HB 249

1	A bill to be entitled
2	An act relating to Special Risk Class retirement benefits;
3	amending s. 121.091, F.S.; prohibiting certain members of
4	the Special Risk Class from being reemployed or
5	contracting with the same employing agency from which the
6	member retired; extending the period of time during which
7	certain Special Risk Class members may participate in the
8	Florida Retirement System Deferred Retirement Option
9	program; providing legislative findings with respect to
10	the state's interest in protecting the public's safety and
11	welfare by extending retirement benefits for certain
12	officers and funding increased retirement benefits in an
13	actuarially sound manner; providing a declaration of
14	important state interest; providing an effective date.
15
16	WHEREAS, one of the most fundamental mechanisms for
17	ensuring the safety and welfare of the public is through the
18	state's law enforcement agencies and correctional institutions,
19	and
20	WHEREAS, law enforcement agencies and correctional
21	institutions throughout this state and the nation are
22	experiencing great difficulty in recruiting and retaining well-
23	qualified law enforcement and correctional officers, and
24	WHEREAS, this need is projected to become more critical in
25	the future, and
26	WHEREAS, the most critical need is to recruit and retain
27	line officers who have daily and direct contact with the
28	criminal element, and
29	WHEREAS, because such work is physically demanding and
30	arduous and often requires extraordinary agility and mental
31	acuity that can diminish with age, persons employed in these
32	positions are classified as special risk and able to retire at
33	an earlier age, and
34	WHEREAS, one mechanism for retaining qualified officers is
35	to extend the amount of time that such officers can remain in
36	the Deferred Retirement Option Program (DROP) if such officers
37	can demonstrate that they retain the necessary physical and
38	mental capacity to continue to competently perform their job
39	duties, NOW, THEREFORE,
40
41	Be It Enacted by the Legislature of the State of Florida:
42
43	Section 1.  Paragraph (f) is added to subsection (9) of
44	section 121.091, Florida Statutes, and paragraphs (a) and (b) of
45	subsection (13) of that section are amended, to read:
46	121.091  Benefits payable under the system.--Benefits may
47	not be paid under this section unless the member has terminated
48	employment as provided in s. 121.021(39)(a) or begun
49	participation in the Deferred Retirement Option Program as
50	provided in subsection (13), and a proper application has been
51	filed in the manner prescribed by the department. The department
52	may cancel an application for retirement benefits when the
53	member or beneficiary fails to timely provide the information
54	and documents required by this chapter and the department's
55	rules. The department shall adopt rules establishing procedures
56	for application for retirement benefits and for the cancellation
57	of such application when the required information or documents
58	are not received.
59	(9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
60	(f)  Notwithstanding any other provision in this section, a
61	member of the Special Risk Class who is employed as a law
62	enforcement officer, correctional officer, or community-based
63	correctional probation officer, as described in s. 121.0515(2),
64	who has a rank or the equivalent rank of captain or below, and
65	who participated in DROP for up to 36 calendar months beyond the
66	60-month period, at the conclusion of his or her participation
67	in DROP, may not be employed, reemployed, or retained in a
68	contractual capacity by the same employing agency from which the
69	member retired; however, the member may be retained by the
70	employing agency as a part-time or auxiliary law enforcement
71	officer, as those terms are defined in s. 943.10, if the member
72	is serving on a voluntary basis and receives no more than $1 per
73	calendar year in remuneration for services rendered directly for
74	the employing agency. Any person who is reemployed or retained
75	in a contractual capacity in violation of this paragraph shall
76	void his or her application for retirement benefits. Any person
77	who violates this paragraph and any employing agency that
78	knowingly employs or contracts with such person in violation of
79	this paragraph is jointly and severally liable for reimbursement
80	to the Florida Retirement System Trust Fund for any retirement
81	benefits improperly paid during the reemployment or contractual
82	period. This paragraph does not apply to a retiree who is
83	elected to an office or appointed to an office by the Governor
84	or by the Governor and Cabinet.
85	(13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
86	subject to this section, the Deferred Retirement Option Program,
87	hereinafter referred to as DROP, is a program under which an
88	eligible member of the Florida Retirement System may elect to
89	participate, deferring receipt of retirement benefits while
90	continuing employment with his or her Florida Retirement System
91	employer. The deferred monthly benefits shall accrue in the
92	Florida Retirement System on behalf of the participant, plus
93	interest compounded monthly, for the specified period of the
94	DROP participation, as provided in paragraph (c). Upon
95	termination of employment, the participant shall receive the
96	total DROP benefits and begin to receive the previously
97	determined normal retirement benefits. Participation in the DROP
98	does not guarantee employment for the specified period of DROP.
99	Participation in DROP by an eligible member beyond the initial
100	60-month period as authorized in this subsection shall be on an
101	annual contractual basis for all participants.
102	(a)  Eligibility of member to participate in DROP.--All
103	active Florida Retirement System members in a regularly
104	established position, and all active members of the Teachers'
105	Retirement System established in chapter 238 or the State and
106	County Officers' and Employees' Retirement System established in
107	chapter 122, which are consolidated within the Florida
108	Retirement System under s. 121.011, are eligible to elect
109	participation in DROP if:
110	1.  The member is not a renewed member under s. 121.122 or
111	a member of the State Community College System Optional
112	Retirement Program under s. 121.051, the Senior Management
113	Service Optional Annuity Program under s. 121.055, or the
114	optional retirement program for the State University System
115	under s. 121.35.
116	2.  Except as provided in subparagraph 6., election to
117	participate is made within 12 months immediately following the
118	date on which the member first reaches normal retirement date,
119	or, for a member who reaches normal retirement date based on
120	service before he or she reaches age 62, or age 55 for Special
121	Risk Class members, election to participate may be deferred to
122	the 12 months immediately following the date the member attains
123	age 57, or age 52 for Special Risk Class members. A member who
124	delays DROP participation during the 12-month period immediately
125	following his or her maximum DROP deferral date, except as
126	provided in subparagraph 6., loses a month of DROP participation
127	for each month delayed. A member who fails to make an election
128	within the 12-month limitation period forfeits all rights to
129	participate in DROP. The member shall advise his or her employer
130	and the division in writing of the date DROP begins. The
131	beginning date may be subsequent to the 12-month election period
132	but must be within the original 60-month participation period
133	provided in subparagraph (b)1. When establishing eligibility of
134	the member to participate in DROP, the member may elect to
135	include or exclude any optional service credit purchased by the
136	member from the total service used to establish the normal
137	retirement date. A member who has dual normal retirement dates
138	is eligible to elect to participate in DROP after attaining
139	normal retirement date in either class.
140	3.  The employer of a member electing to participate in
141	DROP, or employers if dually employed, shall acknowledge in
142	writing to the division the date the member's participation in
143	DROP begins and the date the member's employment and DROP
144	participation will terminate.
145	4.  Simultaneous employment of a participant by additional
146	Florida Retirement System employers subsequent to the
147	commencement of participation in DROP is permissible if such
148	employers acknowledge in writing a DROP termination date no
149	later than the participant's existing termination date or the
150	maximum participation period provided in paragraph (b)
151	subparagraph (b)1.
152	5.  A DROP participant may change employers while
153	participating in DROP, subject to the following:
154	a.  A change of employment must take place without a break
155	in service so that the member receives salary for each month of
156	continuous DROP participation. If a member receives no salary
157	during a month, DROP participation shall cease unless the
158	employer verifies a continuation of the employment relationship
159	for such participant pursuant to s. 121.021(39)(b).
160	b.  Such participant and new employer shall notify the
161	division of the identity of the new employer on forms required
162	by the division.
163	c.  The new employer shall acknowledge, in writing, the
164	participant's DROP termination date, which may be extended but
165	not beyond the maximum participation period provided in
166	paragraph (b) subparagraph (b)1., shall acknowledge liability
167	for any additional retirement contributions and interest
168	required if the participant fails to timely terminate
169	employment, and is subject to the adjustment required in sub-
170	subparagraph (c)5.d.
171	6.  Effective July 1, 2001, for instructional personnel as
172	defined in s. 1012.01(2), election to participate in DROP may be
173	made at any time following the date on which the member first
174	reaches normal retirement date. The member shall advise his or
175	her employer and the division in writing of the date on which
176	DROP begins. When establishing eligibility of the member to
177	participate in DROP for the 60-month participation period
178	provided in subparagraph (b)1., the member may elect to include
179	or exclude any optional service credit purchased by the member
180	from the total service used to establish the normal retirement
181	date. A member who has dual normal retirement dates is eligible
182	to elect to participate in either class.
183	(b)  Participation in DROP.--
184	1.  An eligible member may elect to participate in DROP for
185	a period not to exceed a maximum of 60 calendar months.
186	a.  However, Members who are instructional personnel
187	employed by the Florida School for the Deaf and the Blind and
188	authorized by the Board of Trustees of the Florida School for
189	the Deaf and the Blind, who are instructional personnel as
190	defined in s. 1012.01(2)(a)-(d) in grades K-12 and authorized by
191	the district school superintendent, or who are instructional
192	personnel as defined in s. 1012.01(2)(a) employed by a
193	developmental research school and authorized by the school's
194	director, or if the school has no director, by the school's
195	principal, may participate in DROP for up to 36 calendar months
196	beyond the 60-month period.
197	b.  Special Risk Class members who are employed as law
198	enforcement officers, correctional officers, or community-based
199	correctional probation officers, as described in s. 121.0515(2),
200	with a rank or the equivalent rank of captain or below, may
201	participate in DROP for up to 36 calendar months beyond the 60-
202	month period.
203	2.  Upon deciding to participate in DROP, the member shall
204	submit, on forms required by the division:
205	a.  A written election to participate in DROP;
206	b.  Selection of DROP participation and termination dates
207	that satisfy the limitations stated in paragraph (a) and
208	subparagraph 1. The termination date must be in a binding letter
209	of resignation to the employer establishing a deferred
210	termination date. The member may change the termination date
211	within the limitations of subparagraph 1., but only with the
212	written approval of the employer;
213	c.  A properly completed DROP application for service
214	retirement as provided in this section; and
215	d.  Any other information required by the division.
216	3.  The DROP participant is a retiree under the Florida
217	Retirement System for all purposes, except for paragraph (5)(f)
218	and subsection (9) and ss. 112.3173, 112.363, 121.053, and
219	121.122. DROP participation is final and may not be canceled by
220	the participant after the first payment is credited during the
221	DROP participation period. However, participation in DROP does
222	not alter the participant's employment status, and the member is
223	not deemed retired from employment until his or her deferred
224	resignation is effective and termination occurs as defined in s.
225	121.021.
226	4.  Elected officers are eligible to participate in DROP
227	subject to the following:
228	a.  An elected officer who reaches normal retirement date
229	during a term of office may defer the election to participate
230	until the next succeeding term in that office. An elected
231	officer who exercises this option may participate in DROP for up
232	to 60 calendar months or no longer than the succeeding term of
233	office, whichever is less.
234	b.  An elected or a nonelected participant may run for a
235	term of office while participating in DROP and, if elected,
236	extend the DROP termination date accordingly; however, if such
237	additional term of office exceeds the 60-month limitation
238	established in subparagraph 1., and the officer does not resign
239	from office within such 60-month limitation, the retirement and
240	the participant's DROP is null and void as provided in sub-
241	subparagraph (c)5.d.
242	c.  An elected officer who is dually employed and elects to
243	participate in DROP must terminate all employment relationships
244	as provided in s. 121.021(39) for the nonelected position within
245	the original 60-month period or maximum participation period as
246	provided in subparagraph 1. For DROP participation ending:
247	(I)  Before July 1, 2010, the officer may continue
248	employment as an elected officer as provided in s. 121.053. The
249	elected officer shall be enrolled as a renewed member in the
250	Elected Officers' Class or the Regular Class, as provided in ss.
251	121.053 and 121.122, on the first day of the month after
252	termination of employment in the nonelected position and
253	termination of DROP. Distribution of the DROP benefits shall be
254	made as provided in paragraph (c).
255	(II)  On or after July 1, 2010, the officer may continue
256	employment as an elected officer but must defer termination as
257	provided in s. 121.053.
258	Section 2.  The Legislature finds and declares that
259	ensuring the availability of experienced law enforcement,
260	correctional, and community-based correctional probation
261	officers to protect the safety and welfare of the public is an
262	important state interest. Providing such officers who are
263	members of the Florida Retirement System with an opportunity to
264	extend their employment as law enforcement officers,
265	correctional officers, or community-based correctional probation
266	officers by increasing the maximum participation period in the
267	Deferred Retirement Option Program will help serve that
268	interest. Funding for such retirement benefits must be made,
269	administered, and funded in an actuarially sound manner as
270	required by s. 14, Art. X of the State Constitution and part VII
271	of chapter 112, Florida Statutes. Therefore, the Legislature
272	determines and declares that the amendment of s. 121.091,
273	Florida Statutes, by this act fulfills an important state
274	interest.
275	Section 3.  This act shall take effect upon becoming a law.

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