Florida Senate - 2015                                    SB 7042
       
       
        
       By the Committee on Governmental Oversight and Accountability
       
       
       
       
       
       585-02154-15                                          20157042__
    1                        A bill to be entitled                      
    2         An act relating to the Florida Retirement System;
    3         amending s. 121.0515, F.S.; authorizing renewed
    4         membership in the retirement system for retirees who
    5         are reemployed in a position eligible for the Special
    6         Risk Class under certain circumstances; amending s.
    7         121.053, F.S.; authorizing renewed membership in the
    8         retirement system for retirees who are reemployed in a
    9         position eligible for the Elected Officers’ Class
   10         under certain circumstances; amending s. 121.055,
   11         F.S.; providing for renewed membership in the
   12         retirement system for retirees of the Senior
   13         Management Service Optional Annuity Program who are
   14         employed on or after a specified date; amending s.
   15         121.091, F.S.; conforming a provision to changes made
   16         by the act; amending s. 121.111, F.S.; requiring an
   17         employer to make employer and employee contributions
   18         towards credit for military service for service credit
   19         earned on or after a specified date; amending s.
   20         121.122, F.S.; requiring that certain retirees who are
   21         employed on or after a specified date be renewed
   22         members in the investment plan; providing exceptions;
   23         specifying that creditable service does not accrue for
   24         a reemployed retiree during a specified period;
   25         prohibiting certain funds from being paid into a
   26         renewed member’s investment plan account for a
   27         specified period of employment; requiring the renewed
   28         member to satisfy vesting requirements; making a
   29         renewed member ineligible to receive disability
   30         benefits; specifying limitations and requirements;
   31         requiring the employer and the retiree to make
   32         applicable contributions to the renewed member’s
   33         investment plan account; providing for the transfer of
   34         contributions; prohibiting the purchase of past
   35         service in the investment plan; authorizing a renewed
   36         member to receive additional credit towards the health
   37         insurance subsidy under certain circumstances;
   38         providing that a retiree employed on or after a
   39         specified date in a regularly established position
   40         eligible for the State University System Optional
   41         Retirement Program or State Community College System
   42         Optional Retirement Program is a renewed member of
   43         that program; specifying limitations and requirements;
   44         requiring the employer and the retiree to make
   45         applicable contributions; prohibiting the purchase of
   46         past service in the program; providing for renewed
   47         membership in the optional retirement program for
   48         certain retirees initially reemployed on or after a
   49         specified date; making the renewed member ineligible
   50         to receive disability benefits; specifying limitations
   51         and requirements; requiring the employer and the
   52         retiree to make applicable contributions; providing
   53         for the transfer of contributions; prohibiting the
   54         purchase of past service in the optional retirement
   55         program; authorizing a renewed member to receive
   56         additional credit towards the health insurance subsidy
   57         under certain circumstances; amending s. 121.4501,
   58         F.S.; revising the definition of the term “eligible
   59         employee”; conforming a provision to changes made by
   60         the act; providing for employer contribution rate
   61         increases to fund changes made by the act; providing a
   62         directive to the Division of Law Revision and
   63         Information; declaring that the act fulfills an
   64         important state interest; providing an effective date.
   65          
   66  Be It Enacted by the Legislature of the State of Florida:
   67  
   68         Section 1. Paragraphs (i) and (j) are added to subsection
   69  (2) of section 121.0515, Florida Statutes, to read:
   70         121.0515 Special Risk Class.—
   71         (2) MEMBERSHIP.—
   72         (i) A retiree of a state-administered retirement system who
   73  is employed in a regularly established position with a covered
   74  employer and initially enrolled in the Special Risk Class as a
   75  renewed member as provided in s. 121.122 on or after July 1,
   76  2016, is subject to the following conditions:
   77         1.a. If a retiree of a state-administered retirement system
   78  is initially reemployed on July 1, 2010, through June 30, 2016,
   79  and is reemployed in a regularly established position eligible
   80  for the Special Risk Class as provided in this subsection and
   81  subsection (3), may be enrolled in the Special Risk Class as a
   82  renewed member of the investment plan for creditable service
   83  earned on or after July 1, 2016.
   84         b. A reemployed retiree, or the employer on behalf of the
   85  retiree, may not purchase any past service for employment from
   86  July 1, 2010, to June 30, 2016, when renewed membership is not
   87  available.
   88         2. A retiree of a state-administered retirement system who
   89  is initially reemployed on or after July 1, 2016, in a regularly
   90  established position eligible for the Special Risk Class as
   91  provided in this subsection and subsection (3) shall be enrolled
   92  as a renewed member of the investment plan.
   93         (j) Effective July 1, 2016, a renewed member initially
   94  enrolled before July 1, 2010, who is employed in a regularly
   95  established position eligible for the Special Risk Class as
   96  provided in this subsection and subsection (3) may be enrolled
   97  in the Special Risk Class as a renewed member of the Florida
   98  Retirement System for creditable service earned on or after July
   99  1, 2016. Service as a renewed member in a regularly established
  100  position otherwise covered by the Special Risk Class as required
  101  by this subsection and subsection (3), before July 1, 2016,
  102  cannot be upgraded from the Regular Class accrual value.
  103         Section 2. Paragraph (a) of subsection (3) and subsection
  104  (5) of section 121.053, Florida Statutes, are amended to read:
  105         121.053 Participation in the Elected Officers’ Class for
  106  retired members.—
  107         (3) On or after July 1, 2010:
  108         (a) A retiree of a state-administered retirement system who
  109  is initially reemployed in elected or appointed for the first
  110  time to an elective office in a regularly established position
  111  with a covered employer may not reenroll in the Florida
  112  Retirement System, except as provided in s. 121.122.
  113         (5) Any renewed member, as described in s. 121.122(1), (3),
  114  (4), or (5) subsection (1) or subsection (2), who is not
  115  receiving the maximum health insurance subsidy provided in s.
  116  112.363 is entitled to earn additional credit toward the maximum
  117  health insurance subsidy. Any additional subsidy due because of
  118  such additional credit may be received only at the time of
  119  payment of the second career retirement benefit. The total
  120  health insurance subsidy received from initial and renewed
  121  membership may not exceed the maximum allowed in s. 112.363.
  122         Section 3. Paragraph (f) of subsection (1) and paragraph
  123  (c) of subsection (6) of section 121.055, Florida Statutes, are
  124  amended to read:
  125         121.055 Senior Management Service Class.—There is hereby
  126  established a separate class of membership within the Florida
  127  Retirement System to be known as the “Senior Management Service
  128  Class,” which shall become effective February 1, 1987.
  129         (1)
  130         (f) Effective July 1, 1997:
  131         1. Except as provided in subparagraph 3., an elected state
  132  officer eligible for membership in the Elected Officers’ Class
  133  under s. 121.052(2)(a), (b), or (c) who elects membership in the
  134  Senior Management Service Class under s. 121.052(3)(c) may,
  135  within 6 months after assuming office or within 6 months after
  136  this act becomes a law for serving elected state officers, elect
  137  to participate in the Senior Management Service Optional Annuity
  138  Program, as provided in subsection (6), in lieu of membership in
  139  the Senior Management Service Class.
  140         2. Except as provided in subparagraph 3., an elected
  141  officer of a local agency employer eligible for membership in
  142  the Elected Officers’ Class under s. 121.052(2)(d) who elects
  143  membership in the Senior Management Service Class under s.
  144  121.052(3)(c) may, within 6 months after assuming office, or
  145  within 6 months after this act becomes a law for serving elected
  146  officers of a local agency employer, elect to withdraw from the
  147  Florida Retirement System, as provided in subparagraph (b)2., in
  148  lieu of membership in the Senior Management Service Class.
  149         3. A retiree of a state-administered retirement system who
  150  is initially reemployed in a regularly established position on
  151  or after July 1, 2010, through June 30, 2016, as an elected
  152  official eligible for the Elected Officers’ Class may not be
  153  enrolled in renewed membership in the Senior Management Service
  154  Class or in the Senior Management Service Optional Annuity
  155  Program as provided in subsection (6), and may not withdraw from
  156  the Florida Retirement System as a renewed member as provided in
  157  subparagraph (b)2., as applicable, in lieu of membership in the
  158  Senior Management Service Class. Effective July 1, 2016, a
  159  retiree of the Senior Management Service Optional Annuity
  160  Program who reenters covered employment shall be enrolled as a
  161  renewed member as provided in s. 121.122.
  162         (6)
  163         (c) Participation.—
  164         1. An eligible employee who is employed on or before
  165  February 1, 1987, may elect to participate in the optional
  166  annuity program in lieu of participating in the Senior
  167  Management Service Class. Such election shall must be made in
  168  writing and filed with the department and the personnel officer
  169  of the employer on or before May 1, 1987. An eligible employee
  170  who is employed on or before February 1, 1987, and who fails to
  171  make an election to participate in the optional annuity program
  172  by May 1, 1987, is shall be deemed to have elected membership in
  173  the Senior Management Service Class.
  174         2. Except as provided in subparagraph 6., an employee who
  175  becomes eligible to participate in the optional annuity program
  176  by reason of initial employment commencing after February 1,
  177  1987, may, within 90 days after the date of commencing
  178  employment, elect to participate in the optional annuity
  179  program. Such election shall must be made in writing and filed
  180  with the personnel officer of the employer. An eligible employee
  181  who does not within 90 days after commencing employment elect to
  182  participate in the optional annuity program is shall be deemed
  183  to have elected membership in the Senior Management Service
  184  Class.
  185         3. A person who is appointed to a position in the Senior
  186  Management Service Class and who is a member of an existing
  187  retirement system or the Special Risk or Special Risk
  188  Administrative Support Classes of the Florida Retirement System
  189  may elect to remain in such system or class in lieu of
  190  participating in the Senior Management Service Class or optional
  191  annuity program. Such election shall must be made in writing and
  192  filed with the department and the personnel officer of the
  193  employer within 90 days after such appointment. An eligible
  194  employee who fails to make an election to participate in the
  195  existing system, the Special Risk Class of the Florida
  196  Retirement System, the Special Risk Administrative Support Class
  197  of the Florida Retirement System, or the optional annuity
  198  program is shall be deemed to have elected membership in the
  199  Senior Management Service Class.
  200         4. Except as provided in subparagraph 5., an employee’s
  201  election to participate in the optional annuity program is
  202  irrevocable if the employee continues to be employed in an
  203  eligible position and continues to meet the eligibility
  204  requirements set forth in this paragraph.
  205         5. Effective from July 1, 2002, through September 30, 2002,
  206  an active employee in a regularly established position who has
  207  elected to participate in the Senior Management Service Optional
  208  Annuity Program has one opportunity to choose to move from the
  209  Senior Management Service Optional Annuity Program to the
  210  Florida Retirement System Pension Plan.
  211         a. The election shall must be made in writing and must be
  212  filed with the department and the personnel officer of the
  213  employer before October 1, 2002, or, in the case of an active
  214  employee who is on a leave of absence on July 1, 2002, within 90
  215  days after the conclusion of the leave of absence. This election
  216  is irrevocable.
  217         b. The employee shall receive service credit under the
  218  pension plan equal to his or her years of service under the
  219  Senior Management Service Optional Annuity Program. The cost for
  220  such credit is the amount representing the present value of that
  221  employee’s accumulated benefit obligation for the affected
  222  period of service.
  223         c. The employee shall must transfer the total accumulated
  224  employer contributions and earnings on deposit in his or her
  225  Senior Management Service Optional Annuity Program account. If
  226  the transferred amount is not sufficient to pay the amount due,
  227  the employee shall must pay a sum representing the remainder of
  228  the amount due. The employee may not retain any employer
  229  contributions or earnings from the Senior Management Service
  230  Optional Annuity Program account.
  231         6. A retiree of a state-administered retirement system who
  232  is initially reemployed on or after July 1, 2010, through June
  233  30, 2016, may not renew membership in the Senior Management
  234  Service Optional Annuity Program. Effective July 1, 2016, a
  235  retiree of the Senior Management Service Optional Annuity
  236  Program who reenters covered employment shall be enrolled as a
  237  renewed member as provided in s. 121.122.
  238         Section 4. Paragraph (c) of subsection (9) of section
  239  121.091, Florida Statutes, is amended to read:
  240         121.091 Benefits payable under the system.—Benefits may not
  241  be paid under this section unless the member has terminated
  242  employment as provided in s. 121.021(39)(a) or begun
  243  participation in the Deferred Retirement Option Program as
  244  provided in subsection (13), and a proper application has been
  245  filed in the manner prescribed by the department. The department
  246  may cancel an application for retirement benefits when the
  247  member or beneficiary fails to timely provide the information
  248  and documents required by this chapter and the department’s
  249  rules. The department shall adopt rules establishing procedures
  250  for application for retirement benefits and for the cancellation
  251  of such application when the required information or documents
  252  are not received.
  253         (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
  254         (c) Any person whose retirement is effective on or after
  255  July 1, 2010, or whose participation in the Deferred Retirement
  256  Option Program terminates on or after July 1, 2010, who is
  257  retired under this chapter, except under the disability
  258  retirement provisions of subsection (4) or as provided in s.
  259  121.053, may be reemployed by an employer that participates in a
  260  state-administered retirement system and receive retirement
  261  benefits and compensation from that employer. However, a person
  262  may not be reemployed by an employer participating in the
  263  Florida Retirement System before meeting the definition of
  264  termination in s. 121.021 and may not receive both a salary from
  265  the employer and retirement benefits for 6 calendar months after
  266  meeting the definition of termination. However, a DROP
  267  participant shall continue employment and receive a salary
  268  during the period of participation in the Deferred Retirement
  269  Option Program, as provided in subsection (13).
  270         1. The reemployed retiree may not renew membership in the
  271  Florida Retirement System, except as provided in s. 121.122.
  272         2. The employer shall pay retirement contributions in an
  273  amount equal to the unfunded actuarial liability portion of the
  274  employer contribution that would be required for active members
  275  of the Florida Retirement System in addition to the
  276  contributions required by s. 121.76.
  277         3. A retiree initially reemployed in violation of this
  278  paragraph and an employer that employs or appoints such person
  279  are jointly and severally liable for reimbursement of any
  280  retirement benefits paid to the retirement trust fund from which
  281  the benefits were paid, including the Florida Retirement System
  282  Trust Fund and the Public Employee Optional Retirement Program
  283  Trust Fund, as appropriate. The employer must have a written
  284  statement from the employee that he or she is not retired from a
  285  state-administered retirement system. Retirement benefits shall
  286  remain suspended until repayment is made. Benefits suspended
  287  beyond the end of the retiree’s 6-month reemployment limitation
  288  period shall apply toward the repayment of benefits received in
  289  violation of this paragraph.
  290         Section 5. Subsection (1) of section 121.111, Florida
  291  Statutes, is amended to read:
  292         121.111 Credit for military service.—
  293         (1) Creditable service of any member shall also include
  294  military service as defined in s. 121.021(20)(a) if:
  295         (a) The member is in the active employ of an employer
  296  immediately prior to such service and leaves a position, other
  297  than a temporary position, for the purpose of induction into the
  298  Armed Forces of the United States or entry upon duty in the
  299  Armed Forces of the United States. When applied to the Florida
  300  Retirement System:
  301         1. The term “position other than a temporary position”
  302  means a regularly established position with a Florida Retirement
  303  System employer; and
  304         2. A member shall be construed to have left his or her
  305  employment for military purposes if he or she reported for
  306  active duty within 60 days after leaving such employment;
  307         (b) The member is entitled to reemployment under the
  308  provisions of the Veterans’ Reemployment Rights Act (38 U.S.C.
  309  ss. 2021 et seq.);
  310         (c) The member applies for reemployment with the same
  311  employer within the time set forth in s. 2021 or s. 2024 of the
  312  Veterans’ Reemployment Rights Act, whichever is applicable, and
  313  is reemployed by such employer;
  314         (d)1.For service credit earned before July 1, 2015, the
  315  member makes the required employee contributions, if any, and
  316  the employer makes the required employer contributions for the
  317  employee’s membership class for each month of service credit
  318  during such period of military service, based upon the
  319  employee’s rate of monthly compensation as of the date that the
  320  employee left his or her position, plus 4 percent interest on
  321  such contributions compounded annually from the due date of the
  322  contribution until July 1, 1975, and 6.5 percent interest
  323  compounded annually thereafter, until the payment is made to the
  324  proper retirement trust fund; and
  325         2. For service credit earned on or after July 1, 2015, the
  326  employer makes the required employer and employee contributions
  327  for the employee’s membership class for each month of service
  328  credit during such period of military service, based upon the
  329  employee’s rate of monthly compensation as of the date that the
  330  employee left his or her position, plus 6.5 percent interest on
  331  such contributions compounded annually from the due date of the
  332  contribution until the payment is made to the Florida Retirement
  333  System Trust Fund; and
  334         (e) The period of service claimed pursuant to this
  335  subsection does not exceed the periods specified by the
  336  provisions of ss. 2021 and 2024 of the Veterans’ Reemployment
  337  Rights Act which are applicable in the member’s case.
  338         Section 6. Subsection (2) of section 121.122, Florida
  339  Statutes, is amended, and subsections (3) through (6) are added
  340  to that section, to read:
  341         121.122 Renewed membership in system.—
  342         (2) A retiree of a state-administered retirement system who
  343  is initially reemployed in a regularly established position on
  344  or after July 1, 2010, through June 30, 2016, may not be
  345  enrolled as a renewed member.
  346         (3) A retiree of a state-administered retirement system
  347  specified in subsection (2) who is employed on or after July 1,
  348  2016, in a regularly established position shall be a renewed
  349  member of the investment plan, regardless of the position held,
  350  unless employed in a position eligible for participation in the
  351  State University System Optional Retirement Program or the State
  352  Community College System Optional Retirement Program as provided
  353  in subsections (4) and (5), respectively. A renewed member must
  354  satisfy the vesting requirements and other provisions of this
  355  chapter.
  356         (a) Creditable service, including credit toward the retiree
  357  health insurance subsidy provided in s. 112.363, does not accrue
  358  for a retiree’s employment in a regularly established position
  359  with a covered employer during the period from July 1, 2010,
  360  through June 30, 2016.
  361         (b) Employer and employee contributions, interest,
  362  earnings, or any other funds may not be paid into a renewed
  363  member’s investment plan account for any employment in a
  364  regularly established position with a covered employer from July
  365  1, 2010, through June 30, 2016, by the renewed member or the
  366  employer on behalf of the member.
  367         (c) To be eligible to receive a retirement benefit, the
  368  renewed member must satisfy the vesting requirements in s.
  369  121.4501(6).
  370         (d) The member is ineligible to receive disability benefits
  371  as provided in s. 121.091(4) or s. 121.591(2).
  372         (e) The member is subject to the reemployment after
  373  retirement limitations provided in s. 121.091(9), as applicable.
  374         (f) The member must satisfy the requirements for
  375  termination from employment provided in s. 121.021(39).
  376         (g) Upon the renewed membership or reemployment of a
  377  retiree, the employer and the retiree shall pay the applicable
  378  employer and employee contributions required under ss. 112.363,
  379  121.71, 121.74, and 121.76. The contributions are payable only
  380  for employment and salary earned in a regularly established
  381  position with a covered employer on or after July 1, 2016. The
  382  employer and employee contributions shall be transferred to the
  383  investment plan and placed in a default fund as designated by
  384  the state board. The retiree may move the contributions once an
  385  account is activated in the investment plan.
  386         (h) The member may not purchase any past service in the
  387  investment plan, including employment in a regularly established
  388  position with a covered employer from July 1, 2010, through June
  389  30, 2016.
  390         (i) A renewed member who is a retiree of the investment
  391  plan or pension plan and who is not receiving the maximum health
  392  insurance subsidy provided in s. 112.363 is entitled to earn
  393  additional credit toward the subsidy. Such credit may be earned
  394  only for employment in a regularly established position with a
  395  covered employer on or after July 1, 2016. Any additional
  396  subsidy due because of additional credit may be received only at
  397  the time of paying the second career retirement benefit. The
  398  total health insurance subsidy received by a retiree receiving
  399  benefits from initial and renewed membership may not exceed the
  400  maximum allowed under s. 112.363.
  401         (4) A retiree of a state-administered retirement system
  402  specified in subsection (2) who is employed on or after July 1,
  403  2016, in a regularly established position eligible for
  404  participation in the State University System Optional Retirement
  405  Program shall become a renewed member of the optional retirement
  406  program. The renewed member must satisfy the vesting
  407  requirements and other provisions of this chapter. Once
  408  enrolled, a renewed member remains enrolled in the optional
  409  retirement program while employed in an eligible position for
  410  the optional retirement program. If employment in a different
  411  covered position results in the retiree’s enrollment in the
  412  investment plan, the retiree is no longer eligible to
  413  participate in the optional retirement program unless employed
  414  in a mandatory position under s. 121.35.
  415         (a) The member is subject to the reemployment after
  416  retirement limitations provided in s. 121.091(9), as applicable.
  417         (b) The member must satisfy the requirements for
  418  termination of employment provided in s. 121.021(39).
  419         (c) Upon renewed membership or reemployment of a retiree,
  420  the employer and the retiree shall pay the applicable employer
  421  and employee contributions required under s. 121.35.
  422         (d) The member, or the employer on behalf of the member,
  423  may not purchase any past service in the optional retirement
  424  program or employment from July 1, 2010, to June 30, 2016, when
  425  renewed membership is not available.
  426         (5) A retiree of a state-administered retirement system
  427  specified in subsection (2) who is employed on or after July 1,
  428  2016, in a regularly established position eligible for
  429  participation in the State Community College System Optional
  430  Retirement Program as provided in s. 121.051(2)(c)4., shall
  431  become a renewed member of the optional retirement program. The
  432  renewed member must satisfy the eligibility requirements of this
  433  chapter and s. 1012.875 for the optional retirement program.
  434  Once enrolled, a renewed member remains enrolled in the optional
  435  retirement program while employed in an eligible position for
  436  the optional retirement program. If employment in a different
  437  covered position results in the retiree’s enrollment in the
  438  investment plan, the retiree is no longer eligible to
  439  participate in the optional retirement program.
  440         (a) The member is subject to the reemployment after
  441  retirement limitations provided in s. 121.091(9), as applicable.
  442         (b) The member must satisfy the requirements for
  443  termination of employment provided in s. 121.021(39).
  444         (c) Upon renewed membership or reemployment of a retiree,
  445  the employer and the retiree shall pay the applicable employer
  446  and employee contributions required under ss. 121.051(2)(c) and
  447  1012.875.
  448         (d) The member, or the employer on behalf of the member,
  449  may not purchase any past service in the optional retirement
  450  program or employment accrued from July 1, 2010, to June 30,
  451  2016.
  452         (6) A retiree of a state-administered retirement system who
  453  is initially reemployed in a regularly established position on
  454  or after July 1, 2016, shall be enrolled in the investment plan
  455  unless eligible for participation in the State University System
  456  Optional Retirement Program as provided in s. 121.35 or in the
  457  State Community College System Optional Retirement Program as
  458  provided in ss. 121.051(2)(c) and 1012.875. A renewed member
  459  must satisfy the vesting requirements and other provisions
  460  provided in this chapter.
  461         (a) The member is not entitled to disability benefits as
  462  provided in s. 121.091(4) or s. 121.591(2).
  463         (b) The member is subject to the reemployment after
  464  retirement limitations as provided in s. 121.091(9), as
  465  applicable.
  466         (c) The member must meet the termination from employment
  467  provisions as provided in s. 121.021(39).
  468         (d) Upon the renewed membership of a reemployed retiree,
  469  the employer and the retiree shall pay the applicable employer
  470  and employee contributions as required by ss. 112.363, 121.71,
  471  121.74, and 121.76. The contributions are payable only for
  472  employment and compensation earned in a regularly established
  473  position with a covered employer on or after July 1, 2016. The
  474  employer and employee contributions shall be transferred to the
  475  investment plan and placed in a default fund as designated by
  476  the state board. The retiree may move the contributions once an
  477  account is activated in the investment plan.
  478         (e) The member or the employer on behalf of the member may
  479  not purchase any past service in the optional retirement program
  480  or employment accrued from July 1, 2010 to June 30, 2016.
  481         (f) A renewed member who is a retiree of the investment
  482  plan or pension plan and is not receiving the maximum health
  483  insurance subsidy provided in s. 112.363 is entitled to earn
  484  additional credit toward the subsidy. Such credit may be earned
  485  only for employment in a regularly established position with a
  486  covered employer on or after July 1, 2016. Any additional
  487  subsidy due because of additional credit may be received only at
  488  the time of paying the second career retirement benefit. The
  489  total health insurance subsidy received by a retiree receiving
  490  benefits from initial and renewed membership may not exceed the
  491  maximum allowable under s. 112.363.
  492         Section 7. Paragraph (e) of subsection (2) and paragraph
  493  (f) of subsection (4) of section 121.4501, Florida Statutes, are
  494  amended to read:
  495         121.4501 Florida Retirement System Investment Plan.—
  496         (2) DEFINITIONS.—As used in this part, the term:
  497         (e) “Eligible employee” means an officer or employee, as
  498  defined in s. 121.021, who:
  499         1. Is a member of, or is eligible for membership in, the
  500  Florida Retirement System, including any renewed member of the
  501  Florida Retirement System initially enrolled before July 1,
  502  2010; or
  503         2. Participates in, or is eligible to participate in, the
  504  Senior Management Service Optional Annuity Program as
  505  established under s. 121.055(6), the State Community College
  506  System Optional Retirement Program as established under s.
  507  121.051(2)(c), or the State University System Optional
  508  Retirement Program established under s. 121.35; or
  509         3. Is a retiree of a state-administered retirement system
  510  employed in a regularly established position on or after July 1,
  511  2016, enrolled as a renewed member as provided under s. 121.122.
  512  
  513  The term does not include any member participating in the
  514  Deferred Retirement Option Program established under s.
  515  121.091(13), a retiree of a state-administered retirement system
  516  initially reemployed in a regularly established position on or
  517  after July 1, 2010, through June 30, 2016, or a mandatory
  518  participant of the State University System Optional Retirement
  519  Program established under s. 121.35.
  520         (4) PARTICIPATION; ENROLLMENT.—
  521         (f)1. A member of the investment plan who takes a
  522  distribution of any contributions from his or her investment
  523  plan account is considered a retiree. A retiree who is initially
  524  reemployed in a regularly established position on or after July
  525  1, 2010, and before June 30, 2016, is not eligible for to be
  526  enrolled in renewed membership, except as provided in s.
  527  121.122.
  528         2. A retiree who is initially reemployed on or after July
  529  1, 2016, shall be a renewed member as provided in s. 121.122.
  530         Section 8. (1) In order to fund the benefit changes
  531  provided for in this act, the required employer contribution
  532  rates of the Florida Retirement System established in 121.71(4),
  533  Florida Statutes, shall be adjusted effective July 1, 2016 as
  534  follows:
  535         (a) The Regular Class is increased by X.XX percentage
  536  points.
  537         (b) The Special Risk Class is increased by X.XX percentage
  538  points.
  539         (c) The Special Risk Administrative Support Class is
  540  increased by X.XX percentage points.
  541         (d) The Elected Officers’ Class—Legislators, Governor, Lt.
  542  Governor, Cabinet Officers, State Attorneys, Public Defenders is
  543  increased by X.XX percentage points.
  544         (e) The Elected Officers’ Class—Justices, Judges is
  545  increased by X.XX percentage points.
  546         (f) The Elected Officer’s Class—County Elected Officers is
  547  increased by X.XX percentage points.
  548         (g) The Senior Management Service Class is increased by
  549  X.XX percentage points.
  550         (h) The DROP is increased by X.XX percentage points.
  551         (2) The adjustments provided in subsection (1) shall be
  552  made in addition to other changes to such contribution rates
  553  which may be enacted into law to take effect on July 1, 2016.
  554  The Division of Law Revision and Information is requested to
  555  adjust accordingly the contribution rates provided in s. 121.71,
  556  Florida Statutes.
  557         Section 9. The Legislature finds that a proper and
  558  legitimate state purpose is served when employees and retirees
  559  of the state and its political subdivisions, and the dependents,
  560  survivors, and beneficiaries of such employees and retirees, are
  561  extended the basic protections afforded by governmental
  562  retirement systems. These persons must be provided benefits that
  563  are fair and adequate and that are managed, administered, and
  564  funded in an actuarially sound manner, as required by s. 14,
  565  Article X of the State Constitution and part VII of chapter 112,
  566  Florida Statutes. Therefore, the Legislature determines and
  567  declares that this act fulfills an important state interest.
  568         Section 10. This act shall take effect July 1, 2015.