HB 479

1	A bill to be entitled
2	An act relating to retirement; amending s. 121.021, F.S.;
3	redefining the term "termination"; amending s. 121.053,
4	F.S.; revising provisions relating to participation in the
5	Elected Officers' Class for retired members; amending s.
6	121.055, F.S.; revising provisions relating to
7	participation in the Senior Management Service Class;
8	amending s. 121.091, F.S.; revising limitations on the
9	payment of retirement benefits for certain retired persons
10	who are reemployed by an employer participating in a
11	state-administered retirement system; deleting a
12	restriction on the reemployment of certain personnel by
13	the Florida School for the Deaf and the Blind; prohibiting
14	certain persons holding public office from electing to
15	retire while continuing employment in that elected office;
16	deleting a provision authorizing an employing agency to
17	reemploy a retired member as a firefighter or paramedic
18	after a specified period; providing certain limitations
19	for DROP participants; clarifying that DROP participation
20	cannot be canceled; providing for the suspension of DROP
21	benefits to a participant who is reemployed; authorizing
22	the Division of Retirement to issue benefits directly to
23	the alternate payee pursuant to an income deduction order
24	or a qualified domestic relations order; repealing s.
25	121.093, F.S., authorizing a developmental research school
26	and the Florida School for the Deaf and the Blind to
27	reemploy instructional personnel after retirement;
28	repealing s. 121.094, F.S., authorizing charter schools to
29	reemploy instructional personnel after retirement;
30	amending s. 121.122, F.S.; providing that certain persons
31	are ineligible for renewed membership in the Florida
32	Retirement System; amending s. 121.35, F.S.; providing a
33	cross-reference; repealing s. 121.45, F.S., relating to
34	interstate compacts for pension portability; amending s.
35	121.4501, F.S.; revising the definition of the term
36	"eligible employee" for purposes of the Public Employee
37	Optional Retirement Program; amending s. 121.591, F.S.;
38	providing a cross-reference; providing an effective date.
39
40	Be It Enacted by the Legislature of the State of Florida:
41
42	Section 1.  Subsection (39) of section 121.021, Florida
43	Statutes, is amended to read:
44	121.021  Definitions.--The following words and phrases as
45	used in this chapter have the respective meanings set forth
46	unless a different meaning is plainly required by the context:
47	(39)(a)  "Termination" occurs, except as provided in
48	paragraph (b), when:
49	1.  For retirements effective before January 1, 2010, a
50	member ceases all employment relationships with employers under
51	this system, as defined in subsection (10), but in the event a
52	member should be employed by any such employer within the next
53	calendar month, termination shall be deemed not to have
54	occurred. A leave of absence shall constitute a continuation of
55	the employment relationship, except that a leave of absence
56	without pay due to disability may constitute termination for a
57	member, if such member makes application for and is approved for
58	disability retirement in accordance with s. 121.091(4). The
59	department or board may require other evidence of termination as
60	it deems necessary.
61	2.  For retirements effective on or after January 1, 2010,
62	a member ceases all employment relationships with employers
63	under this system, as defined in subsection (10), but in the
64	event a member should be employed by any such employer within
65	the next 12 calendar months, termination shall be deemed not to
66	have occurred. A leave of absence shall constitute a
67	continuation of the employment relationship, except that a leave
68	of absence without pay due to disability may constitute
69	termination for a member, if such member makes application for
70	and is approved for disability retirement in accordance with s.
71	121.091(4). The department or board may require other evidence
72	of termination as it deems necessary.
73	(b)  "Termination" for a member electing to participate
74	under the Deferred Retirement Option Program occurs when the
75	Deferred Retirement Option Program participant ceases all
76	employment relationships with employers under this system in
77	accordance with s. 121.091(13), but:
78	1.  For DROP termination dates before January 1, 2010, in
79	the event the Deferred Retirement Option Program participant
80	should be employed by any such employer within the next calendar
81	month, termination will be deemed not to have occurred, except
82	as provided in s. 121.091(13)(b)4.c. A leave of absence shall
83	constitute a continuation of the employment relationship.
84	2.  For DROP termination dates on or after January 1, 2010,
85	in the event the DROP participant should be employed by any such
86	employer within the next 12 calendar months, termination will be
87	deemed not to have occurred, except as provided in s.
88	121.091(13)(b)4.c. A leave of absence shall constitute a
89	continuation of the employment relationship.
90	Section 2.  Subsections (1) and (2) of section 121.053,
91	Florida Statutes, are amended to read:
92	121.053  Participation in the Elected Officers' Class for
93	retired members.--
94	(1)(a)1.  Any retiree of a state-administered retirement
95	system who initially serves in an elective office in a regularly
96	established position with a covered employer on or after January
97	1, 2010, shall not be enrolled in the Florida Retirement System.
98	2.  An elected officer who is elected or appointed to an
99	elective office and is participating in the Deferred Retirement
100	Option Program is subject to termination as provided in s.
101	121.021(39)(b), and reemployment limitations as provided in s.
102	121.091(9), upon completion of his or her DROP participation
103	period.
104	(b)  Before January 1, 2010, any member who retired under
105	any existing system as defined in s. 121.021(2), and receives a
106	benefit thereof, and who serves in an office covered by the
107	Elected Officers' Class for a period of at least 6 years, shall
108	be entitled to receive an additional retirement benefit for such
109	elected officer service prior to July 1, 1990, under the Elected
110	Officers' Class of the Florida Retirement System, as follows:
111	1.  Upon completion of 6 or more years of creditable
112	service in an office covered by the Elected Officers' Class, s.
113	121.052, such member shall notify the administrator of his or
114	her intent to purchase elected officer service prior to July 1,
115	1990, and shall pay the member contribution applicable for the
116	period being claimed, plus 4 percent interest compounded
117	annually from the first year of service claimed until July 1,
118	1975, and 6.5 percent interest compounded annually thereafter,
119	until full payment is made to the Florida Retirement System
120	Trust Fund; however, such member may purchase retirement credit
121	under the Elected Officers' Class only for such service as an
122	elected officer.
123	2.  Upon payment of the amount specified in subparagraph
124	1., the employer shall pay into the Florida Retirement System
125	Trust Fund the applicable employer contribution for the period
126	of elected officer service prior to July 1, 1990, being claimed
127	by the member, plus 4 percent interest compounded annually from
128	the first year of service claimed until July 1, 1975, and 6.5
129	percent interest compounded annually thereafter, until full
130	payment is made to the Florida Retirement System Trust Fund.
131	(c)(b)  Any retired member of the Florida Retirement
132	System, or any existing system as defined in s. 121.021(2), who,
133	on or after July 1, 1990, through December 31, 2009, is serving
134	in, or is elected or appointed to, an elective office covered by
135	the Elected Officers' Class shall be enrolled in the appropriate
136	subclass of the Elected Officers' Class of the Florida
137	Retirement System, and applicable contributions shall be paid
138	into the Florida Retirement System Trust Fund as provided in s.
139	121.052(7). Pursuant thereto:
140	1.  Any such retired member shall be eligible to continue
141	to receive retirement benefits as well as compensation for the
142	elected officer service for as long as he or she remains in an
143	elective office covered by the Elected Officers' Class.
144	2.  If any such member serves in an elective office covered
145	by the Elected Officers' Class and becomes vested under that
146	class, he or she shall be entitled to receive an additional
147	retirement benefit for such elected officer service.
148	3.  Such member shall be entitled to purchase additional
149	retirement credit in the Elected Officers' Class for any
150	postretirement service performed in an elected position eligible
151	for the Elected Officers' Class prior to July 1, 1990, or in the
152	Regular Class for any postretirement service performed in any
153	other regularly established position prior to July 1, 1991, by
154	paying the applicable Elected Officers' Class or Regular Class
155	employee and employer contributions for the period being
156	claimed, plus 4 percent interest compounded annually from the
157	first year of service claimed until July 1, 1975, and 6.5
158	percent interest compounded thereafter, until full payment is
159	made to the Florida Retirement System Trust Fund. The
160	contribution for postretirement Regular Class service between
161	July 1, 1985, and July 1, 1991, for which the reemployed retiree
162	contribution was paid, shall be the difference between such
163	contribution and the total applicable contribution for the
164	period being claimed, plus interest. The employer of such member
165	may pay the applicable employer contribution in lieu of the
166	member. If a member does not wish to claim credit for all of the
167	postretirement service for which he or she is eligible, the
168	service the member claims must be the most recent service.
169	4.  Creditable service for which credit was received, or
170	which remained unclaimed, at retirement may not be claimed or
171	applied toward service credit earned following renewed
172	membership. However, service earned in accordance with the
173	renewed membership provisions in s. 121.122 may be used in
174	conjunction with creditable service earned under this paragraph,
175	provided applicable vesting requirements and other existing
176	statutory conditions required by this chapter are met.
177	5.  An elected officer who is elected or appointed to an
178	elective office and is participating in the Deferred Retirement
179	Option Program before January 1, 2010, is not subject to
180	termination as provided in s. 121.021(39)(b), or reemployment
181	limitations as provided in s. 121.091(9), until the end of his
182	or her current term of office or, if the officer is
183	consecutively elected or reelected to an elective office
184	eligible for coverage under the Florida Retirement System, until
185	he or she no longer holds such an elective office, as follows:
186	a.  At the end of the 60-month DROP period:
187	(I)  The officer's DROP account shall accrue no additional
188	monthly benefits, but shall continue to earn interest as
189	provided in s. 121.091(13).
190	(II)  No retirement contributions shall be required of the
191	employer of the elected officer and no additional retirement
192	credit shall be earned under the Florida Retirement System.
193	b.  Nothing herein shall prevent an elected officer from
194	voluntarily terminating his or her elective office at any time
195	and electing to receive his or her DROP proceeds. However, until
196	termination requirements are fulfilled as provided in s.
197	121.021(39), any elected officer whose termination limitations
198	are extended by this section shall be ineligible for renewed
199	membership in the system and shall receive no pension payments,
200	DROP lump sum payments, or any other state payment other than
201	the statutorily determined salary, travel, and per diem for the
202	elective office.
203	c.  Upon termination, the officer shall receive his or her
204	accumulated DROP account, plus interest, and shall accrue and
205	commence receiving monthly retirement benefits, which shall be
206	paid on a prospective basis only.
207
208	However, an officer electing to participate in the Deferred
209	Retirement Option Program on or before June 30, 2002, shall not
210	be required to terminate and shall remain subject to the
211	provisions of this subparagraph as adopted in section 1 of
212	chapter 2001-235, Laws of Florida.
213	(2)  Upon attaining his or her normal retirement date and
214	payment of the amount specified in paragraphs (1)(b) and (c)
215	(1)(a) and (b), and upon application to the administrator of the
216	intent to retire, the member shall receive a monthly benefit
217	under this section, in addition to any benefits already being
218	received, which shall commence on the last day of the month of
219	retirement and be payable on the last day of the month
220	thereafter during his or her lifetime. The amount of such
221	monthly benefit shall be the total percentage of retirement
222	credit purchased under this section multiplied by the member's
223	average monthly compensation as an elected officer, adjusted
224	according to the option selected at retirement under s.
225	121.091(6).
226	Section 3.  Paragraph (f) of subsection (1) and paragraph
227	(c) of subsection (6) of section 121.055, Florida Statutes, are
228	amended to read:
229	121.055  Senior Management Service Class.--There is hereby
230	established a separate class of membership within the Florida
231	Retirement System to be known as the "Senior Management Service
232	Class," which shall become effective February 1, 1987.
233	(1)
234	(f)  Effective July 1, 1997:
235	1.  Except as provided in subparagraph 3., any elected
236	state officer eligible for membership in the Elected Officers'
237	Class under s. 121.052(2)(a), (b), or (c) who elects membership
238	in the Senior Management Service Class under s. 121.052(3)(c)
239	may, within 6 months after assuming office or within 6 months
240	after this act becomes a law for serving elected state officers,
241	elect to participate in the Senior Management Service Optional
242	Annuity Program, as provided in subsection (6), in lieu of
243	membership in the Senior Management Service Class.
244	2.  Except as provided in subparagraph 3., any elected
245	county officer eligible for membership in the Elected Officers'
246	Class under s. 121.052(2)(d) who elects membership in the Senior
247	Management Service Class under s. 121.052(3)(c) may, within 6
248	months after assuming office, or within 6 months after this act
249	becomes a law for serving elected county officers, elect to
250	withdraw from the Florida Retirement System participate in a
251	lifetime monthly annuity program, as provided in subparagraph
252	(b)2., in lieu of membership in the Senior Management Service
253	Class.
254	3.  Any retiree of a state-administered retirement system
255	who is initially reemployed on or after January 1, 2010, as an
256	elected official eligible for Elected Officers' Class membership
257	shall not be eligible for renewed membership in the Senior
258	Management Service Optional Annuity Program as provided in
259	subsection (6) or to withdraw from the Florida Retirement System
260	as a renewed member as provided in subparagraph (b)2., as
261	applicable, in lieu of Senior Management Service Class
262	membership.
263	(6)
264	(c)  Participation.--
265	1.  Any eligible employee who is employed on or before
266	February 1, 1987, may elect to participate in the optional
267	annuity program in lieu of participation in the Senior
268	Management Service Class. Such election shall be made in writing
269	and filed with the department and the personnel officer of the
270	employer on or before May 1, 1987. Any eligible employee who is
271	employed on or before February 1, 1987, and who fails to make an
272	election to participate in the optional annuity program by May
273	1, 1987, shall be deemed to have elected membership in the
274	Senior Management Service Class.
275	2.  Except as provided in subparagraph 6., any employee who
276	becomes eligible to participate in the optional annuity program
277	by reason of initial employment commencing after February 1,
278	1987, may, within 90 days after the date of commencement of
279	employment, elect to participate in the optional annuity
280	program. Such election shall be made in writing and filed with
281	the personnel officer of the employer. Any eligible employee who
282	does not within 90 days after commencement of such employment
283	elect to participate in the optional annuity program shall be
284	deemed to have elected membership in the Senior Management
285	Service Class.
286	3.  A person who is appointed to a position in the Senior
287	Management Service Class and who is a member of an existing
288	retirement system or the Special Risk or Special Risk
289	Administrative Support Classes of the Florida Retirement System
290	may elect to remain in such system or class in lieu of
291	participation in the Senior Management Service Class or optional
292	annuity program. Such election shall be made in writing and
293	filed with the department and the personnel officer of the
294	employer within 90 days of such appointment. Any eligible
295	employee who fails to make an election to participate in the
296	existing system, the Special Risk Class of the Florida
297	Retirement System, the Special Risk Administrative Support Class
298	of the Florida Retirement System, or the optional annuity
299	program shall be deemed to have elected membership in the Senior
300	Management Service Class.
301	4.  Except as provided in subparagraph 5., an employee's
302	election to participate in the optional annuity program is
303	irrevocable as long as such employee continues to be employed in
304	an eligible position and continues to meet the eligibility
305	requirements set forth in this paragraph.
306	5.  Effective from July 1, 2002, through September 30,
307	2002, any active employee in a regularly established position
308	who has elected to participate in the Senior Management Service
309	Optional Annuity Program has one opportunity to choose to move
310	from the Senior Management Service Optional Annuity Program to
311	the Florida Retirement System defined benefit program.
312	a.  The election must be made in writing and must be filed
313	with the department and the personnel officer of the employer
314	before October 1, 2002, or, in the case of an active employee
315	who is on a leave of absence on July 1, 2002, within 90 days
316	after the conclusion of the leave of absence. This election is
317	irrevocable.
318	b.  The employee will receive service credit under the
319	defined benefit program of the Florida Retirement System equal
320	to his or her years of service under the Senior Management
321	Service Optional Annuity Program. The cost for such credit shall
322	be an amount representing the present value of that employee's
323	accumulated benefit obligation for the affected period of
324	service.
325	c.  The employee must transfer the total accumulated
326	employer contributions and earnings on deposit in his or her
327	Senior Management Service Optional Annuity Program account. If
328	the transferred amount is not sufficient to pay the amount due,
329	the employee must pay a sum representing the remainder of the
330	amount due. In no case may the employee retain any employer
331	contributions or earnings thereon from the Senior Management
332	Service Optional Annuity Program account.
333	6.  Any retiree of a state-administered retirement system
334	who is initially reemployed on or after January 1, 2010, shall
335	not be eligible for renewed membership in the Senior Management
336	Service Optional Annuity Program.
337	Section 4.  Subsections (9), (13), and (14) of section
338	121.091, Florida Statutes, are amended to read:
339	121.091  Benefits payable under the system.--Benefits may
340	not be paid under this section unless the member has terminated
341	employment as provided in s. 121.021(39)(a) or begun
342	participation in the Deferred Retirement Option Program as
343	provided in subsection (13), and a proper application has been
344	filed in the manner prescribed by the department. The department
345	may cancel an application for retirement benefits when the
346	member or beneficiary fails to timely provide the information
347	and documents required by this chapter and the department's
348	rules. The department shall adopt rules establishing procedures
349	for application for retirement benefits and for the cancellation
350	of such application when the required information or documents
351	are not received.
352	(9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
353	(a)  Any person who is retired under this chapter, except
354	under the disability retirement provisions of subsection (4),
355	may be employed by an employer that does not participate in a
356	state-administered retirement system and may receive
357	compensation from that employment without limiting or
358	restricting in any way the retirement benefits payable to that
359	person.
360	(b)1.a.  Any person who is retired under this chapter,
361	except under the disability retirement provisions of subsection
362	(4), may be reemployed by any private or public employer after
363	retirement and receive retirement benefits and compensation from
364	the his or her employer without limitation any limitations,
365	except that the a person may not receive both a salary from
366	reemployment with any agency participating in the Florida
367	Retirement System and retirement benefits under this chapter for
368	a period of 12 calendar months immediately after subsequent to
369	the calendar month that termination is met as defined in s.
370	121.021(39), except as provided in sub-subparagraph b. date of
371	retirement. However, a DROP participant may shall continue
372	employment and receive a salary during the period of
373	participation in DROP the Deferred Retirement Option Program, as
374	provided in subsection (13).
375	b.  Any person who is retired under a state-administered
376	retirement system may not receive a retirement benefit if he or
377	she receives compensation totaling $100,000 or more from an
378	employer participating in the Florida Retirement System. This
379	limitation begins immediately upon employment if the annualized
380	compensation meets or exceeds the limit, or in the month that
381	reported compensation meets or exceeds the limit during the plan
382	year, and continues for as long as the expected payments equal
383	or exceed $100,000. This limitation includes payments as defined
384	in s. 121.021(22) for work performed in regularly established
385	positions. The employer is responsible for notifying the
386	Division of Retirement when this occurs, either at employment or
387	if salary increases lead to the level specified. Any person
388	employed in violation of this sub-subparagraph and any employing
389	agency that knowingly employs or appoints such person without
390	notifying the Division of Retirement to suspend retirement
391	benefits shall be jointly and severally liable for reimbursement
392	to the Florida Retirement System Trust Fund of any benefits paid
393	during the reemployment limitation period.
394	2.  Any person to whom the limitation in subparagraph 1.
395	applies who violates such reemployment limitation and who is
396	reemployed with any agency participating in the Florida
397	Retirement System after he or she has been retired and met the
398	definition of termination in s. 121.021(39), but before
399	completion of the 12-month limitation period, must shall give
400	timely notice of this fact in writing to the employer and to the
401	Division of Retirement and shall have his or her retirement
402	benefits suspended while employed during for the balance of the
403	12-month limitation period unless the person exceeds the 780-
404	hour limitation in subparagraph 4. or subparagraph 5. Any person
405	employed in violation of this paragraph and any employing agency
406	that which knowingly employs or appoints such person without
407	notifying the division of Retirement to suspend retirement
408	benefits are shall be jointly and severally liable for
409	reimbursement to the retirement trust fund of any benefits paid
410	during the reemployment limitation period. To avoid liability,
411	the such employing agency must shall have a written statement
412	from the retiree that he or she is not retired from a state-
413	administered retirement system. Any retirement benefits received
414	while reemployed during this reemployment limitation period must
415	shall be repaid to the Florida Retirement System Trust Fund
416	retirement trust fund, and retirement benefits shall remain
417	suspended until such repayment has been made. Benefits suspended
418	beyond the reemployment limitation shall apply toward repayment
419	of benefits received in violation of the reemployment
420	limitation.
421	3.  A district school board may reemploy a retired member
422	as a substitute or hourly teacher, education paraprofessional,
423	transportation assistant, bus driver, or food service worker on
424	a noncontractual basis after he or she has been retired and met
425	the definition of termination for 1 calendar month, in
426	accordance with s. 121.021(39). A district school board may
427	reemploy a retired member as instructional personnel, as defined
428	in s. 1012.01(2)(a), on an annual contractual basis after he or
429	she has been retired for 1 calendar month, in accordance with s.
430	121.021(39). Any other retired member who is reemployed before
431	meeting the definition of termination voids within 1 calendar
432	month after retirement shall void his or her application for
433	retirement benefits. District school boards reemploying such
434	teachers, education paraprofessionals, transportation
435	assistants, bus drivers, or food service workers are subject to
436	the retirement contribution required by subparagraph 7.
437	4.  A community college board of trustees may reemploy a
438	retired member as an adjunct instructor, that is, an instructor
439	who is noncontractual and part-time, or as a participant in a
440	phased retirement program within the Florida Community College
441	System, after he or she has been retired and met the definition
442	of termination for 1 calendar month, in accordance with s.
443	121.021(39). Any retired member who is reemployed before meeting
444	the definition of termination voids within 1 calendar month
445	after retirement shall void his or her application for
446	retirement benefits. Boards of trustees reemploying such
447	instructors are subject to the retirement contribution required
448	in subparagraph 7. A retired member may be reemployed as an
449	adjunct instructor for no more than 780 hours during the first
450	12 calendar months after meeting the definition of termination
451	of retirement. Any retired member reemployed for more than 780
452	hours during the first 12 months of retirement must shall give
453	timely notice in writing to the employer and to the Division of
454	Retirement of the date he or she will exceed the limitation. The
455	division shall suspend his or her retirement benefits for the
456	remainder of the 12-month limitation period first 12 months of
457	retirement. Any person employed in violation of this
458	subparagraph and any employing agency that which knowingly
459	employs or appoints such person without notifying the division
460	of Retirement to suspend retirement benefits are shall be
461	jointly and severally liable for reimbursement to the retirement
462	trust fund of any benefits paid during the reemployment
463	limitation period. To avoid liability, the such employing agency
464	must shall have a written statement from the retiree that he or
465	she is not retired from a state-administered retirement system.
466	Any retirement benefits received by a retired member while
467	reemployed in excess of 780 hours during the 12-month limitation
468	period must first 12 months of retirement shall be repaid to the
469	Florida Retirement System Trust Fund, and retirement benefits
470	shall remain suspended until repayment is made. Benefits
471	suspended beyond the end of the 12-month limitation period
472	retired member's first 12 months of retirement shall apply
473	toward repayment of benefits received in violation of the 780-
474	hour reemployment limitation.
475	5.  The State University System may reemploy a retired
476	member as an adjunct faculty member or as a participant in a
477	phased retirement program within the State University System
478	after the retired member has met the definition of termination
479	been retired for 1 calendar month, in accordance with s.
480	121.021(39). Any retired member who is reemployed before meeting
481	the definition of termination voids within 1 calendar month
482	after retirement shall void his or her application for
483	retirement benefits. The State University System is subject to
484	the retired contribution required in subparagraph 7., as
485	appropriate. A retired member may be reemployed as an adjunct
486	faculty member or a participant in a phased retirement program
487	for no more than 780 hours during the first 12 calendar months
488	after meeting the definition of termination of his or her
489	retirement. Any retired member reemployed for more than 780
490	hours during the 12-month limitation period first 12 months of
491	retirement shall give timely notice in writing to the employer
492	and to the Division of Retirement of the date he or she will
493	exceed the limitation. The division shall suspend his or her
494	retirement benefits for the remainder of the 12-month limitation
495	period first 12 months of retirement. Any person employed in
496	violation of this subparagraph and any employing agency that
497	which knowingly employs or appoints such person without
498	notifying the division of Retirement to suspend retirement
499	benefits are shall be jointly and severally liable for
500	reimbursement to the retirement trust fund of any benefits paid
501	during the reemployment limitation period. To avoid liability,
502	such employing agency must shall have a written statement from
503	the retiree that he or she is not retired from a state-
504	administered retirement system. Any retirement benefits received
505	by a retired member while reemployed in excess of 780 hours
506	during the first 12 months of retirement must shall be repaid to
507	the Florida Retirement System Trust Fund, and retirement
508	benefits shall remain suspended until repayment is made.
509	Benefits suspended beyond the end of the retired member's 12-
510	month limitation period first 12 months of retirement shall
511	apply toward repayment of benefits received in violation of the
512	780-hour reemployment limitation.
513	6.  The Board of Trustees of the Florida School for the
514	Deaf and the Blind may reemploy a retired member as a substitute
515	teacher, substitute residential instructor, or substitute nurse
516	on a noncontractual basis after he or she has met the definition
517	of termination been retired for 1 calendar month, in accordance
518	with s. 121.021(39). The Board of Trustees of the Florida School
519	for the Deaf and the Blind may reemploy a retired member as
520	instructional personnel, as defined in s. 1012.01(2)(a), on an
521	annual contractual basis after he or she has been retired and
522	met the definition of termination in s. 121.021(39). Any retired
523	member who is reemployed before meeting the definition of
524	termination voids within 1 calendar month after retirement shall
525	void his or her application for retirement benefits. The Board
526	of Trustees of the Florida School for the Deaf and the Blind
527	reemploying such teachers, residential instructors, or nurses is
528	subject to the retirement contribution required by subparagraph
529	7. Reemployment of a retired member as a substitute teacher,
530	substitute residential instructor, or substitute nurse is
531	limited to 780 hours during the first 12 months of his or her
532	retirement. Any retired member reemployed for more than 780
533	hours during the first 12 months of retirement shall give timely
534	notice in writing to the employer and to the division of the
535	date he or she will exceed the limitation. The division shall
536	suspend his or her retirement benefits for the remainder of the
537	first 12 months of retirement. Any person employed in violation
538	of this subparagraph and any employing agency which knowingly
539	employs or appoints such person without notifying the Division
540	of Retirement to suspend retirement benefits shall be jointly
541	and severally liable for reimbursement to the retirement trust
542	fund of any benefits paid during the reemployment limitation
543	period. To avoid liability, such employing agency shall have a
544	written statement from the retiree that he or she is not retired
545	from a state-administered retirement system. Any retirement
546	benefits received by a retired member while reemployed in excess
547	of 780 hours during the first 12 months of retirement shall be
548	repaid to the Retirement System Trust Fund, and his or her
549	retirement benefits shall remain suspended until payment is
550	made. Benefits suspended beyond the end of the retired member's
551	first 12 months of retirement shall apply toward repayment of
552	benefits received in violation of the 780-hour reemployment
553	limitation.
554	7.a.  The employment by an employer of a any retiree or
555	DROP participant of any state-administered retirement system
556	does not affect shall have no effect on the average final
557	compensation or years of creditable service of the retiree or
558	DROP participant.
559	b.  Prior to July 1, 1991, and for initial enrollment as a
560	renewed member through December 31, 2009, upon employment of any
561	person, other than an elected officer as provided in s. 121.053,
562	who is has been retired under a any state-administered
563	retirement program, the employer shall pay retirement
564	contributions in an amount equal to the unfunded actuarial
565	liability portion of the employer contribution which would be
566	required for regular members of the Florida Retirement System.
567	Effective July 1, 1991, contributions shall be made as provided
568	in s. 121.122 for retirees who have with renewed membership or,
569	as provided in subsection (13) for with respect to DROP
570	participants.
571	c.  Any person who is retired under a state-administered
572	retirement program and who is initially reemployed on or after
573	January 1, 2010, may not renew membership in the Florida
574	Retirement System. The employer shall pay retirement
575	contributions in an amount equal to the unfunded actuarial
576	liability portion of the employer contribution that would be
577	required for active members of the Florida Retirement System in
578	addition to the contributions required by s. 121.76.
579	8.a.  Any person who has previously retired and who is
580	holding an elective public office or an appointment to an
581	elective public office initially eligible for the Elected
582	Officers' Class on or after July 1, 1990, through December 31,
583	2009, shall be enrolled in the Florida Retirement System as
584	provided in s. 121.053(1)(c)(b) or, if holding an elective
585	public office that does not qualify for the Elected Officers'
586	Class on or after July 1, 1991, through December 31, 2009, shall
587	be enrolled in the Florida Retirement System as provided in s.
588	121.122, and shall continue to receive retirement benefits as
589	well as compensation for the elected officer's service for as
590	long as he or she remains in elective office. However, any
591	retired member who served in an elective office prior to July 1,
592	1990, suspended his or her retirement benefit, and had his or
593	her Florida Retirement System membership reinstated shall, upon
594	retirement from such office, have his or her retirement benefit
595	recalculated to include the additional service and compensation
596	earned.
597	b.  Any person who has retired and who is holding an
598	elective public office or an appointment to an elective public
599	office initially eligible for the Elected Officers' Class on or
600	after January 1, 2010, shall not be enrolled in the Florida
601	Retirement System as provided in s. 121.053(1)(c) or, if holding
602	an elective public office that does not qualify for the Elected
603	Officers' Class and is initially eligible on or after January 1,
604	2010, shall not be enrolled in the Florida Retirement System as
605	provided in s. 121.122, and shall not continue to receive
606	retirement benefits during the first 12 calendar months after
607	meeting the definition of termination in s. 121.021(39).
608	9.a.  Any person who is holding an elective public office
609	that which is covered by the Florida Retirement System and who
610	is concurrently employed in nonelected covered employment before
611	January 1, 2010, may elect to retire while continuing employment
612	in the elective public office, if provided that he or she
613	terminates shall be required to terminate his or her nonelected
614	covered employment. Any person who exercises this election shall
615	receive his or her retirement benefits in addition to the
616	compensation of the elective office without regard to the time
617	limitations otherwise provided in this subsection. A No person
618	who seeks to exercise the provisions of this subparagraph, as
619	they the same existed prior to May 3, 1984, may not shall be
620	deemed to be retired under those provisions, unless such person
621	is eligible to retire under the provisions of this subparagraph,
622	as amended by chapter 84-11, Laws of Florida.
623	b.  Any person who is holding an elective public office
624	that is covered by the Florida Retirement System and who is
625	concurrently employed in nonelected covered employment on or
626	after January 1, 2010, may not elect to retire while continuing
627	employment in the elective public office. Such person must meet
628	the definition of termination in s. 121.021(39) and is subject
629	to the limitations provided in this section.
630	10.  The limitations of this paragraph apply to
631	reemployment in any capacity with an "employer" as defined in s.
632	121.021(10), irrespective of the category of funds from which
633	the person is compensated.
634	11.  A developmental research school may reemploy a retired
635	member as a substitute or hourly teacher or an education
636	paraprofessional, as defined in s. 1012.01(2), on a
637	noncontractual basis after he or she has been retired and met
638	the definition of termination in s. 121.021(39). A developmental
639	research school may reemploy a retired member as instructional
640	personnel, as defined in s. 1012.01(2)(a), on an annual
641	contractual basis after he or she has been retired and met the
642	definition of termination in s. 121.021(39). Any other retired
643	member who is reemployed within 12 calendar months after
644	retirement voids his or her application for retirement benefits.
645	A developmental research school that reemploys retired teachers
646	and education paraprofessionals are subject to the retirement
647	contribution required by subparagraph 7.
648	12.  A charter school may reemploy a retired member as a
649	substitute or hourly teacher on a noncontractual basis after he
650	or she has been retired and met the definition of termination in
651	s. 121.021(39). A charter school may reemploy a retired member
652	as instructional personnel, as defined in s. 1012.01(2)(a), on
653	an annual contractual basis after he or she has been retired and
654	met the definition of termination in s. 121.021(39). Any other
655	retired member who is reemployed within 12 calendar months after
656	retirement voids his or her application for retirement benefits.
657	A charter school that reemploys such members is subject to the
658	retirement contribution required by subparagraph 7.
659	13.  The reemployment after retirement provisions of this
660	paragraph apply to DROP participants effective upon the end of
661	DROP participation and meeting the definition of termination in
662	s. 121.021(39).
663	11.  An employing agency may reemploy a retired member as a
664	firefighter or paramedic after the retired member has been
665	retired for 1 calendar month, in accordance with s. 121.021(39).
666	Any retired member who is reemployed within 1 calendar month
667	after retirement shall void his or her application for
668	retirement benefits. The employing agency reemploying such
669	firefighter or paramedic is subject to the retired contribution
670	required in subparagraph 8. Reemployment of a retired
671	firefighter or paramedic is limited to no more than 780 hours
672	during the first 12 months of his or her retirement. Any retired
673	member reemployed for more than 780 hours during the first 12
674	months of retirement shall give timely notice in writing to the
675	employer and to the division of the date he or she will exceed
676	the limitation. The division shall suspend his or her retirement
677	benefits for the remainder of the first 12 months of retirement.
678	Any person employed in violation of this subparagraph and any
679	employing agency which knowingly employs or appoints such person
680	without notifying the Division of Retirement to suspend
681	retirement benefits shall be jointly and severally liable for
682	reimbursement to the Retirement System Trust Fund of any
683	benefits paid during the reemployment limitation period. To
684	avoid liability, such employing agency shall have a written
685	statement from the retiree that he or she is not retired from a
686	state-administered retirement system. Any retirement benefits
687	received by a retired member while reemployed in excess of 780
688	hours during the first 12 months of retirement shall be repaid
689	to the Retirement System Trust Fund, and retirement benefits
690	shall remain suspended until repayment is made. Benefits
691	suspended beyond the end of the retired member's first 12 months
692	of retirement shall apply toward repayment of benefits received
693	in violation of the 780-hour reemployment limitation.
694	(c)  The provisions of this subsection apply to retirees,
695	as defined in s. 121.4501(2)(j), of the Public Employee Optional
696	Retirement Program created in part II, subject to the following
697	conditions:
698	1.  Such retirees may not be reemployed with an employer
699	participating in the Florida Retirement System as provided in
700	paragraph (b) until such person has been retired for 12 3
701	calendar months, unless the participant has reached the normal
702	retirement requirements of the defined benefit plan as provided
703	in s. 121.021(29).
704	2.  Such retiree employed in violation of this subsection
705	and any employing agency that knowingly employs or appoints such
706	person shall be jointly and severally liable for reimbursement
707	of any benefits paid to the retirement trust fund from which the
708	benefits were paid, including the Retirement System Trust Fund
709	and the Public Employee Optional Retirement Program Trust Fund,
710	as appropriate. To avoid liability, such employing agency must
711	have a written statement from the retiree that he or she is not
712	retired from a state-administered retirement system.
713	(13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
714	subject to the provisions of this section, the Deferred
715	Retirement Option Program, hereinafter referred to as the DROP,
716	is a program under which an eligible member of the Florida
717	Retirement System may elect to participate, deferring receipt of
718	retirement benefits while continuing employment with his or her
719	Florida Retirement System employer. The deferred monthly
720	benefits shall accrue in the System Trust Fund on behalf of the
721	participant, plus interest compounded monthly, for the specified
722	period of the DROP participation, as provided in paragraph (c).
723	Upon termination of employment as required in s. 121.021(39)(b),
724	the participant shall receive the total DROP benefits and begin
725	to receive the previously determined normal retirement benefits.
726	Participation in the DROP does not guarantee employment for the
727	specified period of DROP. Participation in the DROP by an
728	eligible member beyond the initial 60-month period as authorized
729	in this subsection shall be on an annual contractual basis for
730	all participants.
731	(a)  Eligibility of member to participate in the DROP.--All
732	active Florida Retirement System members in a regularly
733	established position, and all active members of either the
734	Teachers' Retirement System established in chapter 238 or the
735	State and County Officers' and Employees' Retirement System
736	established in chapter 122, which systems are consolidated
737	within the Florida Retirement System under s. 121.011, are
738	eligible to elect participation in the DROP if provided that:
739	1.  The member is not a renewed member of the Florida
740	Retirement System under s. 121.122, or a member or renewed
741	member of the State Community College System Optional Retirement
742	Program under s. 121.051, the Senior Management Service Optional
743	Annuity Program under s. 121.055, or the optional retirement
744	program for the State University System under s. 121.35.
745	2.  Except as provided in subparagraph 6., election to
746	participate is made within 12 months immediately following the
747	date on which the member first reaches normal retirement date,
748	or, for a member who reaches normal retirement date based on
749	service before he or she reaches age 62, or age 55 for Special
750	Risk Class members, election to participate may be deferred to
751	the 12 months immediately following the date the member attains
752	57, or age 52 for Special Risk Class members. For a member who
753	first reached normal retirement date or the deferred eligibility
754	date described above prior to the effective date of this
755	section, election to participate shall be made within 12 months
756	after the effective date of this section. A member who fails to
757	make an election within the such 12-month limitation period
758	forfeits shall forfeit all rights to participate in the DROP.
759	The member shall advise his or her employer and the division in
760	writing of the date on which the DROP begins shall begin. The
761	Such beginning date may be subsequent to the 12-month election
762	period, but must be within the original 60-month participation
763	or, with respect to members who are instructional personnel
764	employed by the Florida School for the Deaf and the Blind and
765	who have received authorization by the Board of Trustees of the
766	Florida School for the Deaf and the Blind to participate in the
767	DROP beyond 60 months, or who are instructional personnel as
768	defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
769	received authorization by the district school superintendent to
770	participate in the DROP beyond 60 months, the 96-month
771	limitation period as provided in subparagraph (b)1. When
772	establishing eligibility of the member to participate in the
773	DROP for the 60-month or, with respect to members who are
774	instructional personnel employed by the Florida School for the
775	Deaf and the Blind and who have received authorization by the
776	Board of Trustees of the Florida School for the Deaf and the
777	Blind to participate in the DROP beyond 60 months, or who are
778	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
779	grades K-12 and who have received authorization by the district
780	school superintendent to participate in the DROP beyond 60
781	months, the 96-month maximum participation period, the member
782	may elect to include or exclude any optional service credit
783	purchased by the member from the total service used to establish
784	the normal retirement date. A member who has with dual normal
785	retirement dates is shall be eligible to elect to participate in
786	DROP within 12 months after attaining normal retirement date in
787	either class.
788	3.  The employer of a member electing to participate in the
789	DROP, or employers if dually employed, shall acknowledge in
790	writing to the division the date the member's participation in
791	the DROP begins and the date the member's employment and DROP
792	participation will terminate.
793	4.  Simultaneous employment of a participant by additional
794	Florida Retirement System employers subsequent to the
795	commencement of participation in the DROP is shall be
796	permissible if provided such employers acknowledge in writing a
797	DROP termination date no later than the participant's existing
798	termination date or the maximum participation 60-month
799	limitation period as provided in subparagraph (b)1.
800	5.  A DROP participant may change employers while
801	participating in the DROP, subject to the following:
802	a.  A change of employment must take place without a break
803	in service so that the member receives salary for each month of
804	continuous DROP participation. If a member receives no salary
805	during a month, DROP participation shall cease unless the
806	employer verifies a continuation of the employment relationship
807	for such participant pursuant to s. 121.021(39)(b).
808	b.  Such participant and new employer shall notify the
809	division of the identity of the new employer on forms required
810	by the division as to the identity of the new employer.
811	c.  The new employer shall acknowledge, in writing, the
812	participant's DROP termination date, which may be extended but
813	not beyond the maximum participation original 60-month or, with
814	respect to members who are instructional personnel employed by
815	the Florida School for the Deaf and the Blind and who have
816	received authorization by the Board of Trustees of the Florida
817	School for the Deaf and the Blind to participate in the DROP
818	beyond 60 months, or who are instructional personnel as defined
819	in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
820	authorization by the district school superintendent to
821	participate in the DROP beyond 60 months, the 96-month period
822	provided in subparagraph (b)1., shall acknowledge liability for
823	any additional retirement contributions and interest required if
824	the participant fails to timely terminate employment, and is
825	shall be subject to the adjustment required in sub-subparagraph
826	(c)5.d.
827	6.  Effective July 1, 2001, for instructional personnel as
828	defined in s. 1012.01(2), election to participate in the DROP
829	may shall be made at any time following the date on which the
830	member first reaches normal retirement date. The member shall
831	advise his or her employer and the division in writing of the
832	date on which DROP begins the Deferred Retirement Option Program
833	shall begin. When establishing eligibility of the member to
834	participate in the DROP for the 60-month or, with respect to
835	members who are instructional personnel employed by the Florida
836	School for the Deaf and the Blind and who have received
837	authorization by the Board of Trustees of the Florida School for
838	the Deaf and the Blind to participate in the DROP beyond 60
839	months, or who are instructional personnel as defined in s.
840	1012.01(2)(a)-(d) in grades K-12 and who have received
841	authorization by the district school superintendent to
842	participate in the DROP beyond 60 months, the 96-month maximum
843	participation period, as provided in subparagraph (b)1., the
844	member may elect to include or exclude any optional service
845	credit purchased by the member from the total service used to
846	establish the normal retirement date. A member who has with dual
847	normal retirement dates is shall be eligible to elect to
848	participate in either class.
849	(b)  Participation in the DROP.--
850	1.a.  An eligible member may elect to participate in the
851	DROP for a period not to exceed a maximum of 60 calendar months
852	or, except as provided in subparagraph b.
853	b.  Members with respect to members who are instructional
854	personnel employed by the Florida School for the Deaf and the
855	Blind and who are authorized have received authorization by the
856	Board of Trustees of the Florida School for the Deaf and the
857	Blind to participate in the DROP beyond 60 months, or who are
858	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
859	grades K-12 and who are authorized have received authorization
860	by the district school superintendent to participate in the DROP
861	beyond 60 calendar months, or who are instructional personnel as
862	defined in s. 1012.01(2)(a)-(d) employed by a developmental
863	research school and who are authorized by the school's director,
864	or if the school has no director, by the school's principal, to
865	participate in DROP beyond the original 60-month period, for up
866	to 36 96 calendar months immediately following the DROP
867	termination date selected for participation in sub-subparagraph
868	a. date on which the member first reaches his or her normal
869	retirement date or the date to which he or she is eligible to
870	defer his or her election to participate as provided in
871	subparagraph (a)2. However, a member who has reached normal
872	retirement date prior to the effective date of the DROP shall be
873	eligible to participate in the DROP for a period of time not to
874	exceed 60 calendar months or, with respect to members who are
875	instructional personnel employed by the Florida School for the
876	Deaf and the Blind and who have received authorization by the
877	Board of Trustees of the Florida School for the Deaf and the
878	Blind to participate in the DROP beyond 60 months, or who are
879	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
880	grades K-12 and who have received authorization by the district
881	school superintendent to participate in the DROP beyond 60
882	calendar months, 96 calendar months immediately following the
883	effective date of the DROP, except a member of the Special Risk
884	Class who has reached normal retirement date prior to the
885	effective date of the DROP and whose total accrued value exceeds
886	75 percent of average final compensation as of his or her
887	effective date of retirement shall be eligible to participate in
888	the DROP for no more than 36 calendar months immediately
889	following the effective date of the DROP.
890	2.  Upon deciding to participate in the DROP, the member
891	shall submit, on forms required by the division:
892	a.  A written election to participate in the DROP;
893	b.  Selection of the DROP participation and termination
894	dates, which satisfy the limitations stated in paragraph (a) and
895	subparagraph 1. The Such termination date must shall be in a
896	binding letter of resignation to with the employer, establishing
897	a deferred termination date. The member may change the
898	termination date within the limitations of subparagraph 1., but
899	only with the written approval of the his or her employer;
900	c.  A properly completed DROP application for service
901	retirement as provided in this section; and
902	d.  Any other information required by the division.
903	3.  The DROP participant is shall be a retiree under the
904	Florida Retirement System for all purposes, except for paragraph
905	(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
906	and 121.122. DROP participation is final and cannot be canceled
907	by the participant after the first payment is credited during
908	the DROP participation period. However, participation in the
909	DROP does not alter the participant's employment status and the
910	member is such employee shall not be deemed retired from
911	employment until his or her deferred resignation is effective
912	and termination occurs as provided in s. 121.021(39).
913	4.  Elected officers are shall be eligible to participate
914	in the DROP subject to the following:
915	a.  An elected officer who reaches normal retirement date
916	during a term of office may defer the election to participate in
917	the DROP until the next succeeding term in that office. An Such
918	elected officer who exercises this option may participate in the
919	DROP for up to 60 calendar months or a period of no longer than
920	the such succeeding term of office, whichever is less.
921	b.  An elected or a nonelected participant may run for a
922	term of office while participating in DROP and, if elected,
923	extend the DROP termination date accordingly, except, however,
924	if such additional term of office exceeds the 60-month
925	limitation established in subparagraph 1., and the officer does
926	not resign from office within such 60-month limitation, the
927	retirement and the participant's DROP is shall be null and void
928	as provided in sub-subparagraph (c)5.d.
929	c.(I)  For DROP participation ending before January 1,
930	2010, an elected officer who is dually employed and elects to
931	participate in DROP must shall be required to satisfy the
932	definition of termination within the original 60-month period or
933	maximum participation, with respect to members who are
934	instructional personnel employed by the Florida School for the
935	Deaf and the Blind and who have received authorization by the
936	Board of Trustees of the Florida School for the Deaf and the
937	Blind to participate in the DROP beyond 60 months, or who are
938	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
939	grades K-12 and who have received authorization by the district
940	school superintendent to participate in the DROP beyond 60
941	months, the 96-month limitation period as provided in
942	subparagraph 1. for the nonelected position and may continue
943	employment as an elected officer as provided in s. 121.053. The
944	elected officer shall will be enrolled as a renewed member in
945	the Elected Officers' Class or the Regular Class, as provided in
946	ss. 121.053 and 121.122, on the first day of the month after
947	termination of employment in the nonelected position and
948	termination of DROP. Distribution of the DROP benefits shall be
949	made as provided in paragraph (c).
950	(II)  For DROP participation ending on or after January 1,
951	2010, an elected officer who is dually employed and elects to
952	participate in DROP must satisfy the definition of termination
953	in s. 121.021(39) within the original 60-month period or maximum
954	period as provided in subparagraph 1.
955	(c)  Benefits payable under the DROP.--
956	1.  Effective on with the date of DROP participation, the
957	member's initial normal monthly benefit, including creditable
958	service, optional form of payment, and average final
959	compensation, and the effective date of retirement are shall be
960	fixed. The beneficiary established under the Florida Retirement
961	System shall be the beneficiary eligible to receive any DROP
962	benefits payable if the DROP participant dies prior to the
963	completion of the period of DROP participation. If In the event
964	a joint annuitant predeceases the member, the member may name a
965	beneficiary to receive accumulated DROP benefits payable. The
966	Such retirement benefit, the annual cost of living adjustments
967	provided in s. 121.101, and interest shall accrue monthly in the
968	System Trust Fund. The Such interest shall accrue at an
969	effective annual rate of 6.5 percent compounded monthly, on the
970	prior month's accumulated ending balance, up to the month of
971	termination or death.
972	2.  Each employee who elects to participate in the DROP may
973	shall be allowed to elect to receive a lump-sum payment for
974	accrued annual leave earned in accordance with agency policy
975	upon beginning participation in the DROP. The Such accumulated
976	leave payment certified to the division upon commencement of
977	DROP shall be included in the calculation of the member's
978	average final compensation. The employee electing the such lump-
979	sum payment is upon beginning participation in DROP will not be
980	eligible to receive a second lump-sum payment upon termination,
981	except to the extent the employee has earned additional annual
982	leave which combined with the original payment does not exceed
983	the maximum lump-sum payment allowed by the employing agency's
984	policy or rules. An Such early lump-sum payment shall be based
985	on the hourly wage of the employee at the time he or she begins
986	participation in the DROP. If the member elects to wait and
987	receive such lump-sum payment upon termination of DROP and
988	termination of employment with the employer, any accumulated
989	leave payment made at that time may not cannot be included in
990	the member's retirement benefit, which was determined and fixed
991	by law when the employee elected to participate in the DROP.
992	3.  The effective date of DROP participation and the
993	effective date of retirement of a DROP participant shall be the
994	first day of the month selected by the member to begin
995	participation in the DROP, provided such date is properly
996	established, with the written confirmation of the employer, and
997	the approval of the division, on forms required by the division.
998	4.  Normal retirement benefits and any interest thereon
999	shall continue to accrue in the DROP until the established
1000	termination date of the DROP, or until the participant
1001	terminates employment or dies prior to such date. Although
1002	individual DROP accounts shall not be established, a separate
1003	accounting of each participant's accrued benefits under the DROP
1004	shall be calculated and provided to participants.
1005	5.  At the conclusion of the participant's DROP, the
1006	division shall distribute the participant's total accumulated
1007	DROP benefits, subject to the following provisions:
1008	a.  The division shall receive verification by the
1009	participant's employer or employers that the such participant
1010	has terminated employment as provided in s. 121.021(39)(b).
1011	b.  The terminated DROP participant or, if deceased, the
1012	such participant's named beneficiary, shall elect on forms
1013	provided by the division to receive payment of the DROP benefits
1014	in accordance with one of the options listed below. If For a
1015	participant or beneficiary who fails to elect a method of
1016	payment within 60 days of termination of the DROP, the division
1017	shall will pay a lump sum as provided in sub-sub-subparagraph
1018	(I).
1019	(I)  Lump sum.--All accrued DROP benefits, plus interest,
1020	less withholding taxes remitted to the Internal Revenue Service,
1021	shall be paid to the DROP participant or surviving beneficiary.
1022	(II)  Direct rollover.--All accrued DROP benefits, plus
1023	interest, shall be paid from the DROP directly to the custodian
1024	of an eligible retirement plan as defined in s. 402(c)(8)(B) of
1025	the Internal Revenue Code. However, in the case of an eligible
1026	rollover distribution to the surviving spouse of a deceased
1027	participant, an eligible retirement plan is an individual
1028	retirement account or an individual retirement annuity as
1029	described in s. 402(c)(9) of the Internal Revenue Code.
1030	(III)  Partial lump sum.--A portion of the accrued DROP
1031	benefits shall be paid to the DROP participant or surviving
1032	spouse, less withholding taxes remitted to the Internal Revenue
1033	Service, and the remaining DROP benefits shall be transferred
1034	directly to the custodian of an eligible retirement plan as
1035	defined in s. 402(c)(8)(B) of the Internal Revenue Code.
1036	However, in the case of an eligible rollover distribution to the
1037	surviving spouse of a deceased participant, an eligible
1038	retirement plan is an individual retirement account or an
1039	individual retirement annuity as described in s. 402(c)(9) of
1040	the Internal Revenue Code. The proportions shall be specified by
1041	the DROP participant or surviving beneficiary.
1042	c.  The form of payment selected by the DROP participant or
1043	surviving beneficiary must comply complies with the minimum
1044	distribution requirements of the Internal Revenue Code.
1045	d.  A DROP participant who fails to terminate employment as
1046	defined in s. 121.021(39)(b) shall be deemed not to be retired,
1047	and the DROP election is shall be null and void. Florida
1048	Retirement System membership shall be reestablished
1049	retroactively to the date of the commencement of the DROP, and
1050	each employer with whom the participant continues employment
1051	must shall be required to pay to the Florida Retirement System
1052	Trust Fund the difference between the DROP contributions paid in
1053	paragraph (i) and the contributions required for the applicable
1054	Florida Retirement System class of membership during the period
1055	the member participated in the DROP, plus 6.5 percent interest
1056	compounded annually.
1057	6.  The retirement benefits of any DROP participant who
1058	meets the definition of termination in s. 121.021(39)(b), but is
1059	in violation of the reemployment provisions as provided in
1060	subsection (9), shall be suspended during those months in which
1061	the member is in violation. Any member employed in violation of
1062	this subparagraph and any employing agency that knowingly
1063	employs or appoints such member without notifying the Division
1064	of Retirement to suspend retirement benefits are jointly and
1065	severally liable for any benefits paid during the reemployment
1066	limitation period. To avoid liability, the employing agency must
1067	have a written statement from the retiree that he or she is not
1068	retired from a state-administered retirement system. Any
1069	retirement benefits received by a retired member while employed
1070	in violation of the reemployment limitations during the first 12
1071	months after meeting termination must be repaid to the Florida
1072	Retirement System Trust Fund, and his or her retirement benefits
1073	shall remain suspended until payment is made. Benefits suspended
1074	beyond the end of the retired member's first 12 calendar months
1075	after meeting the definition of termination in s. 121.021(39)(b)
1076	shall apply toward repayment of benefits received in violation
1077	of the reemployment limitations.
1078	7.6.  The accrued benefits of any DROP participant, and any
1079	contributions accumulated under the such program, are shall not
1080	be subject to assignment, execution, attachment, or to any legal
1081	process whatsoever, except for qualified domestic relations
1082	orders by a court of competent jurisdiction, income deduction
1083	orders as provided in s. 61.1301, and federal income tax levies.
1084	8.7.  DROP participants are shall not be eligible for
1085	disability retirement benefits as provided in subsection (4).
1086	(d)  Death benefits under the DROP.--
1087	1.  Upon the death of a DROP participant, the named
1088	beneficiary shall be entitled to apply for and receive the
1089	accrued benefits in the DROP as provided in sub-subparagraph
1090	(c)5.b.
1091	2.  The normal retirement benefit accrued to the DROP
1092	during the month of a participant's death shall be the final
1093	monthly benefit credited for such DROP participant.
1094	3.  Eligibility to participate in the DROP terminates upon
1095	death of the participant. If the participant dies on or after
1096	the effective date of enrollment in the DROP, but prior to the
1097	first monthly benefit being credited to the DROP, Florida
1098	Retirement System benefits shall be paid in accordance with
1099	subparagraph (7)(c)1. or subparagraph 2.
1100	4.  A DROP participants' survivors shall not be eligible to
1101	receive Florida Retirement System death benefits as provided in
1102	paragraph (7)(d).
1103	(e)  Cost-of-living adjustment.--On each July 1, the
1104	participants' normal retirement benefit shall be increased as
1105	provided in s. 121.101.
1106	(f)  Retiree health insurance subsidy.--DROP participants
1107	are not eligible to apply for the retiree health insurance
1108	subsidy payments as provided in s. 112.363 until such
1109	participants have terminated employment and participation in the
1110	DROP.
1111	(g)  Renewed membership.--DROP participants must meet the
1112	definition of termination in s. 121.021(39)(b) and must meet
1113	eligibility requirements shall not be eligible for renewed
1114	membership in the Florida Retirement System under ss. 121.053
1115	and 121.122 until termination of employment is effectuated as
1116	provided in s. 121.021(39)(b).
1117	(h)  Employment limitation after DROP participation.--Upon
1118	satisfying the definition of termination of employment as
1119	provided in s. 121.021(39)(b), DROP participants shall be
1120	subject to such reemployment limitations as other retirees.
1121	Reemployment restrictions applicable to retirees as provided in
1122	subsection (9) shall not apply to DROP participants until their
1123	employment and participation in the DROP are terminated.
1124	(i)  Contributions.--
1125	1.  All employers paying the salary of a DROP participant
1126	filling a regularly established position shall contribute 8.0
1127	percent of such participant's gross compensation for the period
1128	of July 1, 2002, through June 30, 2003, and 11.56 percent of
1129	such compensation thereafter, which shall constitute the entire
1130	employer DROP contribution with respect to such participant.
1131	Such contributions, payable to the System Trust Fund in the same
1132	manner as required in s. 121.071, shall be made as appropriate
1133	for each pay period and are in addition to contributions
1134	required for social security and the Retiree Health Insurance
1135	Subsidy Trust Fund. Such employer, social security, and health
1136	insurance subsidy contributions are not included in the DROP.
1137	2.  The employer shall, in addition to subparagraph 1.,
1138	also withhold one-half of the entire social security
1139	contribution required for the participant. Contributions for
1140	social security by each participant and each employer, in the
1141	amount required for social security coverage as now or hereafter
1142	provided by the federal Social Security Act, shall be in
1143	addition to contributions specified in subparagraph 1.
1144	3.  All employers paying the salary of a DROP participant
1145	filling a regularly established position shall contribute the
1146	percent of such participant's gross compensation required in s.
1147	121.071(4), which shall constitute the employer's health
1148	insurance subsidy contribution with respect to such participant.
1149	Such contributions shall be deposited by the administrator in
1150	the Retiree Health Insurance Subsidy Trust Fund.
1151	(j)  Forfeiture of retirement benefits.--Nothing in this
1152	section shall be construed to remove DROP participants from the
1153	scope of s. 8(d), Art. II of the State Constitution, s.
1154	112.3173, and paragraph (5)(f). DROP participants who commit a
1155	specified felony offense while employed will be subject to
1156	forfeiture of all retirement benefits, including DROP benefits,
1157	pursuant to those provisions of law.
1158	(k)  Administration of program.--The division shall make
1159	such rules as are necessary for the effective and efficient
1160	administration of this subsection. The division shall not be
1161	required to advise members of the federal tax consequences of an
1162	election related to the DROP but may advise members to seek
1163	independent advice.
1164	(14)  PAYMENT OF BENEFITS.--This subsection applies to the
1165	payment of benefits to a payee (retiree or beneficiary) under
1166	the Florida Retirement System:
1167	(a)  Federal income tax shall be withheld in accordance
1168	with federal law, unless the payee elects otherwise on Form W-
1169	4P. The division shall prepare and distribute to each recipient
1170	of monthly retirement benefits an appropriate income tax form
1171	that reflects the recipient's income and federal income tax
1172	withheld for the calendar year just ended.
1173	(b)  Subject to approval by the division in accordance with
1174	rule 60S-4.015, Florida Administrative Code, a payee receiving
1175	retirement benefits under the Florida Retirement system may also
1176	have the following payments deducted from his or her monthly
1177	benefit:
1178	1.  Premiums for life and health-related insurance policies
1179	from approved companies.
1180	2.  Life insurance premiums for the State Group Life
1181	Insurance Plan, if authorized in writing by the payee and by the
1182	department of Management Services.
1183	3.  Repayment of overpayments from the Florida Retirement
1184	System Trust Fund, the State Employees' Health Insurance Trust
1185	Fund, or the State Employees' Life Insurance Trust Fund, upon
1186	notification of the payee.
1187	4.  Payments to an alternate payee for alimony or, child
1188	support pursuant to an income deduction order under s. 61.1301,
1189	or division of marital assets pursuant to a qualified domestic
1190	relations order under s. 222.21 or an income deduction order
1191	under s. 61.1301.
1192	5.  Payments to the Internal Revenue Service for federal
1193	income tax levies, upon notification of the division by the
1194	Internal Revenue Service.
1195	(c)  A payee must shall notify the division of any change
1196	in his or her address. The division may suspend benefit payments
1197	to a payee if correspondence sent to the payee's mailing address
1198	is returned due to an incorrect address. Benefit payments shall
1199	be resumed upon notification to the division of the payee's new
1200	address.
1201	(d)  A payee whose retirement benefits are reduced by the
1202	application of maximum benefit limits under s. 415(b) of the
1203	Internal Revenue Code, as specified in s. 121.30(5), shall have
1204	the portion of his or her calculated benefit in the Florida
1205	Retirement System defined benefit plan which exceeds such
1206	federal limitation paid through the Florida Retirement System
1207	Preservation of Benefits Plan, as provided in s. 121.1001.
1208	(e)  The division may issue retirement benefits payable for
1209	division of marital assets pursuant to a qualified domestic
1210	relations order directly to the alternate payee, any court order
1211	to the contrary notwithstanding, in order to meet Internal
1212	Revenue Code requirements.
1213	(f)(e)  A No benefit may not be reduced for the purpose of
1214	preserving the member's eligibility for a federal program.
1215	(g)(f)  The division shall adopt rules establishing
1216	procedures for determining that the persons to whom benefits are
1217	being paid are still living. The division shall suspend the
1218	benefits being paid to any payee if when it is unable to contact
1219	such payee and to confirm that he or she is still living.
1220	Section 5.  Sections 121.093 and 121.094, Florida Statutes,
1221	are repealed.
1222	Section 6.  Section 121.122, Florida Statutes, is amended
1223	to read:
1224	121.122  Renewed membership in system.--
1225	(1)  Any retiree of a state-administered retirement system
1226	who is initially reemployed on or after January 1, 2010, shall
1227	not be eligible for renewed membership.
1228	(2)  Except as provided in s. 121.053, effective July 1,
1229	1991, through December 31, 2009, any retiree of a state-
1230	administered retirement system who is initially reemployed
1231	employed in a regularly established position with a covered
1232	employer shall be enrolled as a compulsory member of the Regular
1233	Class of the Florida Retirement System or, effective July 1,
1234	1997, through December 31, 2009, any retiree of a state-
1235	administered retirement system who is initially reemployed
1236	employed in a position included in the Senior Management Service
1237	Class shall be enrolled as a compulsory member of the Senior
1238	Management Service Class of the Florida Retirement System as
1239	provided in s. 121.055, and shall be entitled to receive an
1240	additional retirement benefit, subject to the following
1241	conditions:
1242	(1)(a)  Such member shall resatisfy the age and service
1243	requirements as provided in this chapter for initial membership
1244	under the system, unless such member elects to participate in
1245	the Senior Management Service Optional Annuity Program in lieu
1246	of the Senior Management Service Class, as provided in s.
1247	121.055(6).
1248	(b)  Such member shall not be entitled to disability
1249	benefits as provided in s. 121.091(4).
1250	(c)  Such member must meet the reemployment after
1251	retirement limitations as provided in s. 121.091(9), as
1252	applicable.
1253	(3)(2)  Upon renewed membership or reemployment of a
1254	retiree, the employer of such member shall pay the applicable
1255	employer contributions as required by ss. 121.71, 121.74,
1256	121.76, and 112.363 121.055(3) and 121.071(1)(a) and (4).
1257	(4)(3)  The retiree of a state-administered retirement
1258	system who is initially reemployed before January 1, 2010, Such
1259	member shall be entitled to purchase additional retirement
1260	credit in the Regular Class or the Senior Management Service
1261	Class, as applicable, for any postretirement service performed
1262	in a regularly established position as follows:
1263	(a)  For regular class service prior to July 1, 1991, by
1264	paying the Regular Class applicable employee and employer
1265	contributions for the period being claimed, plus 4 percent
1266	interest compounded annually from first year of service claimed
1267	until July 1, 1975, and 6.5 percent interest compounded
1268	thereafter, until full payment is made to the Florida Retirement
1269	System Trust Fund; or
1270	(b)  For Senior Management Service Class prior to June 1,
1271	1997, as provided in s. 121.055(1)(j).
1272
1273	The contribution for postretirement service between July 1,
1274	1985, and July 1, 1991, for which the reemployed retiree
1275	contribution was paid, shall be the difference between such
1276	contribution and the total applicable contribution for the
1277	period being claimed, plus interest. The employer of such member
1278	may pay the applicable employer contribution in lieu of the
1279	member. If a member does not wish to claim credit for all of the
1280	postretirement service for which he or she is eligible, the
1281	service the member claims must be the most recent service.
1282	(5)(4)  No creditable service for which credit was
1283	received, or which remained unclaimed, at retirement may be
1284	claimed or applied toward service credit earned following
1285	renewed membership. However, for retirees initially reemployed
1286	before January 1, 2010, service earned as an elected officer
1287	with renewed membership in the Elected Officers' Class may be
1288	used in conjunction with creditable service earned under this
1289	section, provided the applicable vesting requirements and other
1290	existing statutory conditions required by this chapter are met.
1291	(6)(5)  Notwithstanding any other limitations provided in
1292	this section, a participant of the State University System
1293	Optional Retirement Program or the Senior Management Service
1294	Optional Annuity Program who terminated employment and received
1295	a distribution commenced receiving an annuity under the
1296	provisions of the optional program, who initially renews
1297	membership before January 1, 2010, in the Regular Class as
1298	required by this section upon reemployment after retirement, and
1299	who had previously earned creditable Florida Retirement System
1300	service that was not included in any retirement benefit may
1301	include such previous service toward vesting and service credit
1302	in the second career benefit provided under renewed membership.
1303	(7)(6)  Any renewed member who is not receiving the maximum
1304	health insurance subsidy provided in s. 112.363 shall be
1305	entitled to earn additional credit toward the maximum health
1306	insurance subsidy. Any additional subsidy due because of such
1307	additional credit shall be received only at the time of payment
1308	of the second career retirement benefit. In no case shall the
1309	total health insurance subsidy received by a retiree receiving
1310	benefits from initial and renewed membership exceed the maximum
1311	allowed in s. 112.363.
1312	Section 7.  Paragraph (e) of subsection (5) of section
1313	121.35, Florida Statutes, is amended to read:
1314	121.35  Optional retirement program for the State
1315	University System.--
1316	(5)  BENEFITS.--
1317	(e)  A participant who chooses to receive his or her
1318	benefits upon termination of employment as defined in s.
1319	121.021(39) shall have responsibility to notify the provider
1320	company of the date on which he or she wishes benefits funded by
1321	employer contributions to begin. Benefits may be deferred until
1322	such time as the participant chooses to make such application.
1323	Section 8.  Section 121.45, Florida Statutes, is repealed.
1324	Section 9.  Paragraph (f) of subsection (2) of section
1325	121.4501, Florida Statutes, is amended to read:
1326	121.4501  Public Employee Optional Retirement Program.--
1327	(2)  DEFINITIONS.--As used in this part, the term:
1328	(f)  "Eligible employee" means an officer or employee, as
1329	defined in s. 121.021(11), who:
1330	1.  Is a member of, or is eligible for membership in, the
1331	Florida Retirement System, including any renewed member of the
1332	Florida Retirement System initially enrolled before January 1,
1333	2010; or
1334	2.  Participates in, or is eligible to participate in, the
1335	Senior Management Service Optional Annuity Program as
1336	established under s. 121.055(6), the State Community College
1337	System Optional Retirement Program as established under s.
1338	121.051(2)(c), or the State University System Optional
1339	Retirement Program established under s. 121.35.
1340
1341	The term does not include any member participating in the
1342	Deferred Retirement Option Program established under s.
1343	121.091(13), a retiree of a state-administered retirement system
1344	initially reemployed on or after January 1, 2010, or a mandatory
1345	participant of the State University System Optional Retirement
1346	Program established under s. 121.35.
1347	Section 10.  Paragraph (b) of subsection (1) of section
1348	121.591, Florida Statutes, is amended to read:
1349	121.591  Benefits payable under the Public Employee
1350	Optional Retirement Program of the Florida Retirement
1351	System.--Benefits may not be paid under this section unless the
1352	member has terminated employment as provided in s.
1353	121.021(39)(a) or is deceased and a proper application has been
1354	filed in the manner prescribed by the state board or the
1355	department. The state board or department, as appropriate, may
1356	cancel an application for retirement benefits when the member or
1357	beneficiary fails to timely provide the information and
1358	documents required by this chapter and the rules of the state
1359	board and department. In accordance with their respective
1360	responsibilities as provided herein, the State Board of
1361	Administration and the Department of Management Services shall
1362	adopt rules establishing procedures for application for
1363	retirement benefits and for the cancellation of such application
1364	when the required information or documents are not received. The
1365	State Board of Administration and the Department of Management
1366	Services, as appropriate, are authorized to cash out a de
1367	minimis account of a participant who has been terminated from
1368	Florida Retirement System covered employment for a minimum of 6
1369	calendar months. A de minimis account is an account containing
1370	employer contributions and accumulated earnings of not more than
1371	$5,000 made under the provisions of this chapter. Such cash-out
1372	must either be a complete lump-sum liquidation of the account
1373	balance, subject to the provisions of the Internal Revenue Code,
1374	or a lump-sum direct rollover distribution paid directly to the
1375	custodian of an eligible retirement plan, as defined by the
1376	Internal Revenue Code, on behalf of the participant. If any
1377	financial instrument issued for the payment of retirement
1378	benefits under this section is not presented for payment within
1379	180 days after the last day of the month in which it was
1380	originally issued, the third-party administrator or other duly
1381	authorized agent of the State Board of Administration shall
1382	cancel the instrument and credit the amount of the instrument to
1383	the suspense account of the Public Employee Optional Retirement
1384	Program Trust Fund authorized under s. 121.4501(6). Any such
1385	amounts transferred to the suspense account are payable upon a
1386	proper application, not to include earnings thereon, as provided
1387	in this section, within 10 years after the last day of the month
1388	in which the instrument was originally issued, after which time
1389	such amounts and any earnings thereon shall be forfeited. Any
1390	such forfeited amounts are assets of the Public Employee
1391	Optional Retirement Program Trust Fund and are not subject to
1392	the provisions of chapter 717.
1393	(1)  NORMAL BENEFITS.--Under the Public Employee Optional
1394	Retirement Program:
1395	(b)  If a participant elects to receive his or her benefits
1396	upon termination of employment as defined in s. 121.021(39), the
1397	participant must submit a written application or an equivalent
1398	form to the third-party administrator indicating his or her
1399	preferred distribution date and selecting an authorized method
1400	of distribution as provided in paragraph (c). The participant
1401	may defer receipt of benefits until he or she chooses to make
1402	such application, subject to federal requirements.
1403	Section 11.  This act shall take effect January 1, 2010.

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