CS/CS/HB 479

1
A bill to be entitled
2An act relating to retirement; amending s. 121.021, F.S.;
3redefining the terms "employer," "officer or employee,"
4"past service," "normal retirement date," "termination,"
5"regularly established position," and "temporary
6position"; defining the terms "state board" and
7"trustees"; amending s. 121.031, F.S.; requiring
8promotional materials that refer to the Florida Retirement
9System to include a disclaimer unless approval is obtained
10from the Department of Management Services or the State
11Board of Administration; amending s. 121.051, F.S.;
12conforming a cross-reference; clarifying when a State
13Community College System Optional Retirement Program
14participant is considered a retiree; revising provisions
15relating to participation in the Florida Retirement System
16by certain employers; excluding the participation of
17certain entities under a lease agreement; amending s.
18121.052, F.S.; revising membership criteria for members of
19the Elected Officers' Class; revising the dates for when a
20governing body of a municipality or special district may
21elect to designate its elected positions for inclusion in
22the Elected Officers' Class; amending s. 121.053, F.S.;
23revising provisions relating to participation in the
24Elected Officers' Class for retired members; amending s.
25121.055, F.S.; revising provisions relating to
26participation in the Senior Management Service Class;
27revising benefit payment procedures for the Senior
28Management Service Optional Annuity Program; clarifying
29when a participant is considered retired; amending s.
30121.071, F.S.; providing an additional mechanism for the
31payment of employee contributions to the system; amending
32s. 121.081, F.S.; providing for receipt of credit for past
33or prior service by charter school and charter technical
34career center employees; prohibiting a member from
35receiving credit for service covered and reported by both
36a public employer and a private employer; amending s.
37121.091, F.S.; revising and clarifying provisions relating
38to retirement benefits; deleting a restriction on the
39reemployment of certain personnel by the Florida School
40for the Deaf and the Blind; authorizing developmental
41research schools and charter schools to reemploy certain
42retired members under specified conditions; revising
43limitations on the payment of retirement benefits for
44certain retired persons who are reemployed by an employer
45participating in a state-administered retirement program;
46prohibiting certain persons holding public office from
47enrolling in the Florida Retirement System; deleting a
48provision authorizing an employing agency to reemploy a
49retired member as a firefighter or paramedic after a
50specified period; providing applicability; revising
51provisions relating to reemployment of retirees of the
52Public Employee Optional Retirement Program; providing
53that certain members who delay DROP participation lose a
54month of DROP participation for each month delayed;
55clarifying that DROP participation cannot be canceled;
56clarifying maximum DROP participation; providing for the
57suspension of DROP benefits to a participant who is
58reemployed; deleting obsolete provisions; revising
59employer contribution requirements; authorizing the
60Division of Retirement to issue benefits pursuant to a
61qualified domestic relations order directly to the
62alternate payee; amending s. 121.1115, F.S.; revising
63provisions relating to receiving retirement credit for
64out-of-state service; providing that a member is not
65eligible for and may not receive a benefit based on such
66service; amending s. 121.1122, F.S.; revising provisions
67relating to receiving retirement credit for in-state
68service; providing that certain members may not be
69eligible to purchase service credit; amending s. 121.122,
70F.S.; providing that certain retirees initially reemployed
71on or after a specified date are ineligible for renewed
72membership in the system; revising conditions under which
73a retiree is entitled to certain additional retirement
74benefits; amending s. 121.136, F.S.; revising provisions
75relating to the annual statement of benefits provided to
76certain active members of the system; amending s.
77121.1905, F.S.; deleting a provision describing the
78mission of the Division of Retirement; amending s. 121.23,
79F.S.; requiring the State Retirement Commission to use
80certain requirements used by the Secretary of Management
81Services before approving a disability retirement benefit;
82amending s. 121.24, F.S.; requiring a quorum of three
83members for all appeal hearings held by the commission;
84amending s. 121.35, F.S.; revising a compulsory membership
85exception for certain members failing to elect membership
86in the optional retirement program; providing a cross-
87reference; defining the term "retiree" for purposes of the
88State University System Optional Retirement Program;
89amending s. 121.4501, F.S.; revising the definition of
90"eligible employee" for purposes of the Public Employee
91Optional Retirement Program; amending s. 121.591, F.S.;
92providing a cross-reference; amending s. 1012.33, F.S.;
93deleting a provision preventing persons who have retired
94from the public school system from renewing membership in
95the Florida Retirement System or Teachers' Retirement
96System upon reemployment by the school system; repealing
97s. 121.093, F.S., relating to instructional personnel
98reemployment after retirement from a developmental
99research school or the Florida School for the Deaf and the
100Blind; repealing s. 121.094, F.S., relating to
101instructional personnel reemployment after retirement from
102a charter school; repealing s. 121.45, F.S., relating to
103interstate compacts relating to pension portability;
104providing a declaration of important state interest;
105providing an effective date.
106
107Be It Enacted by the Legislature of the State of Florida:
108
109     Section 1.  Subsections (10), (11), (18), (29), (39), (52),
110and (53) of section 121.021, Florida Statutes, are amended, and
111subsections (63) and (64) are added to that section, to read:
112     121.021  Definitions.--The following words and phrases as
113used in this chapter have the respective meanings set forth
114unless a different meaning is plainly required by the context:
115     (10)  "Employer" means any agency, branch, department,
116institution, university, institution of higher education, or
117board of the state, or any county agency, branch, department,
118board, district school board, city, metropolitan planning
119organization, or special district of the state, or any city of
120the state which participates in the system for the benefit of
121certain of its employees, or a charter school or charter
122technical career center that participates as provided in s.
123121.051(2)(d). Employers are not agents of the department, the
124state board, or the Division of Retirement, and the department,
125the state board, and the division are not responsible for
126erroneous information provided by representatives of employers.
127     (11)  "Officer or employee" means any person receiving
128salary payments for work performed in a regularly established
129position and, if employed by a city, a metropolitan planning
130organization, or a special district, employed in a covered
131group. The term does not apply to state employees covered by a
132leasing agreement under s. 110.191, other public employees
133covered by a leasing agreement, or a co-employer relationship.
134     (18)  "Past service" of any member, as provided in s.
135121.081(1), means the number of years and complete months and
136any fractional part of a month, recognized and credited by an
137employer and approved by the administrator, during which the
138member was in the active employ of a governmental an employer
139and for which the employee is not entitled to a benefit prior to
140his or her date of participation.
141     (29)  "Normal retirement date" means the first day of any
142month following the date a member attains normal retirement age
143and is vested, which is determined as follows one of the
144following statuses:
145     (a)  If a Regular Class member, a Senior Management Service
146Class member, or an Elected Officers' Class the member:
147     1.  The first day of the month the member completes 6 or
148more years of creditable service and attains age 62; or
149     2.  The first day of the month following the date the
150member completes 30 years of creditable service, regardless of
151age, which may include a maximum of 4 years of military service
152credit as long as such credit is not claimed under any other
153system.
154     (b)  If a Special Risk Class member, the member:
155     1.  The first day of the month the member completes 6 or
156more years of creditable service in the Special Risk Class and
157attains age 55;
158     2.  The first day of the month following the date the
159member completes 25 years of creditable service in the Special
160Risk Class, regardless of age; or
161     3.  The first day of the month following the date the
162member completes 25 years of creditable service and attains age
16352, which service may include a maximum of 4 years of military
164service credit as long as such credit is not claimed under any
165other system and the remaining years are in the Special Risk
166Class.
167     (c)  If a Senior Management Service Class member, the
168member:
169     1.  Completes 6 years of creditable service in the Senior
170Management Service Class and attains age 62; or
171     2.  Completes 30 years of any creditable service,
172regardless of age, which may include a maximum of 4 years of
173military service credit as long as such credit is not claimed
174under any other system.
175     (d)  If an Elected Officers' Class member, the member:
176     1.  Completes 6 years of creditable service in the Elected
177Officers' Class and attains age 62; or
178     2.  Completes 30 years of any creditable service,
179regardless of age, which may include a maximum of 4 years of
180military service credit as long as such credit is not claimed
181under any other system.
182
183"Normal retirement age" is attained on the "normal retirement
184date."
185     (39)(a)  "Termination" occurs, except as provided in
186paragraph (b), when:
187     1.  For retirements effective before January 1, 2010, a
188member ceases all employment relationships with employers under
189this system, as defined in subsection (10), but in the event a
190member should be employed by any such employer within the next
191calendar month, termination shall be deemed not to have
192occurred. A leave of absence shall constitute a continuation of
193the employment relationship, except that a leave of absence
194without pay due to disability may constitute termination for a
195member, if such member makes application for and is approved for
196disability retirement in accordance with s. 121.091(4). The
197department or state board may require other evidence of
198termination as it deems necessary.
199     2.  For retirements effective on or after January 1, 2010,
200a member ceases all employment relationships with employers
201under this system, as defined in subsection (10), but in the
202event a member should be employed by any such employer within
203the next 6 calendar months, termination shall be deemed not to
204have occurred. A leave of absence shall constitute a
205continuation of the employment relationship, except that a leave
206of absence without pay due to disability may constitute
207termination for a member, if such member makes application for
208and is approved for disability retirement in accordance with s.
209121.091(4). The department or state board may require other
210evidence of termination as it deems necessary.
211     (b)  "Termination" for a member electing to participate
212under the Deferred Retirement Option Program (DROP) occurs when
213the Deferred Retirement Option Program participant ceases all
214employment relationships with employers under this system in
215accordance with s. 121.091(13), but:
216     1.  For DROP termination dates occurring before January 1,
2172010, in the event the DROP Deferred Retirement Option Program
218participant should be employed by any such employer within the
219next calendar month, termination will be deemed not to have
220occurred, except as provided in s. 121.091(13)(b)4.c. A leave of
221absence shall constitute a continuation of the employment
222relationship.
223     2.  For DROP termination dates occurring on or after
224January 1, 2010, in the event the DROP participant should be
225employed by any such employer within the next 6 calendar months,
226termination will be deemed not to have occurred, except as
227provided in s. 121.091(13)(b)4.c. A leave of absence shall
228constitute a continuation of the employment relationship.
229     (52)  "Regularly established position" is defined as
230follows:
231     (a)  With respect to employment for In a state employer
232agency, the term means a position that which is authorized and
233established pursuant to law and is compensated from a salaries
234and benefits appropriation pursuant to s. 216.011(1)(mm)(dd), or
235an established position that which is authorized pursuant to s.
236216.262(1)(a) and (b) and is compensated from a salaries account
237as provided in s. 216.011(1)(nn) by rule.
238     (b)  With respect to employment for In a local employer
239agency (district school board, county agency, community college,
240city, metropolitan planning organization, charter school,
241charter technical career center, or special district), the term
242means a regularly established position that which will be in
243existence for a period beyond 6 consecutive months, except as
244provided by rule.
245     (53)  "Temporary position" is defined as follows:
246     (a)  With respect to employment for In a state employer
247agency, the term means a an employment position that which is
248compensated from an other personal services (OPS) account, as
249provided for in s. 216.011(1)(dd).
250     (b)  With respect to employment for In a local employer
251agency, the term means a an employment position that which will
252exist for less than 6 consecutive months, or other employment
253position as determined by rule of the division, regardless of
254whether it will exist for 6 consecutive months or longer.
255     (63)  "State board" means the State Board of
256Administration.
257     (64)  "Trustees" means the Board of Trustees of the State
258Board of Administration.
259     Section 2.  Subsection (6) is added to section 121.031,
260Florida Statutes, to read:
261     121.031  Administration of system; appropriation; oaths;
262actuarial studies; public records.--
263     (6)  Unless prior written approval is obtained from the
264department or state board, any promotional materials or
265advertisements that, directly or indirectly, refer to the
266"Florida Retirement System" or the "FRS" must contain a
267disclaimer that the information is not approved or endorsed by
268the Florida Retirement System.
269     Section 3.  Paragraph (a) of subsection (1) and paragraphs
270(c) and (f) of subsection (2) of section 121.051, Florida
271Statutes, are amended to read:
272     121.051  Participation in the system.--
273     (1)  COMPULSORY PARTICIPATION.--
274     (a)  The provisions of this law are shall be compulsory as
275to all officers and employees, except elected officers who meet
276the requirements of s. 121.052(3), who are employed on or after
277December 1, 1970, by of an employer other than those referred to
278in paragraph (2)(b), and each officer or employee, as a
279condition of employment, shall become a member of the system as
280of his or her date of employment, except that a person who is
281retired from any state retirement system and is reemployed on or
282after December 1, 1970, may not renew his or her membership in
283any state retirement system except as provided in s.
284121.091(4)(h) for a person who recovers from disability, and as
285provided in s. 121.091(9)(b)4.8. for a person who is elected to
286public office, and, effective July 1, 1991, as provided in s.
287121.122 for all other retirees. Officers and employees of the
288University Athletic Association, Inc., a nonprofit association
289connected with the University of Florida, employed on and after
290July 1, 1979, may shall not participate in any state-supported
291retirement system.
292     1.  Any person appointed on or after July 1, 1989, to a
293faculty position in a college at the J. Hillis Miller Health
294Center at the University of Florida or the Medical Center at the
295University of South Florida which has a faculty practice plan
296provided by rule adopted by the Board of Regents may not
297participate in the Florida Retirement System. Effective July 1,
2982008, any person appointed thereafter to a faculty position,
299including clinical faculty, in a college at a state university
300that has a faculty practice plan authorized by the Board of
301Governors may not participate in the Florida Retirement System.
302A faculty member so appointed shall participate in the optional
303retirement program for the State University System
304notwithstanding the provisions of s. 121.35(2)(a).
305     2.  For purposes of this paragraph, the term "faculty
306position" is defined as a position assigned the principal
307responsibility of teaching, research, or public service
308activities or administrative responsibility directly related to
309the academic mission of the college. The term "clinical faculty"
310is defined as a faculty position appointment in conjunction with
311a professional position in a hospital or other clinical
312environment at a college. The term "faculty practice plan"
313includes professional services to patients, institutions, or
314other parties which are rendered by the clinical faculty
315employed by a college that has a faculty practice plan at a
316state university authorized by the Board of Governors.
317     (2)  OPTIONAL PARTICIPATION.--
318     (c)  Employees of public community colleges or charter
319technical career centers sponsored by public community colleges,
320as designated in s. 1000.21(3), who are members of the Regular
321Class of the Florida Retirement System and who comply with the
322criteria set forth in this paragraph and in s. 1012.875 may
323elect, in lieu of participating in the Florida Retirement
324System, to withdraw from the Florida Retirement System
325altogether and participate in an optional retirement program
326provided by the employing agency under s. 1012.875, to be known
327as the State Community College System Optional Retirement
328Program. Pursuant thereto:
329     1.  Through June 30, 2001, the cost to the employer for
330such annuity shall equal the normal cost portion of the employer
331retirement contribution which would be required if the employee
332were a member of the Regular Class defined benefit program, plus
333the portion of the contribution rate required by s. 112.363(8)
334that would otherwise be assigned to the Retiree Health Insurance
335Subsidy Trust Fund. Effective July 1, 2001, each employer shall
336contribute on behalf of each participant in the optional program
337an amount equal to 10.43 percent of the participant's gross
338monthly compensation. The employer shall deduct an amount to
339provide for the administration of the optional retirement
340program. The employer providing the optional program shall
341contribute an additional amount to the Florida Retirement System
342Trust Fund equal to the unfunded actuarial accrued liability
343portion of the Regular Class contribution rate.
344     2.  The decision to participate in such an optional
345retirement program shall be irrevocable for as long as the
346employee holds a position eligible for participation, except as
347provided in subparagraph 3. Any service creditable under the
348Florida Retirement System shall be retained after the member
349withdraws from the Florida Retirement System; however,
350additional service credit in the Florida Retirement System shall
351not be earned while a member of the optional retirement program.
352     3.  An employee who has elected to participate in the
353optional retirement program shall have one opportunity, at the
354employee's discretion, to choose to transfer from the optional
355retirement program to the defined benefit program of the Florida
356Retirement System or to the Public Employee Optional Retirement
357Program, subject to the terms of the applicable optional
358retirement program contracts.
359     a.  If the employee chooses to move to the Public Employee
360Optional Retirement Program, any contributions, interest, and
361earnings creditable to the employee under the State Community
362College System Optional Retirement Program shall be retained by
363the employee in the State Community College System Optional
364Retirement Program, and the applicable provisions of s.
365121.4501(4) shall govern the election.
366     b.  If the employee chooses to move to the defined benefit
367program of the Florida Retirement System, the employee shall
368receive service credit equal to his or her years of service
369under the State Community College System Optional Retirement
370Program.
371     (I)  The cost for such credit shall be an amount
372representing the present value of that employee's accumulated
373benefit obligation for the affected period of service. The cost
374shall be calculated as if the benefit commencement occurs on the
375first date the employee would become eligible for unreduced
376benefits, using the discount rate and other relevant actuarial
377assumptions that were used to value the Florida Retirement
378System defined benefit plan liabilities in the most recent
379actuarial valuation. The calculation shall include any service
380already maintained under the defined benefit plan in addition to
381the years under the State Community College System Optional
382Retirement Program. The present value of any service already
383maintained under the defined benefit plan shall be applied as a
384credit to total cost resulting from the calculation. The
385division shall ensure that the transfer sum is prepared using a
386formula and methodology certified by an enrolled actuary.
387     (II)  The employee must transfer from his or her State
388Community College System Optional Retirement Program account and
389from other employee moneys as necessary, a sum representing the
390present value of that employee's accumulated benefit obligation
391immediately following the time of such movement, determined
392assuming that attained service equals the sum of service in the
393defined benefit program and service in the State Community
394College System Optional Retirement Program.
395     4.  Participation in the optional retirement program shall
396be limited to those employees who satisfy the following
397eligibility criteria:
398     a.  The employee must be otherwise eligible for membership
399or renewed membership in the Regular Class of the Florida
400Retirement System, as provided in s. 121.021(11) and (12) or s.
401121.122.
402     b.  The employee must be employed in a full-time position
403classified in the Accounting Manual for Florida's Public
404Community Colleges as:
405     (I)  Instructional; or
406     (II)  Executive Management, Instructional Management, or
407Institutional Management, if a community college determines that
408recruiting to fill a vacancy in the position is to be conducted
409in the national or regional market, and:
410     (A)  The duties and responsibilities of the position
411include either the formulation, interpretation, or
412implementation of policies; or
413     (B)  The duties and responsibilities of the position
414include the performance of functions that are unique or
415specialized within higher education and that frequently involve
416the support of the mission of the community college.
417     c.  The employee must be employed in a position not
418included in the Senior Management Service Class of the Florida
419Retirement System, as described in s. 121.055.
420     5.  A participant who receives a program distribution
421funded by employer contributions shall be deemed to be retired
422from a state-administered retirement system in the event of
423subsequent employment with any employer that participates in the
424Florida Retirement System. Participants in the program are
425subject to the same reemployment limitations, renewed membership
426provisions, and forfeiture provisions as are applicable to
427regular members of the Florida Retirement System under ss.
428121.091(9), 121.122, and 121.091(5), respectively.
429     6.  Eligible community college employees shall be
430compulsory members of the Florida Retirement System until,
431pursuant to the procedures set forth in s. 1012.875, a written
432election to withdraw from the Florida Retirement System and to
433participate in the State Community College System Optional
434Retirement Program is filed with the program administrator and
435received by the division.
436     a.  Any community college employee whose program
437eligibility results from initial employment shall be enrolled in
438the State Community College System Optional Retirement Program
439retroactive to the first day of eligible employment. The
440employer retirement contributions paid through the month of the
441employee plan change shall be transferred to the community
442college for the employee's optional program account, and,
443effective the first day of the next month, the employer shall
444pay the applicable contributions based upon subparagraph 1.
445     b.  Any community college employee whose program
446eligibility results from a change in status due to the
447subsequent designation of the employee's position as one of
448those specified in subparagraph 4. or due to the employee's
449appointment, promotion, transfer, or reclassification to a
450position specified in subparagraph 4. shall be enrolled in the
451program upon the first day of the first full calendar month that
452such change in status becomes effective. The employer retirement
453contributions paid from the effective date through the month of
454the employee plan change shall be transferred to the community
455college for the employee's optional program account, and,
456effective the first day of the next month, the employer shall
457pay the applicable contributions based upon subparagraph 1.
458     7.  Effective July 1, 2003, through December 31, 2008, any
459participant of the State Community College System Optional
460Retirement Program who has service credit in the defined benefit
461plan of the Florida Retirement System for the period between his
462or her first eligibility to transfer from the defined benefit
463plan to the optional retirement program and the actual date of
464transfer may, during his or her employment, elect to transfer to
465the optional retirement program a sum representing the present
466value of the accumulated benefit obligation under the defined
467benefit retirement program for such period of service credit.
468Upon such transfer, all such service credit previously earned
469under the defined benefit program of the Florida Retirement
470System during this period shall be nullified for purposes of
471entitlement to a future benefit under the defined benefit
472program of the Florida Retirement System.
473     (f)1.  If Whenever an employer that participates in the
474Florida Retirement System undertakes the transfer, merger, or
475consolidation of governmental services or assumes the functions
476and activities of an employing governmental entity that was not
477an employer under the system, the employer must notify the
478department at least 60 days prior to such action and shall
479provide documentation as required by the department. The
480transfer, merger, or consolidation of governmental services or
481assumption of governmental functions and activities must occur
482between public employers. The current or former employer may pay
483the employees' past service cost, unless prohibited under this
484chapter. This subparagraph does not apply to the transfer,
485merger, or consolidation of governmental services or assumption
486of functions and activities of a public entity under a leasing
487agreement having a co-employer relationship. Employers and
488employees of a public governmental employer whose service is
489covered by a leasing agreement under s. 110.191, any other
490leasing agreement, or a co-employer relationship are not
491eligible to participate in the Florida Retirement System.
492     2.  If When the agency to which a member's employing unit
493is transferred, merged, or consolidated does not participate in
494the Florida Retirement System, a member may shall elect in
495writing to remain in the Florida Retirement System or to
496transfer to the local retirement system operated by the such
497agency. If the such agency does not participate in a local
498retirement system, the member shall continue membership in the
499Florida Retirement System. In either case, the membership
500continues shall continue for as long as the member is employed
501by the agency to which his or her unit was transferred, merged,
502or consolidated.
503     Section 4.  Paragraph (f) of subsection (2) and paragraph
504(e) of subsection (3) of section 121.052, Florida Statutes, are
505amended to read:
506     121.052  Membership class of elected officers.--
507     (2)  MEMBERSHIP.--The following holders of elective office,
508hereinafter referred to as "elected officers," whether assuming
509elective office by election, reelection, or appointment, are
510members of the Elected Officers' Class, except as provided in
511subsection (3):
512     (f)1.  Any elected officer of a municipality or special
513district on or after July 1, 1997, through December 31, 2009, as
514provided in paragraph (3)(e).
515     2.  Any elected officer of a municipality or special
516district on or after January 1, 2010, when the governing body of
517a municipality or special district, at the time it joins the
518Florida Retirement System for its elected officers, elects by
519majority vote to designate all its elected positions for
520inclusion in the Elected Officers' Class.
521     (3)  PARTICIPATION AND WITHDRAWAL, GENERALLY.--Effective
522July 1, 1990, participation in the Elected Officers' Class shall
523be compulsory for elected officers listed in paragraphs (2)(a)-
524(d) and (f) assuming office on or after said date, unless the
525elected officer elects membership in another class or withdraws
526from the Florida Retirement System as provided in paragraphs
527(3)(a)-(d):
528     (e)1.  Effective July 1, 1997, the governing body of a
529municipality or special district may, by majority vote, elect to
530designate all its elected positions for inclusion in the Elected
531Officers' Class. Such election shall be made between July 1,
5321997, and December 31, 1997, and shall be irrevocable. The
533designation of such positions shall be effective the first day
534of the month following receipt by the department of the
535ordinance or resolution passed by the governing body.
536     2.  Effective July 1, 2001, the governing body of a
537municipality or special district may, by majority vote, elect to
538designate all its elected positions for inclusion in the Elected
539Officers' Class. Such election shall be made between July 1,
5402001, and December 31, 2001, and shall be irrevocable. The
541designation of such positions shall be effective the first day
542of the month following receipt by the department of the
543ordinance or resolution passed by the governing body.
544     3.  Effective July 1, 2009, the governing body of a
545municipality or special district may, by majority vote, elect to
546designate all its elected positions for inclusion in the Elected
547Officers' Class. Such election shall be made between July 1,
5482009, and December 31, 2009, and shall be irrevocable. The
549designation of such positions shall be effective the first day
550of the month following receipt by the department of the
551ordinance or resolution passed by the governing body.
552     Section 5.  Subsections (1) and (2) of section 121.053,
553Florida Statutes, are amended to read:
554     121.053  Participation in the Elected Officers' Class for
555retired members.--
556     (1)(a)1.  Any retiree of a state-administered retirement
557system who initially serves in an elective office in a regularly
558established position with a covered employer on or after January
5591, 2010, shall not be enrolled in the Florida Retirement System.
560     2.  An elected officer who is elected or appointed to an
561elective office and is participating in the Deferred Retirement
562Option Program is subject to termination as provided in s.
563121.021(39)(b), and reemployment limitations as provided in s.
564121.091(9), upon completion of his or her DROP participation
565period.
566     (b)  Before January 1, 2010, any member who retired under
567any existing system as defined in s. 121.021(2), and receives a
568benefit thereof, and who serves in an office covered by the
569Elected Officers' Class for a period of at least 6 years, shall
570be entitled to receive an additional retirement benefit for such
571elected officer service prior to July 1, 1990, under the Elected
572Officers' Class of the Florida Retirement System, as follows:
573     1.  Upon completion of 6 or more years of creditable
574service in an office covered by the Elected Officers' Class, s.
575121.052, such member shall notify the administrator of his or
576her intent to purchase elected officer service prior to July 1,
5771990, and shall pay the member contribution applicable for the
578period being claimed, plus 4 percent interest compounded
579annually from the first year of service claimed until July 1,
5801975, and 6.5 percent interest compounded annually thereafter,
581until full payment is made to the Florida Retirement System
582Trust Fund; however, such member may purchase retirement credit
583under the Elected Officers' Class only for such service as an
584elected officer.
585     2.  Upon payment of the amount specified in subparagraph
5861., the employer shall pay into the Florida Retirement System
587Trust Fund the applicable employer contribution for the period
588of elected officer service prior to July 1, 1990, being claimed
589by the member, plus 4 percent interest compounded annually from
590the first year of service claimed until July 1, 1975, and 6.5
591percent interest compounded annually thereafter, until full
592payment is made to the Florida Retirement System Trust Fund.
593     (c)(b)  Any retired member of the Florida Retirement
594System, or any existing system as defined in s. 121.021(2), who,
595on or after July 1, 1990, through December 31, 2009, is serving
596in, or is elected or appointed to, an elective office covered by
597the Elected Officers' Class shall be enrolled in the appropriate
598subclass of the Elected Officers' Class of the Florida
599Retirement System, and applicable contributions shall be paid
600into the Florida Retirement System Trust Fund as provided in s.
601121.052(7). Pursuant thereto:
602     1.  Any such retired member shall be eligible to continue
603to receive retirement benefits as well as compensation for the
604elected officer service for as long as he or she remains in an
605elective office covered by the Elected Officers' Class.
606     2.  If any such member serves in an elective office covered
607by the Elected Officers' Class and becomes vested under that
608class, he or she shall be entitled to receive an additional
609retirement benefit for such elected officer service.
610     3.  Such member shall be entitled to purchase additional
611retirement credit in the Elected Officers' Class for any
612postretirement service performed in an elected position eligible
613for the Elected Officers' Class prior to July 1, 1990, or in the
614Regular Class for any postretirement service performed in any
615other regularly established position prior to July 1, 1991, by
616paying the applicable Elected Officers' Class or Regular Class
617employee and employer contributions for the period being
618claimed, plus 4 percent interest compounded annually from the
619first year of service claimed until July 1, 1975, and 6.5
620percent interest compounded thereafter, until full payment is
621made to the Florida Retirement System Trust Fund. The
622contribution for postretirement Regular Class service between
623July 1, 1985, and July 1, 1991, for which the reemployed retiree
624contribution was paid, shall be the difference between such
625contribution and the total applicable contribution for the
626period being claimed, plus interest. The employer of such member
627may pay the applicable employer contribution in lieu of the
628member. If a member does not wish to claim credit for all of the
629postretirement service for which he or she is eligible, the
630service the member claims must be the most recent service.
631     4.  Creditable service for which credit was received, or
632which remained unclaimed, at retirement may not be claimed or
633applied toward service credit earned following renewed
634membership. However, service earned in accordance with the
635renewed membership provisions in s. 121.122 may be used in
636conjunction with creditable service earned under this paragraph,
637provided applicable vesting requirements and other existing
638statutory conditions required by this chapter are met.
639     5.  An elected officer who is elected or appointed to an
640elective office and is participating in the Deferred Retirement
641Option Program before January 1, 2010, is not subject to
642termination as provided in s. 121.021(39)(b), or reemployment
643limitations as provided in s. 121.091(9), until the end of his
644or her current term of office or, if the officer is
645consecutively elected or reelected to an elective office
646eligible for coverage under the Florida Retirement System, until
647he or she no longer holds such an elective office, as follows:
648     a.  At the end of the 60-month DROP period:
649     (I)  The officer's DROP account shall accrue no additional
650monthly benefits, but shall continue to earn interest as
651provided in s. 121.091(13). The officer whose DROP participation
652begins on or after January 1, 2010, shall accrue no additional
653monthly benefit and the DROP account shall not continue to earn
654interest as provided in s. 121.091(13) after the end of the 60-
655month DROP period.
656     (II)  No retirement contributions shall be required of the
657employer of the elected officer and no additional retirement
658credit shall be earned under the Florida Retirement System.
659     b.  Nothing herein shall prevent an elected officer from
660voluntarily terminating his or her elective office at any time
661and electing to receive his or her DROP proceeds. However, until
662termination requirements are fulfilled as provided in s.
663121.021(39), any elected officer whose termination limitations
664are extended by this section shall be ineligible for renewed
665membership in the system and shall receive no pension payments,
666DROP lump sum payments, or any other state payment other than
667the statutorily determined salary, travel, and per diem for the
668elective office.
669     c.  Upon termination, the officer shall receive his or her
670accumulated DROP account, plus interest, and shall accrue and
671commence receiving monthly retirement benefits, which shall be
672paid on a prospective basis only.
673
674However, an officer electing to participate in the Deferred
675Retirement Option Program on or before June 30, 2002, shall not
676be required to terminate and shall remain subject to the
677provisions of this subparagraph as adopted in section 1 of
678chapter 2001-235, Laws of Florida.
679     (2)  Upon attaining his or her normal retirement date and
680payment of the amount specified in paragraphs (1)(b) and (c)
681(1)(a) and (b), and upon application to the administrator of the
682intent to retire, the member shall receive a monthly benefit
683under this section, in addition to any benefits already being
684received, which shall commence on the last day of the month of
685retirement and be payable on the last day of the month
686thereafter during his or her lifetime. The amount of such
687monthly benefit shall be the total percentage of retirement
688credit purchased under this section multiplied by the member's
689average monthly compensation as an elected officer, adjusted
690according to the option selected at retirement under s.
691121.091(6).
692     Section 6.  Paragraph (f) of subsection (1) and paragraphs
693(c) and (e) of subsection (6) of section 121.055, Florida
694Statutes, are amended to read:
695     121.055  Senior Management Service Class.--There is hereby
696established a separate class of membership within the Florida
697Retirement System to be known as the "Senior Management Service
698Class," which shall become effective February 1, 1987.
699     (1)
700     (f)  Effective July 1, 1997:
701     1.  Except as provided in subparagraph 3., any elected
702state officer eligible for membership in the Elected Officers'
703Class under s. 121.052(2)(a), (b), or (c) who elects membership
704in the Senior Management Service Class under s. 121.052(3)(c)
705may, within 6 months after assuming office or within 6 months
706after this act becomes a law for serving elected state officers,
707elect to participate in the Senior Management Service Optional
708Annuity Program, as provided in subsection (6), in lieu of
709membership in the Senior Management Service Class.
710     2.  Except as provided in subparagraph 3., any elected
711county officer of a local agency employer eligible for
712membership in the Elected Officers' Class under s. 121.052(2)(d)
713who elects membership in the Senior Management Service Class
714under s. 121.052(3)(c) may, within 6 months after assuming
715office, or within 6 months after this act becomes a law for
716serving elected county officers of a local agency employer,
717elect to withdraw from the Florida Retirement System participate
718in a lifetime monthly annuity program, as provided in
719subparagraph (b)2., in lieu of membership in the Senior
720Management Service Class.
721     3.  Any retiree of a state-administered retirement system
722who is initially reemployed on or after January 1, 2010, as an
723elected official eligible for Elected Officers' Class membership
724shall not be eligible for renewed membership in the Senior
725Management Service Optional Annuity Program as provided in
726subsection (6) or to withdraw from the Florida Retirement System
727as a renewed member as provided in subparagraph (b)2., as
728applicable, in lieu of Senior Management Service Class
729membership.
730     (6)
731     (c)  Participation.--
732     1.  Any eligible employee who is employed on or before
733February 1, 1987, may elect to participate in the optional
734annuity program in lieu of participation in the Senior
735Management Service Class. Such election shall be made in writing
736and filed with the department and the personnel officer of the
737employer on or before May 1, 1987. Any eligible employee who is
738employed on or before February 1, 1987, and who fails to make an
739election to participate in the optional annuity program by May
7401, 1987, shall be deemed to have elected membership in the
741Senior Management Service Class.
742     2.  Except as provided in subparagraph 6., any employee who
743becomes eligible to participate in the optional annuity program
744by reason of initial employment commencing after February 1,
7451987, may, within 90 days after the date of commencement of
746employment, elect to participate in the optional annuity
747program. Such election shall be made in writing and filed with
748the personnel officer of the employer. Any eligible employee who
749does not within 90 days after commencement of such employment
750elect to participate in the optional annuity program shall be
751deemed to have elected membership in the Senior Management
752Service Class.
753     3.  A person who is appointed to a position in the Senior
754Management Service Class and who is a member of an existing
755retirement system or the Special Risk or Special Risk
756Administrative Support Classes of the Florida Retirement System
757may elect to remain in such system or class in lieu of
758participation in the Senior Management Service Class or optional
759annuity program. Such election shall be made in writing and
760filed with the department and the personnel officer of the
761employer within 90 days of such appointment. Any eligible
762employee who fails to make an election to participate in the
763existing system, the Special Risk Class of the Florida
764Retirement System, the Special Risk Administrative Support Class
765of the Florida Retirement System, or the optional annuity
766program shall be deemed to have elected membership in the Senior
767Management Service Class.
768     4.  Except as provided in subparagraph 5., an employee's
769election to participate in the optional annuity program is
770irrevocable as long as such employee continues to be employed in
771an eligible position and continues to meet the eligibility
772requirements set forth in this paragraph.
773     5.  Effective from July 1, 2002, through September 30,
7742002, any active employee in a regularly established position
775who has elected to participate in the Senior Management Service
776Optional Annuity Program has one opportunity to choose to move
777from the Senior Management Service Optional Annuity Program to
778the Florida Retirement System defined benefit program.
779     a.  The election must be made in writing and must be filed
780with the department and the personnel officer of the employer
781before October 1, 2002, or, in the case of an active employee
782who is on a leave of absence on July 1, 2002, within 90 days
783after the conclusion of the leave of absence. This election is
784irrevocable.
785     b.  The employee will receive service credit under the
786defined benefit program of the Florida Retirement System equal
787to his or her years of service under the Senior Management
788Service Optional Annuity Program. The cost for such credit shall
789be an amount representing the present value of that employee's
790accumulated benefit obligation for the affected period of
791service.
792     c.  The employee must transfer the total accumulated
793employer contributions and earnings on deposit in his or her
794Senior Management Service Optional Annuity Program account. If
795the transferred amount is not sufficient to pay the amount due,
796the employee must pay a sum representing the remainder of the
797amount due. In no case may the employee retain any employer
798contributions or earnings thereon from the Senior Management
799Service Optional Annuity Program account.
800     6.  Any retiree of a state-administered retirement system
801who is initially reemployed on or after January 1, 2010, shall
802not be eligible for renewed membership in the Senior Management
803Service Optional Annuity Program.
804     (e)  Benefits.--
805     1.  Benefits shall be payable under the Senior Management
806Service Optional Annuity Program only to participants in the
807program, or their beneficiaries as designated by the participant
808in the contract with a provider company, and such benefits shall
809be paid by the designated company in accordance with the terms
810of the annuity contract or contracts applicable to the
811participant. A participant must be terminated from all
812employment with all Florida Retirement System employers as
813provided in s. 121.021(39) to begin receiving the employer-
814funded benefit. Benefits funded by employer contributions shall
815be payable under the terms of the contract only as a lifetime
816annuity to the participant, his or her beneficiary, or his or
817her estate, in addition to except for:
818     a.  A lump-sum payment to the beneficiary upon the death of
819the participant;
820     b.  A cash-out of a de minimis account upon the request of
821a former participant who has been terminated for a minimum of 6
822months from the employment that entitled him or her to optional
823annuity program participation. A de minimis account is an
824account with a provider company containing employer
825contributions and accumulated earnings of not more than $5,000
826made under the provisions of this chapter. Such cash-out must be
827a complete liquidation of the account balance with that company
828and is subject to the provisions of the Internal Revenue Code;
829     c.  A mandatory distribution of a de minimis account of a
830former participant who has been terminated for a minimum of 6
831months from the employment that entitled him or her to optional
832annuity program participation as authorized by the department;
833or
834     d.c.  A lump-sum direct rollover distribution whereby all
835accrued benefits, plus interest and investment earnings, are
836paid from the participant's account directly to the custodian of
837an eligible retirement plan, as defined in s. 402(c)(8)(B) of
838the Internal Revenue Code, on behalf of the participant.
839
840As used in this subparagraph, a "de minimis account" means an
841account with a provider company containing employer
842contributions and accumulated earnings of not more than $5,000
843made under this chapter.
844     2.  The benefits payable to any person under the Senior
845Management Service Optional Annuity Program, and any
846contribution accumulated under such program, shall not be
847subject to assignment, execution, or attachment or to any legal
848process whatsoever.
849     3.  Except as provided in subparagraph 4., a participant
850who terminates employment and receives optional annuity program
851benefits funded by employer contributions shall be deemed to be
852retired from a state-administered retirement system in the event
853of subsequent employment with any employer that participates in
854the Florida Retirement System.
855     4.  A participant who receives optional annuity program
856benefits funded by employer contributions as a mandatory
857distribution of a de minimis account authorized by the
858department will not be considered a retiree.
859     Section 7.  Paragraph (a) of subsection (6) of section
860121.071, Florida Statutes, is amended to read:
861     121.071  Contributions.--Contributions to the system shall
862be made as follows:
863     (6)(a)  Required employee contributions for all service
864other than current service, including, but not limited to, prior
865service, past service, military service, leave-of-absence
866service, out-of-state service, and certain non-Florida
867Retirement System in-state service, shall be paid by cash,
868personal check, cashier's check, or money order, or a direct
869rollover or transfer from a qualified plan as provided under the
870Internal Revenue Code. The payment must only; shall be
871accompanied by a statement identifying the service for which
872payment is made; and shall be made in a lump sum for the total
873amount due or in annual payments of not less than $100, except
874for the final payment if less than $100, unless another method
875of payment is authorized by law or rule.
876     Section 8.  Paragraphs (a), (b), (e), (f), and (h) of
877subsection (1) of section 121.081, Florida Statutes, are amended
878to read:
879     121.081  Past service; prior service;
880contributions.--Conditions under which past service or prior
881service may be claimed and credited are:
882     (1)(a)  Past service, as defined in s. 121.021(18), may be
883claimed as creditable service by officers or employees of a
884city, metropolitan planning organization, charter school,
885charter technical career center, or special district who that
886become a covered group under this system. The governing body of
887a covered group in compliance with s. 121.051(2)(b) may elect to
888provide benefits with respect to past service earned prior to
889January 1, 1975, in accordance with this chapter, and the cost
890for such past service shall be established by applying the
891following formula: The member contribution for both regular and
892special risk members shall be 4 percent of the gross annual
893salary for each year of past service claimed, plus 4-percent
894employer matching contribution, plus 4-percent interest thereon
895compounded annually, figured on each year of past service, with
896interest compounded from date of annual salary earned until July
8971, 1975, and 6.5-percent interest compounded annually thereafter
898until date of payment. Once the total cost for a member has been
899figured to date, then after July 1, 1975, 6.5-percent compounded
900interest shall be added each June 30 thereafter on any unpaid
901balance until the cost of such past service liability is paid in
902full. The following formula shall be used in calculating past
903service earned prior to January 1, 1975: (Annual gross salary
904multiplied by 8 percent) multiplied by the 4-percent or 6.5-
905percent compound interest table factor, as may be applicable.
906The resulting product equals cost to date for each particular
907year of past service.
908     (b)  Past service earned after January 1, 1975, may be
909claimed by officers or employees of a city, metropolitan
910planning organization, charter school, charter technical career
911center, or special district who become that becomes a covered
912group under this system. The governing body of a covered group
913may elect to provide benefits with respect to past service
914earned after January 1, 1975, in accordance with this chapter,
915and the cost for such past service shall be established by
916applying the following formula: The employer shall contribute an
917amount equal to the contribution rate in effect at the time the
918service was earned, multiplied by the employee's gross salary
919for each year of past service claimed, plus 6.5-percent interest
920thereon, compounded annually, figured on each year of past
921service, with interest compounded from date of annual salary
922earned until date of payment.
923     (e)  Past service, as defined in s. 121.021(18), may be
924claimed as creditable service by a member of the Florida
925Retirement System who formerly was an officer or employee of a
926city, metropolitan planning organization, charter school,
927charter technical career center, or special district,
928notwithstanding the status or form of the retirement system, if
929any, of that city, metropolitan planning organization, charter
930school, charter technical career center, or special district and
931irrespective of whether officers or employees of that city,
932metropolitan planning organization, charter school, charter
933technical career center, or special district now or hereafter
934become a covered group under the Florida Retirement System. Such
935member may claim creditable service and be entitled to the
936benefits accruing to the regular class of members as provided
937for the past service claimed under this paragraph by paying into
938the retirement trust fund an amount equal to the total actuarial
939cost of providing the additional benefit resulting from such
940past-service credit, discounted by the applicable actuarial
941factors to date of retirement.
942     (f)  If When any person, either prior to this act or
943hereafter, becomes entitled to and participates does participate
944in one of the retirement systems under consolidated within or
945created by this chapter through the consolidation or merger of
946governments or the transfer of functions between units of
947government, either at the state or local level or between state
948and local units, or through the assumption of functions or
949activities by a state or local unit from an employing
950governmental entity that which was not an employer under the
951system, and such person becomes a member of the Florida
952Retirement System, such person is shall be entitled to receive
953past-service credit as defined in s. 121.021(18) for the time
954the such person performed services for, and was an employee of,
955such state or local unit or other governmental employing entity
956prior to the transfer, merger, consolidation, or assumption of
957functions and activities. Past-service credit allowed by this
958paragraph is shall also be available to any person who becomes a
959member of an existing system, as defined in s. 121.021(2), prior
960to December 1, 1970, through the transfer, merger,
961consolidation, or assumption of functions and activities set
962forth in this paragraph and who subsequently becomes a member of
963the Florida Retirement System. However, credit for the past
964service may not be granted until contributions are made in the
965manner provided in this subsection. If a person rejected Florida
966Retirement System membership at the time of the transfer,
967merger, or consolidation, or assumption of governmental
968functions and activities, the required contributions shall be at
969total actuarial cost as specified in paragraph (e). Such
970contributions or accrued interest may not be paid from any
971public state funds.
972     (h)  The following provisions apply to the purchase of past
973service:
974     1.  Notwithstanding any of the provisions of this
975subsection, past-service credit may not be purchased under this
976chapter for any service that is used to obtain a pension or
977benefit from a any local retirement system. Eligibility to
978receive or the receipt of contributions to a retirement plan
979made by the employer on behalf of the employee is considered a
980benefit.
981     2.  A member may not receive past service credit under
982paragraphs (a), (b), (e), or (f) for any leaves of absence
983without pay, except that credit for active military service
984leaves of absence may be claimed under paragraphs (a), (b), and
985(f), in accordance with s. 121.111(1).
986     3.  A member may not receive past service credit for co-
987employer service. Co-employer service or a co-employer
988relationship is employment in a single position simultaneously
989covered and reported by both a public employer and a private
990employer.
991     4.3.  If a member does not want desire to receive credit
992for all of his or her past service, the period the member claims
993must be the most recent past service prior to his or her
994participation in the Florida Retirement System.
995     5.4.  The cost of past service purchased by an employing
996agency for its employees may be amortized over the such period
997of time as is provided in the agreement, but not to exceed 15
998years, calculated in accordance with rule 60S-1.007(5)(f),
999Florida Administrative Code.
1000     6.5.  The retirement account of each member for whom past
1001service is being provided by his or her employer shall be
1002credited with all past service the employer agrees to purchase
1003as soon as the agreement between the employer and the department
1004is executed. Pursuant thereto:
1005     a.  Each such member's account shall also be posted with
1006the total contribution his or her employer agrees to make on in
1007the member's behalf for past service earned prior to October 1,
10081975, excluding those contributions representing the employer's
1009matching share and the compound interest calculation on the
1010total contribution. However, a portion of any contributions paid
1011by an employer for past service credit earned on and after
1012October 1, 1975, may not be posted to the a member's account.
1013     b.  A refund of contributions payable after an employer has
1014made a written agreement to purchase past service for employees
1015of the covered group includes shall include contributions for
1016past service which are posted to the a member's account.
1017However, contributions for past service earned on and after
1018October 1, 1975, are not refundable.
1019     Section 9.  Paragraphs (b) and (c) of subsection (9) and
1020subsections (13) and (14) of section 121.091, Florida Statutes,
1021are amended to read:
1022     121.091  Benefits payable under the system.--Benefits may
1023not be paid under this section unless the member has terminated
1024employment as provided in s. 121.021(39)(a) or begun
1025participation in the Deferred Retirement Option Program as
1026provided in subsection (13), and a proper application has been
1027filed in the manner prescribed by the department. The department
1028may cancel an application for retirement benefits when the
1029member or beneficiary fails to timely provide the information
1030and documents required by this chapter and the department's
1031rules. The department shall adopt rules establishing procedures
1032for application for retirement benefits and for the cancellation
1033of such application when the required information or documents
1034are not received.
1035     (9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
1036     (b)1.  Any person who is retired under this chapter, except
1037under the disability retirement provisions of subsection (4),
1038may be reemployed by any private or public employer after
1039retirement and receive retirement benefits and compensation from
1040the his or her employer without limitation any limitations,
1041except that the a person may not receive both a salary from
1042reemployment with any agency participating in the Florida
1043Retirement System and retirement benefits under this chapter for
10446 calendar a period of 12 months immediately after meeting
1045subsequent to the definition of termination in s. 121.021(39)
1046date of retirement. However, a DROP participant may shall
1047continue employment and receive a salary during the period of
1048participation in DROP the Deferred Retirement Option Program, as
1049provided in subsection (13).
1050     2.a.  Any person to whom the limitation in subparagraph 1.
1051applies who violates such reemployment limitation and who is
1052initially reemployed on or after January 1, 2010, with any
1053agency participating in the Florida Retirement System after he
1054or she has been retired and met the definition of termination in
1055s. 121.021(39) but before completion of the 6-month 12-month
1056limitation period must shall give timely notice of this fact in
1057writing to the employer and to the Division of Retirement and
1058shall have his or her retirement benefits suspended while
1059employed during for the balance of the 6-month 12-month
1060limitation period. Any person employed in violation of this sub-
1061subparagraph paragraph and any employing agency that which
1062knowingly employs or appoints such person without notifying the
1063division of Retirement to suspend retirement benefits are shall
1064be jointly and severally liable for reimbursement to the
1065retirement trust fund of any benefits paid during the
1066reemployment limitation period. To avoid liability, the such
1067employing agency must shall have a written statement from the
1068retiree that he or she is not retired from a state-administered
1069retirement system. Any retirement benefits received by a retired
1070member while reemployed during this reemployment limitation
1071period must shall be repaid to the Florida Retirement System
1072Trust Fund, and retirement benefits shall remain suspended until
1073such repayment is has been made. Benefits suspended beyond the
1074reemployment limitation shall apply toward repayment of benefits
1075received in violation of the reemployment limitation.
1076     b.  Any person to whom the limitation in subparagraph 1.
1077applies who is initially reemployed prior to December 31, 2009,
1078with any agency participating in the Florida Retirement System
1079after he or she has been retired and met the definition of
1080termination in s. 121.021(39) but before completion of the 12-
1081month limitation period must give timely notice of this fact in
1082writing to the employer and to the Division of Retirement and
1083shall have his or her retirement benefits suspended while
1084employed during the balance of the 12-month limitation period
1085unless the person exceeds the 780-hour limitation in
1086subparagraph 4. or subparagraph 5. Any person employed in
1087violation of this sub-subparagraph and any employing agency that
1088employs or appoints such person without notifying the division
1089to suspend retirement benefits are jointly and severally liable
1090for any benefits paid during the reemployment limitation period.
1091To avoid liability, the employing agency must have a written
1092statement from the retiree that he or she is not retired from a
1093state-administered retirement system. Any retirement benefits
1094received by a retired member while reemployed during this
1095reemployment limitation period must be repaid to the Florida
1096Retirement System Trust Fund, and retirement benefits shall
1097remain suspended until repayment is made. Benefits suspended
1098beyond the reemployment limitation shall apply toward repayment
1099of benefits received in violation of the reemployment
1100limitation.
1101     (I)3.  A district school board may reemploy a retired
1102member as a substitute or hourly teacher, education
1103paraprofessional as defined in s. 1012.01(2)(e), transportation
1104assistant, bus driver, or food service worker on a
1105noncontractual basis after he or she has been retired and met
1106the definition of termination for 1 calendar month, in
1107accordance with s. 121.021(39). A district school board may
1108reemploy a retired member as instructional personnel, as defined
1109in s. 1012.01(2)(a), on an annual contractual basis after he or
1110she has met the definition of termination been retired for 1
1111calendar month, in accordance with s. 121.021(39). Any other
1112retired member who is reemployed before meeting the definition
1113of termination voids within 1 calendar month after retirement
1114shall void his or her application for retirement benefits. A
1115district school board that reemploys boards reemploying such
1116teachers, education paraprofessionals, transportation
1117assistants, bus drivers, or food service workers is are subject
1118to the retirement contribution required by subparagraph 3. 7.
1119     (II)4.  A community college board of trustees may reemploy
1120a retired member as an adjunct instructor, that is, an
1121instructor who is noncontractual and part-time, or as a
1122participant in a phased retirement program within the Florida
1123Community College System, after he or she has been retired and
1124met the definition of termination for 1 calendar month, in
1125accordance with s. 121.021(39). Any retired member who is
1126reemployed within 1 calendar month after retirement voids shall
1127void his or her application for retirement benefits. A board
1128Boards of trustees that reemploys reemploying such instructors
1129is are subject to the retirement contribution required in
1130subparagraph 3. 7. A retired member may be reemployed as an
1131adjunct instructor for no more than 780 hours during the first
113212 calendar months after meeting the definition of termination
1133retirement. Any retired member reemployed for more than 780
1134hours during the first 12 months of retirement must shall give
1135timely notice in writing to the employer and to the Division of
1136Retirement of the date he or she will exceed the limitation. The
1137division shall suspend his or her retirement benefits for the
1138remainder of the 12-month limitation period first 12 months of
1139retirement. Any person employed in violation of this sub-sub-
1140subparagraph subparagraph and any employing agency that which
1141knowingly employs or appoints such person without notifying the
1142division of Retirement to suspend retirement benefits are shall
1143be jointly and severally liable for reimbursement to the
1144retirement trust fund of any benefits paid during the
1145reemployment limitation period. To avoid liability, the such
1146employing agency must shall have a written statement from the
1147retiree that he or she is not retired from a state-administered
1148retirement system. Any retirement benefits received by a retired
1149member while reemployed in excess of 780 hours during the 12-
1150month limitation period must first 12 months of retirement shall
1151be repaid to the Florida Retirement System Trust Fund, and
1152retirement benefits shall remain suspended until repayment is
1153made. Benefits suspended beyond the end of the 12-month
1154limitation period retired member's first 12 months of retirement
1155shall apply toward repayment of benefits received in violation
1156of the 780-hour reemployment limitation.
1157     (III)5.  The State University System may reemploy a retired
1158member as an adjunct faculty member or as a participant in a
1159phased retirement program within the State University System
1160after the retired member has met the definition of termination
1161been retired for 1 calendar month, in accordance with s.
1162121.021(39). Any retired member who is reemployed before meeting
1163the definition of termination voids within 1 calendar month
1164after retirement shall void his or her application for
1165retirement benefits. The State University System is subject to
1166the retired contribution required in subparagraph 3. 7., as
1167appropriate. A retired member may be reemployed as an adjunct
1168faculty member or a participant in a phased retirement program
1169for no more than 780 hours during the first 12 calendar months
1170after meeting the definition of termination of his or her
1171retirement. Any retired member reemployed for more than 780
1172hours during the 12-month limitation period must first 12 months
1173of retirement shall give timely notice in writing to the
1174employer and to the Division of Retirement of the date he or she
1175will exceed the limitation. The division shall suspend his or
1176her retirement benefits for the remainder of the 12-month
1177limitation period first 12 months of retirement. Any person
1178employed in violation of this sub-sub-subparagraph subparagraph
1179and any employing agency that which knowingly employs or
1180appoints such person without notifying the division of
1181Retirement to suspend retirement benefits are shall be jointly
1182and severally liable for reimbursement to the retirement trust
1183fund of any benefits paid during the reemployment limitation
1184period. To avoid liability, such employing agency must shall
1185have a written statement from the retiree that he or she is not
1186retired from a state-administered retirement system. Any
1187retirement benefits received by a retired member while
1188reemployed in excess of 780 hours during the first 12 months of
1189retirement must shall be repaid to the Florida Retirement System
1190Trust Fund, and retirement benefits shall remain suspended until
1191repayment is made. Benefits suspended beyond the end of the
1192retired member's 12-month limitation period first 12 months of
1193retirement shall apply toward repayment of benefits received in
1194violation of the 780-hour reemployment limitation.
1195     (IV)6.  The Board of Trustees of the Florida School for the
1196Deaf and the Blind may reemploy a retired member as a substitute
1197teacher, substitute residential instructor, or substitute nurse
1198on a noncontractual basis after he or she has met the definition
1199of termination been retired for 1 calendar month, in accordance
1200with s. 121.021(39). The Board of Trustees of the Florida School
1201for the Deaf and the Blind may reemploy a retired member as
1202instructional personnel, as defined in s. 1012.01(2)(a), on an
1203annual contractual basis after he or she has been retired and
1204met the definition of termination in s. 121.021(39). Any retired
1205member who is reemployed before meeting the definition of
1206termination voids within 1 calendar month after retirement shall
1207void his or her application for retirement benefits. The Board
1208of Trustees of the Florida School for the Deaf and the Blind
1209reemploying such teachers, residential instructors, or nurses is
1210subject to the retirement contribution required by subparagraph
12113. 7. Reemployment of a retired member as a substitute teacher,
1212substitute residential instructor, or substitute nurse is
1213limited to 780 hours during the first 12 months of his or her
1214retirement. Any retired member reemployed for more than 780
1215hours during the first 12 months of retirement shall give timely
1216notice in writing to the employer and to the division of the
1217date he or she will exceed the limitation. The division shall
1218suspend his or her retirement benefits for the remainder of the
1219first 12 months of retirement. Any person employed in violation
1220of this subparagraph and any employing agency which knowingly
1221employs or appoints such person without notifying the Division
1222of Retirement to suspend retirement benefits shall be jointly
1223and severally liable for reimbursement to the retirement trust
1224fund of any benefits paid during the reemployment limitation
1225period. To avoid liability, such employing agency shall have a
1226written statement from the retiree that he or she is not retired
1227from a state-administered retirement system. Any retirement
1228benefits received by a retired member while reemployed in excess
1229of 780 hours during the first 12 months of retirement shall be
1230repaid to the Retirement System Trust Fund, and his or her
1231retirement benefits shall remain suspended until payment is
1232made. Benefits suspended beyond the end of the retired member's
1233first 12 months of retirement shall apply toward repayment of
1234benefits received in violation of the 780-hour reemployment
1235limitation.
1236     (V)  A developmental research school may reemploy a retired
1237member as a substitute or hourly teacher or an education
1238paraprofessional, as defined in s. 1012.01(2)(e), on a
1239noncontractual basis after he or she has been retired and met
1240the definition of termination in s. 121.021(39). A developmental
1241research school may reemploy a retired member as instructional
1242personnel, as defined in s. 1012.01(2)(a), on an annual
1243contractual basis after he or she has been retired and met the
1244definition of termination in s. 121.021(39). Any other retired
1245member who is reemployed within 12 calendar months after
1246retirement voids his or her application for retirement benefits.
1247A developmental research school that reemploys retired teachers
1248and education paraprofessionals is subject to the retirement
1249contribution required by subparagraph 3.
1250     (VI)  A charter school may reemploy a retired member as a
1251substitute or hourly teacher on a noncontractual basis after he
1252or she has been retired and met the definition of termination in
1253s. 121.021(39). A charter school may reemploy a retired member
1254as instructional personnel, as defined in s. 1012.01(2)(a), on
1255an annual contractual basis after he or she has been retired and
1256met the definition of termination in s. 121.021(39). Any other
1257retired member who is reemployed within 12 calendar months after
1258retirement voids his or her application for retirement benefits.
1259A charter school that reemploys such members is subject to the
1260retirement contribution required by subparagraph 3.
1261     3.a.7.  The employment by an employer of a any retiree or
1262DROP participant of a any state-administered retirement system
1263does not affect shall have no effect on the average final
1264compensation or years of creditable service of the retiree or
1265DROP participant.
1266     b.  Prior to July 1, 1991, upon employment of any person,
1267other than an elected officer as provided in s. 121.053, who is
1268has been retired under a any state-administered retirement
1269program, the employer shall pay retirement contributions in an
1270amount equal to the unfunded actuarial liability portion of the
1271employer contribution which would be required for regular
1272members of the Florida Retirement System. Effective July 1,
12731991, contributions shall be made as provided in s. 121.122 for
1274retirees who have with renewed membership or as provided in
1275subsection (13) for with respect to DROP participants.
1276     c.  Any person who is retired under a state-administered
1277retirement program and who is initially reemployed on or after
1278January 1, 2010, may not renew membership in the Florida
1279Retirement System. The employer shall pay retirement
1280contributions in an amount equal to the unfunded actuarial
1281liability portion of the employer contribution that would be
1282required for active members of the Florida Retirement System in
1283addition to the contributions required by s. 121.76.
1284     4.a.8.  Any person who has previously retired and who is
1285holding an elective public office or an appointment to an
1286elective public office eligible for the Elected Officers' Class
1287on or after July 1, 1990, through December 31, 2009, shall be
1288enrolled in the Florida Retirement System as provided in s.
1289121.053(1)(c)(b) or, if holding an elective public office that
1290does not qualify for the Elected Officers' Class on or after
1291July 1, 1991, through December 31, 2009, shall be enrolled in
1292the Florida Retirement System as provided in s. 121.122, and
1293shall continue to receive retirement benefits as well as
1294compensation for the elected officer's service for as long as he
1295or she remains in elective office. However, any retired member
1296who served in an elective office prior to July 1, 1990,
1297suspended his or her retirement benefit, and had his or her
1298Florida Retirement System membership reinstated shall, upon
1299retirement from such office, have his or her retirement benefit
1300recalculated to include the additional service and compensation
1301earned.
1302     b.  Any person who has retired and who is holding an
1303elective public office or an appointment to an elective public
1304office initially eligible for the Elected Officers' Class on or
1305after January 1, 2010, shall not be enrolled in the Florida
1306Retirement System as provided in s. 121.053(1)(c) or, if holding
1307an elective public office that does not qualify for the Elected
1308Officers' Class and is initially eligible on or after January 1,
13092010, shall not be enrolled in the Florida Retirement System as
1310provided in s. 121.122, and shall not continue to receive
1311retirement benefits during the first 6 calendar months after
1312meeting the definition of termination in s. 121.021(39).
1313     5.9.  Any person who is holding an elective public office
1314which is covered by the Florida Retirement System and who is
1315concurrently employed in nonelected covered employment may elect
1316to retire while continuing employment in the elective public
1317office if, provided that he or she terminates shall be required
1318to terminate his or her nonelected covered employment. Any
1319person who exercises this election shall receive his or her
1320retirement benefits in addition to the compensation of the
1321elective office without regard to the time limitations otherwise
1322provided in this subsection. A No person who seeks to exercise
1323the provisions of this subparagraph, as they the same existed
1324prior to May 3, 1984, may not shall be deemed to be retired
1325under those provisions, unless such person is eligible to retire
1326under the provisions of this subparagraph, as amended by chapter
132784-11, Laws of Florida.
1328     6.  The limitations of this paragraph apply to reemployment
1329in any capacity with an employer irrespective of the category of
1330funds from which the person is compensated.
1331     7.  The provisions of this paragraph regarding reemployment
1332after retirement apply to DROP participants effective upon
1333termination from employment and the end of DROP participation.
1334     10.  The limitations of this paragraph apply to
1335reemployment in any capacity with an "employer" as defined in s.
1336121.021(10), irrespective of the category of funds from which
1337the person is compensated.
1338     11.  An employing agency may reemploy a retired member as a
1339firefighter or paramedic after the retired member has been
1340retired for 1 calendar month, in accordance with s. 121.021(39).
1341Any retired member who is reemployed within 1 calendar month
1342after retirement shall void his or her application for
1343retirement benefits. The employing agency reemploying such
1344firefighter or paramedic is subject to the retired contribution
1345required in subparagraph 8. Reemployment of a retired
1346firefighter or paramedic is limited to no more than 780 hours
1347during the first 12 months of his or her retirement. Any retired
1348member reemployed for more than 780 hours during the first 12
1349months of retirement shall give timely notice in writing to the
1350employer and to the division of the date he or she will exceed
1351the limitation. The division shall suspend his or her retirement
1352benefits for the remainder of the first 12 months of retirement.
1353Any person employed in violation of this subparagraph and any
1354employing agency which knowingly employs or appoints such person
1355without notifying the Division of Retirement to suspend
1356retirement benefits shall be jointly and severally liable for
1357reimbursement to the Retirement System Trust Fund of any
1358benefits paid during the reemployment limitation period. To
1359avoid liability, such employing agency shall have a written
1360statement from the retiree that he or she is not retired from a
1361state-administered retirement system. Any retirement benefits
1362received by a retired member while reemployed in excess of 780
1363hours during the first 12 months of retirement shall be repaid
1364to the Retirement System Trust Fund, and retirement benefits
1365shall remain suspended until repayment is made. Benefits
1366suspended beyond the end of the retired member's first 12 months
1367of retirement shall apply toward repayment of benefits received
1368in violation of the 780-hour reemployment limitation.
1369     (c)  The provisions of this subsection apply to retirees,
1370as defined in s. 121.4501(2)(j), of the Public Employee Optional
1371Retirement Program created in part II, subject to the following
1372conditions:
1373     1.  Such retirees may not be reemployed with an employer
1374participating in the Florida Retirement System as provided in
1375paragraph (b) until such person has been retired for 12 3
1376calendar months, unless the participant has reached the normal
1377retirement requirements of the defined benefit plan as provided
1378in s. 121.021(29).
1379     2.  Such retiree employed in violation of this subsection
1380and any employing agency that knowingly employs or appoints such
1381person shall be jointly and severally liable for reimbursement
1382of any benefits paid to the retirement trust fund from which the
1383benefits were paid, including the Retirement System Trust Fund
1384and the Public Employee Optional Retirement Program Trust Fund,
1385as appropriate. To avoid liability, such employing agency must
1386have a written statement from the retiree that he or she is not
1387retired from a state-administered retirement system.
1388     (13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
1389subject to the provisions of this section, the Deferred
1390Retirement Option Program, hereinafter referred to as the DROP,
1391is a program under which an eligible member of the Florida
1392Retirement System may elect to participate, deferring receipt of
1393retirement benefits while continuing employment with his or her
1394Florida Retirement System employer. The deferred monthly
1395benefits shall accrue in the Florida Retirement System Trust
1396Fund on behalf of the participant, plus interest compounded
1397monthly, for the specified period of the DROP participation, as
1398provided in paragraph (c). Upon termination of employment, the
1399participant shall receive the total DROP benefits and begin to
1400receive the previously determined normal retirement benefits.
1401Participation in the DROP does not guarantee employment for the
1402specified period of DROP. Participation in the DROP by an
1403eligible member beyond the initial 60-month period as authorized
1404in this subsection shall be on an annual contractual basis for
1405all participants.
1406     (a)  Eligibility of member to participate in the DROP.--All
1407active Florida Retirement System members in a regularly
1408established position, and all active members of either the
1409Teachers' Retirement System established in chapter 238 or the
1410State and County Officers' and Employees' Retirement System
1411established in chapter 122, which systems are consolidated
1412within the Florida Retirement System under s. 121.011, are
1413eligible to elect participation in the DROP if provided that:
1414     1.  The member is not a renewed member of the Florida
1415Retirement System under s. 121.122, or a member of the State
1416Community College System Optional Retirement Program under s.
1417121.051, the Senior Management Service Optional Annuity Program
1418under s. 121.055, or the optional retirement program for the
1419State University System under s. 121.35.
1420     2.  Except as provided in subparagraph 6., election to
1421participate is made within 12 months immediately following the
1422date on which the member first reaches normal retirement date,
1423or, for a member who reaches normal retirement date based on
1424service before he or she reaches age 62, or age 55 for Special
1425Risk Class members, election to participate may be deferred to
1426the 12 months immediately following the date the member attains
142757, or age 52 for Special Risk Class members. A member who
1428delays DROP participation during the 12-month period immediately
1429following his or her maximum DROP deferral date, except as
1430provided in subparagraph 6., loses a month of DROP participation
1431for each month delayed. For a member who first reached normal
1432retirement date or the deferred eligibility date described above
1433prior to the effective date of this section, election to
1434participate shall be made within 12 months after the effective
1435date of this section. A member who fails to make an election
1436within the such 12-month limitation period forfeits shall
1437forfeit all rights to participate in the DROP. The member shall
1438advise his or her employer and the division in writing of the
1439date on which the DROP begins shall begin. The Such beginning
1440date may be subsequent to the 12-month election period, but must
1441be within the original 60-month participation or, with respect
1442to members who are instructional personnel employed by the
1443Florida School for the Deaf and the Blind and who have received
1444authorization by the Board of Trustees of the Florida School for
1445the Deaf and the Blind to participate in the DROP beyond 60
1446months, or who are instructional personnel as defined in s.
14471012.01(2)(a)-(d) in grades K-12 and who have received
1448authorization by the district school superintendent to
1449participate in the DROP beyond 60 months, the 96-month
1450limitation period as provided in subparagraph (b)1. When
1451establishing eligibility of the member to participate in the
1452DROP for the 60-month or, with respect to members who are
1453instructional personnel employed by the Florida School for the
1454Deaf and the Blind and who have received authorization by the
1455Board of Trustees of the Florida School for the Deaf and the
1456Blind to participate in the DROP beyond 60 months, or who are
1457instructional personnel as defined in s. 1012.01(2)(a)-(d) in
1458grades K-12 and who have received authorization by the district
1459school superintendent to participate in the DROP beyond 60
1460months, the 96-month maximum participation period, the member
1461may elect to include or exclude any optional service credit
1462purchased by the member from the total service used to establish
1463the normal retirement date. A member who has with dual normal
1464retirement dates is shall be eligible to elect to participate in
1465DROP within 12 months after attaining normal retirement date in
1466either class.
1467     3.  The employer of a member electing to participate in the
1468DROP, or employers if dually employed, shall acknowledge in
1469writing to the division the date the member's participation in
1470the DROP begins and the date the member's employment and DROP
1471participation will terminate.
1472     4.  Simultaneous employment of a participant by additional
1473Florida Retirement System employers subsequent to the
1474commencement of participation in the DROP is shall be
1475permissible if provided such employers acknowledge in writing a
1476DROP termination date no later than the participant's existing
1477termination date or the maximum participation 60-month
1478limitation period as provided in subparagraph (b)1.
1479     5.  A DROP participant may change employers while
1480participating in the DROP, subject to the following:
1481     a.  A change of employment must take place without a break
1482in service so that the member receives salary for each month of
1483continuous DROP participation. If a member receives no salary
1484during a month, DROP participation shall cease unless the
1485employer verifies a continuation of the employment relationship
1486for such participant pursuant to s. 121.021(39)(b).
1487     b.  Such participant and new employer shall notify the
1488division of the identity of the new employer on forms required
1489by the division as to the identity of the new employer.
1490     c.  The new employer shall acknowledge, in writing, the
1491participant's DROP termination date, which may be extended but
1492not beyond the maximum participation original 60-month or, with
1493respect to members who are instructional personnel employed by
1494the Florida School for the Deaf and the Blind and who have
1495received authorization by the Board of Trustees of the Florida
1496School for the Deaf and the Blind to participate in the DROP
1497beyond 60 months, or who are instructional personnel as defined
1498in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
1499authorization by the district school superintendent to
1500participate in the DROP beyond 60 months, the 96-month period
1501provided in subparagraph (b)1., shall acknowledge liability for
1502any additional retirement contributions and interest required if
1503the participant fails to timely terminate employment, and is
1504shall be subject to the adjustment required in sub-subparagraph
1505(c)5.d.
1506     6.  Effective July 1, 2001, for instructional personnel as
1507defined in s. 1012.01(2), election to participate in the DROP
1508may shall be made at any time following the date on which the
1509member first reaches normal retirement date. The member shall
1510advise his or her employer and the division in writing of the
1511date on which DROP begins the Deferred Retirement Option Program
1512shall begin. When establishing eligibility of the member to
1513participate in the DROP for the 60-month or, with respect to
1514members who are instructional personnel employed by the Florida
1515School for the Deaf and the Blind and who have received
1516authorization by the Board of Trustees of the Florida School for
1517the Deaf and the Blind to participate in the DROP beyond 60
1518months, or who are instructional personnel as defined in s.
15191012.01(2)(a)-(d) in grades K-12 and who have received
1520authorization by the district school superintendent to
1521participate in the DROP beyond 60 months, the 96-month maximum
1522participation period, as provided in subparagraph (b)1., the
1523member may elect to include or exclude any optional service
1524credit purchased by the member from the total service used to
1525establish the normal retirement date. A member who has with dual
1526normal retirement dates is shall be eligible to elect to
1527participate in either class.
1528     (b)  Participation in the DROP.--
1529     1.a.  Except as provided in sub-subparagraph b., an
1530eligible member may elect to participate in the DROP for a
1531period not to exceed a maximum of 60 calendar months. or, with
1532respect to
1533     b.  Members who are instructional personnel employed by the
1534Florida School for the Deaf and the Blind and authorized who
1535have received authorization by the Board of Trustees of the
1536Florida School for the Deaf and the Blind to participate in the
1537DROP beyond 60 months, or who are instructional personnel as
1538defined in s. 1012.01(2)(a)-(d) in grades K-12 and authorized
1539who have received authorization by the district school
1540superintendent to participate in the DROP beyond 60 calendar
1541months, or who are instructional personnel as defined in s.
15421012.01(2)(a) employed by a developmental research school and
1543authorized by the school's director, or if the school has no
1544director, by the school's principal, may participate in DROP for
1545up to 36 calendar months beyond the 60-month period specified in
1546sub-subparagraph a. 96 calendar months immediately following the
1547date on which the member first reaches his or her normal
1548retirement date or the date to which he or she is eligible to
1549defer his or her election to participate as provided in
1550subparagraph (a)2. However, a member who has reached normal
1551retirement date prior to the effective date of the DROP shall be
1552eligible to participate in the DROP for a period of time not to
1553exceed 60 calendar months or, with respect to members who are
1554instructional personnel employed by the Florida School for the
1555Deaf and the Blind and who have received authorization by the
1556Board of Trustees of the Florida School for the Deaf and the
1557Blind to participate in the DROP beyond 60 months, or who are
1558instructional personnel as defined in s. 1012.01(2)(a)-(d) in
1559grades K-12 and who have received authorization by the district
1560school superintendent to participate in the DROP beyond 60
1561calendar months, 96 calendar months immediately following the
1562effective date of the DROP, except a member of the Special Risk
1563Class who has reached normal retirement date prior to the
1564effective date of the DROP and whose total accrued value exceeds
156575 percent of average final compensation as of his or her
1566effective date of retirement shall be eligible to participate in
1567the DROP for no more than 36 calendar months immediately
1568following the effective date of the DROP.
1569     2.  Upon deciding to participate in the DROP, the member
1570shall submit, on forms required by the division:
1571     a.  A written election to participate in the DROP;
1572     b.  Selection of the DROP participation and termination
1573dates that, which satisfy the limitations stated in paragraph
1574(a) and subparagraph 1. The Such termination date must shall be
1575in a binding letter of resignation to with the employer,
1576establishing a deferred termination date. The member may change
1577the termination date within the limitations of subparagraph 1.,
1578but only with the written approval of the his or her employer;
1579     c.  A properly completed DROP application for service
1580retirement as provided in this section; and
1581     d.  Any other information required by the division.
1582     3.  The DROP participant is shall be a retiree under the
1583Florida Retirement System for all purposes, except for paragraph
1584(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
1585and 121.122. DROP participation is final and cannot be canceled
1586by the participant after the first payment is credited during
1587the DROP participation period. However, participation in the
1588DROP does not alter the participant's employment status, and the
1589member is such employee shall not be deemed retired from
1590employment until his or her deferred resignation is effective
1591and termination occurs as provided in s. 121.021(39).
1592     4.  Elected officers are shall be eligible to participate
1593in the DROP subject to the following:
1594     a.  An elected officer who reaches normal retirement date
1595during a term of office may defer the election to participate in
1596the DROP until the next succeeding term in that office. An Such
1597elected officer who exercises this option may participate in the
1598DROP for up to 60 calendar months or a period of no longer than
1599the such succeeding term of office, whichever is less.
1600     b.  An elected or a nonelected participant may run for a
1601term of office while participating in DROP and, if elected,
1602extend the DROP termination date accordingly;, except, however,
1603if such additional term of office exceeds the 60-month
1604limitation established in subparagraph 1., and the officer does
1605not resign from office within such 60-month limitation, the
1606retirement and the participant's DROP is shall be null and void
1607as provided in sub-subparagraph (c)5.d.
1608     c.(I)  For DROP participation ending before January 1,
16092010, an elected officer who is dually employed and elects to
1610participate in DROP must meet shall be required to satisfy the
1611definition of termination in s. 121.021(39) within the original
161260-month period or maximum participation, with respect to
1613members who are instructional personnel employed by the Florida
1614School for the Deaf and the Blind and who have received
1615authorization by the Board of Trustees of the Florida School for
1616the Deaf and the Blind to participate in the DROP beyond 60
1617months, or who are instructional personnel as defined in s.
16181012.01(2)(a)-(d) in grades K-12 and who have received
1619authorization by the district school superintendent to
1620participate in the DROP beyond 60 months, the 96-month
1621limitation period as provided in subparagraph 1. for the
1622nonelected position and may continue employment as an elected
1623officer as provided in s. 121.053. The elected officer shall
1624will be enrolled as a renewed member in the Elected Officers'
1625Class or the Regular Class, as provided in ss. 121.053 and
1626121.122, on the first day of the month after termination of
1627employment in the nonelected position and termination of DROP.
1628Distribution of the DROP benefits shall be made as provided in
1629paragraph (c).
1630     (II)  For DROP participation beginning on or after January
16311, 2010, an elected officer who is dually employed and elects to
1632participate in DROP must meet the definition of termination in
1633s. 121.021(39) within the original 60-month period or maximum
1634participation period as provided in subparagraph 1.
1635     (c)  Benefits payable under the DROP.--
1636     1.  Effective on with the date of DROP participation, the
1637member's initial normal monthly benefit, including creditable
1638service, optional form of payment, and average final
1639compensation, and the effective date of retirement are shall be
1640fixed. The beneficiary established under the Florida Retirement
1641System shall be the beneficiary eligible to receive any DROP
1642benefits payable if the DROP participant dies prior to the
1643completion of the period of DROP participation. If In the event
1644a joint annuitant predeceases the member, the member may name a
1645beneficiary to receive accumulated DROP benefits payable. The
1646Such retirement benefit, the annual cost of living adjustments
1647provided in s. 121.101, and interest shall accrue monthly in the
1648Florida Retirement System Trust Fund. The Such interest shall
1649accrue at an effective annual rate of 6.5 percent compounded
1650monthly, on the prior month's accumulated ending balance, up to
1651the month of termination or death, except as provided in s.
1652121.053(1)(b)5.
1653     2.  Each employee who elects to participate in the DROP may
1654shall be allowed to elect to receive a lump-sum payment for
1655accrued annual leave earned in accordance with agency policy
1656upon beginning participation in the DROP. The Such accumulated
1657leave payment certified to the division upon commencement of
1658DROP shall be included in the calculation of the member's
1659average final compensation. The employee electing the such lump-
1660sum payment is upon beginning participation in DROP will not be
1661eligible to receive a second lump-sum payment upon termination,
1662except to the extent the employee has earned additional annual
1663leave which, combined with the original payment, does not exceed
1664the maximum lump-sum payment allowed by the employing agency's
1665policy or rules. An Such early lump-sum payment shall be based
1666on the hourly wage of the employee at the time he or she begins
1667participation in the DROP. If the member elects to wait and
1668receive a such lump-sum payment upon termination of DROP and
1669termination of employment with the employer, any accumulated
1670leave payment made at that time may not cannot be included in
1671the member's retirement benefit, which was determined and fixed
1672by law when the employee elected to participate in the DROP.
1673     3.  The effective date of DROP participation and the
1674effective date of retirement of a DROP participant shall be the
1675first day of the month selected by the member to begin
1676participation in the DROP, provided such date is properly
1677established, with the written confirmation of the employer, and
1678the approval of the division, on forms required by the division.
1679     4.  Normal retirement benefits and any interest thereon
1680shall continue to accrue in the DROP until the established
1681termination date of the DROP, or until the participant
1682terminates employment or dies prior to such date, except as
1683provided in s. 121.053(1)(b)5. Although individual DROP accounts
1684shall not be established, a separate accounting of each
1685participant's accrued benefits under the DROP shall be
1686calculated and provided to participants.
1687     5.  At the conclusion of the participant's DROP, the
1688division shall distribute the participant's total accumulated
1689DROP benefits, subject to the following provisions:
1690     a.  The division shall receive verification by the
1691participant's employer or employers that the such participant
1692has terminated employment as provided in s. 121.021(39)(b).
1693     b.  The terminated DROP participant or, if deceased, the
1694such participant's named beneficiary, shall elect on forms
1695provided by the division to receive payment of the DROP benefits
1696in accordance with one of the options listed below. If For a
1697participant or beneficiary who fails to elect a method of
1698payment within 60 days after of termination of the DROP, the
1699division shall will pay a lump sum as provided in sub-sub-
1700subparagraph (I).
1701     (I)  Lump sum.--All accrued DROP benefits, plus interest,
1702less withholding taxes remitted to the Internal Revenue Service,
1703shall be paid to the DROP participant or surviving beneficiary.
1704     (II)  Direct rollover.--All accrued DROP benefits, plus
1705interest, shall be paid from the DROP directly to the custodian
1706of an eligible retirement plan as defined in s. 402(c)(8)(B) of
1707the Internal Revenue Code. However, in the case of an eligible
1708rollover distribution to the surviving spouse of a deceased
1709participant, an eligible retirement plan is an individual
1710retirement account or an individual retirement annuity as
1711described in s. 402(c)(9) of the Internal Revenue Code.
1712     (III)  Partial lump sum.--A portion of the accrued DROP
1713benefits shall be paid to the DROP participant or surviving
1714spouse, less withholding taxes remitted to the Internal Revenue
1715Service, and the remaining DROP benefits shall be transferred
1716directly to the custodian of an eligible retirement plan as
1717defined in s. 402(c)(8)(B) of the Internal Revenue Code.
1718However, in the case of an eligible rollover distribution to the
1719surviving spouse of a deceased participant, an eligible
1720retirement plan is an individual retirement account or an
1721individual retirement annuity as described in s. 402(c)(9) of
1722the Internal Revenue Code. The proportions shall be specified by
1723the DROP participant or surviving beneficiary.
1724     c.  The form of payment selected by the DROP participant or
1725surviving beneficiary must comply complies with the minimum
1726distribution requirements of the Internal Revenue Code.
1727     d.  A DROP participant who fails to terminate employment as
1728defined in s. 121.021(39)(b) shall be deemed as not to be
1729retired, and the DROP election is shall be null and void.
1730Florida Retirement System membership shall be reestablished
1731retroactively to the date of the commencement of the DROP, and
1732each employer with whom the participant continues employment
1733must shall be required to pay to the Florida Retirement System
1734Trust Fund the difference between the DROP contributions paid in
1735paragraph (h) (i) and the contributions required for the
1736applicable Florida Retirement System class of membership during
1737the period the member participated in the DROP, plus 6.5 percent
1738interest compounded annually.
1739     6.  The retirement benefits of any DROP participant who
1740meets the definition of termination in s. 121.021(39)(b) but is
1741in violation of the reemployment provisions as provided in
1742subsection (9) shall be suspended during those months in which
1743the member is in violation. Any member employed in violation of
1744this subparagraph and any employing agency that employs or
1745appoints such member without notifying the Division of
1746Retirement to suspend retirement benefits are jointly and
1747severally liable for any benefits paid during the reemployment
1748limitation period. To avoid liability, the employing agency must
1749have a written statement from the retiree that he or she is not
1750retired from a state-administered retirement system. Any
1751retirement benefits received by a retired member while employed
1752in violation of the reemployment limitations during the first 6
1753months after meeting termination in s. 121.021(39) must be
1754repaid to the Florida Retirement System Trust Fund, and his or
1755her retirement benefits shall remain suspended until payment is
1756made. Benefits suspended beyond the end of the retired member's
1757first 6 calendar months after meeting the definition of
1758termination in s. 121.021(39)(b) shall apply toward repayment of
1759benefits received in violation of the reemployment limitation.
1760     7.6.  The accrued benefits of any DROP participant, and any
1761contributions accumulated under the such program, are shall not
1762be subject to assignment, execution, attachment, or to any legal
1763process whatsoever, except for qualified domestic relations
1764orders by a court of competent jurisdiction, income deduction
1765orders as provided in s. 61.1301, and federal income tax levies.
1766     8.7.  DROP participants are shall not be eligible for
1767disability retirement benefits as provided in subsection (4).
1768     (d)  Death benefits under the DROP.--
1769     1.  Upon the death of a DROP participant, the named
1770beneficiary shall be entitled to apply for and receive the
1771accrued benefits in the DROP as provided in sub-subparagraph
1772(c)5.b.
1773     2.  The normal retirement benefit accrued to the DROP
1774during the month of a participant's death shall be the final
1775monthly benefit credited for such DROP participant.
1776     3.  Eligibility to participate in the DROP terminates upon
1777death of the participant. If the participant dies on or after
1778the effective date of enrollment in the DROP, but prior to the
1779first monthly benefit being credited to the DROP, Florida
1780Retirement System benefits shall be paid in accordance with
1781subparagraph (7)(c)1. or subparagraph 2.
1782     4.  A DROP participant's participants' survivors shall not
1783be eligible to receive Florida Retirement System death benefits
1784as provided in paragraph (7)(d).
1785     (e)  Cost-of-living adjustment.--On each July 1, the
1786participant's participants' normal retirement benefit shall be
1787increased as provided in s. 121.101.
1788     (f)  Retiree health insurance subsidy.--DROP participants
1789are not eligible to apply for the retiree health insurance
1790subsidy payments as provided in s. 112.363 until such
1791participants have terminated employment and participation in the
1792DROP.
1793     (g)  Renewed membership.--DROP participants shall not be
1794eligible for renewed membership in the Florida Retirement System
1795under ss. 121.053 and 121.122 until termination of employment is
1796effectuated as provided in s. 121.021(39)(b).
1797     (g)(h)  Employment limitation after DROP
1798participation.--Upon satisfying the definition of termination of
1799employment as provided in s. 121.021(39)(b), DROP participants
1800shall be subject to such reemployment limitations as other
1801retirees. Reemployment restrictions applicable to retirees as
1802provided in subsection (9) shall not apply to DROP participants
1803until their employment and participation in the DROP are
1804terminated.
1805     (h)(i)  Contributions.--
1806     1.  All employers paying the salary of a DROP participant
1807filling a regularly established position shall contribute 8.0
1808percent of such participant's gross compensation for the period
1809of July 1, 2002, through June 30, 2003, and the percentage 11.56
1810percent of such compensation required by s. 121.71 thereafter,
1811which shall constitute the entire employer DROP contribution
1812with respect to such participant. Such contributions, payable to
1813the Florida Retirement System Trust Fund in the same manner as
1814required in s. 121.071, shall be made as appropriate for each
1815pay period and are in addition to contributions required for
1816social security and the Retiree Health Insurance Subsidy Trust
1817Fund. Such employer, social security, and health insurance
1818subsidy contributions are not included in the DROP.
1819     2.  The employer shall, in addition to subparagraph 1.,
1820also withhold one-half of the entire social security
1821contribution required for the participant. Contributions for
1822social security by each participant and each employer, in the
1823amount required for social security coverage as now or hereafter
1824provided by the federal Social Security Act, shall be in
1825addition to contributions specified in subparagraph 1.
1826     3.  All employers paying the salary of a DROP participant
1827filling a regularly established position shall contribute the
1828percent of such participant's gross compensation required in s.
1829121.071(4), which shall constitute the employer's health
1830insurance subsidy contribution with respect to such participant.
1831Such contributions shall be deposited by the administrator in
1832the Retiree Health Insurance Subsidy Trust Fund.
1833     (i)(j)  Forfeiture of retirement benefits.--Nothing in this
1834section shall be construed to remove DROP participants from the
1835scope of s. 8(d), Art. II of the State Constitution, s.
1836112.3173, and paragraph (5)(f). DROP participants who commit a
1837specified felony offense while employed will be subject to
1838forfeiture of all retirement benefits, including DROP benefits,
1839pursuant to those provisions of law.
1840     (j)(k)  Administration of program.--The division shall make
1841such rules as are necessary for the effective and efficient
1842administration of this subsection. The division shall not be
1843required to advise members of the federal tax consequences of an
1844election related to the DROP but may advise members to seek
1845independent advice.
1846     (14)  PAYMENT OF BENEFITS.--This subsection applies to the
1847payment of benefits to a payee (retiree or beneficiary) under
1848the Florida Retirement System:
1849     (a)  Federal income tax shall be withheld in accordance
1850with federal law, unless the payee elects otherwise on Form W-
18514P. The division shall prepare and distribute to each recipient
1852of monthly retirement benefits an appropriate income tax form
1853that reflects the recipient's income and federal income tax
1854withheld for the calendar year just ended.
1855     (b)  Subject to approval by the division in accordance with
1856rule 60S-4.015, Florida Administrative Code, a payee receiving
1857retirement benefits under the Florida Retirement system may also
1858have the following payments deducted from his or her monthly
1859benefit:
1860     1.  Premiums for life and health-related insurance policies
1861from approved companies.
1862     2.  Life insurance premiums for the State Group Life
1863Insurance Plan, if authorized in writing by the payee and by the
1864department of Management Services.
1865     3.  Repayment of overpayments from the Florida Retirement
1866System Trust Fund, the State Employees' Health Insurance Trust
1867Fund, or the State Employees' Life Insurance Trust Fund, upon
1868notification of the payee.
1869     4.  Payments to an alternate payee for alimony or, child
1870support pursuant to an income deduction order under s. 61.1301,
1871or division of marital assets pursuant to a qualified domestic
1872relations order under s. 222.21 or an income deduction order
1873under s. 61.1301.
1874     5.  Payments to the Internal Revenue Service for federal
1875income tax levies, upon notification of the division by the
1876Internal Revenue Service.
1877     (c)  A payee must shall notify the division of any change
1878in his or her address. The division may suspend benefit payments
1879to a payee if correspondence sent to the payee's mailing address
1880is returned due to an incorrect address. Benefit payments shall
1881be resumed upon notification to the division of the payee's new
1882address.
1883     (d)  A payee whose retirement benefits are reduced by the
1884application of maximum benefit limits under s. 415(b) of the
1885Internal Revenue Code, as specified in s. 121.30(5), shall have
1886the portion of his or her calculated benefit in the Florida
1887Retirement System defined benefit plan which exceeds such
1888federal limitation paid through the Florida Retirement System
1889Preservation of Benefits Plan, as provided in s. 121.1001.
1890     (e)  The Division of Retirement may issue retirement
1891benefits payable for division of marital assets pursuant to a
1892qualified domestic relations order directly to the alternate
1893payee, any court order to the contrary notwithstanding, in order
1894to meet Internal Revenue Code requirements.
1895     (f)(e)  A No benefit may not be reduced for the purpose of
1896preserving the member's eligibility for a federal program.
1897     (g)(f)  The division shall adopt rules establishing
1898procedures for determining that the persons to whom benefits are
1899being paid are still living. The division shall suspend the
1900benefits being paid to any payee if when it is unable to contact
1901such payee and to confirm that he or she is still living.
1902     Section 10.  Section 121.1115, Florida Statutes, is amended
1903to read:
1904     121.1115  Purchase of retirement credit for out-of-state or
1905and federal service.--Effective January 1, 1995, a member of the
1906Florida Retirement System may purchase creditable service for
1907periods of public employment in another state and receive
1908creditable service for such periods of employment. Service with
1909the Federal Government, including any active military service,
1910may be claimed. Upon completion of each year of service earned
1911under the Florida Retirement System, a member may purchase up to
19121 year of retirement credit for his or her out-of-state service,
1913subject to the following provisions:
1914     (1)  LIMITATIONS AND CONDITIONS.--To receive credit for the
1915out-of-state service:
1916     (a)  The out-of-state service being claimed must have been:
1917     1.  Performed in a position of employment with the state or
1918a political subdivision thereof or with the Federal Government;
1919     2.  Covered by a retirement or pension plan provided by the
1920state or political subdivision, or by the Federal Government, as
1921appropriate; and
1922     3.  Performed prior to a period of membership in the
1923Florida Retirement System.
1924     (b)  The member must have completed a minimum of 6 years of
1925creditable service under the Florida Retirement System,
1926excluding out-of-state service and in-state service claimed and
1927purchased under s. 121.1122.
1928     (c)  Not more than 5 years of creditable service may be
1929claimed for creditable service aggregated under the provisions
1930of this section and s. 121.1122.
1931     (d)  The out-of-state service credit claimed under this
1932section shall be credited only as service in the Regular Class
1933of membership, and any benefit or pension based thereon is shall
1934be subject to the limitations and restrictions of s. 112.65.
1935     (e)  The member is not eligible for and may not receive a
1936pension or benefit from a retirement or pension plan based on or
1937including the out-of-state service. Eligibility for or the
1938receipt of contributions to a retirement plan made by the
1939employer on behalf of the employee is considered a benefit.
1940     (f)(e)  A member shall be eligible To receive service
1941credit for out-of-state service performed after leaving the
1942Florida Retirement System, the member must complete only upon
1943return to membership and completion of at least 1 year of
1944creditable service in the Florida Retirement System following
1945the out-of-state service.
1946     (2)  COST.--For each year claimed, the member must pay into
1947the Florida Retirement System Trust Fund an amount equal to 20
1948percent of the member's annual compensation for the first full
1949work year of creditable service earned under the Florida
1950Retirement System, but not less than $12,000, plus interest at
19516.5 percent compounded annually from the date of first annual
1952salary earned until full payment is made. The employer may pay
1953all or a portion of the cost of this service credit.
1954     Section 11.  Subsection (2) of section 121.1122, Florida
1955Statutes, is amended to read:
1956     121.1122  Purchase of retirement credit for in-state public
1957service and in-state service in accredited nonpublic schools and
1958colleges, including charter schools and charter technical career
1959centers.--Effective January 1, 1998, a member of the Florida
1960Retirement System may purchase creditable service for periods of
1961certain public or nonpublic employment performed in this state,
1962as provided in this section.
1963     (2)  LIMITATIONS AND CONDITIONS.--
1964     (a)  A member is not eligible to receive credit for in-
1965state service under this section until he or she has completed 6
1966years of creditable service under the Florida Retirement System,
1967excluding service purchased under this section and out-of-state
1968service claimed and purchased under s. 121.1115.
1969     (b)  A member may not purchase and receive credit for more
1970than 5 years of creditable service aggregated under the
1971provisions of this section and s. 121.1115.
1972     (c)  Service credit claimed under this section shall be
1973credited only as service in the Regular Class of membership and
1974is shall be subject to the provisions of s. 112.65.
1975     (d)  Service credit may not be purchased under this section
1976if the member is eligible to receive or is receiving a pension
1977or benefit from a retirement or pension plan based on or
1978including the service. Eligibility for or the receipt of
1979contributions to a retirement plan made by the employer on
1980behalf of the employee is considered a benefit.
1981     (e)(d)  A member is shall be eligible to receive service
1982credit for in-state service performed after leaving the Florida
1983Retirement System only after upon returning to membership and
1984completing at least 1 year of creditable service in the Florida
1985Retirement System following the in-state service.
1986     (f)(e)  The service claimed must have been service covered
1987by a retirement or pension plan provided by the employer.
1988     Section 12.  Section 121.122, Florida Statutes, is amended
1989to read:
1990     121.122  Renewed membership in system.--
1991     (1)  Any retiree of a state-administered retirement system
1992who is initially reemployed on or after January 1, 2010, shall
1993not be eligible for renewed membership.
1994     (2)  Except as provided in s. 121.053, effective July 1,
19951991, through December 31, 2009, any retiree of a state-
1996administered retirement system who is initially reemployed
1997employed in a regularly established position with a covered
1998employer shall be enrolled as a compulsory member of the Regular
1999Class of the Florida Retirement System or, effective July 1,
20001997, through December 31, 2009, any retiree of a state-
2001administered retirement system who is initially reemployed
2002employed in a position included in the Senior Management Service
2003Class shall be enrolled as a compulsory member of the Senior
2004Management Service Class of the Florida Retirement System as
2005provided in s. 121.055, and shall be entitled to receive an
2006additional retirement benefit, subject to the following
2007conditions:
2008     (1)(a)  Such member shall resatisfy the age and service
2009requirements as provided in this chapter for initial membership
2010under the system, unless such member elects to participate in
2011the Senior Management Service Optional Annuity Program in lieu
2012of the Senior Management Service Class, as provided in s.
2013121.055(6).
2014     (b)  Such member shall not be entitled to disability
2015benefits as provided in s. 121.091(4).
2016     (c)  Such member must meet the reemployment after
2017retirement limitations as provided in s. 121.091(9), as
2018applicable.
2019     (3)(2)  Upon renewed membership or reemployment of a
2020retiree, the employer of such member shall pay the applicable
2021employer contributions as required by ss. 121.71, 121.74,
2022121.76, and 112.363 121.055(3) and 121.071(1)(a) and (4).
2023     (4)(3)  The retiree of a state-administered retirement
2024system who is initially reemployed before January 1, 2010, Such
2025member shall be entitled to purchase additional retirement
2026credit in the Regular Class or the Senior Management Service
2027Class, as applicable, for any postretirement service performed
2028in a regularly established position as follows:
2029     (a)  For regular class service prior to July 1, 1991, by
2030paying the Regular Class applicable employee and employer
2031contributions for the period being claimed, plus 4 percent
2032interest compounded annually from first year of service claimed
2033until July 1, 1975, and 6.5 percent interest compounded
2034thereafter, until full payment is made to the Florida Retirement
2035System Trust Fund; or
2036     (b)  For Senior Management Service Class prior to June 1,
20371997, as provided in s. 121.055(1)(j).
2038
2039The contribution for postretirement service between July 1,
20401985, and July 1, 1991, for which the reemployed retiree
2041contribution was paid, shall be the difference between such
2042contribution and the total applicable contribution for the
2043period being claimed, plus interest. The employer of such member
2044may pay the applicable employer contribution in lieu of the
2045member. If a member does not wish to claim credit for all of the
2046postretirement service for which he or she is eligible, the
2047service the member claims must be the most recent service.
2048     (5)(4)  No creditable service for which credit was
2049received, or which remained unclaimed, at retirement may be
2050claimed or applied toward service credit earned following
2051renewed membership. However, for retirees initially reemployed
2052before January 1, 2010, service earned as an elected officer
2053with renewed membership in the Elected Officers' Class may be
2054used in conjunction with creditable service earned under this
2055section, provided the applicable vesting requirements and other
2056existing statutory conditions required by this chapter are met.
2057     (6)(5)  Notwithstanding any other limitations provided in
2058this section, a participant of the State University System
2059Optional Retirement Program, the State Community College
2060Optional Retirement Program, or the Senior Management Service
2061Optional Annuity Program who terminated employment and commenced
2062receiving a distribution an annuity under the provisions of the
2063optional program, who initially renews membership before January
20641, 2010, in the Regular Class as required by this section upon
2065reemployment after retirement, and who had previously earned
2066creditable Florida Retirement System service that was not
2067included in any retirement benefit may include such previous
2068service toward vesting and service credit in the second career
2069benefit provided under renewed membership.
2070     (7)(6)  Any renewed member who is not receiving the maximum
2071health insurance subsidy provided in s. 112.363 shall be
2072entitled to earn additional credit toward the maximum health
2073insurance subsidy. Any additional subsidy due because of such
2074additional credit shall be received only at the time of payment
2075of the second career retirement benefit. In no case shall the
2076total health insurance subsidy received by a retiree receiving
2077benefits from initial and renewed membership exceed the maximum
2078allowed in s. 112.363.
2079     Section 13.  Section 121.136, Florida Statutes, is amended
2080to read:
2081     121.136  Annual benefit statement to members.--Each year
2082Beginning January 1, 1993, and each January thereafter, the
2083department shall provide each active member of the Florida
2084Retirement System with 5 or more years of creditable service an
2085annual statement of benefits that provides. Such statement
2086should provide the member with basic data about the member's
2087retirement account. At a minimum Minimally, it must shall
2088include the member's retirement plan, accrued service credit the
2089amount of funds on deposit in the retirement account, and an
2090estimate of retirement benefits.
2091     Section 14.  Section 121.1905, Florida Statutes, is amended
2092to read:
2093     121.1905  Division of Retirement; creation.--
2094     (1)  There is created the Division of Retirement within the
2095Department of Management Services.
2096     (2)  The mission of the Division of Retirement is to
2097provide quality and cost-effective retirement services as
2098measured by member satisfaction and by comparison with
2099administrative costs of comparable retirement systems.
2100     Section 15.  Paragraph (a) of subsection (2) of section
2101121.23, Florida Statutes, is amended to read:
2102     121.23  Disability retirement and special risk membership
2103applications; Retirement Commission; powers and duties; judicial
2104review.--The provisions of this section apply to all proceedings
2105in which the administrator has made a written final decision on
2106the merits respecting applications for disability retirement,
2107reexamination of retired members receiving disability benefits,
2108applications for special risk membership, and reexamination of
2109special risk members in the Florida Retirement System. The
2110jurisdiction of the State Retirement Commission under this
2111section shall be limited to written final decisions of the
2112administrator on the merits.
2113     (2)  A member shall be entitled to a hearing before the
2114State Retirement Commission pursuant to ss. 120.569 and
2115120.57(1) on the merits of any written adverse decision of the
2116administrator, if he or she files with the commission a written
2117request for such hearing within 21 days after receipt of such
2118written decision from the administrator. For the purpose of such
2119hearings, the commission shall be an "agency head" as defined by
2120s. 120.52.
2121     (a)  The commission may shall have the authority to issue
2122orders as a result of the a hearing that are shall be binding on
2123all parties to the dispute and. The commission may order any
2124action that it deems appropriate. Any disability retirement
2125order of the commission that issued pursuant to this subsection
2126which sustains the application of the member may include an
2127amount, to be determined by the commission, for reasonable
2128attorney's fees and taxable costs, which shall be calculated in
2129accordance with the statewide uniform guidelines for taxation of
2130costs in civil actions. The amount of the attorney's fees fee
2131may not exceed 50 percent of the initial yearly benefit awarded
2132under s. 121.091(4). In cases involving disability retirement,
2133the State Retirement commission shall require the member to
2134present substantial competent medical evidence that meets the
2135requirements of s. 121.091(4)(c)2. and 3., and may require
2136vocational evidence, before awarding disability retirement
2137benefits.
2138     Section 16.  Paragraph (a) of subsection (1) of section
2139121.24, Florida Statutes, is amended to read:
2140     121.24  Conduct of commission business; legal and other
2141assistance; compensation.--
2142     (1)  The commission shall conduct its business within the
2143following guidelines:
2144     (a)  For purposes of hearing appeals under s. 121.23, the
2145commission may meet in panels consisting of no not fewer than
2146three members. For the purpose of meeting in these panels, a
2147quorum shall be not fewer than two members. For all other
2148purposes, A quorum shall consist of three members. The
2149concurring vote of a majority of the members present is shall be
2150required to reach a decision, issue orders, and conduct the
2151business of the commission.
2152     Section 17.  Paragraph (h) of subsection (3) and paragraphs
2153(a) and (e) of subsection (5) of section 121.35, Florida
2154Statutes, are amended, and paragraph (g) is added to subsection
2155(5) of that section, to read:
2156     121.35  Optional retirement program for the State
2157University System.--
2158     (3)  ELECTION OF OPTIONAL PROGRAM.--
2159     (h)  A participant in the optional retirement program may
2160not participate in more than one state-administered retirement
2161system, plan, or class simultaneously. Except as provided in s.
2162121.052(6)(d), a participant who is or becomes dually employed
2163in two or more positions covered by the Florida Retirement
2164System, one of which is eligible for the optional program and
2165one of which is not, may remain a member of the optional program
2166and contributions shall be paid as required only on the salary
2167earned in the position eligible for the optional program during
2168such period of dual employment; or, within 90 days after
2169becoming dually employed, he or she may elect membership in the
2170Regular Class of the Florida Retirement System in lieu of the
2171optional program and contributions shall be paid as required on
2172the total salary received for all employment. At retirement, the
2173average final compensation used to calculate any benefits for
2174which the member becomes eligible under the Florida Retirement
2175System shall be based on all salary reported for both positions
2176during such period of dual employment. When such member ceases
2177to be dually employed, he or she may, within 90 days, elect to
2178remain in the Florida Retirement System class for which he or
2179she is eligible or to again become a participant in the optional
2180retirement program. Failure to elect membership in the optional
2181program within 90 days shall result in compulsory membership in
2182the Florida Retirement System, except that a member filling a
2183faculty position at under a college with a faculty practice plan
2184at the University of Florida, or the medical center at the
2185University of South Florida, or any other state university shall
2186again participate in the optional retirement program as required
2187in s. 121.051(1)(a).
2188     (5)  BENEFITS.--
2189     (a)  Benefits shall be payable under the optional
2190retirement program only to vested participants in the program,
2191or their beneficiaries as designated by the participant in the
2192contract with a provider company, and such benefits shall be
2193paid only by the designated company in accordance with s. 403(b)
2194of the Internal Revenue Code and in accordance with the terms of
2195the annuity contract or contracts applicable to the participant.
2196Benefits shall accrue in individual accounts that are
2197participant-directed, portable, and funded by employer
2198contributions and the earnings thereon. The participant must be
2199terminated from all employment with all Florida Retirement
2200System employers, as provided in s. 121.021(39), to begin
2201receiving the employer-funded benefit. Benefits funded by
2202employer contributions shall be payable in accordance with the
2203following terms and conditions:
2204     1.  Benefits shall be payable only to a participant, to his
2205or her beneficiaries, or to his or her estate, as designated by
2206the participant.
2207     2.  Benefits shall be paid by the provider company or
2208companies in accordance with the law, the provisions of the
2209contract, and any applicable department board rule or policy.
2210     3.  In the event of a participant's death, moneys
2211accumulated by, or on behalf of, the participant, less
2212withholding taxes remitted to the Internal Revenue Service, if
2213any, shall be distributed to the participant's designated
2214beneficiary or beneficiaries, or to the participant's estate, as
2215if the participant retired on the date of death, as provided in
2216paragraph (c). No other death benefits shall be available for
2217survivors of participants under the optional retirement program
2218except for such benefits, or coverage for such benefits, as are
2219separately afforded by the employer, at the employer's
2220discretion.
2221     (e)  A participant who chooses to receive his or her
2222benefits upon termination of employment as defined in s.
2223121.021(39) shall have responsibility to notify the provider
2224company of the date on which he or she wishes benefits funded by
2225employer contributions to begin. Benefits may be deferred until
2226such time as the participant chooses to make such application.
2227     (g)  For purposes of this section, "retiree" means a former
2228participant of the optional retirement program who has
2229terminated employment and has taken a distribution as provided
2230in this subsection, except for a mandatory distribution of a de
2231minimis account authorized by the department.
2232     Section 18.  Paragraph (f) of subsection (2) of section
2233121.4501, Florida Statutes, is amended to read:
2234     121.4501  Public Employee Optional Retirement Program.--
2235     (2)  DEFINITIONS.--As used in this part, the term:
2236     (f)  "Eligible employee" means an officer or employee, as
2237defined in s. 121.021(11), who:
2238     1.  Is a member of, or is eligible for membership in, the
2239Florida Retirement System, including any renewed member of the
2240Florida Retirement System initially enrolled before January 1,
22412010; or
2242     2.  Participates in, or is eligible to participate in, the
2243Senior Management Service Optional Annuity Program as
2244established under s. 121.055(6), the State Community College
2245System Optional Retirement Program as established under s.
2246121.051(2)(c), or the State University System Optional
2247Retirement Program established under s. 121.35.
2248
2249The term does not include any member participating in the
2250Deferred Retirement Option Program established under s.
2251121.091(13), a retiree of a state-administered retirement system
2252initially reemployed on or after January 1, 2010, or a mandatory
2253participant of the State University System Optional Retirement
2254Program established under s. 121.35.
2255     Section 19.  Paragraph (b) of subsection (1) of section
2256121.591, Florida Statutes, is amended to read:
2257     121.591  Benefits payable under the Public Employee
2258Optional Retirement Program of the Florida Retirement
2259System.--Benefits may not be paid under this section unless the
2260member has terminated employment as provided in s.
2261121.021(39)(a) or is deceased and a proper application has been
2262filed in the manner prescribed by the state board or the
2263department. The state board or department, as appropriate, may
2264cancel an application for retirement benefits when the member or
2265beneficiary fails to timely provide the information and
2266documents required by this chapter and the rules of the state
2267board and department. In accordance with their respective
2268responsibilities as provided herein, the State Board of
2269Administration and the Department of Management Services shall
2270adopt rules establishing procedures for application for
2271retirement benefits and for the cancellation of such application
2272when the required information or documents are not received. The
2273State Board of Administration and the Department of Management
2274Services, as appropriate, are authorized to cash out a de
2275minimis account of a participant who has been terminated from
2276Florida Retirement System covered employment for a minimum of 6
2277calendar months. A de minimis account is an account containing
2278employer contributions and accumulated earnings of not more than
2279$5,000 made under the provisions of this chapter. Such cash-out
2280must either be a complete lump-sum liquidation of the account
2281balance, subject to the provisions of the Internal Revenue Code,
2282or a lump-sum direct rollover distribution paid directly to the
2283custodian of an eligible retirement plan, as defined by the
2284Internal Revenue Code, on behalf of the participant. If any
2285financial instrument issued for the payment of retirement
2286benefits under this section is not presented for payment within
2287180 days after the last day of the month in which it was
2288originally issued, the third-party administrator or other duly
2289authorized agent of the State Board of Administration shall
2290cancel the instrument and credit the amount of the instrument to
2291the suspense account of the Public Employee Optional Retirement
2292Program Trust Fund authorized under s. 121.4501(6). Any such
2293amounts transferred to the suspense account are payable upon a
2294proper application, not to include earnings thereon, as provided
2295in this section, within 10 years after the last day of the month
2296in which the instrument was originally issued, after which time
2297such amounts and any earnings thereon shall be forfeited. Any
2298such forfeited amounts are assets of the Public Employee
2299Optional Retirement Program Trust Fund and are not subject to
2300the provisions of chapter 717.
2301     (1)  NORMAL BENEFITS.--Under the Public Employee Optional
2302Retirement Program:
2303     (b)  If a participant elects to receive his or her benefits
2304upon termination of employment as defined in s. 121.021(39), the
2305participant must submit a written application or an equivalent
2306form to the third-party administrator indicating his or her
2307preferred distribution date and selecting an authorized method
2308of distribution as provided in paragraph (c). The participant
2309may defer receipt of benefits until he or she chooses to make
2310such application, subject to federal requirements.
2311     Section 20.  Subsection (1) of section 238.183, Florida
2312Statutes, is amended to read:
2313     238.183  Developmental research school and Florida School
2314for the Deaf and the Blind instructional personnel; reemployment
2315after retirement.--
2316     (1)  Notwithstanding any other law, instructional
2317personnel, as defined in s. 1012.01(2), employed by a
2318developmental research school or the Florida School for the Deaf
2319and the Blind are eligible for reemployment after retirement in
2320the same manner as classroom teachers who are employed by the
2321district school boards, as described in ss.
2322121.091(9)(b)2.b.(I)3. and 238.181(2)(c).
2323     Section 21.  Paragraph (g) of subsection (3) and subsection
2324(8) of section 1012.33, Florida Statutes, are amended to read:
2325     1012.33  Contracts with instructional staff, supervisors,
2326and school principals.--
2327     (3)
2328     (g)  Beginning July 1, 2001, for each employee who enters
2329into a written contract, pursuant to this section, in a school
2330district in which the employee was not employed as of June 30,
23312001, or was employed as of June 30, 2001, but has since broken
2332employment with that district for 1 school year or more, for
2333purposes of pay, a district school board must recognize and
2334accept each year of full-time public school teaching service
2335earned in the State of Florida or outside the state and for
2336which the employee received a satisfactory performance
2337evaluation. Instructional personnel employed pursuant to s.
2338121.091(9)(b)2.b.(I)3. are exempt from the provisions of this
2339paragraph.
2340     (8)  Notwithstanding any other provision of law, a retired
2341any member who has retired may interrupt retirement and be
2342reemployed in any public school. A Any member so reemployed by
2343the same district from which he or she retired may be employed
2344on a probationary contractual basis as provided in subsection
2345(1); however, no regular retirement employee shall be eligible
2346to renew membership under a retirement system created by chapter
2347121 or chapter 238.
2348     Section 22.  Sections 121.093, 121.094, and 121.45, Florida
2349Statutes, are repealed.
2350     Section 23.  The Legislature finds that a proper and
2351legitimate state purpose is served when employees and retirees
2352of the state and its political subdivisions, as well as the
2353dependents, survivors, and beneficiaries of such employees and
2354retirees, are extended the basic protections afforded by
2355governmental retirement systems that provide fair and adequate
2356benefits and that are managed, administered, and funded in an
2357actuarially sound manner as required by s. 14, Art. X of the
2358State Constitution and part VII of chapter 112, Florida
2359Statutes. Therefore, the Legislature determines and declares
2360that the amendment of s. 121.091, Florida Statutes, by this act
2361fulfills an important state interest.
2362     Section 24.  This act shall take effect July 1, 2009.
2363


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