Florida Senate - 2018                             CS for SB 1240
       
       
        
       By the Committee on Governmental Oversight and Accountability;
       and Senator Mayfield
       
       
       
       
       585-02378-18                                          20181240c1
    1                        A bill to be entitled                      
    2         An act relating to retirement; amending s. 121.051,
    3         F.S.; authorizing certain employees to elect to
    4         participate in the Florida Retirement System during a
    5         specified period; requiring membership in the system
    6         under certain circumstances; amending s. 121.091,
    7         F.S.; revising limitations on the maximum length of
    8         participation in the Deferred Retirement Option
    9         Program for certain instructional personnel and
   10         administrative personnel; requiring an employer to
   11         notify the Division of Retirement of the Department of
   12         Management Services regarding any change in
   13         termination date and program participation for each
   14         affected member; providing a statement of important
   15         state interest; providing effective dates.
   16          
   17  Be It Enacted by the Legislature of the State of Florida:
   18  
   19         Section 1. Effective upon becoming a law, paragraph (d) of
   20  subsection (1) of section 121.051, Florida Statutes, is amended,
   21  and paragraph (e) is added to that subsection, to read:
   22         121.051 Participation in the system.—
   23         (1) COMPULSORY PARTICIPATION.—
   24         (d) Beginning March 31, 2018, an employee of a dependent
   25  special district or a not-for-profit corporation or association
   26  created by the Board of County Commissioners of Escambia County
   27  for the purpose of owning, operating, or managing a public bus
   28  transit system, may elect to participate in the Florida
   29  Retirement System by notifying his or her employer in writing on
   30  or before August 31, 2018. Employees electing to participate
   31  within the election period shall become members of the Florida
   32  Retirement System, and the election is irrevocable. Such
   33  employees who are hired on or after March 31, 2018, shall be
   34  required to participate in the Florida Retirement System.
   35         (e) The following persons are not eligible to participate
   36  in the Florida Retirement System:
   37         1. Employees of a not-for-profit corporation or association
   38  created by the Board of County Commissioners of Palm Beach
   39  County for the purpose of owning, operating, or managing a
   40  public bus transit system formerly operated or managed by a
   41  private corporation subject to 49 U.S.C. s. 5333(b).
   42         2. Persons who perform services as a consultant or an
   43  independent contractor, as defined by the division.
   44         Section 2. Paragraph (b) of subsection (13) of section
   45  121.091, Florida Statutes, is amended to read:
   46         121.091 Benefits payable under the system.—Benefits may not
   47  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         (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
   60  subject to this section, the Deferred Retirement Option Program,
   61  hereinafter referred to as DROP, is a program under which an
   62  eligible member of the Florida Retirement System may elect to
   63  participate, deferring receipt of retirement benefits while
   64  continuing employment with his or her Florida Retirement System
   65  employer. The deferred monthly benefits shall accrue in the
   66  Florida Retirement System on behalf of the member, plus interest
   67  compounded monthly, for the specified period of the DROP
   68  participation, as provided in paragraph (c). Upon termination of
   69  employment, the member shall receive the total DROP benefits and
   70  begin to receive the previously determined normal retirement
   71  benefits. Participation in the DROP does not guarantee
   72  employment for the specified period of DROP. Participation in
   73  DROP by an eligible member beyond the initial 60-month period as
   74  authorized in this subsection shall be on an annual contractual
   75  basis for all participants.
   76         (b) Participation in DROP.Except as provided in this
   77  paragraph, an eligible member may elect to participate in DROP
   78  for a period not to exceed a maximum of 60 calendar months.
   79         1.a. An eligible member may elect to participate in DROP
   80  for a period not to exceed a maximum of 60 calendar months.
   81  However, members who are instructional personnel employed by the
   82  Florida School for the Deaf and the Blind and authorized by the
   83  Board of Trustees of the Florida School for the Deaf and the
   84  Blind, who are instructional personnel as defined in s.
   85  1012.01(2)(a)-(d) in grades K-12 and authorized by the district
   86  school superintendent, or who are instructional personnel as
   87  defined in s. 1012.01(2)(a) employed by a developmental research
   88  school and authorized by the school’s director, or if the school
   89  has no director, by the school’s principal, may participate in
   90  DROP for up to 36 calendar months beyond the 60-month period.
   91  Effective July 1, 2018, instructional personnel who are
   92  authorized to extend DROP participation beyond the 60-month
   93  period must have a termination date that is the last day of the
   94  last calendar month of the school year within the DROP extension
   95  granted by the employer. If, on July 1, 2018, the member’s DROP
   96  participation has already been extended for the maximum 36
   97  calendar months and the extension period concludes before the
   98  end of the school year, the member’s DROP participation may be
   99  extended through the last day of the last calendar month of that
  100  school year. The employer shall notify the division of the
  101  change in termination date and the additional period of DROP
  102  participation for the affected instructional personnel.
  103         b. Administrative personnel in grades K-12, as defined in
  104  s. 1012.01(3), who have a DROP termination date on or after July
  105  1, 2018, may be authorized to extend DROP participation beyond
  106  the initial 60 calendar month period if the administrative
  107  personnel’s termination date is before the end of the school
  108  year. Such administrative personnel may have DROP participation
  109  extended until the last day of the last calendar month of the
  110  school year in which their original DROP termination date
  111  occurred if a date other than the last day of the last calendar
  112  month of the school year is designated. The employer shall
  113  notify the division of the change in termination date and the
  114  additional period of DROP participation for the affected
  115  administrative personnel.
  116         2. Upon deciding to participate in DROP, the member shall
  117  submit, on forms required by the division:
  118         a. A written election to participate in DROP;
  119         b. Selection of DROP participation and termination dates
  120  that satisfy the limitations stated in paragraph (a) and
  121  subparagraph 1. The termination date must be in a binding letter
  122  of resignation to the employer establishing a deferred
  123  termination date. The member may change the termination date
  124  within the limitations of subparagraph 1., but only with the
  125  written approval of the employer;
  126         c. A properly completed DROP application for service
  127  retirement as provided in this section; and
  128         d. Any other information required by the division.
  129         3. The DROP participant is a retiree under the Florida
  130  Retirement System for all purposes, except for paragraph (5)(f)
  131  and subsection (9) and ss. 112.3173, 112.363, 121.053, and
  132  121.122. DROP participation is final and may not be canceled by
  133  the participant after the first payment is credited during the
  134  DROP participation period. However, participation in DROP does
  135  not alter the participant’s employment status, and the member is
  136  not deemed retired from employment until his or her deferred
  137  resignation is effective and termination occurs as defined in s.
  138  121.021.
  139         4. Elected officers are eligible to participate in DROP
  140  subject to the following:
  141         a. An elected officer who reaches normal retirement date
  142  during a term of office may defer the election to participate
  143  until the next succeeding term in that office. An elected
  144  officer who exercises this option may participate in DROP for up
  145  to 60 calendar months or no longer than the succeeding term of
  146  office, whichever is less.
  147         b. An elected or a nonelected participant may run for a
  148  term of office while participating in DROP and, if elected,
  149  extend the DROP termination date accordingly; however, if such
  150  additional term of office exceeds the 60-month limitation
  151  established in subparagraph 1., and the officer does not resign
  152  from office within such 60-month limitation, the retirement and
  153  the participant’s DROP is null and void as provided in sub
  154  subparagraph (c)5.d.
  155         c. An elected officer who is dually employed and elects to
  156  participate in DROP must terminate all employment relationships
  157  as provided in s. 121.021(39) for the nonelected position within
  158  the original 60-month period or maximum participation period as
  159  provided in subparagraph 1. For DROP participation ending:
  160         (I) Before July 1, 2010, the officer may continue
  161  employment as an elected officer as provided in s. 121.053. The
  162  elected officer shall be enrolled as a renewed member in the
  163  Elected Officers’ Class or the Regular Class, as provided in ss.
  164  121.053 and 121.122, on the first day of the month after
  165  termination of employment in the nonelected position and
  166  termination of DROP. Distribution of the DROP benefits shall be
  167  made as provided in paragraph (c).
  168         (II) On or after July 1, 2010, the officer may continue
  169  employment as an elected officer but must defer termination as
  170  provided in s. 121.053.
  171         Section 3. The Legislature finds that a proper and
  172  legitimate state purpose is served when employees and retirees
  173  of the state and its political subdivisions, and the dependents,
  174  survivors, and beneficiaries of such employees and retirees, are
  175  extended the basic protections afforded by governmental
  176  retirement systems. These persons must be provided benefits that
  177  are fair and adequate and that are managed, administered, and
  178  funded in an actuarially sound manner, as required by s. 14,
  179  Article X of the State Constitution and part VII of chapter 112,
  180  Florida Statutes. Therefore, the Legislature determines and
  181  declares that this act fulfills an important state interest.
  182         Section 4. Except as otherwise expressly provided in this
  183  act and except for this section, which shall take effect upon
  184  this act becoming a law, this act shall take effect July 1,
  185  2018.