Florida Senate - 2023                                    SB 1670
       
       
        
       By Senator Broxson
       
       
       
       
       
       1-01748A-23                                           20231670__
    1                        A bill to be entitled                      
    2         An act relating to the Deferred Retirement Option
    3         Program; amending s. 121.091, F.S.; increasing the
    4         period of time for which specified instructional and
    5         administrative personnel may extend their
    6         participation in the Deferred Retirement Option
    7         Program, if such personnel enter the program before a
    8         specified date; providing a statement of important
    9         state interest; providing an effective date.
   10          
   11  Be It Enacted by the Legislature of the State of Florida:
   12  
   13         Section 1. Paragraph (b) of subsection (13) of section
   14  121.091, Florida Statutes, is amended to read:
   15         121.091 Benefits payable under the system.—Benefits may not
   16  be paid under this section unless the member has terminated
   17  employment as provided in s. 121.021(39)(a) or begun
   18  participation in the Deferred Retirement Option Program as
   19  provided in subsection (13), and a proper application has been
   20  filed in the manner prescribed by the department. The department
   21  may cancel an application for retirement benefits when the
   22  member or beneficiary fails to timely provide the information
   23  and documents required by this chapter and the department’s
   24  rules. The department shall adopt rules establishing procedures
   25  for application for retirement benefits and for the cancellation
   26  of such application when the required information or documents
   27  are not received.
   28         (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
   29  subject to this section, the Deferred Retirement Option Program,
   30  hereinafter referred to as DROP, is a program under which an
   31  eligible member of the Florida Retirement System may elect to
   32  participate, deferring receipt of retirement benefits while
   33  continuing employment with his or her Florida Retirement System
   34  employer. The deferred monthly benefits shall accrue in the
   35  Florida Retirement System on behalf of the member, plus interest
   36  compounded monthly, for the specified period of the DROP
   37  participation, as provided in paragraph (c). Upon termination of
   38  employment, the member shall receive the total DROP benefits and
   39  begin to receive the previously determined normal retirement
   40  benefits. Participation in the DROP does not guarantee
   41  employment for the specified period of DROP. Participation in
   42  DROP by an eligible member beyond the initial 60-month period as
   43  authorized in this subsection shall be on an annual contractual
   44  basis for all participants.
   45         (b) Participation in DROP.—Except as provided in this
   46  paragraph, an eligible member may elect to participate in DROP
   47  for a period not to exceed a maximum of 60 calendar months.
   48         1.a. Members who are instructional personnel employed by
   49  the Florida School for the Deaf and the Blind and authorized by
   50  the Board of Trustees of the Florida School for the Deaf and the
   51  Blind, who are instructional personnel as defined in s.
   52  1012.01(2)(a)-(d) in grades K-12 and authorized by the district
   53  school superintendent, or who are instructional personnel as
   54  defined in s. 1012.01(2)(a) employed by a developmental research
   55  school and authorized by the school’s director, or if the school
   56  has no director, by the school’s principal, may participate in
   57  DROP for:
   58         (I) Up to 36 calendar months beyond the initial 60-month
   59  period; or
   60         (II)Effective July 1, 2023, up to 60 calendar months
   61  beyond the initial 60-month period if he or she enters DROP on
   62  or before June 30, 2029.
   63  
   64  Effective July 1, 2018, Instructional personnel who are
   65  authorized to extend DROP participation beyond the initial 60
   66  month period must have a termination date that is the last day
   67  of the last calendar month of the school year within the DROP
   68  extension granted by the employer. If, on July 1, 2018, the
   69  member’s DROP participation has already been extended for the
   70  maximum period of time 36 calendar months and the extension
   71  period concludes before the end of the school year, the member’s
   72  DROP participation may be extended through the last day of the
   73  last calendar month of that school year. The employer shall
   74  notify the division of the change in termination date and the
   75  additional period of DROP participation for the affected
   76  instructional personnel.
   77         b. Effective July 1, 2023, if authorized by the district
   78  school superintendent, members who are K-12 administrative
   79  personnel as described in s. 1012.01(3) may participate in DROP
   80  for up to 60 calendar months beyond the initial 60-month period
   81  if he or she enters DROP on or before June 30, 2029.
   82  Administrative personnel who are authorized to extend DROP
   83  participation beyond the initial 60-month period must have a
   84  termination date that is the last day of the last calendar month
   85  of the school year within the DROP extension granted by the
   86  employer. If the member’s DROP participation has already been
   87  extended for the maximum period of time and the extension period
   88  concludes before the end of the school year, the member’s DROP
   89  participation may be extended through the last day of the last
   90  calendar month of that school year Administrative personnel in
   91  grades K-12, as defined in s. 1012.01(3), who have a DROP
   92  termination date on or after July 1, 2018, may be authorized to
   93  extend DROP participation beyond the initial 60 calendar month
   94  period if the administrative personnel’s termination date is
   95  before the end of the school year. Such administrative personnel
   96  may have DROP participation extended until the last day of the
   97  last calendar month of the school year in which their original
   98  DROP termination date occurred if a date other than the last day
   99  of the last calendar month of the school year is designated. The
  100  employer shall notify the division of the change in termination
  101  date and the additional period of DROP participation for the
  102  affected administrative personnel.
  103         c. Effective July 1, 2022, a member of the Special Risk
  104  Class who is a law enforcement officer who meets the criteria in
  105  s. 121.0515(3)(a) and who is a DROP participant on or after July
  106  1, 2022, may participate in DROP for up to 36 calendar months
  107  beyond the 60-month period if he or she enters DROP on or before
  108  June 30, 2028.
  109         2. Upon deciding to participate in DROP, the member shall
  110  submit, on forms required by the division:
  111         a. A written election to participate in DROP;
  112         b. Selection of DROP participation and termination dates
  113  that satisfy the limitations stated in paragraph (a) and
  114  subparagraph 1. The termination date must be in a binding letter
  115  of resignation to the employer establishing a deferred
  116  termination date. The member may change the termination date
  117  within the limitations of subparagraph 1., but only with the
  118  written approval of the employer;
  119         c. A properly completed DROP application for service
  120  retirement as provided in this section; and
  121         d. Any other information required by the division.
  122         3. The DROP participant is a retiree under the Florida
  123  Retirement System for all purposes, except for paragraph (5)(f)
  124  and subsection (9) and ss. 112.3173, 112.363, 121.053, and
  125  121.122. DROP participation is final and may not be canceled by
  126  the participant after the first payment is credited during the
  127  DROP participation period. However, participation in DROP does
  128  not alter the participant’s employment status, and the member is
  129  not deemed retired from employment until his or her deferred
  130  resignation is effective and termination occurs as defined in s.
  131  121.021.
  132         4. Elected officers are eligible to participate in DROP
  133  subject to the following:
  134         a. An elected officer who reaches normal retirement date
  135  during a term of office may defer the election to participate
  136  until the next succeeding term in that office. An elected
  137  officer who exercises this option may participate in DROP for up
  138  to 60 calendar months or no longer than the succeeding term of
  139  office, whichever is less.
  140         b. An elected or a nonelected participant may run for a
  141  term of office while participating in DROP and, if elected,
  142  extend the DROP termination date accordingly; however, if such
  143  additional term of office exceeds the 60-month limitation
  144  established in subparagraph 1., and the officer does not resign
  145  from office within such 60-month limitation, the retirement and
  146  the participant’s DROP is null and void as provided in sub
  147  subparagraph (c)5.d.
  148         c. An elected officer who is dually employed and elects to
  149  participate in DROP must terminate all employment relationships
  150  as provided in s. 121.021(39) for the nonelected position within
  151  the original 60-month period or maximum participation period as
  152  provided in subparagraph 1. For DROP participation ending:
  153         (I) Before July 1, 2010, the officer may continue
  154  employment as an elected officer as provided in s. 121.053. The
  155  elected officer shall be enrolled as a renewed member in the
  156  Elected Officers’ Class or the Regular Class, as provided in ss.
  157  121.053 and 121.122, on the first day of the month after
  158  termination of employment in the nonelected position and
  159  termination of DROP. Distribution of the DROP benefits shall be
  160  made as provided in paragraph (c).
  161         (II) On or after July 1, 2010, the officer may continue
  162  employment as an elected officer but must defer termination as
  163  provided in s. 121.053.
  164         Section 2. The Legislature finds that a proper and
  165  legitimate state purpose is served when employees and retirees
  166  of the state and its political subdivisions, and the dependents,
  167  survivors, and beneficiaries of such employees and retirees, are
  168  extended the basic protections afforded by governmental
  169  retirement systems. These persons must be provided benefits that
  170  are fair and adequate and that are managed, administered, and
  171  funded in an actuarially sound manner, as required by s. 14,
  172  Article X of the State Constitution and part VII of chapter 112,
  173  Florida Statutes. Therefore, the Legislature determines and
  174  declares that this act fulfills an important state interest.
  175         Section 3. This act shall take effect July 1, 2023.