218	Class of the Florida Retirement System and who comply with the
219	criteria set forth in this paragraph and in s. 1012.875 may
220	elect, in lieu of participating in the Florida Retirement
221	System, to withdraw from the Florida Retirement System
222	altogether and participate in an optional retirement program
223	provided by the employing agency under s. 1012.875, to be known
224	as the State Community College System Optional Retirement
225	Program. Pursuant thereto:
226	1.  Through June 30, 2001, the cost to the employer for
227	such annuity shall equal the normal cost portion of the employer
228	retirement contribution which would be required if the employee
229	were a member of the Regular Class defined benefit program, plus
230	the portion of the contribution rate required by s. 112.363(8)
231	that would otherwise be assigned to the Retiree Health Insurance
232	Subsidy Trust Fund. Effective July 1, 2001, each employer shall
233	contribute on behalf of each participant in the optional program
234	an amount equal to 10.43 percent of the participant's gross
235	monthly compensation. The employer shall deduct an amount to
236	provide for the administration of the optional retirement
237	program. The employer providing the optional program shall
238	contribute an additional amount to the Florida Retirement System
239	Trust Fund equal to the unfunded actuarial accrued liability
240	portion of the Regular Class contribution rate.
241	2.  The decision to participate in such an optional
242	retirement program shall be irrevocable for as long as the
243	employee holds a position eligible for participation, except as
244	provided in subparagraph 3. Any service creditable under the
245	Florida Retirement System shall be retained after the member
246	withdraws from the Florida Retirement System; however,
247	additional service credit in the Florida Retirement System shall
248	not be earned while a member of the optional retirement program.
249	3.  An employee who has elected to participate in the
250	optional retirement program shall have one opportunity, at the
251	employee's discretion, to choose to transfer from the optional
252	retirement program to the defined benefit program of the Florida
253	Retirement System or to the Public Employee Optional Retirement
254	Program, subject to the terms of the applicable optional
255	retirement program contracts.
256	a.  If the employee chooses to move to the Public Employee
257	Optional Retirement Program, any contributions, interest, and
258	earnings creditable to the employee under the State Community
259	College System Optional Retirement Program shall be retained by
260	the employee in the State Community College System Optional
261	Retirement Program, and the applicable provisions of s.
262	121.4501(4) shall govern the election.
263	b.  If the employee chooses to move to the defined benefit
264	program of the Florida Retirement System, the employee shall
265	receive service credit equal to his or her years of service
266	under the State Community College System Optional Retirement
267	Program.
268	(I)  The cost for such credit shall be an amount
269	representing the present value of that employee's accumulated
270	benefit obligation for the affected period of service. The cost
271	shall be calculated as if the benefit commencement occurs on the
272	first date the employee would become eligible for unreduced
273	benefits, using the discount rate and other relevant actuarial
274	assumptions that were used to value the Florida Retirement
275	System defined benefit plan liabilities in the most recent
276	actuarial valuation. The calculation shall include any service
277	already maintained under the defined benefit plan in addition to
278	the years under the State Community College System Optional
279	Retirement Program. The present value of any service already
280	maintained under the defined benefit plan shall be applied as a
281	credit to total cost resulting from the calculation. The
282	division shall ensure that the transfer sum is prepared using a
283	formula and methodology certified by an enrolled actuary.
284	(II)  The employee must transfer from his or her State
285	Community College System Optional Retirement Program account and
286	from other employee moneys as necessary, a sum representing the
287	present value of that employee's accumulated benefit obligation
288	immediately following the time of such movement, determined
289	assuming that attained service equals the sum of service in the
290	defined benefit program and service in the State Community
291	College System Optional Retirement Program.
292	4.  Participation in the optional retirement program shall
293	be limited to those employees who satisfy the following
294	eligibility criteria:
295	a.  The employee must be otherwise eligible for membership
296	or renewed membership in the Regular Class of the Florida
297	Retirement System, as provided in s. 121.021(11) and (12) or s.
298	121.122.
299	b.  The employee must be employed in a full-time position
300	classified in the Accounting Manual for Florida's Public
301	Community Colleges as:
302	(I)  Instructional; or
303	(II)  Executive Management, Instructional Management, or
304	Institutional Management, if a community college determines that
305	recruiting to fill a vacancy in the position is to be conducted
306	in the national or regional market, and:
307	(A)  The duties and responsibilities of the position
308	include either the formulation, interpretation, or
309	implementation of policies; or
310	(B)  The duties and responsibilities of the position
311	include the performance of functions that are unique or
312	specialized within higher education and that frequently involve
313	the support of the mission of the community college.
314	c.  The employee must be employed in a position not
315	included in the Senior Management Service Class of the Florida
316	Retirement System, as described in s. 121.055.
317	5.  A participant who receives a program distribution
318	funded by employer contributions shall be deemed to be retired
319	from a state-administered retirement system in the event of
320	subsequent employment with any employer that participates in the
321	Florida Retirement System. Participants in the program are
322	subject to the same reemployment limitations, renewed membership
323	provisions, and forfeiture provisions as are applicable to
324	regular members of the Florida Retirement System under ss.
325	121.091(9), 121.122, and 121.091(5), respectively.
326	6.  Eligible community college employees shall be
327	compulsory members of the Florida Retirement System until,
328	pursuant to the procedures set forth in s. 1012.875, a written
329	election to withdraw from the Florida Retirement System and to
330	participate in the State Community College System Optional
331	Retirement Program is filed with the program administrator and
332	received by the division.
333	a.  Any community college employee whose program
334	eligibility results from initial employment shall be enrolled in
335	the State Community College System Optional Retirement Program
336	retroactive to the first day of eligible employment. The
337	employer retirement contributions paid through the month of the
338	employee plan change shall be transferred to the community
339	college for the employee's optional program account, and,
340	effective the first day of the next month, the employer shall
341	pay the applicable contributions based upon subparagraph 1.
342	b.  Any community college employee whose program
343	eligibility results from a change in status due to the
344	subsequent designation of the employee's position as one of
345	those specified in subparagraph 4. or due to the employee's
346	appointment, promotion, transfer, or reclassification to a
347	position specified in subparagraph 4. shall be enrolled in the
348	program upon the first day of the first full calendar month that
349	such change in status becomes effective. The employer retirement
350	contributions paid from the effective date through the month of
351	the employee plan change shall be transferred to the community
352	college for the employee's optional program account, and,
353	effective the first day of the next month, the employer shall
354	pay the applicable contributions based upon subparagraph 1.
355	7.  Effective July 1, 2003, through December 31, 2008, any
356	participant of the State Community College System Optional
357	Retirement Program who has service credit in the defined benefit
358	plan of the Florida Retirement System for the period between his
359	or her first eligibility to transfer from the defined benefit
360	plan to the optional retirement program and the actual date of
361	transfer may, during his or her employment, elect to transfer to
362	the optional retirement program a sum representing the present
363	value of the accumulated benefit obligation under the defined
364	benefit retirement program for such period of service credit.
365	Upon such transfer, all such service credit previously earned
366	under the defined benefit program of the Florida Retirement
367	System during this period shall be nullified for purposes of
368	entitlement to a future benefit under the defined benefit
369	program of the Florida Retirement System.
370	(f)1.  If Whenever an employer that participates in the
371	Florida Retirement System undertakes the transfer, merger, or
372	consolidation of governmental services or assumes the functions
373	and activities of an employing governmental entity that was not
374	an employer under the system, the employer must notify the
375	department at least 60 days prior to such action and shall
376	provide documentation as required by the department. The
377	transfer, merger, or consolidation of governmental services or
378	assumption of governmental functions and activities must occur
379	between public employers. The current or former employer may pay
380	the employees' past service cost, unless prohibited under this
381	chapter. This subparagraph does not apply to the transfer,
382	merger, or consolidation of governmental services or assumption
383	of functions and activities of a public entity under a leasing
384	agreement having a co-employer relationship. Employers and
385	employees of a public governmental employer whose service is
386	covered by a leasing agreement under s. 110.191, any other
387	leasing agreement, or a co-employer relationship are not
388	eligible to participate in the Florida Retirement System.
389	2.  If When the agency to which a member's employing unit
390	is transferred, merged, or consolidated does not participate in
391	the Florida Retirement System, a member may shall elect in
392	writing to remain in the Florida Retirement System or to
393	transfer to the local retirement system operated by the such
394	agency. If the such agency does not participate in a local
395	retirement system, the member shall continue membership in the
396	Florida Retirement System. In either case, the membership
397	continues shall continue for as long as the member is employed
398	by the agency to which his or her unit was transferred, merged,
399	or consolidated.
400	Section 4.  Paragraph (f) of subsection (2) and paragraph
401	(e) of subsection (3) of section 121.052, Florida Statutes, are
402	amended to read:
403	121.052  Membership class of elected officers.--
404	(2)  MEMBERSHIP.--The following holders of elective office,
405	hereinafter referred to as "elected officers," whether assuming
406	elective office by election, reelection, or appointment, are
407	members of the Elected Officers' Class, except as provided in
408	subsection (3):
409	(f)1.  Any elected officer of a municipality or special
410	district on or after July 1, 1997, through December 31, 2009, as
411	provided in paragraph (3)(e).
412	2.  Any elected officer of a municipality or special
413	district on or after January 1, 2010, when the governing body of
414	a municipality or special district, at the time it joins the
415	Florida Retirement System for its elected officers, elects by
416	majority vote to designate all its elected positions for
417	inclusion in the Elected Officers' Class.
418	(3)  PARTICIPATION AND WITHDRAWAL, GENERALLY.--Effective
419	July 1, 1990, participation in the Elected Officers' Class shall
420	be compulsory for elected officers listed in paragraphs (2)(a)-
421	(d) and (f) assuming office on or after said date, unless the
422	elected officer elects membership in another class or withdraws
423	from the Florida Retirement System as provided in paragraphs
424	(3)(a)-(d):
425	(e)1.  Effective July 1, 1997, the governing body of a
426	municipality or special district may, by majority vote, elect to
427	designate all its elected positions for inclusion in the Elected
428	Officers' Class. Such election shall be made between July 1,
429	1997, and December 31, 1997, and shall be irrevocable. The
430	designation of such positions shall be effective the first day
431	of the month following receipt by the department of the
432	ordinance or resolution passed by the governing body.
433	2.  Effective July 1, 2001, the governing body of a
434	municipality or special district may, by majority vote, elect to
435	designate all its elected positions for inclusion in the Elected
436	Officers' Class. Such election shall be made between July 1,
437	2001, and December 31, 2001, and shall be irrevocable. The
438	designation of such positions shall be effective the first day
439	of the month following receipt by the department of the
440	ordinance or resolution passed by the governing body.
441	3.  Effective July 1, 2009, the governing body of a
442	municipality or special district may, by majority vote, elect to
443	designate all its elected positions for inclusion in the Elected
444	Officers' Class. Such election shall be made between July 1,
445	2009, and December 31, 2009, and shall be irrevocable. The
446	designation of such positions shall be effective the first day
447	of the month following receipt by the department of the
448	ordinance or resolution passed by the governing body.
449	Section 5.  Subsections (1) and (2) of section 121.053,
450	Florida Statutes, are amended to read:
451	121.053  Participation in the Elected Officers' Class for
452	retired members.--
453	(1)(a)1.  Any retiree of a state-administered retirement
454	system who initially serves in an elective office in a regularly
455	established position with a covered employer on or after January
456	1, 2010, shall not be enrolled in the Florida Retirement System.
457	2.  An elected officer who is elected or appointed to an
458	elective office and is participating in the Deferred Retirement
459	Option Program is subject to termination as provided in s.
460	121.021(39)(b), and reemployment limitations as provided in s.
461	121.091(9), upon completion of his or her DROP participation
462	period.
463	(b)  Before January 1, 2010, any member who retired under
464	any existing system as defined in s. 121.021(2), and receives a
465	benefit thereof, and who serves in an office covered by the
466	Elected Officers' Class for a period of at least 6 years, shall
467	be entitled to receive an additional retirement benefit for such
468	elected officer service prior to July 1, 1990, under the Elected
469	Officers' Class of the Florida Retirement System, as follows:
470	1.  Upon completion of 6 or more years of creditable
471	service in an office covered by the Elected Officers' Class, s.
472	121.052, such member shall notify the administrator of his or
473	her intent to purchase elected officer service prior to July 1,
474	1990, and shall pay the member contribution applicable for the
475	period being claimed, plus 4 percent interest compounded
476	annually from the first year of service claimed until July 1,
477	1975, and 6.5 percent interest compounded annually thereafter,
478	until full payment is made to the Florida Retirement System
479	Trust Fund; however, such member may purchase retirement credit
480	under the Elected Officers' Class only for such service as an
481	elected officer.
482	2.  Upon payment of the amount specified in subparagraph
483	1., the employer shall pay into the Florida Retirement System
484	Trust Fund the applicable employer contribution for the period
485	of elected officer service prior to July 1, 1990, being claimed
486	by the member, plus 4 percent interest compounded annually from
487	the first year of service claimed until July 1, 1975, and 6.5
488	percent interest compounded annually thereafter, until full
489	payment is made to the Florida Retirement System Trust Fund.
490	(c)(b)  Any retired member of the Florida Retirement
491	System, or any existing system as defined in s. 121.021(2), who,
492	on or after July 1, 1990, through December 31, 2009, is serving
493	in, or is elected or appointed to, an elective office covered by
494	the Elected Officers' Class shall be enrolled in the appropriate
495	subclass of the Elected Officers' Class of the Florida
496	Retirement System, and applicable contributions shall be paid
497	into the Florida Retirement System Trust Fund as provided in s.
498	121.052(7). Pursuant thereto:
499	1.  Any such retired member shall be eligible to continue
500	to receive retirement benefits as well as compensation for the
501	elected officer service for as long as he or she remains in an
502	elective office covered by the Elected Officers' Class.
503	2.  If any such member serves in an elective office covered
504	by the Elected Officers' Class and becomes vested under that
505	class, he or she shall be entitled to receive an additional
506	retirement benefit for such elected officer service.
507	3.  Such member shall be entitled to purchase additional
508	retirement credit in the Elected Officers' Class for any
509	postretirement service performed in an elected position eligible
510	for the Elected Officers' Class prior to July 1, 1990, or in the
511	Regular Class for any postretirement service performed in any
512	other regularly established position prior to July 1, 1991, by
513	paying the applicable Elected Officers' Class or Regular Class
514	employee and employer contributions for the period being
515	claimed, plus 4 percent interest compounded annually from the
516	first year of service claimed until July 1, 1975, and 6.5
517	percent interest compounded thereafter, until full payment is
518	made to the Florida Retirement System Trust Fund. The
519	contribution for postretirement Regular Class service between
520	July 1, 1985, and July 1, 1991, for which the reemployed retiree
521	contribution was paid, shall be the difference between such
522	contribution and the total applicable contribution for the
523	period being claimed, plus interest. The employer of such member
524	may pay the applicable employer contribution in lieu of the
525	member. If a member does not wish to claim credit for all of the
526	postretirement service for which he or she is eligible, the
527	service the member claims must be the most recent service.
528	4.  Creditable service for which credit was received, or
529	which remained unclaimed, at retirement may not be claimed or
530	applied toward service credit earned following renewed
531	membership. However, service earned in accordance with the
532	renewed membership provisions in s. 121.122 may be used in
533	conjunction with creditable service earned under this paragraph,
534	provided applicable vesting requirements and other existing
535	statutory conditions required by this chapter are met.
536	5.  An elected officer who is elected or appointed to an
537	elective office and is participating in the Deferred Retirement
538	Option Program before January 1, 2010, is not subject to
539	termination as provided in s. 121.021(39)(b), or reemployment
540	limitations as provided in s. 121.091(9), until the end of his
541	or her current term of office or, if the officer is
542	consecutively elected or reelected to an elective office
543	eligible for coverage under the Florida Retirement System, until
544	he or she no longer holds such an elective office, as follows:
545	a.  At the end of the 60-month DROP period:
546	(I)  The officer's DROP account shall accrue no additional
547	monthly benefits, but shall continue to earn interest as
548	provided in s. 121.091(13). The officer whose DROP participation
549	begins on or after January 1, 2010, shall accrue no additional
550	monthly benefit and the DROP account shall not continue to earn
551	interest as provided in s. 121.091(13) after the end of the 60-
552	month DROP period.
553	(II)  No retirement contributions shall be required of the
554	employer of the elected officer and no additional retirement
555	credit shall be earned under the Florida Retirement System.
556	b.  Nothing herein shall prevent an elected officer from
557	voluntarily terminating his or her elective office at any time
558	and electing to receive his or her DROP proceeds. However, until
559	termination requirements are fulfilled as provided in s.
560	121.021(39), any elected officer whose termination limitations
561	are extended by this section shall be ineligible for renewed
562	membership in the system and shall receive no pension payments,
563	DROP lump sum payments, or any other state payment other than
564	the statutorily determined salary, travel, and per diem for the
565	elective office.
566	c.  Upon termination, the officer shall receive his or her
567	accumulated DROP account, plus interest, and shall accrue and
568	commence receiving monthly retirement benefits, which shall be
569	paid on a prospective basis only.
570
571	However, an officer electing to participate in the Deferred
572	Retirement Option Program on or before June 30, 2002, shall not
573	be required to terminate and shall remain subject to the
574	provisions of this subparagraph as adopted in section 1 of
575	chapter 2001-235, Laws of Florida.
576	(2)  Upon attaining his or her normal retirement date and
577	payment of the amount specified in paragraphs (1)(b) and (c)
578	(1)(a) and (b), and upon application to the administrator of the
579	intent to retire, the member shall receive a monthly benefit
580	under this section, in addition to any benefits already being
581	received, which shall commence on the last day of the month of
582	retirement and be payable on the last day of the month
583	thereafter during his or her lifetime. The amount of such
584	monthly benefit shall be the total percentage of retirement
585	credit purchased under this section multiplied by the member's
586	average monthly compensation as an elected officer, adjusted
587	according to the option selected at retirement under s.
588	121.091(6).
589	Section 6.  Paragraph (f) of subsection (1) and paragraphs
590	(c) and (e) of subsection (6) of section 121.055, Florida
591	Statutes, are amended to read:
592	121.055  Senior Management Service Class.--There is hereby
593	established a separate class of membership within the Florida
594	Retirement System to be known as the "Senior Management Service
595	Class," which shall become effective February 1, 1987.
596	(1)
597	(f)  Effective July 1, 1997:
598	1.  Except as provided in subparagraph 3., any elected
599	state officer eligible for membership in the Elected Officers'
600	Class under s. 121.052(2)(a), (b), or (c) who elects membership
601	in the Senior Management Service Class under s. 121.052(3)(c)
602	may, within 6 months after assuming office or within 6 months
603	after this act becomes a law for serving elected state officers,
604	elect to participate in the Senior Management Service Optional
605	Annuity Program, as provided in subsection (6), in lieu of
606	membership in the Senior Management Service Class.
607	2.  Except as provided in subparagraph 3., any elected
608	county officer of a local agency employer eligible for
609	membership in the Elected Officers' Class under s. 121.052(2)(d)
610	who elects membership in the Senior Management Service Class
611	under s. 121.052(3)(c) may, within 6 months after assuming
612	office, or within 6 months after this act becomes a law for
613	serving elected county officers of a local agency employer,
614	elect to withdraw from the Florida Retirement System participate
615	in a lifetime monthly annuity program, as provided in
616	subparagraph (b)2., in lieu of membership in the Senior
617	Management Service Class.
618	3.  Any retiree of a state-administered retirement system
619	who is initially reemployed on or after January 1, 2010, as an
620	elected official eligible for Elected Officers' Class membership
621	shall not be eligible for renewed membership in the Senior
622	Management Service Optional Annuity Program as provided in
623	subsection (6) or to withdraw from the Florida Retirement System
624	as a renewed member as provided in subparagraph (b)2., as
625	applicable, in lieu of Senior Management Service Class
626	membership.
627	(6)
628	(c)  Participation.--
629	1.  Any eligible employee who is employed on or before
630	February 1, 1987, may elect to participate in the optional
631	annuity program in lieu of participation in the Senior
632	Management Service Class. Such election shall be made in writing
633	and filed with the department and the personnel officer of the
634	employer on or before May 1, 1987. Any eligible employee who is
635	employed on or before February 1, 1987, and who fails to make an
636	election to participate in the optional annuity program by May
637	1, 1987, shall be deemed to have elected membership in the
638	Senior Management Service Class.
639	2.  Except as provided in subparagraph 6., any employee who
640	becomes eligible to participate in the optional annuity program
641	by reason of initial employment commencing after February 1,
642	1987, may, within 90 days after the date of commencement of
643	employment, elect to participate in the optional annuity
644	program. Such election shall be made in writing and filed with
645	the personnel officer of the employer. Any eligible employee who
646	does not within 90 days after commencement of such employment
647	elect to participate in the optional annuity program shall be
648	deemed to have elected membership in the Senior Management
649	Service Class.
650	3.  A person who is appointed to a position in the Senior
651	Management Service Class and who is a member of an existing
652	retirement system or the Special Risk or Special Risk
653	Administrative Support Classes of the Florida Retirement System
654	may elect to remain in such system or class in lieu of
655	participation in the Senior Management Service Class or optional
656	annuity program. Such election shall be made in writing and
657	filed with the department and the personnel officer of the
658	employer within 90 days of such appointment. Any eligible
659	employee who fails to make an election to participate in the
660	existing system, the Special Risk Class of the Florida
661	Retirement System, the Special Risk Administrative Support Class
662	of the Florida Retirement System, or the optional annuity
663	program shall be deemed to have elected membership in the Senior
664	Management Service Class.
665	4.  Except as provided in subparagraph 5., an employee's
666	election to participate in the optional annuity program is
667	irrevocable as long as such employee continues to be employed in
668	an eligible position and continues to meet the eligibility
669	requirements set forth in this paragraph.
670	5.  Effective from July 1, 2002, through September 30,
671	2002, any active employee in a regularly established position
672	who has elected to participate in the Senior Management Service
673	Optional Annuity Program has one opportunity to choose to move
674	from the Senior Management Service Optional Annuity Program to
675	the Florida Retirement System defined benefit program.
676	a.  The election must be made in writing and must be filed
677	with the department and the personnel officer of the employer
678	before October 1, 2002, or, in the case of an active employee
679	who is on a leave of absence on July 1, 2002, within 90 days
680	after the conclusion of the leave of absence. This election is
681	irrevocable.
682	b.  The employee will receive service credit under the
683	defined benefit program of the Florida Retirement System equal
684	to his or her years of service under the Senior Management
685	Service Optional Annuity Program. The cost for such credit shall
686	be an amount representing the present value of that employee's
687	accumulated benefit obligation for the affected period of
688	service.
689	c.  The employee must transfer the total accumulated
690	employer contributions and earnings on deposit in his or her
691	Senior Management Service Optional Annuity Program account. If
692	the transferred amount is not sufficient to pay the amount due,
693	the employee must pay a sum representing the remainder of the
694	amount due. In no case may the employee retain any employer
695	contributions or earnings thereon from the Senior Management
696	Service Optional Annuity Program account.
697	6.  Any retiree of a state-administered retirement system
698	who is initially reemployed on or after January 1, 2010, shall
699	not be eligible for renewed membership in the Senior Management
700	Service Optional Annuity Program.
701	(e)  Benefits.--
702	1.  Benefits shall be payable under the Senior Management
703	Service Optional Annuity Program only to participants in the
704	program, or their beneficiaries as designated by the participant
705	in the contract with a provider company, and such benefits shall
706	be paid by the designated company in accordance with the terms
707	of the annuity contract or contracts applicable to the
708	participant. A participant must be terminated from all
709	employment with all Florida Retirement System employers as
710	provided in s. 121.021(39) to begin receiving the employer-
711	funded benefit. Benefits funded by employer contributions shall
712	be payable under the terms of the contract only as a lifetime
713	annuity to the participant, his or her beneficiary, or his or
714	her estate, in addition to except for:
715	a.  A lump-sum payment to the beneficiary upon the death of
716	the participant;
717	b.  A cash-out of a de minimis account upon the request of
718	a former participant who has been terminated for a minimum of 6
719	months from the employment that entitled him or her to optional
720	annuity program participation. A de minimis account is an
721	account with a provider company containing employer
722	contributions and accumulated earnings of not more than $5,000
723	made under the provisions of this chapter. Such cash-out must be
724	a complete liquidation of the account balance with that company
725	and is subject to the provisions of the Internal Revenue Code;
726	c.  A mandatory distribution of a de minimis account of a
727	former participant who has been terminated for a minimum of 6
728	months from the employment that entitled him or her to optional
729	annuity program participation as authorized by the department;
730	or
731	d.c.  A lump-sum direct rollover distribution whereby all
732	accrued benefits, plus interest and investment earnings, are
733	paid from the participant's account directly to the custodian of
734	an eligible retirement plan, as defined in s. 402(c)(8)(B) of
735	the Internal Revenue Code, on behalf of the participant.
736
737	As used in this subparagraph, a "de minimis account" means an
738	account with a provider company containing employer
739	contributions and accumulated earnings of not more than $5,000
740	made under this chapter.
741	2.  The benefits payable to any person under the Senior
742	Management Service Optional Annuity Program, and any
743	contribution accumulated under such program, shall not be
744	subject to assignment, execution, or attachment or to any legal
745	process whatsoever.
746	3.  Except as provided in subparagraph 4., a participant
747	who terminates employment and receives optional annuity program
748	benefits funded by employer contributions shall be deemed to be
749	retired from a state-administered retirement system in the event
750	of subsequent employment with any employer that participates in
751	the Florida Retirement System.
752	4.  A participant who receives optional annuity program
753	benefits funded by employer contributions as a mandatory
754	distribution of a de minimis account authorized by the
755	department will not be considered a retiree.
756	Section 7.  Paragraph (a) of subsection (6) of section
757	121.071, Florida Statutes, is amended to read:
758	121.071  Contributions.--Contributions to the system shall
759	be made as follows:
760	(6)(a)  Required employee contributions for all service
761	other than current service, including, but not limited to, prior
762	service, past service, military service, leave-of-absence
763	service, out-of-state service, and certain non-Florida
764	Retirement System in-state service, shall be paid by cash,
765	personal check, cashier's check, or money order, or a direct
766	rollover or transfer from a qualified plan as provided under the
767	Internal Revenue Code. The payment must only; shall be
768	accompanied by a statement identifying the service for which
769	payment is made; and shall be made in a lump sum for the total
770	amount due or in annual payments of not less than $100, except
771	for the final payment if less than $100, unless another method
772	of payment is authorized by law or rule.
773	Section 8.  Paragraphs (a), (b), (e), (f), and (h) of
774	subsection (1) of section 121.081, Florida Statutes, are amended
775	to read:
776	121.081  Past service; prior service;
777	contributions.--Conditions under which past service or prior
778	service may be claimed and credited are:
779	(1)(a)  Past service, as defined in s. 121.021(18), may be
780	claimed as creditable service by officers or employees of a
781	city, metropolitan planning organization, charter school,
782	charter technical career center, or special district who that
783	become a covered group under this system. The governing body of
784	a covered group in compliance with s. 121.051(2)(b) may elect to
785	provide benefits with respect to past service earned prior to
786	January 1, 1975, in accordance with this chapter, and the cost
787	for such past service shall be established by applying the
788	following formula: The member contribution for both regular and
789	special risk members shall be 4 percent of the gross annual
790	salary for each year of past service claimed, plus 4-percent
791	employer matching contribution, plus 4-percent interest thereon
792	compounded annually, figured on each year of past service, with
793	interest compounded from date of annual salary earned until July
794	1, 1975, and 6.5-percent interest compounded annually thereafter
795	until date of payment. Once the total cost for a member has been
796	figured to date, then after July 1, 1975, 6.5-percent compounded
797	interest shall be added each June 30 thereafter on any unpaid
798	balance until the cost of such past service liability is paid in
799	full. The following formula shall be used in calculating past
800	service earned prior to January 1, 1975: (Annual gross salary
801	multiplied by 8 percent) multiplied by the 4-percent or 6.5-
802	percent compound interest table factor, as may be applicable.
803	The resulting product equals cost to date for each particular
804	year of past service.
805	(b)  Past service earned after January 1, 1975, may be
806	claimed by officers or employees of a city, metropolitan
807	planning organization, charter school, charter technical career
808	center, or special district who become that becomes a covered
809	group under this system. The governing body of a covered group
810	may elect to provide benefits with respect to past service
811	earned after January 1, 1975, in accordance with this chapter,
812	and the cost for such past service shall be established by
813	applying the following formula: The employer shall contribute an
814	amount equal to the contribution rate in effect at the time the
815	service was earned, multiplied by the employee's gross salary
816	for each year of past service claimed, plus 6.5-percent interest
817	thereon, compounded annually, figured on each year of past
818	service, with interest compounded from date of annual salary
819	earned until date of payment.
820	(e)  Past service, as defined in s. 121.021(18), may be
821	claimed as creditable service by a member of the Florida
822	Retirement System who formerly was an officer or employee of a
823	city, metropolitan planning organization, charter school,
824	charter technical career center, or special district,
825	notwithstanding the status or form of the retirement system, if
826	any, of that city, metropolitan planning organization, charter
827	school, charter technical career center, or special district and
828	irrespective of whether officers or employees of that city,
829	metropolitan planning organization, charter school, charter
830	technical career center, or special district now or hereafter
831	become a covered group under the Florida Retirement System. Such
832	member may claim creditable service and be entitled to the
833	benefits accruing to the regular class of members as provided
834	for the past service claimed under this paragraph by paying into
835	the retirement trust fund an amount equal to the total actuarial
836	cost of providing the additional benefit resulting from such
837	past-service credit, discounted by the applicable actuarial
838	factors to date of retirement.
839	(f)  If When any person, either prior to this act or
840	hereafter, becomes entitled to and participates does participate
841	in one of the retirement systems under consolidated within or
842	created by this chapter through the consolidation or merger of
843	governments or the transfer of functions between units of
844	government, either at the state or local level or between state
845	and local units, or through the assumption of functions or
846	activities by a state or local unit from an employing
847	governmental entity that which was not an employer under the
848	system, and such person becomes a member of the Florida
849	Retirement System, such person is shall be entitled to receive
850	past-service credit as defined in s. 121.021(18) for the time
851	the such person performed services for, and was an employee of,
852	such state or local unit or other governmental employing entity
853	prior to the transfer, merger, consolidation, or assumption of
854	functions and activities. Past-service credit allowed by this
855	paragraph is shall also be available to any person who becomes a
856	member of an existing system, as defined in s. 121.021(2), prior
857	to December 1, 1970, through the transfer, merger,
858	consolidation, or assumption of functions and activities set
859	forth in this paragraph and who subsequently becomes a member of
860	the Florida Retirement System. However, credit for the past
861	service may not be granted until contributions are made in the
862	manner provided in this subsection. If a person rejected Florida
863	Retirement System membership at the time of the transfer,
864	merger, or consolidation, or assumption of governmental
865	functions and activities, the required contributions shall be at
866	total actuarial cost as specified in paragraph (e). Such
867	contributions or accrued interest may not be paid from any
868	public state funds.
869	(h)  The following provisions apply to the purchase of past
870	service:
871	1.  Notwithstanding any of the provisions of this
872	subsection, past-service credit may not be purchased under this
873	chapter for any service that is used to obtain a pension or
874	benefit from a any local retirement system. Eligibility to
875	receive or the receipt of contributions to a retirement plan
876	made by the employer on behalf of the employee is considered a
877	benefit.
878	2.  A member may not receive past service credit under
879	paragraphs (a), (b), (e), or (f) for any leaves of absence
880	without pay, except that credit for active military service
881	leaves of absence may be claimed under paragraphs (a), (b), and
882	(f), in accordance with s. 121.111(1).
883	3.  A member may not receive past service credit for co-
884	employer service. Co-employer service or a co-employer
885	relationship is employment in a single position simultaneously
886	covered and reported by both a public employer and a private
887	employer.
888	4.3.  If a member does not want desire to receive credit
889	for all of his or her past service, the period the member claims
890	must be the most recent past service prior to his or her
891	participation in the Florida Retirement System.
892	5.4.  The cost of past service purchased by an employing
893	agency for its employees may be amortized over the such period
894	of time as is provided in the agreement, but not to exceed 15
895	years, calculated in accordance with rule 60S-1.007(5)(f),
896	Florida Administrative Code.
897	6.5.  The retirement account of each member for whom past
898	service is being provided by his or her employer shall be
899	credited with all past service the employer agrees to purchase
900	as soon as the agreement between the employer and the department
901	is executed. Pursuant thereto:
902	a.  Each such member's account shall also be posted with
903	the total contribution his or her employer agrees to make on in
904	the member's behalf for past service earned prior to October 1,
905	1975, excluding those contributions representing the employer's
906	matching share and the compound interest calculation on the
907	total contribution. However, a portion of any contributions paid
908	by an employer for past service credit earned on and after
909	October 1, 1975, may not be posted to the a member's account.
910	b.  A refund of contributions payable after an employer has
911	made a written agreement to purchase past service for employees
912	of the covered group includes shall include contributions for
913	past service which are posted to the a member's account.
914	However, contributions for past service earned on and after
915	October 1, 1975, are not refundable.
916	Section 9.  Paragraphs (b) and (c) of subsection (9) and
917	subsections (13) and (14) of section 121.091, Florida Statutes,
918	are amended to read:
919	121.091  Benefits payable under the system.--Benefits may
920	not be paid under this section unless the member has terminated
921	employment as provided in s. 121.021(39)(a) or begun
922	participation in the Deferred Retirement Option Program as
923	provided in subsection (13), and a proper application has been
924	filed in the manner prescribed by the department. The department
925	may cancel an application for retirement benefits when the
926	member or beneficiary fails to timely provide the information
927	and documents required by this chapter and the department's
928	rules. The department shall adopt rules establishing procedures
929	for application for retirement benefits and for the cancellation
930	of such application when the required information or documents
931	are not received.
932	(9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
933	(b)1.  Any person who is retired under this chapter, except
934	under the disability retirement provisions of subsection (4),
935	may be reemployed by any private or public employer after
936	retirement and receive retirement benefits and compensation from
937	the his or her employer without limitation any limitations,
938	except that the a person may not receive both a salary from
939	reemployment with any agency participating in the Florida
940	Retirement System and retirement benefits under this chapter for
941	6 calendar a period of 12 months immediately after meeting
942	subsequent to the definition of termination in s. 121.021(39)
943	date of retirement. However, a DROP participant may shall
944	continue employment and receive a salary during the period of
945	participation in DROP the Deferred Retirement Option Program, as
946	provided in subsection (13).
947	2.a.  Any person to whom the limitation in subparagraph 1.
948	applies who violates such reemployment limitation and who is
949	initially reemployed on or after January 1, 2010, with any
950	agency participating in the Florida Retirement System after he
951	or she has been retired and met the definition of termination in
952	s. 121.021(39) but before completion of the 6-month 12-month
953	limitation period must shall give timely notice of this fact in
954	writing to the employer and to the Division of Retirement and
955	shall have his or her retirement benefits suspended while
956	employed during for the balance of the 6-month 12-month
957	limitation period. Any person employed in violation of this sub-
958	subparagraph paragraph and any employing agency that which
959	knowingly employs or appoints such person without notifying the
960	division of Retirement to suspend retirement benefits are shall
961	be jointly and severally liable for reimbursement to the
962	retirement trust fund of any benefits paid during the
963	reemployment limitation period. To avoid liability, the such
964	employing agency must shall have a written statement from the
965	retiree that he or she is not retired from a state-administered
966	retirement system. Any retirement benefits received by a retired
967	member while reemployed during this reemployment limitation
968	period must shall be repaid to the Florida Retirement System
969	Trust Fund, and retirement benefits shall remain suspended until
970	such repayment is has been made. Benefits suspended beyond the
971	reemployment limitation shall apply toward repayment of benefits
972	received in violation of the reemployment limitation.
973	b.  Any person to whom the limitation in subparagraph 1.
974	applies who is initially reemployed prior to December 31, 2009,
975	with any agency participating in the Florida Retirement System
976	after he or she has been retired and met the definition of
977	termination in s. 121.021(39) but before completion of the 12-
978	month limitation period must give timely notice of this fact in
979	writing to the employer and to the Division of Retirement and
980	shall have his or her retirement benefits suspended while
981	employed during the balance of the 12-month limitation period
982	unless the person exceeds the 780-hour limitation in
983	subparagraph 4. or subparagraph 5. Any person employed in
984	violation of this sub-subparagraph and any employing agency that
985	employs or appoints such person without notifying the division
986	to suspend retirement benefits are jointly and severally liable
987	for any benefits paid during the reemployment limitation period.
988	To avoid liability, the employing agency must 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 by a retired member while reemployed during this
992	reemployment limitation period must be repaid to the Florida
993	Retirement System Trust Fund, and retirement benefits shall
994	remain suspended until repayment is made. Benefits suspended
995	beyond the reemployment limitation shall apply toward repayment
996	of benefits received in violation of the reemployment
997	limitation.
998	(I)3.  A district school board may reemploy a retired
999	member as a substitute or hourly teacher, education
1000	paraprofessional as defined in s. 1012.01(2)(e), transportation
1001	assistant, bus driver, or food service worker on a
1002	noncontractual basis after he or she has been retired and met
1003	the definition of termination for 1 calendar month, in
1004	accordance with s. 121.021(39). A district school board may
1005	reemploy a retired member as instructional personnel, as defined
1006	in s. 1012.01(2)(a), on an annual contractual basis after he or
1007	she has met the definition of termination been retired for 1
1008	calendar month, in accordance with s. 121.021(39). Any other
1009	retired member who is reemployed before meeting the definition
1010	of termination voids within 1 calendar month after retirement
1011	shall void his or her application for retirement benefits. A
1012	district school board that reemploys boards reemploying such
1013	teachers, education paraprofessionals, transportation
1014	assistants, bus drivers, or food service workers is are subject
1015	to the retirement contribution required by subparagraph 3. 7.
1016	(II)4.  A community college board of trustees may reemploy
1017	a retired member as an adjunct instructor, that is, an
1018	instructor who is noncontractual and part-time, or as a
1019	participant in a phased retirement program within the Florida
1020	Community College System, after he or she has been retired and
1021	met the definition of termination for 1 calendar month, in
1022	accordance with s. 121.021(39). Any retired member who is
1023	reemployed within 1 calendar month after retirement voids shall
1024	void his or her application for retirement benefits. A board
1025	Boards of trustees that reemploys reemploying such instructors
1026	is are subject to the retirement contribution required in
1027	subparagraph 3. 7. A retired member may be reemployed as an
1028	adjunct instructor for no more than 780 hours during the first
1029	12 calendar months after meeting the definition of termination
1030	retirement. Any retired member reemployed for more than 780
1031	hours during the first 12 months of retirement must shall give
1032	timely notice in writing to the employer and to the Division of
1033	Retirement of the date he or she will exceed the limitation. The
1034	division shall suspend his or her retirement benefits for the
1035	remainder of the 12-month limitation period first 12 months of
1036	retirement. Any person employed in violation of this sub-sub-
1037	subparagraph subparagraph and any employing agency that which
1038	knowingly employs or appoints such person without notifying the
1039	division of Retirement to suspend retirement benefits are shall
1040	be jointly and severally liable for reimbursement to the
1041	retirement trust fund of any benefits paid during the
1042	reemployment limitation period. To avoid liability, the such
1043	employing agency must shall have a written statement from the
1044	retiree that he or she is not retired from a state-administered
1045	retirement system. Any retirement benefits received by a retired
1046	member while reemployed in excess of 780 hours during the 12-
1047	month limitation period must first 12 months of retirement shall
1048	be repaid to the Florida Retirement System Trust Fund, and
1049	retirement benefits shall remain suspended until repayment is
1050	made. Benefits suspended beyond the end of the 12-month
1051	limitation period retired member's first 12 months of retirement
1052	shall apply toward repayment of benefits received in violation
1053	of the 780-hour reemployment limitation.
1054	(III)5.  The State University System may reemploy a retired
1055	member as an adjunct faculty member or as a participant in a
1056	phased retirement program within the State University System
1057	after the retired member has met the definition of termination
1058	been retired for 1 calendar month, in accordance with s.
1059	121.021(39). Any retired member who is reemployed before meeting
1060	the definition of termination voids within 1 calendar month
1061	after retirement shall void his or her application for
1062	retirement benefits. The State University System is subject to
1063	the retired contribution required in subparagraph 3. 7., as
1064	appropriate. A retired member may be reemployed as an adjunct
1065	faculty member or a participant in a phased retirement program
1066	for no more than 780 hours during the first 12 calendar months
1067	after meeting the definition of termination of his or her
1068	retirement. Any retired member reemployed for more than 780
1069	hours during the 12-month limitation period must first 12 months
1070	of retirement shall give timely notice in writing to the
1071	employer and to the Division of Retirement of the date he or she
1072	will exceed the limitation. The division shall suspend his or
1073	her retirement benefits for the remainder of the 12-month
1074	limitation period first 12 months of retirement. Any person
1075	employed in violation of this sub-sub-subparagraph subparagraph
1076	and any employing agency that which knowingly employs or
1077	appoints such person without notifying the division of
1078	Retirement to suspend retirement benefits are shall be jointly
1079	and severally liable for reimbursement to the retirement trust
1080	fund of any benefits paid during the reemployment limitation
1081	period. To avoid liability, such employing agency must shall
1082	have a written statement from the retiree that he or she is not
1083	retired from a state-administered retirement system. Any
1084	retirement benefits received by a retired member while
1085	reemployed in excess of 780 hours during the first 12 months of
1086	retirement must shall be repaid to the Florida Retirement System
1087	Trust Fund, and retirement benefits shall remain suspended until
1088	repayment is made. Benefits suspended beyond the end of the
1089	retired member's 12-month limitation period first 12 months of
1090	retirement shall apply toward repayment of benefits received in
1091	violation of the 780-hour reemployment limitation.
1092	(IV)6.  The Board of Trustees of the Florida School for the
1093	Deaf and the Blind may reemploy a retired member as a substitute
1094	teacher, substitute residential instructor, or substitute nurse
1095	on a noncontractual basis after he or she has met the definition
1096	of termination been retired for 1 calendar month, in accordance
1097	with s. 121.021(39). The Board of Trustees of the Florida School
1098	for the Deaf and the Blind may reemploy a retired member as
1099	instructional personnel, as defined in s. 1012.01(2)(a), on an
1100	annual contractual basis after he or she has been retired and
1101	met the definition of termination in s. 121.021(39). Any retired
1102	member who is reemployed before meeting the definition of
1103	termination voids within 1 calendar month after retirement shall
1104	void his or her application for retirement benefits. The Board
1105	of Trustees of the Florida School for the Deaf and the Blind
1106	reemploying such teachers, residential instructors, or nurses is
1107	subject to the retirement contribution required by subparagraph
1108	3. 7. Reemployment of a retired member as a substitute teacher,
1109	substitute residential instructor, or substitute nurse is
1110	limited to 780 hours during the first 12 months of his or her
1111	retirement. Any retired member reemployed for more than 780
1112	hours during the first 12 months of retirement shall give timely
1113	notice in writing to the employer and to the division of the
1114	date he or she will exceed the limitation. The division shall
1115	suspend his or her retirement benefits for the remainder of the
1116	first 12 months of retirement. Any person employed in violation
1117	of this subparagraph and any employing agency which knowingly
1118	employs or appoints such person without notifying the Division
1119	of Retirement to suspend retirement benefits shall be jointly
1120	and severally liable for reimbursement to the retirement trust
1121	fund of any benefits paid during the reemployment limitation
1122	period. To avoid liability, such employing agency shall have a
1123	written statement from the retiree that he or she is not retired
1124	from a state-administered retirement system. Any retirement
1125	benefits received by a retired member while reemployed in excess
1126	of 780 hours during the first 12 months of retirement shall be
1127	repaid to the Retirement System Trust Fund, and his or her
1128	retirement benefits shall remain suspended until payment is
1129	made. Benefits suspended beyond the end of the retired member's
1130	first 12 months of retirement shall apply toward repayment of
1131	benefits received in violation of the 780-hour reemployment
1132	limitation.
1133	(V)  A developmental research school may reemploy a retired
1134	member as a substitute or hourly teacher or an education
1135	paraprofessional, as defined in s. 1012.01(2)(e), on a
1136	noncontractual basis after he or she has been retired and met
1137	the definition of termination in s. 121.021(39). A developmental
1138	research school may reemploy a retired member as instructional
1139	personnel, as defined in s. 1012.01(2)(a), on an annual
1140	contractual basis after he or she has been retired and met the
1141	definition of termination in s. 121.021(39). Any other retired
1142	member who is reemployed within 12 calendar months after
1143	retirement voids his or her application for retirement benefits.
1144	A developmental research school that reemploys retired teachers
1145	and education paraprofessionals is subject to the retirement
1146	contribution required by subparagraph 3.
1147	(VI)  A charter school may reemploy a retired member as a
1148	substitute or hourly teacher on a noncontractual basis after he
1149	or she has been retired and met the definition of termination in
1150	s. 121.021(39). A charter school may reemploy a retired member
1151	as instructional personnel, as defined in s. 1012.01(2)(a), on
1152	an annual contractual basis after he or she has been retired and
1153	met the definition of termination in s. 121.021(39). Any other
1154	retired member who is reemployed within 12 calendar months after
1155	retirement voids his or her application for retirement benefits.
1156	A charter school that reemploys such members is subject to the
1157	retirement contribution required by subparagraph 3.
1158	3.a.7.  The employment by an employer of a any retiree or
1159	DROP participant of a any state-administered retirement system
1160	does not affect shall have no effect on the average final
1161	compensation or years of creditable service of the retiree or
1162	DROP participant.
1163	b.  Prior to July 1, 1991, upon employment of any person,
1164	other than an elected officer as provided in s. 121.053, who is
1165	has been retired under a any state-administered retirement
1166	program, the employer shall pay retirement contributions in an
1167	amount equal to the unfunded actuarial liability portion of the
1168	employer contribution which would be required for regular
1169	members of the Florida Retirement System. Effective July 1,
1170	1991, contributions shall be made as provided in s. 121.122 for
1171	retirees who have with renewed membership or as provided in
1172	subsection (13) for with respect to DROP participants.
1173	c.  Any person who is retired under a state-administered
1174	retirement program and who is initially reemployed on or after
1175	January 1, 2010, may not renew membership in the Florida
1176	Retirement System. The employer shall pay retirement
1177	contributions in an amount equal to the unfunded actuarial
1178	liability portion of the employer contribution that would be
1179	required for active members of the Florida Retirement System in
1180	addition to the contributions required by s. 121.76.
1181	4.a.8.  Any person who has previously retired and who is
1182	holding an elective public office or an appointment to an
1183	elective public office eligible for the Elected Officers' Class
1184	on or after July 1, 1990, through December 31, 2009, shall be
1185	enrolled in the Florida Retirement System as provided in s.
1186	121.053(1)(c)(b) or, if holding an elective public office that
1187	does not qualify for the Elected Officers' Class on or after
1188	July 1, 1991, through December 31, 2009, shall be enrolled in
1189	the Florida Retirement System as provided in s. 121.122, and
1190	shall continue to receive retirement benefits as well as
1191	compensation for the elected officer's service for as long as he
1192	or she remains in elective office. However, any retired member
1193	who served in an elective office prior to July 1, 1990,
1194	suspended his or her retirement benefit, and had his or her
1195	Florida Retirement System membership reinstated shall, upon
1196	retirement from such office, have his or her retirement benefit
1197	recalculated to include the additional service and compensation
1198	earned.
1199	b.  Any person who has retired and who is holding an
1200	elective public office or an appointment to an elective public
1201	office initially eligible for the Elected Officers' Class on or
1202	after January 1, 2010, shall not be enrolled in the Florida
1203	Retirement System as provided in s. 121.053(1)(c) or, if holding
1204	an elective public office that does not qualify for the Elected
1205	Officers' Class and is initially eligible on or after January 1,
1206	2010, shall not be enrolled in the Florida Retirement System as
1207	provided in s. 121.122, and shall not continue to receive
1208	retirement benefits during the first 6 calendar months after
1209	meeting the definition of termination in s. 121.021(39).
1210	5.9.  Any person who is holding an elective public office
1211	which is covered by the Florida Retirement System and who is
1212	concurrently employed in nonelected covered employment may elect
1213	to retire while continuing employment in the elective public
1214	office if, provided that he or she terminates shall be required
1215	to terminate his or her nonelected covered employment. Any
1216	person who exercises this election shall receive his or her
1217	retirement benefits in addition to the compensation of the
1218	elective office without regard to the time limitations otherwise
1219	provided in this subsection. A No person who seeks to exercise
1220	the provisions of this subparagraph, as they the same existed
1221	prior to May 3, 1984, may not shall be deemed to be retired
1222	under those provisions, unless such person is eligible to retire
1223	under the provisions of this subparagraph, as amended by chapter
1224	84-11, Laws of Florida.
1225	6.  The limitations of this paragraph apply to reemployment
1226	in any capacity with an employer irrespective of the category of
1227	funds from which the person is compensated.
1228	7.  The provisions of this paragraph regarding reemployment
1229	after retirement apply to DROP participants effective upon
1230	termination from employment and the end of DROP participation.
1231	10.  The limitations of this paragraph apply to
1232	reemployment in any capacity with an "employer" as defined in s.
1233	121.021(10), irrespective of the category of funds from which
1234	the person is compensated.
1235	11.  An employing agency may reemploy a retired member as a
1236	firefighter or paramedic after the retired member has been
1237	retired for 1 calendar month, in accordance with s. 121.021(39).
1238	Any retired member who is reemployed within 1 calendar month
1239	after retirement shall void his or her application for
1240	retirement benefits. The employing agency reemploying such
1241	firefighter or paramedic is subject to the retired contribution
1242	required in subparagraph 8. Reemployment of a retired
1243	firefighter or paramedic is limited to no more than 780 hours
1244	during the first 12 months of his or her retirement. Any retired
1245	member reemployed for more than 780 hours during the first 12
1246	months of retirement shall give timely notice in writing to the
1247	employer and to the division of the date he or she will exceed
1248	the limitation. The division shall suspend his or her retirement
1249	benefits for the remainder of the first 12 months of retirement.
1250	Any person employed in violation of this subparagraph and any
1251	employing agency which knowingly employs or appoints such person
1252	without notifying the Division of Retirement to suspend
1253	retirement benefits shall be jointly and severally liable for
1254	reimbursement to the Retirement System Trust Fund of any
1255	benefits paid during the reemployment limitation period. To
1256	avoid liability, such employing agency shall have a written
1257	statement from the retiree that he or she is not retired from a
1258	state-administered retirement system. Any retirement benefits
1259	received by a retired member while reemployed in excess of 780
1260	hours during the first 12 months of retirement shall be repaid
1261	to the Retirement System Trust Fund, and retirement benefits
1262	shall remain suspended until repayment is made. Benefits
1263	suspended beyond the end of the retired member's first 12 months
1264	of retirement shall apply toward repayment of benefits received
1265	in violation of the 780-hour reemployment limitation.
1266	(c)  The provisions of this subsection apply to retirees,
1267	as defined in s. 121.4501(2)(j), of the Public Employee Optional
1268	Retirement Program created in part II, subject to the following
1269	conditions:
1270	1.  Such retirees may not be reemployed with an employer
1271	participating in the Florida Retirement System as provided in
1272	paragraph (b) until such person has been retired for 12 3
1273	calendar months, unless the participant has reached the normal
1274	retirement requirements of the defined benefit plan as provided
1275	in s. 121.021(29).
1276	2.  Such retiree employed in violation of this subsection
1277	and any employing agency that knowingly employs or appoints such
1278	person shall be jointly and severally liable for reimbursement
1279	of any benefits paid to the retirement trust fund from which the
1280	benefits were paid, including the Retirement System Trust Fund
1281	and the Public Employee Optional Retirement Program Trust Fund,
1282	as appropriate. To avoid liability, such employing agency must
1283	have a written statement from the retiree that he or she is not
1284	retired from a state-administered retirement system.
1285	(13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
1286	subject to the provisions of this section, the Deferred
1287	Retirement Option Program, hereinafter referred to as the DROP,
1288	is a program under which an eligible member of the Florida
1289	Retirement System may elect to participate, deferring receipt of
1290	retirement benefits while continuing employment with his or her
1291	Florida Retirement System employer. The deferred monthly
1292	benefits shall accrue in the Florida Retirement System Trust
1293	Fund on behalf of the participant, plus interest compounded
1294	monthly, for the specified period of the DROP participation, as
1295	provided in paragraph (c). Upon termination of employment, the
1296	participant shall receive the total DROP benefits and begin to
1297	receive the previously determined normal retirement benefits.
1298	Participation in the DROP does not guarantee employment for the
1299	specified period of DROP. Participation in the DROP by an
1300	eligible member beyond the initial 60-month period as authorized
1301	in this subsection shall be on an annual contractual basis for
1302	all participants.
1303	(a)  Eligibility of member to participate in the DROP.--All
1304	active Florida Retirement System members in a regularly
1305	established position, and all active members of either the
1306	Teachers' Retirement System established in chapter 238 or the
1307	State and County Officers' and Employees' Retirement System
1308	established in chapter 122, which systems are consolidated
1309	within the Florida Retirement System under s. 121.011, are
1310	eligible to elect participation in the DROP if provided that:
1311	1.  The member is not a renewed member of the Florida
1312	Retirement System under s. 121.122, or a member of the State
1313	Community College System Optional Retirement Program under s.
1314	121.051, the Senior Management Service Optional Annuity Program
1315	under s. 121.055, or the optional retirement program for the
1316	State University System under s. 121.35.
1317	2.  Except as provided in subparagraph 6., election to
1318	participate is made within 12 months immediately following the
1319	date on which the member first reaches normal retirement date,
1320	or, for a member who reaches normal retirement date based on
1321	service before he or she reaches age 62, or age 55 for Special
1322	Risk Class members, election to participate may be deferred to
1323	the 12 months immediately following the date the member attains
1324	57, or age 52 for Special Risk Class members. A member who
1325	delays DROP participation during the 12-month period immediately
1326	following his or her maximum DROP deferral date, except as
1327	provided in subparagraph 6., loses a month of DROP participation
1328	for each month delayed. For a member who first reached normal
1329	retirement date or the deferred eligibility date described above
1330	prior to the effective date of this section, election to
1331	participate shall be made within 12 months after the effective
1332	date of this section. A member who fails to make an election
1333	within the such 12-month limitation period forfeits shall
1334	forfeit all rights to participate in the DROP. The member shall
1335	advise his or her employer and the division in writing of the
1336	date on which the DROP begins shall begin. The Such beginning
1337	date may be subsequent to the 12-month election period, but must
1338	be within the original 60-month participation or, with respect
1339	to members who are instructional personnel employed by the
1340	Florida School for the Deaf and the Blind and who have received
1341	authorization by the Board of Trustees of the Florida School for
1342	the Deaf and the Blind to participate in the DROP beyond 60
1343	months, or who are instructional personnel as defined in s.
1344	1012.01(2)(a)-(d) in grades K-12 and who have received
1345	authorization by the district school superintendent to
1346	participate in the DROP beyond 60 months, the 96-month
1347	limitation period as provided in subparagraph (b)1. When
1348	establishing eligibility of the member to participate in the
1349	DROP for the 60-month or, with respect to members who are
1350	instructional personnel employed by the Florida School for the
1351	Deaf and the Blind and who have received authorization by the
1352	Board of Trustees of the Florida School for the Deaf and the
1353	Blind to participate in the DROP beyond 60 months, or who are
1354	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
1355	grades K-12 and who have received authorization by the district
1356	school superintendent to participate in the DROP beyond 60
1357	months, the 96-month maximum participation period, the member
1358	may elect to include or exclude any optional service credit
1359	purchased by the member from the total service used to establish
1360	the normal retirement date. A member who has with dual normal
1361	retirement dates is shall be eligible to elect to participate in
1362	DROP within 12 months after attaining normal retirement date in
1363	either class.
1364	3.  The employer of a member electing to participate in the
1365	DROP, or employers if dually employed, shall acknowledge in
1366	writing to the division the date the member's participation in
1367	the DROP begins and the date the member's employment and DROP
1368	participation will terminate.
1369	4.  Simultaneous employment of a participant by additional
1370	Florida Retirement System employers subsequent to the
1371	commencement of participation in the DROP is shall be
1372	permissible if provided such employers acknowledge in writing a
1373	DROP termination date no later than the participant's existing
1374	termination date or the maximum participation 60-month
1375	limitation period as provided in subparagraph (b)1.
1376	5.  A DROP participant may change employers while
1377	participating in the DROP, subject to the following:
1378	a.  A change of employment must take place without a break
1379	in service so that the member receives salary for each month of
1380	continuous DROP participation. If a member receives no salary
1381	during a month, DROP participation shall cease unless the
1382	employer verifies a continuation of the employment relationship
1383	for such participant pursuant to s. 121.021(39)(b).
1384	b.  Such participant and new employer shall notify the
1385	division of the identity of the new employer on forms required
1386	by the division as to the identity of the new employer.
1387	c.  The new employer shall acknowledge, in writing, the
1388	participant's DROP termination date, which may be extended but
1389	not beyond the maximum participation original 60-month or, with
1390	respect to members who are instructional personnel employed by
1391	the Florida School for the Deaf and the Blind and who have
1392	received authorization by the Board of Trustees of the Florida
1393	School for the Deaf and the Blind to participate in the DROP
1394	beyond 60 months, or who are instructional personnel as defined
1395	in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
1396	authorization by the district school superintendent to
1397	participate in the DROP beyond 60 months, the 96-month period
1398	provided in subparagraph (b)1., shall acknowledge liability for
1399	any additional retirement contributions and interest required if
1400	the participant fails to timely terminate employment, and is
1401	shall be subject to the adjustment required in sub-subparagraph
1402	(c)5.d.
1403	6.  Effective July 1, 2001, for instructional personnel as
1404	defined in s. 1012.01(2), election to participate in the DROP
1405	may shall be made at any time following the date on which the
1406	member first reaches normal retirement date. The member shall
1407	advise his or her employer and the division in writing of the
1408	date on which DROP begins the Deferred Retirement Option Program
1409	shall begin. When establishing eligibility of the member to
1410	participate in the DROP for the 60-month or, with respect to
1411	members who are instructional personnel employed by the Florida
1412	School for the Deaf and the Blind and who have received
1413	authorization by the Board of Trustees of the Florida School for
1414	the Deaf and the Blind to participate in the DROP beyond 60
1415	months, or who are instructional personnel as defined in s.
1416	1012.01(2)(a)-(d) in grades K-12 and who have received
1417	authorization by the district school superintendent to
1418	participate in the DROP beyond 60 months, the 96-month maximum
1419	participation period, as provided in subparagraph (b)1., the
1420	member may elect to include or exclude any optional service
1421	credit purchased by the member from the total service used to
1422	establish the normal retirement date. A member who has with dual
1423	normal retirement dates is shall be eligible to elect to
1424	participate in either class.
1425	(b)  Participation in the DROP.--
1426	1.a.  Except as provided in sub-subparagraph b., an
1427	eligible member may elect to participate in the DROP for a
1428	period not to exceed a maximum of 60 calendar months. or, with
1429	respect to
1430	b.  Members who are instructional personnel employed by the
1431	Florida School for the Deaf and the Blind and authorized who
1432	have received authorization by the Board of Trustees of the
1433	Florida School for the Deaf and the Blind to participate in the
1434	DROP beyond 60 months, or who are instructional personnel as
1435	defined in s. 1012.01(2)(a)-(d) in grades K-12 and authorized
1436	who have received authorization by the district school
1437	superintendent to participate in the DROP beyond 60 calendar
1438	months, or who are instructional personnel as defined in s.
1439	1012.01(2)(a) employed by a developmental research school and
1440	authorized by the school's director, or if the school has no
1441	director, by the school's principal, may participate in DROP for
1442	up to 36 calendar months beyond the 60-month period specified in
1443	sub-subparagraph a. 96 calendar months immediately following the
1444	date on which the member first reaches his or her normal
1445	retirement date or the date to which he or she is eligible to
1446	defer his or her election to participate as provided in
1447	subparagraph (a)2. However, a member who has reached normal
1448	retirement date prior to the effective date of the DROP shall be
1449	eligible to participate in the DROP for a period of time not to
1450	exceed 60 calendar months or, with respect to members who are
1451	instructional personnel employed by the Florida School for the
1452	Deaf and the Blind and who have received authorization by the
1453	Board of Trustees of the Florida School for the Deaf and the
1454	Blind to participate in the DROP beyond 60 months, or who are
1455	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
1456	grades K-12 and who have received authorization by the district
1457	school superintendent to participate in the DROP beyond 60
1458	calendar months, 96 calendar months immediately following the
1459	effective date of the DROP, except a member of the Special Risk
1460	Class who has reached normal retirement date prior to the
1461	effective date of the DROP and whose total accrued value exceeds
1462	75 percent of average final compensation as of his or her
1463	effective date of retirement shall be eligible to participate in
1464	the DROP for no more than 36 calendar months immediately
1465	following the effective date of the DROP.
1466	2.  Upon deciding to participate in the DROP, the member
1467	shall submit, on forms required by the division:
1468	a.  A written election to participate in the DROP;
1469	b.  Selection of the DROP participation and termination
1470	dates that, which satisfy the limitations stated in paragraph
1471	(a) and subparagraph 1. The Such termination date must shall be
1472	in a binding letter of resignation to with the employer,
1473	establishing a deferred termination date. The member may change
1474	the termination date within the limitations of subparagraph 1.,
1475	but only with the written approval of the his or her employer;
1476	c.  A properly completed DROP application for service
1477	retirement as provided in this section; and
1478	d.  Any other information required by the division.
1479	3.  The DROP participant is shall be a retiree under the
1480	Florida Retirement System for all purposes, except for paragraph
1481	(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
1482	and 121.122. DROP participation is final and cannot be canceled
1483	by the participant after the first payment is credited during
1484	the DROP participation period. However, participation in the
1485	DROP does not alter the participant's employment status, and the
1486	member is such employee shall not be deemed retired from
1487	employment until his or her deferred resignation is effective
1488	and termination occurs as provided in s. 121.021(39).
1489	4.  Elected officers are shall be eligible to participate
1490	in the DROP subject to the following:
1491	a.  An elected officer who reaches normal retirement date
1492	during a term of office may defer the election to participate in
1493	the DROP until the next succeeding term in that office. An Such
1494	elected officer who exercises this option may participate in the
1495	DROP for up to 60 calendar months or a period of no longer than
1496	the such succeeding term of office, whichever is less.
1497	b.  An elected or a nonelected participant may run for a
1498	term of office while participating in DROP and, if elected,
1499	extend the DROP termination date accordingly;, except, however,
1500	if such additional term of office exceeds the 60-month
1501	limitation established in subparagraph 1., and the officer does
1502	not resign from office within such 60-month limitation, the
1503	retirement and the participant's DROP is shall be null and void
1504	as provided in sub-subparagraph (c)5.d.
1505	c.(I)  For DROP participation ending before January 1,
1506	2010, an elected officer who is dually employed and elects to
1507	participate in DROP must meet shall be required to satisfy the
1508	definition of termination in s. 121.021(39) within the original
1509	60-month period or maximum participation, with respect to
1510	members who are instructional personnel employed by the Florida
1511	School for the Deaf and the Blind and who have received
1512	authorization by the Board of Trustees of the Florida School for
1513	the Deaf and the Blind to participate in the DROP beyond 60
1514	months, or who are instructional personnel as defined in s.
1515	1012.01(2)(a)-(d) in grades K-12 and who have received
1516	authorization by the district school superintendent to
1517	participate in the DROP beyond 60 months, the 96-month
1518	limitation period as provided in subparagraph 1. for the
1519	nonelected position and may continue employment as an elected
1520	officer as provided in s. 121.053. The elected officer shall
1521	will be enrolled as a renewed member in the Elected Officers'
1522	Class or the Regular Class, as provided in ss. 121.053 and
1523	121.122, on the first day of the month after termination of
1524	employment in the nonelected position and termination of DROP.
1525	Distribution of the DROP benefits shall be made as provided in
1526	paragraph (c).
1527	(II)  For DROP participation beginning on or after January
1528	1, 2010, an elected officer who is dually employed and elects to
1529	participate in DROP must meet the definition of termination in
1530	s. 121.021(39) within the original 60-month period or maximum
1531	participation period as provided in subparagraph 1.
1532	(c)  Benefits payable under the DROP.--
1533	1.  Effective on with the date of DROP participation, the
1534	member's initial normal monthly benefit, including creditable
1535	service, optional form of payment, and average final
1536	compensation, and the effective date of retirement are shall be
1537	fixed. The beneficiary established under the Florida Retirement
1538	System shall be the beneficiary eligible to receive any DROP
1539	benefits payable if the DROP participant dies prior to the
1540	completion of the period of DROP participation. If In the event
1541	a joint annuitant predeceases the member, the member may name a
1542	beneficiary to receive accumulated DROP benefits payable. The
1543	Such retirement benefit, the annual cost of living adjustments
1544	provided in s. 121.101, and interest shall accrue monthly in the
1545	Florida Retirement System Trust Fund. The Such interest shall
1546	accrue at an effective annual rate of 6.5 percent compounded
1547	monthly, on the prior month's accumulated ending balance, up to
1548	the month of termination or death, except as provided in s.
1549	121.053(1)(b)5.
1550	2.  Each employee who elects to participate in the DROP may
1551	shall be allowed to elect to receive a lump-sum payment for
1552	accrued annual leave earned in accordance with agency policy
1553	upon beginning participation in the DROP. The Such accumulated
1554	leave payment certified to the division upon commencement of
1555	DROP shall be included in the calculation of the member's
1556	average final compensation. The employee electing the such lump-
1557	sum payment is upon beginning participation in DROP will not be
1558	eligible to receive a second lump-sum payment upon termination,
1559	except to the extent the employee has earned additional annual
1560	leave which, combined with the original payment, does not exceed
1561	the maximum lump-sum payment allowed by the employing agency's
1562	policy or rules. An Such early lump-sum payment shall be based
1563	on the hourly wage of the employee at the time he or she begins
1564	participation in the DROP. If the member elects to wait and
1565	receive a such lump-sum payment upon termination of DROP and
1566	termination of employment with the employer, any accumulated
1567	leave payment made at that time may not cannot be included in
1568	the member's retirement benefit, which was determined and fixed
1569	by law when the employee elected to participate in the DROP.
1570	3.  The effective date of DROP participation and the
1571	effective date of retirement of a DROP participant shall be the
1572	first day of the month selected by the member to begin
1573	participation in the DROP, provided such date is properly
1574	established, with the written confirmation of the employer, and
1575	the approval of the division, on forms required by the division.
1576	4.  Normal retirement benefits and any interest thereon
1577	shall continue to accrue in the DROP until the established
1578	termination date of the DROP, or until the participant
1579	terminates employment or dies prior to such date, except as
1580	provided in s. 121.053(1)(b)5. Although individual DROP accounts
1581	shall not be established, a separate accounting of each
1582	participant's accrued benefits under the DROP shall be
1583	calculated and provided to participants.
1584	5.  At the conclusion of the participant's DROP, the
1585	division shall distribute the participant's total accumulated
1586	DROP benefits, subject to the following provisions:
1587	a.  The division shall receive verification by the
1588	participant's employer or employers that the such participant
1589	has terminated employment as provided in s. 121.021(39)(b).
1590	b.  The terminated DROP participant or, if deceased, the
1591	such participant's named beneficiary, shall elect on forms
1592	provided by the division to receive payment of the DROP benefits
1593	in accordance with one of the options listed below. If For a
1594	participant or beneficiary who fails to elect a method of
1595	payment within 60 days after of termination of the DROP, the
1596	division shall will pay a lump sum as provided in sub-sub-
1597	subparagraph (I).
1598	(I)  Lump sum.--All accrued DROP benefits, plus interest,
1599	less withholding taxes remitted to the Internal Revenue Service,
1600	shall be paid to the DROP participant or surviving beneficiary.
1601	(II)  Direct rollover.--All accrued DROP benefits, plus
1602	interest, shall be paid from the DROP directly to the custodian
1603	of an eligible retirement plan as defined in s. 402(c)(8)(B) of
1604	the Internal Revenue Code. However, in the case of an eligible
1605	rollover distribution to the surviving spouse of a deceased
1606	participant, an eligible retirement plan is an individual
1607	retirement account or an individual retirement annuity as
1608	described in s. 402(c)(9) of the Internal Revenue Code.
1609	(III)  Partial lump sum.--A portion of the accrued DROP
1610	benefits shall be paid to the DROP participant or surviving
1611	spouse, less withholding taxes remitted to the Internal Revenue
1612	Service, and the remaining DROP benefits shall be transferred
1613	directly to the custodian of an eligible retirement plan as
1614	defined in s. 402(c)(8)(B) of the Internal Revenue Code.
1615	However, in the case of an eligible rollover distribution to the
1616	surviving spouse of a deceased participant, an eligible
1617	retirement plan is an individual retirement account or an
1618	individual retirement annuity as described in s. 402(c)(9) of
1619	the Internal Revenue Code. The proportions shall be specified by
1620	the DROP participant or surviving beneficiary.
1621	c.  The form of payment selected by the DROP participant or
1622	surviving beneficiary must comply complies with the minimum
1623	distribution requirements of the Internal Revenue Code.
1624	d.  A DROP participant who fails to terminate employment as
1625	defined in s. 121.021(39)(b) shall be deemed as not to be
1626	retired, and the DROP election is shall be null and void.
1627	Florida Retirement System membership shall be reestablished
1628	retroactively to the date of the commencement of the DROP, and
1629	each employer with whom the participant continues employment
1630	must shall be required to pay to the Florida Retirement System
1631	Trust Fund the difference between the DROP contributions paid in
1632	paragraph (h) (i) and the contributions required for the
1633	applicable Florida Retirement System class of membership during
1634	the period the member participated in the DROP, plus 6.5 percent
1635	interest compounded annually.
1636	6.  The retirement benefits of any DROP participant who
1637	meets the definition of termination in s. 121.021(39)(b) but is
1638	in violation of the reemployment provisions as provided in
1639	subsection (9) shall be suspended during those months in which
1640	the member is in violation. Any member employed in violation of
1641	this subparagraph and any employing agency that employs or
1642	appoints such member without notifying the Division of
1643	Retirement to suspend retirement benefits are jointly and
1644	severally liable for any benefits paid during the reemployment
1645	limitation period. To avoid liability, the employing agency must
1646	have a written statement from the retiree that he or she is not
1647	retired from a state-administered retirement system. Any
1648	retirement benefits received by a retired member while employed
1649	in violation of the reemployment limitations during the first 6
1650	months after meeting termination in s. 121.021(39) must be
1651	repaid to the Florida Retirement System Trust Fund, and his or
1652	her retirement benefits shall remain suspended until payment is
1653	made. Benefits suspended beyond the end of the retired member's
1654	first 6 calendar months after meeting the definition of
1655	termination in s. 121.021(39)(b) shall apply toward repayment of
1656	benefits received in violation of the reemployment limitation.
1657	7.6.  The accrued benefits of any DROP participant, and any
1658	contributions accumulated under the such program, are shall not
1659	be subject to assignment, execution, attachment, or to any legal
1660	process whatsoever, except for qualified domestic relations
1661	orders by a court of competent jurisdiction, income deduction
1662	orders as provided in s. 61.1301, and federal income tax levies.
1663	8.7.  DROP participants are shall not be eligible for
1664	disability retirement benefits as provided in subsection (4).
1665	(d)  Death benefits under the DROP.--
1666	1.  Upon the death of a DROP participant, the named
1667	beneficiary shall be entitled to apply for and receive the
1668	accrued benefits in the DROP as provided in sub-subparagraph
1669	(c)5.b.
1670	2.  The normal retirement benefit accrued to the DROP
1671	during the month of a participant's death shall be the final
1672	monthly benefit credited for such DROP participant.
1673	3.  Eligibility to participate in the DROP terminates upon
1674	death of the participant. If the participant dies on or after
1675	the effective date of enrollment in the DROP, but prior to the
1676	first monthly benefit being credited to the DROP, Florida
1677	Retirement System benefits shall be paid in accordance with
1678	subparagraph (7)(c)1. or subparagraph 2.
1679	4.  A DROP participant's participants' survivors shall not
1680	be eligible to receive Florida Retirement System death benefits
1681	as provided in paragraph (7)(d).
1682	(e)  Cost-of-living adjustment.--On each July 1, the
1683	participant's participants' normal retirement benefit shall be
1684	increased as provided in s. 121.101.
1685	(f)  Retiree health insurance subsidy.--DROP participants
1686	are not eligible to apply for the retiree health insurance
1687	subsidy payments as provided in s. 112.363 until such
1688	participants have terminated employment and participation in the
1689	DROP.
1690	(g)  Renewed membership.--DROP participants shall not be
1691	eligible for renewed membership in the Florida Retirement System
1692	under ss. 121.053 and 121.122 until termination of employment is
1693	effectuated as provided in s. 121.021(39)(b).
1694	(g)(h)  Employment limitation after DROP
1695	participation.--Upon satisfying the definition of termination of
1696	employment as provided in s. 121.021(39)(b), DROP participants
1697	shall be subject to such reemployment limitations as other
1698	retirees. Reemployment restrictions applicable to retirees as
1699	provided in subsection (9) shall not apply to DROP participants
1700	until their employment and participation in the DROP are
1701	terminated.
1702	(h)(i)  Contributions.--
1703	1.  All employers paying the salary of a DROP participant
1704	filling a regularly established position shall contribute 8.0
1705	percent of such participant's gross compensation for the period
1706	of July 1, 2002, through June 30, 2003, and the percentage 11.56
1707	percent of such compensation required by s. 121.71 thereafter,
1708	which shall constitute the entire employer DROP contribution
1709	with respect to such participant. Such contributions, payable to
1710	the Florida Retirement System Trust Fund in the same manner as
1711	required in s. 121.071, shall be made as appropriate for each
1712	pay period and are in addition to contributions required for
1713	social security and the Retiree Health Insurance Subsidy Trust
1714	Fund. Such employer, social security, and health insurance
1715	subsidy contributions are not included in the DROP.
1716	2.  The employer shall, in addition to subparagraph 1.,
1717	also withhold one-half of the entire social security
1718	contribution required for the participant. Contributions for
1719	social security by each participant and each employer, in the
1720	amount required for social security coverage as now or hereafter
1721	provided by the federal Social Security Act, shall be in
1722	addition to contributions specified in subparagraph 1.
1723	3.  All employers paying the salary of a DROP participant
1724	filling a regularly established position shall contribute the
1725	percent of such participant's gross compensation required in s.
1726	121.071(4), which shall constitute the employer's health
1727	insurance subsidy contribution with respect to such participant.
1728	Such contributions shall be deposited by the administrator in
1729	the Retiree Health Insurance Subsidy Trust Fund.
1730	(i)(j)  Forfeiture of retirement benefits.--Nothing in this
1731	section shall be construed to remove DROP participants from the
1732	scope of s. 8(d), Art. II of the State Constitution, s.
1733	112.3173, and paragraph (5)(f). DROP participants who commit a
1734	specified felony offense while employed will be subject to
1735	forfeiture of all retirement benefits, including DROP benefits,
1736	pursuant to those provisions of law.
1737	(j)(k)  Administration of program.--The division shall make
1738	such rules as are necessary for the effective and efficient
1739	administration of this subsection. The division shall not be
1740	required to advise members of the federal tax consequences of an
1741	election related to the DROP but may advise members to seek
1742	independent advice.
1743	(14)  PAYMENT OF BENEFITS.--This subsection applies to the
1744	payment of benefits to a payee (retiree or beneficiary) under
1745	the Florida Retirement System:
1746	(a)  Federal income tax shall be withheld in accordance
1747	with federal law, unless the payee elects otherwise on Form W-
1748	4P. The division shall prepare and distribute to each recipient
1749	of monthly retirement benefits an appropriate income tax form
1750	that reflects the recipient's income and federal income tax
1751	withheld for the calendar year just ended.
1752	(b)  Subject to approval by the division in accordance with
1753	rule 60S-4.015, Florida Administrative Code, a payee receiving
1754	retirement benefits under the Florida Retirement system may also
1755	have the following payments deducted from his or her monthly
1756	benefit:
1757	1.  Premiums for life and health-related insurance policies
1758	from approved companies.
1759	2.  Life insurance premiums for the State Group Life
1760	Insurance Plan, if authorized in writing by the payee and by the
1761	department of Management Services.
1762	3.  Repayment of overpayments from the Florida Retirement
1763	System Trust Fund, the State Employees' Health Insurance Trust
1764	Fund, or the State Employees' Life Insurance Trust Fund, upon
1765	notification of the payee.
1766	4.  Payments to an alternate payee for alimony or, child
1767	support pursuant to an income deduction order under s. 61.1301,
1768	or division of marital assets pursuant to a qualified domestic
1769	relations order under s. 222.21 or an income deduction order
1770	under s. 61.1301.
1771	5.  Payments to the Internal Revenue Service for federal
1772	income tax levies, upon notification of the division by the
1773	Internal Revenue Service.
1774	(c)  A payee must shall notify the division of any change
1775	in his or her address. The division may suspend benefit payments
1776	to a payee if correspondence sent to the payee's mailing address
1777	is returned due to an incorrect address. Benefit payments shall
1778	be resumed upon notification to the division of the payee's new
1779	address.
1780	(d)  A payee whose retirement benefits are reduced by the
1781	application of maximum benefit limits under s. 415(b) of the
1782	Internal Revenue Code, as specified in s. 121.30(5), shall have
1783	the portion of his or her calculated benefit in the Florida
1784	Retirement System defined benefit plan which exceeds such
1785	federal limitation paid through the Florida Retirement System
1786	Preservation of Benefits Plan, as provided in s. 121.1001.
1787	(e)  The Division of Retirement may issue retirement
1788	benefits payable for division of marital assets pursuant to a
1789	qualified domestic relations order directly to the alternate
1790	payee, any court order to the contrary notwithstanding, in order
1791	to meet Internal Revenue Code requirements.
1792	(f)(e)  A No benefit may not be reduced for the purpose of
1793	preserving the member's eligibility for a federal program.
1794	(g)(f)  The division shall adopt rules establishing
1795	procedures for determining that the persons to whom benefits are
1796	being paid are still living. The division shall suspend the
1797	benefits being paid to any payee if when it is unable to contact
1798	such payee and to confirm that he or she is still living.
1799	Section 10.  Section 121.1115, Florida Statutes, is amended
1800	to read:
1801	121.1115  Purchase of retirement credit for out-of-state or
1802	and federal service.--Effective January 1, 1995, a member of the
1803	Florida Retirement System may purchase creditable service for
1804	periods of public employment in another state and receive
1805	creditable service for such periods of employment. Service with
1806	the Federal Government, including any active military service,
1807	may be claimed. Upon completion of each year of service earned
1808	under the Florida Retirement System, a member may purchase up to
1809	1 year of retirement credit for his or her out-of-state service,
1810	subject to the following provisions:
1811	(1)  LIMITATIONS AND CONDITIONS.--To receive credit for the
1812	out-of-state service:
1813	(a)  The out-of-state service being claimed must have been:
1814	1.  Performed in a position of employment with the state or
1815	a political subdivision thereof or with the Federal Government;
1816	2.  Covered by a retirement or pension plan provided by the
1817	state or political subdivision, or by the Federal Government, as
1818	appropriate; and
1819	3.  Performed prior to a period of membership in the
1820	Florida Retirement System.
1821	(b)  The member must have completed a minimum of 6 years of
1822	creditable service under the Florida Retirement System,
1823	excluding out-of-state service and in-state service claimed and
1824	purchased under s. 121.1122.
1825	(c)  Not more than 5 years of creditable service may be
1826	claimed for creditable service aggregated under the provisions
1827	of this section and s. 121.1122.
1828	(d)  The out-of-state service credit claimed under this
1829	section shall be credited only as service in the Regular Class
1830	of membership, and any benefit or pension based thereon is shall
1831	be subject to the limitations and restrictions of s. 112.65.
1832	(e)  The member is not eligible for and may not receive a
1833	pension or benefit from a retirement or pension plan based on or
1834	including the out-of-state service. Eligibility for or the
1835	receipt of contributions to a retirement plan made by the
1836	employer on behalf of the employee is considered a benefit.
1837	(f)(e)  A member shall be eligible To receive service
1838	credit for out-of-state service performed after leaving the
1839	Florida Retirement System, the member must complete only upon
1840	return to membership and completion of at least 1 year of
1841	creditable service in the Florida Retirement System following
1842	the out-of-state service.
1843	(2)  COST.--For each year claimed, the member must pay into
1844	the Florida Retirement System Trust Fund an amount equal to 20
1845	percent of the member's annual compensation for the first full
1846	work year of creditable service earned under the Florida
1847	Retirement System, but not less than $12,000, plus interest at
1848	6.5 percent compounded annually from the date of first annual
1849	salary earned until full payment is made. The employer may pay
1850	all or a portion of the cost of this service credit.
1851	Section 11.  Subsection (2) of section 121.1122, Florida
1852	Statutes, is amended to read:
1853	121.1122  Purchase of retirement credit for in-state public
1854	service and in-state service in accredited nonpublic schools and
1855	colleges, including charter schools and charter technical career
1856	centers.--Effective January 1, 1998, a member of the Florida
1857	Retirement System may purchase creditable service for periods of
1858	certain public or nonpublic employment performed in this state,
1859	as provided in this section.
1860	(2)  LIMITATIONS AND CONDITIONS.--
1861	(a)  A member is not eligible to receive credit for in-
1862	state service under this section until he or she has completed 6
1863	years of creditable service under the Florida Retirement System,
1864	excluding service purchased under this section and out-of-state
1865	service claimed and purchased under s. 121.1115.
1866	(b)  A member may not purchase and receive credit for more
1867	than 5 years of creditable service aggregated under the
1868	provisions of this section and s. 121.1115.
1869	(c)  Service credit claimed under this section shall be
1870	credited only as service in the Regular Class of membership and
1871	is shall be subject to the provisions of s. 112.65.
1872	(d)  Service credit may not be purchased under this section
1873	if the member is eligible to receive or is receiving a pension
1874	or benefit from a retirement or pension plan based on or
1875	including the service. Eligibility for or the receipt of
1876	contributions to a retirement plan made by the employer on
1877	behalf of the employee is considered a benefit.
1878	(e)(d)  A member is shall be eligible to receive service
1879	credit for in-state service performed after leaving the Florida
1880	Retirement System only after upon returning to membership and
1881	completing at least 1 year of creditable service in the Florida
1882	Retirement System following the in-state service.
1883	(f)(e)  The service claimed must have been service covered
1884	by a retirement or pension plan provided by the employer.
1885	Section 12.  Section 121.122, Florida Statutes, is amended
1886	to read:
1887	121.122  Renewed membership in system.--
1888	(1)  Any retiree of a state-administered retirement system
1889	who is initially reemployed on or after January 1, 2010, shall
1890	not be eligible for renewed membership.
1891	(2)  Except as provided in s. 121.053, effective July 1,
1892	1991, through December 31, 2009, any retiree of a state-
1893	administered retirement system who is initially reemployed
1894	employed in a regularly established position with a covered
1895	employer shall be enrolled as a compulsory member of the Regular
1896	Class of the Florida Retirement System or, effective July 1,
1897	1997, through December 31, 2009, any retiree of a state-
1898	administered retirement system who is initially reemployed
1899	employed in a position included in the Senior Management Service
1900	Class shall be enrolled as a compulsory member of the Senior
1901	Management Service Class of the Florida Retirement System as
1902	provided in s. 121.055, and shall be entitled to receive an
1903	additional retirement benefit, subject to the following
1904	conditions:
1905	(1)(a)  Such member shall resatisfy the age and service
1906	requirements as provided in this chapter for initial membership
1907	under the system, unless such member elects to participate in
1908	the Senior Management Service Optional Annuity Program in lieu
1909	of the Senior Management Service Class, as provided in s.
1910	121.055(6).
1911	(b)  Such member shall not be entitled to disability
1912	benefits as provided in s. 121.091(4).
1913	(c)  Such member must meet the reemployment after
1914	retirement limitations as provided in s. 121.091(9), as
1915	applicable.
1916	(3)(2)  Upon renewed membership or reemployment of a
1917	retiree, the employer of such member shall pay the applicable
1918	employer contributions as required by ss. 121.71, 121.74,
1919	121.76, and 112.363 121.055(3) and 121.071(1)(a) and (4).
1920	(4)(3)  The retiree of a state-administered retirement
1921	system who is initially reemployed before January 1, 2010, Such
1922	member shall be entitled to purchase additional retirement
1923	credit in the Regular Class or the Senior Management Service
1924	Class, as applicable, for any postretirement service performed
1925	in a regularly established position as follows:
1926	(a)  For regular class service prior to July 1, 1991, by
1927	paying the Regular Class applicable employee and employer
1928	contributions for the period being claimed, plus 4 percent
1929	interest compounded annually from first year of service claimed
1930	until July 1, 1975, and 6.5 percent interest compounded
1931	thereafter, until full payment is made to the Florida Retirement
1932	System Trust Fund; or
1933	(b)  For Senior Management Service Class prior to June 1,
1934	1997, as provided in s. 121.055(1)(j).
1935
1936	The contribution for postretirement service between July 1,
1937	1985, and July 1, 1991, for which the reemployed retiree
1938	contribution was paid, shall be the difference between such
1939	contribution and the total applicable contribution for the
1940	period being claimed, plus interest. The employer of such member
1941	may pay the applicable employer contribution in lieu of the
1942	member. If a member does not wish to claim credit for all of the
1943	postretirement service for which he or she is eligible, the
1944	service the member claims must be the most recent service.
1945	(5)(4)  No creditable service for which credit was
1946	received, or which remained unclaimed, at retirement may be
1947	claimed or applied toward service credit earned following
1948	renewed membership. However, for retirees initially reemployed
1949	before January 1, 2010, service earned as an elected officer
1950	with renewed membership in the Elected Officers' Class may be
1951	used in conjunction with creditable service earned under this
1952	section, provided the applicable vesting requirements and other
1953	existing statutory conditions required by this chapter are met.
1954	(6)(5)  Notwithstanding any other limitations provided in
1955	this section, a participant of the State University System
1956	Optional Retirement Program, the State Community College
1957	Optional Retirement Program, or the Senior Management Service
1958	Optional Annuity Program who terminated employment and commenced
1959	receiving a distribution an annuity under the provisions of the
1960	optional program, who initially renews membership before January
1961	1, 2010, in the Regular Class as required by this section upon
1962	reemployment after retirement, and who had previously earned
1963	creditable Florida Retirement System service that was not
1964	included in any retirement benefit may include such previous
1965	service toward vesting and service credit in the second career
1966	benefit provided under renewed membership.
1967	(7)(6)  Any renewed member who is not receiving the maximum
1968	health insurance subsidy provided in s. 112.363 shall be
1969	entitled to earn additional credit toward the maximum health
1970	insurance subsidy. Any additional subsidy due because of such
1971	additional credit shall be received only at the time of payment
1972	of the second career retirement benefit. In no case shall the
1973	total health insurance subsidy received by a retiree receiving
1974	benefits from initial and renewed membership exceed the maximum
1975	allowed in s. 112.363.
1976	Section 13.  Section 121.136, Florida Statutes, is amended
1977	to read:
1978	121.136  Annual benefit statement to members.--Each year
1979	Beginning January 1, 1993, and each January thereafter, the
1980	department shall provide each active member of the Florida
1981	Retirement System with 5 or more years of creditable service an
1982	annual statement of benefits that provides. Such statement
1983	should provide the member with basic data about the member's
1984	retirement account. At a minimum Minimally, it must shall
1985	include the member's retirement plan, accrued service credit the
1986	amount of funds on deposit in the retirement account, and an
1987	estimate of retirement benefits.
1988	Section 14.  Section 121.1905, Florida Statutes, is amended
1989	to read:
1990	121.1905  Division of Retirement; creation.--
1991	(1)  There is created the Division of Retirement within the
1992	Department of Management Services.
1993	(2)  The mission of the Division of Retirement is to
1994	provide quality and cost-effective retirement services as
1995	measured by member satisfaction and by comparison with
1996	administrative costs of comparable retirement systems.
1997	Section 15.  Paragraph (a) of subsection (2) of section
1998	121.23, Florida Statutes, is amended to read:
1999	121.23  Disability retirement and special risk membership
2000	applications; Retirement Commission; powers and duties; judicial
2001	review.--The provisions of this section apply to all proceedings
2002	in which the administrator has made a written final decision on
2003	the merits respecting applications for disability retirement,
2004	reexamination of retired members receiving disability benefits,
2005	applications for special risk membership, and reexamination of
2006	special risk members in the Florida Retirement System. The
2007	jurisdiction of the State Retirement Commission under this
2008	section shall be limited to written final decisions of the
2009	administrator on the merits.
2010	(2)  A member shall be entitled to a hearing before the
2011	State Retirement Commission pursuant to ss. 120.569 and
2012	120.57(1) on the merits of any written adverse decision of the
2013	administrator, if he or she files with the commission a written
2014	request for such hearing within 21 days after receipt of such
2015	written decision from the administrator. For the purpose of such
2016	hearings, the commission shall be an "agency head" as defined by
2017	s. 120.52.
2018	(a)  The commission may shall have the authority to issue
2019	orders as a result of the a hearing that are shall be binding on
2020	all parties to the dispute and. The commission may order any
2021	action that it deems appropriate. Any disability retirement
2022	order of the commission that issued pursuant to this subsection
2023	which sustains the application of the member may include an
2024	amount, to be determined by the commission, for reasonable
2025	attorney's fees and taxable costs, which shall be calculated in
2026	accordance with the statewide uniform guidelines for taxation of
2027	costs in civil actions. The amount of the attorney's fees fee
2028	may not exceed 50 percent of the initial yearly benefit awarded
2029	under s. 121.091(4). In cases involving disability retirement,
2030	the State Retirement commission shall require the member to
2031	present substantial competent medical evidence that meets the
2032	requirements of s. 121.091(4)(c)2. and 3., and may require
2033	vocational evidence, before awarding disability retirement
2034	benefits.
2035	Section 16.  Paragraph (a) of subsection (1) of section
2036	121.24, Florida Statutes, is amended to read:
2037	121.24  Conduct of commission business; legal and other
2038	assistance; compensation.--
2039	(1)  The commission shall conduct its business within the
2040	following guidelines:
2041	(a)  For purposes of hearing appeals under s. 121.23, the
2042	commission may meet in panels consisting of no not fewer than
2043	three members. For the purpose of meeting in these panels, a
2044	quorum shall be not fewer than two members. For all other
2045	purposes, A quorum shall consist of three members. The
2046	concurring vote of a majority of the members present is shall be
2047	required to reach a decision, issue orders, and conduct the
2048	business of the commission.
2049	Section 17.  Paragraph (h) of subsection (3) and paragraphs
2050	(a) and (e) of subsection (5) of section 121.35, Florida
2051	Statutes, are amended, and paragraph (g) is added to subsection
2052	(5) of that section, to read:
2053	121.35  Optional retirement program for the State
2054	University System.--
2055	(3)  ELECTION OF OPTIONAL PROGRAM.--
2056	(h)  A participant in the optional retirement program may
2057	not participate in more than one state-administered retirement
2058	system, plan, or class simultaneously. Except as provided in s.
2059	121.052(6)(d), a participant who is or becomes dually employed
2060	in two or more positions covered by the Florida Retirement
2061	System, one of which is eligible for the optional program and
2062	one of which is not, may remain a member of the optional program
2063	and contributions shall be paid as required only on the salary
2064	earned in the position eligible for the optional program during
2065	such period of dual employment; or, within 90 days after
2066	becoming dually employed, he or she may elect membership in the
2067	Regular Class of the Florida Retirement System in lieu of the
2068	optional program and contributions shall be paid as required on
2069	the total salary received for all employment. At retirement, the
2070	average final compensation used to calculate any benefits for
2071	which the member becomes eligible under the Florida Retirement
2072	System shall be based on all salary reported for both positions
2073	during such period of dual employment. When such member ceases
2074	to be dually employed, he or she may, within 90 days, elect to
2075	remain in the Florida Retirement System class for which he or
2076	she is eligible or to again become a participant in the optional
2077	retirement program. Failure to elect membership in the optional
2078	program within 90 days shall result in compulsory membership in
2079	the Florida Retirement System, except that a member filling a
2080	faculty position at under a college with a faculty practice plan
2081	at the University of Florida, or the medical center at the
2082	University of South Florida, or any other state university shall
2083	again participate in the optional retirement program as required
2084	in s. 121.051(1)(a).
2085	(5)  BENEFITS.--
2086	(a)  Benefits shall be payable under the optional
2087	retirement program only to vested participants in the program,
2088	or their beneficiaries as designated by the participant in the
2089	contract with a provider company, and such benefits shall be
2090	paid only by the designated company in accordance with s. 403(b)
2091	of the Internal Revenue Code and in accordance with the terms of
2092	the annuity contract or contracts applicable to the participant.
2093	Benefits shall accrue in individual accounts that are
2094	participant-directed, portable, and funded by employer
2095	contributions and the earnings thereon. The participant must be
2096	terminated from all employment with all Florida Retirement
2097	System employers, as provided in s. 121.021(39), to begin
2098	receiving the employer-funded benefit. Benefits funded by
2099	employer contributions shall be payable in accordance with the
2100	following terms and conditions:
2101	1.  Benefits shall be payable only to a participant, to his
2102	or her beneficiaries, or to his or her estate, as designated by
2103	the participant.
2104	2.  Benefits shall be paid by the provider company or
2105	companies in accordance with the law, the provisions of the
2106	contract, and any applicable department board rule or policy.
2107	3.  In the event of a participant's death, moneys
2108	accumulated by, or on behalf of, the participant, less
2109	withholding taxes remitted to the Internal Revenue Service, if
2110	any, shall be distributed to the participant's designated
2111	beneficiary or beneficiaries, or to the participant's estate, as
2112	if the participant retired on the date of death, as provided in
2113	paragraph (c). No other death benefits shall be available for
2114	survivors of participants under the optional retirement program
2115	except for such benefits, or coverage for such benefits, as are
2116	separately afforded by the employer, at the employer's
2117	discretion.
2118	(e)  A participant who chooses to receive his or her
2119	benefits upon termination of employment as defined in s.
2120	121.021(39) shall have responsibility to notify the provider
2121	company of the date on which he or she wishes benefits funded by
2122	employer contributions to begin. Benefits may be deferred until
2123	such time as the participant chooses to make such application.
2124	(g)  For purposes of this section, "retiree" means a former
2125	participant of the optional retirement program who has
2126	terminated employment and has taken a distribution as provided
2127	in this subsection, except for a mandatory distribution of a de
2128	minimis account authorized by the department.
2129	Section 18.  Paragraph (f) of subsection (2) of section
2130	121.4501, Florida Statutes, is amended to read:
2131	121.4501  Public Employee Optional Retirement Program.--
2132	(2)  DEFINITIONS.--As used in this part, the term:
2133	(f)  "Eligible employee" means an officer or employee, as
2134	defined in s. 121.021(11), who:
2135	1.  Is a member of, or is eligible for membership in, the
2136	Florida Retirement System, including any renewed member of the
2137	Florida Retirement System initially enrolled before January 1,
2138	2010; or
2139	2.  Participates in, or is eligible to participate in, the
2140	Senior Management Service Optional Annuity Program as
2141	established under s. 121.055(6), the State Community College
2142	System Optional Retirement Program as established under s.
2143	121.051(2)(c), or the State University System Optional
2144	Retirement Program established under s. 121.35.
2145
2146	The term does not include any member participating in the
2147	Deferred Retirement Option Program established under s.
2148	121.091(13), a retiree of a state-administered retirement system
2149	initially reemployed on or after January 1, 2010, or a mandatory
2150	participant of the State University System Optional Retirement
2151	Program established under s. 121.35.
2152	Section 19.  Paragraph (b) of subsection (1) of section
2153	121.591, Florida Statutes, is amended to read:
2154	121.591  Benefits payable under the Public Employee
2155	Optional Retirement Program of the Florida Retirement
2156	System.--Benefits may not be paid under this section unless the
2157	member has terminated employment as provided in s.
2158	121.021(39)(a) or is deceased and a proper application has been
2159	filed in the manner prescribed by the state board or the
2160	department. The state board or department, as appropriate, may
2161	cancel an application for retirement benefits when the member or
2162	beneficiary fails to timely provide the information and
2163	documents required by this chapter and the rules of the state
2164	board and department. In accordance with their respective
2165	responsibilities as provided herein, the State Board of
2166	Administration and the Department of Management Services shall
2167	adopt rules establishing procedures for application for
2168	retirement benefits and for the cancellation of such application
2169	when the required information or documents are not received. The
2170	State Board of Administration and the Department of Management
2171	Services, as appropriate, are authorized to cash out a de
2172	minimis account of a participant who has been terminated from
2173	Florida Retirement System covered employment for a minimum of 6
2174	calendar months. A de minimis account is an account containing
2175	employer contributions and accumulated earnings of not more than
2176	$5,000 made under the provisions of this chapter. Such cash-out
2177	must either be a complete lump-sum liquidation of the account
2178	balance, subject to the provisions of the Internal Revenue Code,
2179	or a lump-sum direct rollover distribution paid directly to the
2180	custodian of an eligible retirement plan, as defined by the
2181	Internal Revenue Code, on behalf of the participant. If any
2182	financial instrument issued for the payment of retirement
2183	benefits under this section is not presented for payment within
2184	180 days after the last day of the month in which it was
2185	originally issued, the third-party administrator or other duly
2186	authorized agent of the State Board of Administration shall
2187	cancel the instrument and credit the amount of the instrument to
2188	the suspense account of the Public Employee Optional Retirement
2189	Program Trust Fund authorized under s. 121.4501(6). Any such
2190	amounts transferred to the suspense account are payable upon a
2191	proper application, not to include earnings thereon, as provided
2192	in this section, within 10 years after the last day of the month
2193	in which the instrument was originally issued, after which time
2194	such amounts and any earnings thereon shall be forfeited. Any
2195	such forfeited amounts are assets of the Public Employee
2196	Optional Retirement Program Trust Fund and are not subject to
2197	the provisions of chapter 717.
2198	(1)  NORMAL BENEFITS.--Under the Public Employee Optional
2199	Retirement Program:
2200	(b)  If a participant elects to receive his or her benefits
2201	upon termination of employment as defined in s. 121.021(39), the
2202	participant must submit a written application or an equivalent
2203	form to the third-party administrator indicating his or her
2204	preferred distribution date and selecting an authorized method
2205	of distribution as provided in paragraph (c). The participant
2206	may defer receipt of benefits until he or she chooses to make
2207	such application, subject to federal requirements.
2208	Section 20.  Subsection (1) of section 238.183, Florida
2209	Statutes, is amended to read:
2210	238.183  Developmental research school and Florida School
2211	for the Deaf and the Blind instructional personnel; reemployment
2212	after retirement.--
2213	(1)  Notwithstanding any other law, instructional
2214	personnel, as defined in s. 1012.01(2), employed by a
2215	developmental research school or the Florida School for the Deaf
2216	and the Blind are eligible for reemployment after retirement in
2217	the same manner as classroom teachers who are employed by the
2218	district school boards, as described in ss.
2219	121.091(9)(b)2.b.(I)3. and 238.181(2)(c).
2220	Section 21.  Paragraph (g) of subsection (3) and subsection
2221	(8) of section 1012.33, Florida Statutes, are amended to read:
2222	1012.33  Contracts with instructional staff, supervisors,
2223	and school principals.--
2224	(3)
2225	(g)  Beginning July 1, 2001, for each employee who enters
2226	into a written contract, pursuant to this section, in a school
2227	district in which the employee was not employed as of June 30,
2228	2001, or was employed as of June 30, 2001, but has since broken
2229	employment with that district for 1 school year or more, for
2230	purposes of pay, a district school board must recognize and
2231	accept each year of full-time public school teaching service
2232	earned in the State of Florida or outside the state and for
2233	which the employee received a satisfactory performance
2234	evaluation. Instructional personnel employed pursuant to s.
2235	121.091(9)(b)2.b.(I)3. are exempt from the provisions of this
2236	paragraph.
2237	(8)  Notwithstanding any other provision of law, a retired
2238	any member who has retired may interrupt retirement and be
2239	reemployed in any public school. A Any member so reemployed by
2240	the same district from which he or she retired may be employed
2241	on a probationary contractual basis as provided in subsection
2242	(1); however, no regular retirement employee shall be eligible
2243	to renew membership under a retirement system created by chapter
2244	121 or chapter 238.
2245	Section 22.  Sections 121.093, 121.094, and 121.45, Florida
2246	Statutes, are repealed.
2247	Section 23.  The Legislature finds that a proper and
2248	legitimate state purpose is served when employees and retirees
2249	of the state and its political subdivisions, as well as the
2250	dependents, survivors, and beneficiaries of such employees and
2251	retirees, are extended the basic protections afforded by
2252	governmental retirement systems that provide fair and adequate
2253	benefits and that are managed, administered, and funded in an
2254	actuarially sound manner as required by s. 14, Art. X of the
2255	State Constitution and part VII of chapter 112, Florida
2256	Statutes. Therefore, the Legislature determines and declares
2257	that the amendment of s. 121.091, Florida Statutes, by this act
2258	fulfills an important state interest.
2259	Section 24.  This act shall take effect July 1, 2009.
2260
2261	-----------------------------------------------------
2262	T I T L E  A M E N D M E N T
2263	Remove the entire title and insert:
2264	A bill to be entitled
2265	An act relating to retirement; amending s. 121.021, F.S.;
2266	redefining the terms "employer," "officer or employee,"
2267	"past service," "normal retirement date," "termination,"
2268	"regularly established position," and "temporary
2269	position"; defining the terms "state board" and
2270	"trustees"; amending s. 121.031, F.S.; requiring
2271	promotional materials that refer to the Florida Retirement
2272	System to include a disclaimer unless approval is obtained
2273	from the Department of Management Services or the State
2274	Board of Administration; amending s. 121.051, F.S.;
2275	conforming a cross-reference; clarifying when a State
2276	Community College System Optional Retirement Program
2277	participant is considered a retiree; revising provisions
2278	relating to participation in the Florida Retirement System
2279	by certain employers; excluding the participation of
2280	certain entities under a lease agreement; amending s.
2281	121.052, F.S.; revising membership criteria for members of
2282	the Elected Officers' Class; revising the dates for when a
2283	governing body of a municipality or special district may
2284	elect to designate its elected positions for inclusion in
2285	the Elected Officers' Class; amending s. 121.053, F.S.;
2286	revising provisions relating to participation in the
2287	Elected Officers' Class for retired members; amending s.
2288	121.055, F.S.; revising provisions relating to
2289	participation in the Senior Management Service Class;
2290	revising benefit payment procedures for the Senior
2291	Management Service Optional Annuity Program; clarifying
2292	when a participant is considered retired; amending s.
2293	121.071, F.S.; providing an additional mechanism for the
2294	payment of employee contributions to the system; amending
2295	s. 121.081, F.S.; providing for receipt of credit for past
2296	or prior service by charter school and charter technical
2297	career center employees; prohibiting a member from
2298	receiving credit for service covered and reported by both
2299	a public employer and a private employer; amending s.
2300	121.091, F.S.; revising and clarifying provisions relating
2301	to retirement benefits; deleting a restriction on the
2302	reemployment of certain personnel by the Florida School
2303	for the Deaf and the Blind; authorizing developmental
2304	research schools and charter schools to reemploy certain
2305	retired members under specified conditions; revising
2306	limitations on the payment of retirement benefits for
2307	certain retired persons who are reemployed by an employer
2308	participating in a state-administered retirement program;
2309	prohibiting certain persons holding public office from
2310	enrolling in the Florida Retirement System; deleting a
2311	provision authorizing an employing agency to reemploy a
2312	retired member as a firefighter or paramedic after a
2313	specified period; providing applicability; revising
2314	provisions relating to reemployment of retirees of the
2315	Public Employee Optional Retirement Program; providing
2316	that certain members who delay DROP participation lose a
2317	month of DROP participation for each month delayed;
2318	clarifying that DROP participation cannot be canceled;
2319	clarifying maximum DROP participation; providing
2320	exceptions to certain benefits payable under DROP;
2321	providing for the suspension of DROP benefits to a
2322	participant who is reemployed; deleting obsolete
2323	provisions; revising employer contribution requirements;
2324	authorizing the Division of Retirement to issue benefits
2325	pursuant to a qualified domestic relations order directly
2326	to the alternate payee; amending s. 121.1115, F.S.;
2327	revising provisions relating to receiving retirement
2328	credit for out-of-state service; providing that a member
2329	is not eligible for and may not receive a benefit based on
2330	such service; amending s. 121.1122, F.S.; revising
2331	provisions relating to receiving retirement credit for in-
2332	state service; providing that certain members may not be
2333	eligible to purchase service credit; amending s. 121.122,
2334	F.S.; providing that certain retirees initially reemployed
2335	on or after a specified date are ineligible for renewed
2336	membership in the system; revising conditions under which
2337	a retiree is entitled to certain additional retirement
2338	benefits; amending s. 121.136, F.S.; revising provisions
2339	relating to the annual statement of benefits provided to
2340	certain active members of the system; amending s.
2341	121.1905, F.S.; deleting a provision describing the
2342	mission of the Division of Retirement; amending s. 121.23,
2343	F.S.; requiring the State Retirement Commission to use
2344	certain requirements used by the Secretary of Management
2345	Services before approving a disability retirement benefit;
2346	amending s. 121.24, F.S.; requiring a quorum of three
2347	members for all appeal hearings held by the commission;
2348	amending s. 121.35, F.S.; revising a compulsory membership
2349	exception for certain members failing to elect membership
2350	in the optional retirement program; providing a cross-
2351	reference; defining the term "retiree" for purposes of the
2352	State University System Optional Retirement Program;
2353	amending s. 121.4501, F.S.; revising the definition of
2354	"eligible employee" for purposes of the Public Employee
2355	Optional Retirement Program; amending s. 121.591, F.S.;
2356	providing a cross-reference; amending s. 238.183, F.S.;
2357	conforming a cross-reference; amending s. 1012.33, F.S.;
2358	deleting a provision preventing persons who have retired
2359	from the public school system from renewing membership in
2360	the Florida Retirement System or Teachers' Retirement
2361	System upon reemployment by the school system; repealing
2362	s. 121.093, F.S., relating to instructional personnel
2363	reemployment after retirement from a developmental
2364	research school or the Florida School for the Deaf and the
2365	Blind; repealing s. 121.094, F.S., relating to
2366	instructional personnel reemployment after retirement from
2367	a charter school; repealing s. 121.45, F.S., relating to
2368	interstate compacts relating to pension portability;
2369	providing a declaration of important state interest;
2370	providing an effective date.

CODING: Words stricken are deletions; words underlined are additions.