Florida Senate - 2018                        COMMITTEE AMENDMENT
       Bill No. CS for HB 7055
                              LEGISLATIVE ACTION                        
                    Senate             .             House              

       The Committee on Education (Mayfield) recommended the following:
    1         Senate Amendment to Amendment (826696) (with title
    2  amendment)
    4         Before line 5
    5  insert:
    6         Section 1. Paragraph (b) of subsection (13) of section
    7  121.091, Florida Statutes, is amended to read:
    8         121.091 Benefits payable under the system.—Benefits may not
    9  be paid under this section unless the member has terminated
   10  employment as provided in s. 121.021(39)(a) or begun
   11  participation in the Deferred Retirement Option Program as
   12  provided in subsection (13), and a proper application has been
   13  filed in the manner prescribed by the department. The department
   14  may cancel an application for retirement benefits when the
   15  member or beneficiary fails to timely provide the information
   16  and documents required by this chapter and the department’s
   17  rules. The department shall adopt rules establishing procedures
   18  for application for retirement benefits and for the cancellation
   19  of such application when the required information or documents
   20  are not received.
   21         (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
   22  subject to this section, the Deferred Retirement Option Program,
   23  hereinafter referred to as DROP, is a program under which an
   24  eligible member of the Florida Retirement System may elect to
   25  participate, deferring receipt of retirement benefits while
   26  continuing employment with his or her Florida Retirement System
   27  employer. The deferred monthly benefits shall accrue in the
   28  Florida Retirement System on behalf of the member, plus interest
   29  compounded monthly, for the specified period of the DROP
   30  participation, as provided in paragraph (c). Upon termination of
   31  employment, the member shall receive the total DROP benefits and
   32  begin to receive the previously determined normal retirement
   33  benefits. Participation in the DROP does not guarantee
   34  employment for the specified period of DROP. Participation in
   35  DROP by an eligible member beyond the initial 60-month period as
   36  authorized in this subsection shall be on an annual contractual
   37  basis for all participants.
   38         (b) Participation in DROP.Except as provided in this
   39  paragraph, an eligible member may elect to participate in DROP
   40  for a period not to exceed a maximum of 60 calendar months.
   41         1.a. An eligible member may elect to participate in DROP
   42  for a period not to exceed a maximum of 60 calendar months.
   43  However, members who are instructional personnel employed by the
   44  Florida School for the Deaf and the Blind and authorized by the
   45  Board of Trustees of the Florida School for the Deaf and the
   46  Blind, who are instructional personnel as defined in s.
   47  1012.01(2)(a)-(d) in grades K-12 and authorized by the district
   48  school superintendent, or who are instructional personnel as
   49  defined in s. 1012.01(2)(a) employed by a developmental research
   50  school and authorized by the school’s director, or if the school
   51  has no director, by the school’s principal, may participate in
   52  DROP for up to 36 calendar months beyond the 60-month period.
   53  Effective July 1, 2018, instructional personnel who are
   54  authorized to extend DROP participation beyond the 60-month
   55  period must have a termination date that is the last day of the
   56  last calendar month of the school year within the DROP extension
   57  granted by the employer. If, on July 1, 2018, the member’s DROP
   58  participation has already been extended for the maximum 36
   59  calendar months and the extension period concludes before the
   60  end of the school year, the member’s DROP participation may be
   61  extended through the last day of the last calendar month of that
   62  school year. The employer shall notify the division of the
   63  change in termination date and the additional period of DROP
   64  participation for the affected instructional personnel.
   65         b. Administrative personnel in grades K-12, as defined in
   66  s. 1012.01(3), who have a DROP termination date on or after July
   67  1, 2018, may be authorized to extend DROP participation beyond
   68  the initial 60 calendar month period if the administrative
   69  personnel’s termination date is before the end of the school
   70  year. Such administrative personnel may have DROP participation
   71  extended until the last day of the last calendar month of the
   72  school year in which their original DROP termination date
   73  occurred if a date other than the last day of the last calendar
   74  month of the school year is designated. The employer shall
   75  notify the division of the change in termination date and the
   76  additional period of DROP participation for the affected
   77  administrative personnel.
   78         2. Upon deciding to participate in DROP, the member shall
   79  submit, on forms required by the division:
   80         a. A written election to participate in DROP;
   81         b. Selection of DROP participation and termination dates
   82  that satisfy the limitations stated in paragraph (a) and
   83  subparagraph 1. The termination date must be in a binding letter
   84  of resignation to the employer establishing a deferred
   85  termination date. The member may change the termination date
   86  within the limitations of subparagraph 1., but only with the
   87  written approval of the employer;
   88         c. A properly completed DROP application for service
   89  retirement as provided in this section; and
   90         d. Any other information required by the division.
   91         3. The DROP participant is a retiree under the Florida
   92  Retirement System for all purposes, except for paragraph (5)(f)
   93  and subsection (9) and ss. 112.3173, 112.363, 121.053, and
   94  121.122. DROP participation is final and may not be canceled by
   95  the participant after the first payment is credited during the
   96  DROP participation period. However, participation in DROP does
   97  not alter the participant’s employment status, and the member is
   98  not deemed retired from employment until his or her deferred
   99  resignation is effective and termination occurs as defined in s.
  100  121.021.
  101         4. Elected officers are eligible to participate in DROP
  102  subject to the following:
  103         a. An elected officer who reaches normal retirement date
  104  during a term of office may defer the election to participate
  105  until the next succeeding term in that office. An elected
  106  officer who exercises this option may participate in DROP for up
  107  to 60 calendar months or no longer than the succeeding term of
  108  office, whichever is less.
  109         b. An elected or a nonelected participant may run for a
  110  term of office while participating in DROP and, if elected,
  111  extend the DROP termination date accordingly; however, if such
  112  additional term of office exceeds the 60-month limitation
  113  established in subparagraph 1., and the officer does not resign
  114  from office within such 60-month limitation, the retirement and
  115  the participant’s DROP is null and void as provided in sub
  116  subparagraph (c)5.d.
  117         c. An elected officer who is dually employed and elects to
  118  participate in DROP must terminate all employment relationships
  119  as provided in s. 121.021(39) for the nonelected position within
  120  the original 60-month period or maximum participation period as
  121  provided in subparagraph 1. For DROP participation ending:
  122         (I) Before July 1, 2010, the officer may continue
  123  employment as an elected officer as provided in s. 121.053. The
  124  elected officer shall be enrolled as a renewed member in the
  125  Elected Officers’ Class or the Regular Class, as provided in ss.
  126  121.053 and 121.122, on the first day of the month after
  127  termination of employment in the nonelected position and
  128  termination of DROP. Distribution of the DROP benefits shall be
  129  made as provided in paragraph (c).
  130         (II) On or after July 1, 2010, the officer may continue
  131  employment as an elected officer but must defer termination as
  132  provided in s. 121.053.
  133         Section 2. The Legislature finds that a proper and
  134  legitimate state purpose is served when employees and retirees
  135  of the state and its political subdivisions, and the dependents,
  136  survivors, and beneficiaries of such employees and retirees, are
  137  extended the basic protections afforded by governmental
  138  retirement systems. These persons must be provided benefits that
  139  are fair and adequate and that are managed, administered, and
  140  funded in an actuarially sound manner, as required by s. 14,
  141  Article X of the State Constitution and part VII of chapter 112,
  142  Florida Statutes. Therefore, the Legislature determines and
  143  declares that the amendments made to s. 121.091, Florida
  144  Statutes, by this act fulfills an important state interest.
  146  ================= T I T L E  A M E N D M E N T ================
  147  And the title is amended as follows:
  148         Delete line 3048
  149  and insert:
  150         An act relating to education; amending s. 121.091,
  151         F.S.; revising limitations on the maximum length of
  152         participation in the Deferred Retirement Option
  153         Program for certain instructional personnel and
  154         administrative personnel; requiring an employer to
  155         notify the Division of Retirement of the Department of
  156         Management Services regarding any change in
  157         termination date and program participation for each
  158         affected member; providing a statement of important
  159         state interest; creating s. 212.1832,