Florida Senate - 2025 SB 7022
By the Committee on Governmental Oversight and Accountability
585-02556-25 20257022__
1 A bill to be entitled
2 An act relating to retirement; amending s. 121.053,
3 F.S.; authorizing an officer, except while serving as
4 a legislator, to remain in elective office and receive
5 accumulated DROP proceeds after the officer attains a
6 certain age; providing that, upon termination, the
7 officer receives accumulated DROP proceeds including
8 interest earned in accordance with a specified
9 provision; amending s. 121.091, F.S.; requiring the
10 Division of Retirement or the State Board of
11 Administration, as appropriate, to take steps to
12 recoup from the elected officer any DROP proceeds
13 distributed in accordance with a specified provision,
14 under specified circumstances; amending s. 121.71,
15 F.S.; revising required employer retirement
16 contribution rates for each membership class and
17 subclass of the Florida Retirement System; providing a
18 declaration of important state interest; providing an
19 effective date.
20
21 Be It Enacted by the Legislature of the State of Florida:
22
23 Section 1. Subsection (7) of section 121.053, Florida
24 Statutes, is amended to read:
25 121.053 Participation in the Elected Officers’ Class for
26 retired members.—
27 (7) A member who is elected or appointed to an elective
28 office and who is participating in the Deferred Retirement
29 Option Program is not subject to termination as defined in s.
30 121.021, or reemployment limitations as provided in s.
31 121.091(9), until the end of his or her current term of office
32 or, if the officer is consecutively elected or reelected to an
33 elective office eligible for coverage under the Florida
34 Retirement System, until he or she no longer holds an elective
35 office, as follows:
36 (a) At the end of the member’s DROP period:
37 1. The officer’s DROP account may not accrue additional
38 monthly benefits, but does continue to earn interest as provided
39 in s. 121.091(13). However, an officer whose DROP participation
40 begins on or after July 1, 2010, may not continue to earn such
41 interest.
42 2. Retirement contributions, except for unfunded actuarial
43 liability and health insurance subsidy contributions required in
44 ss. 121.71(5) and 121.76, are not required of the employer of
45 the elected officer, and additional retirement credit may not be
46 earned under the Florida Retirement System.
47 3. The officer, except while serving as a legislator, may
48 remain in elective office and receive his or her accumulated
49 DROP proceeds, including interest earned in accordance with
50 subparagraph 1., after attaining the age of 59 1/2 years.
51 (b) An elected officer may voluntarily terminate his or her
52 elective office at any time and receive his or her DROP
53 proceeds. However, until termination occurs, an elected officer
54 whose termination limitations are extended by this section is
55 ineligible for renewed membership in the system and may not
56 receive pension payments, DROP lump sum payments, or any other
57 state payment other than the statutorily determined salary,
58 travel, and per diem for the elective office.
59 (c) Upon termination, the officer shall receive his or her
60 accumulated DROP account, including plus interest earned in
61 accordance with subparagraph (a)1., and shall accrue and
62 commence receiving monthly retirement benefits, which must be
63 paid on a prospective basis only.
64 Section 2. Subsection (5) of section 121.091, Florida
65 Statutes, is amended to read:
66 121.091 Benefits payable under the system.—Benefits may not
67 be paid under this section unless the member has terminated
68 employment as provided in s. 121.021(39)(a) or begun
69 participation in the Deferred Retirement Option Program as
70 provided in subsection (13), and a proper application has been
71 filed in the manner prescribed by the department. The department
72 may cancel an application for retirement benefits when the
73 member or beneficiary fails to timely provide the information
74 and documents required by this chapter and the department’s
75 rules. The department shall adopt rules establishing procedures
76 for application for retirement benefits and for the cancellation
77 of such application when the required information or documents
78 are not received.
79 (5) TERMINATION BENEFITS.—A member whose employment is
80 terminated prior to retirement retains membership rights to
81 previously earned member-noncontributory service credit, and to
82 member-contributory service credit, if the member leaves the
83 member contributions on deposit in his or her retirement
84 account. If a terminated member receives a refund of member
85 contributions, such member may reinstate membership rights to
86 the previously earned service credit represented by the refund
87 by completing 1 year of creditable service and repaying the
88 refunded member contributions, plus interest.
89 (a) A member whose employment is terminated for any reason
90 other than death or retirement before becoming vested is
91 entitled to the return of his or her accumulated contributions
92 as of the date of termination. Effective July 1, 2011, upon
93 termination of employment from all participating employers for 3
94 calendar months as defined in s. 121.021(39)(c) for any reason
95 other than retirement, a member may receive a refund of all
96 contributions he or she has made to the pension plan, subject to
97 the restrictions otherwise provided in this chapter. The refund
98 may be received as a lump-sum payment, a rollover to a qualified
99 plan, or a combination of these methods. Partial refunds are not
100 permitted. The refund may not include any interest earnings on
101 the contributions for a member of the pension plan. Employer
102 contributions made on behalf of the member are not refundable. A
103 member may not receive a refund of employee contributions if a
104 pending or an approved qualified domestic relations order is
105 filed against his or her retirement account. By obtaining a
106 refund of contributions, a member waives all rights under the
107 Florida Retirement System and the health insurance subsidy to
108 the service credit represented by the refunded contributions,
109 except the right to purchase his or her prior service credit in
110 accordance with s. 121.081(2).
111 (b) A member whose employment is terminated for any reason
112 other than death or retirement after becoming vested may elect
113 to receive a deferred monthly benefit which shall begin to
114 accrue on the first day of the month of normal or early
115 retirement and shall be payable on the last day of that month
116 and each month thereafter during his or her lifetime. The amount
117 of monthly benefit shall be computed in the same manner as for a
118 normal retirement benefit in accordance with subsection (1) or
119 early retirement benefit in accordance with s. 121.021(30), but
120 based on average monthly compensation and creditable service as
121 of the date of termination.
122 (c) In lieu of the deferred monthly benefit provided in
123 paragraph (b), the terminated member may elect to receive a
124 lump-sum amount equal to his or her accumulated contributions as
125 of the date of termination. Effective July 1, 2011, upon
126 termination of employment from all participating employers for 3
127 calendar months as defined in s. 121.021(39)(c) for any reason
128 other than retirement, a member may receive a refund of all
129 contributions he or she has made to the pension plan, subject to
130 the restrictions otherwise provided in this chapter. Partial
131 refunds are not permitted. The refund may not include any
132 interest earnings on the contributions for a member of the
133 pension plan. Employer contributions made on behalf of the
134 member are not refundable. A member may not receive a refund of
135 employee contributions if a pending or an approved qualified
136 domestic relations order is filed against his or her retirement
137 account. By obtaining a refund of contributions, a member waives
138 all rights under the Florida Retirement System and the health
139 insurance subsidy to the service credit represented by the
140 refunded contributions, except the right to purchase his or her
141 prior service credit in accordance with s. 121.081(2).
142 (d) If any retired member dies without having received in
143 benefit payments an amount equal to his or her accumulated
144 contributions, there shall be payable to his or her designated
145 beneficiary an amount equal to the excess, if any, of the
146 member’s accumulated contributions over the total monthly
147 payments made to the member prior to the date of death.
148 (e) A member shall be deemed a terminated member when
149 termination of employment has occurred as provided in s.
150 121.021(39).
151 (f) Any member who has been found guilty by a verdict of a
152 jury, or by the court trying the case without a jury, of
153 committing, aiding, or abetting any embezzlement or theft from
154 his or her employer, bribery in connection with the employment,
155 or other felony specified in chapter 838, except ss. 838.15 and
156 838.16, committed prior to retirement, or who has entered a plea
157 of guilty or of nolo contendere to such crime, or any member
158 whose employment is terminated by reason of the member’s
159 admitted commitment, aiding, or abetting of an embezzlement or
160 theft from his or her employer, bribery, or other felony
161 specified in chapter 838, except ss. 838.15 and 838.16, shall
162 forfeit all rights and benefits under this chapter, except the
163 return of his or her accumulated contributions as of the date of
164 termination.
165 (g) Any elected official who is convicted by the Senate of
166 an impeachable offense shall forfeit all rights and benefits
167 under this chapter, except the return of his or her accumulated
168 contributions as of the date of the conviction.
169 (h) Any member who, prior to retirement, is adjudged by a
170 court of competent jurisdiction to have violated any state law
171 against strikes by public employees, or who has been found
172 guilty by such court of violating any state law prohibiting
173 strikes by public employees, shall forfeit all rights and
174 benefits under this chapter, except the return of his or her
175 accumulated contributions as of the date of the conviction.
176 (i) The division or the state board may not pay benefits to
177 any member convicted of a felony committed on or after October
178 1, 2008, defined in s. 800.04 against a victim younger than 16
179 years of age, or defined in chapter 794 against a victim younger
180 than 18 years of age, through the use or attempted use of power,
181 rights, privileges, duties, or position of the member’s public
182 office or employment position. However, the division or the
183 state board shall return the member’s accumulated contributions,
184 if any, that the member accumulated as of the date of
185 conviction.
186 (j) Any beneficiary who by a verdict of a jury or by the
187 court trying the case without a jury is found guilty, or who has
188 entered a plea of guilty or nolo contendere, of unlawfully and
189 intentionally killing or procuring the death of the member
190 forfeits all rights to the deceased member’s benefits under this
191 chapter, and the benefits will be paid as if such beneficiary
192 had predeceased the decedent.
193 (k) Benefits may not be paid by the division or the state
194 board pending final resolution of such charges against a member
195 or beneficiary if the resolution of such charges could require
196 the forfeiture of benefits as provided in paragraph (f),
197 paragraph (g), paragraph (h), paragraph (i), paragraph (j), or
198 chapter 112.
199 (l) The division and the state board, as appropriate, must
200 take steps to recoup from the elected officer any DROP proceeds
201 distributed pursuant to s. 121.053(7)(a)3. if:
202 1. Such DROP proceeds were distributed before the elected
203 officer’s termination; and
204 2. The division or state board would be prohibited pursuant
205 to paragraph (k) from making a distribution to the elected
206 officer, absent the distribution to the elected officer pursuant
207 to s. 121.053(7)(a)3.
208 Section 3. Subsections (4) and (5) of section 121.71,
209 Florida Statutes, are amended to read:
210 121.71 Uniform rates; process; calculations; levy.—
211 (4) Required employer retirement contribution rates for
212 each membership class and subclass of the Florida Retirement
213 System for both retirement plans are as follows:
214
215 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2025 2024
216
217 Regular Class 7.10% 6.73%
218 Special Risk Class 20.10% 18.66%
219 Special Risk Administrative Support Class 10.88% 11.54%
220 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 10.04% 10.70%
221 Elected Officers’ Class— Justices, Judges 15.62% 14.90%
222 Elected Officers’ Class— County Elected Officers 11.79% 12.39%
223 Senior Management Service Class 8.73% 8.56%
224 DROP 9.37% 8.49%
225 (5) In order to address unfunded actuarial liabilities of
226 the system, the required employer retirement contribution rates
227 for each membership class and subclass of the Florida Retirement
228 System for both retirement plans are as follows:
229
230 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2025 2024
231
232 Regular Class 4.87% 4.84%
233 Special Risk Class 13.03% 12.07%
234 Special Risk Administrative Support Class 26.54% 26.22%
235 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 50.56% 50.21%
236 Elected Officers’ Class— Justices, Judges 28.46% 28.49%
237 Elected Officers’ Class— County Elected Officers 40.72% 44.23%
238 Senior Management Service Class 22.45% 23.90%
239 DROP 10.65% 10.64%
240 Section 4. The Legislature finds that a proper and
241 legitimate state purpose is served when employees, officers, and
242 retirees of the state and its political subdivisions, and the
243 dependents, survivors, and beneficiaries of such employees,
244 officers, and retirees, are extended the basic protections
245 afforded by governmental retirement systems. These persons must
246 be provided benefits that are fair and adequate and that are
247 managed, administered, and funded in an actuarially sound manner
248 as required by s. 14, Article X of the State Constitution and
249 part VII of chapter 112, Florida Statutes. Therefore, the
250 Legislature determines and declares that this act fulfills an
251 important state interest.
252 Section 5. This act shall take effect July 1, 2025.