CS/CS/HB 479

1	A bill to be entitled
2	An act relating to retirement; amending s. 121.021, F.S.;
3	redefining the terms "employer," "officer or employee,"
4	"past service," "normal retirement date," "termination,"
5	"regularly established position," and "temporary
6	position"; defining the terms "state board" and
7	"trustees"; amending s. 121.031, F.S.; requiring
8	promotional materials that refer to the Florida Retirement
9	System to include a disclaimer unless approval is obtained
10	from the Department of Management Services or the State
11	Board of Administration; amending s. 121.051, F.S.;
12	conforming a cross-reference; clarifying when a State
13	Community College System Optional Retirement Program
14	participant is considered a retiree; revising provisions
15	relating to participation in the Florida Retirement System
16	by certain employers; excluding the participation of
17	certain entities under a lease agreement; amending s.
18	121.052, F.S.; revising membership criteria for the
19	Elected Officers' Class; revising when a governing body of
20	a municipality or special district may elect to designate
21	its elected positions for inclusion in the Elected
22	Officers' Class; amending s. 121.053, F.S.; revising
23	provisions relating to a retiree's participation in the
24	Elected Officers' Class; providing that a retiree who is
25	elected after a certain date may not reenroll in the
26	Florida Retirement System and may not continue to earn
27	interest on his or her DROP account after the end of the
28	60-month DROP period; amending s. 121.055, F.S.; providing
29	that a retiree of that class who is reemployed as an
30	elected official may not renew membership in the Senior
31	Management Class or the Senior Management Annuity Program;
32	revising provisions relating to de minimis accounts;
33	amending s. 121.071, F.S.; providing an additional
34	mechanism for the payment of employee contributions to the
35	system; amending s. 121.081, F.S.; providing for receipt
36	of credit for past or prior service by charter school and
37	charter technical career center employees; prohibiting a
38	member from receiving credit for service covered and
39	reported by both a public employer and a private employer;
40	amending s. 121.091, F.S.; revising and clarifying
41	provisions relating to employment after retirement;
42	authorizing developmental research schools and charter
43	schools to reemploy certain retired members under
44	specified conditions; providing that retirees of a state-
45	administered retirement system who retire after a certain
46	date may not be reemployed by an employer participating in
47	the Florida Retirement System for 6 months after
48	terminating employment and may not renew membership in the
49	Florida Retirement System; revising provisions relating to
50	reemployment of participants in the Deferred Retirement
51	Option Program; providing that certain members who delay
52	DROP participation lose a month of DROP participation for
53	each month delayed; increasing the maximum period of
54	participation for instructional personnel in a
55	developmental research school; deleting obsolete
56	provisions; clarifying that DROP participation may not be
57	canceled; providing for the suspension of DROP
58	participation of an elected officer who is reemployed;
59	providing that the retirement benefits of a participant
60	who is reemployed within a certin time after retirement
61	are suspended and must be paid back; authorizing the
62	Division of Retirement to issue benefits pursuant to a
63	qualified domestic relations order directly to the
64	alternate payee; amending s. 121.1115, F.S.; revising
65	provisions relating to receiving retirement credit for
66	out-of-state service; providing that a member is not
67	eligible for and may not receive a benefit based on such
68	service; amending s. 121.1122, F.S.; revising provisions
69	relating to receiving retirement credit for in-state
70	service; providing that certain members are not eligible
71	to purchase service credit; amending s. 121.122, F.S.;
72	revising provisions relating to renewed membership in
73	retirement system; providing that retirees initially
74	reemployed on or after a specified date are ineligible for
75	renewed membership in the system; amending s. 121.136,
76	F.S.; revising provisions relating to the annual statement
77	of benefits provided to certain active members of the
78	system; amending s. 121.1905, F.S.; deleting a provision
79	describing the mission of the Division of Retirement;
80	amending s. 121.23, F.S.; clarifying the criteria for
81	medical evidence that a member must submit to the
82	Retirement Commission for before awarding disability
83	retirement benefits; amending s. 121.24, F.S.; requiring a
84	quorum of three members for all appeal hearings held by
85	the retirement commission; amending s. 121.35, F.S.;
86	revising provisions relating to membership in the State
87	University Optional Retirement Program; defining the term
88	"retiree" for purposes of the program; amending s.
89	121.4501, F.S.; revising the definition of "eligible
90	employee" for purposes of the Public Employee Optional
91	Retirement Program; amending ss. 121.591 and 238.183,
92	F.S.; providing and conforming cross-references; amending
93	s. 1012.33, F.S.; deleting a provision preventing persons
94	who have retired from the public school system from
95	renewing membership in the Florida Retirement System or
96	Teachers' Retirement System upon reemployment by the
97	school system; repealing s. 121.093, F.S., relating to
98	instructional personnel reemployment after retirement from
99	a developmental research school or the Florida School for
100	the Deaf and the Blind; repealing s. 121.094, F.S.,
101	relating to instructional personnel reemployment after
102	retirement from a charter school; repealing s. 121.45,
103	F.S., relating to interstate compacts relating to pension
104	portability; providing a declaration of important state
105	interest; providing an effective date.
106
107	Be It Enacted by the Legislature of the State of Florida:
108
109	Section 1.  Subsections (10), (11), (18), (29), (39), (52),
110	and (53) of section 121.021, Florida Statutes, are amended, and
111	subsections (63) and (64) are added to that section, to read:
112	121.021  Definitions.--The following words and phrases as
113	used in this chapter have the respective meanings set forth
114	unless a different meaning is plainly required by the context:
115	(10)  "Employer" means any agency, branch, department,
116	institution, university, institution of higher education, or
117	board of the state, or any county agency, branch, department,
118	board, district school board, municipality, metropolitan
119	planning organization, or special district of the state, or any
120	city of the state which participates in the system for the
121	benefit of certain of its employees, or a charter school or
122	charter technical career center that participates as provided in
123	s. 121.051(2)(d). Employers are not agents of the department,
124	the state board, or the Division of Retirement, and the
125	department, the state board, and the division are not
126	responsible for erroneous information provided by
127	representatives of employers.
128	(11)  "Officer or employee" means any person receiving
129	salary payments for work performed in a regularly established
130	position and, if employed by a municipality city, a metropolitan
131	planning organization, or a special district, employed in a
132	covered group. The term does not apply to state employees
133	covered by a leasing agreement under s. 110.191, other public
134	employees covered by a leasing agreement, or a co-employer
135	relationship.
136	(18)  "Past service" of any member, as provided in s.
137	121.081(1), means the number of years and complete months and
138	any fractional part of a month, recognized and credited by an
139	employer and approved by the administrator, during which the
140	member was in the active employ of a governmental an employer
141	and for which the employee is not entitled to a benefit before
142	prior to his or her date of participation.
143	(29)  "Normal retirement date" means the first day of any
144	month following the date a member attains normal retirement age
145	and is vested, which is determined as follows one of the
146	following statuses:
147	(a)  If a Regular Class member, a Senior Management Service
148	Class member, or an Elected Officers' Class the member:
149	1.  The first day of the month the member completes 6 or
150	more years of creditable service and attains age 62; or
151	2.  The first day of the month following the date the
152	member completes 30 years of creditable service, regardless of
153	age, which may include a maximum of 4 years of military service
154	credit as long as such credit is not claimed under any other
155	system.
156	(b)  If a Special Risk Class member, the member:
157	1.  The first day of the month the member completes 6 or
158	more years of creditable service in the Special Risk Class and
159	attains age 55;
160	2.  The first day of the month following the date the
161	member completes 25 years of creditable service in the Special
162	Risk Class, regardless of age; or
163	3.  The first day of the month following the date the
164	member completes 25 years of creditable service and attains age
165	52, which service may include a maximum of 4 years of military
166	service credit as long as such credit is not claimed under any
167	other system and the remaining years are in the Special Risk
168	Class.
169	(c)  If a Senior Management Service Class member, the
170	member:
171	1.  Completes 6 years of creditable service in the Senior
172	Management Service Class and attains age 62; or
173	2.  Completes 30 years of any creditable service,
174	regardless of age, which may include a maximum of 4 years of
175	military service credit as long as such credit is not claimed
176	under any other system.
177	(d)  If an Elected Officers' Class member, the member:
178	1.  Completes 6 years of creditable service in the Elected
179	Officers' Class and attains age 62; or
180	2.  Completes 30 years of any creditable service,
181	regardless of age, which may include a maximum of 4 years of
182	military service credit as long as such credit is not claimed
183	under any other system.
184
185	"Normal retirement age" is attained on the "normal retirement
186	date."
187	(39)(a)  "Termination" occurs, except as provided in
188	paragraph (b), when a member ceases all employment relationships
189	with an employer, however: employers under this system, as
190	defined in subsection (10), but in the event
191	1.  For retirements effective before July 1, 2010, if a
192	member is should be employed by any such employer within the
193	next calendar month, termination shall be deemed not to have
194	occurred. A leave of absence constitutes shall constitute a
195	continuation of the employment relationship, except that a leave
196	of absence without pay due to disability may constitute
197	termination for a member, if such member makes application for
198	and is approved for disability retirement in accordance with s.
199	121.091(4). The department or state board may require other
200	evidence of termination as it deems necessary.
201	2.  For retirements effective on or after July 1, 2010, if
202	a member is employed by any such employer within the next 6
203	calendar months, termination shall be deemed not to have
204	occurred. A leave of absence constitutes a continuation of the
205	employment relationship, except that a leave of absence without
206	pay due to disability may constitute termination if such member
207	makes application for and is approved for disability retirement
208	in accordance with s. 121.091(4). The department or state board
209	may require other evidence of termination as it deems necessary.
210	(b)  "Termination" for a member electing to participate in
211	under the Deferred Retirement Option Program occurs when the
212	Deferred Retirement Option program participant ceases all
213	employment relationships with an employer employers under this
214	system in accordance with s. 121.091(13), however: but
215	1.  For termination dates occurring before July 1, 2010, if
216	in the event the Deferred Retirement Option Program participant
217	is should be employed by any such employer within the next
218	calendar month, termination will be deemed not to have occurred,
219	except as provided in s. 121.091(13)(b)4.c. A leave of absence
220	shall constitute a continuation of the employment relationship.
221	2.  For termination dates occurring on or after July 1,
222	2010, if the participant becomes employed by any such employer
223	within the next 6 calendar months, termination will be deemed
224	not to have occurred, except as provided in s.
225	121.091(13)(b)4.c. A leave of absence constitutes a continuation
226	of the employment relationship.
227	(52)  "Regularly established position" means is defined as
228	follows:
229	(a)  With respect to In a state employer agency, the term
230	means a position that which is authorized and established
231	pursuant to law and is compensated from a salaries and benefits
232	appropriation pursuant to s. 216.011(1)(mm)(dd), or an
233	established position that which is authorized pursuant to s.
234	216.262(1)(a) and (b) and is compensated from a salaries account
235	as provided in s. 216.011(1)(nn) by rule.
236	(b)  With respect to In a local agency employer agency
237	(district school board, county agency, community college,
238	municipality city, metropolitan planning organization, charter
239	school, charter technical career center, or special district),
240	the term means a regularly established position that which will
241	be in existence for a period beyond 6 consecutive months, except
242	as provided by rule.
243	(53)  "Temporary position" means is defined as follows:
244	(a)  With respect to In a state employer agency, a the term
245	means an employment position that which is compensated from an
246	other personal services (OPS) account, as provided for in s.
247	216.011(1)(dd).
248	(b)  With respect to In a local agency employer agency, a
249	the term means an employment position that which will exist for
250	less than 6 consecutive months, or other employment position as
251	determined by rule of the division, regardless of whether it
252	will exist for 6 consecutive months or longer.
253	(63)  "State board" means the State Board of
254	Administration.
255	(64)  "Trustees" means the Board of Trustees of the State
256	Board of Administration.
257	Section 2.  Subsection (6) is added to section 121.031,
258	Florida Statutes, to read:
259	121.031  Administration of system; appropriation; oaths;
260	actuarial studies; public records.--
261	(6)  Unless prior written approval is obtained from the
262	department or state board, any promotional materials or
263	advertisements that, directly or indirectly, refer to the
264	"Florida Retirement System" or the "FRS" must contain a
265	disclaimer that the information is not approved or endorsed by
266	the Florida Retirement System.
267	Section 3.  Paragraph (a) of subsection (1) and paragraphs
268	(c) and (f) of subsection (2) of section 121.051, Florida
269	Statutes, are amended to read:
270	121.051  Participation in the system.--
271	(1)  COMPULSORY PARTICIPATION.--
272	(a)  Participation in the Florida Retirement System is The
273	provisions of this law shall be compulsory for as to all
274	officers and employees, except elected officers who meet the
275	requirements of s. 121.052(3), who are employed on or after
276	December 1, 1970, by of an employer other than those referred to
277	in paragraph (2)(b)., and Each officer or employee, as a
278	condition of employment, becomes shall become a member of the
279	system on the as of his or her date of employment, except that a
280	person who is retired from any state retirement system and is
281	reemployed on or after December 1, 1970, may not renew his or
282	her membership in any state retirement system except as provided
283	in s. 121.091(4)(h) for a person who recovers from disability,
284	and as provided in s. 121.053 s. 121.091(9)(b)8. for a person
285	who is elected to public office, and, effective July 1, 1991, as
286	provided in s. 121.122 for all other retirees.
287	1.  Officers and employees of the University Athletic
288	Association, Inc., a nonprofit association connected with the
289	University of Florida, employed on and after July 1, 1979, may
290	shall not participate in any state-supported retirement system.
291	2.1.  Any person appointed on or after July 1, 1989, to a
292	faculty position in a college at the J. Hillis Miller Health
293	Center at the University of Florida or the Medical Center at the
294	University of South Florida which has a faculty practice plan
295	adopted provided by rule adopted by the Board of Regents may not
296	participate in the Florida Retirement System. Effective July 1,
297	2008, any person appointed thereafter to a faculty position,
298	including clinical faculty, in a college at a state university
299	that has a faculty practice plan authorized by the Board of
300	Governors may not participate in the Florida Retirement System.
301	A faculty member so appointed shall participate in the optional
302	retirement program for the State University System
303	notwithstanding the provisions of s. 121.35(2)(a).
304	2.  For purposes of this subparagraph paragraph, the term:
305	a.  "Faculty position" means is defined as a position
306	assigned the principal responsibility of teaching, research, or
307	public service activities or administrative responsibility
308	directly related to the academic mission of the college. The
309	term
310	b.  "Clinical faculty" means is defined as a faculty
311	position appointment in conjunction with a professional position
312	in a hospital or other clinical environment at a college. The
313	term
314	c.  "Faculty practice plan" includes professional services
315	to patients, institutions, or other parties which are rendered
316	by the clinical faculty employed by a college that has a faculty
317	practice plan at a state university authorized by the Board of
318	Governors.
319	(2)  OPTIONAL PARTICIPATION.--
320	(c)  Employees of public community colleges or charter
321	technical career centers sponsored by public community colleges,
322	as designated in s. 1000.21(3), who are members of the Regular
323	Class of the Florida Retirement System and who comply with the
324	criteria set forth in this paragraph and in s. 1012.875 may
325	elect, in lieu of participating in the Florida Retirement
326	System, elect to withdraw from the Florida Retirement system
327	altogether and participate in the State Community College System
328	an Optional Retirement Program provided by the employing agency
329	under s. 1012.875, to be known as the State Community College
330	System Optional Retirement Program. Pursuant thereto:
331	1.  Through June 30, 2001, the cost to the employer for
332	such annuity equals shall equal the normal cost portion of the
333	employer retirement contribution which would be required if the
334	employee were a member of the Regular Class defined benefit
335	program, plus the portion of the contribution rate required by
336	s. 112.363(8) which that would otherwise be assigned to the
337	Retiree Health Insurance Subsidy Trust Fund. Effective July 1,
338	2001, each employer shall contribute on behalf of each
339	participant in the optional program an amount equal to 10.43
340	percent of the participant's gross monthly compensation. The
341	employer shall deduct an amount to provide for the
342	administration of the optional retirement program. The employer
343	providing the optional program shall contribute an additional
344	amount to the Florida Retirement System Trust Fund equal to the
345	unfunded actuarial accrued liability portion of the Regular
346	Class contribution rate.
347	2.  The decision to participate in such an optional
348	retirement program is shall be irrevocable for as long as the
349	employee holds a position eligible for participation, except as
350	provided in subparagraph 3. Any service creditable under the
351	Florida Retirement System is shall be retained after the member
352	withdraws from the Florida Retirement system; however,
353	additional service credit in the Florida Retirement system may
354	shall not be earned while a member of the optional retirement
355	program.
356	3.  An employee who has elected to participate in the
357	optional retirement program shall have one opportunity, at the
358	employee's discretion, to choose to transfer from the optional
359	retirement program to the defined benefit program of the Florida
360	Retirement System or to the Public Employee Optional Retirement
361	Program, subject to the terms of the applicable optional
362	retirement program contracts.
363	a.  If the employee chooses to move to the Public Employee
364	Optional Retirement Program, any contributions, interest, and
365	earnings creditable to the employee under the State Community
366	College System Optional Retirement Program is shall be retained
367	by the employee in the State Community College System Optional
368	Retirement Program, and the applicable provisions of s.
369	121.4501(4) shall govern the election.
370	b.  If the employee chooses to move to the defined benefit
371	program of the Florida Retirement System, the employee shall
372	receive service credit equal to his or her years of service
373	under the State Community College System Optional Retirement
374	Program.
375	(I)  The cost for such credit is the shall be an amount
376	representing the present value of the that employee's
377	accumulated benefit obligation for the affected period of
378	service. The cost shall be calculated as if the benefit
379	commencement occurs on the first date the employee becomes would
380	become eligible for unreduced benefits, using the discount rate
381	and other relevant actuarial assumptions that were used to value
382	the Florida Retirement System defined benefit plan liabilities
383	in the most recent actuarial valuation. The calculation must
384	shall include any service already maintained under the defined
385	benefit plan in addition to the years under the State Community
386	College System Optional Retirement Program. The present value of
387	any service already maintained must under the defined benefit
388	plan shall be applied as a credit to total cost resulting from
389	the calculation. The division shall ensure that the transfer sum
390	is prepared using a formula and methodology certified by an
391	enrolled actuary.
392	(II)  The employee must transfer from his or her State
393	Community College System Optional Retirement Program account and
394	from other employee moneys as necessary, a sum representing the
395	present value of the that employee's accumulated benefit
396	obligation immediately following the time of such movement,
397	determined assuming that attained service equals the sum of
398	service in the defined benefit program and service in the State
399	Community College System Optional Retirement Program.
400	4.  Participation in the optional retirement program is
401	shall be limited to those employees who satisfy the following
402	eligibility criteria:
403	a.  The employee must be otherwise eligible for membership
404	or renewed membership in the Regular Class of the Florida
405	Retirement System, as provided in s. 121.021(11) and (12) or s.
406	121.122.
407	b.  The employee must be employed in a full-time position
408	classified in the Accounting Manual for Florida's Public
409	Community Colleges as:
410	(I)  Instructional; or
411	(II)  Executive Management, Instructional Management, or
412	Institutional Management, if a community college determines that
413	recruiting to fill a vacancy in the position is to be conducted
414	in the national or regional market, and:
415	(A)  the duties and responsibilities of the position
416	include either the formulation, interpretation, or
417	implementation of policies,; or
418	(B)  The duties and responsibilities of the position
419	include the performance of functions that are unique or
420	specialized within higher education and that frequently involve
421	the support of the mission of the community college.
422	c.  The employee must be employed in a position not
423	included in the Senior Management Service Class of the Florida
424	Retirement System, as described in s. 121.055.
425	5.  Participants in the program are subject to the same
426	reemployment limitations, renewed membership provisions, and
427	forfeiture provisions as are applicable to regular members of
428	the Florida Retirement System under ss. 121.091(9), 121.122, and
429	121.091(5), respectively. A participant who receives a program
430	distribution funded by employer contributions shall be deemed to
431	be retired from a state-administered retirement system if the
432	participant is subsequently employed with an employer that
433	participates in the Florida Retirement System.
434	6.  Eligible community college employees are shall be
435	compulsory members of the Florida Retirement System until,
436	pursuant to the procedures set forth in s. 1012.875, a written
437	election to withdraw from the Florida Retirement system and to
438	participate in the State Community College System Optional
439	Retirement Program is filed with the program administrator and
440	received by the division.
441	a.  A Any community college employee whose program
442	eligibility results from initial employment must shall be
443	enrolled in the State Community College System Optional
444	Retirement Program retroactive to the first day of eligible
445	employment. The employer retirement contributions paid through
446	the month of the employee plan change shall be transferred to
447	the community college to for the employee's optional program
448	account, and, effective the first day of the next month, the
449	employer shall pay the applicable contributions based upon
450	subparagraph 1.
451	b.  A Any community college employee whose program
452	eligibility is results from a change in status due to the
453	subsequent designation of the employee's position as one of
454	those specified in subparagraph 4., or due to the employee's
455	appointment, promotion, transfer, or reclassification to a
456	position specified in subparagraph 4., must shall be enrolled in
457	the program on upon the first day of the first full calendar
458	month that such change in status becomes effective. The employer
459	retirement contributions paid from the effective date through
460	the month of the employee plan change must shall be transferred
461	to the community college to for the employee's optional program
462	account, and, effective the first day of the next month, the
463	employer shall pay the applicable contributions based upon
464	subparagraph 1.
465	7.  Effective July 1, 2003, through December 31, 2008, any
466	participant of the State Community College System Optional
467	Retirement Program who has service credit in the defined benefit
468	plan of the Florida Retirement System for the period between his
469	or her first eligibility to transfer from the defined benefit
470	plan to the optional retirement program and the actual date of
471	transfer may, during his or her employment, elect to transfer to
472	the optional retirement program a sum representing the present
473	value of the accumulated benefit obligation under the defined
474	benefit retirement program for the such period of service
475	credit. Upon such transfer, all such service credit previously
476	earned under the defined benefit program of the Florida
477	Retirement System during this period is shall be nullified for
478	purposes of entitlement to a future benefit under the defined
479	benefit program of the Florida Retirement System.
480	(f)1.  If Whenever an employer that participates in the
481	Florida Retirement System undertakes the transfer, merger, or
482	consolidation of governmental services or assumes the functions
483	and activities of an employing governmental entity that was not
484	an employer under the system, the employer must notify the
485	department at least 60 days before prior to such action and
486	shall provide documentation as required by the department. The
487	transfer, merger, or consolidation of governmental services or
488	assumption of governmental functions and activities must occur
489	between public employers. The current or former employer may pay
490	the employees' past service cost, unless prohibited under this
491	chapter. This subparagraph does not apply to the transfer,
492	merger, or consolidation of governmental services or assumption
493	of functions and activities of a public entity under a leasing
494	agreement having a co-employer relationship. Employers and
495	employees of a public governmental employer whose service is
496	covered by a leasing agreement under s. 110.191, any other
497	leasing agreement, or a co-employer relationship are not
498	eligible to participate in the Florida Retirement System.
499	2.  If When the agency to which a member's employing unit
500	is transferred, merged, or consolidated does not participate in
501	the Florida Retirement System, a member may shall elect in
502	writing to remain in the Florida Retirement System or to
503	transfer to the local retirement system operated by the such
504	agency. If the such agency does not participate in a local
505	retirement system, the member shall continue membership in the
506	Florida Retirement System. In either case, the membership
507	continues shall continue for as long as the member is employed
508	by the agency to which his or her unit was transferred, merged,
509	or consolidated.
510	Section 4.  Paragraph (f) of subsection (2) and paragraph
511	(e) of subsection (3) of section 121.052, Florida Statutes, are
512	amended to read:
513	121.052  Membership class of elected officers.--
514	(2)  MEMBERSHIP.--The following holders of elective office,
515	hereinafter referred to as "elected officers," whether assuming
516	elective office by election, reelection, or appointment, are
517	members of the Elected Officers' Class, except as provided in
518	subsection (3):
519	(f)  Any elected officer of a municipality or special
520	district assuming office on or after July 1, 1997, through June
521	30, 2009, as provided in paragraph (3)(e). On or after January
522	1, 2010, an elected officer shall become a member only if the
523	governing body of the municipality or special district, at the
524	time it joins the Florida Retirement System for its elected
525	officers, elects, by majority vote, to include all its elected
526	positions in the Elected Officers' Class.
527	(3)  PARTICIPATION AND WITHDRAWAL, GENERALLY.--Effective
528	July 1, 1990, participation in the Elected Officers' Class shall
529	be compulsory for elected officers listed in paragraphs (2)(a)-
530	(d) and (f) assuming office on or after said date, unless the
531	elected officer elects membership in another class or withdraws
532	from the Florida Retirement System as provided in paragraphs
533	(3)(a)-(d):
534	(e)  Effective July 1, 2001, The governing body of a
535	municipality or special district may, by majority vote, elect to
536	designate all its elected positions for inclusion in the Elected
537	Officers' Class as follows.
538	1.  Effective July 1, 1997, such election must be made
539	between July 1, 1997, and December 31, 1997, and is irrevocable.
540	The designation of such positions is effective the first day of
541	the month following receipt by the department of the ordinance
542	or resolution passed by the governing body.
543	2.  Effective July 1, 2001, such election must shall be
544	made between July 1, 2001, and December 31, 2001, and is shall
545	be irrevocable. The designation of such positions is shall be
546	effective the first day of the month following receipt by the
547	department of the ordinance or resolution passed by the
548	governing body.
549	3. Effective July 1, 2009, such election must be made
550	between July 1, 2009, and December 31, 2009, and is irrevocable.
551	The designation of such positions is effective the first day of
552	the month following receipt by the department of the ordinance
553	or resolution passed by the governing body.
554	Section 5.  Section 121.053, Florida Statutes, is amended
555	to read:
556	121.053  Participation in the Elected Officers' Class for
557	retired members.--
558	(1)(a)  A Any member who retired under an any existing
559	system as defined in s. 121.021(2), and receives a retirement
560	benefit thereof, and who subsequently serves in an office
561	covered by the Elected Officers' Class for a period of at least
562	6 years, is shall be entitled to receive an additional
563	retirement benefit for such elected officer service completed
564	before prior to July 1, 1990, under the Elected Officers' Class
565	of the Florida Retirement System, as follows:
566	(a)1.  Upon completion of 6 or more years of creditable
567	service in an office covered by the Elected Officers' Class, s.
568	121.052, such member shall notify the administrator of his or
569	her intent to purchase elected officer service completed before
570	prior to July 1, 1990, and shall pay the member contribution
571	applicable for the period being claimed, plus 4 percent interest
572	compounded annually from the first year of service claimed until
573	July 1, 1975, and 6.5 percent interest compounded annually
574	thereafter, until full payment is made to the Florida Retirement
575	System Trust Fund; however, such member may purchase retirement
576	credit under the Elected Officers' Class only for such service
577	as an elected officer.
578	(b)2.  Upon payment of the amount specified in paragraph
579	(a) subparagraph 1., the employer shall pay into the Florida
580	Retirement System Trust Fund the applicable employer
581	contribution for the period of elected officer service completed
582	before prior to July 1, 1990, being claimed by the member, plus
583	4 percent interest compounded annually from the first year of
584	service claimed until July 1, 1975, and 6.5 percent interest
585	compounded annually thereafter, until full payment is made to
586	the Florida Retirement System Trust Fund.
587	(2)(b)  A Any retired member of the Florida Retirement
588	System, or an any existing system as defined in s. 121.021(2),
589	who, beginning on or after July 1, 1990, through June 30, 2010,
590	serves in is serving in, or is elected or appointed to, an
591	elective office covered by the Elected Officers' Class shall be
592	enrolled in the appropriate subclass of the Elected Officers'
593	Class of the Florida Retirement System, and applicable
594	contributions shall be paid into the Florida Retirement System
595	Trust Fund as provided in s. 121.052(7). Pursuant thereto:
596	(a)1.  The Any such retired member may shall be eligible to
597	continue to receive retirement benefits as well as compensation
598	for the elected officer service if for as long as he or she
599	remains in an elective office covered by the Elected Officers'
600	Class.
601	(b)2.  If the any such member serves in an elective office
602	covered by the Elected Officers' Class and becomes vested under
603	that class, he or she is shall be entitled to receive an
604	additional retirement benefit for the such elected officer
605	service.
606	(c)3.  The Such member is shall be entitled to purchase
607	additional retirement credit in the Elected Officers' Class for
608	any postretirement service performed in an elected position
609	eligible for the Elected Officers' Class before prior to July 1,
610	1990, or in the Regular Class for any postretirement service
611	performed in any other regularly established position before
612	prior to July 1, 1991, by paying the applicable Elected
613	Officers' Class or Regular Class employee and employer
614	contributions for the period being claimed, plus 4 percent
615	interest compounded annually from the first year of service
616	claimed until July 1, 1975, and 6.5 percent interest compounded
617	thereafter, until full payment is made to the Florida Retirement
618	System Trust Fund. The contribution for postretirement Regular
619	Class service between July 1, 1985, and July 1, 1991, for which
620	the reemployed retiree contribution was paid, is shall be the
621	difference between the such contribution and the total
622	applicable contribution for the period being claimed, plus
623	interest. The employer of such member may pay the applicable
624	employer contribution in lieu of the member. If a member does
625	not wish to claim credit for all of the postretirement service
626	for which he or she is eligible, the service the member claims
627	must be the most recent service. Any retiree who served in an
628	elective office before July 1, 1990, suspended his or her
629	retirement benefits, and had his or her Florida Retirement
630	System membership reinstated shall, upon retirement from such
631	office, have his or her retirement benefit recalculated to
632	include the additional service and compensation earned.
633	(d)4.  Creditable service for which credit was received, or
634	which remained unclaimed, at retirement may not be claimed or
635	applied toward service credit earned following renewed
636	membership. However, service earned in accordance with the
637	renewed membership provisions of in s. 121.122 may be used in
638	conjunction with creditable service earned under this subsection
639	paragraph, if provided applicable vesting requirements and other
640	existing statutory conditions required by this chapter are met.
641	5.  An elected officer who is elected or appointed to an
642	elective office and is participating in the Deferred Retirement
643	Option Program is not subject to termination as provided in s.
644	121.021(39)(b), or reemployment limitations as provided in s.
645	121.091(9), until the end of his or her current term of office
646	or, if the officer is consecutively elected or reelected to an
647	elective office eligible for coverage under the Florida
648	Retirement System, until he or she no longer holds such an
649	elective office, as follows:
650	a.  At the end of the 60-month DROP period:
651	(I)  The officer's DROP account shall accrue no additional
652	monthly benefits, but shall continue to earn interest as
653	provided in s. 121.091(13).
654	(II)  No Retirement contributions shall be required of the
655	employer of the elected officer and no additional retirement
656	credit shall be earned under the Florida Retirement System.
657	b.  Nothing herein shall prevent An elected officer from
658	voluntarily terminating his or her elective office at any time
659	and electing to receive his or her DROP proceeds. However, until
660	termination requirements are fulfilled as provided in s.
661	121.021(39), any elected officer whose termination limitations
662	are extended by this section shall be ineligible for renewed
663	membership in the system and shall receive no pension payments,
664	DROP lump sum payments, or any other state payment other than
665	the statutorily determined salary, travel, and per diem for the
666	elective office.
667	c.  Upon termination, the officer shall receive his or her
668	accumulated DROP account, plus interest, and shall accrue and
669	commence receiving monthly retirement benefits, which shall be
670	paid on a prospective basis only.
671
672	However, an officer electing to participate in the Deferred
673	Retirement Option Program on or before June 30, 2002, is shall
674	not be required to terminate and remains shall remain subject to
675	the provisions of this paragraph subparagraph as adopted in
676	section 1 of chapter 2001-235, Laws of Florida.
677	(3)  On or after July 1, 2010:
678	(a)  A retiree of a state-administered retirement system
679	who is elected or appointed for the first time to an elective
680	office in a regularly established position with a covered
681	employer may not reenroll in the Florida Retirement System.
682	(b)  An elected officer who is elected or appointed to an
683	elective office and is participating in the Deferred Retirement
684	Option Program is subject to termination as defined in s.
685	121.021 upon completion of his or her DROP participation period.
686	An elected official may defer termination as provided in
687	paragraph (2)(e).
688	(4)(2)  Upon attaining his or her normal retirement date
689	and payment of the amount specified in paragraphs (1)(a) and
690	(b), and upon application to the administrator of the intent to
691	retire, a the member qualifying under subsection (1) or
692	subsection (2) shall receive a monthly benefit under this
693	section, in addition to any benefits already being received,
694	which shall commence on the last day of the month of retirement
695	and be payable on the last day of the month thereafter during
696	his or her lifetime. The amount of the such monthly benefit is
697	shall be the total percentage of retirement credit purchased
698	under this section multiplied by the member's average monthly
699	compensation as an elected officer, adjusted according to the
700	option selected at retirement under s. 121.091(6).
701	(5)(3)  Any renewed member, as described in subsection (1)
702	or subsection (2), who is not receiving the maximum health
703	insurance subsidy provided in s. 112.363 is shall be entitled to
704	earn additional credit toward the maximum health insurance
705	subsidy. Any additional subsidy due because of such additional
706	credit may shall be received only at the time of payment of the
707	second career retirement benefit. In no case shall The total
708	health insurance subsidy received by a retiree receiving
709	benefits from initial and renewed membership may not exceed the
710	maximum allowed in s. 112.363.
711	(6)(4)  A No retired judge consenting to temporary duty in
712	any court, as assigned by the Chief Justice of the Supreme Court
713	in accordance with s. 2, Art. V of the State Constitution, is
714	not shall be subject to the renewed membership provisions of
715	this section.
716	(7)  A member who is elected or appointed to an elective
717	office and who is participating in the Deferred Retirement
718	Option Program is not subject to termination as defined in s.
719	121.021, or reemployment limitations as provided in s.
720	121.091(9), until the end of his or her current term of office
721	or, if the officer is consecutively elected or reelected to an
722	elective office eligible for coverage under the Florida
723	Retirement System, until he or she no longer holds an elective
724	office, as follows:
725	(a)  At the end of the 60-month DROP period:
726	1.  The officer's DROP account may not accrue additional
727	monthly benefits, but does continue to earn interest as provided
728	in s. 121.091(13). However, an officer whose DROP participation
729	begins on or after July 1, 2010, may not continue to earn such
730	interest.
731	2.  Retirement contributions are not required of the
732	employer of the elected officer and additional retirement credit
733	may not be earned under the Florida Retirement System.
734	(b)  An elected officer may voluntarily terminate his or
735	her elective office at any time and receive his or her DROP
736	proceeds. However, until termination occurs, an elected officer
737	whose termination limitations are extended by this section is
738	ineligible for renewed membership in the system and may not
739	receive pension payments, DROP lump sum payments, or any other
740	state payment other than the statutorily determined salary,
741	travel, and per diem for the elective office.
742	(c)  Upon termination, the officer shall receive his or her
743	accumulated DROP account, plus interest, and shall accrue and
744	commence receiving monthly retirement benefits, which must be
745	paid on a prospective basis only.
746	Section 6.  Paragraph (f) of subsection (1) and paragraphs
747	(c) and (e) of subsection (6) of section 121.055, Florida
748	Statutes, are amended to read:
749	121.055  Senior Management Service Class.--There is hereby
750	established a separate class of membership within the Florida
751	Retirement System to be known as the "Senior Management Service
752	Class," which shall become effective February 1, 1987.
753	(1)
754	(f)  Effective July 1, 1997:
755	1.  Except as provided in subparagraph 3., an any elected
756	state officer eligible for membership in the Elected Officers'
757	Class under s. 121.052(2)(a), (b), or (c) who elects membership
758	in the Senior Management Service Class under s. 121.052(3)(c)
759	may, within 6 months after assuming office or within 6 months
760	after this act becomes a law for serving elected state officers,
761	elect to participate in the Senior Management Service Optional
762	Annuity Program, as provided in subsection (6), in lieu of
763	membership in the Senior Management Service Class.
764	2.  Except as provided in subparagraph 3., an any elected
765	county officer of a local agency employer eligible for
766	membership in the Elected Officers' Class under s. 121.052(2)(d)
767	who elects membership in the Senior Management Service Class
768	under s. 121.052(3)(c) may, within 6 months after assuming
769	office, or within 6 months after this act becomes a law for
770	serving elected county officers of a local agency employer,
771	elect to withdraw from the Florida Retirement System participate
772	in a lifetime monthly annuity program, as provided in
773	subparagraph (b)2., in lieu of membership in the Senior
774	Management Service Class.
775	3.  A retiree of a state-administered retirement system who
776	is initially reemployed on or after July 1, 2010, as an elected
777	official eligible for the Elected Officers' Class may not renew
778	membership in the Senior Management Service Class or in the
779	Senior Management Service Optional Annuity Program as provided
780	in subsection (6), and may not withdraw from the Florida
781	Retirement System as a renewed member as provided in
782	subparagraph (b)2., as applicable, in lieu of membership in the
783	Senior Management Service Class.
784	(6)
785	(c)  Participation.--
786	1.  An any eligible employee who is employed on or before
787	February 1, 1987, may elect to participate in the optional
788	annuity program in lieu of participation in the Senior
789	Management Service Class. Such election must shall be made in
790	writing and filed with the department and the personnel officer
791	of the employer on or before May 1, 1987. An Any eligible
792	employee who is employed on or before February 1, 1987, and who
793	fails to make an election to participate in the optional annuity
794	program by May 1, 1987, shall be deemed to have elected
795	membership in the Senior Management Service Class.
796	2.  Except as provided in subparagraph 6., an Any employee
797	who becomes eligible to participate in the optional annuity
798	program by reason of initial employment commencing after
799	February 1, 1987, may, within 90 days after the date of
800	commencing commencement of employment, elect to participate in
801	the optional annuity program. Such election must shall be made
802	in writing and filed with the personnel officer of the employer.
803	An Any eligible employee who does not within 90 days after
804	commencing commencement of such employment elect to participate
805	in the optional annuity program shall be deemed to have elected
806	membership in the Senior Management Service Class.
807	3.  A person who is appointed to a position in the Senior
808	Management Service Class and who is a member of an existing
809	retirement system or the Special Risk or Special Risk
810	Administrative Support Classes of the Florida Retirement System
811	may elect to remain in such system or class in lieu of
812	participation in the Senior Management Service Class or optional
813	annuity program. Such election must shall be made in writing and
814	filed with the department and the personnel officer of the
815	employer within 90 days of such appointment. Any eligible
816	employee who fails to make an election to participate in the
817	existing system, the Special Risk Class of the Florida
818	Retirement System, the Special Risk Administrative Support Class
819	of the Florida Retirement System, or the optional annuity
820	program shall be deemed to have elected membership in the Senior
821	Management Service Class.
822	4.  Except as provided in subparagraph 5., an employee's
823	election to participate in the optional annuity program is
824	irrevocable if the as long as such employee continues to be
825	employed in an eligible position and continues to meet the
826	eligibility requirements set forth in this paragraph.
827	5.  Effective from July 1, 2002, through September 30,
828	2002, any active employee in a regularly established position
829	who has elected to participate in the Senior Management Service
830	Optional Annuity Program has one opportunity to choose to move
831	from the Senior Management Service Optional Annuity Program to
832	the Florida Retirement System defined benefit program.
833	a.  The election must be made in writing and must be filed
834	with the department and the personnel officer of the employer
835	before October 1, 2002, or, in the case of an active employee
836	who is on a leave of absence on July 1, 2002, within 90 days
837	after the conclusion of the leave of absence. This election is
838	irrevocable.
839	b.  The employee shall will receive service credit under
840	the defined benefit program of the Florida Retirement System
841	equal to his or her years of service under the Senior Management
842	Service Optional Annuity Program. The cost for such credit is
843	the shall be an amount representing the present value of that
844	employee's accumulated benefit obligation for the affected
845	period of service.
846	c.  The employee must transfer the total accumulated
847	employer contributions and earnings on deposit in his or her
848	Senior Management Service Optional Annuity Program account. If
849	the transferred amount is not sufficient to pay the amount due,
850	the employee must pay a sum representing the remainder of the
851	amount due. In no case may The employee may not retain any
852	employer contributions or earnings thereon from the Senior
853	Management Service Optional Annuity Program account.
854	6.  A retiree of a state-administered retirement system who
855	is initially reemployed on or after July 1, 2010, may not renew
856	membership in the Senior Management Service Optional Annuity
857	Program.
858	(e)  Benefits.--
859	1.  Benefits shall be payable under the Senior Management
860	Service Optional Annuity Program are payable only to
861	participants in the program, or their beneficiaries as
862	designated by the participant in the contract with the a
863	provider company, and must such benefits shall be paid by the
864	designated company in accordance with the terms of the annuity
865	contract or contracts applicable to the participant. A
866	participant must be terminated from all employment relationships
867	with all Florida Retirement System employers as provided in s.
868	121.021(39) to begin receiving the employer-funded benefit.
869	Benefits funded by employer contributions are shall be payable
870	under the terms of the contract only as a lifetime annuity to
871	the participant, his or her beneficiary, or his or her estate,
872	in addition to except for:
873	a.  A lump-sum payment to the beneficiary upon the death of
874	the participant;
875	b.  A cash-out of a de minimis account upon the request of
876	a former participant who has been terminated for a minimum of 6
877	calendar months from the employment that entitled him or her to
878	optional annuity program participation. A de minimis account is
879	an account with a provider company containing employer
880	contributions and accumulated earnings of not more than $5,000
881	made under the provisions of this chapter. Such cash-out must be
882	a complete liquidation of the account balance with that company
883	and is subject to the provisions of the Internal Revenue Code;
884	or
885	c.  A mandatory distribution of a de minimis account of a
886	former participant who has been terminated for a minimum of 6
887	calendar months from the employment that entitled him or her to
888	optional annuity program participation as authorized by the
889	department; or
890	d.c.  A lump-sum direct rollover distribution whereby all
891	accrued benefits, plus interest and investment earnings, are
892	paid from the participant's account directly to the custodian of
893	an eligible retirement plan, as defined in s. 402(c)(8)(B) of
894	the Internal Revenue Code, on behalf of the participant.
895	2.  The benefits payable to any person under the Senior
896	Management Service Optional Annuity Program, and any
897	contribution accumulated under such program, are shall not be
898	subject to assignment, execution, or attachment or to any legal
899	process whatsoever.
900	3.  Except as provided in subparagraph 4., a participant
901	who terminates employment and receives a distribution, including
902	a rollover or trustee-to-trustee transfer, optional annuity
903	program benefits funded by employer contributions shall be
904	deemed to be retired from a state-administered retirement system
905	if the participant is subsequently employed with an in the event
906	of subsequent employment with any employer that participates in
907	the Florida Retirement System.
908	4.  A participant who receives optional annuity program
909	benefits funded by employer contributions as a mandatory
910	distribution of a de minimis account authorized by the
911	department is not considered a retiree.
912
913	As used in this paragraph, a "de minimis account" means an
914	account with a provider company containing employer
915	contributions and accumulated earnings of not more than $5,000
916	made under this chapter.
917	Section 7.  Paragraph (a) of subsection (6) of section
918	121.071, Florida Statutes, is amended to read:
919	121.071  Contributions.--Contributions to the system shall
920	be made as follows:
921	(6)(a)  Required employee contributions for all service
922	other than current service, including, but not limited to, prior
923	service, past service, military service, leave-of-absence
924	service, out-of-state service, and certain non-Florida
925	Retirement System in-state service, shall be paid by cash,
926	personal check, cashier's check, or money order, or a direct
927	rollover or transfer from a qualified plan as provided under the
928	Internal Revenue Code. The payment must only; shall be
929	accompanied by a statement identifying the service for which
930	payment is made; and shall be made in a lump sum for the total
931	amount due or in annual payments of not less than $100, except
932	for the final payment if less than $100, unless another method
933	of payment is authorized by law or rule.
934	Section 8.  Paragraphs (a), (b), (e), (f), and (h) of
935	subsection (1) of section 121.081, Florida Statutes, are amended
936	to read:
937	121.081  Past service; prior service; contributions.--
938	Conditions under which past service or prior service may be
939	claimed and credited are:
940	(1)(a)  Past service, as defined in s. 121.021(18), may be
941	claimed as creditable service by officers or employees of a
942	municipality city, metropolitan planning organization, charter
943	school, charter technical career center, or special district who
944	that become a covered group under this system. The governing
945	body of a covered group in compliance with s. 121.051(2)(b) may
946	elect to provide benefits for with respect to past service
947	earned before prior to January 1, 1975, in accordance with this
948	chapter, and the cost for such past service is shall be
949	established by applying the following formula: The member
950	contribution for both regular and special risk members is shall
951	be 4 percent of the gross annual salary for each year of past
952	service claimed, plus 4-percent employer matching contribution,
953	plus 4-percent interest thereon compounded annually, figured on
954	each year of past service, with interest compounded from date of
955	annual salary earned until July 1, 1975, and 6.5-percent
956	interest compounded annually thereafter until date of payment.
957	Once the total cost for a member has been figured to date, then
958	after July 1, 1975, 6.5-percent compounded interest shall be
959	added each June 30 thereafter on any unpaid balance until the
960	cost of such past service liability is paid in full. The
961	following formula shall be used in calculating past service
962	earned before prior to January 1, 1975: (Annual gross salary
963	multiplied by 8 percent) multiplied by the 4-percent or 6.5-
964	percent compound interest table factor, as may be applicable.
965	The resulting product equals cost to date for each particular
966	year of past service.
967	(b)  Past service earned after January 1, 1975, may be
968	claimed by officers or employees of a municipality city,
969	metropolitan planning organization, charter school, charter
970	technical career center, or special district who become that
971	becomes a covered group under this system. The governing body of
972	a covered group may elect to provide benefits for with respect
973	to past service earned after January 1, 1975, in accordance with
974	this chapter, and the cost for such past service is shall be
975	established by applying the following formula: The employer
976	shall contribute an amount equal to the contribution rate in
977	effect at the time the service was earned, multiplied by the
978	employee's gross salary for each year of past service claimed,
979	plus 6.5-percent interest thereon, compounded annually, figured
980	on each year of past service, with interest compounded from date
981	of annual salary earned until date of payment.
982	(e)  Past service, as defined in s. 121.021(18), may be
983	claimed as creditable service by a member of the Florida
984	Retirement System who formerly was an officer or employee of a
985	municipality city, metropolitan planning organization, charter
986	school, charter technical career center, or special district,
987	notwithstanding the status or form of the retirement system, if
988	any, of that municipality city, metropolitan planning
989	organization, charter school, charter technical career center,
990	or special district and irrespective of whether such officers or
991	employees of that city, metropolitan planning organization, or
992	special district now or hereafter become a covered group under
993	the Florida Retirement System. Such member may claim creditable
994	service and be entitled to the benefits accruing to the regular
995	class of members as provided for the past service claimed under
996	this paragraph by paying into the retirement trust fund an
997	amount equal to the total actuarial cost of providing the
998	additional benefit resulting from such past-service credit,
999	discounted by the applicable actuarial factors to date of
1000	retirement.
1001	(f)  If When any person, either prior to this act or
1002	hereafter, becomes entitled to and participates does participate
1003	in one of the retirement systems under consolidated within or
1004	created by this chapter through the consolidation or merger of
1005	governments or the transfer of functions between units of
1006	government, either at the state or local level or between state
1007	and local units, or through the assumption of functions or
1008	activities by a state or local unit from an employing
1009	governmental entity that which was not an employer under the
1010	system, and such person becomes a member of the Florida
1011	Retirement System, such person is shall be entitled to receive
1012	past-service credit as defined in s. 121.021(18) for the time
1013	the such person performed services for, and was an employee of,
1014	such state or local unit or other governmental employing entity
1015	before prior to the transfer, merger, consolidation, or
1016	assumption of functions and activities. Past-service credit
1017	allowed by this paragraph is shall also be available to any
1018	person who becomes a member of an existing system before, as
1019	defined in s. 121.021(2), prior to December 1, 1970, through the
1020	transfer, merger, consolidation, or assumption of functions and
1021	activities set forth in this paragraph and who subsequently
1022	becomes a member of the Florida Retirement System. However,
1023	credit for the past service may not be granted until
1024	contributions are made in the manner provided in this
1025	subsection. If a person rejected Florida Retirement System
1026	membership at the time of the transfer, merger, or
1027	consolidation, or assumption of governmental functions and
1028	activities, the required contributions shall be at total
1029	actuarial cost as specified in paragraph (e). Such contributions
1030	or accrued interest may not be paid from any public state funds.
1031	(h)  The following provisions apply to the purchase of past
1032	service:
1033	1.  Notwithstanding any of the provisions of this
1034	subsection, past-service credit may not be purchased under this
1035	chapter for any service that is used to obtain a pension or
1036	benefit from a any local retirement system. Eligibility to
1037	receive or the receipt of contributions to a retirement plan
1038	made by the employer on behalf of the employee is considered a
1039	benefit.
1040	2.  A member may not receive past service credit under
1041	paragraphs (a), (b), (e), or (f) for any leaves of absence
1042	without pay, except that credit for active military service
1043	leaves of absence may be claimed under paragraphs (a), (b), and
1044	(f), in accordance with s. 121.111(1).
1045	3.  A member may not receive past service credit for co-
1046	employer service. Co-employer service or a co-employer
1047	relationship is employment in a single position simultaneously
1048	covered and reported by both a public employer and a private
1049	employer.
1050	4.3.  If a member does not want desire to receive credit
1051	for all of his or her past service, the period the member claims
1052	must be the most recent past service prior to his or her
1053	participation in the Florida Retirement System.
1054	5.4.  The cost of past service purchased by an employing
1055	agency for its employees may be amortized over the such period
1056	of time as is provided in the agreement, but not to exceed 15
1057	years, calculated in accordance with rule 60S-1.007(5)(f),
1058	Florida Administrative Code.
1059	6.5.  The retirement account of each member for whom past
1060	service is being provided by his or her employer shall be
1061	credited with all past service the employer agrees to purchase
1062	as soon as the agreement between the employer and the department
1063	is executed. Pursuant thereto:
1064	a.  Each such member's account shall also be posted with
1065	the total contribution his or her employer agrees to make on in
1066	the member's behalf for past service earned before prior to
1067	October 1, 1975, excluding those contributions representing the
1068	employer's matching share and the compound interest calculation
1069	on the total contribution. However, a portion of any
1070	contributions paid by an employer for past service credit earned
1071	on and after October 1, 1975, may not be posted to the a
1072	member's account.
1073	b.  A refund of contributions payable after an employer has
1074	made a written agreement to purchase past service for employees
1075	of the covered group includes shall include contributions for
1076	past service which are posted to the a member's account.
1077	However, contributions for past service earned on and after
1078	October 1, 1975, are not refundable.
1079	Section 9.  Subsections (9), (13), and (14) of section
1080	121.091, Florida Statutes, are amended to read:
1081	121.091  Benefits payable under the system.--Benefits may
1082	not be paid under this section unless the member has terminated
1083	employment as provided in s. 121.021(39)(a) or begun
1084	participation in the Deferred Retirement Option Program as
1085	provided in subsection (13), and a proper application has been
1086	filed in the manner prescribed by the department. The department
1087	may cancel an application for retirement benefits when the
1088	member or beneficiary fails to timely provide the information
1089	and documents required by this chapter and the department's
1090	rules. The department shall adopt rules establishing procedures
1091	for application for retirement benefits and for the cancellation
1092	of such application when the required information or documents
1093	are not received.
1094	(9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
1095	(a)  Any person who is retired under this chapter, except
1096	under the disability retirement provisions of subsection (4),
1097	may be employed by an employer that does not participate in a
1098	state-administered retirement system and may receive
1099	compensation from that employment without limiting or
1100	restricting in any way the retirement benefits payable to that
1101	person.
1102	(b)1.  Any person whose retirement is effective before July
1103	1, 2010, or whose participation in the Deferred Retirement
1104	Option Program terminates before July 1, 2010, who is retired
1105	under this chapter, except under the disability retirement
1106	provisions of subsection (4) or as provided in s. 121.053, may
1107	be reemployed by an any private or public employer that
1108	participates in a state-administered retirement system after
1109	retirement and receive retirement benefits and compensation from
1110	that his or her employer without any limitations, except that
1111	the a person may not be reemployed by an employer receive both a
1112	salary from reemployment with any agency participating in the
1113	Florida Retirement System before meeting the definition of
1114	termination in s. 121.021 and may not receive both a salary from
1115	the employer and retirement benefits under this chapter for a
1116	period of 12 calendar months immediately subsequent to the date
1117	of retirement. However, a DROP participant shall continue
1118	employment and receive a salary during the period of
1119	participation in the Deferred Retirement Option Program, as
1120	provided in subsection (13).
1121	1.2.  A retiree Any person to whom the limitation in
1122	subparagraph 1. applies who violates such reemployment
1123	limitation and who is reemployed with any agency participating
1124	in the Florida Retirement System before completion of the 12-
1125	month limitation period must shall give timely notice of this
1126	fact in writing to the employer and to the Division of
1127	Retirement or the state board and shall have his or her
1128	retirement benefits suspended for the months employed or the
1129	balance of the 12-month limitation period as required in sub-
1130	subparagraphs b. and c. A retiree Any person employed in
1131	violation of this paragraph and an employer who any employing
1132	agency which knowingly employs or appoints such person are
1133	without notifying the Division of Retirement to suspend
1134	retirement benefits shall be jointly and severally liable for
1135	reimbursement to the retirement trust fund, including the
1136	Florida Retirement System Trust Fund and the Public employee
1137	Optional Retirement Program Trust Fund, from which the benefits
1138	were paid of any benefits paid during the reemployment
1139	limitation period. The employer must To avoid liability, such
1140	employing agency shall have a written statement from the retiree
1141	that he or she is not retired from a state-administered
1142	retirement system. Any retirement benefits received while
1143	reemployed during this reemployment limitation period shall be
1144	repaid to the retirement trust fund, and Retirement benefits
1145	shall remain suspended until such repayment has been made.
1146	Benefits suspended beyond the reemployment limitation shall
1147	apply toward repayment of benefits received in violation of the
1148	reemployment limitation.
1149	a.3.  A district school board may reemploy a retiree
1150	retired member as a substitute or hourly teacher, education
1151	paraprofessional, transportation assistant, bus driver, or food
1152	service worker on a noncontractual basis after he or she has
1153	been retired for 1 calendar month, in accordance with s.
1154	121.021(39). A district school board may reemploy a retiree
1155	retired member as instructional personnel, as defined in s.
1156	1012.01(2)(a), on an annual contractual basis after he or she
1157	has been retired for 1 calendar month, in accordance with s.
1158	121.021(39). Any other retired member who is reemployed within 1
1159	calendar month after retirement shall void his or her
1160	application for retirement benefits. District school boards
1161	reemploying such teachers, education paraprofessionals,
1162	transportation assistants, bus drivers, or food service workers
1163	are subject to the retirement contribution required by
1164	subparagraph 2. 7.
1165	b.4.  A community college board of trustees may reemploy a
1166	retiree retired member as an adjunct instructor, that is, an
1167	instructor who is noncontractual and part-time, or as a
1168	participant in a phased retirement program within the Florida
1169	Community College System, after he or she has been retired for 1
1170	calendar month, in accordance with s. 121.021(39). A Any retired
1171	member who is reemployed within 1 calendar month after
1172	retirement shall void his or her application for retirement
1173	benefits. Boards of trustees reemploying such instructors are
1174	subject to the retirement contribution required in subparagraph
1175	2. 7. A retiree retired member may be reemployed as an adjunct
1176	instructor for no more than 780 hours during the first 12 months
1177	of retirement. A retiree Any retired member reemployed for more
1178	than 780 hours during the first 12 months of retirement must
1179	shall give timely notice in writing to the employer and to the
1180	Division of Retirement or the state board of the date he or she
1181	will exceed the limitation. The division shall suspend his or
1182	her retirement benefits for the remainder of the first 12 months
1183	of retirement. Any retiree person employed in violation of this
1184	sub-subparagraph subparagraph and any employer who employing
1185	agency which knowingly employs or appoints such person without
1186	notifying the division of Retirement to suspend retirement
1187	benefits are shall be jointly and severally liable for
1188	reimbursement to the retirement trust fund of any benefits paid
1189	during the reemployment limitation period. The employer must To
1190	avoid liability, such employing agency shall have a written
1191	statement from the retiree that he or she is not retired from a
1192	state-administered retirement system. Any retirement benefits
1193	received by the retiree a retired member while reemployed in
1194	excess of 780 hours during the first 12 months of retirement
1195	must shall be repaid to the Florida Retirement System Trust
1196	Fund, and retirement benefits shall remain suspended until
1197	repayment is made. Benefits suspended beyond the end of the
1198	retiree's retired member's first 12 months of retirement shall
1199	apply toward repayment of benefits received in violation of the
1200	780-hour reemployment limitation.
1201	c.5.  The State University System may reemploy a retiree
1202	retired member as an adjunct faculty member or as a participant
1203	in a phased retirement program within the State University
1204	System after the retiree retired member has been retired for 1
1205	calendar month, in accordance with s. 121.021(39). A Any retired
1206	member who is reemployed within 1 calendar month after
1207	retirement shall void his or her application for retirement
1208	benefits. The State University System is subject to the retired
1209	contribution required in subparagraph 2. 7., as appropriate. A
1210	retiree retired member may be reemployed as an adjunct faculty
1211	member or a participant in a phased retirement program for no
1212	more than 780 hours during the first 12 months of his or her
1213	retirement. A retiree Any retired member reemployed for more
1214	than 780 hours during the first 12 months of retirement must
1215	shall give timely notice in writing to the employer and to the
1216	Division of Retirement or the state board of the date he or she
1217	will exceed the limitation. The division shall suspend his or
1218	her retirement benefits for the remainder of the first 12 months
1219	of retirement. Any retiree person employed in violation of this
1220	sub-subparagraph subparagraph and any employer who employing
1221	agency which knowingly employs or appoints such person without
1222	notifying the division of Retirement to suspend retirement
1223	benefits are shall be jointly and severally liable for
1224	reimbursement to the retirement trust fund of any benefits paid
1225	during the reemployment limitation period. The employer must To
1226	avoid liability, such employing agency shall have a written
1227	statement from the retiree that he or she is not retired from a
1228	state-administered retirement system. Any retirement benefits
1229	received by the retiree a retired member while reemployed in
1230	excess of 780 hours during the first 12 months of retirement
1231	must shall be repaid to the Florida Retirement System Trust
1232	Fund, and retirement benefits shall remain suspended until
1233	repayment is made. Benefits suspended beyond the end of the
1234	retiree's retired member's first 12 months of retirement shall
1235	apply toward repayment of benefits received in violation of the
1236	780-hour reemployment limitation.
1237	d.6.  The Board of Trustees of the Florida School for the
1238	Deaf and the Blind may reemploy a retiree retired member as a
1239	substitute teacher, substitute residential instructor, or
1240	substitute nurse on a noncontractual basis after he or she has
1241	been retired for 1 calendar month, in accordance with s.
1242	121.021(39). Any retired member who is reemployed within 1
1243	calendar month after retirement shall void his or her
1244	application for retirement benefits. The Board of Trustees of
1245	the Florida School for the Deaf and the Blind reemploying such
1246	teachers, residential instructors, or nurses is subject to the
1247	retirement contribution required by subparagraph 2. 7.
1248	Reemployment of a retired member as a substitute teacher,
1249	substitute residential instructor, or substitute nurse is
1250	limited to 780 hours during the first 12 months of his or her
1251	retirement. Any retired member reemployed for more than 780
1252	hours during the first 12 months of retirement shall give timely
1253	notice in writing to the employer and to the division of the
1254	date he or she will exceed the limitation. The division shall
1255	suspend his or her retirement benefits for the remainder of the
1256	first 12 months of retirement. Any person employed in violation
1257	of this subparagraph and any employing agency which knowingly
1258	employs or appoints such person without notifying the division
1259	of Retirement to suspend retirement benefits shall be jointly
1260	and severally liable for reimbursement to the retirement trust
1261	fund of any benefits paid during the reemployment limitation
1262	period. To avoid liability, such employing agency shall have a
1263	written statement from the retiree that he or she is not retired
1264	from a state-administered retirement system. Any retirement
1265	benefits received by a retired member while reemployed in excess
1266	of 780 hours during the first 12 months of retirement shall be
1267	repaid to the Retirement System Trust Fund, and his or her
1268	retirement benefits shall remain suspended until payment is
1269	made. Benefits suspended beyond the end of the retired member's
1270	first 12 months of retirement shall apply toward repayment of
1271	benefits received in violation of the 780-hour reemployment
1272	limitation.
1273	e.  A developmental research school may reemploy a retiree
1274	as a substitute or hourly teacher or an education
1275	paraprofessional as defined in s. 1012.01(2) on a noncontractual
1276	basis after he or she has been retired for 1 calendar month. A
1277	developmental research school may reemploy a retiree as
1278	instructional personnel, as defined in s. 1012.01(2)(a), on an
1279	annual contractual basis after he or she has been retired for 1
1280	calendar month after retirement. Any member who is reemployed
1281	within 1 calendar month voids his or her application for
1282	retirement benefits. A developmental research school that
1283	reemploys retired teachers and education paraprofessionals is
1284	subject to the retirement contribution required by subparagraph
1285	2.
1286	f.  A charter school may reemploy a retiree as a substitute
1287	or hourly teacher on a noncontractual basis after he or she has
1288	been retired for 1 calendar month. A charter school may reemploy
1289	a retired member as instructional personnel, as defined in s.
1290	1012.01(2)(a), on an annual contractual basis after he or she
1291	has been retired for 1 calendar month after retirement. Any
1292	member who is reemployed within 1 calendar month voids his or
1293	her application for retirement benefits. A charter school that
1294	reemploys such teachers is subject to the retirement
1295	contribution required by subparagraph 2.
1296	2.7.   The employment by an employer of a any retiree or
1297	DROP participant of a any state-administered retirement system
1298	does not affect shall have no effect on the average final
1299	compensation or years of creditable service of the retiree or
1300	DROP participant. Before Prior to July 1, 1991, upon employment
1301	of any person, other than an elected officer as provided in s.
1302	121.053, who is has been retired under a any state-administered
1303	retirement program, the employer shall pay retirement
1304	contributions in an amount equal to the unfunded actuarial
1305	liability portion of the employer contribution which would be
1306	required for regular members of the Florida Retirement System.
1307	Effective July 1, 1991, contributions shall be made as provided
1308	in s. 121.122 for retirees who have with renewed membership or,
1309	as provided in subsection (13), for with respect to DROP
1310	participants.
1311	8.  Any person who has previously retired and who is
1312	holding an elective public office or an appointment to an
1313	elective public office eligible for the Elected Officers' Class
1314	on or after July 1, 1990, shall be enrolled in the Florida
1315	Retirement System as provided in s. 121.053(1)(b) or, if holding
1316	an elective public office that does not qualify for the Elected
1317	Officers' Class on or after July 1, 1991, shall be enrolled in
1318	the Florida Retirement System as provided in s. 121.122, and
1319	shall continue to receive retirement benefits as well as
1320	compensation for the elected officer's service for as long as he
1321	or she remains in elective office. However, any retired member
1322	who served in an elective office prior to July 1, 1990,
1323	suspended his or her retirement benefit, and had his or her
1324	Florida Retirement System membership reinstated shall, upon
1325	retirement from such office, have his or her retirement benefit
1326	recalculated to include the additional service and compensation
1327	earned.
1328	3.9.  Any person who is holding an elective public office
1329	which is covered by the Florida Retirement System and who is
1330	concurrently employed in nonelected covered employment may elect
1331	to retire while continuing employment in the elective public
1332	office if, provided that he or she terminates shall be required
1333	to terminate his or her nonelected covered employment. Such Any
1334	person who exercises this election shall receive his or her
1335	retirement benefits in addition to the compensation of the
1336	elective office without regard to the time limitations otherwise
1337	provided in this subsection. A No person who seeks to exercise
1338	the provisions of this subparagraph, as they the same existed
1339	before prior to May 3, 1984, may not be shall be deemed to be
1340	retired under those provisions, unless such person is eligible
1341	to retire under the provisions of this subparagraph, as amended
1342	by chapter 84-11, Laws of Florida.
1343	10.  The limitations of this paragraph apply to
1344	reemployment in any capacity with an "employer" as defined in s.
1345	121.021(10), irrespective of the category of funds from which
1346	the person is compensated.
1347	11.  An employing agency may reemploy a retired member as a
1348	firefighter or paramedic after the retired member has been
1349	retired for 1 calendar month, in accordance with s. 121.021(39).
1350	Any retired member who is reemployed within 1 calendar month
1351	after retirement shall void his or her application for
1352	retirement benefits. The employing agency reemploying such
1353	firefighter or paramedic is subject to the retired contribution
1354	required in subparagraph 8. Reemployment of a retired
1355	firefighter or paramedic is limited to no more than 780 hours
1356	during the first 12 months of his or her retirement. Any retired
1357	member reemployed for more than 780 hours during the first 12
1358	months of retirement shall give timely notice in writing to the
1359	employer and to the division of the date he or she will exceed
1360	the limitation. The division shall suspend his or her retirement
1361	benefits for the remainder of the first 12 months of retirement.
1362	Any person employed in violation of this subparagraph and any
1363	employing agency which knowingly employs or appoints such person
1364	without notifying the Division of Retirement to suspend
1365	retirement benefits shall be jointly and severally liable for
1366	reimbursement to the Retirement System Trust Fund of any
1367	benefits paid during the reemployment limitation period. To
1368	avoid liability, such employing agency shall have a written
1369	statement from the retiree that he or she is not retired from a
1370	state-administered retirement system. Any retirement benefits
1371	received by a retired member while reemployed in excess of 780
1372	hours during the first 12 months of retirement shall be repaid
1373	to the Retirement System Trust Fund, and retirement benefits
1374	shall remain suspended until repayment is made. Benefits
1375	suspended beyond the end of the retired member's first 12 months
1376	of retirement shall apply toward repayment of benefits received
1377	in violation of the 780-hour reemployment limitation.
1378	(c)  Any person whose retirement is effective on or after
1379	July 1, 2010, or whose participation in the Deferred Retirement
1380	Option Program terminates on or after July 1, 2010, who is
1381	retired under this chapter, except under the disability
1382	retirement provisions of subsection (4) or as provided in s.
1383	121.053, may be reemployed by an employer that participates in a
1384	state-administered retirement system and receive retirement
1385	benefits and compensation from that employer. However, the a
1386	person may not be reemployed by an employer participating in the
1387	Florida Retirement System before meeting the definition of
1388	termination in s. 121.021 and may not receive both a salary from
1389	the employer and retirement benefits for 6 calendar months after
1390	meeting the definition of termination. However, a DROP
1391	participant shall continue employment and receive a salary
1392	during the period of participation in the Deferred Retirement
1393	Option Program, as provided in subsection (13).
1394	1.  The reemployed retiree may not renew membership in the
1395	Florida Retirement System.
1396	2.  The employer shall pay retirement contributions in an
1397	amount equal to the unfunded actuarial liability portion of the
1398	employer contribution that would be required for active members
1399	of the Florida Retirement System in addition to the
1400	contributions required by s. 121.76.
1401	3.  A retiree initially reemployed in violation of this
1402	paragraph and an employer that employs or appoints such person
1403	are jointly and severally liable for reimbursement of any
1404	retirement benefits paid to the retirement trust fund from which
1405	the benefits were paid, including the Florida Retirement System
1406	Trust Fund and the Public Employee Optional Retirement Program
1407	Trust Fund, as appropriate. The employer must have a written
1408	statement from the employee that he or she is not retired from a
1409	state-administered retirement system. Retirement benefits shall
1410	remain suspended until repayment is made. Benefits suspended
1411	beyond the end of the retiree's 6-month reemployment limitation
1412	period shall apply toward the repayment of benefits received in
1413	violation of this paragraph.
1414	(d)(c)  The provisions of this subsection apply to
1415	retirees, as defined in s. 121.4501(2)(j), of the Public
1416	Employee Optional Retirement Program created in part II, subject
1417	to the following conditions:
1418	1.  The Such retirees may not be reemployed with an
1419	employer participating in the Florida Retirement System as
1420	provided in paragraph (b) until such person has been retired for
1421	6 3 calendar months, unless the participant has reached the
1422	normal retirement requirements of the defined benefit plan as
1423	provided in s. 121.021(29).
1424	2.  A Such retiree employed in violation of this subsection
1425	and an employer any employing agency that knowingly employs or
1426	appoints such person are shall be jointly and severally liable
1427	for reimbursement of any benefits paid to the retirement trust
1428	fund from which the benefits were paid, including the Retirement
1429	System Trust Fund and the Public Employee Optional Retirement
1430	Program Trust Fund, as appropriate. The employer To avoid
1431	liability, such employing agency must have a written statement
1432	from the retiree that he or she is not retired from a state-
1433	administered retirement system.
1434	(e)  The limitations of this subsection apply to reemployment in
1435	any capacity irrespective of the category of funds from which
1436	the person is compensated.
1437	(13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
1438	subject to the provisions of this section, the Deferred
1439	Retirement Option Program, hereinafter referred to as the DROP,
1440	is a program under which an eligible member of the Florida
1441	Retirement System may elect to participate, deferring receipt of
1442	retirement benefits while continuing employment with his or her
1443	Florida Retirement System employer. The deferred monthly
1444	benefits shall accrue in the Florida Retirement System Trust
1445	Fund on behalf of the participant, plus interest compounded
1446	monthly, for the specified period of the DROP participation, as
1447	provided in paragraph (c). Upon termination of employment, the
1448	participant shall receive the total DROP benefits and begin to
1449	receive the previously determined normal retirement benefits.
1450	Participation in the DROP does not guarantee employment for the
1451	specified period of DROP. Participation in the DROP by an
1452	eligible member beyond the initial 60-month period as authorized
1453	in this subsection shall be on an annual contractual basis for
1454	all participants.
1455	(a)  Eligibility of member to participate in the DROP.--All
1456	active Florida Retirement System members in a regularly
1457	established position, and all active members of either the
1458	Teachers' Retirement System established in chapter 238 or the
1459	State and County Officers' and Employees' Retirement System
1460	established in chapter 122, which systems are consolidated
1461	within the Florida Retirement System under s. 121.011, are
1462	eligible to elect participation in the DROP if provided that:
1463	1.  The member is not a renewed member of the Florida
1464	Retirement System under s. 121.122, or a member of the State
1465	Community College System Optional Retirement Program under s.
1466	121.051, the Senior Management Service Optional Annuity Program
1467	under s. 121.055, or the optional retirement program for the
1468	State University System under s. 121.35.
1469	2.  Except as provided in subparagraph 6., election to
1470	participate is made within 12 months immediately following the
1471	date on which the member first reaches normal retirement date,
1472	or, for a member who reaches normal retirement date based on
1473	service before he or she reaches age 62, or age 55 for Special
1474	Risk Class members, election to participate may be deferred to
1475	the 12 months immediately following the date the member attains
1476	57, or age 52 for Special Risk Class members. A member who
1477	delays DROP participation during the 12-month period immediately
1478	following his or her maximum DROP deferral date, except as
1479	provided in subparagraph 6., loses a month of DROP participation
1480	for each month delayed. For a member who first reached normal
1481	retirement date or the deferred eligibility date described above
1482	prior to the effective date of this section, election to
1483	participate shall be made within 12 months after the effective
1484	date of this section. A member who fails to make an election
1485	within the such 12-month limitation period forfeits shall
1486	forfeit all rights to participate in the DROP. The member shall
1487	advise his or her employer and the division in writing of the
1488	date on which the DROP begins shall begin. The Such beginning
1489	date may be subsequent to the 12-month election period, but must
1490	be within the original 60-month participation or, with respect
1491	to members who are instructional personnel employed by the
1492	Florida School for the Deaf and the Blind and who have received
1493	authorization by the Board of Trustees of the Florida School for
1494	the Deaf and the Blind to participate in the DROP beyond 60
1495	months, or who are instructional personnel as defined in s.
1496	1012.01(2)(a)-(d) in grades K-12 and who have received
1497	authorization by the district school superintendent to
1498	participate in the DROP beyond 60 months, the 96-month
1499	limitation period as provided in subparagraph (b)1. When
1500	establishing eligibility of the member to participate in the
1501	DROP for the 60-month or, with respect to members who are
1502	instructional personnel employed by the Florida School for the
1503	Deaf and the Blind and who have received authorization by the
1504	Board of Trustees of the Florida School for the Deaf and the
1505	Blind to participate in the DROP beyond 60 months, or who are
1506	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
1507	grades K-12 and who have received authorization by the district
1508	school superintendent to participate in the DROP beyond 60
1509	months, the 96-month maximum participation period, the member
1510	may elect to include or exclude any optional service credit
1511	purchased by the member from the total service used to establish
1512	the normal retirement date. A member who has with dual normal
1513	retirement dates is shall be eligible to elect to participate in
1514	DROP within 12 months after attaining normal retirement date in
1515	either class.
1516	3.  The employer of a member electing to participate in the
1517	DROP, or employers if dually employed, shall acknowledge in
1518	writing to the division the date the member's participation in
1519	the DROP begins and the date the member's employment and DROP
1520	participation will terminate.
1521	4.  Simultaneous employment of a participant by additional
1522	Florida Retirement System employers subsequent to the
1523	commencement of participation in the DROP is shall be
1524	permissible if provided such employers acknowledge in writing a
1525	DROP termination date no later than the participant's existing
1526	termination date or the maximum participation 60-month
1527	limitation period as provided in subparagraph (b)1.
1528	5.  A DROP participant may change employers while
1529	participating in the DROP, subject to the following:
1530	a.  A change of employment must take place without a break
1531	in service so that the member receives salary for each month of
1532	continuous DROP participation. If a member receives no salary
1533	during a month, DROP participation shall cease unless the
1534	employer verifies a continuation of the employment relationship
1535	for such participant pursuant to s. 121.021(39)(b).
1536	b.  Such participant and new employer shall notify the
1537	division of the identity of the new employer on forms required
1538	by the division as to the identity of the new employer.
1539	c.  The new employer shall acknowledge, in writing, the
1540	participant's DROP termination date, which may be extended but
1541	not beyond the maximum participation original 60-month or, with
1542	respect to members who are instructional personnel employed by
1543	the Florida School for the Deaf and the Blind and who have
1544	received authorization by the Board of Trustees of the Florida
1545	School for the Deaf and the Blind to participate in the DROP
1546	beyond 60 months, or who are instructional personnel as defined
1547	in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
1548	authorization by the district school superintendent to
1549	participate in the DROP beyond 60 months, the 96-month period
1550	provided in subparagraph (b)1., shall acknowledge liability for
1551	any additional retirement contributions and interest required if
1552	the participant fails to timely terminate employment, and is
1553	shall be subject to the adjustment required in sub-subparagraph
1554	(c)5.d.
1555	6.  Effective July 1, 2001, for instructional personnel as
1556	defined in s. 1012.01(2), election to participate in the DROP
1557	may shall be made at any time following the date on which the
1558	member first reaches normal retirement date. The member shall
1559	advise his or her employer and the division in writing of the
1560	date on which DROP begins the Deferred Retirement Option Program
1561	shall begin. When establishing eligibility of the member to
1562	participate in the DROP for the 60-month or, with respect to
1563	members who are instructional personnel employed by the Florida
1564	School for the Deaf and the Blind and who have received
1565	authorization by the Board of Trustees of the Florida School for
1566	the Deaf and the Blind to participate in the DROP beyond 60
1567	months, or who are instructional personnel as defined in s.
1568	1012.01(2)(a)-(d) in grades K-12 and who have received
1569	authorization by the district school superintendent to
1570	participate in the DROP beyond 60 months, the 96-month maximum
1571	participation period, as provided in subparagraph (b)1., the
1572	member may elect to include or exclude any optional service
1573	credit purchased by the member from the total service used to
1574	establish the normal retirement date. A member who has with dual
1575	normal retirement dates is shall be eligible to elect to
1576	participate in either class.
1577	(b)  Participation in the DROP.--
1578	1.  An eligible member may elect to participate in the DROP
1579	for a period not to exceed a maximum of 60 calendar months.
1580	However, or, with respect to members who are instructional
1581	personnel employed by the Florida School for the Deaf and the
1582	Blind and authorized who have received authorization by the
1583	Board of Trustees of the Florida School for the Deaf and the
1584	Blind to participate in the DROP beyond 60 months, or who are
1585	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
1586	grades K-12 and authorized who have received authorization by
1587	the district school superintendent to participate in the DROP
1588	beyond 60 calendar months, or who are instructional personnel as
1589	defined in s. 1012.01(2)(a) employed by a developmental research
1590	school and authorized by the school's director, or if the school
1591	has no director, by the school's principal, may participate in
1592	DROP for up to 36 calendar months beyond the 60-month period. 96
1593	calendar months immediately following the date on which the
1594	member first reaches his or her normal retirement date or the
1595	date to which he or she is eligible to defer his or her election
1596	to participate as provided in subparagraph (a)2. However, a
1597	member who has reached normal retirement date prior to the
1598	effective date of the DROP shall be eligible to participate in
1599	the DROP for a period of time not to exceed 60 calendar months
1600	or, with respect to members who are instructional personnel
1601	employed by the Florida School for the Deaf and the Blind and
1602	who have received authorization by the Board of Trustees of the
1603	Florida School for the Deaf and the Blind to participate in the
1604	DROP beyond 60 months, or who are instructional personnel as
1605	defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
1606	received authorization by the district school superintendent to
1607	participate in the DROP beyond 60 calendar months, 96 calendar
1608	months immediately following the effective date of the DROP,
1609	except a member of the Special Risk Class who has reached normal
1610	retirement date prior to the effective date of the DROP and
1611	whose total accrued value exceeds 75 percent of average final
1612	compensation as of his or her effective date of retirement shall
1613	be eligible to participate in the DROP for no more than 36
1614	calendar months immediately following the effective date of the
1615	DROP.
1616	2.  Upon deciding to participate in the DROP, the member
1617	shall submit, on forms required by the division:
1618	a.  A written election to participate in the DROP;
1619	b.  Selection of the DROP participation and termination
1620	dates that, which satisfy the limitations stated in paragraph
1621	(a) and subparagraph 1. The Such termination date must shall be
1622	in a binding letter of resignation to with the employer,
1623	establishing a deferred termination date. The member may change
1624	the termination date within the limitations of subparagraph 1.,
1625	but only with the written approval of the his or her employer;
1626	c.  A properly completed DROP application for service
1627	retirement as provided in this section; and
1628	d.  Any other information required by the division.
1629	3.  The DROP participant is shall be a retiree under the
1630	Florida Retirement System for all purposes, except for paragraph
1631	(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
1632	and 121.122. DROP participation is final and may not be canceled
1633	by the participant after the first payment is credited during
1634	the DROP participation period. However, participation in the
1635	DROP does not alter the participant's employment status, and the
1636	member is such employee shall not be deemed retired from
1637	employment until his or her deferred resignation is effective
1638	and termination occurs as defined provided in s. 121.021(39).
1639	4.  Elected officers are shall be eligible to participate
1640	in the DROP subject to the following:
1641	a.  An elected officer who reaches normal retirement date
1642	during a term of office may defer the election to participate in
1643	the DROP until the next succeeding term in that office. An Such
1644	elected officer who exercises this option may participate in the
1645	DROP for up to 60 calendar months or a period of no longer than
1646	the such succeeding term of office, whichever is less.
1647	b.  An elected or a nonelected participant may run for a
1648	term of office while participating in DROP and, if elected,
1649	extend the DROP termination date accordingly;, except, however,
1650	if such additional term of office exceeds the 60-month
1651	limitation established in subparagraph 1., and the officer does
1652	not resign from office within such 60-month limitation, the
1653	retirement and the participant's DROP is shall be null and void
1654	as provided in sub-subparagraph (c)5.d.
1655	c.  An elected officer who is dually employed and elects to
1656	participate in DROP must terminate all employment relationships
1657	as provided in s. 121.021(39) for the nonelected position shall
1658	be required to satisfy the definition of termination within the
1659	original 60-month period or maximum participation or, with
1660	respect to members who are instructional personnel employed by
1661	the Florida School for the Deaf and the Blind and who have
1662	received authorization by the Board of Trustees of the Florida
1663	School for the Deaf and the Blind to participate in the DROP
1664	beyond 60 months, or who are instructional personnel as defined
1665	in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
1666	authorization by the district school superintendent to
1667	participate in the DROP beyond 60 months, the 96-month
1668	limitation period as provided in subparagraph 1. For DROP
1669	participation ending: for the nonelected position and
1670	(I)  Before July 1, 2010, the officer may continue
1671	employment as an elected officer as provided in s. 121.053. The
1672	elected officer shall will be enrolled as a renewed member in
1673	the Elected Officers' Class or the Regular Class, as provided in
1674	ss. 121.053 and 121.122, on the first day of the month after
1675	termination of employment in the nonelected position and
1676	termination of DROP. Distribution of the DROP benefits shall be
1677	made as provided in paragraph (c).
1678	(II)  On or after July 1, 2010, the officer may continue
1679	employment as an elected officer but must defer termination as
1680	provided in s. 121.053.
1681	(c)  Benefits payable under the DROP.--
1682	1.  Effective on with the date of DROP participation, the
1683	member's initial normal monthly benefit, including creditable
1684	service, optional form of payment, and average final
1685	compensation, and the effective date of retirement are shall be
1686	fixed. The beneficiary established under the Florida Retirement
1687	System is shall be the beneficiary eligible to receive any DROP
1688	benefits payable if the DROP participant dies before completing
1689	prior to the completion of the period of DROP participation. If
1690	In the event a joint annuitant predeceases the member, the
1691	member may name a beneficiary to receive accumulated DROP
1692	benefits payable. The Such retirement benefit, the annual cost
1693	of living adjustments provided in s. 121.101, and interest shall
1694	accrue monthly in the Florida Retirement System Trust Fund. The
1695	Such interest accrues shall accrue at an effective annual rate
1696	of 6.5 percent compounded monthly, on the prior month's
1697	accumulated ending balance, up to the month of termination or
1698	death, except as provided in s. 121.053(7).
1699	2.  Each employee who elects to participate in the DROP may
1700	shall be allowed to elect to receive a lump-sum payment for
1701	accrued annual leave earned in accordance with agency policy
1702	upon beginning participation in the DROP. The Such accumulated
1703	leave payment certified to the division upon commencement of
1704	DROP shall be included in the calculation of the member's
1705	average final compensation. The employee electing the such lump-
1706	sum payment is upon beginning participation in DROP will not be
1707	eligible to receive a second lump-sum payment upon termination,
1708	except to the extent the employee has earned additional annual
1709	leave which, combined with the original payment, does not exceed
1710	the maximum lump-sum payment allowed by the employing agency's
1711	policy or rules. An Such early lump-sum payment shall be based
1712	on the hourly wage of the employee at the time he or she begins
1713	participation in the DROP. If the member elects to wait and
1714	receive a such lump-sum payment upon termination of DROP and
1715	termination of employment with the employer, any accumulated
1716	leave payment made at that time may not cannot be included in
1717	the member's retirement benefit, which was determined and fixed
1718	by law when the employee elected to participate in the DROP.
1719	3.  The effective date of DROP participation and the
1720	effective date of retirement of a DROP participant shall be the
1721	first day of the month selected by the member to begin
1722	participation in the DROP, provided such date is properly
1723	established, with the written confirmation of the employer, and
1724	the approval of the division, on forms required by the division.
1725	4.  Normal retirement benefits and any interest thereon
1726	shall continue to accrue in the DROP until the established
1727	termination date of the DROP, or until the participant
1728	terminates employment or dies prior to such date, except as
1729	provided in s. 121.053(7). Although individual DROP accounts
1730	shall not be established, a separate accounting of each
1731	participant's accrued benefits under the DROP shall be
1732	calculated and provided to participants.
1733	5.  At the conclusion of the participant's DROP, the
1734	division shall distribute the participant's total accumulated
1735	DROP benefits, subject to the following provisions:
1736	a.  The division shall receive verification by the
1737	participant's employer or employers that the such participant
1738	has terminated all employment relationships as provided in s.
1739	121.021(39)(b).
1740	b.  The terminated DROP participant or, if deceased, the
1741	such participant's named beneficiary, shall elect on forms
1742	provided by the division to receive payment of the DROP benefits
1743	in accordance with one of the options listed below. If For a
1744	participant or beneficiary who fails to elect a method of
1745	payment within 60 days after of termination of the DROP, the
1746	division shall will pay a lump sum as provided in sub-sub-
1747	subparagraph (I).
1748	(I)  Lump sum.--All accrued DROP benefits, plus interest,
1749	less withholding taxes remitted to the Internal Revenue Service,
1750	shall be paid to the DROP participant or surviving beneficiary.
1751	(II)  Direct rollover.--All accrued DROP benefits, plus
1752	interest, shall be paid from the DROP directly to the custodian
1753	of an eligible retirement plan as defined in s. 402(c)(8)(B) of
1754	the Internal Revenue Code. However, in the case of an eligible
1755	rollover distribution to the surviving spouse of a deceased
1756	participant, an eligible retirement plan is an individual
1757	retirement account or an individual retirement annuity as
1758	described in s. 402(c)(9) of the Internal Revenue Code.
1759	(III)  Partial lump sum.--A portion of the accrued DROP
1760	benefits shall be paid to the DROP participant or surviving
1761	spouse, less withholding taxes remitted to the Internal Revenue
1762	Service, and the remaining DROP benefits must shall be
1763	transferred directly to the custodian of an eligible retirement
1764	plan as defined in s. 402(c)(8)(B) of the Internal Revenue Code.
1765	However, in the case of an eligible rollover distribution to the
1766	surviving spouse of a deceased participant, an eligible
1767	retirement plan is an individual retirement account or an
1768	individual retirement annuity as described in s. 402(c)(9) of
1769	the Internal Revenue Code. The proportions must shall be
1770	specified by the DROP participant or surviving beneficiary.
1771	c.  The form of payment selected by the DROP participant or
1772	surviving beneficiary must comply complies with the minimum
1773	distribution requirements of the Internal Revenue Code.
1774	d.  A DROP participant who fails to terminate all
1775	employment relationships as provided defined in s.
1776	121.021(39)(b) shall be deemed as not to be retired, and the
1777	DROP election is shall be null and void. Florida Retirement
1778	System membership shall be reestablished retroactively to the
1779	date of the commencement of the DROP, and each employer with
1780	whom the participant continues employment must shall be required
1781	to pay to the Florida Retirement System Trust Fund the
1782	difference between the DROP contributions paid in paragraph (i)
1783	and the contributions required for the applicable Florida
1784	Retirement System class of membership during the period the
1785	member participated in the DROP, plus 6.5 percent interest
1786	compounded annually.
1787	6.  The retirement benefits of any DROP participant who
1788	terminates all employment relationships as provided in s.
1789	121.021(39) but is reemployed in violation of the reemployment
1790	provisions of subsection (9) shall be suspended during those
1791	months in which the retiree is in violation. Any retiree in
1792	violation of this subparagraph and any employer that employs or
1793	appoints such person without notifying the Division of
1794	Retirement to suspend retirement benefits are jointly and
1795	severally liable for any benefits paid during the reemployment
1796	limitation period. The employer must have a written statement
1797	from the retiree that he or she is not retired from a state-
1798	administered retirement system. Any retirement benefits received
1799	by a retiree while employed in violation of the reemployment
1800	limitations must be repaid to the Florida Retirement System
1801	Trust Fund, and his or her retirement benefits shall remain
1802	suspended until payment is made. Benefits suspended beyond the
1803	end of the reemployment limitation period apply toward repayment
1804	of benefits received in violation of the reemployment
1805	limitation.
1806	7.6.  The accrued benefits of any DROP participant, and any
1807	contributions accumulated under the such program, are shall not
1808	be subject to assignment, execution, attachment, or to any legal
1809	process whatsoever, except for qualified domestic relations
1810	orders by a court of competent jurisdiction, income deduction
1811	orders as provided in s. 61.1301, and federal income tax levies.
1812	8.7.  DROP participants are shall not be eligible for
1813	disability retirement benefits as provided in subsection (4).
1814	(d)  Death benefits under the DROP.--
1815	1.  Upon the death of a DROP participant, the named
1816	beneficiary is shall be entitled to apply for and receive the
1817	accrued benefits in the DROP as provided in sub-subparagraph
1818	(c)5.b.
1819	2.  The normal retirement benefit accrued to the DROP
1820	during the month of a participant's death is shall be the final
1821	monthly benefit credited for such DROP participant.
1822	3.  Eligibility to participate in the DROP terminates upon
1823	death of the participant. If the participant dies on or after
1824	the effective date of enrollment in the DROP, but before prior
1825	to the first monthly benefit is being credited to the DROP,
1826	Florida Retirement System benefits are shall be paid in
1827	accordance with subparagraph (7)(c)1. or subparagraph 2.
1828	4.  A DROP participant's participants' survivors are shall
1829	not be eligible to receive Florida Retirement System death
1830	benefits as provided in paragraph (7)(d).
1831	(e)  Cost-of-living adjustment.--On each July 1, the
1832	participant's participants' normal retirement benefit shall be
1833	increased as provided in s. 121.101.
1834	(f)  Retiree health insurance subsidy.--DROP participants
1835	are not eligible to apply for the retiree health insurance
1836	subsidy payments as provided in s. 112.363 until such
1837	participants have terminated employment and participation in the
1838	DROP.
1839	(g)  Renewed membership.--DROP participants are shall not
1840	be eligible for renewed membership in the Florida Retirement
1841	System under ss. 121.053 and 121.122 until all employment
1842	relationships are terminated termination of employment is
1843	effectuated as provided in s. 121.021(39)(b).
1844	(h)  Employment limitation after DROP participation.-- Upon
1845	satisfying the definition of termination of employment as
1846	defined provided in s. 121.021(39)(b), DROP participants are
1847	shall be subject to the same such reemployment limitations as
1848	other retirees. Reemployment restrictions applicable to retirees
1849	as provided in subsection (9) do shall not apply to DROP
1850	participants until their employment and participation in the
1851	DROP are terminated.
1852	(i)  Contributions.--
1853	1.  All employers paying the salary of a DROP participant
1854	filling a regularly established position shall contribute 8.0
1855	percent of such participant's gross compensation for the period
1856	of July 1, 2002, through June 30, 2003, and the percentage 11.56
1857	percent of such compensation required by s. 121.71 thereafter,
1858	which shall constitute the entire employer DROP contribution
1859	with respect to such participant. Such contributions, payable to
1860	the Florida Retirement System Trust Fund in the same manner as
1861	required in s. 121.071, must shall be made as appropriate for
1862	each pay period and are in addition to contributions required
1863	for social security and the Retiree Health Insurance Subsidy
1864	Trust Fund. Such employer, social security, and health insurance
1865	subsidy contributions are not included in the DROP.
1866	2.  The employer shall, in addition to subparagraph 1.,
1867	also withhold one-half of the entire social security
1868	contribution required for the participant. Contributions for
1869	social security by each participant and each employer, in the
1870	amount required for social security coverage as now or hereafter
1871	provided by the federal Social Security Act, are shall be in
1872	addition to contributions specified in subparagraph 1.
1873	3.  All employers paying the salary of a DROP participant
1874	filling a regularly established position shall contribute the
1875	percent of such participant's gross compensation required in s.
1876	121.071(4), which shall constitute the employer's health
1877	insurance subsidy contribution with respect to such participant.
1878	Such contributions must shall be deposited by the administrator
1879	in the Retiree Health Insurance Subsidy Trust Fund.
1880	(j)  Forfeiture of retirement benefits.--Nothing in This
1881	section does not shall be construed to remove DROP participants
1882	from the scope of s. 8(d), Art. II of the State Constitution, s.
1883	112.3173, and paragraph (5)(f). DROP participants who commit a
1884	specified felony offense while employed are will be subject to
1885	forfeiture of all retirement benefits, including DROP benefits,
1886	pursuant to those provisions of law.
1887	(k)  Administration of program.--The division shall adopt
1888	make such rules as are necessary for the effective and efficient
1889	administration of this subsection. The division is shall not be
1890	required to advise members of the federal tax consequences of an
1891	election related to the DROP but may advise members to seek
1892	independent advice.
1893	(14)  PAYMENT OF BENEFITS.--This subsection applies to the
1894	payment of benefits to a payee (retiree or beneficiary) under
1895	the Florida Retirement System:
1896	(a)  Federal income tax shall be withheld in accordance
1897	with federal law, unless the payee elects otherwise on Form W-
1898	4P. The division shall prepare and distribute to each recipient
1899	of monthly retirement benefits an appropriate income tax form
1900	that reflects the recipient's income and federal income tax
1901	withheld for the calendar year just ended.
1902	(b)  Subject to approval by the division in accordance with
1903	rule 60S-4.015, Florida Administrative Code, a payee receiving
1904	retirement benefits under the Florida Retirement system may also
1905	have the following payments deducted from his or her monthly
1906	benefit:
1907	1.  Premiums for life and health-related insurance policies
1908	from approved companies.
1909	2.  Life insurance premiums for the State Group Life
1910	Insurance Plan, if authorized in writing by the payee and by the
1911	department of Management Services.
1912	3.  Repayment of overpayments from the Florida Retirement
1913	System Trust Fund, the State Employees' Health Insurance Trust
1914	Fund, or the State Employees' Life Insurance Trust Fund, upon
1915	notification of the payee.
1916	4.  Payments to an alternate payee for alimony or, child
1917	support pursuant to an income deduction order under s. 61.1301,
1918	or division of marital assets pursuant to a qualified domestic
1919	relations order under s. 222.21 or an income deduction order
1920	under s. 61.1301.
1921	5.  Payments to the Internal Revenue Service for federal
1922	income tax levies, upon notification of the division by the
1923	Internal Revenue Service.
1924	(c)  A payee must shall notify the division of any change
1925	in his or her address. The division may suspend benefit payments
1926	to a payee if correspondence sent to the payee's mailing address
1927	is returned due to an incorrect address. Benefit payments shall
1928	be resumed upon notification to the division of the payee's new
1929	address.
1930	(d)  A payee whose retirement benefits are reduced by the
1931	application of maximum benefit limits under s. 415(b) of the
1932	Internal Revenue Code, as specified in s. 121.30(5), shall have
1933	the portion of his or her calculated benefit in the Florida
1934	Retirement System defined benefit plan which exceeds such
1935	federal limitation paid through the Florida Retirement System
1936	Preservation of Benefits Plan, as provided in s. 121.1001.
1937	(e)  The Division of Retirement may issue retirement
1938	benefits payable for division of marital assets pursuant to a
1939	qualified domestic relations order directly to the alternate
1940	payee, any court order to the contrary notwithstanding, in order
1941	to meet Internal Revenue Code requirements.
1942	(f)(e)  A No benefit may not be reduced for the purpose of
1943	preserving the member's eligibility for a federal program.
1944	(g)(f)  The division shall adopt rules establishing
1945	procedures for determining that the persons to whom benefits are
1946	being paid are still living. The division shall suspend the
1947	benefits being paid to any payee if when it is unable to contact
1948	such payee and to confirm that he or she is still living.
1949	Section 10.  Section 121.1115, Florida Statutes, is amended
1950	to read:
1951	121.1115  Purchase of retirement credit for out-of-state or
1952	and federal service.--Effective January 1, 1995, a member of the
1953	Florida Retirement System may purchase creditable service for
1954	periods of public employment in another state and receive
1955	creditable service for such periods of employment. Service with
1956	the Federal Government, including any active military service,
1957	may be claimed. Upon completion of each year of service earned
1958	under the Florida Retirement System, a member may purchase up to
1959	1 year of retirement credit for his or her out-of-state service,
1960	subject to the following provisions:
1961	(1)  LIMITATIONS AND CONDITIONS.--To receive credit for the
1962	out-of-state service:
1963	(a)  The out-of-state service being claimed must have been:
1964	1.  Performed in a position of employment with the state or
1965	a political subdivision thereof or with the Federal Government;
1966	2.  Covered by a retirement or pension plan provided by the
1967	state or political subdivision, or by the Federal Government, as
1968	appropriate; and
1969	3.  Performed prior to a period of membership in the
1970	Florida Retirement System.
1971	(b)  The member must have completed a minimum of 6 years of
1972	creditable service under the Florida Retirement System,
1973	excluding out-of-state service and in-state service claimed and
1974	purchased under s. 121.1122.
1975	(c)  Not more than 5 years of creditable service may be
1976	claimed for creditable service aggregated under the provisions
1977	of this section and s. 121.1122.
1978	(d)  The out-of-state service credit claimed under this
1979	section shall be credited only as service in the Regular Class
1980	of membership, and any benefit or pension based thereon is shall
1981	be subject to the limitations and restrictions of s. 112.65.
1982	(e)  The member is not eligible for and may not receive a
1983	pension or benefit from a retirement or pension plan based on or
1984	including the out-of-state service. Eligibility for or the
1985	receipt of contributions to a retirement plan made by the
1986	employer on behalf of the employee is considered a benefit.
1987	(f)(e)  A member shall be eligible To receive service
1988	credit for out-of-state service performed after leaving the
1989	Florida Retirement System, the member must complete only upon
1990	return to membership and completion of at least 1 year of
1991	creditable service in the Florida Retirement System following
1992	the out-of-state service.
1993	(2)  COST.--For each year claimed, the member must pay into
1994	the Florida Retirement System Trust Fund an amount equal to 20
1995	percent of the member's annual compensation for the first full
1996	work year of creditable service earned under the Florida
1997	Retirement System, but not less than $12,000, plus interest at
1998	6.5 percent compounded annually from the date of first annual
1999	salary earned until full payment is made. The employer may pay
2000	all or a portion of the cost of this service credit.
2001	Section 11.  Subsection (2) of section 121.1122, Florida
2002	Statutes, is amended to read:
2003	121.1122  Purchase of retirement credit for in-state public
2004	service and in-state service in accredited nonpublic schools and
2005	colleges, including charter schools and charter technical career
2006	centers.--Effective January 1, 1998, a member of the Florida
2007	Retirement System may purchase creditable service for periods of
2008	certain public or nonpublic employment performed in this state,
2009	as provided in this section.
2010	(2)  LIMITATIONS AND CONDITIONS.--
2011	(a)  A member is not eligible to receive credit for in-
2012	state service under this section until he or she has completed 6
2013	years of creditable service under the Florida Retirement System,
2014	excluding service purchased under this section and out-of-state
2015	service claimed and purchased under s. 121.1115.
2016	(b)  A member may not purchase and receive credit for more
2017	than 5 years of creditable service aggregated under the
2018	provisions of this section and s. 121.1115.
2019	(c)  Service credit claimed under this section shall be
2020	credited only as service in the Regular Class of membership and
2021	is shall be subject to the provisions of s. 112.65.
2022	(d)  Service credit may not be purchased under this section
2023	if the member is eligible to receive or is receiving a pension
2024	or benefit from a retirement or pension plan based on or
2025	including the service. Eligibility for or the receipt of
2026	contributions to a retirement plan made by the employer on
2027	behalf of the employee is considered a benefit.
2028	(e)(d)  A member is shall be eligible to receive service
2029	credit for in-state service performed after leaving the Florida
2030	Retirement System only after upon returning to membership and
2031	completing at least 1 year of creditable service in the Florida
2032	Retirement System following the in-state service.
2033	(f)(e)  The service claimed must have been service covered
2034	by a retirement or pension plan provided by the employer.
2035	Section 12.  Section 121.122, Florida Statutes, is amended
2036	to read:
2037	121.122  Renewed membership in system.--
2038	(1)  Except as provided in s. 121.053, effective July 1,
2039	1991, through June 30, 2010 any retiree of a state-administered
2040	retirement system who is initially reemployed employed in a
2041	regularly established position with a covered employer,
2042	including an elective public office that does not qualify for
2043	the Elected Officer's Class, shall be enrolled as a compulsory
2044	member of the Regular Class of the Florida Retirement System.
2045	or, Effective July 1, 1997, through June 30, 2010, any retiree
2046	of a state-administered retirement system who is initially
2047	reemployed employed in a position included in the Senior
2048	Management Service Class shall be enrolled as a compulsory
2049	member of the Senior Management Service Class of the Florida
2050	Retirement System as provided in s. 121.055. A retiree is, and
2051	shall be entitled to receive an additional retirement benefit,
2052	subject to the following conditions:
2053	(1)(a)  Such member must shall resatisfy the age and
2054	service requirements as provided in this chapter for initial
2055	membership under the system, unless such member elects to
2056	participate in the Senior Management Service Optional Annuity
2057	Program in lieu of the Senior Management Service Class, as
2058	provided in s. 121.055(6).
2059	(b)  Such member is shall not be entitled to disability
2060	benefits as provided in s. 121.091(4).
2061	(c)  Such member must meet the reemployment after
2062	retirement limitations as provided in s. 121.091(9), as
2063	applicable.
2064	(d)(2)  Upon renewed membership or reemployment of a
2065	retiree, the employer of such member shall pay the applicable
2066	employer contributions as required by ss. 121.71, 121.74,
2067	121.76, and 112.363 121.055(3) and 121.071(1)(a) and (4).
2068	(e)(3)  Such member is shall be entitled to purchase
2069	additional retirement credit in the Regular Class or the Senior
2070	Management Service Class, as applicable, for any postretirement
2071	service performed in a regularly established position as
2072	follows:
2073	1.(a)  For regular class service prior to July 1, 1991, by
2074	paying the Regular Class applicable employee and employer
2075	contributions for the period being claimed, plus 4 percent
2076	interest compounded annually from first year of service claimed
2077	until July 1, 1975, and 6.5 percent interest compounded
2078	thereafter, until full payment is made to the Florida Retirement
2079	System Trust Fund; or
2080	2.(b)  For Senior Management Service Class prior to June 1,
2081	1997, as provided in s. 121.055(1)(j).
2082
2083	The contribution for postretirement service between July 1,
2084	1985, and July 1, 1991, for which the reemployed retiree
2085	contribution was paid, shall be the difference between such
2086	contribution and the total applicable contribution for the
2087	period being claimed, plus interest. The employer of such member
2088	may pay the applicable employer contribution in lieu of the
2089	member. If a member does not wish to claim credit for all of the
2090	postretirement service for which he or she is eligible, the
2091	service the member claims must be the most recent service.
2092	(f)(4)  No creditable service for which credit was
2093	received, or which remained unclaimed, at retirement may be
2094	claimed or applied toward service credit earned following
2095	renewed membership. However, service earned as an elected
2096	officer with renewed membership in the Elected Officers' Class
2097	may be used in conjunction with creditable service earned under
2098	this section, provided the applicable vesting requirements and
2099	other existing statutory conditions required by this chapter are
2100	met.
2101	(g)(5)  Notwithstanding any other limitations provided in
2102	this section, a participant of the State University System
2103	Optional Retirement Program, the State Community College
2104	Optional Retirement Program, or the Senior Management Service
2105	Optional Annuity Program who terminated employment and commenced
2106	receiving a distribution an annuity under the provisions of the
2107	optional program, who initially renews membership in the Regular
2108	Class as required by this section upon reemployment after
2109	retirement, and who had previously earned creditable Florida
2110	Retirement System service that was not included in any
2111	retirement benefit may include such previous service toward
2112	vesting and service credit in the second career benefit provided
2113	under renewed membership.
2114	(h)(6)  A Any renewed member who is not receiving the
2115	maximum health insurance subsidy provided in s. 112.363 is shall
2116	be entitled to earn additional credit toward the maximum health
2117	insurance subsidy. Any additional subsidy due because of such
2118	additional credit may shall be received only at the time of
2119	payment of the second career retirement benefit. In no case
2120	shall The total health insurance subsidy received by a retiree
2121	receiving benefits from initial and renewed membership may not
2122	exceed the maximum allowed in s. 112.363.
2123	(2)  A retiree of a state-administered retirement system
2124	who is initially reemployed on or after July 1, 2010, is not
2125	eligible for renewed membership.
2126	Section 13.  Section 121.136, Florida Statutes, is amended
2127	to read:
2128	121.136  Annual benefit statement to members.--Each year
2129	Beginning January 1, 1993, and each January thereafter, the
2130	department shall provide each active member of the Florida
2131	Retirement System with 5 or more years of creditable service an
2132	annual statement of benefits that provides. Such statement
2133	should provide the member with basic data about the member's
2134	retirement account. At a minimum Minimally, it must shall
2135	include the member's retirement plan, accrued service credit the
2136	amount of funds on deposit in the retirement account, and an
2137	estimate of retirement benefits.
2138	Section 14.  Section 121.1905, Florida Statutes, is amended
2139	to read:
2140	121.1905  Division of Retirement; creation.--
2141	(1)  There is created the Division of Retirement within the
2142	Department of Management Services.
2143	(2)  The mission of the Division of Retirement is to
2144	provide quality and cost-effective retirement services as
2145	measured by member satisfaction and by comparison with
2146	administrative costs of comparable retirement systems.
2147	Section 15.  Paragraph (a) of subsection (2) of section
2148	121.23, Florida Statutes, is amended to read:
2149	121.23  Disability retirement and special risk membership
2150	applications; Retirement Commission; powers and duties; judicial
2151	review.--The provisions of this section apply to all proceedings
2152	in which the administrator has made a written final decision on
2153	the merits respecting applications for disability retirement,
2154	reexamination of retired members receiving disability benefits,
2155	applications for special risk membership, and reexamination of
2156	special risk members in the Florida Retirement System. The
2157	jurisdiction of the State Retirement Commission under this
2158	section shall be limited to written final decisions of the
2159	administrator on the merits.
2160	(2)  A member shall be entitled to a hearing before the
2161	State Retirement Commission pursuant to ss. 120.569 and
2162	120.57(1) on the merits of any written adverse decision of the
2163	administrator, if he or she files with the commission a written
2164	request for such hearing within 21 days after receipt of such
2165	written decision from the administrator. For the purpose of such
2166	hearings, the commission shall be an "agency head" as defined by
2167	s. 120.52.
2168	(a)  The commission may shall have the authority to issue
2169	orders as a result of the a hearing that are shall be binding on
2170	all parties to the dispute and. The commission may order any
2171	action that it deems appropriate. Any disability retirement
2172	order of the commission that issued pursuant to this subsection
2173	which sustains the application of the member may include an
2174	amount, to be determined by the commission, for reasonable
2175	attorney's fees and taxable costs, which shall be calculated in
2176	accordance with the statewide uniform guidelines for taxation of
2177	costs in civil actions. The amount of the attorney's fees fee
2178	may not exceed 50 percent of the initial yearly benefit awarded
2179	under s. 121.091(4). In cases involving disability retirement,
2180	the State Retirement commission shall require the member to
2181	present substantial competent medical evidence that meets the
2182	requirements of s. 121.091(4)(c)2. and 3., and may require
2183	vocational evidence, before awarding disability retirement
2184	benefits.
2185	Section 16.  Paragraph (a) of subsection (1) of section
2186	121.24, Florida Statutes, is amended to read:
2187	121.24  Conduct of commission business; legal and other
2188	assistance; compensation.--
2189	(1)  The commission shall conduct its business within the
2190	following guidelines:
2191	(a)  For purposes of hearing appeals under s. 121.23, the
2192	commission may meet in panels consisting of no not fewer than
2193	three members. For the purpose of meeting in these panels, a
2194	quorum shall be not fewer than two members. For all other
2195	purposes, A quorum shall consist of three members. The
2196	concurring vote of a majority of the members present is shall be
2197	required to reach a decision, issue orders, and conduct the
2198	business of the commission.
2199	Section 17.  Paragraph (h) of subsection (3) and paragraphs
2200	(a) and (e) of subsection (5) of section 121.35, Florida
2201	Statutes, are amended, and paragraph (g) is added to subsection
2202	(5) of that section, to read:
2203	121.35  Optional retirement program for the State
2204	University System.--
2205	(3)  ELECTION OF OPTIONAL PROGRAM.--
2206	(h)  A participant in the optional retirement program may
2207	not participate in more than one state-administered retirement
2208	system, plan, or class simultaneously. Except as provided in s.
2209	121.052(6)(d), a participant who is or becomes dually employed
2210	in two or more positions covered by the Florida Retirement
2211	System, one of which is eligible for the optional program and
2212	one of which is not, may remain a member of the optional program
2213	and contributions shall be paid as required only on the salary
2214	earned in the position eligible for the optional program during
2215	the such period of dual employment; or, within 90 days after
2216	becoming dually employed, he or she may elect membership in the
2217	Regular Class of the Florida Retirement System in lieu of the
2218	optional program and contributions shall be paid as required on
2219	the total salary received for all employment. At retirement, the
2220	average final compensation used to calculate any benefits for
2221	which the member becomes eligible under the Florida Retirement
2222	System must shall be based on all salary reported for both
2223	positions during such period of dual employment. If the When
2224	such member ceases to be dually employed, he or she may, within
2225	90 days, elect to remain in the Florida Retirement System class
2226	for which he or she is eligible or to again become a participant
2227	in the optional retirement program. Failure to elect membership
2228	in the optional program within 90 days shall result in
2229	compulsory membership in the Florida Retirement System, except
2230	that a member filling a faculty position at under a college that
2231	has a faculty practice plan at the University of Florida, at or
2232	the Medical Center at the University of South Florida, or other
2233	state university shall again participate in the optional
2234	retirement program as required in s. 121.051(1)(a).
2235	(5)  BENEFITS.--
2236	(a)  Benefits are shall be payable under the optional
2237	retirement program only to vested participants in the program,
2238	or their beneficiaries as designated by the participant in the
2239	contract with a provider company, and such benefits shall be
2240	paid only by the designated company in accordance with s. 403(b)
2241	of the Internal Revenue Code and in accordance with the terms of
2242	the annuity contract or contracts applicable to the participant.
2243	Benefits shall accrue in individual accounts that are
2244	participant-directed, portable, and funded by employer
2245	contributions and the earnings thereon. The participant must be
2246	terminated from all employment relationships with all Florida
2247	Retirement System employers, as provided in s. 121.021(39), to
2248	begin receiving the employer-funded benefit. Benefits funded by
2249	employer contributions are shall be payable in accordance with
2250	the following terms and conditions:
2251	1.  Benefits shall be paid payable only to a participant,
2252	to his or her beneficiaries, or to his or her estate, as
2253	designated by the participant.
2254	2.  Benefits shall be paid by the provider company or
2255	companies in accordance with the law, the provisions of the
2256	contract, and any applicable department board rule or policy.
2257	3.  In the event of a participant's death, moneys
2258	accumulated by, or on behalf of, the participant, less
2259	withholding taxes remitted to the Internal Revenue Service, if
2260	any, shall be distributed to the participant's designated
2261	beneficiary or beneficiaries, or to the participant's estate, as
2262	if the participant retired on the date of death, as provided in
2263	paragraph (c). No other death benefits are shall be available to
2264	for survivors of participants under the optional retirement
2265	program except for such benefits, or coverage for such benefits,
2266	as are separately afforded by the employer, at the employer's
2267	discretion.
2268	(e)  A participant who chooses to receive his or her
2269	benefits upon termination as defined in s. 121.021 must of
2270	employment shall have responsibility to notify the provider
2271	company of the date on which he or she wishes benefits funded by
2272	employer contributions to begin. Benefits may be deferred until
2273	such time as the participant chooses to make such application.
2274	(g)  For purposes of this section, "retiree" means a former
2275	participant of the optional retirement program who has
2276	terminated employment and has taken a distribution as provided
2277	in this subsection, except for a mandatory distribution of a de
2278	minimis account authorized by the department.
2279	Section 18.  Paragraph (f) of subsection (2) of section
2280	121.4501, Florida Statutes, is amended to read:
2281	121.4501  Public Employee Optional Retirement Program.--
2282	(2)  DEFINITIONS.--As used in this part, the term:
2283	(f)  "Eligible employee" means an officer or employee, as
2284	defined in s. 121.021(11), who:
2285	1.  Is a member of, or is eligible for membership in, the
2286	Florida Retirement System, including any renewed member of the
2287	Florida Retirement System initially enrolled before July 1,
2288	2010; or
2289	2.  Participates in, or is eligible to participate in, the
2290	Senior Management Service Optional Annuity Program as
2291	established under s. 121.055(6), the State Community College
2292	System Optional Retirement Program as established under s.
2293	121.051(2)(c), or the State University System Optional
2294	Retirement Program established under s. 121.35.
2295
2296	The term does not include any member participating in the
2297	Deferred Retirement Option Program established under s.
2298	121.091(13), a retiree of a state-administered retirement system
2299	initially reemployed on or after July 1, 2010, or a mandatory
2300	participant of the State University System Optional Retirement
2301	Program established under s. 121.35.
2302	Section 19.  Paragraphs (a) and (b) of subsection (1) of
2303	section 121.591, Florida Statutes, is amended to read:
2304	121.591  Benefits payable under the Public Employee
2305	Optional Retirement Program of the Florida Retirement
2306	System.--Benefits may not be paid under this section unless the
2307	member has terminated employment as provided in s.
2308	121.021(39)(a) or is deceased and a proper application has been
2309	filed in the manner prescribed by the state board or the
2310	department. The state board or department, as appropriate, may
2311	cancel an application for retirement benefits when the member or
2312	beneficiary fails to timely provide the information and
2313	documents required by this chapter and the rules of the state
2314	board and department. In accordance with their respective
2315	responsibilities as provided herein, the State Board of
2316	Administration and the Department of Management Services shall
2317	adopt rules establishing procedures for application for
2318	retirement benefits and for the cancellation of such application
2319	when the required information or documents are not received. The
2320	State Board of Administration and the Department of Management
2321	Services, as appropriate, are authorized to cash out a de
2322	minimis account of a participant who has been terminated from
2323	Florida Retirement System covered employment for a minimum of 6
2324	calendar months. A de minimis account is an account containing
2325	employer contributions and accumulated earnings of not more than
2326	$5,000 made under the provisions of this chapter. Such cash-out
2327	must either be a complete lump-sum liquidation of the account
2328	balance, subject to the provisions of the Internal Revenue Code,
2329	or a lump-sum direct rollover distribution paid directly to the
2330	custodian of an eligible retirement plan, as defined by the
2331	Internal Revenue Code, on behalf of the participant. If any
2332	financial instrument issued for the payment of retirement
2333	benefits under this section is not presented for payment within
2334	180 days after the last day of the month in which it was
2335	originally issued, the third-party administrator or other duly
2336	authorized agent of the State Board of Administration shall
2337	cancel the instrument and credit the amount of the instrument to
2338	the suspense account of the Public Employee Optional Retirement
2339	Program Trust Fund authorized under s. 121.4501(6). Any such
2340	amounts transferred to the suspense account are payable upon a
2341	proper application, not to include earnings thereon, as provided
2342	in this section, within 10 years after the last day of the month
2343	in which the instrument was originally issued, after which time
2344	such amounts and any earnings thereon shall be forfeited. Any
2345	such forfeited amounts are assets of the Public Employee
2346	Optional Retirement Program Trust Fund and are not subject to
2347	the provisions of chapter 717.
2348	(1)  NORMAL BENEFITS.--Under the Public Employee Optional
2349	Retirement Program:
2350	(a)  Benefits in the form of vested accumulations as
2351	described in s. 121.4501(6) shall be payable under this
2352	subsection in accordance with the following terms and
2353	conditions:
2354	1.  To the extent vested, benefits shall be payable only to
2355	a participant.
2356	2.  Benefits shall be paid by the third-party administrator
2357	or designated approved providers in accordance with the law, the
2358	contracts, and any applicable board rule or policy.
2359	3.  To receive benefits under this subsection, the
2360	participant must be terminated from all employment with all
2361	Florida Retirement System employers, as provided in s.
2362	121.021(39).
2363	4.  Benefit payments may not be made until the participant
2364	has been terminated for 3 calendar months, except that the board
2365	may authorize by rule for the distribution of up to 10 percent
2366	of the participant's account after being terminated for 1
2367	calendar month if a participant has reached the normal
2368	retirement date as defined in s. 121.021 requirements of the
2369	defined benefit plan, as provided in s. 121.021(29).
2370	5.  If a member or former member of the Florida Retirement
2371	System receives an invalid distribution from the Public Employee
2372	Optional Retirement Program Trust Fund, such person shall repay
2373	the full invalid distribution to the trust fund within 90 days
2374	after receipt of final notification by the State Board of
2375	Administration or the third-party administrator that the
2376	distribution was invalid. If such person fails to repay the full
2377	invalid distribution within 90 days after receipt of final
2378	notification, the person may be deemed retired from the Public
2379	Employee Optional Retirement Program by the state board, as
2380	provided pursuant to s. 121.4501(2)(j), and shall be subject to
2381	the provisions of s. 121.122. If such person is deemed retired
2382	by the state board, any joint and several liability set out in
2383	s. 121.091(9)(d)2. s. 121.091(9)(c)2. becomes null and void, and
2384	the state board, the Department of Management Services, or the
2385	employing agency is not liable for gains on payroll
2386	contributions that have not been deposited to the person's
2387	account in the Public Employee Optional Retirement Program,
2388	pending resolution of the invalid distribution. The member or
2389	former member who has been deemed retired or who has been
2390	determined by the board to have taken an invalid distribution
2391	may appeal the agency decision through the complaint process as
2392	provided under s. 121.4501(9)(f)3. As used in this subparagraph,
2393	the term "invalid distribution" means any distribution from an
2394	account in the Public Employee Optional Retirement Program which
2395	is taken in violation of the provisions of this section, s.
2396	121.091(9), or s. 121.4501.
2397	(b)  If a participant elects to receive his or her benefits
2398	upon termination of employment as defined in s. 121.021, the
2399	participant must submit a written application or an equivalent
2400	form to the third-party administrator indicating his or her
2401	preferred distribution date and selecting an authorized method
2402	of distribution as provided in paragraph (c). The participant
2403	may defer receipt of benefits until he or she chooses to make
2404	such application, subject to federal requirements.
2405	Section 20.  Subsection (1) of section 238.183, Florida
2406	Statutes, is amended to read:
2407	238.183  Developmental research school and Florida School
2408	for the Deaf and the Blind instructional personnel; reemployment
2409	after retirement.--
2410	(1)  Notwithstanding any other law, instructional
2411	personnel, as defined in s. 1012.01(2), employed by a
2412	developmental research school or the Florida School for the Deaf
2413	and the Blind are eligible for reemployment after retirement in
2414	the same manner as classroom teachers who are employed by the
2415	district school boards, as described in ss. 121.091(9)(b)3. and
2416	238.181(2)(c).
2417	Section 21.  Paragraph (g) of subsection (3) and subsection
2418	(8) of section 1012.33, Florida Statutes, are amended to read:
2419	1012.33  Contracts with instructional staff, supervisors,
2420	and school principals.--
2421	(3)
2422	(g)  Beginning July 1, 2001, for each employee who enters
2423	into a written contract, pursuant to this section, in a school
2424	district in which the employee was not employed as of June 30,
2425	2001, or was employed as of June 30, 2001, but has since broken
2426	employment with that district for 1 school year or more, for
2427	purposes of pay, a district school board must recognize and
2428	accept each year of full-time public school teaching service
2429	earned in the State of Florida or outside the state and for
2430	which the employee received a satisfactory performance
2431	evaluation. Instructional personnel employed pursuant to s.
2432	121.091(9)(b)3. are exempt from the provisions of this
2433	paragraph.
2434	(8)  Notwithstanding any other provision of law, a retired
2435	any member who has retired may interrupt retirement and be
2436	reemployed in any public school. A Any member so reemployed by
2437	the same district from which he or she retired may be employed
2438	on a probationary contractual basis as provided in subsection
2439	(1); however, no regular retirement employee shall be eligible
2440	to renew membership under a retirement system created by chapter
2441	121 or chapter 238.
2442	Section 22.  Sections 121.093, 121.094, and 121.45, Florida
2443	Statutes, are repealed.
2444	Section 23.  The Legislature finds that a proper and
2445	legitimate state purpose is served when employees and retirees
2446	of the state and its political subdivisions, as well as the
2447	dependents, survivors, and beneficiaries of such employees and
2448	retirees, are extended the basic protections afforded by
2449	governmental retirement systems that provide fair and adequate
2450	benefits and that are managed, administered, and funded in an
2451	actuarially sound manner as required by s. 14, Art. X of the
2452	State Constitution and part VII of chapter 112, Florida
2453	Statutes. Therefore, the Legislature determines and declares
2454	that the amendment of s. 121.091, Florida Statutes, by this act
2455	fulfills an important state interest.
2456	Section 24.  This act shall take effect July 1, 2009.

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