Florida Senate - 2023 SB 1034
By Senator Rodriguez
40-01655-23 20231034__
1 A bill to be entitled
2 An act relating to state-administered retirement
3 systems; amending s. 121.091, F.S.; authorizing
4 specified correctional officers to elect to
5 participate in the Deferred Retirement Option Program
6 for an additional 36 months; providing a declaration
7 of important state interest; providing an effective
8 date.
9
10 Be It Enacted by the Legislature of the State of Florida:
11
12 Section 1. Paragraph (b) of subsection (13) of section
13 121.091, Florida Statutes, is amended to read:
14 121.091 Benefits payable under the system.—Benefits may not
15 be paid under this section unless the member has terminated
16 employment as provided in s. 121.021(39)(a) or begun
17 participation in the Deferred Retirement Option Program as
18 provided in subsection (13), and a proper application has been
19 filed in the manner prescribed by the department. The department
20 may cancel an application for retirement benefits when the
21 member or beneficiary fails to timely provide the information
22 and documents required by this chapter and the department’s
23 rules. The department shall adopt rules establishing procedures
24 for application for retirement benefits and for the cancellation
25 of such application when the required information or documents
26 are not received.
27 (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
28 subject to this section, the Deferred Retirement Option Program,
29 hereinafter referred to as DROP, is a program under which an
30 eligible member of the Florida Retirement System may elect to
31 participate, deferring receipt of retirement benefits while
32 continuing employment with his or her Florida Retirement System
33 employer. The deferred monthly benefits shall accrue in the
34 Florida Retirement System on behalf of the member, plus interest
35 compounded monthly, for the specified period of the DROP
36 participation, as provided in paragraph (c). Upon termination of
37 employment, the member shall receive the total DROP benefits and
38 begin to receive the previously determined normal retirement
39 benefits. Participation in the DROP does not guarantee
40 employment for the specified period of DROP. Participation in
41 DROP by an eligible member beyond the initial 60-month period as
42 authorized in this subsection shall be on an annual contractual
43 basis for all participants.
44 (b) Participation in DROP.—Except as provided in this
45 paragraph, an eligible member may elect to participate in DROP
46 for a period not to exceed a maximum of 60 calendar months.
47 1.a. Members who are instructional personnel employed by
48 the Florida School for the Deaf and the Blind and authorized by
49 the Board of Trustees of the Florida School for the Deaf and the
50 Blind, who are instructional personnel as defined in s.
51 1012.01(2)(a)-(d) in grades K-12 and authorized by the district
52 school superintendent, or who are instructional personnel as
53 defined in s. 1012.01(2)(a) employed by a developmental research
54 school and authorized by the school’s director, or if the school
55 has no director, by the school’s principal, may participate in
56 DROP for up to 36 calendar months beyond the 60-month period.
57 Effective July 1, 2018, instructional personnel who are
58 authorized to extend DROP participation beyond the 60-month
59 period must have a termination date that is the last day of the
60 last calendar month of the school year within the DROP extension
61 granted by the employer. If, on July 1, 2018, the member’s DROP
62 participation has already been extended for the maximum 36
63 calendar months and the extension period concludes before the
64 end of the school year, the member’s DROP participation may be
65 extended through the last day of the last calendar month of that
66 school year. The employer shall notify the division of the
67 change in termination date and the additional period of DROP
68 participation for the affected instructional personnel.
69 b. Administrative personnel in grades K-12, as defined in
70 s. 1012.01(3), who have a DROP termination date on or after July
71 1, 2018, may be authorized to extend DROP participation beyond
72 the initial 60 calendar month period if the administrative
73 personnel’s termination date is before the end of the school
74 year. Such administrative personnel may have DROP participation
75 extended until the last day of the last calendar month of the
76 school year in which their original DROP termination date
77 occurred if a date other than the last day of the last calendar
78 month of the school year is designated. The employer shall
79 notify the division of the change in termination date and the
80 additional period of DROP participation for the affected
81 administrative personnel.
82 c. Effective July 1, 2022, a member of the Special Risk
83 Class who is a law enforcement officer who meets the criteria in
84 s. 121.0515(3)(a) and who is a DROP participant on or after July
85 1, 2022, or a correctional officer who meets the criteria in s.
86 121.0515(3)(c) and who is a DROP participant on or after July 1,
87 2023, may participate in DROP for up to 36 calendar months
88 beyond the 60-month period if he or she enters DROP on or before
89 June 30, 2028.
90 2. Upon deciding to participate in DROP, the member shall
91 submit, on forms required by the division:
92 a. A written election to participate in DROP;
93 b. Selection of DROP participation and termination dates
94 that satisfy the limitations stated in paragraph (a) and
95 subparagraph 1. The termination date must be in a binding letter
96 of resignation to the employer establishing a deferred
97 termination date. The member may change the termination date
98 within the limitations of subparagraph 1., but only with the
99 written approval of the employer;
100 c. A properly completed DROP application for service
101 retirement as provided in this section; and
102 d. Any other information required by the division.
103 3. The DROP participant is a retiree under the Florida
104 Retirement System for all purposes, except for paragraph (5)(f)
105 and subsection (9) and ss. 112.3173, 112.363, 121.053, and
106 121.122. DROP participation is final and may not be canceled by
107 the participant after the first payment is credited during the
108 DROP participation period. However, participation in DROP does
109 not alter the participant’s employment status, and the member is
110 not deemed retired from employment until his or her deferred
111 resignation is effective and termination occurs as defined in s.
112 121.021.
113 4. Elected officers are eligible to participate in DROP
114 subject to the following:
115 a. An elected officer who reaches normal retirement date
116 during a term of office may defer the election to participate
117 until the next succeeding term in that office. An elected
118 officer who exercises this option may participate in DROP for up
119 to 60 calendar months or no longer than the succeeding term of
120 office, whichever is less.
121 b. An elected or a nonelected participant may run for a
122 term of office while participating in DROP and, if elected,
123 extend the DROP termination date accordingly; however, if such
124 additional term of office exceeds the 60-month limitation
125 established in subparagraph 1., and the officer does not resign
126 from office within such 60-month limitation, the retirement and
127 the participant’s DROP is null and void as provided in sub
128 subparagraph (c)5.d.
129 c. An elected officer who is dually employed and elects to
130 participate in DROP must terminate all employment relationships
131 as provided in s. 121.021(39) for the nonelected position within
132 the original 60-month period or maximum participation period as
133 provided in subparagraph 1. For DROP participation ending:
134 (I) Before July 1, 2010, the officer may continue
135 employment as an elected officer as provided in s. 121.053. The
136 elected officer shall be enrolled as a renewed member in the
137 Elected Officers’ Class or the Regular Class, as provided in ss.
138 121.053 and 121.122, on the first day of the month after
139 termination of employment in the nonelected position and
140 termination of DROP. Distribution of the DROP benefits shall be
141 made as provided in paragraph (c).
142 (II) On or after July 1, 2010, the officer may continue
143 employment as an elected officer but must defer termination as
144 provided in s. 121.053.
145 Section 2. The Legislature finds that a proper and
146 legitimate state purpose is served when employees, officers, and
147 retirees of the state and its political subdivisions, and the
148 dependents, survivors, and beneficiaries of such employees,
149 officers, and retirees, are extended the basic protections
150 afforded by governmental retirement systems. These persons must
151 be provided benefits that are fair and adequate and that are
152 managed, administered, and funded in an actuarially sound manner
153 as required by s. 14, Article X of the State Constitution and
154 part VII of chapter 112, Florida Statutes. Therefore, the
155 Legislature determines and declares that this act fulfills an
156 important state interest.
157 Section 3. This act shall take effect July 1, 2023.