1

A bill to be entitled

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An act relating to the Florida Retirement System; amending

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s. 121.021, F.S.; redefining the terms "employer,"

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"officer or employee," "past service," "compensation,"

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"normal retirement date," "regularly established

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position," and temporary position"; defining the terms

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"state board" and "trustees"; amending s. 121.031, F.S.;

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requiring promotional materials that refer to the Florida

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Retirement System to include a disclaimer unless approval

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is obtained from the Department of Management Services;

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amending s. 121.051, F.S.; conforming a cross-reference;

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revising provisions relating to participation in the

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system; excluding the participation of entities under a

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lease agreement; excluding the participation of prisoners

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and inmates in the system; amending s. 121.052, F.S.;

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changing the dates for when a governing body of a

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municipality or special district may elect to designate

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its elected positions for inclusion in the Elected

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Officers' Class; amending s. 121.071, F.S.; expanding the

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mechanisms for employees to pay contributions to the

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system; amending s. 121.081, F.S.; revising provisions

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relating to receiving credit for past or prior service;

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prohibiting a member from receiving credit for service

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covered and reported by both a public employer and a

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private employer; amending s. 121.091, F.S.; revising

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provisions relating to retirement benefits; deleting a

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restriction on the reemployment of certain personnel by

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the Florida School for the Deaf and the Blind; extending

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the period of time that instructional personnel employed

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by a developmental research school may participate in the

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Deferred Retirement Option Program; clarifying that DROP

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participation cannot be cancelled; providing for the

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suspension of DROP benefits to a participant who is

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reemployed; deleting obsolete provisions; authorizing the

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Division of Retirement to issue benefits pursuant to a

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qualified domestic relations order directly to the

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alternate payee; amending s. 121.1115, F.S.; revising

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provisions relating to receiving retirement credit for

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out-of-state service; providing that a member is not

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eligible for and may not receive a benefit based on that

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service; amending s. 121.1122, F.S.; revising provisions

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relating to receiving retirement credit for in-state

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service; providing that a member may not be eligible for

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or receiving a benefit based on service; amending s.

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121.136, F.S.; revising provisions relating to the annual

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statement of benefits provided to certain active members

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of the Florida Retirement System; amending s. 121.1905,

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F.S.; deleting provision describing the mission of the

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Division of Retirement; amending s. 121.23, F.S.;

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requiring the State Retirement Commission to meet the same

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requirements used by the Secretary of Management Services

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before approving a disability retirement benefit; amending

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s. 121.24, F.S.; requiring a quorum of three members for

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all appeal hearings held by the State Retirement

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Commission; amending s. 1012.33, F.S.; deleting the

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provision preventing persons who have retired from the

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public school system from renewing membership in the

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Florida Retirement System upon reemployment by the school

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system; repealing s. 121.093, F.S., relating to

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instructional personnel reemployment after retirement from

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the developmental research school or the Florida School

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for the Deaf and the Blind; repealing s. 121.094, F.S.,

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relating to instructional personnel reemployment after

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retirement from a charter school; repealing s. 121.45,

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F.S., relating to interstate compacts relating to pension

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portability; providing a declaration of important state

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interest; providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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71

     Section 1.  Subsections (10), (11), (18), paragraph (b) of

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subsection (22), and subsections (29), (52), and (53) of section

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121.021, Florida Statutes, are amended, and subsections (63) and

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(64) are added to that section, to read:

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     121.021  Definitions.--The following words and phrases as

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used in this chapter have the respective meanings set forth

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unless a different meaning is plainly required by the context:

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     (10)  "Employer" means any agency, branch, department,

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institution, university, institution of higher education, or

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board of the state, or any county agency, branch, department,

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board, district school board, or special district of the state,

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or any city of the state which participates in the system for the

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benefit of certain of its employees, or a charter school or

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charter technical career center that participates as provided in

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s. 121.051(2)(d). Employers are not agents of the department, the

86

state board, or the Division of Retirement, and the department,

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the state board, and the division are not responsible for

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erroneous information provided by representatives of employers.

89

     (11)  "Officer or employee" means any person receiving

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salary payments for work performed in a regularly established

91

position and, if employed by a city, a metropolitan planning

92

organization, or a special district, employed in a covered group.

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The term does not apply to:

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     (a) State employees covered by a leasing agreement under s.

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110.191, other public employees covered by a leasing agreement,

96

or to a co-employer relationship.

97

     (b) A person who is an inmate or prisoner at the time the

98

work is performed.

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     (18)  "Past service" of any member, as provided in s.

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121.081(1), means the number of years and complete months and any

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fractional part of a month, recognized and credited by an

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employer and approved by the administrator, during which the

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member was in the active employ of a governmental an employer and

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for which the employee is not entitled to a benefit prior to his

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or her date of participation.

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     (22)  "Compensation" means the monthly salary paid a member

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by his or her employer for work performed arising from that

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employment.

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     (b)  Under no circumstances shall compensation include:

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     1.  Fees paid professional persons for special or particular

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services or include salary payments made from a faculty practice

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plan authorized by the Board of Governors of the State University

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System for eligible clinical faculty at a state university with a

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faculty practice plan; or

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     2. Any Bonuses or other payments prohibited from inclusion

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in the member's average final compensation and defined in

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subsection (47); or.

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     3. Payment for work given to a person who is an inmate or

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prisoner at the time the work is performed.

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     (29) "Normal retirement date" means the first day of any

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month following the date a member attains normal retirement age

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and is vested, which is determined as follows one of the

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following statuses:

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     (a) If a Regular Class member, the member:

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     1. The first day of the month the member completes 6 or

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more years of creditable service and attains age 62; or

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     2. The first day of the month following the date the member

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completes 30 years of creditable service, regardless of age,

129

which may include a maximum of 4 years of military service credit

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as long as such credit is not claimed under any other system.

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     (b) If a Special Risk Class member, the member:

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     1. The first day of the month the member completes 6 or

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more years of creditable service in the Special Risk Class and

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attains age 55;

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     2. The first day of the month following the date the member

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completes 25 years of creditable service in the Special Risk

137

Class, regardless of age; or

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     3. The first day of the month following the date the member

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completes 25 years of creditable service and attains age 52,

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which service may include a maximum of 4 years of military

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service credit as long as such credit is not claimed under any

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other system and the remaining years are in the Special Risk

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Class.

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     (c) If a Senior Management Service Class member, the

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member:

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     1. The first day of the month the member completes 6 years

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of creditable service in the Senior Management Service Class and

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attains age 62; or

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     2. The first day of the month following the date the member

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completes 30 years of any creditable service, regardless of age,

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which may include a maximum of 4 years of military service credit

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as long as such credit is not claimed under any other system.

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     (d) If an Elected Officers' Class member, the member:

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     1. The first day of the month the member completes 6 years

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of creditable service in the Elected Officers' Class and attains

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age 62; or

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     2. The first day of the month following the date the member

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completes 30 years of any creditable service, regardless of age,

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which may include a maximum of 4 years of military service credit

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as long as such credit is not claimed under any other system.

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"Normal retirement age" is attained on the "normal retirement

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date."

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     (52)  "Regularly established position" is defined as

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follows:

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     (a) With respect to employment for In a state employer

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agency, the term means a position that which is authorized and

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established pursuant to law and is compensated from a salaries

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appropriation pursuant to s. 216.011(1)(dd), or an established

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position which is authorized pursuant to s. 216.262(1)(a) and (b)

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and is compensated from a salaries account as provided by rule.

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     (b) With respect to employment for In a local employer

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agency (district school board, county agency, community college,

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city, metropolitan planning organization, or special district),

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the term means a regularly established position that which will

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be in existence for a period beyond 6 consecutive months, except

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as provided by rule.

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     (53)  "Temporary position" is defined as follows:

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     (a) With respect to employment for In a state employer

180

agency, the term means an employment position that which is

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compensated from an other personal services (OPS) account, as

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provided for in s. 216.011(1)(dd).

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     (b) With respect to employment for In a local employer

184

agency, the term means an employment position that which will

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exist for less than 6 consecutive months, or other employment

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position as determined by rule of the division, regardless of

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whether it will exist for 6 consecutive months or longer.

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     (63) "State board" or "board" means the State Board of

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Administration.

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     (64) "Trustees" means the Board of Trustees of the State

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Board of Administration.

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     Section 2.  Subsection (6) is added to section 121.031,

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Florida Statutes, to read:

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     121.031  Administration of system; appropriation; oaths;

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actuarial studies; public records.--

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     (6) Unless prior written approval is obtained from the

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department or state board, any promotional materials or

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advertisements that, directly or indirectly, refer to the Florida

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Retirement System or the FRS, must contain a disclaimer that the

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information is not approved or endorsed by the Florida Retirement

201

System.

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     Section 3.  Paragraph (a) of subsection (1) and paragraph

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(f) of subsection (2) of section 121.051, Florida Statutes, are

204

amended, and subsection (10) is added to that section, to read:

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     121.051  Participation in the system.--

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     (1)  COMPULSORY PARTICIPATION.--

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     (a) The provisions of this law are shall be compulsory as

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to all officers and employees, except elected officers who meet

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the requirements of s. 121.052(3), who are employed on or after

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December 1, 1970, by of an employer other than those referred to

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in paragraph (2)(b), and each officer or employee, as a condition

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of employment, shall become a member of the system as of his or

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her date of employment, except that a person who is retired from

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any state retirement system and is reemployed on or after

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December 1, 1970, may shall not be permitted to renew his or her

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membership in any state retirement system except as provided in

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s. 121.091(4)(h) for a person who recovers from disability, and

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as provided in s. 121.091(9)(b)10. s. 121.091(9)(b)8. for a

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person who is elected to public office, and, effective July 1,

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1991, as provided in s. 121.122 for all other retirees. Officers

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and employees of the University Athletic Association, Inc., a

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nonprofit association connected with the University of Florida,

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employed on and after July 1, 1979, may shall not participate in

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any state-supported retirement system. Any person appointed on or

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after July 1, 1989, to a faculty position in a college at the J.

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Hillis Miller Health Center at the University of Florida or the

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Medical Center at the University of South Florida which has a

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faculty practice plan adopted provided by rule may adopted by the

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Board of Regents shall not participate in the Florida Retirement

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System. A faculty member so appointed shall participate in the

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optional retirement program on the basis of his or her state-

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funded compensation, notwithstanding the provisions of s.

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121.35(2)(a).

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     (2)  OPTIONAL PARTICIPATION.--

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     (f)1. If Whenever an employer that participates in the

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Florida Retirement System undertakes the transfer, merger, or

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consolidation of governmental services or assumes the functions

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or activities of an employing governmental entity that was not an

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employer under the system, the employer must notify the

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department at least 60 days prior to such action and shall

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provide documentation as required by the department. The

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transfer, merger, or consolidation of governmental services or

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assumption of governmental functions and activities must occur

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between public employers. The current or former employer may pay

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the employees' past service cost unless prohibited under this

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chapter. This paragraph does not apply to the transfer, merger,

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or consolidation of governmental services or assumption of

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functions and activities of a public entity under a leasing

249

agreement having a co-employer relationship. Employers and

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employees of a public governmental employer whose service is

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covered by a leasing agreement under s. 110.191, other leasing

252

agreement, or a co-employer relationship are not eligible to

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participate in the Florida Retirement System.

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     2. If When the agency to which a member's employing unit is

255

transferred, merged, or consolidated does not participate in the

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Florida Retirement System, a member may shall elect in writing to

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remain in the Florida Retirement System or to transfer to the

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local retirement system operated by the such agency. If such

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agency does not participate in a local retirement system, the

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member shall continue membership in the Florida Retirement

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System. In either case, the membership continues shall continue

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for as long as the member is employed by the agency to which his

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or her unit was transferred, merged, or consolidated.

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     (10) PROHIBITED PARTICIPATION.--A person who is an inmate

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or prisoner at the time the work is performed is prohibited from

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participating in, or receiving benefits from, any part of the

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Florida Retirement System based on such work.

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     Section 4.  Paragraph (e) of subsection (3) of section

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121.052, Florida Statutes, is amended to read:

270

     121.052  Membership class of elected officers.--

271

     (3)  PARTICIPATION AND WITHDRAWAL, GENERALLY.--Effective

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July 1, 1990, participation in the Elected Officers' Class shall

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be compulsory for elected officers listed in paragraphs (2)(a)-

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(d) and (f) assuming office on or after said date, unless the

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elected officer elects membership in another class or withdraws

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from the Florida Retirement System as provided in paragraphs

277

(3)(a)-(d):

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     (e) Effective July 1, 2008 July 1, 2001, the governing body

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of a municipality or special district may, by majority vote,

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elect to designate all its elected positions for inclusion in the

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Elected Officers' Class. Such election shall be made between July

282

1, 2008, and December 31, 2008 July 1, 2001, and December 31,

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2001, and shall be irrevocable. The designation of such positions

284

shall be effective the first day of the month following receipt

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by the department of the ordinance or resolution passed by the

286

governing body.

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     Section 5.  Paragraph (a) of subsection (6) of section

288

121.071, Florida Statutes, is amended to read:

289

     121.071  Contributions.--Contributions to the system shall

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be made as follows:

291

     (6)(a)  Required employee contributions for all service

292

other than current service, including, but not limited to, prior

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service, past service, military service, leave-of-absence

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service, out-of-state service, and certain non-Florida Retirement

295

System in-state service, shall be paid by cash, personal check,

296

cashier's check, or money order, or a direct rollover or transfer

297

from a qualified plan as provided under the Internal Revenue

298

Code. The payment must only; shall be accompanied by a statement

299

identifying the service for which payment is made,; and shall be

300

made in a lump sum for the total amount due or in annual payments

301

of not less than $100, except for the final payment if less than

302

$100, unless another method of payment is authorized by law or

303

rule.

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     Section 6.  Paragraphs (f) and (h) of subsection (1) of

305

section 121.081, Florida Statutes, are amended to read:

306

     121.081  Past service; prior service;

307

contributions.--Conditions under which past service or prior

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service may be claimed and credited are:

309

     (1)

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     (f) If When any person, either prior to this act or

311

hereafter, becomes entitled to and participates does participate

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in one of the retirement systems under consolidated within or

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created by this chapter through the consolidation or merger of

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governments or the transfer of functions between units of

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government, either at the state or local level or between state

316

and local units, or through the assumption of functions or

317

activities by a state or local unit from an employing

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governmental entity that which was not an employer under the

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system, and such person becomes a member of the Florida

320

Retirement System, such person is shall be entitled to receive

321

past-service credit as defined in s. 121.021(18) for the time the

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such person performed services for, and was an employee of, such

323

state or local unit or other governmental employing entity prior

324

to the transfer, merger, consolidation, or assumption of

325

functions and activities. Past-service credit allowed by this

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paragraph is shall also be available to any person who becomes a

327

member of an existing system, as defined in s. 121.021(2), prior

328

to December 1, 1970, through the transfer, merger, consolidation,

329

or assumption of functions and activities set forth in this

330

paragraph and who subsequently becomes a member of the Florida

331

Retirement System. However, credit for the past service may not

332

be granted until contributions are made in the manner provided in

333

this subsection. If a person rejected Florida Retirement System

334

membership at the time of the transfer, merger, or consolidation,

335

or assumption the required contributions shall be at total

336

actuarial cost as specified in paragraph (e). Such contributions

337

or accrued interest may not be paid from any public state funds.

338

     (h)  The following provisions apply to the purchase of past

339

service:

340

     1.  Notwithstanding any of the provisions of this

341

subsection, past-service credit may not be purchased under this

342

chapter for any service that is used to obtain a pension or

343

benefit from a any local retirement system. Eligibility to

344

receive or the receipt of contributions to a retirement plan made

345

by the employer on behalf of the employee is considered a

346

benefit.

347

     2.  A member may not receive past service credit under

348

paragraphs (a), (b), (e), or (f) for any leaves of absence

349

without pay, except that credit for active military service

350

leaves of absence may be claimed under paragraphs (a), (b), and

351

(f), in accordance with s. 121.111(1).

352

     3. A member may not receive past service credit for co-

353

employer service. Co-employer service or a co-employer

354

relationship is employment in a single position simultaneously

355

covered and reported by both a public employer and a private

356

employer.

357

     4.3. If a member does not want desire to receive credit for

358

all of his or her past service, the period the member claims must

359

be the most recent past service prior to his or her participation

360

in the Florida Retirement System.

361

     5.4. The cost of past service purchased by an employing

362

agency for its employees may be amortized over the such period of

363

time as is provided in the agreement, but not to exceed 15 years,

364

calculated in accordance with rule 60S-1.007(5)(f), Florida

365

Administrative Code.

366

     6.5. The retirement account of each member for whom past

367

service is being provided by his or her employer shall be

368

credited with all past service the employer agrees to purchase as

369

soon as the agreement between the employer and the department is

370

executed. Pursuant thereto:

371

     a. Each such member's account shall also be posted with the

372

total contribution his or her employer agrees to make on in the

373

member's behalf for past service earned prior to October 1, 1975,

374

excluding those contributions representing the employer's

375

matching share and the compound interest calculation on the total

376

contribution. However, a portion of any contributions paid by an

377

employer for past service credit earned on and after October 1,

378

1975, may not be posted to the a member's account.

379

     b.  A refund of contributions payable after an employer has

380

made a written agreement to purchase past service for employees

381

of the covered group includes shall include contributions for

382

past service which are posted to a member's account. However,

383

contributions for past service earned on and after October 1,

384

1975, are not refundable.

385

     Section 7.  Paragraph (b) of subsection (9), paragraphs (a),

386

(b), and (c) of subsection (13), and paragraphs (b) through (f)

387

of subsection (14) of section 121.091, Florida Statutes, are

388

amended to read:

389

     121.091  Benefits payable under the system.--Benefits may

390

not be paid under this section unless the member has terminated

391

employment as provided in s. 121.021(39)(a) or begun

392

participation in the Deferred Retirement Option Program as

393

provided in subsection (13), and a proper application has been

394

filed in the manner prescribed by the department. The department

395

may cancel an application for retirement benefits when the member

396

or beneficiary fails to timely provide the information and

397

documents required by this chapter and the department's rules.

398

The department shall adopt rules establishing procedures for

399

application for retirement benefits and for the cancellation of

400

such application when the required information or documents are

401

not received.

402

     (9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.--

403

     (b)1.  Any person who is retired under this chapter, except

404

under the disability retirement provisions of subsection (4), may

405

be reemployed by any private or public employer after retirement

406

and receive retirement benefits and compensation from the his or

407

her employer without limitation any limitations, except that the

408

a person may not receive both a salary from reemployment with any

409

agency participating in the Florida Retirement System and

410

retirement benefits under this chapter for a period of 12 months

411

immediately after subsequent to the date of retirement. However,

412

a DROP participant may shall continue employment and receive a

413

salary during the period of participation in DROP the Deferred

414

Retirement Option Program, as provided in subsection (13).

415

     2.  Any person to whom the limitation in subparagraph 1.

416

applies who violates such reemployment limitation and who is

417

reemployed with any agency participating in the Florida

418

Retirement System after he or she has been retired for 1 calendar

419

month but before completion of the 12-month limitation period

420

must shall give timely notice of this fact in writing to the

421

employer and to the Division of Retirement and shall have his or

422

her retirement benefits suspended while employed during for the

423

balance of the 12-month limitation period unless the person

424

exceeds the 780-hour limitation in subparagraph 4., subparagraph

425

5., or subparagraph 11. Any person employed in violation of this

426

paragraph and any employing agency that which knowingly employs

427

or appoints such person without notifying the division of

428

Retirement to suspend retirement benefits are shall be jointly

429

and severally liable for reimbursement to the retirement trust

430

fund of any benefits paid during the reemployment limitation

431

period. To avoid liability, the such employing agency must shall

432

have a written statement from the retiree that he or she is not

433

retired from a state-administered retirement system. Any

434

retirement benefits received while reemployed during this

435

reemployment limitation period must shall be repaid to the

436

Florida Retirement System Trust Fund, and retirement benefits

437

shall remain suspended until such repayment has been made.

438

Benefits suspended beyond the reemployment limitation shall apply

439

toward repayment of benefits received in violation of the

440

reemployment limitation.

441

     3.  A district school board may reemploy a retired member as

442

a substitute or hourly teacher, education paraprofessional,

443

transportation assistant, bus driver, or food service worker on a

444

noncontractual basis after he or she has been retired for 1

445

calendar month, in accordance with s. 121.021(39). A district

446

school board may reemploy a retired member as instructional

447

personnel, as defined in s. 1012.01(2)(a), on an annual

448

contractual basis after he or she has been retired for 1 calendar

449

month, in accordance with s. 121.021(39). Any other retired

450

member who is reemployed within 1 calendar month after retirement

451

voids shall void his or her application for retirement benefits.

452

District school boards reemploying such teachers, education

453

paraprofessionals, transportation assistants, bus drivers, or

454

food service workers are subject to the retirement contribution

455

required by subparagraph 9. 7.

456

     4.  A community college board of trustees may reemploy a

457

retired member as an adjunct instructor, that is, an instructor

458

who is noncontractual and part-time, or as a participant in a

459

phased retirement program within the Florida Community College

460

System, after he or she has been retired for 1 calendar month, in

461

accordance with s. 121.021(39). Any retired member who is

462

reemployed within 1 calendar month after retirement voids shall

463

void his or her application for retirement benefits. Boards of

464

trustees reemploying such instructors are subject to the

465

retirement contribution required in subparagraph 7. A retired

466

member may be reemployed as an adjunct instructor for no more

467

than 780 hours during the first 12 months of retirement. Any

468

retired member reemployed for more than 780 hours during the

469

first 12 months of retirement must shall give timely notice in

470

writing to the employer and to the Division of Retirement of the

471

date he or she will exceed the limitation. The division shall

472

suspend his or her retirement benefits for the remainder of the

473

first 12 months of retirement. Any person employed in violation

474

of this subparagraph and any employing agency that which

475

knowingly employs or appoints such person without notifying the

476

division of Retirement to suspend retirement benefits are shall

477

be jointly and severally liable for reimbursement to the

478

retirement trust fund of any benefits paid during the

479

reemployment limitation period. To avoid liability, the such

480

employing agency must shall have a written statement from the

481

retiree that he or she is not retired from a state-administered

482

retirement system. Any retirement benefits received by a retired

483

member while reemployed in excess of 780 hours during the first

484

12 months of retirement must shall be repaid to the Florida

485

Retirement System Trust Fund, and retirement benefits shall

486

remain suspended until repayment is made. Benefits suspended

487

beyond the end of the retired member's first 12 months of

488

retirement shall apply toward repayment of benefits received in

489

violation of the 780-hour reemployment limitation.

490

     5.  The State University System may reemploy a retired

491

member as an adjunct faculty member or as a participant in a

492

phased retirement program within the State University System

493

after the retired member has been retired for 1 calendar month,

494

in accordance with s. 121.021(39). A Any retired member who is

495

reemployed within 1 calendar month after retirement voids shall

496

void his or her application for retirement benefits. The State

497

University System is subject to the retired contribution required

498

in subparagraph 9. 7., as appropriate. A retired member may be

499

reemployed as an adjunct faculty member or a participant in a

500

phased retirement program for no more than 780 hours during the

501

first 12 months of his or her retirement. Any retired member

502

reemployed for more than 780 hours during the first 12 months of

503

retirement must shall give timely notice in writing to the

504

employer and to the Division of Retirement of the date he or she

505

will exceed the limitation. The division shall suspend his or her

506

retirement benefits for the remainder of the first 12 months of

507

retirement. Any person employed in violation of this subparagraph

508

and any employing agency that which knowingly employs or appoints

509

such person without notifying the division of Retirement to

510

suspend retirement benefits are shall be jointly and severally

511

liable for reimbursement to the retirement trust fund of any

512

benefits paid during the reemployment limitation period. To avoid

513

liability, such employing agency must shall have a written

514

statement from the retiree that he or she is not retired from a

515

state-administered retirement system. Any retirement benefits

516

received by a retired member while reemployed in excess of 780

517

hours during the first 12 months of retirement must shall be

518

repaid to the Florida Retirement System Trust Fund, and

519

retirement benefits shall remain suspended until repayment is

520

made. Benefits suspended beyond the end of the retired member's

521

first 12 months of retirement shall apply toward repayment of

522

benefits received in violation of the 780-hour reemployment

523

limitation.

524

     6.  The Board of Trustees of the Florida School for the Deaf

525

and the Blind may reemploy a retired member as a substitute

526

teacher, substitute residential instructor, or substitute nurse

527

on a noncontractual basis after he or she has been retired for 1

528

calendar month, in accordance with s. 121.021(39). The Board of

529

Trustees of the Florida School for the Deaf and the Blind may

530

reemploy a retired member as instructional personnel, as defined

531

in s. 1012.01(2)(a), on an annual contractual basis after he or

532

she has been retired for 1 calendar month, in accordance with s.

533

121.021(39). Any retired member who is reemployed within 1

534

calendar month after retirement voids shall void his or her

535

application for retirement benefits. The Board of Trustees of the

536

Florida School for the Deaf and the Blind reemploying such

537

teachers, residential instructors, or nurses is subject to the

538

retirement contribution required by subparagraph 9. 7.

539

Reemployment of a retired member as a substitute teacher,

540

substitute residential instructor, or substitute nurse is limited

541

to 780 hours during the first 12 months of his or her retirement.

542

Any retired member reemployed for more than 780 hours during the

543

first 12 months of retirement shall give timely notice in writing

544

to the employer and to the division of the date he or she will

545

exceed the limitation. The division shall suspend his or her

546

retirement benefits for the remainder of the first 12 months of

547

retirement. Any person employed in violation of this subparagraph

548

and any employing agency which knowingly employs or appoints such

549

person without notifying the Division of Retirement to suspend

550

retirement benefits shall be jointly and severally liable for

551

reimbursement to the retirement trust fund of any benefits paid

552

during the reemployment limitation period. To avoid liability,

553

such employing agency shall have a written statement from the

554

retiree that he or she is not retired from a state-administered

555

retirement system. Any retirement benefits received by a retired

556

member while reemployed in excess of 780 hours during the first

557

12 months of retirement shall be repaid to the Retirement System

558

Trust Fund, and his or her retirement benefits shall remain

559

suspended until payment is made. Benefits suspended beyond the

560

end of the retired member's first 12 months of retirement shall

561

apply toward repayment of benefits received in violation of the

562

780-hour reemployment limitation.

563

     7. A developmental research school may reemploy a retired

564

member as a substitute or hourly teacher or an education

565

paraprofessional as defined in s. 1012.01(2) on a noncontractual

566

basis after he or she has been retired for 1 calendar month, in

567

accordance with s. 121.021(39). A developmental research school

568

may reemploy a retired member as instructional personnel, as

569

defined in s. 1012.01(2)(a), on an annual contractual basis after

570

he or she has been retired for 1 calendar month, in accordance

571

with s. 121.021(39). Any other retired member who is reemployed

572

within 1 calendar month after retirement voids his or her

573

application for retirement benefits. A developmental research

574

school that reemploys retired teachers and education

575

paraprofessionals are subject to the retirement contribution

576

required by subparagraph 9.

577

     8. A charter school may reemploy a retired member as a

578

substitute or hourly teacher on a noncontractual basis after he

579

or she has been retired for 1 calendar month, in accordance with

580

s. 121.021(39). A charter school may reemploy a retired member as

581

instructional personnel, as defined in s. 1012.01(2(a), on an

582

annual contractual basis after he or she has been retired for 1

583

calendar month, in accordance with s. 121.021(39). Any other

584

retired member who is reemployed within 1 calendar month after

585

retirement voids his or her application for retirement benefits.

586

A charter school that reemploys such teachers is subject to the

587

retirement contribution required by subparagraph 9.

588

     9.7. The employment by an employer of a any retiree or DROP

589

participant of a any state-administered retirement system does

590

not affect shall have no effect on the average final compensation

591

or years of creditable service of the retiree or DROP

592

participant. Prior to July 1, 1991, upon employment of any

593

person, other than an elected officer as provided in s. 121.053,

594

who is has been retired under a any state-administered retirement

595

program, the employer shall pay retirement contributions in an

596

amount equal to the unfunded actuarial liability portion of the

597

employer contribution which would be required for regular members

598

of the Florida Retirement System. Effective July 1, 1991,

599

contributions shall be made as provided in s. 121.122 for

600

retirees who have with renewed membership or, as provided in

601

subsection (13), for with respect to DROP participants.

602

     10.8. Any person who has previously retired and who is

603

holding an elective public office or an appointment to an

604

elective public office eligible for the Elected Officers' Class

605

on or after July 1, 1990, shall be enrolled in the Florida

606

Retirement System as provided in s. 121.053(1)(b) or, if holding

607

an elective public office that does not qualify for the Elected

608

Officers' Class on or after July 1, 1991, shall be enrolled in

609

the Florida Retirement System as provided in s. 121.122, and

610

shall continue to receive retirement benefits as well as

611

compensation for the elected officer's service for as long as he

612

or she remains in elective office. However, any retired member

613

who served in an elective office prior to July 1, 1990, suspended

614

his or her retirement benefit, and had his or her Florida

615

Retirement System membership reinstated shall, upon retirement

616

from such office, have his or her retirement benefit recalculated

617

to include the additional service and compensation earned.

618

     11.9. Any person who is holding an elective public office

619

which is covered by the Florida Retirement System and who is

620

concurrently employed in nonelected covered employment may elect

621

to retire while continuing employment in the elective public

622

office, if provided that he or she terminates shall be required

623

to terminate his or her nonelected covered employment. Any person

624

who exercises this election shall receive his or her retirement

625

benefits in addition to the compensation of the elective office

626

without regard to the time limitations otherwise provided in this

627

subsection. A No person who seeks to exercise the provisions of

628

this subparagraph, as they the same existed prior to May 3, 1984,

629

may not shall be deemed to be retired under those provisions,

630

unless such person is eligible to retire under the provisions of

631

this subparagraph, as amended by chapter 84-11, Laws of Florida.

632

     10. The limitations of this paragraph apply to reemployment

633

in any capacity with an "employer" as defined in s. 121.021(10),

634

irrespective of the category of funds from which the person is

635

compensated.

636

     12.11. An employing agency may reemploy a retired member as

637

a firefighter or paramedic after the retired member has been

638

retired for 1 calendar month, in accordance with s. 121.021(39).

639

Any retired member who is reemployed within 1 calendar month

640

after retirement voids shall void his or her application for

641

retirement benefits. The employing agency reemploying such

642

firefighter or paramedic is subject to the retired contribution

643

required in subparagraph 9. 8. Reemployment of a retired

644

firefighter or paramedic is limited to no more than 780 hours

645

during the first 12 months of his or her retirement. Any retired

646

member reemployed for more than 780 hours during the first 12

647

months of retirement must shall give timely notice in writing to

648

the employer and to the Division of Retirement of the date he or

649

she will exceed the limitation. The division shall suspend his or

650

her retirement benefits for the remainder of the first 12 months

651

of retirement. Any person employed in violation of this

652

subparagraph and any employing agency that which knowingly

653

employs or appoints such person without notifying the division of

654

Retirement to suspend retirement benefits shall be jointly and

655

severally liable for reimbursement to the Retirement System Trust

656

Fund of any benefits paid during the reemployment limitation

657

period. To avoid liability, such employing agency must shall have

658

a written statement from the retiree that he or she is not

659

retired from a state-administered retirement system. Any

660

retirement benefits received by a retired member while reemployed

661

in excess of 780 hours during the first 12 months of retirement

662

must shall be repaid to the Florida Retirement System Trust Fund,

663

and retirement benefits shall remain suspended until repayment is

664

made. Benefits suspended beyond the end of the retired member's

665

first 12 months of retirement shall apply toward repayment of

666

benefits received in violation of the 780-hour reemployment

667

limitation.

668

     13. The limitations of this paragraph apply to reemployment

669

in any capacity with an employer, as defined in s. 121.021,

670

irrespective of the category of funds from which the person is

671

compensated.

672

     14. The reemployment after retirement provisions of this

673

paragraph apply to DROP participants effective upon termination

674

from employment and the end of DROP participation.

675

     (13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and

676

subject to the provisions of this section, the Deferred

677

Retirement Option Program, hereinafter referred to as the DROP,

678

is a program under which an eligible member of the Florida

679

Retirement System may elect to participate, deferring receipt of

680

retirement benefits while continuing employment with his or her

681

Florida Retirement System employer. The deferred monthly benefits

682

shall accrue in the System Trust Fund on behalf of the

683

participant, plus interest compounded monthly, for the specified

684

period of the DROP participation, as provided in paragraph (c).

685

Upon termination of employment, the participant shall receive the

686

total DROP benefits and begin to receive the previously

687

determined normal retirement benefits. Participation in the DROP

688

does not guarantee employment for the specified period of DROP.

689

Participation in the DROP by an eligible member beyond the

690

initial 60-month period as authorized in this subsection shall be

691

on an annual contractual basis for all participants.

692

     (a) Eligibility of member to participate in the DROP.--All

693

active Florida Retirement System members in a regularly

694

established position, and all active members of either the

695

Teachers' Retirement System established in chapter 238 or the

696

State and County Officers' and Employees' Retirement System

697

established in chapter 122, which systems are consolidated within

698

the Florida Retirement System under s. 121.011, are eligible to

699

elect participation in the DROP if provided that:

700

     1. The member is not a renewed member of the Florida

701

Retirement System under s. 121.122, or a member of the State

702

Community College System Optional Retirement Program under s.

703

121.051, the Senior Management Service Optional Annuity Program

704

under s. 121.055, or the optional retirement program for the

705

State University System under s. 121.35.

706

     2.  Except as provided in subparagraph 6., election to

707

participate is made within 12 months immediately following the

708

date on which the member first reaches normal retirement date,

709

or, for a member who reaches normal retirement date based on

710

service before he or she reaches age 62, or age 55 for Special

711

Risk Class members, election to participate may be deferred to

712

the 12 months immediately following the date the member attains

713

57, or age 52 for Special Risk Class members. For a member who

714

first reached normal retirement date or the deferred eligibility

715

date described above prior to the effective date of this section,

716

election to participate shall be made within 12 months after the

717

effective date of this section. A member who fails to make an

718

election within the such 12-month limitation period forfeits

719

shall forfeit all rights to participate in the DROP. The member

720

shall advise his or her employer and the division in writing of

721

the date on which the DROP begins shall begin. The Such beginning

722

date may be subsequent to the 12-month election period, but must

723

be within the original 60-month participation or, with respect to

724

members who are instructional personnel employed by the Florida

725

School for the Deaf and the Blind and who have received

726

authorization by the Board of Trustees of the Florida School for

727

the Deaf and the Blind to participate in the DROP beyond 60

728

months, or who are instructional personnel as defined in s.

729

1012.01(2)(a)-(d) in grades K-12 and who have received

730

authorization by the district school superintendent to

731

participate in the DROP beyond 60 months, the 96-month limitation

732

period as provided in subparagraph (b)1. When establishing

733

eligibility of the member to participate in the DROP for the 60-

734

month or, with respect to members who are instructional personnel

735

employed by the Florida School for the Deaf and the Blind and who

736

have received authorization by the Board of Trustees of the

737

Florida School for the Deaf and the Blind to participate in the

738

DROP beyond 60 months, or who are instructional personnel as

739

defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have

740

received authorization by the district school superintendent to

741

participate in the DROP beyond 60 months, the 96-month maximum

742

participation period, the member may elect to include or exclude

743

any optional service credit purchased by the member from the

744

total service used to establish the normal retirement date. A

745

member who has with dual normal retirement dates is shall be

746

eligible to elect to participate in DROP within 12 months after

747

attaining normal retirement date in either class.

748

     3. The employer of a member electing to participate in the

749

DROP, or employers if dually employed, shall acknowledge in

750

writing to the division the date the member's participation in

751

the DROP begins and the date the member's employment and DROP

752

participation will terminate.

753

     4.  Simultaneous employment of a participant by additional

754

Florida Retirement System employers subsequent to the

755

commencement of participation in the DROP is shall be permissible

756

if provided such employers acknowledge in writing a DROP

757

termination date no later than the participant's existing

758

termination date or the maximum participation 60-month limitation

759

period as provided in subparagraph (b)1.

760

     5.  A DROP participant may change employers while

761

participating in the DROP, subject to the following:

762

     a.  A change of employment must take place without a break

763

in service so that the member receives salary for each month of

764

continuous DROP participation. If a member receives no salary

765

during a month, DROP participation shall cease unless the

766

employer verifies a continuation of the employment relationship

767

for such participant pursuant to s. 121.021(39)(b).

768

     b.  Such participant and new employer shall notify the

769

division of the identity of the new employer on forms required by

770

the division as to the identity of the new employer.

771

     c.  The new employer shall acknowledge, in writing, the

772

participant's DROP termination date, which may be extended but

773

not beyond the original 60-month participation or, with respect

774

to members who are instructional personnel employed by the

775

Florida School for the Deaf and the Blind and who have received

776

authorization by the Board of Trustees of the Florida School for

777

the Deaf and the Blind to participate in the DROP beyond 60

778

months, or who are instructional personnel as defined in s.

779

1012.01(2)(a)-(d) in grades K-12 and who have received

780

authorization by the district school superintendent to

781

participate in the DROP beyond 60 months, the 96-month period

782

provided in subparagraph (b)1., shall acknowledge liability for

783

any additional retirement contributions and interest required if

784

the participant fails to timely terminate employment, and is

785

shall be subject to the adjustment required in sub-subparagraph

786

(c)5.d.

787

     6.  Effective July 1, 2001, for instructional personnel as

788

defined in s. 1012.01(2), election to participate in the DROP may

789

shall be made at any time following the date on which the member

790

first reaches normal retirement date. The member shall advise his

791

or her employer and the division in writing of the date on which

792

DROP begins the Deferred Retirement Option Program shall begin.

793

When establishing eligibility of the member to participate in the

794

DROP for the 60-month or, with respect to members who are

795

instructional personnel employed by the Florida School for the

796

Deaf and the Blind and who have received authorization by the

797

Board of Trustees of the Florida School for the Deaf and the

798

Blind to participate in the DROP beyond 60 months, or who are

799

instructional personnel as defined in s. 1012.01(2)(a)-(d) in

800

grades K-12 and who have received authorization by the district

801

school superintendent to participate in the DROP beyond 60

802

months, the 96-month maximum participation period, as provided in

803

sub-subparagraph (b)(1)a. subparagraph (b)1., the member may

804

elect to include or exclude any optional service credit purchased

805

by the member from the total service used to establish the normal

806

retirement date. A member who has with dual normal retirement

807

dates is shall be eligible to elect to participate in either

808

class.

809

     (b) Participation in the DROP.--

810

     1.a. Except as provided in sub-subparagraph b., an eligible

811

member may elect to participate in the DROP for a period not to

812

exceed a maximum of 60 calendar months. or, with respect to

813

     b. Members who are instructional personnel employed by the

814

Florida School for the Deaf and the Blind and authorized who have

815

received authorization by the Board of Trustees of the Florida

816

School for the Deaf and the Blind to participate in the DROP

817

beyond 60 months, or who are instructional personnel as defined

818

in s. 1012.01(2)(a)-(d) in grades K-12 and authorized who have

819

received authorization by the district school superintendent to

820

participate in the DROP beyond 60 calendar months, or who are

821

instructional personnel, as defined in s. 1012.01(2), employed by

822

a developmental research school and authorized by the school's

823

director, or if the school has no director, by the school's

824

principal, may participate in DROP for up to 36 calendar months

825

beyond the 60-month period specified in sub-subparagraph a. 96

826

calendar months immediately following the date on which the

827

member first reaches his or her normal retirement date or the

828

date to which he or she is eligible to defer his or her election

829

to participate as provided in subparagraph (a)2. However, a

830

member who has reached normal retirement date prior to the

831

effective date of the DROP shall be eligible to participate in

832

the DROP for a period of time not to exceed 60 calendar months

833

or, with respect to members who are instructional personnel

834

employed by the Florida School for the Deaf and the Blind and who

835

have received authorization by the Board of Trustees of the

836

Florida School for the Deaf and the Blind to participate in the

837

DROP beyond 60 months, or who are instructional personnel as

838

defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have

839

received authorization by the district school superintendent to

840

participate in the DROP beyond 60 calendar months, 96 calendar

841

months immediately following the effective date of the DROP,

842

except a member of the Special Risk Class who has reached normal

843

retirement date prior to the effective date of the DROP and whose

844

total accrued value exceeds 75 percent of average final

845

compensation as of his or her effective date of retirement shall

846

be eligible to participate in the DROP for no more than 36

847

calendar months immediately following the effective date of the

848

DROP.

849

     2. Upon deciding to participate in the DROP, the member

850

shall submit, on forms required by the division:

851

     a. A written election to participate in the DROP;

852

     b. Selection of the DROP participation and termination

853

dates, which satisfy the limitations stated in paragraph (a) and

854

subparagraph 1. The Such termination date must shall be in a

855

binding letter of resignation to with the employer, establishing

856

a deferred termination date. The member may change the

857

termination date within the limitations of subparagraph 1., but

858

only with the written approval of the his or her employer;

859

     c.  A properly completed DROP application for service

860

retirement as provided in this section; and

861

     d.  Any other information required by the division.

862

     3. The DROP participant is shall be a retiree under the

863

Florida Retirement System for all purposes, except for paragraph

864

(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053, and

865

121.122. DROP participation is final and cannot be cancelled by

866

the participant after the first payment is credited during the

867

DROP participation period. However, participation in the DROP

868

does not alter the participant's employment status and the member

869

is such employee shall not be deemed retired from employment

870

until his or her deferred resignation is effective and

871

termination occurs as provided in s. 121.021(39).

872

     4. Elected officers are shall be eligible to participate in

873

the DROP subject to the following:

874

     a.  An elected officer who reaches normal retirement date

875

during a term of office may defer the election to participate in

876

the DROP until the next succeeding term in that office. An Such

877

elected officer who exercises this option may participate in the

878

DROP for up to 60 calendar months or a period of no longer than

879

the such succeeding term of office, whichever is less.

880

     b.  An elected or a nonelected participant may run for a

881

term of office while participating in DROP and, if elected,

882

extend the DROP termination date accordingly, except, however, if

883

such additional term of office exceeds the 60-month limitation

884

established in subparagraph 1., and the officer does not resign

885

from office within such 60-month limitation, the retirement and

886

the participant's DROP is shall be null and void as provided in

887

sub-subparagraph (c)5.d.

888

     c.  An elected officer who is dually employed and elects to

889

participate in DROP must shall be required to satisfy the

890

definition of termination within the 60-month participation or,

891

with respect to members who are instructional personnel employed

892

by the Florida School for the Deaf and the Blind and who have

893

received authorization by the Board of Trustees of the Florida

894

School for the Deaf and the Blind to participate in the DROP

895

beyond 60 months, or who are instructional personnel as defined

896

in s. 1012.01(2)(a)-(d) in grades K-12 and who have received

897

authorization by the district school superintendent to

898

participate in the DROP beyond 60 months, the 96-month limitation

899

period as provided in subparagraph 1. for the nonelected position

900

and may continue employment as an elected officer as provided in

901

s. 121.053. The elected officer shall will be enrolled as a

902

renewed member in the Elected Officers' Class or the Regular

903

Class, as provided in ss. 121.053 and 121.122, on the first day

904

of the month after termination of employment in the nonelected

905

position and termination of DROP. Distribution of the DROP

906

benefits shall be made as provided in paragraph (c).

907

     (c) Benefits payable under the DROP.--

908

     1. Effective on with the date of DROP participation, the

909

member's initial normal monthly benefit, including creditable

910

service, optional form of payment, and average final

911

compensation, and the effective date of retirement are shall be

912

fixed. The beneficiary established under the Florida Retirement

913

System shall be the beneficiary eligible to receive any DROP

914

benefits payable if the DROP participant dies prior to the

915

completion of the period of DROP participation. If In the event a

916

joint annuitant predeceases the member, the member may name a

917

beneficiary to receive accumulated DROP benefits payable. The

918

Such retirement benefit, the annual cost of living adjustments

919

provided in s. 121.101, and interest shall accrue monthly in the

920

Florida Retirement System Trust Fund. The Such interest shall

921

accrue at an effective annual rate of 6.5 percent compounded

922

monthly, on the prior month's accumulated ending balance, up to

923

the month of termination or death.

924

     2. Each employee who elects to participate in the DROP may

925

shall be allowed to elect to receive a lump-sum payment for

926

accrued annual leave earned in accordance with agency policy upon

927

beginning participation in the DROP. The Such accumulated leave

928

payment certified to the division upon commencement of DROP shall

929

be included in the calculation of the member's average final

930

compensation. The employee electing the such lump-sum payment is

931

upon beginning participation in DROP will not be eligible to

932

receive a second lump-sum payment upon termination, except to the

933

extent the employee has earned additional annual leave which,

934

combined with the original payment, does not exceed the maximum

935

lump-sum payment allowed by the employing agency's policy or

936

rules. An Such early lump-sum payment shall be based on the

937

hourly wage of the employee at the time he or she begins

938

participation in the DROP. If the member elects to wait and

939

receive a such lump-sum payment upon termination of DROP and

940

termination of employment with the employer, any accumulated

941

leave payment made at that time may not cannot be included in the

942

member's retirement benefit, which was determined and fixed by

943

law when the employee elected to participate in the DROP.

944

     3.  The effective date of DROP participation and the

945

effective date of retirement of a DROP participant shall be the

946

first day of the month selected by the member to begin

947

participation in the DROP, provided such date is properly

948

established, with the written confirmation of the employer, and

949

the approval of the division, on forms required by the division.

950

     4. Normal retirement benefits and any interest thereon

951

shall continue to accrue in the DROP until the established

952

termination date of the DROP, or until the participant terminates

953

employment or dies prior to such date. Although individual DROP

954

accounts shall not be established, a separate accounting of each

955

participant's accrued benefits under the DROP shall be calculated

956

and provided to participants.

957

     5.  At the conclusion of the participant's DROP, the

958

division shall distribute the participant's total accumulated

959

DROP benefits, subject to the following provisions:

960

     a.  The division shall receive verification by the

961

participant's employer or employers that the such participant has

962

terminated employment as provided in s. 121.021(39)(b).

963

     b. The terminated DROP participant or, if deceased, the

964

such participant's named beneficiary, shall elect on forms

965

provided by the division to receive payment of the DROP benefits

966

in accordance with one of the options listed below. If For a

967

participant or beneficiary who fails to elect a method of payment

968

within 60 days of termination of the DROP, the division shall

969

will pay a lump sum as provided in sub-sub-subparagraph (I).

970

     (I)  Lump sum.--All accrued DROP benefits, plus interest,

971

less withholding taxes remitted to the Internal Revenue Service,

972

shall be paid to the DROP participant or surviving beneficiary.

973

     (II)  Direct rollover.--All accrued DROP benefits, plus

974

interest, shall be paid from the DROP directly to the custodian

975

of an eligible retirement plan as defined in s. 402(c)(8)(B) of

976

the Internal Revenue Code. However, in the case of an eligible

977

rollover distribution to the surviving spouse of a deceased

978

participant, an eligible retirement plan is an individual

979

retirement account or an individual retirement annuity as

980

described in s. 402(c)(9) of the Internal Revenue Code.

981

     (III)  Partial lump sum.--A portion of the accrued DROP

982

benefits shall be paid to the DROP participant or surviving

983

spouse, less withholding taxes remitted to the Internal Revenue

984

Service, and the remaining DROP benefits shall be transferred

985

directly to the custodian of an eligible retirement plan as

986

defined in s. 402(c)(8)(B) of the Internal Revenue Code. However,

987

in the case of an eligible rollover distribution to the surviving

988

spouse of a deceased participant, an eligible retirement plan is

989

an individual retirement account or an individual retirement

990

annuity as described in s. 402(c)(9) of the Internal Revenue

991

Code. The proportions shall be specified by the DROP participant

992

or surviving beneficiary.

993

     c.  The form of payment selected by the DROP participant or

994

surviving beneficiary must comply complies with the minimum

995

distribution requirements of the Internal Revenue Code.

996

     d.  A DROP participant who fails to terminate employment as

997

defined in s. 121.021(39)(b) shall be deemed as not to be

998

retired, and the DROP election is shall be null and void. Florida

999

Retirement System membership shall be reestablished retroactively

1000

to the date of the commencement of the DROP, and each employer

1001

with whom the participant continues employment must shall be

1002

required to pay to the Florida Retirement System Trust Fund the

1003

difference between the DROP contributions paid in paragraph (i)

1004

and the contributions required for the applicable Florida

1005

Retirement System class of membership during the period the

1006

member participated in the DROP, plus 6.5 percent interest

1007

compounded annually.

1008

     6. The retirement benefits of any DROP participant who

1009

meets the definition of termination, as provided in s.

1010

121.021(39)(b), but is in violation of the reemployment

1011

provisions as provided in subsection (9), shall be suspended

1012

during those months in which the member is in violation. Any

1013

member employed in violation of this subparagraph and any

1014

employing agency that knowingly employs or appoints such member

1015

without notifying the Division of Retirement to suspend

1016

retirement benefits are jointly and severally liable for any

1017

benefits paid during the reemployment limitation period. To avoid

1018

liability, the employing agency must have a written statement

1019

from the retiree that he or she is not retired from a state-

1020

administered retirement system. Any retirement benefits received

1021

by a retired member while employed in violation of the

1022

reemployment limitations during the first 12 months of retirement

1023

must be repaid to the Florida Retirement System Trust Fund, and

1024

his or her retirement benefits shall remain suspended until

1025

payment is made. Benefits suspended beyond the end of the retired

1026

member's first 12 months of retirement shall apply toward

1027

repayment of benefits received in violation of the reemployment

1028

limitations.

1029

     7.6. The accrued benefits of any DROP participant, and any

1030

contributions accumulated under the such program, are shall not

1031

be subject to assignment, execution, attachment, or to any legal

1032

process whatsoever, except for qualified domestic relations

1033

orders by a court of competent jurisdiction, income deduction

1034

orders as provided in s. 61.1301, and federal income tax levies.

1035

     8.7. DROP participants are shall not be eligible for

1036

disability retirement benefits as provided in subsection (4).

1037

     (14)  PAYMENT OF BENEFITS.--This subsection applies to the

1038

payment of benefits to a payee (retiree or beneficiary) under the

1039

Florida Retirement System:

1040

     (b)  Subject to approval by the division in accordance with

1041

rule 60S-4.015, Florida Administrative Code, a payee receiving

1042

retirement benefits under the Florida Retirement system may also

1043

have the following payments deducted from his or her monthly

1044

benefit:

1045

     1.  Premiums for life and health-related insurance policies

1046

from approved companies.

1047

     2.  Life insurance premiums for the State Group Life

1048

Insurance Plan, if authorized in writing by the payee and by the

1049

department of Management Services.

1050

     3.  Repayment of overpayments from the Florida Retirement

1051

System Trust Fund, the State Employees' Health Insurance Trust

1052

Fund, or the State Employees' Life Insurance Trust Fund, upon

1053

notification of the payee.

1054

     4. Payments to an alternate payee for alimony or, child

1055

support pursuant to an income deduction order under s. 61.1301,

1056

or division of marital assets pursuant to a qualified domestic

1057

relations order under s. 222.21 or an income deduction order

1058

under s. 61.1301.

1059

     5.  Payments to the Internal Revenue Service for federal

1060

income tax levies, upon notification of the division by the

1061

Internal Revenue Service.

1062

     (c) A payee must shall notify the division of any change in

1063

his or her address. The division may suspend benefit payments to

1064

a payee if correspondence sent to the payee's mailing address is

1065

returned due to an incorrect address. Benefit payments shall be

1066

resumed upon notification to the division of the payee's new

1067

address.

1068

     (d)  A payee whose retirement benefits are reduced by the

1069

application of maximum benefit limits under s. 415(b) of the

1070

Internal Revenue Code, as specified in s. 121.30(5), shall have

1071

the portion of his or her calculated benefit in the Florida

1072

Retirement System defined benefit plan which exceeds such federal

1073

limitation paid through the Florida Retirement System

1074

Preservation of Benefits Plan, as provided in s. 121.1001.

1075

     (e). The Division of Retirement may issue retirement

1076

benefits payable for division of marital assets pursuant to a

1077

qualified domestic relations order directly to the alternate

1078

payee, any court order to the contrary notwithstanding, in order

1079

to meet Internal Revenue Code requirements.

1080

     (f)(e) A No benefit may not be reduced for the purpose of

1081

preserving the member's eligibility for a federal program.

1082

     (g)(f) The division shall adopt rules establishing

1083

procedures for determining that the persons to whom benefits are

1084

being paid are still living. The division shall suspend the

1085

benefits being paid to any payee if when it is unable to contact

1086

such payee and to confirm that he or she is still living.

1087

     Section 8.  Section 121.1115, Florida Statutes, is amended

1088

to read:

1089

     121.1115 Purchase of retirement credit for out-of-state or

1090

and federal service.--Effective January 1, 1995, a member of the

1091

Florida Retirement System may purchase creditable service for

1092

periods of public employment in another state and receive

1093

creditable service for such periods of employment. Service with

1094

the Federal Government, including any active military service,

1095

may be claimed. Upon completion of each year of service earned

1096

under the Florida Retirement System, a member may purchase up to

1097

1 year of retirement credit for his or her out-of-state service,

1098

subject to the following provisions:

1099

     (1)  LIMITATIONS AND CONDITIONS.--To receive credit for the

1100

out-of-state service:

1101

     (a) The out-of-state service being claimed must have been:

1102

     1.  Performed in a position of employment with the state or

1103

a political subdivision thereof or with the Federal Government;

1104

     2.  Covered by a retirement or pension plan provided by the

1105

state or political subdivision, or by the Federal Government, as

1106

appropriate; and

1107

     3.  Performed prior to a period of membership in the Florida

1108

Retirement System.

1109

     (b)  The member must have completed a minimum of 6 years of

1110

creditable service under the Florida Retirement System, excluding

1111

out-of-state service and in-state service claimed and purchased

1112

under s. 121.1122.

1113

     (c)  Not more than 5 years of creditable service may be

1114

claimed for creditable service aggregated under the provisions of

1115

this section and s. 121.1122.

1116

     (d) The out-of-state service credit claimed under this

1117

section shall be credited only as service in the Regular Class of

1118

membership, and any benefit or pension based thereon is shall be

1119

subject to the limitations and restrictions of s. 112.65.

1120

     (e) The member is not eligible for and may not receive a

1121

pension or benefit from a retirement or pension plan based on or

1122

including the out-of-state service. Eligibility for or the

1123

receipt of contributions to a retirement plan made by the

1124

employer on behalf of the employee is considered a benefit.

1125

     (f)(e) To receive A member shall be eligible to receive

1126

service credit for out-of-state service performed after leaving

1127

the Florida Retirement System, the member must complete only upon

1128

return to membership and completion of at least 1 year of

1129

creditable service in the Florida Retirement System following the

1130

out-of-state service.

1131

     (2)  COST.--For each year claimed, the member must pay into

1132

the Florida Retirement System Trust Fund an amount equal to 20

1133

percent of the member's annual compensation for the first full

1134

work year of creditable service earned under the Florida

1135

Retirement System, but not less than $12,000, plus interest at

1136

6.5 percent compounded annually from the date of first annual

1137

salary earned until full payment is made. The employer may pay

1138

all or a portion of the cost of this service credit.

1139

     Section 9.  Subsection (2) of section 121.1122, Florida

1140

Statutes, is amended to read:

1141

     121.1122  Purchase of retirement credit for in-state public

1142

service and in-state service in accredited nonpublic schools and

1143

colleges, including charter schools and charter technical career

1144

centers.--Effective January 1, 1998, a member of the Florida

1145

Retirement System may purchase creditable service for periods of

1146

certain public or nonpublic employment performed in this state,

1147

as provided in this section.

1148

     (2)  LIMITATIONS AND CONDITIONS.--

1149

     (a)  A member is not eligible to receive credit for in-state

1150

service under this section until he or she has completed 6 years

1151

of creditable service under the Florida Retirement System,

1152

excluding service purchased under this section and out-of-state

1153

service claimed and purchased under s. 121.1115.

1154

     (b)  A member may not purchase and receive credit for more

1155

than 5 years of creditable service aggregated under the

1156

provisions of this section and s. 121.1115.

1157

     (c)  Service credit claimed under this section shall be

1158

credited only as service in the Regular Class of membership and

1159

is shall be subject to the provisions of s. 112.65.

1160

     (d) Service credit may not be purchased under this section

1161

if the member is eligible to receive or is receiving a pension or

1162

benefit from a retirement or pension plan based on or including

1163

the service. Eligibility for or the receipt of contributions to a

1164

retirement plan made by the employer on behalf of the employee is

1165

considered a benefit.

1166

     (e)(d) A member is shall be eligible to receive service

1167

credit for in-state service performed after leaving the Florida

1168

Retirement System only after upon returning to membership and

1169

completing at least 1 year of creditable service in the Florida

1170

Retirement System following the in-state service.

1171

     (f)(e) The service claimed must have been service covered

1172

by a retirement or pension plan provided by the employer.

1173

     Section 10.  Section 121.136, Florida Statutes, is amended

1174

to read:

1175

     121.136 Annual benefit statement to members.--Beginning

1176

January 1, 1993, and Each January thereafter, the department

1177

shall provide each active member of the Florida Retirement System

1178

with 5 or more years of creditable service an annual statement of

1179

benefits which provides. Such statement should provide the member

1180

with basic data about the member's retirement account. At a

1181

minimum Minimally, it must shall include the member's retirement

1182

plan, accrued service credit the amount of funds on deposit in

1183

the retirement account, and an estimate of retirement benefits.

1184

     Section 11.  Section 121.1905, Florida Statutes, is amended

1185

to read:

1186

     121.1905  Division of Retirement; creation.--

1187

     (1) There is created the Division of Retirement within the

1188

Department of Management Services.

1189

     (2) The mission of the Division of Retirement is to provide

1190

quality and cost-effective retirement services as measured by

1191

member satisfaction and by comparison with administrative costs

1192

of comparable retirement systems.

1193

     Section 12.  Paragraph (a) of subsection (2) of section

1194

121.23, Florida Statutes, is amended to read:

1195

     121.23  Disability retirement and special risk membership

1196

applications; Retirement Commission; powers and duties; judicial

1197

review.--The provisions of this section apply to all proceedings

1198

in which the administrator has made a written final decision on

1199

the merits respecting applications for disability retirement,

1200

reexamination of retired members receiving disability benefits,

1201

applications for special risk membership, and reexamination of

1202

special risk members in the Florida Retirement System. The

1203

jurisdiction of the State Retirement Commission under this

1204

section shall be limited to written final decisions of the

1205

administrator on the merits.

1206

     (2)  A member shall be entitled to a hearing before the

1207

State Retirement Commission pursuant to ss. 120.569 and 120.57(1)

1208

on the merits of any written adverse decision of the

1209

administrator, if he or she files with the commission a written

1210

request for such hearing within 21 days after receipt of such

1211

written decision from the administrator. For the purpose of such

1212

hearings, the commission shall be an "agency head" as defined by

1213

s. 120.52.

1214

     (a) The commission may shall have the authority to issue

1215

orders as a result of the a hearing that are shall be binding on

1216

all parties to the dispute and. The commission may order any

1217

action that it deems appropriate. Any disability retirement order

1218

of the commission issued pursuant to this subsection which

1219

sustains the application of the member may include an amount, to

1220

be determined by the commission, for reasonable attorney's fees

1221

and taxable costs, which shall be calculated in accordance with

1222

the statewide uniform guidelines for taxation of costs in civil

1223

actions. The amount of the attorney's fee may not exceed 50

1224

percent of the initial yearly benefit awarded under s.

1225

121.091(4). In cases involving disability retirement, the State

1226

Retirement commission shall require the member to present

1227

competent substantial medical evidence and meet the requirements

1228

of s. 121.091(4)(c)2. and 3., and may require vocational

1229

evidence, before awarding disability retirement benefits.

1230

     Section 13.  Paragraph (a) of subsection (1) of section

1231

121.24, Florida Statutes, is amended to read:

1232

     121.24  Conduct of commission business; legal and other

1233

assistance; compensation.--

1234

     (1)  The commission shall conduct its business within the

1235

following guidelines:

1236

     (a)  For purposes of hearing appeals under s. 121.23, the

1237

commission may meet in panels consisting of no not fewer than

1238

three members. For the purpose of meeting in these panels, a

1239

quorum shall be not fewer than two members. For all other

1240

purposes, A quorum shall consist of three members. The concurring

1241

vote of a majority of the members present is shall be required to

1242

reach a decision, issue orders, and conduct the business of the

1243

commission.

1244

     Section 14.  Subsection (8) of section 1012.33, Florida

1245

Statutes, is amended to read:

1246

     1012.33  Contracts with instructional staff, supervisors,

1247

and school principals.--

1248

     (8) Notwithstanding any other provision of law, a retired

1249

any member who has retired may interrupt retirement and be

1250

reemployed in any public school. A Any member so reemployed by

1251

the same district from which he or she retired may be employed on

1252

a probationary contractual basis as provided in subsection (1);

1253

however, no regular retirement employee shall be eligible to

1254

renew membership under a retirement system created by chapter 121

1255

or chapter 238.

1256

     Section 15. Sections 121.093, 121.094, and 121.45, Florida

1257

Statutes, are repealed.

1258

     Section 16. The Legislature finds that a proper and

1259

legitimate state purpose is served when employees and retirees of

1260

the state and its political subdivisions, as well as the

1261

dependents, survivors, and beneficiaries of such employees and

1262

retiree, are extended the basic protections afforded by

1263

governmental retirement systems that provide fair and adequate

1264

benefits and that are managed, administered, and funded in an

1265

actuarially sound manner as required by s. 14, Art. X of the

1266

State Constitution, and part VII of chapter 112, Florida

1267

Statutes. Therefore, the Legislature determines and declares that

1268

the amendment of s. 121.091, Florida Statutes, by this act

1269

fulfills an important state interest.

1270

     Section 17.  This act shall take effect July 1, 2008.