Amendment
Bill No. CS/CS/SB 2848

Amendment No. 964519

CHAMBER ACTION
Senate		House
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1	Representative Schenck offered the following:
2
3	Amendment (with title amendment)
4	Remove everything after the enacting clause and insert:
5	Section 1.  Subsections (10), (11), (18), paragraph (b) of
6	subsection (22), and subsections (29), (39), (52), and (53) of
7	section 121.021, Florida Statutes, are amended, and subsections
8	(63) and (64) are added to that section, to read:
9	121.021  Definitions.--The following words and phrases as
10	used in this chapter have the respective meanings set forth
11	unless a different meaning is plainly required by the context:
12	(10)  "Employer" means any agency, branch, department,
13	institution, university, institution of higher education, or
14	board of the state, or any county agency, branch, department,
15	board, district school board, or special district of the state,
16	or any city of the state which participates in the system for
17	the benefit of certain of its employees, or a charter school or
18	charter technical career center that participates as provided in
19	s. 121.051(2)(d). Employers are not agents of the department,
20	the state board, or the Division of Retirement, and the
21	department, the state board, and the division are not
22	responsible for erroneous information provided by
23	representatives of employers.
24	(11)  "Officer or employee" means any person receiving
25	salary payments for work performed in a regularly established
26	position and, if employed by a city, a metropolitan planning
27	organization, or a special district, employed in a covered
28	group. The term does not apply to:
29	(a)  State employees covered by a leasing agreement under
30	s. 110.191, other public employees covered by a leasing
31	agreement, or to a co-employer relationship.
32	(b)  A person who is an inmate or prisoner at the time the
33	work is performed.
34	(18)  "Past service" of any member, as provided in s.
35	121.081(1), means the number of years and complete months and
36	any fractional part of a month, recognized and credited by an
37	employer and approved by the administrator, during which the
38	member was in the active employ of a governmental an employer
39	and for which the employee is not entitled to a benefit prior to
40	his or her date of participation.
41	(22)  "Compensation" means the monthly salary paid a member
42	by his or her employer for work performed arising from that
43	employment.
44	(b)  Under no circumstances shall compensation for a member
45	participating in the defined benefit retirement program or the
46	Public Employee Optional Retirement Program of the Florida
47	Retirement System include:
48	1.  Fees paid professional persons for special or
49	particular services or include salary payments made from a
50	faculty practice plan authorized by the Board of Governors of
51	the State University System for eligible clinical faculty at a
52	college in a state university that has with a faculty practice
53	plan; or
54	2.  Any Bonuses or other payments prohibited from inclusion
55	in the member's average final compensation and defined in
56	subsection (47); or
57	3. Payment for work given to a person who is an inmate or
58	prisoner at the time the work is performed.
59	(29)  "Normal retirement date" means the first day of any
60	month following the date a member attains normal retirement age
61	and is vested, which is determined as follows one of the
62	following statuses:
63	(a)  If a Regular Class member, the member:
64	1.  The first day of the month the member completes 6 or
65	more years of creditable service and attains age 62; or
66	2.  The first day of the month following the date the
67	member completes 30 years of creditable service, regardless of
68	age, which may include a maximum of 4 years of military service
69	credit as long as such credit is not claimed under any other
70	system.
71	(b)  If a Special Risk Class member, the member:
72	1.  The first day of the month the member completes 6 or
73	more years of creditable service in the Special Risk Class and
74	attains age 55;
75	2.  The first day of the month following the date the
76	member completes 25 years of creditable service in the Special
77	Risk Class, regardless of age; or
78	3.  The first day of the month following the date the
79	member completes 25 years of creditable service and attains age
80	52, which service may include a maximum of 4 years of military
81	service credit as long as such credit is not claimed under any
82	other system and the remaining years are in the Special Risk
83	Class.
84	(c)  If a Senior Management Service Class member, the
85	member:
86	1.  The first day of the month the member completes 6 years
87	of creditable service in the Senior Management Service Class and
88	attains age 62; or
89	2.  The first day of the month following the date the
90	member completes 30 years of any creditable service, regardless
91	of age, which may include a maximum of 4 years of military
92	service credit as long as such credit is not claimed under any
93	other system.
94	(d)  If an Elected Officers' Class member, the member:
95	1.  The first day of the month the member completes 6 years
96	of creditable service in the Elected Officers' Class and attains
97	age 62; or
98	2.  The first day of the month following the date the
99	member completes 30 years of any creditable service, regardless
100	of age, which may include a maximum of 4 years of military
101	service credit as long as such credit is not claimed under any
102	other system.
103
104	"Normal retirement age" is attained on the "normal retirement
105	date."
106	(39)(a)  "Termination" occurs, except as provided in
107	paragraph (b), when:
108	1.  For retirements effective before July 1, 2009, a member
109	ceases all employment relationships with employers under this
110	system, as defined in subsection (10), but in the event a member
111	should be employed by any such employer within the next calendar
112	month, termination shall be deemed not to have occurred. A leave
113	of absence shall constitute a continuation of the employment
114	relationship, except that a leave of absence without pay due to
115	disability may constitute termination for a member, if such
116	member makes application for and is approved for disability
117	retirement in accordance with s. 121.091(4). The department or
118	board may require other evidence of termination as it deems
119	necessary.
120	2.  For retirements effective on or after July 1, 2009, a
121	member ceases all employment relationships with employers under
122	this system, as defined in subsection (10), but in the event a
123	member should be employed by any such employer within the next
124	12 calendar months, termination shall be deemed not to have
125	occurred. A leave of absence shall constitute a continuation of
126	the employment relationship, except that a leave of absence
127	without pay due to disability may constitute termination for a
128	member, if such member makes application for and is approved for
129	disability retirement in accordance with s. 121.091(4). The
130	department or board may require other evidence of termination as
131	it deems necessary.
132	(b)  "Termination" for a member electing to participate
133	under the Deferred Retirement Option Program occurs when the
134	Deferred Retirement Option Program participant ceases all
135	employment relationships with employers under this system in
136	accordance with s. 121.091(13), but:
137	1.  For DROP termination dates before July 1, 2009, in the
138	event the Deferred Retirement Option Program participant should
139	be employed by any such employer within the next calendar month,
140	termination will be deemed not to have occurred, except as
141	provided in s. 121.091(13)(b)4.c. A leave of absence shall
142	constitute a continuation of the employment relationship.
143	2.  For DROP termination dates on or after July 1, 2009, in
144	the event the DROP participant should be employed by any such
145	employer within the next 12 calendar months, termination will be
146	deemed not to have occurred, except as provided in s.
147	121.091(13)(b)4.c. A leave of absence shall constitute a
148	continuation of the employment relationship.
149	(52)  "Regularly established position" is defined as
150	follows:
151	(a)  With respect to employment for In a state employer
152	agency, the term means a position that which is authorized and
153	established pursuant to law and is compensated from a salaries
154	appropriation pursuant to s. 216.011(1)(dd), or an established
155	position which is authorized pursuant to s. 216.262(1)(a) and
156	(b) and is compensated from a salaries account as provided by
157	rule.
158	(b)  With respect to employment for In a local employer
159	agency (district school board, county agency, community college,
160	city, metropolitan planning organization, or special district),
161	the term means a regularly established position that which will
162	be in existence for a period beyond 6 consecutive months, except
163	as provided by rule.
164	(53)  "Temporary position" is defined as follows:
165	(a)  With respect to employment for In a state employer
166	agency, the term means an employment position that which is
167	compensated from an other personal services (OPS) account, as
168	provided for in s. 216.011(1)(dd).
169	(b)  With respect to employment for In a local employer
170	agency, the term means an employment position that which will
171	exist for less than 6 consecutive months, or other employment
172	position as determined by rule of the division, regardless of
173	whether it will exist for 6 consecutive months or longer.
174	(63)  "State board" or "board" means the State Board of
175	Administration.
176	(64)  "Trustees" means the Board of Trustees of the State
177	Board of Administration.
178	Section 2.  Subsection (6) is added to section 121.031,
179	Florida Statutes, to read:
180	121.031  Administration of system; appropriation; oaths;
181	actuarial studies; public records.--
182	(6)  Unless prior written approval is obtained from the
183	department or state board, any promotional materials or
184	advertisements that, directly or indirectly, refer to the
185	Florida Retirement System or the FRS, must contain a disclaimer
186	that the information is not approved or endorsed by the Florida
187	Retirement System.
188	Section 3.  Paragraph (a) of subsection (1) and paragraph
189	(f) of subsection (2) of section 121.051, Florida Statutes, are
190	amended, and subsection (10) is added to that section, to read:
191	121.051  Participation in the system.--
192	(1)  COMPULSORY PARTICIPATION.--
193	(a)  The provisions of this law are shall be compulsory as
194	to all officers and employees, except elected officers who meet
195	the requirements of s. 121.052(3), who are employed on or after
196	December 1, 1970, by of an employer other than those referred to
197	in paragraph (2)(b), and each officer or employee, as a
198	condition of employment, shall become a member of the system as
199	of his or her date of employment, except that a person who is
200	retired from any state retirement system and is reemployed on or
201	after December 1, 1970, may shall not be permitted to renew his
202	or her membership in any state retirement system except as
203	provided in s. 121.091(4)(h) for a person who recovers from
204	disability, and as provided in s. 121.091(9)(b)10. s.
205	121.091(9)(b)8. for a person who is elected to public office,
206	and, effective July 1, 1991, as provided in s. 121.122 for all
207	other retirees. Officers and employees of the University
208	Athletic Association, Inc., a nonprofit association connected
209	with the University of Florida, employed on and after July 1,
210	1979, may shall not participate in any state-supported
211	retirement system.
212	1.a.  Any person appointed on or after July 1, 1989, to a
213	faculty position in a college at the J. Hillis Miller Health
214	Center at the University of Florida or the Medical Center at the
215	University of South Florida which has a faculty practice plan
216	adopted provided by rule may adopted by the Board of Regents
217	shall not participate in the Florida Retirement System.
218	Effective January 1, 2009, any person appointed thereafter to a
219	faculty position, including clinical faculty, in a college at a
220	state university that has a faculty practice plan authorized by
221	the Board of Governors may not participate in the Florida
222	Retirement System. A faculty member so appointed shall
223	participate in the optional retirement program for the State
224	University System on the basis of his or her state-funded
225	compensation, notwithstanding the provisions of s. 121.35(2)(a).
226	b.  For purposes of this subparagraph, the term "faculty
227	position" is defined as a position assigned the principal
228	responsibility of teaching, research, or public service
229	activities or administrative responsibility directly related to
230	the academic mission of the college. The term "clinical faculty"
231	is defined as a faculty position appointment in conjunction with
232	a professional position in a hospital or other clinical
233	environment at a college. The term "faculty practice plan"
234	includes professional services to patients, institutions, or
235	other parties which are rendered by the clinical faculty employed
236	by a college that has a faculty practice plan at a state
237	university authorized by the Board of Governors.
238	(2)  OPTIONAL PARTICIPATION.--
239	(f)1.  If Whenever an employer that participates in the
240	Florida Retirement System undertakes the transfer, merger, or
241	consolidation of governmental services or assumes the functions
242	or activities of an employing governmental entity that was not
243	an employer under the system, the employer must notify the
244	department at least 60 days prior to such action and shall
245	provide documentation as required by the department. The
246	transfer, merger, or consolidation of governmental services or
247	assumption of governmental functions and activities must occur
248	between public employers. The current or former employer may pay
249	the employees' past service cost unless prohibited under this
250	chapter. This paragraph does not apply to the transfer, merger,
251	or consolidation of governmental services or assumption of
252	functions and activities of a public entity under a leasing
253	agreement having a co-employer relationship. Employers and
254	employees of a public governmental employer whose service is
255	covered by a leasing agreement under s. 110.191, other leasing
256	agreement, or a co-employer relationship are not eligible to
257	participate in the Florida Retirement System.
258	2.  If When the agency to which a member's employing unit
259	is transferred, merged, or consolidated does not participate in
260	the Florida Retirement System, a member may shall elect in
261	writing to remain in the Florida Retirement System or to
262	transfer to the local retirement system operated by the such
263	agency. If such agency does not participate in a local
264	retirement system, the member shall continue membership in the
265	Florida Retirement System. In either case, the membership
266	continues shall continue for as long as the member is employed
267	by the agency to which his or her unit was transferred, merged,
268	or consolidated.
269	(10)  PROHIBITED PARTICIPATION.--A person who is an inmate
270	or prisoner at the time the work is performed is prohibited from
271	participating in, or receiving benefits from, any part of the
272	Florida Retirement System based on such work.
273	Section 4.  Paragraph (e) of subsection (3) of section
274	121.052, Florida Statutes, is amended to read:
275	121.052  Membership class of elected officers.--
276	(3)  PARTICIPATION AND WITHDRAWAL, GENERALLY.--Effective
277	July 1, 1990, participation in the Elected Officers' Class shall
278	be compulsory for elected officers listed in paragraphs (2)(a)-
279	(d) and (f) assuming office on or after said date, unless the
280	elected officer elects membership in another class or withdraws
281	from the Florida Retirement System as provided in paragraphs
282	(3)(a)-(d):
283	(e)  Effective January 1, 2009 July 1, 2001, the governing
284	body of a municipality or special district may, by majority
285	vote, elect to designate all its elected positions for inclusion
286	in the Elected Officers' Class. Such election shall be made
287	between January 1, 2009, and June 30, 2009 July 1, 2001, and
288	December 31, 2001, and shall be irrevocable. The designation of
289	such positions shall be effective the first day of the month
290	following receipt by the department of the ordinance or
291	resolution passed by the governing body.
292	Section 5.  Subsections (1) and (2) of section 121.053,
293	Florida Statutes, are amended to read:
294	121.053  Participation in the Elected Officers' Class for
295	retired members.--
296	(1)(a)1.  Any retiree of a state-administered retirement
297	system who initially serves in an elective office in a regularly
298	established position with a covered employer on or after January
299	1, 2009, shall not be enrolled in the Florida Retirement System.
300	2.  An elected officer who is elected or appointed to an
301	elective office and is participating in the Deferred Retirement
302	Option Program is subject to termination as provided in s.
303	121.021(39)(b), and reemployment limitations as provided in s.
304	121.091(9), upon completion of his or her DROP participation
305	period.
306	(b)  Before July 1, 2009, any member who retired under any
307	existing system as defined in s. 121.021(2), and receives a
308	benefit thereof, and who serves in an office covered by the
309	Elected Officers' Class for a period of at least 6 years, shall
310	be entitled to receive an additional retirement benefit for such
311	elected officer service prior to July 1, 1990, under the Elected
312	Officers' Class of the Florida Retirement System, as follows:
313	1.  Upon completion of 6 or more years of creditable
314	service in an office covered by the Elected Officers' Class, s.
315	121.052, such member shall notify the administrator of his or
316	her intent to purchase elected officer service prior to July 1,
317	1990, and shall pay the member contribution applicable for the
318	period being claimed, plus 4 percent interest compounded
319	annually from the first year of service claimed until July 1,
320	1975, and 6.5 percent interest compounded annually thereafter,
321	until full payment is made to the Florida Retirement System
322	Trust Fund; however, such member may purchase retirement credit
323	under the Elected Officers' Class only for such service as an
324	elected officer.
325	2.  Upon payment of the amount specified in subparagraph
326	1., the employer shall pay into the Florida Retirement System
327	Trust Fund the applicable employer contribution for the period
328	of elected officer service prior to July 1, 1990, being claimed
329	by the member, plus 4 percent interest compounded annually from
330	the first year of service claimed until July 1, 1975, and 6.5
331	percent interest compounded annually thereafter, until full
332	payment is made to the Florida Retirement System Trust Fund.
333	(c)(b)  Any retired member of the Florida Retirement
334	System, or any existing system as defined in s. 121.021(2), who,
335	on or after July 1, 1990, through June 30, 2009, is serving in,
336	or is elected or appointed to, an elective office covered by the
337	Elected Officers' Class shall be enrolled in the appropriate
338	subclass of the Elected Officers' Class of the Florida
339	Retirement System, and applicable contributions shall be paid
340	into the Florida Retirement System Trust Fund as provided in s.
341	121.052(7). Pursuant thereto:
342	1.  Any such retired member shall be eligible to continue
343	to receive retirement benefits as well as compensation for the
344	elected officer service for as long as he or she remains in an
345	elective office covered by the Elected Officers' Class.
346	2.  If any such member serves in an elective office covered
347	by the Elected Officers' Class and becomes vested under that
348	class, he or she shall be entitled to receive an additional
349	retirement benefit for such elected officer service.
350	3.  Such member shall be entitled to purchase additional
351	retirement credit in the Elected Officers' Class for any
352	postretirement service performed in an elected position eligible
353	for the Elected Officers' Class prior to July 1, 1990, or in the
354	Regular Class for any postretirement service performed in any
355	other regularly established position prior to July 1, 1991, by
356	paying the applicable Elected Officers' Class or Regular Class
357	employee and employer contributions for the period being
358	claimed, plus 4 percent interest compounded annually from the
359	first year of service claimed until July 1, 1975, and 6.5
360	percent interest compounded thereafter, until full payment is
361	made to the Florida Retirement System Trust Fund. The
362	contribution for postretirement Regular Class service between
363	July 1, 1985, and July 1, 1991, for which the reemployed retiree
364	contribution was paid, shall be the difference between such
365	contribution and the total applicable contribution for the
366	period being claimed, plus interest. The employer of such member
367	may pay the applicable employer contribution in lieu of the
368	member. If a member does not wish to claim credit for all of the
369	postretirement service for which he or she is eligible, the
370	service the member claims must be the most recent service.
371	4.  Creditable service for which credit was received, or
372	which remained unclaimed, at retirement may not be claimed or
373	applied toward service credit earned following renewed
374	membership. However, service earned in accordance with the
375	renewed membership provisions in s. 121.122 may be used in
376	conjunction with creditable service earned under this paragraph,
377	provided applicable vesting requirements and other existing
378	statutory conditions required by this chapter are met.
379	5.  An elected officer who is elected or appointed to an
380	elective office and is participating in the Deferred Retirement
381	Option Program before July 1, 2009, is not subject to
382	termination as provided in s. 121.021(39)(b), or reemployment
383	limitations as provided in s. 121.091(9), until the end of his
384	or her current term of office or, if the officer is
385	consecutively elected or reelected to an elective office
386	eligible for coverage under the Florida Retirement System, until
387	he or she no longer holds such an elective office, as follows:
388	a.  At the end of the 60-month DROP period:
389	(I)  The officer's DROP account shall accrue no additional
390	monthly benefits, but shall continue to earn interest as
391	provided in s. 121.091(13).
392	(II)  No retirement contributions shall be required of the
393	employer of the elected officer and no additional retirement
394	credit shall be earned under the Florida Retirement System.
395	b.  Nothing herein shall prevent an elected officer from
396	voluntarily terminating his or her elective office at any time
397	and electing to receive his or her DROP proceeds. However, until
398	termination requirements are fulfilled as provided in s.
399	121.021(39), any elected officer whose termination limitations
400	are extended by this section shall be ineligible for renewed
401	membership in the system and shall receive no pension payments,
402	DROP lump sum payments, or any other state payment other than
403	the statutorily determined salary, travel, and per diem for the
404	elective office.
405	c.  Upon termination, the officer shall receive his or her
406	accumulated DROP account, plus interest, and shall accrue and
407	commence receiving monthly retirement benefits, which shall be
408	paid on a prospective basis only.
409
410	However, an officer electing to participate in the Deferred
411	Retirement Option Program on or before June 30, 2002, shall not
412	be required to terminate and shall remain subject to the
413	provisions of this subparagraph as adopted in section 1 of
414	chapter 2001-235, Laws of Florida.
415	(2)  Upon attaining his or her normal retirement date and
416	payment of the amount specified in paragraphs (1)(b) and (c)
417	(1)(a) and (b), and upon application to the administrator of the
418	intent to retire, the member shall receive a monthly benefit
419	under this section, in addition to any benefits already being
420	received, which shall commence on the last day of the month of
421	retirement and be payable on the last day of the month
422	thereafter during his or her lifetime. The amount of such
423	monthly benefit shall be the total percentage of retirement
424	credit purchased under this section multiplied by the member's
425	average monthly compensation as an elected officer, adjusted
426	according to the option selected at retirement under s.
427	121.091(6).
428	Section 6.  Paragraph (f) of subsection (1) and paragraph
429	(c) of subsection (6) of section 121.055, Florida Statutes, are
430	amended to read:
431	121.055  Senior Management Service Class.--There is hereby
432	established a separate class of membership within the Florida
433	Retirement System to be known as the "Senior Management Service
434	Class," which shall become effective February 1, 1987.
435	(1)
436	(f)  Effective July 1, 1997:
437	1.  Except as provided in subparagraph 3., any elected
438	state officer eligible for membership in the Elected Officers'
439	Class under s. 121.052(2)(a), (b), or (c) who elects membership
440	in the Senior Management Service Class under s. 121.052(3)(c)
441	may, within 6 months after assuming office or within 6 months
442	after this act becomes a law for serving elected state officers,
443	elect to participate in the Senior Management Service Optional
444	Annuity Program, as provided in subsection (6), in lieu of
445	membership in the Senior Management Service Class.
446	2.  Except as provided in subparagraph 3., any elected
447	county officer eligible for membership in the Elected Officers'
448	Class under s. 121.052(2)(d) who elects membership in the Senior
449	Management Service Class under s. 121.052(3)(c) may, within 6
450	months after assuming office, or within 6 months after this act
451	becomes a law for serving elected county officers, elect to
452	withdraw from the Florida Retirement System participate in a
453	lifetime monthly annuity program, as provided in subparagraph
454	(b)2., in lieu of membership in the Senior Management Service
455	Class.
456	3.  Any retiree of a state-administered retirement system
457	who is initially reemployed on or after July 1, 2009, as an
458	elected official eligible for Elected Officers' Class membership
459	shall not be eligible for renewed membership in the Senior
460	Management Service Optional Annuity Program as provided in
461	subsection (6) or to withdraw from the Florida Retirement System
462	as a renewed member as provided in subparagraph (b)2., as
463	applicable, in lieu of Senior Management Service Class
464	membership.
465	(6)
466	(c)  Participation.--
467	1.  Any eligible employee who is employed on or before
468	February 1, 1987, may elect to participate in the optional
469	annuity program in lieu of participation in the Senior
470	Management Service Class. Such election shall be made in writing
471	and filed with the department and the personnel officer of the
472	employer on or before May 1, 1987. Any eligible employee who is
473	employed on or before February 1, 1987, and who fails to make an
474	election to participate in the optional annuity program by May
475	1, 1987, shall be deemed to have elected membership in the
476	Senior Management Service Class.
477	2.  Except as provided in subparagraph 6., any employee who
478	becomes eligible to participate in the optional annuity program
479	by reason of initial employment commencing after February 1,
480	1987, may, within 90 days after the date of commencement of
481	employment, elect to participate in the optional annuity
482	program. Such election shall be made in writing and filed with
483	the personnel officer of the employer. Any eligible employee who
484	does not within 90 days after commencement of such employment
485	elect to participate in the optional annuity program shall be
486	deemed to have elected membership in the Senior Management
487	Service Class.
488	3.  A person who is appointed to a position in the Senior
489	Management Service Class and who is a member of an existing
490	retirement system or the Special Risk or Special Risk
491	Administrative Support Classes of the Florida Retirement System
492	may elect to remain in such system or class in lieu of
493	participation in the Senior Management Service Class or optional
494	annuity program. Such election shall be made in writing and
495	filed with the department and the personnel officer of the
496	employer within 90 days of such appointment. Any eligible
497	employee who fails to make an election to participate in the
498	existing system, the Special Risk Class of the Florida
499	Retirement System, the Special Risk Administrative Support Class
500	of the Florida Retirement System, or the optional annuity
501	program shall be deemed to have elected membership in the Senior
502	Management Service Class.
503	4.  Except as provided in subparagraph 5., an employee's
504	election to participate in the optional annuity program is
505	irrevocable as long as such employee continues to be employed in
506	an eligible position and continues to meet the eligibility
507	requirements set forth in this paragraph.
508	5.  Effective from July 1, 2002, through September 30,
509	2002, any active employee in a regularly established position
510	who has elected to participate in the Senior Management Service
511	Optional Annuity Program has one opportunity to choose to move
512	from the Senior Management Service Optional Annuity Program to
513	the Florida Retirement System defined benefit program.
514	a.  The election must be made in writing and must be filed
515	with the department and the personnel officer of the employer
516	before October 1, 2002, or, in the case of an active employee
517	who is on a leave of absence on July 1, 2002, within 90 days
518	after the conclusion of the leave of absence. This election is
519	irrevocable.
520	b.  The employee will receive service credit under the
521	defined benefit program of the Florida Retirement System equal
522	to his or her years of service under the Senior Management
523	Service Optional Annuity Program. The cost for such credit shall
524	be an amount representing the present value of that employee's
525	accumulated benefit obligation for the affected period of
526	service.
527	c.  The employee must transfer the total accumulated
528	employer contributions and earnings on deposit in his or her
529	Senior Management Service Optional Annuity Program account. If
530	the transferred amount is not sufficient to pay the amount due,
531	the employee must pay a sum representing the remainder of the
532	amount due. In no case may the employee retain any employer
533	contributions or earnings thereon from the Senior Management
534	Service Optional Annuity Program account.
535	6.  Any retiree of a state-administered retirement system
536	who is initially reemployed on or after July 1, 2009, shall not
537	be eligible for renewed membership in the Senior Management
538	Service Optional Annuity Program.
539	Section 7.  Paragraph (a) of subsection (6) of section
540	121.071, Florida Statutes, is amended to read:
541	121.071  Contributions.--Contributions to the system shall
542	be made as follows:
543	(6)(a)  Required employee contributions for all service
544	other than current service, including, but not limited to, prior
545	service, past service, military service, leave-of-absence
546	service, out-of-state service, and certain non-Florida
547	Retirement System in-state service, shall be paid by cash,
548	personal check, cashier's check, or money order, or a direct
549	rollover or transfer from a qualified plan as provided under the
550	Internal Revenue Code. The payment must only; shall be
551	accompanied by a statement identifying the service for which
552	payment is made,; and shall be made in a lump sum for the total
553	amount due or in annual payments of not less than $100, except
554	for the final payment if less than $100, unless another method
555	of payment is authorized by law or rule.
556	Section 8.  Paragraphs (f) and (h) of subsection (1) of
557	section 121.081, Florida Statutes, are amended to read:
558	121.081  Past service; prior service;
559	contributions.--Conditions under which past service or prior
560	service may be claimed and credited are:
561	(1)
562	(f)  If When any person, either prior to this act or
563	hereafter, becomes entitled to and participates does participate
564	in one of the retirement systems under consolidated within or
565	created by this chapter through the consolidation or merger of
566	governments or the transfer of functions between units of
567	government, either at the state or local level or between state
568	and local units, or through the assumption of functions or
569	activities by a state or local unit from an employing
570	governmental entity that which was not an employer under the
571	system, and such person becomes a member of the Florida
572	Retirement System, such person is shall be entitled to receive
573	past-service credit as defined in s. 121.021(18) for the time
574	the such person performed services for, and was an employee of,
575	such state or local unit or other governmental employing entity
576	prior to the transfer, merger, consolidation, or assumption of
577	functions and activities. Past-service credit allowed by this
578	paragraph is shall also be available to any person who becomes a
579	member of an existing system, as defined in s. 121.021(2), prior
580	to December 1, 1970, through the transfer, merger,
581	consolidation, or assumption of functions and activities set
582	forth in this paragraph and who subsequently becomes a member of
583	the Florida Retirement System. However, credit for the past
584	service may not be granted until contributions are made in the
585	manner provided in this subsection. If a person rejected Florida
586	Retirement System membership at the time of the transfer,
587	merger, or consolidation, or assumption the required
588	contributions shall be at total actuarial cost as specified in
589	paragraph (e). Such contributions or accrued interest may not be
590	paid from any public state funds.
591	(h)  The following provisions apply to the purchase of past
592	service:
593	1.  Notwithstanding any of the provisions of this
594	subsection, past-service credit may not be purchased under this
595	chapter for any service that is used to obtain a pension or
596	benefit from a any local retirement system. Eligibility to
597	receive or the receipt of contributions to a retirement plan
598	made by the employer on behalf of the employee is considered a
599	benefit.
600	2.  A member may not receive past service credit under
601	paragraphs (a), (b), (e), or (f) for any leaves of absence
602	without pay, except that credit for active military service
603	leaves of absence may be claimed under paragraphs (a), (b), and
604	(f), in accordance with s. 121.111(1).
605	3.  A member may not receive past service credit for co-
606	employer service. Co-employer service or a co-employer
607	relationship is employment in a single position simultaneously
608	covered and reported by both a public employer and a private
609	employer.
610	4.3.  If a member does not want desire to receive credit
611	for all of his or her past service, the period the member claims
612	must be the most recent past service prior to his or her
613	participation in the Florida Retirement System.
614	5.4.  The cost of past service purchased by an employing
615	agency for its employees may be amortized over the such period
616	of time as is provided in the agreement, but not to exceed 15
617	years, calculated in accordance with rule 60S-1.007(5)(f),
618	Florida Administrative Code.
619	6.5.  The retirement account of each member for whom past
620	service is being provided by his or her employer shall be
621	credited with all past service the employer agrees to purchase
622	as soon as the agreement between the employer and the department
623	is executed. Pursuant thereto:
624	a.  Each such member's account shall also be posted with
625	the total contribution his or her employer agrees to make on in
626	the member's behalf for past service earned prior to October 1,
627	1975, excluding those contributions representing the employer's
628	matching share and the compound interest calculation on the
629	total contribution. However, a portion of any contributions paid
630	by an employer for past service credit earned on and after
631	October 1, 1975, may not be posted to the a member's account.
632	b.  A refund of contributions payable after an employer has
633	made a written agreement to purchase past service for employees
634	of the covered group includes shall include contributions for
635	past service which are posted to a member's account. However,
636	contributions for past service earned on and after October 1,
637	1975, are not refundable.
638	Section 9.  Section 121.091, Florida Statutes, is amended
639	to read:
640	121.091  Benefits payable under the system.--Benefits may
641	not be paid under this section until the month after the member
642	has separated from employment as verified by the employer unless
643	the member has terminated employment as provided in s.
644	121.021(39)(a) or begun participation in the Deferred Retirement
645	Option Program as provided in subsection (13), and a proper
646	application has been filed in the manner prescribed by the
647	department. The department may cancel an application for
648	retirement benefits when the member or beneficiary fails to
649	timely provide the information and documents required by this
650	chapter and the department's rules. The department shall adopt
651	rules establishing procedures for application for retirement
652	benefits and for the cancellation of such application when the
653	required information or documents are not received. Benefits may
654	be paid after separation from employment and during the months
655	required to meet the definition of termination. The application
656	will be voided and all benefits received must be repaid to the
657	Florida Retirement System Trust Fund if the member fails to meet
658	the termination requirement of s. 121.021(39).
659	(1)  NORMAL RETIREMENT BENEFIT.--Upon attaining his or her
660	normal retirement date, the member, upon application to the
661	administrator, shall receive a monthly benefit which shall begin
662	to accrue on the first day of the month of retirement and be
663	payable on the last day of that month and each month thereafter
664	during his or her lifetime. The normal retirement benefit,
665	including any past or additional retirement credit, may not
666	exceed 100 percent of the average final compensation. The amount
667	of monthly benefit shall be calculated as the product of A and
668	B, subject to the adjustment of C, if applicable, as set forth
669	below:
670	(a)1.  For creditable years of Regular Class service, A is
671	1.60 percent of the member's average final compensation, up to
672	the member's normal retirement date. Upon completion of the
673	first year after the normal retirement date, A is 1.63 percent
674	of the member's average final compensation. Following the second
675	year after the normal retirement date, A is 1.65 percent of the
676	member's average final compensation. Following the third year
677	after the normal retirement date, and for subsequent years, A is
678	1.68 percent of the member's average final compensation.
679	2.  For creditable years of special risk service, A is:
680	a.  Two percent of the member's average final compensation
681	for all creditable years prior to October 1, 1974;
682	b.  Three percent of the member's average final
683	compensation for all creditable years after September 30, 1974,
684	and before October 1, 1978;
685	c.  Two percent of the member's average final compensation
686	for all creditable years after September 30, 1978, and before
687	January 1, 1989;
688	d.  Two and two-tenths percent of the member's final
689	monthly compensation for all creditable years after December 31,
690	1988, and before January 1, 1990;
691	e.  Two and four-tenths percent of the member's average
692	final compensation for all creditable years after December 31,
693	1989, and before January 1, 1991;
694	f.  Two and six-tenths percent of the member's average
695	final compensation for all creditable years after December 31,
696	1990, and before January 1, 1992;
697	g.  Two and eight-tenths percent of the member's average
698	final compensation for all creditable years after December 31,
699	1991, and before January 1, 1993;
700	h.  Three percent of the member's average final
701	compensation for all creditable years after December 31, 1992;
702	and
703	i.  Three percent of the member's average final
704	compensation for all creditable years of service after September
705	30, 1978, and before January 1, 1993, for any special risk
706	member who retires after July 1, 2000, or any member of the
707	Special Risk Administrative Support Class entitled to retain the
708	special risk normal retirement date who was a member of the
709	Special Risk Class during the time period and who retires after
710	July 1, 2000.
711	3.  For creditable years of Senior Management Service Class
712	service after January 31, 1987, A is 2 percent;
713	4.  For creditable years of Elected Officers' Class service
714	as a Supreme Court Justice, district court of appeal judge,
715	circuit judge, or county court judge, A is 31/3 percent of the
716	member's average final compensation, and for all other
717	creditable service in such class, A is 3 percent of average
718	final compensation;
719	(b)  B is the number of the member's years and any
720	fractional part of a year of creditable service earned
721	subsequent to November 30, 1970; and
722	(c)  C is the normal retirement benefit credit brought
723	forward as of November 30, 1970, by a former member of an
724	existing system. Such normal retirement benefit credit shall be
725	determined as the product of X and Y when X is the percentage of
726	average final compensation which the member would have been
727	eligible to receive if the member had attained his or her normal
728	retirement date as of November 30, 1970, all in accordance with
729	the existing system under which the member is covered on
730	November 30, 1970, and Y is average final compensation as
731	defined in s. 121.021(25). However, any member of an existing
732	retirement system who is eligible to retire and who does retire,
733	become disabled, or die prior to April 15, 1971, may have his or
734	her retirement benefits calculated on the basis of the best 5 of
735	the last 10 years of service.
736	(d)  A member's average final compensation shall be
737	determined by formula to obtain the coverage for the 5 highest
738	fiscal years' salaries, calculated as provided by rule.
739	(2)  BENEFITS PAYABLE FOR DUAL NORMAL RETIREMENT AGES.--If
740	a member accumulates retirement benefits to commence at
741	different normal retirement ages by virtue of having performed
742	duties for an employer which would entitle him or her to
743	benefits as both a member of the Special Risk Class and a member
744	of either the Regular Class, Senior Management Service Class, or
745	Elected Officers' Class, the amount of benefits payable shall be
746	computed separately with respect to each such age and the sum of
747	such computed amounts shall be paid as provided in this section.
748	(3)  EARLY RETIREMENT BENEFIT.--Upon retirement on his or
749	her early retirement date, the member shall receive an immediate
750	monthly benefit that shall begin to accrue on the first day of
751	the month of the retirement date and be payable on the last day
752	of that month and each month thereafter during his or her
753	lifetime. Such benefit shall be calculated as follows:
754	(a)  The amount of each monthly payment shall be computed
755	in the same manner as for a normal retirement benefit, in
756	accordance with subsection (1), but shall be based on the
757	member's average monthly compensation and creditable service as
758	of the member's early retirement date. The benefit so computed
759	shall be reduced by five-twelfths of 1 percent for each complete
760	month by which the early retirement date precedes the normal
761	retirement date of age 62 for a member of the Regular Class,
762	Senior Management Service Class, or the Elected Officers' Class,
763	and age 55 for a member of the Special Risk Class, or age 52 if
764	a Special Risk member has completed 25 years of creditable
765	service in accordance with s. 121.021(29)(b)3.
766	(b)  If the employment of a member is terminated by reason
767	of death subsequent to the completion of 20 years of creditable
768	service, the monthly benefit payable to the member's beneficiary
769	shall be calculated in accordance with subsection (1), but shall
770	be based on average monthly compensation and creditable service
771	as of the date of death. The benefit so computed shall be
772	reduced by five-twelfths of 1 percent for each complete month by
773	which death precedes the normal retirement date specified above
774	or the date on which the member would have attained 30 years of
775	creditable service had he or she survived and continued his or
776	her employment, whichever provides a higher benefit.
777	(4)  DISABILITY RETIREMENT BENEFIT.--
778	(a)  Disability retirement; entitlement and effective
779	date.--
780	1.a.  A member who becomes totally and permanently
781	disabled, as defined in paragraph (b), after completing 5 years
782	of creditable service, or a member who becomes totally and
783	permanently disabled in the line of duty regardless of service,
784	shall be entitled to a monthly disability benefit; except that
785	any member with less than 5 years of creditable service on July
786	1, 1980, or any person who becomes a member of the Florida
787	Retirement System on or after such date must have completed 10
788	years of creditable service prior to becoming totally and
789	permanently disabled in order to receive disability retirement
790	benefits for any disability which occurs other than in the line
791	of duty. However, if a member employed on July 1, 1980, with
792	less than 5 years of creditable service as of that date, becomes
793	totally and permanently disabled after completing 5 years of
794	creditable service and is found not to have attained fully
795	insured status for benefits under the federal Social Security
796	Act, such member shall be entitled to a monthly disability
797	benefit.
798	b.  Effective July 1, 2001, a member of the defined benefit
799	retirement program who becomes totally and permanently disabled,
800	as defined in paragraph (b), after completing 8 years of
801	creditable service, or a member who becomes totally and
802	permanently disabled in the line of duty regardless of service,
803	shall be entitled to a monthly disability benefit.
804	2.  If the division has received from the employer the
805	required documentation of the member's termination of
806	employment, the effective retirement date for a member who
807	applies and is approved for disability retirement shall be
808	established by rule of the division.
809	3.  For a member who is receiving Workers' Compensation
810	payments, the effective disability retirement date may not
811	precede the date the member reaches Maximum Medical Improvement
812	(MMI), unless the member terminates employment prior to reaching
813	MMI.
814	(b)  Total and permanent disability.--A member shall be
815	considered totally and permanently disabled if, in the opinion
816	of the administrator, he or she is prevented, by reason of a
817	medically determinable physical or mental impairment, from
818	rendering useful and efficient service as an officer or
819	employee.
820	(c)  Proof of disability.--The administrator, before
821	approving payment of any disability retirement benefit, shall
822	require proof that the member is totally and permanently
823	disabled as provided herein:
824	1.  Such proof shall include the certification of the
825	member's total and permanent disability by two licensed
826	physicians of the state and such other evidence of disability as
827	the administrator may require, including reports from vocational
828	rehabilitation, evaluation, or testing specialists who have
829	evaluated the applicant for employment. A member whose position
830	with an employer requires that the member work full time outside
831	this state in the United States may include certification by two
832	licensed physicians of the state where the member works.
833	2.  It must be documented that:
834	a.  The member's medical condition occurred or became
835	symptomatic during the time the member was employed in an
836	employee/employer relationship with his or her employer;
837	b.  The member was totally and permanently disabled at the
838	time he or she terminated covered employment; and
839	c.  The member has not been employed with any other
840	employer after such termination.
841	3.  If the application is for in-line-of-duty disability,
842	in addition to the requirements of subparagraph 2., it must be
843	documented by competent medical evidence that the disability was
844	caused by a job-related illness or accident which occurred while
845	the member was in an employee/employer relationship with his or
846	her employer.
847	4.  The unavailability of an employment position that the
848	member is physically and mentally capable of performing will not
849	be considered as proof of total and permanent disability.
850	(d)  Election on appeal.--A member whose application for
851	regular disability retirement has been denied and who has filed
852	an appeal to the State Retirement Commission may, if eligible,
853	elect to receive normal or early service retirement benefits
854	while he or she is awaiting the decision on the appeal. However:
855	1.  If the member elects to receive service retirement
856	benefits and disability benefits are later approved as a result
857	of the appeal, the payment option chosen by the member may not
858	be changed.
859	2.  If the member elects to receive early service
860	retirement and the appeal is later denied, the member may not
861	change his or her election of early retirement.
862
863	Before such regular or early retirement benefits may be paid by
864	the division, the member must provide to the division a written
865	statement indicating that the member understands that such
866	changes are not permitted after he or she begins receiving the
867	benefits.
868	(e)  Disability retirement benefit.--Upon the retirement of
869	a member on his or her disability retirement date, the member
870	shall receive a monthly benefit that shall begin to accrue on
871	the first day of the month of disability retirement and shall be
872	payable on the last day of that month and each month thereafter
873	during his or her lifetime and continued disability.
874	(f)  Computation of disability retirement benefit.--The
875	amount of each monthly payment shall be computed in the same
876	manner as for a normal retirement benefit, in accordance with
877	subsection (1), but shall be based on disability option
878	actuarial equivalency tables and the average monthly
879	compensation and creditable service of the member as of the
880	disability retirement date, subject to the following conditions:
881	1.  If the member's disability occurred in the line of
882	duty, the monthly Option 1 benefit shall not be less than:
883	a.  Forty-two percent of average monthly compensation as of
884	the disability retirement date; or
885	b.  Sixty-five percent of the average monthly compensation
886	as of the disability retirement date for a member of the special
887	risk class who retires on or after July 1, 2000; or
888	2.  If the member's disability occurred other than in the
889	line of duty, the monthly Option 1 benefit shall not be less
890	than 25 percent of average monthly compensation as of the
891	disability retirement date.
892	(g)  Reapplication.--A member, whose initial application
893	for disability retirement has been denied, may reapply for
894	disability benefits. However, such member's reapplication will
895	be considered only if the member presents new medical evidence
896	of a medical condition that existed prior to the member's
897	termination of employment. The division may prescribe by rule
898	procedures for reapplication and for review and approval or
899	disapproval of reapplication.
900	(h)  Recovery from disability.--The administrator may
901	require periodic reexaminations at the expense of the retirement
902	fund. The division may adopt rules establishing procedures for
903	conducting and review of such reexaminations.
904	1.  If the administrator finds that a member who is
905	receiving disability benefits is, at any time prior to his or
906	her normal retirement date, no longer disabled, the
907	administrator shall direct that the benefits be discontinued.
908	The decision of the administrator on this question shall be
909	final and binding. If such member:
910	a.  Does not reenter the employ of an employer and was not
911	vested as of the disability retirement date, he or she shall be
912	entitled to the excess, if any, of his or her accumulated
913	contributions over the total disability benefits received up to
914	the date of recovery.
915	b.  Does not reenter the employ of an employer, but was
916	vested as of the disability retirement date, he or she may elect
917	to receive:
918	(I)  The excess, if any, of his or her accumulated
919	contributions over the total disability benefits received up to
920	the date of recovery; or
921	(II)  A deferred benefit commencing on the last day of the
922	month of the normal retirement date which shall be payable on
923	the last day of the month thereafter during his or her lifetime.
924	The amount of such monthly benefit shall be computed in the same
925	manner as for a normal retirement benefit, in accordance with
926	subsection (1), but shall be based on average monthly
927	compensation and creditable service as of the member's
928	disability retirement date.
929	c.  Reenters employment of an employer within 6 months
930	after recovery, the member's service will be deemed to have been
931	continuous, but the period beginning with the first month for
932	which he or she received a disability benefit payment and ending
933	with the date he or she reentered employment will not be
934	considered as creditable service for the purpose of computing
935	benefits except as provided in sub-subparagraph d. As used in
936	this section, the term "accumulated contributions" for such
937	member means the excess of the member's accumulated
938	contributions as of the disability retirement date over the
939	total disability benefits received under paragraph (e).
940	d.  Terminates his or her disability benefit, reenters
941	covered employment, and is continuously employed for a minimum
942	of 1 year of creditable service, he or she may claim as
943	creditable service the months during which he or she was
944	receiving a disability benefit, upon payment of the required
945	contributions. Contributions shall equal the total required
946	employee and employer contribution rate applicable during the
947	period the retiree received retirement benefits, multiplied
948	times his or her rate of monthly compensation prior to the
949	commencement of disability retirement for each month of the
950	period claimed, plus 4 percent interest until July 1, 1975, and
951	6.5 percent interest thereafter, compounded annually each June
952	30 to the date of payment. If the member does not claim credit
953	for all of the months he or she received disability benefits,
954	the months claimed must be the most recent months of retirement.
955	Such credit for periods of disability, when purchased under the
956	Florida Retirement System, shall apply toward vesting
957	requirements for eligibility to purchase additional credit for
958	other service.
959	2.  Both the member receiving disability benefits who
960	reenters employment and the employer employing such disability
961	retiree shall notify the division immediately upon reemployment,
962	and the division shall terminate such member's disability
963	benefits, effective the first day of the month following the
964	month in which notification of recovery is received. If the
965	member is reemployed with a Florida Retirement System employer
966	at the time of benefit termination, and he or she has received
967	disability retirement benefit and salary payments concurrently
968	prior to notifying the division, he or she may elect within 30
969	days to:
970	a.  Retain the retirement benefits received prior to
971	termination of disability benefits and begin receiving
972	retirement service credit effective upon the date of termination
973	of benefits; or
974	b.  Repay, within 12 months after his or her decision to
975	receive service credit, the retirement benefits received for
976	each month of reemployment prior to termination of disability
977	benefits and begin receiving retirement service credit effective
978	upon the date of reemployment. Any such unpaid benefits shall
979	have compound interest of 6.5 percent added June 30.
980
981	A member may not receive both retirement service credit for
982	employment and retirement benefits for the same month.
983	3.  If, after recovery of disability and reentry into
984	covered employment, the member again becomes disabled and is
985	again approved for disability retirement, the Option 1 monthly
986	retirement benefit shall not be less than the Option 1 monthly
987	benefit calculated at the time of the previous disability, plus
988	any cost of living increases up to the time the disability
989	benefit was terminated upon his or her reentry into covered
990	employment.
991	(i)  Nonadmissible causes of disability.--A member shall
992	not be entitled to receive any disability retirement benefit if
993	the disability is a result of any of the following:
994	1.  Injury or disease sustained by the member while
995	willfully participating in a riot, civil insurrection, or other
996	act of violence or while committing a felony;
997	2.  Injury or disease sustained by the member after his or
998	her employment has terminated; or
999	3.  Intentional, self-inflicted injury.
1000	(j)  Disability retirement of justice or judge by order of
1001	Supreme Court.--
1002	1.  If a member is a justice of the Supreme Court, judge of
1003	a district court of appeal, circuit judge, or judge of a county
1004	court who has served for 6 years or more as an elected
1005	constitutional judicial officer, including service as a judicial
1006	officer in any court abolished pursuant to Art. V of the State
1007	Constitution, and who is retired for disability by order of the
1008	Supreme Court upon recommendation of the Judicial Qualifications
1009	Commission pursuant to the provisions of Art. V of the State
1010	Constitution, the member's Option 1 monthly benefit as provided
1011	in subparagraph (6)(a)1. shall not be less than two-thirds of
1012	his or her monthly compensation as of the member's disability
1013	retirement date. Such a member may alternatively elect to
1014	receive a disability retirement benefit under any other option
1015	as provided in paragraph (6)(a).
1016	2.  Should any justice or judge who is a member of the
1017	Florida Retirement System be retired for disability by order of
1018	the Supreme Court upon recommendation of the Judicial
1019	Qualifications Commission pursuant to the provisions of Art. V
1020	of the State Constitution, then all contributions to his or her
1021	account and all contributions made on his or her behalf by the
1022	employer shall be transferred to and deposited in the General
1023	Revenue Fund of the state, and there is hereby appropriated
1024	annually out of the General Revenue Fund, to be paid into the
1025	Florida Retirement System Fund, an amount necessary to pay the
1026	benefits of all justices and judges retired from the Florida
1027	Retirement System pursuant to Art. V of the State Constitution.
1028	(5)  TERMINATION BENEFITS.--A member whose employment is
1029	terminated prior to retirement retains membership rights to
1030	previously earned member-noncontributory service credit, and to
1031	member-contributory service credit, if the member leaves the
1032	member contributions on deposit in his or her retirement
1033	account. If a terminated member receives a refund of member
1034	contributions, such member may reinstate membership rights to
1035	the previously earned service credit represented by the refund
1036	by completing 1 year of creditable service and repaying the
1037	refunded member contributions, plus interest.
1038	(a)  A member whose employment is terminated for any reason
1039	other than death or retirement prior to becoming vested is
1040	entitled to the return of his or her accumulated contributions
1041	as of the date of termination.
1042	(b)  A member whose employment is terminated for any reason
1043	other than death or retirement after becoming vested may elect
1044	to receive a deferred monthly benefit which shall begin to
1045	accrue on the first day of the month of normal or early
1046	retirement and shall be payable on the last day of that month
1047	and each month thereafter during his or her lifetime. The amount
1048	of monthly benefit shall be computed in the same manner as for a
1049	normal retirement benefit in accordance with subsection (1) or
1050	early retirement benefit in accordance with s. 121.021(30), but
1051	based on average monthly compensation and creditable service as
1052	of the date of termination.
1053	(c)  In lieu of the deferred monthly benefit provided in
1054	paragraph (b), the terminated member may elect to receive a
1055	lump-sum amount equal to his or her accumulated contributions as
1056	of the date of termination.
1057	(d)  If any retired member dies without having received in
1058	benefit payments an amount equal to his or her accumulated
1059	contributions, there shall be payable to his or her designated
1060	beneficiary an amount equal to the excess, if any, of the
1061	member's accumulated contributions over the total monthly
1062	payments made to the member prior to the date of death.
1063	(e)  A member shall be deemed a terminated member when
1064	termination of employment has occurred as provided in s.
1065	121.021(39).
1066	(f)  Any member who has been found guilty by a verdict of a
1067	jury, or by the court trying the case without a jury, of
1068	committing, aiding, or abetting any embezzlement or theft from
1069	his or her employer, bribery in connection with the employment,
1070	or other felony specified in chapter 838, except ss. 838.15 and
1071	838.16, committed prior to retirement, or who has entered a plea
1072	of guilty or of nolo contendere to such crime, or any member
1073	whose employment is terminated by reason of the member's
1074	admitted commitment, aiding, or abetting of an embezzlement or
1075	theft from his or her employer, bribery, or other felony
1076	specified in chapter 838, except ss. 838.15 and 838.16, shall
1077	forfeit all rights and benefits under this chapter, except the
1078	return of his or her accumulated contributions as of the date of
1079	termination.
1080	(g)  Any elected official who is convicted by the Senate of
1081	an impeachable offense shall forfeit all rights and benefits
1082	under this chapter, except the return of his or her accumulated
1083	contributions as of the date of the conviction.
1084	(h)  Any member who, prior to retirement, is adjudged by a
1085	court of competent jurisdiction to have violated any state law
1086	against strikes by public employees, or who has been found
1087	guilty by such court of violating any state law prohibiting
1088	strikes by public employees, shall forfeit all rights and
1089	benefits under this chapter, except the return of his or her
1090	accumulated contributions as of the date of the conviction.
1091	(i)  Any beneficiary who by a verdict of a jury or by the
1092	court trying the case without a jury is found guilty, or who has
1093	entered a plea of guilty or nolo contendere, of unlawfully and
1094	intentionally killing or procuring the death of the member
1095	forfeits all rights to the deceased member's benefits under this
1096	chapter, and the benefits will be paid as if such beneficiary
1097	had predeceased the decedent.
1098	(j)  Benefits shall not be paid by the division pending
1099	final resolution of such charges against a member or beneficiary
1100	if the resolution of such charges could require the forfeiture
1101	of benefits as provided in paragraph (f), paragraph (g),
1102	paragraph (h), or paragraph (i).
1103	(6)  OPTIONAL FORMS OF RETIREMENT BENEFITS AND DISABILITY
1104	RETIREMENT BENEFITS.--
1105	(a)  Prior to the receipt of the first monthly retirement
1106	payment, a member shall elect to receive the retirement benefits
1107	to which he or she is entitled under subsection (1), subsection
1108	(2), subsection (3), or subsection (4) in accordance with one of
1109	the following options:
1110	1.  The maximum retirement benefit payable to the member
1111	during his or her lifetime.
1112	2.  A decreased retirement benefit payable to the member
1113	during his or her lifetime and, in the event of his or her death
1114	within a period of 10 years after retirement, the same monthly
1115	amount payable for the balance of such 10-year period to his or
1116	her beneficiary or, in case the beneficiary is deceased, in
1117	accordance with subsection (8) as though no beneficiary had been
1118	named.
1119	3.  A decreased retirement benefit payable during the joint
1120	lifetime of both the member and his or her joint annuitant and
1121	which, after the death of either, shall continue during the
1122	lifetime of the survivor in the same amount, subject to the
1123	provisions of subsection (12).
1124	4.  A decreased retirement benefit payable during the joint
1125	lifetime of the member and his or her joint annuitant and which,
1126	after the death of either, shall continue during the lifetime of
1127	the survivor in an amount equal to 662/3 percent of the amount
1128	that was payable during the joint lifetime of the member and his
1129	or her joint annuitant, subject to the provisions of subsection
1130	(12).
1131
1132	The spouse of any member who elects to receive the benefit
1133	provided under subparagraph 1. or subparagraph 2. shall be
1134	notified of and shall acknowledge any such election. The
1135	division shall establish by rule a method for selecting the
1136	appropriate actuarial factor for optional forms of benefits
1137	selected under subparagraphs 3. and 4., based on the age of the
1138	member and the joint annuitant.
1139	(b)  The benefit payable under any option stated above
1140	shall be the actuarial equivalent, based on tables adopted by
1141	the administrator for this purpose, of the amount to which the
1142	member was otherwise entitled.
1143	(c)  A member who elects the option in subparagraph (a)2.
1144	shall, in accordance with subsection (8), designate one or more
1145	persons to receive the benefits payable in the event of his or
1146	her death. Such persons shall be the beneficiaries of the
1147	member. The member may also designate one or more contingent
1148	beneficiaries to receive any benefits remaining upon the death
1149	of the primary beneficiary.
1150	(d)  A member who elects the option in subparagraph (a)3.
1151	or subparagraph (a)4. shall, on a form provided for that
1152	purpose, designate a joint annuitant to receive the benefits
1153	which continue to be payable upon the death of the member. After
1154	benefits have commenced under the option in subparagraph (a)3.
1155	or subparagraph (a)4., the following shall apply:
1156	1.  A retired member may change his or her designation of a
1157	joint annuitant only twice. If such a retired member desires to
1158	change his or her designation of a joint annuitant, he or she
1159	shall file with the division a notarized "change of joint
1160	annuitant" form and shall notify the former joint annuitant in
1161	writing of such change. Effective the first day of the next
1162	month following receipt by the division of a completed change of
1163	joint annuitant form, the division shall adjust the member's
1164	monthly benefit by the application of actuarial tables and
1165	calculations developed to ensure that the benefit paid is the
1166	actuarial equivalent of the present value of the member's
1167	current benefit. The consent of a retired member's first
1168	designated joint annuitant to any such change shall not be
1169	required. However, if either the member or the joint annuitant
1170	dies before the effective date of the request for change of
1171	joint annuitant, the requested change shall be void, and
1172	survivor benefits, if any, shall be paid as if no request had
1173	been made.
1174	2.  In the event of the dissolution of marriage of a
1175	retired member and a joint annuitant, such member may make an
1176	election to nullify the joint annuitant designation of the
1177	former spouse, unless there is an existing qualified domestic
1178	relations order preventing such action. The member shall file
1179	with the division a written, notarized nullification which shall
1180	be effective on the first day of the next month following
1181	receipt by the division. Benefits shall be paid as if the former
1182	spouse predeceased the member. A member who makes such an
1183	election may not reverse the nullification but may designate a
1184	new joint annuitant in accordance with subparagraph 1.
1185	(e)  The election of an option shall be null and void if
1186	the member dies before the effective date of retirement.
1187	(f)  A member who elects to receive benefits under the
1188	option in subparagraph (a)3. may designate one or more qualified
1189	persons, either a spouse or other dependent, as his or her joint
1190	annuitant to receive the benefits after the member's death in
1191	whatever proportion he or she so assigns to each person named as
1192	joint annuitant. The division shall adopt appropriate actuarial
1193	tables and calculations necessary to ensure that the benefit
1194	paid is the actuarial equivalent of the benefit to which the
1195	member is otherwise entitled under the option in subparagraph
1196	(a)1.
1197	(g)  Upon the death of a retired member or beneficiary
1198	receiving monthly benefits under this chapter, the monthly
1199	benefits shall be paid through the last day of the month of
1200	death and shall terminate, or be adjusted, if applicable, as of
1201	that date in accordance with the optional form of benefit
1202	selected at the time of retirement.
1203	(h)  The option selected or determined for payment of
1204	benefits as provided in this section shall be final and
1205	irrevocable at the time a benefit payment is cashed or deposited
1206	or credited to the Deferred Retirement Option Program as
1207	provided in subsection (13).
1208	(7)  DEATH BENEFITS.--
1209	(a)  If the employment of a member is terminated by reason
1210	of his or her death prior to being vested, except as provided in
1211	paragraph (f), there shall be payable to his or her designated
1212	beneficiary the member's accumulated contributions.
1213	(b)  If the employment of an active member who may or may
1214	not have applied for retirement is terminated by reason of his
1215	or her death subsequent to becoming vested and prior to his or
1216	her effective date of retirement, if established, it shall be
1217	assumed that the member retired as of the date of death in
1218	accordance with subsection (1) if eligible for normal retirement
1219	benefits, subsection (2) if eligible for benefits payable for
1220	dual normal retirement, or subsection (3) if eligible for early
1221	retirement benefits. Benefits payable to the designated
1222	beneficiary shall be as follows:
1223	1.  For a beneficiary who qualifies as a joint annuitant,
1224	the optional form of payment provided in accordance with
1225	subparagraph (6)(a)3. shall be paid for the joint annuitant's
1226	lifetime.
1227	2.  For a beneficiary who does not qualify as a joint
1228	annuitant, no continuing monthly benefit shall be paid and the
1229	beneficiary shall be entitled only to the return of the member's
1230	personal contributions. If there is no monetary interest in the
1231	member's retirement account for which such beneficiary is
1232	eligible, the beneficiary shall be the next named beneficiary
1233	or, if no other beneficiary is named, the beneficiary shall be
1234	the next eligible beneficiary according to subsection (8).
1235	(c)  If a retiring member dies on or after the effective
1236	date of retirement, but prior to a benefit payment being cashed
1237	or deposited, or credited to the Deferred Retirement Option
1238	Program, benefits shall be paid as follows:
1239	1.  For a designated beneficiary who qualifies as a joint
1240	annuitant, benefits shall be paid in the optional form of
1241	payment provided in subparagraph (6)(a)3. for the joint
1242	annuitant's lifetime or, if the member chose the optional form
1243	of payment provided in subparagraph (6)(a)2., the joint
1244	annuitant may select the form provided in either subparagraph
1245	(6)(a)2. or subparagraph (6)(a)3.
1246	2.  For a designated beneficiary who does not qualify as a
1247	joint annuitant, any benefits payable shall be paid as provided
1248	in the option selected by the member; or if the member has not
1249	selected an option, benefits shall be paid in the optional form
1250	of payment provided in subparagraph (6)(a)1.
1251	(d)  Notwithstanding any other provision in this chapter to
1252	the contrary, with the exception of the Deferred Retirement
1253	Option Program, as provided in subsection (13):
1254	1.  The surviving spouse of any member killed in the line
1255	of duty may receive a monthly pension equal to one-half of the
1256	monthly salary being received by the member at the time of death
1257	for the rest of the surviving spouse's lifetime or, if the
1258	member was vested, such surviving spouse may elect to receive a
1259	benefit as provided in paragraph (b). Benefits provided by this
1260	paragraph shall supersede any other distribution that may have
1261	been provided by the member's designation of beneficiary.
1262	2.  If the surviving spouse of a member killed in the line
1263	of duty dies, the monthly payments which would have been payable
1264	to such surviving spouse had such surviving spouse lived shall
1265	be paid for the use and benefit of such member's child or
1266	children under 18 years of age and unmarried until the 18th
1267	birthday of the member's youngest child.
1268	3.  If a member killed in the line of duty leaves no
1269	surviving spouse but is survived by a child or children under 18
1270	years of age, the benefits provided by subparagraph 1., normally
1271	payable to a surviving spouse, shall be paid for the use and
1272	benefit of such member's child or children under 18 years of age
1273	and unmarried until the 18th birthday of the member's youngest
1274	child.
1275	4.  The surviving spouse of a member whose benefit
1276	terminated because of remarriage shall have the benefit
1277	reinstated beginning July 1, 1993, at an amount that would have
1278	been payable had the benefit not been terminated.
1279	(e)  The surviving spouse or other dependent of any member,
1280	except a member who participated in the Deferred Retirement
1281	Option Program, whose employment is terminated by death shall,
1282	upon application to the administrator, be permitted to pay the
1283	required contributions for any service performed by the member
1284	which could have been claimed by the member at the time of his
1285	or her death. Such service shall be added to the creditable
1286	service of the member and shall be used in the calculation of
1287	any benefits which may be payable to the surviving spouse or
1288	other surviving dependent.
1289	(f)  Notwithstanding any other provisions in this chapter
1290	to the contrary and upon application to the administrator, an
1291	eligible joint annuitant, of a member whose employment is
1292	terminated by death within 1 year of such member satisfying the
1293	service requirements for vesting and retirement eligibility,
1294	shall be permitted to purchase only the additional service
1295	credit necessary to vest and qualify for retirement benefits,
1296	not to exceed a total of 1 year of credit, by one or a
1297	combination of the following methods:
1298	1.  Such eligible joint annuitant may use the deceased
1299	member's accumulated hours of annual, sick, and compensatory
1300	leave to purchase additional creditable service, on an hour by
1301	hour basis, provided that such deceased member's accumulated
1302	leave is sufficient to cover the additional months required. For
1303	each month of service credit needed prior to the final month,
1304	credit for the total number of work hours in that month must be
1305	purchased, using an equal number of the deceased member's
1306	accumulated leave hours. Service credit required for the final
1307	month in which the deceased member would have become vested
1308	shall be awarded upon the purchase of 1 hour of credit. Such
1309	eligible joint annuitant shall pay the contribution rate in
1310	effect for the period of time being claimed for the deceased
1311	member's class of membership, multiplied by such member's
1312	monthly salary at the time of death, plus 6.5 percent interest
1313	compounded annually. The accumulated leave payment used in the
1314	average final compensation shall not include that portion of the
1315	payment that represents any leave hours used in the purchase of
1316	such creditable service.
1317	2.  Such eligible joint annuitant may purchase additional
1318	months of creditable service for any periods of out-of-state
1319	service as provided in s. 121.1115, and in-state service as
1320	provided in s. 121.1122, that the deceased member would have
1321	been eligible to purchase prior to his or her death.
1322
1323	Service purchased under this paragraph shall be added to the
1324	creditable service of the member and used to vest for retirement
1325	eligibility, and shall be used in the calculation of any
1326	benefits which may be payable to the eligible joint annuitant.
1327	Any benefits paid in accordance with this paragraph shall only
1328	be made prospectively.
1329	(g)  Notwithstanding any other provisions in this chapter
1330	to the contrary, if any member who is vested dies and the
1331	surviving spouse receives a refund of the accumulated
1332	contributions made to the retirement trust fund, such spouse may
1333	pay to the Division of Retirement an amount equal to the sum of
1334	the amount of the deceased member's accumulated contributions
1335	previously refunded plus interest at 4 percent compounded
1336	annually each June 30 from the date of refund until July 1,
1337	1975, and 6.5 percent interest compounded annually thereafter,
1338	until full payment is made, and receive the monthly retirement
1339	benefit as provided in paragraph (b).
1340	(h)  The designated beneficiary who is the surviving spouse
1341	or other dependent of a member whose employment is terminated by
1342	death subsequent to becoming vested, but prior to actual
1343	retirement, may elect to receive a deferred monthly benefit as
1344	if the member had lived and had elected a deferred monthly
1345	benefit, as provided in paragraph (5)(b), calculated on the
1346	basis of the average final compensation and creditable service
1347	of the member at his or her death and the age the member would
1348	have attained on the commencement date of the deferred benefit
1349	elected by the beneficiary, paid in accordance with option 3 of
1350	paragraph (6)(a).
1351	(8)  DESIGNATION OF BENEFICIARIES.--
1352	(a)  Each member may, on a form provided for that purpose,
1353	signed and filed with the division, designate a choice of one or
1354	more persons, named sequentially or jointly, as his or her
1355	beneficiary who shall receive the benefits, if any, which may be
1356	payable in the event of the member's death pursuant to the
1357	provisions of this chapter. If no beneficiary is named in the
1358	manner provided above, or if no beneficiary designated by the
1359	member survives the member, the beneficiary shall be the spouse
1360	of the deceased, if living. If the member's spouse is not alive
1361	at his or her death, the beneficiary shall be the living
1362	children of the member. If no children survive, the beneficiary
1363	shall be the member's father or mother, if living; otherwise,
1364	the beneficiary shall be the member's estate. The beneficiary
1365	most recently designated by a member on a form or letter filed
1366	with the division shall be the beneficiary entitled to any
1367	benefits payable at the time of the member's death, except that
1368	benefits shall be paid as provided in paragraph (7)(d) when
1369	death occurs in the line of duty. Notwithstanding any other
1370	provisions in this subsection to the contrary, for a member who
1371	dies prior to his or her effective date of retirement on or
1372	after January 1, 1999, the spouse at the time of death shall be
1373	the member's beneficiary unless such member designates a
1374	different beneficiary as provided herein subsequent to the
1375	member's most recent marriage.
1376	(b)  A designated beneficiary of a retirement account for
1377	whom there is a monetary interest may disclaim his or her
1378	monetary interest as provided in chapter 739 and in accordance
1379	with division rules governing such disclaimers. Such disclaimer
1380	must be filed within 24 months after the event that created the
1381	interest, that is, the death of the member or annuitant.
1382	(c)  Notwithstanding the member's designation of benefits
1383	to be paid through a trust to a beneficiary that is a natural
1384	person as provided in s. 121.021(46), and notwithstanding the
1385	provisions of the trust, benefits shall be paid directly to the
1386	beneficiary if the person is no longer a minor or an
1387	incapacitated person as defined in s. 744.102.
1388	(9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
1389	(a)  Any person who is retired under this chapter, except
1390	under the disability retirement provisions of subsection (4),
1391	may be employed by an employer that does not participate in a
1392	state-administered retirement system and may receive
1393	compensation from that employment without limiting or
1394	restricting in any way the retirement benefits payable to that
1395	person.
1396	(b)1.  Any person who is retired under this chapter, except
1397	under the disability retirement provisions of subsection (4),
1398	may be reemployed by any private or public employer after
1399	retirement and receive retirement benefits and compensation from
1400	the his or her employer without limitation any limitations,
1401	except that the a person may not receive both a salary from
1402	reemployment with any agency participating in the Florida
1403	Retirement System and retirement benefits under this chapter for
1404	a period of 12 calendar months immediately after subsequent to
1405	the calendar month that termination is met as defined in s.
1406	121.021(39), except as provided in sub-subparagraph b. date of
1407	retirement. However, a DROP participant may shall continue
1408	employment and receive a salary during the period of
1409	participation in DROP the Deferred Retirement Option Program, as
1410	provided in subsection (13).
1411	2.  Any person to whom the limitation in subparagraph 1.
1412	applies who violates such reemployment limitation and who is
1413	reemployed with any agency participating in the Florida
1414	Retirement System after he or she has been retired and met the
1415	definition of termination in s. 121.021(39), but before
1416	completion of the 12-month limitation period must shall give
1417	timely notice of this fact in writing to the employer and to the
1418	Division of Retirement and shall have his or her retirement
1419	benefits suspended while employed during for the balance of the
1420	12-month limitation period unless the person exceeds the 780-
1421	hour limitation in subparagraph 4. or subparagraph 5. Any person
1422	employed in violation of this paragraph and any employing agency
1423	that which knowingly employs or appoints such person without
1424	notifying the division of Retirement to suspend retirement
1425	benefits are shall be jointly and severally liable for
1426	reimbursement to the retirement trust fund of any benefits paid
1427	during the reemployment limitation period. To avoid liability,
1428	the such employing agency must shall have a written statement
1429	from the retiree that he or she is not retired from a state-
1430	administered retirement system. Any retirement benefits received
1431	while reemployed during this reemployment limitation period must
1432	shall be repaid to the Florida Retirement System Trust Fund, and
1433	retirement benefits shall remain suspended until such repayment
1434	has been made. Benefits suspended beyond the reemployment
1435	limitation shall apply toward repayment of benefits received in
1436	violation of the reemployment limitation.
1437	3.  A district school board may reemploy a retired member
1438	as a substitute or hourly teacher, education paraprofessional,
1439	transportation assistant, bus driver, or food service worker on
1440	a noncontractual basis after he or she has been retired and met
1441	the definition of termination for 1 calendar month, in
1442	accordance with s. 121.021(39). A district school board may
1443	reemploy a retired member as instructional personnel, as defined
1444	in s. 1012.01(2)(a), on an annual contractual basis after he or
1445	she has been retired for 1 calendar month, in accordance with s.
1446	121.021(39). Any other retired member who is reemployed before
1447	meeting the definition of termination voids within 1 calendar
1448	month after retirement shall void his or her application for
1449	retirement benefits. District school boards reemploying such
1450	teachers, education paraprofessionals, transportation
1451	assistants, bus drivers, or food service workers are subject to
1452	the retirement contribution required by subparagraph 9. 7.
1453	4.  A community college board of trustees may reemploy a
1454	retired member as an adjunct instructor, that is, an instructor
1455	who is noncontractual and part-time, or as a participant in a
1456	phased retirement program within the Florida Community College
1457	System, after he or she has been retired and met the definition
1458	of termination for 1 calendar month, in accordance with s.
1459	121.021(39). Any retired member who is reemployed before meeting
1460	the definition of termination voids within 1 calendar month
1461	after retirement shall void his or her application for
1462	retirement benefits. Boards of trustees reemploying such
1463	instructors are subject to the retirement contribution required
1464	in subparagraph 7. A retired member may be reemployed as an
1465	adjunct instructor for no more than 780 hours during the first
1466	12 calendar months after meeting the definition of termination
1467	of retirement. Any retired member reemployed for more than 780
1468	hours during the 12-month limitation period must first 12 months
1469	of retirement shall give timely notice in writing to the
1470	employer and to the Division of Retirement of the date he or she
1471	will exceed the limitation. The division shall suspend his or
1472	her retirement benefits for the remainder of the 12-month
1473	limitation period first 12 months of retirement. Any person
1474	employed in violation of this subparagraph and any employing
1475	agency that which knowingly employs or appoints such person
1476	without notifying the division of Retirement to suspend
1477	retirement benefits are shall be jointly and severally liable
1478	for reimbursement to the retirement trust fund of any benefits
1479	paid during the reemployment limitation period. To avoid
1480	liability, the such employing agency must shall have a written
1481	statement from the retiree that he or she is not retired from a
1482	state-administered retirement system. Any retirement benefits
1483	received by a retired member while reemployed in excess of 780
1484	hours during the 12-month limitation period must first 12 months
1485	of retirement shall be repaid to the Florida Retirement System
1486	Trust Fund, and retirement benefits shall remain suspended until
1487	repayment is made. Benefits suspended beyond the end of the 12-
1488	month limitation period retired member's first 12 months of
1489	retirement shall apply toward repayment of benefits received in
1490	violation of the 780-hour reemployment limitation.
1491	5.  The State University System may reemploy a retired
1492	member as an adjunct faculty member or as a participant in a
1493	phased retirement program within the State University System
1494	after the retired member has met the definition of termination
1495	been retired for 1 calendar month, in accordance with s.
1496	121.021(39). A Any retired member who is reemployed before
1497	meeting the definition of termination voids within 1 calendar
1498	month after retirement shall void his or her application for
1499	retirement benefits. The State University System is subject to
1500	the retired contribution required in subparagraph 9. 7., as
1501	appropriate. A retired member may be reemployed as an adjunct
1502	faculty member or a participant in a phased retirement program
1503	for no more than 780 hours during the first 12 calendar months
1504	after meeting the definition of termination of his or her
1505	retirement. Any retired member reemployed for more than 780
1506	hours during the 12-month limitation period first 12 months of
1507	retirement shall give timely notice in writing to the employer
1508	and to the Division of Retirement of the date he or she will
1509	exceed the limitation. The division shall suspend his or her
1510	retirement benefits for the remainder of the 12-month limitation
1511	period first 12 months of retirement. Any person employed in
1512	violation of this subparagraph and any employing agency that
1513	which knowingly employs or appoints such person without
1514	notifying the division of Retirement to suspend retirement
1515	benefits are shall be jointly and severally liable for
1516	reimbursement to the retirement trust fund of any benefits paid
1517	during the reemployment limitation period. To avoid liability,
1518	such employing agency must shall have a written statement from
1519	the retiree that he or she is not retired from a state-
1520	administered retirement system. Any retirement benefits received
1521	by a retired member while reemployed in excess of 780 hours
1522	during the 12-month limitation period must first 12 months of
1523	retirement shall be repaid to the Florida Retirement System
1524	Trust Fund, and retirement benefits shall remain suspended until
1525	repayment is made. Benefits suspended beyond the end of the
1526	retired member's 12-month limitation period first 12 months of
1527	retirement shall apply toward repayment of benefits received in
1528	violation of the 780-hour reemployment limitation.
1529	6.  The Board of Trustees of the Florida School for the
1530	Deaf and the Blind may reemploy a retired member as a substitute
1531	teacher, substitute residential instructor, or substitute nurse
1532	on a noncontractual basis after he or she has met the definition
1533	of termination been retired for 1 calendar month, in accordance
1534	with s. 121.021(39). The Board of Trustees of the Florida School
1535	for the Deaf and the Blind may reemploy a retired member as
1536	instructional personnel, as defined in s. 1012.01(2)(a), on an
1537	annual contractual basis after he or she has been retired and
1538	met the definition of termination in s. 121.021(39). Any retired
1539	member who is reemployed before meeting the definition of
1540	termination voids within 1 calendar month after retirement shall
1541	void his or her application for retirement benefits. The Board
1542	of Trustees of the Florida School for the Deaf and the Blind
1543	reemploying such teachers, residential instructors, or nurses is
1544	subject to the retirement contribution required by subparagraph
1545	9. 7. Reemployment of a retired member as a substitute teacher,
1546	substitute residential instructor, or substitute nurse is
1547	limited to 780 hours during the first 12 months of his or her
1548	retirement. Any retired member reemployed for more than 780
1549	hours during the first 12 months of retirement shall give timely
1550	notice in writing to the employer and to the division of the
1551	date he or she will exceed the limitation. The division shall
1552	suspend his or her retirement benefits for the remainder of the
1553	first 12 months of retirement. Any person employed in violation
1554	of this subparagraph and any employing agency which knowingly
1555	employs or appoints such person without notifying the Division
1556	of Retirement to suspend retirement benefits shall be jointly
1557	and severally liable for reimbursement to the retirement trust
1558	fund of any benefits paid during the reemployment limitation
1559	period. To avoid liability, such employing agency shall have a
1560	written statement from the retiree that he or she is not retired
1561	from a state-administered retirement system. Any retirement
1562	benefits received by a retired member while reemployed in excess
1563	of 780 hours during the first 12 months of retirement shall be
1564	repaid to the Retirement System Trust Fund, and his or her
1565	retirement benefits shall remain suspended until payment is
1566	made. Benefits suspended beyond the end of the retired member's
1567	first 12 months of retirement shall apply toward repayment of
1568	benefits received in violation of the 780-hour reemployment
1569	limitation.
1570	7.  A developmental research school may reemploy a retired
1571	member as a substitute or hourly teacher or an education
1572	paraprofessional, as defined in s. 1012.01(2), on a
1573	noncontractual basis after he or she has been retired and met
1574	the definition of termination in s. 121.021(39). A developmental
1575	research school may reemploy a retired member as instructional
1576	personnel, as defined in s. 1012.01(2)(a), on an annual
1577	contractual basis after he or she has been retired and met the
1578	definition of termination in s. 121.021(39). Any other retired
1579	member who is reemployed within 12 calendar months after
1580	retirement voids his or her application for retirement benefits.
1581	A developmental research school that reemploys retired teachers
1582	and education paraprofessionals is subject to the retirement
1583	contribution required by subparagraph 9.
1584	8.  A charter school may reemploy a retired member as a
1585	substitute or hourly teacher on a noncontractual basis after he
1586	or she has been retired and met the definition of termination in
1587	s. 121.021(39). A charter school may reemploy a retired member
1588	as instructional personnel, as defined in s. 1012.01(2)(a), on
1589	an annual contractual basis after he or she has been retired and
1590	met the definition of termination in s. 121.021(39). Any other
1591	retired member who is reemployed within 12 calendar months after
1592	retirement voids his or her application for retirement benefits.
1593	A charter school that reemploys such teachers is subject to the
1594	retirement contribution required by subparagraph 9.
1595	9.a.7.  The employment by an employer of a any retiree or
1596	DROP participant of a any state-administered retirement system
1597	does not affect shall have no effect on the average final
1598	compensation or years of creditable service of the retiree or
1599	DROP participant.
1600	b.  Prior to July 1, 1991, and for initial enrollment as a
1601	renewed member through June 30, 2009, upon employment of any
1602	person, other than an elected officer as provided in s. 121.053,
1603	who is has been retired under a any state-administered
1604	retirement program, the employer shall pay retirement
1605	contributions in an amount equal to the unfunded actuarial
1606	liability portion of the employer contribution which would be
1607	required for regular members of the Florida Retirement System.
1608	Effective July 1, 1991, contributions shall be made as provided
1609	in s. 121.122 for retirees who have with renewed membership or,
1610	as provided in subsection (13), for with respect to DROP
1611	participants.
1612	c.  Any person who is retired under a state-administered
1613	retirement program and who is initially reemployed on or after
1614	July 1, 2009, may not renew membership in the Florida Retirement
1615	System. The employer shall pay retirement contributions in an
1616	amount equal to the unfunded actuarial liability portion of the
1617	employer contribution that would be required for active members
1618	of the Florida Retirement System in addition to the
1619	contributions required by s. 121.76.
1620	10.8.  Any person who has previously retired and who is
1621	holding an elective public office or an appointment to an
1622	elective public office initially eligible for the Elected
1623	Officers' Class on or after July 1, 1990, through June 30, 2009,
1624	shall be enrolled in the Florida Retirement System as provided
1625	in s. 121.053(1)(c)(b) or, if holding an elective public office
1626	that does not qualify for the Elected Officers' Class on or
1627	after July 1, 1991, through June 30, 2009, shall be enrolled in
1628	the Florida Retirement System as provided in s. 121.122, and
1629	shall continue to receive retirement benefits as well as
1630	compensation for the elected officer's service for as long as he
1631	or she remains in elective office. However, any retired member
1632	who served in an elective office prior to July 1, 1990,
1633	suspended his or her retirement benefit, and had his or her
1634	Florida Retirement System membership reinstated shall, upon
1635	retirement from such office, have his or her retirement benefit
1636	recalculated to include the additional service and compensation
1637	earned.
1638	b.  Any person who has retired and who is holding an
1639	elective public office or an appointment to an elective public
1640	office initially eligible for the Elected Officers' Class on or
1641	after July 1, 2009, shall not be enrolled in the Florida
1642	Retirement System as provided in s. 121.053(1)(c) or, if holding
1643	an elective public office that does not qualify for the Elected
1644	Officers' Class and is initially eligible on or after July 1,
1645	2009, shall not be enrolled in the Florida Retirement System as
1646	provided in s. 121.122, and shall not continue to receive
1647	retirement benefits during the first 12 calendar months after
1648	meeting the definition of termination in s. 121.021(39).
1649	11.a.9.  Any person who is holding an elective public
1650	office which is covered by the Florida Retirement System and who
1651	is concurrently employed in nonelected covered employment before
1652	July 1, 2009, may elect to retire while continuing employment in
1653	the elective public office, if provided that he or she
1654	terminates shall be required to terminate his or her nonelected
1655	covered employment. Any person who exercises this election shall
1656	receive his or her retirement benefits in addition to the
1657	compensation of the elective office without regard to the time
1658	limitations otherwise provided in this subsection. A No person
1659	who seeks to exercise the provisions of this subparagraph, as
1660	they the same existed prior to May 3, 1984, may not shall be
1661	deemed to be retired under those provisions, unless such person
1662	is eligible to retire under the provisions of this subparagraph,
1663	as amended by chapter 84-11, Laws of Florida.
1664	b.  Any person who is holding an elective public office
1665	which is covered by the Florida Retirement System and who is
1666	concurrently employed in nonelected covered employment on or
1667	after July 1, 2009, may not elect to retire while continuing
1668	employment in the elective public office. Such person must meet
1669	the definition of termination in s. 121.021(39) and is subject
1670	to the limitations provided in this section.
1671	12.10.  The limitations of this paragraph apply to
1672	reemployment in any capacity with an "employer" as defined in s.
1673	121.021(10), irrespective of the category of funds from which
1674	the person is compensated.
1675	13.  The limitations of this paragraph apply to
1676	reemployment in any capacity with an employer, as defined in s.
1677	121.021, irrespective of the category of funds from which the
1678	person is compensated.
1679	14.  The reemployment after retirement provisions of this
1680	paragraph apply to DROP participants effective upon termination
1681	from employment and the end of DROP participation.
1682	11.  An employing agency may reemploy a retired member as a
1683	firefighter or paramedic after the retired member has been
1684	retired for 1 calendar month, in accordance with s. 121.021(39).
1685	Any retired member who is reemployed within 1 calendar month
1686	after retirement shall void his or her application for
1687	retirement benefits. The employing agency reemploying such
1688	firefighter or paramedic is subject to the retired contribution
1689	required in subparagraph 8. Reemployment of a retired
1690	firefighter or paramedic is limited to no more than 780 hours
1691	during the first 12 months of his or her retirement. Any retired
1692	member reemployed for more than 780 hours during the first 12
1693	months of retirement shall give timely notice in writing to the
1694	employer and to the Division of the date he or she will exceed
1695	the limitation. The division shall suspend his or her retirement
1696	benefits for the remainder of the first 12 months of retirement.
1697	Any person employed in violation of this subparagraph and any
1698	employing agency which knowingly employs or appoints such person
1699	without notifying the division of Retirement to suspend
1700	retirement benefits shall be jointly and severally liable for
1701	reimbursement to the Retirement System Trust Fund of any
1702	benefits paid during the reemployment limitation period. To
1703	avoid liability, such employing agency shall have a written
1704	statement from the retiree that he or she is not retired from a
1705	state-administered retirement system. Any retirement benefits
1706	received by a retired member while reemployed in excess of 780
1707	hours during the first 12 months of retirement shall be repaid
1708	to the Retirement System Trust Fund, and retirement benefits
1709	shall remain suspended until repayment is made. Benefits
1710	suspended beyond the end of the retired member's first 12 months
1711	of retirement shall apply toward repayment of benefits received
1712	in violation of the 780-hour reemployment
1713	limitation.
1714	(c)  The provisions of this subsection apply to retirees,
1715	as defined in s. 121.4501(2)(j), of the Public Employee Optional
1716	Retirement Program created in part II, subject to the following
1717	conditions:
1718	1.  Such retirees may not be reemployed with an employer
1719	participating in the Florida Retirement System as provided in
1720	paragraph (b) until such person has been retired for 12 3
1721	calendar months, unless the participant has reached the normal
1722	retirement requirements of the defined benefit plan as provided
1723	in s. 121.021(29).
1724	2.  Such retiree employed in violation of this subsection
1725	and any employing agency that knowingly employs or appoints such
1726	person shall be jointly and severally liable for reimbursement
1727	of any benefits paid to the retirement trust fund from which the
1728	benefits were paid, including the Retirement System Trust Fund
1729	and the Public Employee Optional Retirement Program Trust Fund,
1730	as appropriate. To avoid liability, such employing agency must
1731	have a written statement from the retiree that he or she is not
1732	retired from a state-administered retirement system.
1733	(d)  Notwithstanding any other provision in this section, a
1734	member of the Special Risk Class who is employed as a law
1735	enforcement officer, correctional officer, or community-based
1736	correctional probation officer, as described in s. 121.0515(2),
1737	and who has a rank or the equivalent rank of captain or below,
1738	at the conclusion of his or her participation in DROP, may not
1739	be employed, reemployed, or retained in a contractual capacity
1740	by the same employing agency from which the member retired;
1741	however, the member may be retained by the employing agency as a
1742	part-time or auxiliary law enforcement officer, as those terms
1743	are defined in s. 943.10, if the member is serving on a
1744	voluntary basis and receives no more than $1 per calendar year
1745	in remuneration for services rendered directly for the employing
1746	agency. Any person who is reemployed or retained in a
1747	contractual capacity in violation of this paragraph shall void
1748	his or her application for retirement benefits. Any person who
1749	violates this paragraph and any employing agency that knowingly
1750	employs or contracts with such person in violation of this
1751	paragraph is jointly and severally liable for reimbursement to
1752	the Florida Retirement System Trust Fund for any retirement
1753	benefits improperly paid during the reemployment or contractual
1754	period. This paragraph does not otherwise limit the employment
1755	or contractual opportunities for a retiree at any other
1756	employing agency. This paragraph does not apply to a retiree who
1757	is elected to an office or appointed to an office by the
1758	Governor or by the Governor and Cabinet.
1759	(e)1.  For purposes of this paragraph, the term "member"
1760	means a person who:
1761	a.  Retired from employment with an employer;
1762	b.  Was a member of the Senior Management Service Class or
1763	was a member of the Special Risk Class and held the rank or
1764	equivalent rank of captain or above, upon retirement or at the
1765	end of DROP participation; and
1766	c.  Was reemployed during months 2 through 12 by the same
1767	employer from which the member retired.
1768	2.  For the period July 1, 2005, to December 31, 2008, any
1769	employer who reemployed a member in months 2 through 12 of
1770	retirement must certify to the Governor, the President of the
1771	Senate, and the Speaker of the House of Representatives the
1772	following information on each reemployed member no later than
1773	March 1, 2009:
1774	a.  The date the member notified the employer that he or
1775	she intended to retire or enter DROP.
1776	b.  The date the member provided as his or her date for
1777	retirement or DROP participation dates.
1778	c.  How much time the employer had to plan for that
1779	member's upcoming retirement and to recruit and train a person
1780	to take over the member's job responsibilities prior to that
1781	member's retirement date.
1782	d.  Why the employer failed to plan for that member's
1783	upcoming retirement and to recruit and train another person to
1784	take over the member's job responsibilities prior to that
1785	member's retirement date.
1786	3.  On or after January 1, 2009, any employer who reemploys
1787	a member in months 2 through 12 of retirement must certify to
1788	the Governor, the President of the Senate, and the Speaker of
1789	the House of Representatives the following information on each
1790	reemployed member within 30 days of reemployment:
1791	a.  The date the member notified the employer that he or
1792	she intended to retire or enter DROP.
1793	b.  The date the member provided as his or her date for
1794	retirement or DROP participation dates.
1795	c.  How much time the employer had to plan for that
1796	member's upcoming retirement and to recruit and train a person
1797	to take over the member's job responsibilities prior to that
1798	member's retirement date.
1799	d.  Why the employer failed to plan for that member's
1800	upcoming retirement and to recruit and train another person to
1801	take over the member's job responsibilities prior to that
1802	member's retirement date.
1803	(10)  FUTURE BENEFITS BASED ON ACTUARIAL DATA.--It is the
1804	intent of the Legislature that future benefit increases enacted
1805	into law in this chapter shall be financed concurrently by
1806	increased contributions or other adequate funding, and such
1807	funding shall be based on sound actuarial data as developed by
1808	the actuary or state retirement actuary, as provided in ss.
1809	121.021(6) and 121.192.
1810	(11)  A member who becomes eligible to retire and has
1811	accumulated the maximum benefit of 100 percent of average final
1812	compensation may continue in active service, and, if upon the
1813	member's retirement the member elects to receive a retirement
1814	compensation pursuant to subsection (2), subsection (6), or
1815	subsection (7), the actuarial equivalent percentage factor
1816	applicable to the age of such member at the time the member
1817	reached the maximum benefit and to the age, at that time, of the
1818	member's spouse shall determine the amount of benefits to be
1819	paid.
1820	(12)  SPECIAL PROVISIONS FOR PAYMENT OF CERTAIN SURVIVOR
1821	BENEFITS.--Notwithstanding any provision of this chapter to the
1822	contrary, for members with an effective date of retirement, or
1823	date of death if prior to retirement, on or after January 1,
1824	1996, the named joint annuitant, as defined in s.
1825	121.021(28)(b), who is eligible to receive benefits under
1826	subparagraph (6)(a)3. or subparagraph (6)(a)4., shall receive
1827	the maximum monthly retirement benefit that would have been
1828	payable to the member under subparagraph (6)(a)1.; however,
1829	payment of such benefit shall cease the month the joint
1830	annuitant attains age 25 unless such joint annuitant is disabled
1831	and incapable of self-support, in which case, benefits shall
1832	cease when the joint annuitant is no longer disabled. The
1833	administrator may require proof of disability or continued
1834	disability in the same manner as is provided for a member
1835	seeking or receiving a disability retirement benefit under
1836	subsection (4).
1837	(13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
1838	subject to the provisions of this section, the Deferred
1839	Retirement Option Program, hereinafter referred to as the DROP,
1840	is a program under which an eligible member of the Florida
1841	Retirement System may elect to participate, deferring receipt of
1842	retirement benefits while continuing employment with his or her
1843	Florida Retirement System employer. The deferred monthly
1844	benefits shall accrue in the System Trust Fund on behalf of the
1845	participant, plus interest compounded monthly, for the specified
1846	period of the DROP participation, as provided in paragraph (c).
1847	Upon termination of employment as required in s. 121.021(39)(b),
1848	the participant shall receive the total DROP benefits and begin
1849	to receive the previously determined normal retirement benefits.
1850	Participation in the DROP does not guarantee employment for the
1851	specified period of DROP. Participation in the DROP by an
1852	eligible member beyond the initial 60-month period as authorized
1853	in this subsection shall be on an annual contractual basis for
1854	all participants.
1855	(a)  Eligibility of member to participate in the DROP.--All
1856	active Florida Retirement System members in a regularly
1857	established position, and all active members of either the
1858	Teachers' Retirement System established in chapter 238 or the
1859	State and County Officers' and Employees' Retirement System
1860	established in chapter 122, which systems are consolidated
1861	within the Florida Retirement System under s. 121.011, are
1862	eligible to elect participation in the DROP if provided that:
1863	1.  The member is not a renewed member of the Florida
1864	Retirement System under s. 121.122, or a member or renewed
1865	member of the State Community College System Optional Retirement
1866	Program under s. 121.051, the Senior Management Service Optional
1867	Annuity Program under s. 121.055, or the optional retirement
1868	program for the State University System under s. 121.35.
1869	2.  Except as provided in subparagraph 6., election to
1870	participate is made within 12 months immediately following the
1871	date on which the member first reaches normal retirement date,
1872	or, for a member who reaches normal retirement date based on
1873	service before he or she reaches age 62, or age 55 for Special
1874	Risk Class members, election to participate may be deferred to
1875	the 12 months immediately following the date the member attains
1876	57, or age 52 for Special Risk Class members. For a member who
1877	first reached normal retirement date or the deferred eligibility
1878	date described above prior to the effective date of this
1879	section, election to participate shall be made within 12 months
1880	after the effective date of this section. A member who fails to
1881	make an election within the such 12-month limitation period
1882	forfeits shall forfeit all rights to participate in the DROP.
1883	The member shall advise his or her employer and the division in
1884	writing of the date on which the DROP begins shall begin. The
1885	Such beginning date may be subsequent to the 12-month election
1886	period, but must be within the original 60-month participation
1887	or, with respect to members who are instructional personnel
1888	employed by the Florida School for the Deaf and the Blind and
1889	who have received authorization by the Board of Trustees of the
1890	Florida School for the Deaf and the Blind to participate in the
1891	DROP beyond 60 months, or who are instructional personnel as
1892	defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
1893	received authorization by the district school superintendent to
1894	participate in the DROP beyond 60 months, the 96-month
1895	limitation period as provided in subparagraph (b)1. When
1896	establishing eligibility of the member to participate in the
1897	DROP for the 60-month or, with respect to members who are
1898	instructional personnel employed by the Florida School for the
1899	Deaf and the Blind and who have received authorization by the
1900	Board of Trustees of the Florida School for the Deaf and the
1901	Blind to participate in the DROP beyond 60 months, or who are
1902	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
1903	grades K-12 and who have received authorization by the district
1904	school superintendent to participate in the DROP beyond 60
1905	months, the 96-month maximum participation period, the member
1906	may elect to include or exclude any optional service credit
1907	purchased by the member from the total service used to establish
1908	the normal retirement date. A member who has with dual normal
1909	retirement dates is shall be eligible to elect to participate in
1910	DROP within 12 months after attaining normal retirement date in
1911	either class.
1912	3.  The employer of a member electing to participate in the
1913	DROP, or employers if dually employed, shall acknowledge in
1914	writing to the division the date the member's participation in
1915	the DROP begins and the date the member's employment and DROP
1916	participation will terminate.
1917	4.  Simultaneous employment of a participant by additional
1918	Florida Retirement System employers subsequent to the
1919	commencement of participation in the DROP is shall be
1920	permissible if provided such employers acknowledge in writing a
1921	DROP termination date no later than the participant's existing
1922	termination date or the maximum participation 60-month
1923	limitation period as provided in subparagraph (b)1.
1924	5.  A DROP participant may change employers while
1925	participating in the DROP, subject to the following:
1926	a.  A change of employment must take place without a break
1927	in service so that the member receives salary for each month of
1928	continuous DROP participation. If a member receives no salary
1929	during a month, DROP participation shall cease unless the
1930	employer verifies a continuation of the employment relationship
1931	for such participant pursuant to s. 121.021(39)(b).
1932	b.  Such participant and new employer shall notify the
1933	division of the identity of the new employer on forms required
1934	by the division as to the identity of the new employer.
1935	c.  The new employer shall acknowledge, in writing, the
1936	participant's DROP termination date, which may be extended but
1937	not beyond the original 60-month maximum participation or, with
1938	respect to members who are instructional personnel employed by
1939	the Florida School for the Deaf and the Blind and who have
1940	received authorization by the Board of Trustees of the Florida
1941	School for the Deaf and the Blind to participate in the DROP
1942	beyond 60 months, or who are instructional personnel as defined
1943	in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
1944	authorization by the district school superintendent to
1945	participate in the DROP beyond 60 months, the 96-month period
1946	provided in subparagraph (b)1., shall acknowledge liability for
1947	any additional retirement contributions and interest required if
1948	the participant fails to timely terminate employment, and is
1949	shall be subject to the adjustment required in sub-subparagraph
1950	(c)5.d.
1951	6.  Effective July 1, 2001, for instructional personnel as
1952	defined in s. 1012.01(2), election to participate in the DROP
1953	may shall be made at any time following the date on which the
1954	member first reaches normal retirement date. The member shall
1955	advise his or her employer and the division in writing of the
1956	date on which DROP begins the Deferred Retirement Option Program
1957	shall begin. When establishing eligibility of the member to
1958	participate in the DROP for the 60-month or, with respect to
1959	members who are instructional personnel employed by the Florida
1960	School for the Deaf and the Blind and who have received
1961	authorization by the Board of Trustees of the Florida School for
1962	the Deaf and the Blind to participate in the DROP beyond 60
1963	months, or who are instructional personnel as defined in s.
1964	1012.01(2)(a)-(d) in grades K-12 and who have received
1965	authorization by the district school superintendent to
1966	participate in the DROP beyond 60 months, the 96-month maximum
1967	participation period, as provided in sub-subparagraph (b)(1)a.
1968	subparagraph (b)1., the member may elect to include or exclude
1969	any optional service credit purchased by the member from the
1970	total service used to establish the normal retirement date. A
1971	member who has with dual normal retirement dates is shall be
1972	eligible to elect to participate in either class.
1973	(b)  Participation in the DROP.--
1974	1.a.  Except as provided in sub-subparagraph b., an
1975	eligible member may elect to participate in the DROP for a
1976	period not to exceed a maximum of 60 calendar months except as
1977	provided in subparagraph b. or, with respect to
1978	b.  Members who are instructional personnel employed by the
1979	Florida School for the Deaf and the Blind and who are authorized
1980	have received authorization by the Board of Trustees of the
1981	Florida School for the Deaf and the Blind to participate in the
1982	DROP beyond 60 months, or who are instructional personnel as
1983	defined in s. 1012.01(2)(a)-(d) in grades K-12 and who are
1984	authorized have received authorization by the district school
1985	superintendent to participate in the DROP beyond 60 calendar
1986	months, or who are instructional personnel, as defined in s.
1987	1012.01(2)(a)-(d), employed by a developmental research school
1988	and who are authorized by the school's principal, to participate
1989	in DROP beyond the original 60-month period, for up to 36 96
1990	calendar months immediately following the DROP termination date
1991	elected for participation in sub-subparagraph a.
1992	c.  Special Risk Class members who are employed as law
1993	enforcement officers, correctional officers, or community-based
1994	correctional probation officers, as described in s. 121.0515(2),
1995	who have a rank or the equivalent rank of captain or below, and
1996	who are currently participating in DROP for up to 60 months, may
1997	participate for an additional 36 calendar months. However, in
1998	order to participate the member must, before beginning the
1999	additional 36 months, receive authorization from the member's
2000	employer to participate in DROP beyond 60 months and pass the
2001	same physical examination required for new officers under s.
2002	943.13(6) and provide an accompanying statement from the
2003	officer's examining physician, physician assistant, or certified
2004	advanced registered nurse practitioner that the officer is
2005	capable of performing the essential functions of his or her
2006	duties as a law enforcement officer, correctional officer, or
2007	community-based correctional probation officer. The member's
2008	rank at the time of entering DROP shall be used for determining
2009	eligibility for the additional 36 calendar months of DROP date
2010	on which the member first reaches his or her normal retirement
2011	date or the date to which he or she is eligible to defer his or
2012	her election to participate as provided in subparagraph (a)2.
2013	However, a member who has reached normal retirement date prior
2014	to the effective date of the DROP shall be eligible to
2015	participate in the DROP for a period of time not to exceed 60
2016	calendar months or, with respect to members who are
2017	instructional personnel employed by the Florida School for the
2018	Deaf and the Blind and who have received authorization by the
2019	Board of Trustees of the Florida School for the Deaf and the
2020	Blind to participate in the DROP beyond 60 months, or who are
2021	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
2022	grades K-12 and who have received authorization by the district
2023	school superintendent to participate in the DROP beyond 60
2024	calendar months, 96 calendar months immediately following the
2025	effective date of the DROP, except a member of the Special Risk
2026	Class who has reached normal retirement date prior to the
2027	effective date of the DROP and whose total accrued value exceeds
2028	75 percent of average final compensation as of his or her
2029	effective date of retirement shall be eligible to participate in
2030	the DROP for no more than 36 calendar months immediately
2031	following the effective date of the DROP.
2032	2.  Upon deciding to participate in the DROP, the member
2033	shall submit, on forms required by the division:
2034	a.  A written election to participate in the DROP;
2035	b.  Selection of the DROP participation and termination
2036	dates, which satisfy the limitations stated in paragraph (a) and
2037	subparagraph 1. The Such termination date must shall be in a
2038	binding letter of resignation to with the employer, establishing
2039	a deferred termination date. The member may change the
2040	termination date within the limitations of subparagraph 1., but
2041	only with the written approval of the his or her employer;
2042	c.  A properly completed DROP application for service
2043	retirement as provided in this section; and
2044	d.  Any other information required by the division.
2045	3.  The DROP participant is shall be a retiree under the
2046	Florida Retirement System for all purposes, except for paragraph
2047	(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
2048	and 121.122. DROP participation is final and cannot be canceled
2049	by the participant after the first payment is credited during
2050	the DROP participation period. However, participation in the
2051	DROP does not alter the participant's employment status and the
2052	member is such employee shall not be deemed retired from
2053	employment until his or her deferred resignation is effective
2054	and termination occurs as provided in s. 121.021(39).
2055	4.  Elected officers are shall be eligible to participate
2056	in the DROP subject to the following:
2057	a.  An elected officer who reaches normal retirement date
2058	during a term of office may defer the election to participate in
2059	the DROP until the next succeeding term in that office. An Such
2060	elected officer who exercises this option may participate in the
2061	DROP for up to 60 calendar months or a period of no longer than
2062	the such succeeding term of office, whichever is less.
2063	b.  An elected or a nonelected participant may run for a
2064	term of office while participating in DROP and, if elected,
2065	extend the DROP termination date accordingly, except, however,
2066	if such additional term of office exceeds the 60-month
2067	limitation established in subparagraph 1., and the officer does
2068	not resign from office within such 60-month limitation, the
2069	retirement and the participant's DROP is shall be null and void
2070	as provided in sub-subparagraph (c)5.d.
2071	c.(I)  For DROP participation ending before July 1, 2009,
2072	an elected officer who is dually employed and elects to
2073	participate in DROP must shall be required to satisfy the
2074	definition of termination within the original 60-month period or
2075	maximum participation or, with respect to members who are
2076	instructional personnel employed by the Florida School for the
2077	Deaf and the Blind and who have received authorization by the
2078	Board of Trustees of the Florida School for the Deaf and the
2079	Blind to participate in the DROP beyond 60 months, or who are
2080	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
2081	grades K-12 and who have received authorization by the district
2082	school superintendent to participate in the DROP beyond 60
2083	months, the 96-month limitation period as provided in
2084	subparagraph 1. for the nonelected position and may continue
2085	employment as an elected officer as provided in s. 121.053. The
2086	elected officer shall will be enrolled as a renewed member in
2087	the Elected Officers' Class or the Regular Class, as provided in
2088	ss. 121.053 and 121.122, on the first day of the month after
2089	termination of employment in the nonelected position and
2090	termination of DROP. Distribution of the DROP benefits shall be
2091	made as provided in paragraph (c).
2092	(II)  For DROP participation ending on or after July 1,
2093	2009, an elected officer who is dually employed and elects to
2094	participate in DROP must satisfy the definition of termination
2095	in s. 121.021(39) within the original 60-month period or maximum
2096	period as provided in subparagraph 1.
2097	(c)  Benefits payable under the DROP.--
2098	1.  Effective on with the date of DROP participation, the
2099	member's initial normal monthly benefit, including creditable
2100	service, optional form of payment, and average final
2101	compensation, and the effective date of retirement are shall be
2102	fixed. The beneficiary established under the Florida Retirement
2103	System shall be the beneficiary eligible to receive any DROP
2104	benefits payable if the DROP participant dies prior to the
2105	completion of the period of DROP participation. If In the event
2106	a joint annuitant predeceases the member, the member may name a
2107	beneficiary to receive accumulated DROP benefits payable. The
2108	Such retirement benefit, the annual cost of living adjustments
2109	provided in s. 121.101, and interest shall accrue monthly in the
2110	Florida Retirement System Trust Fund. The Such interest shall
2111	accrue at an effective annual rate of 6.5 percent compounded
2112	monthly, on the prior month's accumulated ending balance, up to
2113	the month of termination or death.
2114	2.  Each employee who elects to participate in the DROP may
2115	shall be allowed to elect to receive a lump-sum payment for
2116	accrued annual leave earned in accordance with agency policy
2117	upon beginning participation in the DROP. The Such accumulated
2118	leave payment certified to the division upon commencement of
2119	DROP shall be included in the calculation of the member's
2120	average final compensation. The employee electing the such lump-
2121	sum payment is upon beginning participation in DROP will not be
2122	eligible to receive a second lump-sum payment upon termination,
2123	except to the extent the employee has earned additional annual
2124	leave which, combined with the original payment, does not exceed
2125	the maximum lump-sum payment allowed by the employing agency's
2126	policy or rules. An Such early lump-sum payment shall be based
2127	on the hourly wage of the employee at the time he or she begins
2128	participation in the DROP. If the member elects to wait and
2129	receive a such lump-sum payment upon termination of DROP and
2130	termination of employment with the employer, any accumulated
2131	leave payment made at that time may not cannot be included in
2132	the member's retirement benefit, which was determined and fixed
2133	by law when the employee elected to participate in the DROP.
2134	3.  The effective date of DROP participation and the
2135	effective date of retirement of a DROP participant shall be the
2136	first day of the month selected by the member to begin
2137	participation in the DROP, provided such date is properly
2138	established, with the written confirmation of the employer, and
2139	the approval of the division, on forms required by the division.
2140	4.  Normal retirement benefits and any interest thereon
2141	shall continue to accrue in the DROP until the established
2142	termination date of the DROP, or until the participant
2143	terminates employment or dies prior to such date. Although
2144	individual DROP accounts shall not be established, a separate
2145	accounting of each participant's accrued benefits under the DROP
2146	shall be calculated and provided to participants.
2147	5.  At the conclusion of the participant's DROP, the
2148	division shall distribute the participant's total accumulated
2149	DROP benefits, subject to the following provisions:
2150	a.  The division shall receive verification by the
2151	participant's employer or employers that the such participant
2152	has terminated employment as provided in s. 121.021(39)(b).
2153	b.  The terminated DROP participant or, if deceased, the
2154	such participant's named beneficiary, shall elect on forms
2155	provided by the division to receive payment of the DROP benefits
2156	in accordance with one of the options listed below. If For a
2157	participant or beneficiary who fails to elect a method of
2158	payment within 60 days of termination of the DROP, the division
2159	shall will pay a lump sum as provided in sub-sub-subparagraph
2160	(I).
2161	(I)  Lump sum.--All accrued DROP benefits, plus interest,
2162	less withholding taxes remitted to the Internal Revenue Service,
2163	shall be paid to the DROP participant or surviving beneficiary.
2164	(II)  Direct rollover.--All accrued DROP benefits, plus
2165	interest, shall be paid from the DROP directly to the custodian
2166	of an eligible retirement plan as defined in s. 402(c)(8)(B) of
2167	the Internal Revenue Code. However, in the case of an eligible
2168	rollover distribution to the surviving spouse of a deceased
2169	participant, an eligible retirement plan is an individual
2170	retirement account or an individual retirement annuity as
2171	described in s. 402(c)(9) of the Internal Revenue Code.
2172	(III)  Partial lump sum.--A portion of the accrued DROP
2173	benefits shall be paid to the DROP participant or surviving
2174	spouse, less withholding taxes remitted to the Internal Revenue
2175	Service, and the remaining DROP benefits shall be transferred
2176	directly to the custodian of an eligible retirement plan as
2177	defined in s. 402(c)(8)(B) of the Internal Revenue Code.
2178	However, in the case of an eligible rollover distribution to the
2179	surviving spouse of a deceased participant, an eligible
2180	retirement plan is an individual retirement account or an
2181	individual retirement annuity as described in s. 402(c)(9) of
2182	the Internal Revenue Code. The proportions shall be specified by
2183	the DROP participant or surviving beneficiary.
2184	c.  The form of payment selected by the DROP participant or
2185	surviving beneficiary must comply complies with the minimum
2186	distribution requirements of the Internal Revenue Code.
2187	d.  A DROP participant who fails to terminate employment as
2188	defined in s. 121.021(39)(b) shall be deemed as not to be
2189	retired, and the DROP election is shall be null and void.
2190	Florida Retirement System membership shall be reestablished
2191	retroactively to the date of the commencement of the DROP, and
2192	each employer with whom the participant continues employment
2193	must shall be required to pay to the Florida Retirement System
2194	Trust Fund the difference between the DROP contributions paid in
2195	paragraph (i) and the contributions required for the applicable
2196	Florida Retirement System class of membership during the period
2197	the member participated in the DROP, plus 6.5 percent interest
2198	compounded annually.
2199	6.  The retirement benefits of any DROP participant who
2200	meets the definition of termination in s. 121.021(39)(b), but is
2201	in violation of the reemployment provisions as provided in
2202	subsection (9), shall be suspended during those months in which
2203	the member is in violation. Any member employed in violation of
2204	this subparagraph and any employing agency that knowingly
2205	employs or appoints such member without notifying the Division
2206	of Retirement to suspend retirement benefits are jointly and
2207	severally liable for any benefits paid during the reemployment
2208	limitation period. To avoid liability, the employing agency must
2209	have a written statement from the retiree that he or she is not
2210	retired from a state-administered retirement system. Any
2211	retirement benefits received by a retired member while employed
2212	in violation of the reemployment limitations during the first 12
2213	months of retirement must be repaid to the Florida Retirement
2214	System Trust Fund, and his or her retirement benefits shall
2215	remain suspended until payment is made. Benefits suspended
2216	beyond the end of the retired member's first 12 calendar months
2217	after meeting the definition of termination in s. 121.021(39)(b)
2218	shall apply toward repayment of benefits received in violation
2219	of the reemployment limitations.
2220	7.6.  The accrued benefits of any DROP participant, and any
2221	contributions accumulated under the such program, are shall not
2222	be subject to assignment, execution, attachment, or to any legal
2223	process whatsoever, except for qualified domestic relations
2224	orders by a court of competent jurisdiction, income deduction
2225	orders as provided in s. 61.1301, and federal income tax levies.
2226	8.7.  DROP participants are shall not be eligible for
2227	disability retirement benefits as provided in subsection (4).
2228	(d)  Death benefits under the DROP.--
2229	1.  Upon the death of a DROP participant, the named
2230	beneficiary shall be entitled to apply for and receive the
2231	accrued benefits in the DROP as provided in sub-subparagraph
2232	(c)5.b.
2233	2.  The normal retirement benefit accrued to the DROP
2234	during the month of a participant's death shall be the final
2235	monthly benefit credited for such DROP participant.
2236	3.  Eligibility to participate in the DROP terminates upon
2237	death of the participant. If the participant dies on or after
2238	the effective date of enrollment in the DROP, but prior to the
2239	first monthly benefit being credited to the DROP, Florida
2240	Retirement System benefits shall be paid in accordance with
2241	subparagraph (7)(c)1. or subparagraph 2.
2242	4.  A DROP participants' survivors shall not be eligible to
2243	receive Florida Retirement System death benefits as provided in
2244	paragraph (7)(d).
2245	(e)  Cost-of-living adjustment.--On each July 1, the
2246	participants' normal retirement benefit shall be increased as
2247	provided in s. 121.101.
2248	(f)  Retiree health insurance subsidy.--DROP participants
2249	are not eligible to apply for the retiree health insurance
2250	subsidy payments as provided in s. 112.363 until such
2251	participants have terminated employment and participation in the
2252	DROP.
2253	(g)  Renewed membership.--DROP participants must meet the
2254	definition of termination in s. 121.021(39)(b) and must meet
2255	eligibility requirements shall not be eligible for renewed
2256	membership in the Florida Retirement System under ss. 121.053
2257	and 121.122 until termination of employment is effectuated as
2258	provided in s. 121.021(39)(b).
2259	(h)  Employment limitation after DROP participation.--Upon
2260	satisfying the definition of termination of employment as
2261	provided in s. 121.021(39)(b), DROP participants shall be
2262	subject to such reemployment limitations as other retirees.
2263	Reemployment restrictions applicable to retirees as provided in
2264	subsection (9) shall not apply to DROP participants until their
2265	employment and participation in the DROP are terminated.
2266	(i)  Contributions.--
2267	1.  All employers paying the salary of a DROP participant
2268	filling a regularly established position shall contribute 8.0
2269	percent of such participant's gross compensation for the period
2270	of July 1, 2002, through June 30, 2003, and 11.56 percent of
2271	such compensation thereafter, which shall constitute the entire
2272	employer DROP contribution with respect to such participant.
2273	Such contributions, payable to the System Trust Fund in the same
2274	manner as required in s. 121.071, shall be made as appropriate
2275	for each pay period and are in addition to contributions
2276	required for social security and the Retiree Health Insurance
2277	Subsidy Trust Fund. Such employer, social security, and health
2278	insurance subsidy contributions are not included in the DROP.
2279	2.  The employer shall, in addition to subparagraph 1.,
2280	also withhold one-half of the entire social security
2281	contribution required for the participant. Contributions for
2282	social security by each participant and each employer, in the
2283	amount required for social security coverage as now or hereafter
2284	provided by the federal Social Security Act, shall be in
2285	addition to contributions specified in subparagraph 1.
2286	3.  All employers paying the salary of a DROP participant
2287	filling a regularly established position shall contribute the
2288	percent of such participant's gross compensation required in s.
2289	121.071(4), which shall constitute the employer's health
2290	insurance subsidy contribution with respect to such participant.
2291	Such contributions shall be deposited by the administrator in
2292	the Retiree Health Insurance Subsidy Trust Fund.
2293	(j)  Forfeiture of retirement benefits.--Nothing in this
2294	section shall be construed to remove DROP participants from the
2295	scope of s. 8(d), Art. II of the State Constitution, s.
2296	112.3173, and paragraph (5)(f). DROP participants who commit a
2297	specified felony offense while employed will be subject to
2298	forfeiture of all retirement benefits, including DROP benefits,
2299	pursuant to those provisions of law.
2300	(k)  Administration of program.--The division shall make
2301	such rules as are necessary for the effective and efficient
2302	administration of this subsection. The division shall not be
2303	required to advise members of the federal tax consequences of an
2304	election related to the DROP but may advise members to seek
2305	independent advice.
2306	(14)  PAYMENT OF BENEFITS.--This subsection applies to the
2307	payment of benefits to a payee (retiree or beneficiary) under
2308	the Florida Retirement System:
2309	(a)  Federal income tax shall be withheld in accordance
2310	with federal law, unless the payee elects otherwise on Form W-
2311	4P. The division shall prepare and distribute to each recipient
2312	of monthly retirement benefits an appropriate income tax form
2313	that reflects the recipient's income and federal income tax
2314	withheld for the calendar year just ended.
2315	(b)  Subject to approval by the division in accordance with
2316	rule 60S-4.015, Florida Administrative Code, a payee receiving
2317	retirement benefits under the Florida Retirement system may also
2318	have the following payments deducted from his or her monthly
2319	benefit:
2320	1.  Premiums for life and health-related insurance policies
2321	from approved companies.
2322	2.  Life insurance premiums for the State Group Life
2323	Insurance Plan, if authorized in writing by the payee and by the
2324	department of Management Services.
2325	3.  Repayment of overpayments from the Florida Retirement
2326	System Trust Fund, the State Employees' Health Insurance Trust
2327	Fund, or the State Employees' Life Insurance Trust Fund, upon
2328	notification of the payee.
2329	4.  Payments to an alternate payee for alimony or, child
2330	support pursuant to an income deduction order under s. 61.1301,
2331	or division of marital assets pursuant to a qualified domestic
2332	relations order under s. 222.21 or an income deduction order
2333	under s. 61.1301.
2334	5.  Payments to the Internal Revenue Service for federal
2335	income tax levies, upon notification of the division by the
2336	Internal Revenue Service.
2337	(c)  A payee must shall notify the division of any change
2338	in his or her address. The division may suspend benefit payments
2339	to a payee if correspondence sent to the payee's mailing address
2340	is returned due to an incorrect address. Benefit payments shall
2341	be resumed upon notification to the division of the payee's new
2342	address.
2343	(d)  A payee whose retirement benefits are reduced by the
2344	application of maximum benefit limits under s. 415(b) of the
2345	Internal Revenue Code, as specified in s. 121.30(5), shall have
2346	the portion of his or her calculated benefit in the Florida
2347	Retirement System defined benefit plan which exceeds such
2348	federal limitation paid through the Florida Retirement System
2349	Preservation of Benefits Plan, as provided in s. 121.1001.
2350	(e)  The division may issue retirement benefits payable for
2351	division of marital assets pursuant to a qualified domestic
2352	relations order directly to the alternate payee, any court order
2353	to the contrary notwithstanding, in order to meet Internal
2354	Revenue Code requirements.
2355	(f)(e)  A No benefit may not be reduced for the purpose of
2356	preserving the member's eligibility for a federal program.
2357	(g)(f)  The division shall adopt rules establishing
2358	procedures for determining that the persons to whom benefits are
2359	being paid are still living. The division shall suspend the
2360	benefits being paid to any payee if when it is unable to contact
2361	such payee and to confirm that he or she is still living.
2362	Section 10.  Section 121.1115, Florida Statutes, is amended
2363	to read:
2364	121.1115  Purchase of retirement credit for out-of-state or
2365	and federal service.--Effective January 1, 1995, a member of the
2366	Florida Retirement System may purchase creditable service for
2367	periods of public employment in another state and receive
2368	creditable service for such periods of employment. Service with
2369	the Federal Government, including any active military service,
2370	may be claimed. Upon completion of each year of service earned
2371	under the Florida Retirement System, a member may purchase up to
2372	1 year of retirement credit for his or her out-of-state service,
2373	subject to the following provisions:
2374	(1)  LIMITATIONS AND CONDITIONS.--To receive credit for the
2375	out-of-state service:
2376	(a)  The out-of-state service being claimed must have been:
2377	1.  Performed in a position of employment with the state or
2378	a political subdivision thereof or with the Federal Government;
2379	2.  Covered by a retirement or pension plan provided by the
2380	state or political subdivision, or by the Federal Government, as
2381	appropriate; and
2382	3.  Performed prior to a period of membership in the
2383	Florida Retirement System.
2384	(b)  The member must have completed a minimum of 6 years of
2385	creditable service under the Florida Retirement System,
2386	excluding out-of-state service and in-state service claimed and
2387	purchased under s. 121.1122.
2388	(c)  Not more than 5 years of creditable service may be
2389	claimed for creditable service aggregated under the provisions
2390	of this section and s. 121.1122.
2391	(d)  The out-of-state service credit claimed under this
2392	section shall be credited only as service in the Regular Class
2393	of membership, and any benefit or pension based thereon is shall
2394	be subject to the limitations and restrictions of s. 112.65.
2395	(e)  The member is not eligible for and may not receive a
2396	pension or benefit from a retirement or pension plan based on or
2397	including the out-of-state service. Eligibility for or the
2398	receipt of contributions to a retirement plan made by the
2399	employer on behalf of the employee is considered a benefit.
2400	(f)(e)  To receive A member shall be eligible to receive
2401	service credit for out-of-state service performed after leaving
2402	the Florida Retirement System, the member must complete only
2403	upon return to membership and completion of at least 1 year of
2404	creditable service in the Florida Retirement System following
2405	the out-of-state service.
2406	(2)  COST.--For each year claimed, the member must pay into
2407	the Florida Retirement System Trust Fund an amount equal to 20
2408	percent of the member's annual compensation for the first full
2409	work year of creditable service earned under the Florida
2410	Retirement System, but not less than $12,000, plus interest at
2411	6.5 percent compounded annually from the date of first annual
2412	salary earned until full payment is made. The employer may pay
2413	all or a portion of the cost of this service credit.
2414	Section 11.  Subsection (2) of section 121.1122, Florida
2415	Statutes, is amended to read:
2416	121.1122  Purchase of retirement credit for in-state public
2417	service and in-state service in accredited nonpublic schools and
2418	colleges, including charter schools and charter technical career
2419	centers.--Effective January 1, 1998, a member of the Florida
2420	Retirement System may purchase creditable service for periods of
2421	certain public or nonpublic employment performed in this state,
2422	as provided in this section.
2423	(2)  LIMITATIONS AND CONDITIONS.--
2424	(a)  A member is not eligible to receive credit for in-
2425	state service under this section until he or she has completed 6
2426	years of creditable service under the Florida Retirement System,
2427	excluding service purchased under this section and out-of-state
2428	service claimed and purchased under s. 121.1115.
2429	(b)  A member may not purchase and receive credit for more
2430	than 5 years of creditable service aggregated under the
2431	provisions of this section and s. 121.1115.
2432	(c)  Service credit claimed under this section shall be
2433	credited only as service in the Regular Class of membership and
2434	is shall be subject to the provisions of s. 112.65.
2435	(d)  Service credit may not be purchased under this section
2436	if the member is eligible to receive or is receiving a pension
2437	or benefit from a retirement or pension plan based on or
2438	including the service. Eligibility for or the receipt of
2439	contributions to a retirement plan made by the employer on
2440	behalf of the employee is considered a benefit.
2441	(e)(d)  A member is shall be eligible to receive service
2442	credit for in-state service performed after leaving the Florida
2443	Retirement System only after upon returning to membership and
2444	completing at least 1 year of creditable service in the Florida
2445	Retirement System following the in-state service.
2446	(f)(e)  The service claimed must have been service covered
2447	by a retirement or pension plan provided by the employer.
2448	Section 12.  Section 121.122, Florida Statutes, is amended
2449	to read:
2450	121.122  Renewed membership in system.--
2451	(1)  Any retiree of a state-administered retirement system
2452	who is initially reemployed on or after July 1, 2009, shall not
2453	be eligible for renewed membership.
2454	(2)  Except as provided in s. 121.053, effective July 1,
2455	1991, through June 30, 2009, any retiree of a state-administered
2456	retirement system who is initially reemployed employed in a
2457	regularly established position with a covered employer shall be
2458	enrolled as a compulsory member of the Regular Class of the
2459	Florida Retirement System or, effective July 1, 1997, through
2460	June 30, 2009, any retiree of a state-administered retirement
2461	system who is initially reemployed employed in a position
2462	included in the Senior Management Service Class shall be
2463	enrolled as a compulsory member of the Senior Management Service
2464	Class of the Florida Retirement System as provided in s.
2465	121.055, and shall be entitled to receive an additional
2466	retirement benefit, subject to the following conditions:
2467	(1)(a)  Such member shall resatisfy the age and service
2468	requirements as provided in this chapter for initial membership
2469	under the system, unless such member elects to participate in
2470	the Senior Management Service Optional Annuity Program in lieu
2471	of the Senior Management Service Class, as provided in s.
2472	121.055(6).
2473	(b)  Such member shall not be entitled to disability
2474	benefits as provided in s. 121.091(4).
2475	(c)  Such member must meet the reemployment after
2476	retirement limitations as provided in s. 121.091(9), as
2477	applicable.
2478	(3)(2)  Upon renewed membership or reemployment of a
2479	retiree, the employer of such member shall pay the applicable
2480	employer contributions as required by ss. 121.71, 121.74,
2481	121.76, and 112.363 121.055(3) and 121.071(1)(a) and (4).
2482	(4)(3)  The retiree of a state-administered retirement
2483	system who is initially reemployed before July 1, 2009, Such
2484	member shall be entitled to purchase additional retirement
2485	credit in the Regular Class or the Senior Management Service
2486	Class, as applicable, for any postretirement service performed
2487	in a regularly established position as follows:
2488	(a)  For regular class service prior to July 1, 1991, by
2489	paying the Regular Class applicable employee and employer
2490	contributions for the period being claimed, plus 4 percent
2491	interest compounded annually from first year of service claimed
2492	until July 1, 1975, and 6.5 percent interest compounded
2493	thereafter, until full payment is made to the Florida Retirement
2494	System Trust Fund; or
2495	(b)  For Senior Management Service Class prior to June 1,
2496	1997, as provided in s. 121.055(1)(j).
2497
2498	The contribution for postretirement service between July 1,
2499	1985, and July 1, 1991, for which the reemployed retiree
2500	contribution was paid, shall be the difference between such
2501	contribution and the total applicable contribution for the
2502	period being claimed, plus interest. The employer of such member
2503	may pay the applicable employer contribution in lieu of the
2504	member. If a member does not wish to claim credit for all of the
2505	postretirement service for which he or she is eligible, the
2506	service the member claims must be the most recent service.
2507	(5)(4)  No creditable service for which credit was
2508	received, or which remained unclaimed, at retirement may be
2509	claimed or applied toward service credit earned following
2510	renewed membership. However, for retirees initially reemployed
2511	before July 1, 2009, service earned as an elected officer with
2512	renewed membership in the Elected Officers' Class may be used in
2513	conjunction with creditable service earned under this section,
2514	provided the applicable vesting requirements and other existing
2515	statutory conditions required by this chapter are met.
2516	(6)(5)  Notwithstanding any other limitations provided in
2517	this section, a participant of the State University System
2518	Optional Retirement Program or the Senior Management Service
2519	Optional Annuity Program who terminated employment and received
2520	a distribution commenced receiving an annuity under the
2521	provisions of the optional program, who initially renews
2522	membership before July 1, 2009, in the Regular Class as required
2523	by this section upon reemployment after retirement, and who had
2524	previously earned creditable Florida Retirement System service
2525	that was not included in any retirement benefit may include such
2526	previous service toward vesting and service credit in the second
2527	career benefit provided under renewed membership.
2528	(7)(6)  Any renewed member who is not receiving the maximum
2529	health insurance subsidy provided in s. 112.363 shall be
2530	entitled to earn additional credit toward the maximum health
2531	insurance subsidy. Any additional subsidy due because of such
2532	additional credit shall be received only at the time of payment
2533	of the second career retirement benefit. In no case shall the
2534	total health insurance subsidy received by a retiree receiving
2535	benefits from initial and renewed membership exceed the maximum
2536	allowed in s. 112.363.
2537	Section 13.  Section 121.136, Florida Statutes, is amended
2538	to read:
2539	121.136  Annual benefit statement to members.--Beginning
2540	January 1, 1993, and Each January thereafter, the department
2541	shall provide each active member of the Florida Retirement
2542	System with 5 or more years of creditable service an annual
2543	statement of benefits which provides. Such statement should
2544	provide the member with basic data about the member's retirement
2545	account. At a minimum Minimally, it must shall include the
2546	member's retirement plan, accrued service credit the amount of
2547	funds on deposit in the retirement account, and an estimate of
2548	retirement benefits.
2549	Section 14.  Section 121.1905, Florida Statutes, is amended
2550	to read:
2551	121.1905  Division of Retirement; creation.--
2552	(1)  There is created the Division of Retirement within the
2553	Department of Management Services.
2554	(2)  The mission of the Division of Retirement is to
2555	provide quality and cost-effective retirement services as
2556	measured by member satisfaction and by comparison with
2557	administrative costs of comparable retirement systems.
2558	Section 15.  Paragraph (a) of subsection (2) of section
2559	121.23, Florida Statutes, is amended to read:
2560	121.23  Disability retirement and special risk membership
2561	applications; Retirement Commission; powers and duties; judicial
2562	review.--The provisions of this section apply to all proceedings
2563	in which the administrator has made a written final decision on
2564	the merits respecting applications for disability retirement,
2565	reexamination of retired members receiving disability benefits,
2566	applications for special risk membership, and reexamination of
2567	special risk members in the Florida Retirement System. The
2568	jurisdiction of the State Retirement Commission under this
2569	section shall be limited to written final decisions of the
2570	administrator on the merits.
2571	(2)  A member shall be entitled to a hearing before the
2572	State Retirement Commission pursuant to ss. 120.569 and
2573	120.57(1) on the merits of any written adverse decision of the
2574	administrator, if he or she files with the commission a written
2575	request for such hearing within 21 days after receipt of such
2576	written decision from the administrator. For the purpose of such
2577	hearings, the commission shall be an "agency head" as defined by
2578	s. 120.52.
2579	(a)  The commission may shall have the authority to issue
2580	orders as a result of the a hearing that are shall be binding on
2581	all parties to the dispute and. The commission may order any
2582	action that it deems appropriate. Any disability retirement
2583	order of the commission issued pursuant to this subsection which
2584	sustains the application of the member may include an amount, to
2585	be determined by the commission, for reasonable attorney's fees
2586	and taxable costs, which shall be calculated in accordance with
2587	the statewide uniform guidelines for taxation of costs in civil
2588	actions. The amount of the attorney's fee may not exceed 50
2589	percent of the initial yearly benefit awarded under s.
2590	121.091(4). In cases involving disability retirement, the State
2591	Retirement commission shall require the member to present
2592	competent substantial medical evidence and meet the requirements
2593	of s. 121.091(4)(c)2. and 3., and may require vocational
2594	evidence, before awarding disability retirement benefits.
2595	Section 16.  Paragraph (a) of subsection (1) of section
2596	121.24, Florida Statutes, is amended to read:
2597	121.24  Conduct of commission business; legal and other
2598	assistance; compensation.--
2599	(1)  The commission shall conduct its business within the
2600	following guidelines:
2601	(a)  For purposes of hearing appeals under s. 121.23, the
2602	commission may meet in panels consisting of no not fewer than
2603	three members. For the purpose of meeting in these panels, a
2604	quorum shall be not fewer than two members. For all other
2605	purposes, A quorum shall consist of three members. The
2606	concurring vote of a majority of the members present is shall be
2607	required to reach a decision, issue orders, and conduct the
2608	business of the commission.
2609	Section 17.  Paragraph (e) of subsection (5) of section
2610	121.35, Florida Statutes, is amended to read:
2611	121.35  Optional retirement program for the State
2612	University System.--
2613	(5)  BENEFITS.--
2614	(e)  A participant who chooses to receive his or her
2615	benefits upon termination of employment as defined in s.
2616	121.021(39) shall have responsibility to notify the provider
2617	company of the date on which he or she wishes benefits funded by
2618	employer contributions to begin. Benefits may be deferred until
2619	such time as the participant chooses to make such application.
2620	Section 18.  Paragraph (f) of subsection (2) of section
2621	121.4501, Florida Statutes, is amended to read:
2622	121.4501  Public Employee Optional Retirement Program.--
2623	(2)  DEFINITIONS.--As used in this part, the term:
2624	(f)  "Eligible employee" means an officer or employee, as
2625	defined in s. 121.021(11), who:
2626	1.  Is a member of, or is eligible for membership in, the
2627	Florida Retirement System, including any renewed member of the
2628	Florida Retirement System initially enrolled before July 1,
2629	2009; or
2630	2.  Participates in, or is eligible to participate in, the
2631	Senior Management Service Optional Annuity Program as
2632	established under s. 121.055(6), the State Community College
2633	Optional Retirement Program as established under s.
2634	121.051(2)(c), or the State University System Optional
2635	Retirement Program established under s. 121.35.
2636
2637	The term does not include any member participating in the
2638	Deferred Retirement Option Program established under s.
2639	121.091(13), a retiree of a state-administered retirement system
2640	initially reemployed on or after July 1, 2009, or a mandatory
2641	participant of the State University System Optional Retirement
2642	Program established under s. 121.35.
2643	Section 19.  Paragraph (b) of subsection (1) of section
2644	121.591, Florida Statutes, is amended to read:
2645	121.591  Benefits payable under the Public Employee
2646	Optional Retirement Program of the Florida Retirement
2647	System.--Benefits may not be paid under this section unless the
2648	member has terminated employment as provided in s.
2649	121.021(39)(a) or is deceased and a proper application has been
2650	filed in the manner prescribed by the state board or the
2651	department. The state board or department, as appropriate, may
2652	cancel an application for retirement benefits when the member or
2653	beneficiary fails to timely provide the information and
2654	documents required by this chapter and the rules of the state
2655	board and department. In accordance with their respective
2656	responsibilities as provided herein, the State Board of
2657	Administration and the Department of Management Services shall
2658	adopt rules establishing procedures for application for
2659	retirement benefits and for the cancellation of such application
2660	when the required information or documents are not received. The
2661	State Board of Administration and the Department of Management
2662	Services, as appropriate, are authorized to cash out a de
2663	minimis account of a participant who has been terminated from
2664	Florida Retirement System covered employment for a minimum of 6
2665	calendar months. A de minimis account is an account containing
2666	employer contributions and accumulated earnings of not more than
2667	$5,000 made under the provisions of this chapter. Such cash-out
2668	must either be a complete lump-sum liquidation of the account
2669	balance, subject to the provisions of the Internal Revenue Code,
2670	or a lump-sum direct rollover distribution paid directly to the
2671	custodian of an eligible retirement plan, as defined by the
2672	Internal Revenue Code, on behalf of the participant. If any
2673	financial instrument issued for the payment of retirement
2674	benefits under this section is not presented for payment within
2675	180 days after the last day of the month in which it was
2676	originally issued, the third-party administrator or other duly
2677	authorized agent of the State Board of Administration shall
2678	cancel the instrument and credit the amount of the instrument to
2679	the suspense account of the Public Employee Optional Retirement
2680	Program Trust Fund authorized under s. 121.4501(6). Any such
2681	amounts transferred to the suspense account are payable upon a
2682	proper application, not to include earnings thereon, as provided
2683	in this section, within 10 years after the last day of the month
2684	in which the instrument was originally issued, after which time
2685	such amounts and any earnings thereon shall be forfeited. Any
2686	such forfeited amounts are assets of the Public Employee
2687	Optional Retirement Program Trust Fund and are not subject to
2688	the provisions of chapter 717.
2689	(1)  NORMAL BENEFITS.--Under the Public Employee Optional
2690	Retirement Program:
2691	(b)  If a participant elects to receive his or her benefits
2692	upon termination of employment as defined in s. 121.021(39), the
2693	participant must submit a written application or an equivalent
2694	form to the third-party administrator indicating his or her
2695	preferred distribution date and selecting an authorized method
2696	of distribution as provided in paragraph (c). The participant
2697	may defer receipt of benefits until he or she chooses to make
2698	such application, subject to federal requirements.
2699	Section 20.  Subsection (8) of section 1012.33, Florida
2700	Statutes, is amended to read:
2701	1012.33  Contracts with instructional staff, supervisors,
2702	and school principals.--
2703	(8)  Notwithstanding any other provision of law, a retired
2704	any member who has retired may interrupt retirement and be
2705	reemployed in any public school. A Any member so reemployed by
2706	the same district from which he or she retired may be employed
2707	on a probationary contractual basis as provided in subsection
2708	(1); however, no regular retirement employee shall be eligible
2709	to renew membership under a retirement system created by chapter
2710	121 or chapter 238.
2711	Section 21.  Paragraph (a) of subsection (4) of section
2712	121.35, Florida Statutes, is amended, and paragraph (g) is added
2713	to that subsection, to read:
2714	121.35  Optional retirement program for the State
2715	University System.--
2716	(4)  CONTRIBUTIONS.--
2717	(a)  Through June 30, 2001, each employer shall contribute
2718	on behalf of each participant in the optional retirement program
2719	an amount equal to the normal cost portion of the employer
2720	retirement contribution which would be required if the
2721	participant were a regular member of the Florida Retirement
2722	System defined benefit program, plus the portion of the
2723	contribution rate required in s. 112.363(8) that would otherwise
2724	be assigned to the Retiree Health Insurance Subsidy Trust Fund.
2725	Effective July 1, 2001, each employer shall contribute on behalf
2726	of each participant in the optional program an amount equal to
2727	10.43 percent of the participant's gross monthly compensation.
2728	The department shall deduct an amount approved by the
2729	Legislature to provide for the administration of this program.
2730	The payment of the contributions to the optional program which
2731	is required by this paragraph for each participant shall be made
2732	by the employer to the department, which shall forward the
2733	contributions to the designated company or companies contracting
2734	for payment of benefits for the participant under the program.
2735	However, such contributions paid on behalf of an employee
2736	described in paragraph (3)(c) shall not be forwarded to a
2737	company and shall not begin to accrue interest until the
2738	employee has executed a an annuity contract and notified the
2739	department.
2740	(g)  Effective January 1, 2009, for purposes of paragraph
2741	(a) and notwithstanding s. 121.021(22)(b)1., the term
2742	"participant's gross monthly compensation" includes salary
2743	payments made to eligible clinical faculty from a state
2744	university using funds provided by a faculty practice plan
2745	authorized by the Board of Governors of the State University
2746	System if:
2747	1.  There is not any employer contribution from the state
2748	university to any other retirement program with respect to such
2749	salary payments; and
2750	2.  The employer contribution on behalf of the participant
2751	in the optional retirement program with respect to such salary
2752	payments is made using funds provided by the faculty practice
2753	plan.
2754	Section 22.  Section 121.355, Florida Statutes, is created
2755	to read:
2756	121.355  Community College Optional Retirement Program and
2757	State University System Optional Retirement Program member
2758	transfer.--Effective July 1, 2009, through December 31, 2009, an
2759	employee who is a former participant in the Community College
2760	Optional Retirement Program or the State University System
2761	Optional Retirement Program and present mandatory participant in
2762	the Florida Retirement System defined benefit plan may receive
2763	service credit equal to his or her years of service under the
2764	Community College Optional Retirement Program or the State
2765	University System Optional Retirement Program under the
2766	following conditions:
2767	(1)  The cost for such credit shall be an amount
2768	representing the actuarial accrued liability for the affected
2769	period of service. The cost shall be calculated using the
2770	discount rate and other relevant actuarial assumptions that were
2771	used to value the Florida Retirement System defined benefit plan
2772	liabilities in the most recent actuarial valuation. The
2773	calculation shall include any service already maintained under
2774	the defined benefit plan in addition to the years under the
2775	Community College Optional Retirement Program or the State
2776	University System Optional Retirement Program. The actuarial
2777	accrued liability of any service already maintained under the
2778	defined benefit plan shall be applied as a credit to total cost
2779	resulting from the calculation. The division shall ensure that
2780	the transfer sum is prepared using a formula and methodology
2781	certified by an enrolled actuary.
2782	(2)  The employee must transfer from his or her Community
2783	College Optional Retirement Program account or State University
2784	System Optional Retirement Program account, subject to the terms
2785	of the applicable optional retirement program contract, and from
2786	other employee moneys as necessary, a sum representing the
2787	actuarial accrued liability immediately following the time of
2788	such movement, determined assuming that attained service equals
2789	the sum of service in the defined benefit program and service in
2790	the Community College Optional Retirement Program or State
2791	University System Optional Retirement Program.
2792	(3)  The employee may not receive service credit for a
2793	period of mandatory participation in the State University
2794	Optional Retirement Program or for a period for which a
2795	distribution was received from the Community College Optional
2796	Retirement Program or State University System Optional
2797	Retirement Program.
2798	Section 23.  Sections 121.093, 121.094, and 121.45, Florida
2799	Statutes, are repealed.
2800	Section 24.  A study shall be conducted by a committee to
2801	determine the available processes and different retirement
2802	options for returning employees, as well as the benefits and
2803	negatives; constitutional issues; federal issues, including, but
2804	not limited to, ERSA and IRS; investment options; and the
2805	savings versus the costs of such options. The committee shall be
2806	comprised of five members. Three members shall be appointed by
2807	the Governor, one with knowledge of tax issues, one with
2808	knowledge of investment options, and one who is a large
2809	investment firm retirement expert. One member from the Division
2810	of Retirement shall be appointed by the division's director and
2811	one member from the Chief Financial Officer's office shall be
2812	appointed by the Chief Financial Officer. The committee shall
2813	report its findings to the Speaker of the House of
2814	Representatives and the President of the Senate by June 30,
2815	2010. Members of the committee are not entitled to a salary for
2816	duties performed as a member of the committee, except that the
2817	members are entitled to reimbursement for per diem and travel
2818	expenses in accordance with s. 112.061, Florida Statutes.
2819	Section 25.  The Legislature finds that a proper and
2820	legitimate state purpose is served when employees and retirees
2821	of the state and its political subdivisions, as well as the
2822	dependents, survivors, and beneficiaries of such employees and
2823	retiree, are extended the basic protections afforded by
2824	governmental retirement systems that provide fair and adequate
2825	benefits and that are managed, administered, and funded in an
2826	actuarially sound manner as required by s. 14, Art. X of the
2827	State Constitution, and part VII of chapter 112, Florida
2828	Statutes. Therefore, the Legislature determines and declares
2829	that the amendment of s. 121.091, Florida Statutes, by this act
2830	fulfills an important state interest.
2831	Section 26.  This act shall take effect January 1, 2009.
2832
2833	-----------------------------------------------------
2834	T I T L E  A M E N D M E N T
2835	Remove the entire title and insert:
2836	A bill to be entitled
2837	An act relating to retirement; amending s. 121.021, F.S.;
2838	redefining the terms "employer," "officer or employee,"
2839	"past service," "compensation," "normal retirement date,"
2840	"regularly established position," "termination," and
2841	"temporary position"; defining the terms "state board" and
2842	"trustees"; amending s. 121.031, F.S.; requiring
2843	promotional materials that refer to the Florida Retirement
2844	System to include a disclaimer unless approval is obtained
2845	from the Department of Management Services; amending s.
2846	121.051, F.S.; conforming a cross-reference; revising
2847	provisions relating to participation in the system;
2848	requiring that a person appointed to a faculty position at
2849	a state university having a faculty practice plan
2850	participate in the optional retirement program of the
2851	State University System rather than the Florida Retirement
2852	System; providing definitions; excluding the participation
2853	of entities under a lease agreement; excluding the
2854	participation of prisoners and inmates in the system;
2855	amending s. 121.052, F.S.; changing the dates for when a
2856	governing body of a municipality or special district may
2857	elect to designate its elected positions for inclusion in
2858	the Elected Officers' Class; amending s. 121.053, F.S.;
2859	revising provisions relating to participation in the
2860	Elected Officers' Class for retired members; amending s.
2861	121.055, F.S.; revising provisions relating to
2862	participation in the Senior Management Service Class;
2863	amending s. 121.071, F.S.; expanding the mechanisms for
2864	employees to pay contributions to the system; amending s.
2865	121.081, F.S.; revising provisions relating to receiving
2866	credit for past or prior service; prohibiting a member
2867	from receiving credit for service covered and reported by
2868	both a public employer and a private employer; amending s.
2869	121.091, F.S.; revising provisions relating to retirement
2870	benefits; revising limitations on the payment of
2871	retirement benefits for certain retired persons who are
2872	reemployed by an employer participating in a state-
2873	administered retirement system; prohibiting certain
2874	members of the Special Risk Class from being reemployed or
2875	contracting with the same employing agency from which the
2876	member retired; deleting a restriction on the reemployment
2877	of certain personnel by the Florida School for the Deaf
2878	and the Blind; extending the period of time during which
2879	certain Special Risk Class members may participate in the
2880	Florida Retirement System Deferred Retirement Option
2881	Program; extending the period of time that instructional
2882	personnel employed by a developmental research school may
2883	participate in the Deferred Retirement Option Program;
2884	defining the term "member" for purposes of reporting to
2885	the Governor, the President of the Senate, and the Speaker
2886	of the House of Representatives those members who have
2887	been reemployed after retirement; requiring employers to
2888	certify to the Governor, the President of the Senate, and
2889	the Speaker of the House of Representatives information
2890	regarding those employers who reemployed members during
2891	months 2 through 12 of retirement; prohibiting certain
2892	persons holding public office from electing to retire
2893	while continuing employment in that elected office;
2894	deleting a provision authorizing an employing agency to
2895	reemploy a retired member as a firefighter or paramedic
2896	after a specified period; providing certain limitations
2897	for DROP participants; clarifying that DROP participation
2898	cannot be canceled; authorizing the Division of Retirement
2899	to issue benefits directly to the alternate payee pursuant
2900	to an income deduction order or a qualified domestic
2901	relations order; providing for the suspension of DROP
2902	benefits to a participant who is reemployed; deleting
2903	obsolete provisions; authorizing the Division of
2904	Retirement to issue benefits pursuant to a qualified
2905	domestic relations order directly to the alternate payee;
2906	amending s. 121.1115, F.S.; revising provisions relating
2907	to receiving retirement credit for out-of-state service;
2908	providing that a member is not eligible for and may not
2909	receive a benefit based on that service; amending s.
2910	121.1122, F.S.; revising provisions relating to receiving
2911	retirement credit for in-state service; providing that a
2912	member may not be eligible for or receiving a benefit
2913	based on service; amending s. 121.122, F.S.; providing
2914	that certain persons are ineligible for renewed membership
2915	in the Florida Retirement System; amending s. 121.136,
2916	F.S.; revising provisions relating to the annual statement
2917	of benefits provided to certain active members of the
2918	Florida Retirement System; amending s. 121.1905, F.S.;
2919	deleting provision describing the mission of the Division
2920	of Retirement; amending s. 121.23, F.S.; requiring the
2921	State Retirement Commission to meet the same requirements
2922	used by the Secretary of Management Services before
2923	approving a disability retirement benefit; amending s.
2924	121.24, F.S.; requiring a quorum of three members for all
2925	appeal hearings held by the State Retirement Commission;
2926	amending s. 1012.33, F.S.; deleting the provision
2927	preventing persons who have retired from the public school
2928	system from renewing membership in the Florida Retirement
2929	System upon reemployment by the school system; amending s.
2930	121.35, F.S.; requiring the participating employee in the
2931	optional retirement program to execute a contract, not
2932	just an annuity contract, with a designated company in
2933	order for employee contributions to be forwarded to the
2934	company and for interest to accrue; defining the term
2935	"participant's gross monthly compensation" for purposes of
2936	the optional retirement program for the State University
2937	System; providing a cross-reference; creating s. 121.355,
2938	F.S.; authorizing certain former participants in the
2939	Community College Optional Retirement Program or the State
2940	University System Optional Retirement Program and present
2941	mandatory participants in the Florida Retirement System to
2942	receive a specified amount of service credit under certain
2943	conditions; providing a specified time period for the
2944	election of such transfer; limiting certain service
2945	credit; amending s. 121.4501, F.S.; revising the
2946	definition of the term "eligible employee" for purposes of
2947	the Public Employee Optional Retirement Program; amending
2948	s. 121.591, F.S.; providing a cross-reference; repealing
2949	s. 121.093, F.S., relating to instructional personnel
2950	reemployment after retirement from the developmental
2951	research school or the Florida School for the Deaf and the
2952	Blind; repealing s. 121.094, F.S., relating to
2953	instructional personnel reemployment after retirement from
2954	a charter school; repealing s. 121.45, F.S., relating to
2955	interstate compacts relating to pension portability;
2956	requiring a study by committee for specified purposes
2957	relating to retirement programs; providing membership;
2958	providing reporting requirements; providing for
2959	reimbursement of expenses but no compensation; providing a
2960	declaration of important state interest; providing an
2961	effective date.

CODING: Words stricken are deletions; words underlined are additions.