Florida Senate - 2026                          SENATOR AMENDMENT
       Bill No. HB 5205
       
       
       
       
       
       
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                              LEGISLATIVE ACTION                        
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       Senator Mayfield moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (7) of section 121.053, Florida
    6  Statutes, is amended to read:
    7         121.053 Participation in the Elected Officers’ Class for
    8  retired members.—
    9         (7) A member who is elected or appointed to an elective
   10  office and who is participating in the Deferred Retirement
   11  Option Program is not subject to termination as defined in s.
   12  121.021, or reemployment limitations as provided in s.
   13  121.091(9), until the end of his or her current term of office
   14  or, if the officer is consecutively elected or reelected to an
   15  elective office eligible for coverage under the Florida
   16  Retirement System, until he or she no longer holds an elective
   17  office, as follows:
   18         (a) At the end of the member’s DROP period:
   19         1. The officer’s DROP account may not accrue additional
   20  monthly benefits, but does continue to earn interest as provided
   21  in s. 121.091(13). However, an officer whose DROP participation
   22  begins on or after July 1, 2010, may not continue to earn such
   23  interest.
   24         2. Retirement contributions, except for unfunded actuarial
   25  liability and health insurance subsidy contributions required in
   26  ss. 121.71(5) and 121.76, are not required of the employer of
   27  the elected officer, and additional retirement credit may not be
   28  earned under the Florida Retirement System.
   29         3.The officer, except while serving as a legislator, may
   30  remain in elective office and receive his or her accumulated
   31  DROP proceeds, including interest earned in accordance with
   32  subparagraph 1., after attaining the age of 59 1/2 years.
   33         (b) An elected officer may voluntarily terminate his or her
   34  elective office at any time and receive his or her DROP
   35  proceeds. However, until termination occurs, an elected officer
   36  whose termination limitations are extended by this section is
   37  ineligible for renewed membership in the system and may not
   38  receive pension payments, DROP lump sum payments, or any other
   39  state payment other than the statutorily determined salary,
   40  travel, and per diem for the elective office.
   41         (c) Upon termination, the officer shall receive his or her
   42  accumulated DROP account, including plus interest earned in
   43  accordance with subparagraph (a)1., and shall accrue and
   44  commence receiving monthly retirement benefits, which must be
   45  paid on a prospective basis only.
   46         Section 2. Subsection (5) of section 121.091, Florida
   47  Statutes, is amended to read:
   48         121.091 Benefits payable under the system.—Benefits may not
   49  be paid under this section unless the member has terminated
   50  employment as provided in s. 121.021(39)(a) or begun
   51  participation in the Deferred Retirement Option Program as
   52  provided in subsection (13), and a proper application has been
   53  filed in the manner prescribed by the department. The department
   54  may cancel an application for retirement benefits when the
   55  member or beneficiary fails to timely provide the information
   56  and documents required by this chapter and the department’s
   57  rules. The department shall adopt rules establishing procedures
   58  for application for retirement benefits and for the cancellation
   59  of such application when the required information or documents
   60  are not received.
   61         (5) TERMINATION BENEFITS.—A member whose employment is
   62  terminated prior to retirement retains membership rights to
   63  previously earned member-noncontributory service credit, and to
   64  member-contributory service credit, if the member leaves the
   65  member contributions on deposit in his or her retirement
   66  account. If a terminated member receives a refund of member
   67  contributions, such member may reinstate membership rights to
   68  the previously earned service credit represented by the refund
   69  by completing 1 year of creditable service and repaying the
   70  refunded member contributions, plus interest.
   71         (a) A member whose employment is terminated for any reason
   72  other than death or retirement before becoming vested is
   73  entitled to the return of his or her accumulated contributions
   74  as of the date of termination. Effective July 1, 2011, upon
   75  termination of employment from all participating employers for 3
   76  calendar months as defined in s. 121.021(39)(c) for any reason
   77  other than retirement, a member may receive a refund of all
   78  contributions he or she has made to the pension plan, subject to
   79  the restrictions otherwise provided in this chapter. The refund
   80  may be received as a lump-sum payment, a rollover to a qualified
   81  plan, or a combination of these methods. Partial refunds are not
   82  permitted. The refund may not include any interest earnings on
   83  the contributions for a member of the pension plan. Employer
   84  contributions made on behalf of the member are not refundable. A
   85  member may not receive a refund of employee contributions if a
   86  pending or an approved qualified domestic relations order is
   87  filed against his or her retirement account. By obtaining a
   88  refund of contributions, a member waives all rights under the
   89  Florida Retirement System and the health insurance subsidy to
   90  the service credit represented by the refunded contributions,
   91  except the right to purchase his or her prior service credit in
   92  accordance with s. 121.081(2).
   93         (b) A member whose employment is terminated for any reason
   94  other than death or retirement after becoming vested may elect
   95  to receive a deferred monthly benefit which shall begin to
   96  accrue on the first day of the month of normal or early
   97  retirement and shall be payable on the last day of that month
   98  and each month thereafter during his or her lifetime. The amount
   99  of monthly benefit shall be computed in the same manner as for a
  100  normal retirement benefit in accordance with subsection (1) or
  101  early retirement benefit in accordance with s. 121.021(30), but
  102  based on average monthly compensation and creditable service as
  103  of the date of termination.
  104         (c) In lieu of the deferred monthly benefit provided in
  105  paragraph (b), the terminated member may elect to receive a
  106  lump-sum amount equal to his or her accumulated contributions as
  107  of the date of termination. Effective July 1, 2011, upon
  108  termination of employment from all participating employers for 3
  109  calendar months as defined in s. 121.021(39)(c) for any reason
  110  other than retirement, a member may receive a refund of all
  111  contributions he or she has made to the pension plan, subject to
  112  the restrictions otherwise provided in this chapter. Partial
  113  refunds are not permitted. The refund may not include any
  114  interest earnings on the contributions for a member of the
  115  pension plan. Employer contributions made on behalf of the
  116  member are not refundable. A member may not receive a refund of
  117  employee contributions if a pending or an approved qualified
  118  domestic relations order is filed against his or her retirement
  119  account. By obtaining a refund of contributions, a member waives
  120  all rights under the Florida Retirement System and the health
  121  insurance subsidy to the service credit represented by the
  122  refunded contributions, except the right to purchase his or her
  123  prior service credit in accordance with s. 121.081(2).
  124         (d) If any retired member dies without having received in
  125  benefit payments an amount equal to his or her accumulated
  126  contributions, there shall be payable to his or her designated
  127  beneficiary an amount equal to the excess, if any, of the
  128  member’s accumulated contributions over the total monthly
  129  payments made to the member prior to the date of death.
  130         (e) A member shall be deemed a terminated member when
  131  termination of employment has occurred as provided in s.
  132  121.021(39).
  133         (f) Any member who has been found guilty by a verdict of a
  134  jury, or by the court trying the case without a jury, of
  135  committing, aiding, or abetting any embezzlement or theft from
  136  his or her employer, bribery in connection with the employment,
  137  or other felony specified in chapter 838, except ss. 838.15 and
  138  838.16, committed prior to retirement, or who has entered a plea
  139  of guilty or of nolo contendere to such crime, or any member
  140  whose employment is terminated by reason of the member’s
  141  admitted commitment, aiding, or abetting of an embezzlement or
  142  theft from his or her employer, bribery, or other felony
  143  specified in chapter 838, except ss. 838.15 and 838.16, shall
  144  forfeit all rights and benefits under this chapter, except the
  145  return of his or her accumulated contributions as of the date of
  146  termination.
  147         (g) Any elected official who is convicted by the Senate of
  148  an impeachable offense shall forfeit all rights and benefits
  149  under this chapter, except the return of his or her accumulated
  150  contributions as of the date of the conviction.
  151         (h) Any member who, prior to retirement, is adjudged by a
  152  court of competent jurisdiction to have violated any state law
  153  against strikes by public employees, or who has been found
  154  guilty by such court of violating any state law prohibiting
  155  strikes by public employees, shall forfeit all rights and
  156  benefits under this chapter, except the return of his or her
  157  accumulated contributions as of the date of the conviction.
  158         (i) The division or the state board may not pay benefits to
  159  any member convicted of a felony committed on or after October
  160  1, 2008, defined in s. 800.04 against a victim younger than 16
  161  years of age, or defined in chapter 794 against a victim younger
  162  than 18 years of age, through the use or attempted use of power,
  163  rights, privileges, duties, or position of the member’s public
  164  office or employment position. However, the division or the
  165  state board shall return the member’s accumulated contributions,
  166  if any, that the member accumulated as of the date of
  167  conviction.
  168         (j) Any beneficiary who by a verdict of a jury or by the
  169  court trying the case without a jury is found guilty, or who has
  170  entered a plea of guilty or nolo contendere, of unlawfully and
  171  intentionally killing or procuring the death of the member
  172  forfeits all rights to the deceased member’s benefits under this
  173  chapter, and the benefits will be paid as if such beneficiary
  174  had predeceased the decedent.
  175         (k) Benefits may not be paid by the division or the state
  176  board pending final resolution of such charges against a member
  177  or beneficiary if the resolution of such charges could require
  178  the forfeiture of benefits as provided in paragraph (f),
  179  paragraph (g), paragraph (h), paragraph (i), paragraph (j), or
  180  chapter 112.
  181         (l)The division and the state board, as appropriate, must
  182  take steps to recoup from the elected officer any DROP proceeds
  183  distributed pursuant to s. 121.053(7)(a)3. if:
  184         1.Such DROP proceeds were distributed before the elected
  185  officer’s termination; and
  186         2.The division or state board would be prohibited pursuant
  187  to paragraph (k) from making a distribution to the elected
  188  officer, absent the distribution to the elected officer pursuant
  189  to s. 121.053(7)(a)3.
  190         Section 3. Present subsections (5) through (9) of section
  191  121.101, Florida Statutes, are redesignated as subsections (6)
  192  through (10), respectively, and a new subsection (5) is added to
  193  that section, to read:
  194         121.101 Cost-of-living adjustment of benefits.—
  195         (5)(a)Commencing July 1, 2026, and in lieu of any annual
  196  adjustment authorized in paragraph (4)(b) occurring after the
  197  fifth anniversary of retirement of an eligible Special Risk
  198  Class member whose effective retirement date is on or after July
  199  1, 2011, the adjusted monthly benefit of each eligible Special
  200  Risk Class retiree and annuitant shall be the amount of the
  201  monthly benefit being received on June 30 immediately preceding
  202  the adjustment date plus the greater of the amount determined by
  203  multiplying the benefit by the factor calculated pursuant to
  204  paragraph (4)(c) or the amount equal to 1.5 percent of this
  205  benefit.
  206         (b) For purposes of this subsection, the term “eligible
  207  Special Risk Class retiree” means a retiree:
  208         1.Initially enrolled in the Florida Retirement System
  209  prior to July 1, 2011, who has completed at least 72 calendar
  210  months of creditable service as a Special Risk Class member; or
  211         2.Initially enrolled in the Florida Retirement System on
  212  or after July 1, 2011, who has completed at least 96 calendar
  213  months of creditable service as a Special Risk Class member.
  214         Section 4. Subsections (4) and (5) of section 121.71,
  215  Florida Statutes, are amended to read:
  216         121.71 Uniform rates; process; calculations; levy.—
  217         (4) Required employer retirement contribution rates for
  218  each membership class and subclass of the Florida Retirement
  219  System for both retirement plans are as follows:
  220  
  221  Membership Class            Percentage ofGrossCompensation,EffectiveJuly 1, 2026 2025
  222  
  223  Regular Class                             7.11% 7.10%              
  224  Special Risk Class                       21.58% 20.10%             
  225  Special Risk Administrative Support Class             11.45% 10.88%             
  226  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders             10.30% 10.04%             
  227  Elected Officers’ Class— Justices, Judges             15.54% 15.62%             
  228  Elected Officers’ Class— County Elected Officers             11.45% 11.79%             
  229  Senior Management Service Class              8.68% 8.73%              
  230  DROP                                      9.86% 9.37%              
  231  
  232         (5) In order to address unfunded actuarial liabilities of
  233  the system, the required employer retirement contribution rates
  234  for each membership class and subclass of the Florida Retirement
  235  System for both retirement plans are as follows:
  236  
  237  Membership Class            Percentage ofGrossCompensation,EffectiveJuly 1, 2026 2025
  238  
  239  Regular Class                             4.42% 4.87%              
  240  Special Risk Class                       14.10% 13.03%             
  241  Special Risk Administrative Support Class             28.28% 26.54%             
  242  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders             51.43% 50.56%             
  243  Elected Officers’ Class— Justices, Judges             28.40% 28.46%             
  244  Elected Officers’ Class— County Elected Officers             41.49% 40.72%             
  245  Senior Management Service Class             21.86% 22.45%             
  246  DROP                                     10.26% 10.65%             
  247  
  248         Section 5. Subsection (3) of section 121.73, Florida
  249  Statutes, is amended to read:
  250         121.73 Allocations for member disability coverage;
  251  percentage amounts.—
  252         (3) Effective July 1, 2026 2002, allocations from the
  253  Florida Retirement System Contributions Clearing Trust Fund to
  254  provide disability coverage for members in the investment plan,
  255  and to offset the costs of administering said coverage, are as
  256  follows:
  257  
  258  Membership Class                  Percentage of Gross Compensation 
  259  
  260  Regular Class                                  0.25%               
  261  Special Risk Class                          1.91% 1.85%            
  262  Special Risk Administrative Support Class           0.46% 0.45%            
  263  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders              0.41%               
  264  Elected Officers’ Class— Justices, Judges              0.73%               
  265  Elected Officers’ Class— County Elected Officers              0.41%               
  266  Senior Management Service Class                0.26%               
  267  
  268         Section 6. Subsection (3) of section 121.735, Florida
  269  Statutes, is amended to read:
  270         121.735 Allocations for member line-of-duty death benefits;
  271  percentage amounts.—
  272         (3) Allocations from the Florida Retirement System
  273  Contributions Clearing Trust Fund to provide line-of-duty death
  274  benefits for members in the investment plan and to offset the
  275  costs of administering said coverage, are as follows:
  276  
  277  Membership Class                  Percentage of Gross Compensation 
  278  
  279  Regular Class                                  0.05%               
  280  Special Risk Class                          1.28% 1.26%            
  281  Special Risk Administrative Support Class              0.03%               
  282  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders              0.15%               
  283  Elected Officers’ Class— Justices, Judges              0.09%               
  284  Elected Officers’ Class— County Elected Officers              0.20%               
  285  Senior Management Service Class                0.05%               
  286  
  287         Section 7. The Legislature finds that a proper and
  288  legitimate state purpose is served when employees, officers, and
  289  retirees of the state and its political subdivisions, and the
  290  dependents, survivors, and beneficiaries of such employees,
  291  officers, and retirees, are extended the basic protections
  292  afforded by governmental retirement systems. These persons must
  293  be provided benefits that are fair and adequate and that are
  294  managed, administered, and funded in an actuarially sound manner
  295  as required by s. 14, Article X of the State Constitution and
  296  part VII of chapter 112, Florida Statutes. Therefore, the
  297  Legislature determines and declares that this act fulfills an
  298  important state interest.
  299         Section 8. This act shall take effect July 1, 2026.
  300  
  301  ================= T I T L E  A M E N D M E N T ================
  302  And the title is amended as follows:
  303         Delete everything before the enacting clause
  304  and insert:
  305                        A bill to be entitled                      
  306         An act relating to retirement; amending s. 121.053,
  307         F.S.; authorizing an elected officer, except while
  308         serving as a legislator, to remain in elective office
  309         and receive accumulated Deferred Retirement Option
  310         Program (DROP) proceeds after the officer attains a
  311         certain age; providing that, upon termination, the
  312         officer receives accumulated DROP proceeds including
  313         interest earned in accordance with a specified
  314         provision; amending s. 121.091, F.S.; requiring the
  315         Division of Retirement or the State Board of
  316         Administration, as appropriate, to take steps to
  317         recoup from the elected officer any DROP proceeds
  318         distributed in accordance with a specified provision,
  319         under specified circumstances; amending s. 121.101,
  320         F.S.; revising the cost-of-living adjustment for
  321         eligible Special Risk Class retirees; defining the
  322         term “eligible Special Risk Class retiree”; amending
  323         s. 121.71, F.S.; revising required employer retirement
  324         contribution rates for each membership class and
  325         subclass of the Florida Retirement System; amending s.
  326         121.73, F.S.; revising required allocations from the
  327         Contributions Clearing Trust Fund to provide
  328         disability coverage to members of the investment plan
  329         of the Florida Retirement System; amending s. 121.735,
  330         F.S.; revising allocations from the Contributions
  331         Clearing Trust Fund to provide line-of-duty death
  332         benefits to members of the investment plan of the
  333         Florida Retirement System; providing a declaration of
  334         important state interest; providing an effective date.