| 1 | Representative Tobia offered the following: |
| 2 |
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| 3 | Amendment (with directory and title amendments) |
| 4 | Between lines 175 and 176, insert: |
| 5 | Section 2. Subsections (3) and (4) of section 112.05, |
| 6 | Florida Statutes, are renumbered as subsections (2) and (3), |
| 7 | respectively, and present subsection (2) of that section is |
| 8 | amended to read: |
| 9 | 112.05 Retirement; cost-of-living adjustment; employment |
| 10 | after retirement.- |
| 11 | (2) An annual cost-of-living adjustment shall be made to |
| 12 | the monthly benefit payable to retirees who are retired under |
| 13 | this section pursuant to the provisions of s. 121.101. |
| 14 | |
| 15 | Between lines 1407 and 1408, insert: |
| 16 | (12) BENEFITS.- |
| 17 | (d) The provisions of s. ss. 121.101 and 121.111, relating |
| 18 | to the cost-of-living adjustment of retirement benefits and |
| 19 | retirement credit for wartime military service, respectively, |
| 20 | shall apply to members of the Elected Officers' Class. |
| 21 | Creditable service for actual wartime service, as authorized by |
| 22 | s. 121.111(2), not exceeding 4 years, shall be acquired and paid |
| 23 | for as provided in said subsection. Upon payment by the member |
| 24 | of 4 percent of gross salary plus accrued interest, retirement |
| 25 | credit shall be granted at the rate of 1.6 percent for each year |
| 26 | of creditable service acquired under said subsection. |
| 27 |
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| 28 | Remove line 2156 and insert: |
| 29 | (c) Benefits payable under DROP.- |
| 30 | 1. Effective on the date of DROP participation, the |
| 31 | member's initial normal monthly benefit, including creditable |
| 32 | service, optional form of payment, and average final |
| 33 | compensation, and the effective date of retirement are fixed. |
| 34 | The beneficiary established under the Florida Retirement System |
| 35 | is the beneficiary eligible to receive any DROP benefits payable |
| 36 | if the DROP participant dies before completing the period of |
| 37 | DROP participation. If a joint annuitant predeceases the member, |
| 38 | the member may name a beneficiary to receive accumulated DROP |
| 39 | benefits payable. The retirement benefit, the annual cost of |
| 40 | living adjustments provided in s. 121.101, and interest accrue |
| 41 | monthly in the Florida Retirement System Trust Fund. The |
| 42 | interest accrues at an effective annual rate of 6.5 percent |
| 43 | compounded monthly, on the prior month's accumulated ending |
| 44 | balance, up to the month of termination or death, except as |
| 45 | provided in s. 121.053(7). |
| 46 | 2. Each employee who elects to participate in DROP may |
| 47 | elect to receive a lump-sum payment for accrued annual leave |
| 48 | earned in accordance with agency policy upon beginning |
| 49 | participation in DROP. The accumulated leave payment certified |
| 50 | to the division upon commencement of DROP shall be included in |
| 51 | the calculation of the member's average final compensation. The |
| 52 | employee electing the lump-sum payment is not eligible to |
| 53 | receive a second lump-sum payment upon termination, except to |
| 54 | the extent the employee has earned additional annual leave |
| 55 | which, combined with the original payment, does not exceed the |
| 56 | maximum lump-sum payment allowed by the employing agency's |
| 57 | policy or rules. An early lump-sum payment shall be based on the |
| 58 | hourly wage of the employee at the time he or she begins |
| 59 | participation in DROP. If the member elects to wait and receive |
| 60 | a lump-sum payment upon termination of DROP and termination of |
| 61 | employment with the employer, any accumulated leave payment made |
| 62 | at that time may not be included in the member's retirement |
| 63 | benefit, which was determined and fixed by law when the employee |
| 64 | elected to participate in DROP. |
| 65 | 3. The effective date of DROP participation and the |
| 66 | effective date of retirement of a DROP participant shall be the |
| 67 | first day of the month selected by the member to begin |
| 68 | participation in DROP, provided such date is properly |
| 69 | established, with the written confirmation of the employer, and |
| 70 | the approval of the division, on forms required by the division. |
| 71 | 4. Normal retirement benefits and any interest shall |
| 72 | continue to accrue in DROP until the established termination |
| 73 | date of DROP or until the participant terminates employment or |
| 74 | dies prior to such date, except as provided in s. 121.053(7). |
| 75 | Although individual DROP accounts shall not be established, a |
| 76 | separate accounting of each participant's accrued benefits under |
| 77 | DROP shall be calculated and provided to participants. |
| 78 | 5. At the conclusion of the participant's DROP, the |
| 79 | division shall distribute the participant's total accumulated |
| 80 | DROP benefits, subject to the following: |
| 81 | a. The division shall receive verification by the |
| 82 | participant's employer or employers that the participant has |
| 83 | terminated all employment relationships as provided in s. |
| 84 | 121.021(39). |
| 85 | b. The terminated DROP participant or, if deceased, the |
| 86 | participant's named beneficiary, shall elect on forms provided |
| 87 | by the division to receive payment of the DROP benefits in |
| 88 | accordance with one of the options listed below. If a |
| 89 | participant or beneficiary fails to elect a method of payment |
| 90 | within 60 days after termination of DROP, the division shall pay |
| 91 | a lump sum as provided in sub-sub-subparagraph (I). |
| 92 | (I) Lump sum.-All accrued DROP benefits, plus interest, |
| 93 | less withholding taxes remitted to the Internal Revenue Service, |
| 94 | shall be paid to the DROP participant or surviving beneficiary. |
| 95 | (II) Direct rollover.-All accrued DROP benefits, plus |
| 96 | interest, shall be paid from DROP directly to the custodian of |
| 97 | an eligible retirement plan as defined in s. 402(c)(8)(B) of the |
| 98 | Internal Revenue Code. However, in the case of an eligible |
| 99 | rollover distribution to the surviving spouse of a deceased |
| 100 | participant, an eligible retirement plan is an individual |
| 101 | retirement account or an individual retirement annuity as |
| 102 | described in s. 402(c)(9) of the Internal Revenue Code. |
| 103 | (III) Partial lump sum.-A portion of the accrued DROP |
| 104 | benefits shall be paid to DROP participant or surviving spouse, |
| 105 | less withholding taxes remitted to the Internal Revenue Service, |
| 106 | and the remaining DROP benefits must be transferred directly to |
| 107 | the custodian of an eligible retirement plan as defined in s. |
| 108 | 402(c)(8)(B) of the Internal Revenue Code. However, in the case |
| 109 | of an eligible rollover distribution to the surviving spouse of |
| 110 | a deceased participant, an eligible retirement plan is an |
| 111 | individual retirement account or an individual retirement |
| 112 | annuity as described in s. 402(c)(9) of the Internal Revenue |
| 113 | Code. The proportions must be specified by the DROP participant |
| 114 | or surviving beneficiary. |
| 115 | c. The form of payment selected by the DROP participant or |
| 116 | surviving beneficiary must comply with the minimum distribution |
| 117 | requirements of the Internal Revenue Code. |
| 118 | d. A DROP participant who fails to terminate all |
| 119 | employment relationships as provided in s. 121.021(39) shall be |
| 120 | deemed as not retired, and the DROP election is null and void. |
| 121 | Florida Retirement System membership shall be reestablished |
| 122 | retroactively to the date of the commencement of DROP, and each |
| 123 | employer with whom the participant continues employment must pay |
| 124 | to the Florida Retirement System Trust Fund the difference |
| 125 | between the DROP contributions paid in paragraph (i) and the |
| 126 | contributions required for the applicable Florida Retirement |
| 127 | System class of membership during the period the member |
| 128 | participated in DROP, plus 6.5 percent interest compounded |
| 129 | annually. |
| 130 | 6. The retirement benefits of any DROP participant who |
| 131 | terminates all employment relationships as provided in s. |
| 132 | 121.021(39) but is reemployed in violation of the reemployment |
| 133 | provisions of subsection (9) shall be suspended during those |
| 134 | months in which the retiree is in violation. Any retiree in |
| 135 | violation of this subparagraph and any employer that employs or |
| 136 | appoints such person without notifying the Division of |
| 137 | Retirement to suspend retirement benefits are jointly and |
| 138 | severally liable for any benefits paid during the reemployment |
| 139 | limitation period. The employer must have a written statement |
| 140 | from the retiree that he or she is not retired from a state- |
| 141 | administered retirement system. Any retirement benefits received |
| 142 | by a retiree while employed in violation of the reemployment |
| 143 | limitations must be repaid to the Florida Retirement System |
| 144 | Trust Fund, and his or her retirement benefits shall remain |
| 145 | suspended until payment is made. Benefits suspended beyond the |
| 146 | end of the reemployment limitation period apply toward repayment |
| 147 | of benefits received in violation of the reemployment |
| 148 | limitation. |
| 149 | 7. The accrued benefits of any DROP participant, and any |
| 150 | contributions accumulated under the program, are not subject to |
| 151 | assignment, execution, attachment, or any legal process |
| 152 | whatsoever, except for qualified domestic relations orders by a |
| 153 | court of competent jurisdiction, income deduction orders as |
| 154 | provided in s. 61.1301, and federal income tax levies. |
| 155 | 8. DROP participants are not eligible for disability |
| 156 | retirement benefits as provided in subsection (4). |
| 157 | (e) Cost-of-living adjustment.-On each July 1, the |
| 158 | participant's normal retirement benefit shall be increased as |
| 159 | provided in s. 121.101. |
| 160 | (k) Closure of program to new participants.-Effective July |
| 161 |
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| 162 | Between lines 2159 and 2160, insert: |
| 163 | Section 13. Section 121.101, Florida Statutes, is |
| 164 | repealed. |
| 165 |
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| 166 | Between lines 2446 and 2447, insert: |
| 167 | Section 17. Subsections (11) through (13) of section |
| 168 | 121.40, Florida Statutes, are renumbered as subsections (10) |
| 169 | through (12), respectively, and present subsection (10) of that |
| 170 | section is amended to read: |
| 171 | 121.40 Cooperative extension personnel at the Institute of |
| 172 | Food and Agricultural Sciences; supplemental retirement |
| 173 | benefits.- |
| 174 | (10) COST-OF-LIVING ADJUSTMENT OF SUPPLEMENTAL BENEFITS.- |
| 175 | On each July 1, the supplemental benefit of each retired |
| 176 | participant of this program and each annuitant thereof shall be |
| 177 | adjusted as provided in s. 121.101. |
| 178 |
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| 179 |
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| 180 | ----------------------------------------------------- |
| 181 | D I R E C T O R Y A M E N D M E N T |
| 182 | Remove line 1319 and insert: |
| 183 | paragraph (b) of subsection (7), subsection (10), and paragraph |
| 184 | (d) of subsection (12) of section |
| 185 |
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| 186 | Remove lines 1862-1863 and insert: |
| 187 | subsection (9), and present paragraphs (a), (c), and (e) of |
| 188 | subsection (13) of section 121.091, Florida Statutes, are |
| 189 | amended, paragraphs (f) through (k) of subsection (13) of that |
| 190 | section are redesignated as paragraphs (e) through (j), |
| 191 | respectively, and paragraph (k) is |
| 192 |
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| 193 |
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| 194 | ----------------------------------------------------- |
| 195 | T I T L E A M E N D M E N T |
| 196 | Remove line 3 and insert: |
| 197 | 112.05, 112.363, and 112.65, F.S.; conforming provisions to |
| 198 |
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| 199 | Remove line 53 and insert: |
| 200 | to new participants on July 1, 2011; conforming provisions to |
| 201 | changes made by the act; repealing s. 121.101, F.S., relating to |
| 202 | cost-of-living adjustment of benefits; amending s. 121.121, |
| 203 |
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| 204 | Remove line 69 and insert: |
| 205 | 121.40, F.S.; conforming provisions to changes made by the act; |
| 206 | amending s. 121.4501, F.S.; changing the name of the Public |
| 207 | Employee |