Amendment
Bill No. CS/CS/HB 479

Amendment No. 805709

CHAMBER ACTION
Senate		House
.
.
.

---

---

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

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