Florida Senate - 2009                          SENATOR AMENDMENT
       Bill No. CS/CS/HB 479, 2nd Eng.
       
       
       
       
       
       
                                Barcode 940046                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                 Floor: WD/2R          .                                
             04/30/2009 11:08 AM       .                                
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       Senator Lawson moved the following:
       
    1         Senate Substitute for Amendment (873430) (with title
    2  amendment)
    3  
    4         Delete everything after the enacting clause
    5  and insert:
    6         Section 1. Subsections (10), (11), (18), (29), (39), (52),
    7  and (53) of section 121.021, Florida Statutes, are amended, and
    8  subsections (63) and (64) are added to that section, to read:
    9         121.021 Definitions.—The following words and phrases as
   10  used in this chapter have the respective meanings set forth
   11  unless a different meaning is plainly required by the context:
   12         (10) “Employer” means any agency, branch, department,
   13  institution, university, institution of higher education, or
   14  board of the state, or any county agency, branch, department,
   15  board, district school board, municipality, metropolitan
   16  planning organization, or special district of the state, or any
   17  city of the state which participates in the system for the
   18  benefit of certain of its employees, or a charter school or
   19  charter technical career center that participates as provided in
   20  s. 121.051(2)(d). Employers are not agents of the department,
   21  the state board, or the Division of Retirement, and the
   22  department, the state board, and the division are not
   23  responsible for erroneous information provided by
   24  representatives of employers.
   25         (11) “Officer or employee” means any person receiving
   26  salary payments for work performed in a regularly established
   27  position and, if employed by a municipality city, a metropolitan
   28  planning organization, or a special district, employed in a
   29  covered group. The term does not apply to state employees
   30  covered by a leasing agreement under s. 110.191, other public
   31  employees covered by a leasing agreement, or a co-employer
   32  relationship.
   33         (18) “Past service” of any member, as provided in s.
   34  121.081(1), means the number of years and complete months and
   35  any fractional part of a month, recognized and credited by an
   36  employer and approved by the administrator, during which the
   37  member was in the active employ of a governmental an employer
   38  and for which the employee is not entitled to a benefit before
   39  prior to his or her date of participation.
   40         (29) “Normal retirement date” means the first day of any
   41  month following the date a member attains normal retirement age
   42  and is vested, which is determined as follows one of the
   43  following statuses:
   44         (a) If a Regular Class member, a Senior Management Service
   45  Class member, or an Elected Officers’ Class the member:
   46         1. The first day of the month the member completes 6 or
   47  more years of creditable service and attains age 62; or
   48         2. The first day of the month following the date the member
   49  completes 30 years of creditable service, regardless of age,
   50  which may include a maximum of 4 years of military service
   51  credit as long as such credit is not claimed under any other
   52  system.
   53         (b) If a Special Risk Class member, the member:
   54         1. The first day of the month the member completes 6 or
   55  more years of creditable service in the Special Risk Class and
   56  attains age 55;
   57         2. The first day of the month following the date the member
   58  completes 25 years of creditable service in the Special Risk
   59  Class, regardless of age; or
   60         3. The first day of the month following the date the member
   61  completes 25 years of creditable service and attains age 52,
   62  which service may include a maximum of 4 years of military
   63  service credit as long as such credit is not claimed under any
   64  other system and the remaining years are in the Special Risk
   65  Class.
   66         (c)If a Senior Management Service Class member, the
   67  member:
   68         1.Completes 6 years of creditable service in the Senior
   69  Management Service Class and attains age 62; or
   70         2.Completes 30 years of any creditable service, regardless
   71  of age, which may include a maximum of 4 years of military
   72  service credit as long as such credit is not claimed under any
   73  other system.
   74         (d)If an Elected Officers’ Class member, the member:
   75         1.Completes 6 years of creditable service in the Elected
   76  Officers’ Class and attains age 62; or
   77         2.Completes 30 years of any creditable service, regardless
   78  of age, which may include a maximum of 4 years of military
   79  service credit as long as such credit is not claimed under any
   80  other system.
   81  
   82  “Normal retirement age” is attained on the “normal retirement
   83  date.”
   84         (39)(a) “Termination” occurs, except as provided in
   85  paragraph (b), when a member ceases all employment relationships
   86  with an employer, however: employers under this system, as
   87  defined in subsection (10), but in the event
   88         1.For retirements effective before July 1, 2010, if a
   89  member is should be employed by any such employer within the
   90  next calendar month, termination shall be deemed not to have
   91  occurred. A leave of absence constitutes shall constitute a
   92  continuation of the employment relationship, except that a leave
   93  of absence without pay due to disability may constitute
   94  termination for a member, if such member makes application for
   95  and is approved for disability retirement in accordance with s.
   96  121.091(4). The department or state board may require other
   97  evidence of termination as it deems necessary.
   98         2.For retirements effective on or after July 1, 2010, if a
   99  member is employed by any such employer within the next 6
  100  calendar months, termination shall be deemed not to have
  101  occurred. A leave of absence constitutes a continuation of the
  102  employment relationship, except that a leave of absence without
  103  pay due to disability may constitute termination if such member
  104  makes application for and is approved for disability retirement
  105  in accordance with s. 121.091(4). The department or state board
  106  may require other evidence of termination as it deems necessary.
  107         (b) “Termination” for a member electing to participate in
  108  under the Deferred Retirement Option Program occurs when the
  109  Deferred Retirement Option program participant ceases all
  110  employment relationships with an employer employers under this
  111  system in accordance with s. 121.091(13), however: but
  112         1.For termination dates occurring before July 1, 2010, if
  113  in the event the Deferred Retirement Option Program participant
  114  is should be employed by any such employer within the next
  115  calendar month, termination will be deemed not to have occurred,
  116  except as provided in s. 121.091(13)(b)4.c. A leave of absence
  117  shall constitute a continuation of the employment relationship.
  118         2.For termination dates occurring on or after July 1,
  119  2010, if the DROP participant becomes employed by any such
  120  employer within the next 6 calendar months, termination will be
  121  deemed not to have occurred, except as provided in s.
  122  121.091(13)(b)4.c. A leave of absence constitutes a continuation
  123  of the employment relationship.
  124         (52) “Regularly established position” means is defined as
  125  follows:
  126         (a) With respect to In a state employer agency, the term
  127  means a position that which is authorized and established
  128  pursuant to law and is compensated from a salaries and benefits
  129  appropriation pursuant to s. 216.011(1)(mm)(dd), or an
  130  established position that which is authorized pursuant to s.
  131  216.262(1)(a) and (b) and is compensated from a salaries account
  132  as provided in s. 216.011(1)(nn) by rule.
  133         (b) With respect to In a local employer agency (district
  134  school board, county agency, community college, city,
  135  metropolitan planning organization, charter school, charter
  136  technical career center, or special district), the term means a
  137  regularly established position that which will be in existence
  138  for a period beyond 6 consecutive months, except as provided by
  139  rule.
  140         (53) “Temporary position” means is defined as follows:
  141         (a) With respect to In a state employer agency, a the term
  142  means an employment position that which is compensated from an
  143  other personal services (OPS) account, as provided for in s.
  144  216.011(1)(dd).
  145         (b) With respect to In a local employer agency, a the term
  146  means an employment position that which will exist for less than
  147  6 consecutive months, or other employment position as determined
  148  by rule of the division, regardless of whether it will exist for
  149  6 consecutive months or longer.
  150         (63)“State board” means the State Board of Administration.
  151         (64)“Trustees” means the Board of Trustees of the State
  152  Board of Administration.
  153         Section 2. Subsection (6) is added to section 121.031,
  154  Florida Statutes, to read:
  155         121.031 Administration of system; appropriation; oaths;
  156  actuarial studies; public records.—
  157         (6)Unless prior written approval is obtained from the
  158  department or state board, any promotional materials or
  159  advertisements that, directly or indirectly, refer to the
  160  “Florida Retirement System” or the “FRS” must contain a
  161  disclaimer that the information is not approved or endorsed by
  162  the Florida Retirement System.
  163         Section 3. Paragraph (a) of subsection (1) and paragraphs
  164  (c) and (f) of subsection (2) of section 121.051, Florida
  165  Statutes, are amended to read:
  166         121.051 Participation in the system.—
  167         (1) COMPULSORY PARTICIPATION.—
  168         (a) Participation in the Florida Retirement System is The
  169  provisions of this law shall be compulsory for as to all
  170  officers and employees, except elected officers who meet the
  171  requirements of s. 121.052(3), who are employed on or after
  172  December 1, 1970, by of an employer other than those referred to
  173  in paragraph (2)(b)., and Each officer or employee, as a
  174  condition of employment, becomes shall become a member of the
  175  system on the as of his or her date of employment, except that a
  176  person who is retired from any state retirement system and is
  177  reemployed on or after December 1, 1970, may not renew his or
  178  her membership in any state retirement system except as provided
  179  in s. 121.091(4)(h) for a person who recovers from disability,
  180  and as provided in s. 121.053 s. 121.091(9)(b)8. for a person
  181  who is elected to public office, and, effective July 1, 1991, as
  182  provided in s. 121.122 for all other retirees.
  183         1. Officers and employees of the University Athletic
  184  Association, Inc., a nonprofit association connected with the
  185  University of Florida, employed on and after July 1, 1979, may
  186  shall not participate in any state-supported retirement system.
  187         2.1. Any person appointed on or after July 1, 1989, to a
  188  faculty position in a college at the J. Hillis Miller Health
  189  Center at the University of Florida or the Medical Center at the
  190  University of South Florida which has a faculty practice plan
  191  adopted provided by rule adopted by the Board of Regents may not
  192  participate in the Florida Retirement System. Effective July 1,
  193  2008, any person appointed thereafter to a faculty position,
  194  including clinical faculty, in a college at a state university
  195  that has a faculty practice plan authorized by the Board of
  196  Governors may not participate in the Florida Retirement System.
  197  A faculty member so appointed shall participate in the optional
  198  retirement program for the State University System
  199  notwithstanding the provisions of s. 121.35(2)(a).
  200         2. For purposes of this subparagraph paragraph, the term:
  201         a. “Faculty position” means is defined as a position
  202  assigned the principal responsibility of teaching, research, or
  203  public service activities or administrative responsibility
  204  directly related to the academic mission of the college. The
  205  term
  206         b. “Clinical faculty” means is defined as a faculty
  207  position appointment in conjunction with a professional position
  208  in a hospital or other clinical environment at a college. The
  209  term
  210         c. “Faculty practice plan” includes professional services
  211  to patients, institutions, or other parties which are rendered
  212  by the clinical faculty employed by a college that has a faculty
  213  practice plan at a state university authorized by the Board of
  214  Governors.
  215         (2) OPTIONAL PARTICIPATION.—
  216         (c) Employees of public community colleges or charter
  217  technical career centers sponsored by public community colleges,
  218  as designated in s. 1000.21(3), who are members of the Regular
  219  Class of the Florida Retirement System and who comply with the
  220  criteria set forth in this paragraph and in s. 1012.875 may
  221  elect, in lieu of participating in the Florida Retirement
  222  System, elect to withdraw from the Florida Retirement system
  223  altogether and participate in the State Community College System
  224  an Optional Retirement Program provided by the employing agency
  225  under s. 1012.875, to be known as the State Community College
  226  System Optional Retirement Program. Pursuant thereto:
  227         1. Through June 30, 2001, the cost to the employer for such
  228  annuity equals shall equal the normal cost portion of the
  229  employer retirement contribution which would be required if the
  230  employee were a member of the Regular Class defined benefit
  231  program, plus the portion of the contribution rate required by
  232  s. 112.363(8) which that would otherwise be assigned to the
  233  Retiree Health Insurance Subsidy Trust Fund. Effective July 1,
  234  2001, each employer shall contribute on behalf of each
  235  participant in the optional program an amount equal to 10.43
  236  percent of the participant’s gross monthly compensation. The
  237  employer shall deduct an amount to provide for the
  238  administration of the optional retirement program. The employer
  239  providing the optional program shall contribute an additional
  240  amount to the Florida Retirement System Trust Fund equal to the
  241  unfunded actuarial accrued liability portion of the Regular
  242  Class contribution rate.
  243         2. The decision to participate in such an optional
  244  retirement program is shall be irrevocable for as long as the
  245  employee holds a position eligible for participation, except as
  246  provided in subparagraph 3. Any service creditable under the
  247  Florida Retirement System is shall be retained after the member
  248  withdraws from the Florida Retirement system; however,
  249  additional service credit in the Florida Retirement system may
  250  shall not be earned while a member of the optional retirement
  251  program.
  252         3. An employee who has elected to participate in the
  253  optional retirement program shall have one opportunity, at the
  254  employee’s discretion, to choose to transfer from the optional
  255  retirement program to the defined benefit program of the Florida
  256  Retirement System or to the Public Employee Optional Retirement
  257  Program, subject to the terms of the applicable optional
  258  retirement program contracts.
  259         a. If the employee chooses to move to the Public Employee
  260  Optional Retirement Program, any contributions, interest, and
  261  earnings creditable to the employee under the State Community
  262  College System Optional Retirement Program is shall be retained
  263  by the employee in the State Community College System Optional
  264  Retirement Program, and the applicable provisions of s.
  265  121.4501(4) shall govern the election.
  266         b. If the employee chooses to move to the defined benefit
  267  program of the Florida Retirement System, the employee shall
  268  receive service credit equal to his or her years of service
  269  under the State Community College System Optional Retirement
  270  Program.
  271         (I) The cost for such credit is the shall be an amount
  272  representing the present value of the that employee’s
  273  accumulated benefit obligation for the affected period of
  274  service. The cost shall be calculated as if the benefit
  275  commencement occurs on the first date the employee becomes would
  276  become eligible for unreduced benefits, using the discount rate
  277  and other relevant actuarial assumptions that were used to value
  278  the Florida Retirement System defined benefit plan liabilities
  279  in the most recent actuarial valuation. The calculation must
  280  shall include any service already maintained under the defined
  281  benefit plan in addition to the years under the State Community
  282  College System Optional Retirement Program. The present value of
  283  any service already maintained must under the defined benefit
  284  plan shall be applied as a credit to total cost resulting from
  285  the calculation. The division shall ensure that the transfer sum
  286  is prepared using a formula and methodology certified by an
  287  enrolled actuary.
  288         (II) The employee must transfer from his or her State
  289  Community College System Optional Retirement Program account and
  290  from other employee moneys as necessary, a sum representing the
  291  present value of the that employee’s accumulated benefit
  292  obligation immediately following the time of such movement,
  293  determined assuming that attained service equals the sum of
  294  service in the defined benefit program and service in the State
  295  Community College System Optional Retirement Program.
  296         4. Participation in the optional retirement program is
  297  shall be limited to those employees who satisfy the following
  298  eligibility criteria:
  299         a. The employee must be otherwise eligible for membership
  300  or renewed membership in the Regular Class of the Florida
  301  Retirement System, as provided in s. 121.021(11) and (12) or s.
  302  121.122.
  303         b. The employee must be employed in a full-time position
  304  classified in the Accounting Manual for Florida’s Public
  305  Community Colleges as:
  306         (I) Instructional; or
  307         (II) Executive Management, Instructional Management, or
  308  Institutional Management, if a community college determines that
  309  recruiting to fill a vacancy in the position is to be conducted
  310  in the national or regional market, and:
  311         (A) the duties and responsibilities of the position include
  312  either the formulation, interpretation, or implementation of
  313  policies,; or
  314         (B)The duties and responsibilities of the position include
  315  the performance of functions that are unique or specialized
  316  within higher education and that frequently involve the support
  317  of the mission of the community college.
  318         c. The employee must be employed in a position not included
  319  in the Senior Management Service Class of the Florida Retirement
  320  System, as described in s. 121.055.
  321         5. Participants in the program are subject to the same
  322  reemployment limitations, renewed membership provisions, and
  323  forfeiture provisions as are applicable to regular members of
  324  the Florida Retirement System under ss. 121.091(9), 121.122, and
  325  121.091(5), respectively. A participant who receives a program
  326  distribution funded by employer contributions shall be deemed to
  327  be retired from a state-administered retirement system if the
  328  participant is subsequently employed with an employer that
  329  participates in the Florida Retirement System.
  330         6. Eligible community college employees are shall be
  331  compulsory members of the Florida Retirement System until,
  332  pursuant to the procedures set forth in s. 1012.875, a written
  333  election to withdraw from the Florida Retirement system and to
  334  participate in the State Community College System Optional
  335  Retirement Program is filed with the program administrator and
  336  received by the division.
  337         a. A Any community college employee whose program
  338  eligibility results from initial employment must shall be
  339  enrolled in the State Community College System Optional
  340  Retirement Program retroactive to the first day of eligible
  341  employment. The employer retirement contributions paid through
  342  the month of the employee plan change shall be transferred to
  343  the community college to for the employee’s optional program
  344  account, and, effective the first day of the next month, the
  345  employer shall pay the applicable contributions based upon
  346  subparagraph 1.
  347         b. A Any community college employee whose program
  348  eligibility is results from a change in status due to the
  349  subsequent designation of the employee’s position as one of
  350  those specified in subparagraph 4., or due to the employee’s
  351  appointment, promotion, transfer, or reclassification to a
  352  position specified in subparagraph 4., must shall be enrolled in
  353  the program on upon the first day of the first full calendar
  354  month that such change in status becomes effective. The employer
  355  retirement contributions paid from the effective date through
  356  the month of the employee plan change must shall be transferred
  357  to the community college to for the employee’s optional program
  358  account, and, effective the first day of the next month, the
  359  employer shall pay the applicable contributions based upon
  360  subparagraph 1.
  361         7. Effective July 1, 2003, through December 31, 2008, any
  362  participant of the State Community College System Optional
  363  Retirement Program who has service credit in the defined benefit
  364  plan of the Florida Retirement System for the period between his
  365  or her first eligibility to transfer from the defined benefit
  366  plan to the optional retirement program and the actual date of
  367  transfer may, during his or her employment, elect to transfer to
  368  the optional retirement program a sum representing the present
  369  value of the accumulated benefit obligation under the defined
  370  benefit retirement program for the such period of service
  371  credit. Upon such transfer, all such service credit previously
  372  earned under the defined benefit program of the Florida
  373  Retirement System during this period is shall be nullified for
  374  purposes of entitlement to a future benefit under the defined
  375  benefit program of the Florida Retirement System.
  376         (f)1. If Whenever an employer that participates in the
  377  Florida Retirement System undertakes the transfer, merger, or
  378  consolidation of governmental services or assumes the functions
  379  and activities of an employing governmental entity that was not
  380  an employer under the system, the employer must notify the
  381  department at least 60 days before prior to such action and
  382  shall provide documentation as required by the department. The
  383  transfer, merger, or consolidation of governmental services or
  384  assumption of governmental functions and activities must occur
  385  between public employers. The current or former employer may pay
  386  the employees’ past service cost, unless prohibited under this
  387  chapter. This subparagraph does not apply to the transfer,
  388  merger, or consolidation of governmental services or assumption
  389  of functions and activities of a public entity under a leasing
  390  agreement having a co-employer relationship. Employers and
  391  employees of a public governmental employer whose service is
  392  covered by a leasing agreement under s. 110.191, any other
  393  leasing agreement, or a co-employer relationship are not
  394  eligible to participate in the Florida Retirement System.
  395         2. If When the agency to which a member’s employing unit is
  396  transferred, merged, or consolidated does not participate in the
  397  Florida Retirement System, a member may shall elect in writing
  398  to remain in the Florida Retirement System or to transfer to the
  399  local retirement system operated by the such agency. If the such
  400  agency does not participate in a local retirement system, the
  401  member shall continue membership in the Florida Retirement
  402  System. In either case, the membership continues shall continue
  403  for as long as the member is employed by the agency to which his
  404  or her unit was transferred, merged, or consolidated.
  405         Section 4. Paragraph (f) of subsection (2) and paragraph
  406  (e) of subsection (3) of section 121.052, Florida Statutes, are
  407  amended to read:
  408         121.052 Membership class of elected officers.—
  409         (2) MEMBERSHIP.—The following holders of elective office,
  410  hereinafter referred to as “elected officers,” whether assuming
  411  elective office by election, reelection, or appointment, are
  412  members of the Elected Officers’ Class, except as provided in
  413  subsection (3):
  414         (f) Any elected officer of a municipality or special
  415  district assuming office on or after July 1, 1997, through June
  416  30, 2009, as provided in subsection (3) paragraph (3)(e). On or
  417  after July 1, 2010, an elected officer shall become a member
  418  only if the governing body of the municipality or special
  419  district, at the time it joins the Florida Retirement System for
  420  its elected officers, elects, by majority vote, to include all
  421  its elected positions in the Elected Officers’ Class.
  422         (3) PARTICIPATION AND WITHDRAWAL, GENERALLY.—Effective July
  423  1, 1990, participation in the Elected Officers’ Class shall be
  424  compulsory for elected officers listed in paragraphs (2)(a)-(d)
  425  and (f) assuming office on or after said date, unless the
  426  elected officer elects membership in another class or withdraws
  427  from the Florida Retirement System as provided in paragraphs
  428  (3)(a)-(d):
  429         (e) Effective July 1, 2001, The governing body of a
  430  municipality or special district may, by majority vote, elect to
  431  designate all its elected positions for inclusion in the Elected
  432  Officers’ Class.
  433         1.Effective July 1, 1997, such election must be made
  434  between July 1, 1997, and December 31, 1997, and is irrevocable.
  435  The designation of such positions is effective the first day of
  436  the month following receipt by the department of the ordinance
  437  or resolution passed by the governing body.
  438         2.Effective July 1, 2001, such election must shall be made
  439  between July 1, 2001, and December 31, 2001, and is shall be
  440  irrevocable. The designation of such positions is shall be
  441  effective the first day of the month following receipt by the
  442  department of the ordinance or resolution passed by the
  443  governing body.
  444         3. Effective July 1, 2009, such election must be made
  445  between July 1, 2009, and December 31, 2009, and is irrevocable.
  446  The designation of such positions is effective the first day of
  447  the month following receipt by the department of the ordinance
  448  or resolution passed by the governing body.
  449         Section 5. Paragraph (b) of subsection (1) of section
  450  121.053, Florida Statutes, is amended to read:
  451         121.053 Participation in the Elected Officers’ Class for
  452  retired members.—
  453         (1)
  454         (b) A Any retired member of the Florida Retirement System,
  455  or an any existing system as defined in s. 121.021(2), who, on
  456  or after July 1, 1990, serves in is serving in, or is elected or
  457  appointed to, an elective office covered by the Elected
  458  Officers’ Class shall be enrolled in the appropriate subclass of
  459  the Elected Officers’ Class of the Florida Retirement System,
  460  and applicable contributions shall be paid into the Florida
  461  Retirement System Trust Fund as provided in s. 121.052(7).
  462  Pursuant thereto:
  463         1. The Any such retired member may shall be eligible to
  464  continue to receive retirement benefits as well as compensation
  465  for the elected officer service if for as long as he or she
  466  remains in an elective office covered by the Elected Officers’
  467  Class.
  468         2. If the any such member serves in an elective office
  469  covered by the Elected Officers’ Class and becomes vested under
  470  that class, he or she is shall be entitled to receive an
  471  additional retirement benefit for the such elected officer
  472  service.
  473         3. The Such member is shall be entitled to purchase
  474  additional retirement credit in the Elected Officers’ Class for
  475  any postretirement service performed in an elected position
  476  eligible for the Elected Officers’ Class before prior to July 1,
  477  1990, or in the Regular Class for any postretirement service
  478  performed in any other regularly established position before
  479  prior to July 1, 1991, by paying the applicable Elected
  480  Officers’ Class or Regular Class employee and employer
  481  contributions for the period being claimed, plus 4 percent
  482  interest compounded annually from the first year of service
  483  claimed until July 1, 1975, and 6.5 percent interest compounded
  484  thereafter, until full payment is made to the Florida Retirement
  485  System Trust Fund. The contribution for postretirement Regular
  486  Class service between July 1, 1985, and July 1, 1991, for which
  487  the reemployed retiree contribution was paid, is shall be the
  488  difference between the such contribution and the total
  489  applicable contribution for the period being claimed, plus
  490  interest. The employer of such member may pay the applicable
  491  employer contribution in lieu of the member. If a member does
  492  not wish to claim credit for all of the postretirement service
  493  for which he or she is eligible, the service the member claims
  494  must be the most recent service. Any retiree who served in an
  495  elective office before July 1, 1990, suspended his or her
  496  retirement benefits, and had his or her Florida Retirement
  497  System membership reinstated shall, upon retirement from such
  498  office, have his or her retirement benefit recalculated to
  499  include the additional service and compensation earned.
  500         4. Creditable service for which credit was received, or
  501  which remained unclaimed, at retirement may not be claimed or
  502  applied toward service credit earned following renewed
  503  membership. However, service earned in accordance with the
  504  renewed membership provisions of in s. 121.122 may be used in
  505  conjunction with creditable service earned under this paragraph,
  506  if provided applicable vesting requirements and other existing
  507  statutory conditions required by this chapter are met.
  508         5. A member An elected officer who is elected or appointed
  509  to an elective office and is participating in the Deferred
  510  Retirement Option Program before July 1, 2010, is not subject to
  511  termination as provided in s. 121.021(39)(b), or reemployment
  512  limitations as provided in s. 121.091(9), until the end of his
  513  or her current term of office or, if the officer is
  514  consecutively elected or reelected to an elective office
  515  eligible for coverage under the Florida Retirement System, until
  516  he or she no longer holds such an elective office, as follows:
  517         a. At the end of the 60-month DROP period:
  518         (I) The officer’s DROP account may not shall accrue no
  519  additional monthly benefits, but shall continue to earn interest
  520  as provided in s. 121.091(13). However, an officer whose DROP
  521  participation begins on or after July 1, 2010, may not continue
  522  to earn interest as provided in s. 121.091(13).
  523         (II) No Retirement contributions are not shall be required
  524  of the employer of the elected officer and no additional
  525  retirement credit may not shall be earned under the Florida
  526  Retirement System.
  527         b. Nothing herein shall prevent An elected officer may from
  528  voluntarily terminate terminating his or her elective office at
  529  any time and electing to receive his or her DROP proceeds.
  530  However, until termination requirements are fulfilled as defined
  531  provided in s. 121.021(39) occurs, an any elected officer whose
  532  termination limitations are extended by this section is shall be
  533  ineligible for renewed membership in the system and may not
  534  shall receive no pension payments, DROP lump sum payments, or
  535  any other state payment other than the statutorily determined
  536  salary, travel, and per diem for the elective office.
  537         c.  Upon termination, the officer shall receive his or her
  538  accumulated DROP account, plus interest, and shall accrue and
  539  commence receiving monthly retirement benefits, which must shall
  540  be paid on a prospective basis only.
  541  
  542  However, an officer electing to participate in the Deferred
  543  Retirement Option Program on or before June 30, 2002, is shall
  544  not be required to terminate and remains shall remain subject to
  545  the provisions of this subparagraph as adopted in section 1 of
  546  chapter 2001-235, Laws of Florida.
  547         Section 6. Paragraph (f) of subsection (1) and paragraph
  548  (e) of subsection (6) of section 121.055, Florida Statutes, are
  549  amended to read:
  550         121.055 Senior Management Service Class.—There is hereby
  551  established a separate class of membership within the Florida
  552  Retirement System to be known as the “Senior Management Service
  553  Class,” which shall become effective February 1, 1987.
  554         (1)
  555         (f) Effective July 1, 1997:
  556         1. An Any elected state officer eligible for membership in
  557  the Elected Officers’ Class under s. 121.052(2)(a), (b), or (c)
  558  who elects membership in the Senior Management Service Class
  559  under s. 121.052(3)(c) may, within 6 months after assuming
  560  office or within 6 months after this act becomes a law for
  561  serving elected state officers, elect to participate in the
  562  Senior Management Service Optional Annuity Program, as provided
  563  in subsection (6), in lieu of membership in the Senior
  564  Management Service Class.
  565         2. An Any elected county officer of a local agency employer
  566  eligible for membership in the Elected Officers’ Class under s.
  567  121.052(2)(d) who elects membership in the Senior Management
  568  Service Class under s. 121.052(3)(c) may, within 6 months after
  569  assuming office, or within 6 months after this act becomes a law
  570  for serving elected county officers of a local agency employer,
  571  elect to withdraw from the Florida Retirement System participate
  572  in a lifetime monthly annuity program, as provided in
  573  subparagraph (b)2., in lieu of membership in the Senior
  574  Management Service Class.
  575         (6)
  576         (e) Benefits.—
  577         1. Benefits shall be payable under the Senior Management
  578  Service Optional Annuity Program only to participants in the
  579  program, or their beneficiaries as designated by the participant
  580  in the contract with a provider company, and such benefits shall
  581  be paid by the designated company in accordance with the terms
  582  of the annuity contract or contracts applicable to the
  583  participant. A participant must be terminated from all
  584  employment with all Florida Retirement System employers as
  585  provided in s. 121.021(39) to begin receiving the employer
  586  funded benefit. Benefits funded by employer contributions shall
  587  be payable under the terms of the contract only as a lifetime
  588  annuity to the participant, his or her beneficiary, or his or
  589  her estate, in addition to except for:
  590         a. A lump-sum payment to the beneficiary upon the death of
  591  the participant;
  592         b. A cash-out of a de minimis account upon the request of a
  593  former participant who has been terminated for a minimum of 6
  594  months from the employment that entitled him or her to optional
  595  annuity program participation. A de minimis account is an
  596  account with a provider company containing employer
  597  contributions and accumulated earnings of not more than $5,000
  598  made under the provisions of this chapter. Such cash-out must be
  599  a complete liquidation of the account balance with that company
  600  and is subject to the provisions of the Internal Revenue Code;
  601         c.A mandatory distribution of a de minimis account of a
  602  former participant who has been terminated for a minimum of 6
  603  months from the employment that entitled him or her to optional
  604  annuity program participation as authorized by the department;
  605  or
  606         d.c. A lump-sum direct rollover distribution whereby all
  607  accrued benefits, plus interest and investment earnings, are
  608  paid from the participant’s account directly to the custodian of
  609  an eligible retirement plan, as defined in s. 402(c)(8)(B) of
  610  the Internal Revenue Code, on behalf of the participant.
  611  
  612  As used in this subparagraph, a “de minimis account” means an
  613  account with a provider company containing employer
  614  contributions and accumulated earnings of not more than $5,000
  615  made under this chapter.
  616         2. The benefits payable to any person under the Senior
  617  Management Service Optional Annuity Program, and any
  618  contribution accumulated under such program, shall not be
  619  subject to assignment, execution, or attachment or to any legal
  620  process whatsoever.
  621         3. Except as provided in subparagraph 4., a participant who
  622  terminates employment and receives optional annuity program
  623  benefits funded by employer contributions shall be deemed to be
  624  retired from a state-administered retirement system in the event
  625  of subsequent employment with any employer that participates in
  626  the Florida Retirement System.
  627         4.A participant who receives optional annuity program
  628  benefits funded by employer contributions as a mandatory
  629  distribution of a de minimis account authorized by the
  630  department will not be considered a retiree.
  631         Section 7. Paragraph (a) of subsection (6) of section
  632  121.071, Florida Statutes, is amended to read:
  633         121.071 Contributions.—Contributions to the system shall be
  634  made as follows:
  635         (6)(a) Required employee contributions for all service
  636  other than current service, including, but not limited to, prior
  637  service, past service, military service, leave-of-absence
  638  service, out-of-state service, and certain non-Florida
  639  Retirement System in-state service, shall be paid by cash,
  640  personal check, cashier’s check, or money order, or a direct
  641  rollover or transfer from a qualified plan as provided under the
  642  Internal Revenue Code. The payment must only; shall be
  643  accompanied by a statement identifying the service for which
  644  payment is made; and shall be made in a lump sum for the total
  645  amount due or in annual payments of not less than $100, except
  646  for the final payment if less than $100, unless another method
  647  of payment is authorized by law or rule.
  648         Section 8. Paragraphs (a), (b), (e), (f), and (h) of
  649  subsection (1) of section 121.081, Florida Statutes, are amended
  650  to read:
  651         121.081 Past service; prior service; contributions.
  652  Conditions under which past service or prior service may be
  653  claimed and credited are:
  654         (1)(a) Past service, as defined in s. 121.021(18), may be
  655  claimed as creditable service by officers or employees of a
  656  municipality city, metropolitan planning organization, charter
  657  school, charter technical career center, or special district who
  658  that become a covered group under this system. The governing
  659  body of a covered group in compliance with s. 121.051(2)(b) may
  660  elect to provide benefits for with respect to past service
  661  earned before prior to January 1, 1975, in accordance with this
  662  chapter, and the cost for such past service is shall be
  663  established by applying the following formula: The member
  664  contribution for both regular and special risk members is shall
  665  be 4 percent of the gross annual salary for each year of past
  666  service claimed, plus 4-percent employer matching contribution,
  667  plus 4-percent interest thereon compounded annually, figured on
  668  each year of past service, with interest compounded from date of
  669  annual salary earned until July 1, 1975, and 6.5-percent
  670  interest compounded annually thereafter until date of payment.
  671  Once the total cost for a member has been figured to date, then
  672  after July 1, 1975, 6.5-percent compounded interest shall be
  673  added each June 30 thereafter on any unpaid balance until the
  674  cost of such past service liability is paid in full. The
  675  following formula shall be used in calculating past service
  676  earned before prior to January 1, 1975: (Annual gross salary
  677  multiplied by 8 percent) multiplied by the 4-percent or 6.5
  678  percent compound interest table factor, as may be applicable.
  679  The resulting product equals cost to date for each particular
  680  year of past service.
  681         (b) Past service earned after January 1, 1975, may be
  682  claimed by officers or employees of a municipality city,
  683  metropolitan planning organization, charter school, charter
  684  technical career center, or special district who become that
  685  becomes a covered group under this system. The governing body of
  686  a covered group may elect to provide benefits for with respect
  687  to past service earned after January 1, 1975, in accordance with
  688  this chapter, and the cost for such past service is shall be
  689  established by applying the following formula: The employer
  690  shall contribute an amount equal to the contribution rate in
  691  effect at the time the service was earned, multiplied by the
  692  employee’s gross salary for each year of past service claimed,
  693  plus 6.5-percent interest thereon, compounded annually, figured
  694  on each year of past service, with interest compounded from date
  695  of annual salary earned until date of payment.
  696         (e) Past service, as defined in s. 121.021(18), may be
  697  claimed as creditable service by a member of the Florida
  698  Retirement System who formerly was an officer or employee of a
  699  municipality city, metropolitan planning organization, charter
  700  school, charter technical career center, or special district,
  701  notwithstanding the status or form of the retirement system, if
  702  any, of that municipality city, metropolitan planning
  703  organization, charter school, charter technical career center,
  704  or special district and irrespective of whether such officers or
  705  employees of that city, metropolitan planning organization, or
  706  special district now or hereafter become a covered group under
  707  the Florida Retirement System. Such member may claim creditable
  708  service and be entitled to the benefits accruing to the regular
  709  class of members as provided for the past service claimed under
  710  this paragraph by paying into the retirement trust fund an
  711  amount equal to the total actuarial cost of providing the
  712  additional benefit resulting from such past-service credit,
  713  discounted by the applicable actuarial factors to date of
  714  retirement.
  715         (f) If When any person, either prior to this act or
  716  hereafter, becomes entitled to and participates does participate
  717  in one of the retirement systems under consolidated within or
  718  created by this chapter through the consolidation or merger of
  719  governments or the transfer of functions between units of
  720  government, either at the state or local level or between state
  721  and local units, or through the assumption of functions or
  722  activities by a state or local unit from an employing
  723  governmental entity that which was not an employer under the
  724  system, and such person becomes a member of the Florida
  725  Retirement System, such person is shall be entitled to receive
  726  past-service credit as defined in s. 121.021(18) for the time
  727  the such person performed services for, and was an employee of,
  728  such state or local unit or other governmental employing entity
  729  before prior to the transfer, merger, consolidation, or
  730  assumption of functions and activities. Past-service credit
  731  allowed by this paragraph is shall also be available to any
  732  person who becomes a member of an existing system before, as
  733  defined in s. 121.021(2), prior to December 1, 1970, through the
  734  transfer, merger, consolidation, or assumption of functions and
  735  activities set forth in this paragraph and who subsequently
  736  becomes a member of the Florida Retirement System. However,
  737  credit for the past service may not be granted until
  738  contributions are made in the manner provided in this
  739  subsection. If a person rejected Florida Retirement System
  740  membership at the time of the transfer, merger, or
  741  consolidation, or assumption of governmental functions and
  742  activities, the required contributions shall be at total
  743  actuarial cost as specified in paragraph (e). Such contributions
  744  or accrued interest may not be paid from any public state funds.
  745         (h) The following provisions apply to the purchase of past
  746  service:
  747         1. Notwithstanding any of the provisions of this
  748  subsection, past-service credit may not be purchased under this
  749  chapter for any service that is used to obtain a pension or
  750  benefit from a any local retirement system. Eligibility to
  751  receive or the receipt of contributions to a retirement plan
  752  made by the employer on behalf of the employee is considered a
  753  benefit.
  754         2. A member may not receive past service credit under
  755  paragraphs (a), (b), (e), or (f) for any leaves of absence
  756  without pay, except that credit for active military service
  757  leaves of absence may be claimed under paragraphs (a), (b), and
  758  (f), in accordance with s. 121.111(1).
  759         3.A member may not receive past service credit for co
  760  employer service. Co-employer service or a co-employer
  761  relationship is employment in a single position simultaneously
  762  covered and reported by both a public employer and a private
  763  employer.
  764         4.3. If a member does not want desire to receive credit for
  765  all of his or her past service, the period the member claims
  766  must be the most recent past service prior to his or her
  767  participation in the Florida Retirement System.
  768         5.4. The cost of past service purchased by an employing
  769  agency for its employees may be amortized over the such period
  770  of time as is provided in the agreement, but not to exceed 15
  771  years, calculated in accordance with rule 60S-1.007(5)(f),
  772  Florida Administrative Code.
  773         6.5. The retirement account of each member for whom past
  774  service is being provided by his or her employer shall be
  775  credited with all past service the employer agrees to purchase
  776  as soon as the agreement between the employer and the department
  777  is executed. Pursuant thereto:
  778         a. Each such member’s account shall also be posted with the
  779  total contribution his or her employer agrees to make on in the
  780  member’s behalf for past service earned before prior to October
  781  1, 1975, excluding those contributions representing the
  782  employer’s matching share and the compound interest calculation
  783  on the total contribution. However, a portion of any
  784  contributions paid by an employer for past service credit earned
  785  on and after October 1, 1975, may not be posted to the a
  786  member’s account.
  787         b. A refund of contributions payable after an employer has
  788  made a written agreement to purchase past service for employees
  789  of the covered group includes shall include contributions for
  790  past service which are posted to the a member’s account.
  791  However, contributions for past service earned on and after
  792  October 1, 1975, are not refundable.
  793         Section 9. Subsections (9), (13), and (14) of section
  794  121.091, Florida Statutes, are amended to read:
  795         121.091 Benefits payable under the system.—Benefits may not
  796  be paid under this section unless the member has terminated
  797  employment as provided in s. 121.021(39)(a) or begun
  798  participation in the Deferred Retirement Option Program as
  799  provided in subsection (13), and a proper application has been
  800  filed in the manner prescribed by the department. The department
  801  may cancel an application for retirement benefits when the
  802  member or beneficiary fails to timely provide the information
  803  and documents required by this chapter and the department’s
  804  rules. The department shall adopt rules establishing procedures
  805  for application for retirement benefits and for the cancellation
  806  of such application when the required information or documents
  807  are not received.
  808         (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
  809         (a) Any person who is retired under this chapter, except
  810  under the disability retirement provisions of subsection (4),
  811  may be employed by an employer that does not participate in a
  812  state-administered retirement system and may receive
  813  compensation from that employment without limiting or
  814  restricting in any way the retirement benefits payable to that
  815  person.
  816         (b)1. Any person whose retirement is effective before July
  817  1, 2010, or whose participation in the Deferred Retirement
  818  Option Program terminates before July 1, 2010, who is retired
  819  under this chapter, except under the disability retirement
  820  provisions of subsection (4) or as provided in s. 121.053, may
  821  be reemployed by an any private or public employer that
  822  participates in a state-administered retirement system after
  823  retirement and receive retirement benefits and compensation from
  824  that his or her employer without any limitations, except that
  825  the a person may not be reemployed by an employer receive both a
  826  salary from reemployment with any agency participating in the
  827  Florida Retirement System before meeting the definition of
  828  termination in s. 121.021(39) and may not receive both a salary
  829  from the employer and retirement benefits under this chapter for
  830  a period of 12 calendar months immediately subsequent to the
  831  date of retirement. However, a DROP participant shall continue
  832  employment and receive a salary during the period of
  833  participation in the Deferred Retirement Option Program, as
  834  provided in subsection (13).
  835         1.2.A retiree Any person to whom the limitation in
  836  subparagraph 1. applies who violates such reemployment
  837  limitation and who is reemployed with any agency participating
  838  in the Florida Retirement System before completion of the 12
  839  month limitation period must shall give timely notice of this
  840  fact in writing to the employer and to the Division of
  841  Retirement or the state board and shall have his or her
  842  retirement benefits suspended for the months employed or the
  843  balance of the 12-month limitation period as required in sub
  844  subparagraphs b. and c. A retiree Any person employed in
  845  violation of this paragraph and an employer who any employing
  846  agency which knowingly employs or appoints such person are
  847  without notifying the Division of Retirement to suspend
  848  retirement benefits shall be jointly and severally liable for
  849  reimbursement to the retirement trust fund, including the
  850  Florida Retirement System Trust Fund and the Public employee
  851  Optional Retirement Program Trust Fund, from which the benefits
  852  were paid of any benefits paid during the reemployment
  853  limitation period. The employer must To avoid liability, such
  854  employing agency shall have a written statement from the retiree
  855  that he or she is not retired from a state-administered
  856  retirement system. Any retirement benefits received while
  857  reemployed during this reemployment limitation period shall be
  858  repaid to the retirement trust fund, and Retirement benefits
  859  shall remain suspended until such repayment has been made.
  860  Benefits suspended beyond the reemployment limitation shall
  861  apply toward repayment of benefits received in violation of the
  862  reemployment limitation.
  863         a.3. A district school board may reemploy a retiree retired
  864  member as a substitute or hourly teacher, education
  865  paraprofessional, transportation assistant, bus driver, or food
  866  service worker on a noncontractual basis after he or she has
  867  been retired for 1 calendar month, in accordance with s.
  868  121.021(39). A district school board may reemploy a retiree
  869  retired member as instructional personnel, as defined in s.
  870  1012.01(2)(a), on an annual contractual basis after he or she
  871  has been retired for 1 calendar month, in accordance with s.
  872  121.021(39). Any other retired member who is reemployed within 1
  873  calendar month after retirement shall void his or her
  874  application for retirement benefits. District school boards
  875  reemploying such teachers, education paraprofessionals,
  876  transportation assistants, bus drivers, or food service workers
  877  are subject to the retirement contribution required by
  878  subparagraph 2. 7.
  879         b.4. A community college board of trustees may reemploy a
  880  retiree retired member as an adjunct instructor, that is, an
  881  instructor who is noncontractual and part-time, or as a
  882  participant in a phased retirement program within the Florida
  883  Community College System, after he or she has been retired for 1
  884  calendar month, in accordance with s. 121.021(39). A Any retired
  885  member who is reemployed within 1 calendar month after
  886  retirement shall void his or her application for retirement
  887  benefits. Boards of trustees reemploying such instructors are
  888  subject to the retirement contribution required in subparagraph
  889  2. 7. A retiree retired member may be reemployed as an adjunct
  890  instructor for no more than 780 hours during the first 12 months
  891  of retirement. A retiree Any retired member reemployed for more
  892  than 780 hours during the first 12 months of retirement must
  893  shall give timely notice in writing to the employer and to the
  894  Division of Retirement or the state board of the date he or she
  895  will exceed the limitation. The division shall suspend his or
  896  her retirement benefits for the remainder of the first 12 months
  897  of retirement. Any retiree person employed in violation of this
  898  sub-subparagraph subparagraph and any employer who employing
  899  agency which knowingly employs or appoints such person without
  900  notifying the division of Retirement to suspend retirement
  901  benefits are shall be jointly and severally liable for
  902  reimbursement to the retirement trust fund of any benefits paid
  903  during the reemployment limitation period. The employer must To
  904  avoid liability, such employing agency shall have a written
  905  statement from the retiree that he or she is not retired from a
  906  state-administered retirement system. Any retirement benefits
  907  received by the retiree a retired member while reemployed in
  908  excess of 780 hours during the first 12 months of retirement
  909  must shall be repaid to the Florida Retirement System Trust
  910  Fund, and retirement benefits shall remain suspended until
  911  repayment is made. Benefits suspended beyond the end of the
  912  retiree’s retired member’s first 12 months of retirement shall
  913  apply toward repayment of benefits received in violation of the
  914  780-hour reemployment limitation.
  915         c.5. The State University System may reemploy a retiree
  916  retired member as an adjunct faculty member or as a participant
  917  in a phased retirement program within the State University
  918  System after the retiree retired member has been retired for 1
  919  calendar month, in accordance with s. 121.021(39). A Any retired
  920  member who is reemployed within 1 calendar month after
  921  retirement shall void his or her application for retirement
  922  benefits. The State University System is subject to the retired
  923  contribution required in subparagraph 2. 7., as appropriate. A
  924  retiree retired member may be reemployed as an adjunct faculty
  925  member or a participant in a phased retirement program for no
  926  more than 780 hours during the first 12 months of his or her
  927  retirement. A retiree Any retired member reemployed for more
  928  than 780 hours during the first 12 months of retirement must
  929  shall give timely notice in writing to the employer and to the
  930  Division of Retirement or the state board of the date he or she
  931  will exceed the limitation. The division shall suspend his or
  932  her retirement benefits for the remainder of the first 12 months
  933  of retirement. Any retiree person employed in violation of this
  934  sub-subparagraph subparagraph and any employer who employing
  935  agency which knowingly employs or appoints such person without
  936  notifying the division of Retirement to suspend retirement
  937  benefits are shall be jointly and severally liable for
  938  reimbursement to the retirement trust fund of any benefits paid
  939  during the reemployment limitation period. The employer must To
  940  avoid liability, such employing agency shall have a written
  941  statement from the retiree that he or she is not retired from a
  942  state-administered retirement system. Any retirement benefits
  943  received by the retiree a retired member while reemployed in
  944  excess of 780 hours during the first 12 months of retirement
  945  must shall be repaid to the Florida Retirement System Trust
  946  Fund, and retirement benefits shall remain suspended until
  947  repayment is made. Benefits suspended beyond the end of the
  948  retiree’s retired member’s first 12 months of retirement shall
  949  apply toward repayment of benefits received in violation of the
  950  780-hour reemployment limitation.
  951         d.6. The Board of Trustees of the Florida School for the
  952  Deaf and the Blind may reemploy a retiree retired member as a
  953  substitute teacher, substitute residential instructor, or
  954  substitute nurse on a noncontractual basis after he or she has
  955  been retired for 1 calendar month, in accordance with s.
  956  121.021(39). Any retired member who is reemployed within 1
  957  calendar month after retirement shall void his or her
  958  application for retirement benefits. The Board of Trustees of
  959  the Florida School for the Deaf and the Blind reemploying such
  960  teachers, residential instructors, or nurses is subject to the
  961  retirement contribution required by subparagraph 2. 7.
  962  Reemployment of a retired member as a substitute teacher,
  963  substitute residential instructor, or substitute nurse is
  964  limited to 780 hours during the first 12 months of his or her
  965  retirement. Any retired member reemployed for more than 780
  966  hours during the first 12 months of retirement shall give timely
  967  notice in writing to the employer and to the division of the
  968  date he or she will exceed the limitation. The division shall
  969  suspend his or her retirement benefits for the remainder of the
  970  first 12 months of retirement. Any person employed in violation
  971  of this subparagraph and any employing agency which knowingly
  972  employs or appoints such person without notifying the division
  973  of Retirement to suspend retirement benefits shall be jointly
  974  and severally liable for reimbursement to the retirement trust
  975  fund of any benefits paid during the reemployment limitation
  976  period. To avoid liability, such employing agency shall have a
  977  written statement from the retiree that he or she is not retired
  978  from a state-administered retirement system. Any retirement
  979  benefits received by a retired member while reemployed in excess
  980  of 780 hours during the first 12 months of retirement shall be
  981  repaid to the Retirement System Trust Fund, and his or her
  982  retirement benefits shall remain suspended until payment is
  983  made. Benefits suspended beyond the end of the retired member’s
  984  first 12 months of retirement shall apply toward repayment of
  985  benefits received in violation of the 780-hour reemployment
  986  limitation.
  987         e.A developmental research school may reemploy a retiree
  988  as a substitute or hourly teacher or an education
  989  paraprofessional as defined in s. 1012.01(2) on a noncontractual
  990  basis after he or she has been retired for 1 calendar month. A
  991  developmental research school may reemploy a retiree as
  992  instructional personnel, as defined in s. 1012.01(2)(a), on an
  993  annual contractual basis after he or she has been retired for 1
  994  calendar month after retirement. Any member who is reemployed
  995  within 1 calendar month voids his or her application for
  996  retirement benefits. A developmental research school that
  997  reemploys retired teachers and education paraprofessionals is
  998  subject to the retirement contribution required by subparagraph
  999  2.
 1000         f.A charter school may reemploy a retiree as a substitute
 1001  or hourly teacher on a noncontractual basis after he or she has
 1002  been retired for 1 calendar month. A charter school may reemploy
 1003  a retired member as instructional personnel, as defined in s.
 1004  1012.01(2)(a), on an annual contractual basis after he or she
 1005  has been retired for 1 calendar month after retirement. Any
 1006  member who is reemployed within 1 calendar month voids his or
 1007  her application for retirement benefits. A charter school that
 1008  reemploys such teachers is subject to the retirement
 1009  contribution required by subparagraph 2.
 1010         2.7.  The employment by an employer of a any retiree or
 1011  DROP participant of a any state-administered retirement system
 1012  does not affect shall have no effect on the average final
 1013  compensation or years of creditable service of the retiree or
 1014  DROP participant. Before Prior to July 1, 1991, upon employment
 1015  of any person, other than an elected officer as provided in s.
 1016  121.053, who is has been retired under a any state-administered
 1017  retirement program, the employer shall pay retirement
 1018  contributions in an amount equal to the unfunded actuarial
 1019  liability portion of the employer contribution which would be
 1020  required for regular members of the Florida Retirement System.
 1021  Effective July 1, 1991, contributions shall be made as provided
 1022  in s. 121.122 for retirees who have with renewed membership or,
 1023  as provided in subsection (13), for with respect to DROP
 1024  participants.
 1025         8.Any person who has previously retired and who is holding
 1026  an elective public office or an appointment to an elective
 1027  public office eligible for the Elected Officers’ Class on or
 1028  after July 1, 1990, shall be enrolled in the Florida Retirement
 1029  System as provided in s. 121.053(1)(b) or, if holding an
 1030  elective public office that does not qualify for the Elected
 1031  Officers’ Class on or after July 1, 1991, shall be enrolled in
 1032  the Florida Retirement System as provided in s. 121.122, and
 1033  shall continue to receive retirement benefits as well as
 1034  compensation for the elected officer’s service for as long as he
 1035  or she remains in elective office. However, any retired member
 1036  who served in an elective office prior to July 1, 1990,
 1037  suspended his or her retirement benefit, and had his or her
 1038  Florida Retirement System membership reinstated shall, upon
 1039  retirement from such office, have his or her retirement benefit
 1040  recalculated to include the additional service and compensation
 1041  earned.
 1042         3.9. Any person who is holding an elective public office
 1043  which is covered by the Florida Retirement System and who is
 1044  concurrently employed in nonelected covered employment may elect
 1045  to retire while continuing employment in the elective public
 1046  office if, provided that he or she terminates shall be required
 1047  to terminate his or her nonelected covered employment. Such Any
 1048  person who exercises this election shall receive his or her
 1049  retirement benefits in addition to the compensation of the
 1050  elective office without regard to the time limitations otherwise
 1051  provided in this subsection. A No person who seeks to exercise
 1052  the provisions of this subparagraph, as they the same existed
 1053  before prior to May 3, 1984, may not be shall be deemed to be
 1054  retired under those provisions, unless such person is eligible
 1055  to retire under the provisions of this subparagraph, as amended
 1056  by chapter 84-11, Laws of Florida.
 1057         10.The limitations of this paragraph apply to reemployment
 1058  in any capacity with an “employer” as defined in s. 121.021(10),
 1059  irrespective of the category of funds from which the person is
 1060  compensated.
 1061         11.An employing agency may reemploy a retired member as a
 1062  firefighter or paramedic after the retired member has been
 1063  retired for 1 calendar month, in accordance with s. 121.021(39).
 1064  Any retired member who is reemployed within 1 calendar month
 1065  after retirement shall void his or her application for
 1066  retirement benefits. The employing agency reemploying such
 1067  firefighter or paramedic is subject to the retired contribution
 1068  required in subparagraph 8. Reemployment of a retired
 1069  firefighter or paramedic is limited to no more than 780 hours
 1070  during the first 12 months of his or her retirement. Any retired
 1071  member reemployed for more than 780 hours during the first 12
 1072  months of retirement shall give timely notice in writing to the
 1073  employer and to the division of the date he or she will exceed
 1074  the limitation. The division shall suspend his or her retirement
 1075  benefits for the remainder of the first 12 months of retirement.
 1076  Any person employed in violation of this subparagraph and any
 1077  employing agency which knowingly employs or appoints such person
 1078  without notifying the Division of Retirement to suspend
 1079  retirement benefits shall be jointly and severally liable for
 1080  reimbursement to the Retirement System Trust Fund of any
 1081  benefits paid during the reemployment limitation period. To
 1082  avoid liability, such employing agency shall have a written
 1083  statement from the retiree that he or she is not retired from a
 1084  state-administered retirement system. Any retirement benefits
 1085  received by a retired member while reemployed in excess of 780
 1086  hours during the first 12 months of retirement shall be repaid
 1087  to the Retirement System Trust Fund, and retirement benefits
 1088  shall remain suspended until repayment is made. Benefits
 1089  suspended beyond the end of the retired member’s first 12 months
 1090  of retirement shall apply toward repayment of benefits received
 1091  in violation of the 780-hour reemployment limitation.
 1092         (c)Any person whose retirement is effective on or after
 1093  July 1, 2010, or whose participation in the Deferred Retirement
 1094  Option Program terminates on or after July 1, 2010, except as
 1095  provided under the disability retirement provisions of
 1096  subsection (4) or under s. 121.053, may be reemployed by an
 1097  employer that participates in a state-administered retirement
 1098  system and receive retirement benefits and compensation from
 1099  that his or her employer without limitation, except that the
 1100  person may not be reemployed by an employer participating in the
 1101  Florida Retirement System for 6 calendar months immediately
 1102  subsequent to the date of retirement. However, a DROP
 1103  participant shall continue employment and receive a salary
 1104  during the period of participation in the Deferred Retirement
 1105  Option Program, as provided in subsection (13). A retiree
 1106  initially reemployed in violation of this paragraph and an
 1107  employer that employs or appoints such person are jointly and
 1108  severally liable for reimbursement of any retirement benefits
 1109  paid to the retirement trust fund from which the benefits were
 1110  paid, including the Florida Retirement System Trust Fund and the
 1111  Public Employee Optional Retirement Program Trust Fund, as
 1112  appropriate. The employer must have a written statement from the
 1113  employee that he or she is not retired from a state-administered
 1114  retirement system.
 1115         (d)(c) The provisions of this subsection apply to retirees,
 1116  as defined in s. 121.4501(2)(j), of the Public Employee Optional
 1117  Retirement Program created in part II, subject to the following
 1118  conditions:
 1119         1. The Such retirees may not be reemployed with an employer
 1120  participating in the Florida Retirement System as provided in
 1121  paragraph (b) until such person has been retired for 6 3
 1122  calendar months, unless the participant has reached the normal
 1123  retirement requirements of the defined benefit plan as provided
 1124  in s. 121.021(29).
 1125         2. A Such retiree employed in violation of this subsection
 1126  and an employer any employing agency that knowingly employs or
 1127  appoints such person are shall be jointly and severally liable
 1128  for reimbursement of any benefits paid to the retirement trust
 1129  fund from which the benefits were paid, including the Retirement
 1130  System Trust Fund and the Public Employee Optional Retirement
 1131  Program Trust Fund, as appropriate. The employer To avoid
 1132  liability, such employing agency must have a written statement
 1133  from the retiree that he or she is not retired from a state
 1134  administered retirement system.
 1135         (e)The limitations of this subsection apply to
 1136  reemployment in any capacity irrespective of the category of
 1137  funds from which the person is compensated.
 1138         (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
 1139  subject to the provisions of this section, the Deferred
 1140  Retirement Option Program, hereinafter referred to as the DROP,
 1141  is a program under which an eligible member of the Florida
 1142  Retirement System may elect to participate, deferring receipt of
 1143  retirement benefits while continuing employment with his or her
 1144  Florida Retirement System employer. The deferred monthly
 1145  benefits shall accrue in the Florida Retirement System Trust
 1146  Fund on behalf of the participant, plus interest compounded
 1147  monthly, for the specified period of the DROP participation, as
 1148  provided in paragraph (c). Upon termination of employment, the
 1149  participant shall receive the total DROP benefits and begin to
 1150  receive the previously determined normal retirement benefits.
 1151  Participation in the DROP does not guarantee employment for the
 1152  specified period of DROP. Participation in the DROP by an
 1153  eligible member beyond the initial 60-month period as authorized
 1154  in this subsection shall be on an annual contractual basis for
 1155  all participants.
 1156         (a) Eligibility of member to participate in the DROP.—All
 1157  active Florida Retirement System members in a regularly
 1158  established position, and all active members of either the
 1159  Teachers’ Retirement System established in chapter 238 or the
 1160  State and County Officers’ and Employees’ Retirement System
 1161  established in chapter 122, which systems are consolidated
 1162  within the Florida Retirement System under s. 121.011, are
 1163  eligible to elect participation in the DROP if provided that:
 1164         1. The member is not a renewed member of the Florida
 1165  Retirement System under s. 121.122, or a member of the State
 1166  Community College System Optional Retirement Program under s.
 1167  121.051, the Senior Management Service Optional Annuity Program
 1168  under s. 121.055, or the optional retirement program for the
 1169  State University System under s. 121.35.
 1170         2. Except as provided in subparagraph 6., election to
 1171  participate is made within 12 months immediately following the
 1172  date on which the member first reaches normal retirement date,
 1173  or, for a member who reaches normal retirement date based on
 1174  service before he or she reaches age 62, or age 55 for Special
 1175  Risk Class members, election to participate may be deferred to
 1176  the 12 months immediately following the date the member attains
 1177  57, or age 52 for Special Risk Class members. A member who
 1178  delays DROP participation during the 12-month period immediately
 1179  following his or her maximum DROP deferral date, except as
 1180  provided in subparagraph 6., loses a month of DROP participation
 1181  for each month delayed. For a member who first reached normal
 1182  retirement date or the deferred eligibility date described above
 1183  prior to the effective date of this section, election to
 1184  participate shall be made within 12 months after the effective
 1185  date of this section. A member who fails to make an election
 1186  within the such 12-month limitation period forfeits shall
 1187  forfeit all rights to participate in the DROP. The member shall
 1188  advise his or her employer and the division in writing of the
 1189  date on which the DROP begins shall begin. The Such beginning
 1190  date may be subsequent to the 12-month election period, but must
 1191  be within the original 60-month participation or, with respect
 1192  to members who are instructional personnel employed by the
 1193  Florida School for the Deaf and the Blind and who have received
 1194  authorization by the Board of Trustees of the Florida School for
 1195  the Deaf and the Blind to participate in the DROP beyond 60
 1196  months, or who are instructional personnel as defined in s.
 1197  1012.01(2)(a)-(d) in grades K-12 and who have received
 1198  authorization by the district school superintendent to
 1199  participate in the DROP beyond 60 months, the 96-month
 1200  limitation period as provided in subparagraph (b)1. When
 1201  establishing eligibility of the member to participate in the
 1202  DROP for the 60-month or, with respect to members who are
 1203  instructional personnel employed by the Florida School for the
 1204  Deaf and the Blind and who have received authorization by the
 1205  Board of Trustees of the Florida School for the Deaf and the
 1206  Blind to participate in the DROP beyond 60 months, or who are
 1207  instructional personnel as defined in s. 1012.01(2)(a)-(d) in
 1208  grades K-12 and who have received authorization by the district
 1209  school superintendent to participate in the DROP beyond 60
 1210  months, the 96-month maximum participation period, the member
 1211  may elect to include or exclude any optional service credit
 1212  purchased by the member from the total service used to establish
 1213  the normal retirement date. A member who has with dual normal
 1214  retirement dates is shall be eligible to elect to participate in
 1215  DROP within 12 months after attaining normal retirement date in
 1216  either class.
 1217         3. The employer of a member electing to participate in the
 1218  DROP, or employers if dually employed, shall acknowledge in
 1219  writing to the division the date the member’s participation in
 1220  the DROP begins and the date the member’s employment and DROP
 1221  participation will terminate.
 1222         4. Simultaneous employment of a participant by additional
 1223  Florida Retirement System employers subsequent to the
 1224  commencement of participation in the DROP is shall be
 1225  permissible if provided such employers acknowledge in writing a
 1226  DROP termination date no later than the participant’s existing
 1227  termination date or the maximum participation 60-month
 1228  limitation period as provided in subparagraph (b)1.
 1229         5. A DROP participant may change employers while
 1230  participating in the DROP, subject to the following:
 1231         a. A change of employment must take place without a break
 1232  in service so that the member receives salary for each month of
 1233  continuous DROP participation. If a member receives no salary
 1234  during a month, DROP participation shall cease unless the
 1235  employer verifies a continuation of the employment relationship
 1236  for such participant pursuant to s. 121.021(39)(b).
 1237         b. Such participant and new employer shall notify the
 1238  division of the identity of the new employer on forms required
 1239  by the division as to the identity of the new employer.
 1240         c. The new employer shall acknowledge, in writing, the
 1241  participant’s DROP termination date, which may be extended but
 1242  not beyond the maximum participation original 60-month or, with
 1243  respect to members who are instructional personnel employed by
 1244  the Florida School for the Deaf and the Blind and who have
 1245  received authorization by the Board of Trustees of the Florida
 1246  School for the Deaf and the Blind to participate in the DROP
 1247  beyond 60 months, or who are instructional personnel as defined
 1248  in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
 1249  authorization by the district school superintendent to
 1250  participate in the DROP beyond 60 months, the 96-month period
 1251  provided in subparagraph (b)1., shall acknowledge liability for
 1252  any additional retirement contributions and interest required if
 1253  the participant fails to timely terminate employment, and is
 1254  shall be subject to the adjustment required in sub-subparagraph
 1255  (c)5.d.
 1256         6. Effective July 1, 2001, for instructional personnel as
 1257  defined in s. 1012.01(2), election to participate in the DROP
 1258  may shall be made at any time following the date on which the
 1259  member first reaches normal retirement date. The member shall
 1260  advise his or her employer and the division in writing of the
 1261  date on which DROP begins the Deferred Retirement Option Program
 1262  shall begin. When establishing eligibility of the member to
 1263  participate in the DROP for the 60-month or, with respect to
 1264  members who are instructional personnel employed by the Florida
 1265  School for the Deaf and the Blind and who have received
 1266  authorization by the Board of Trustees of the Florida School for
 1267  the Deaf and the Blind to participate in the DROP beyond 60
 1268  months, or who are instructional personnel as defined in s.
 1269  1012.01(2)(a)-(d) in grades K-12 and who have received
 1270  authorization by the district school superintendent to
 1271  participate in the DROP beyond 60 months, the 96-month maximum
 1272  participation period, as provided in subparagraph (b)1., the
 1273  member may elect to include or exclude any optional service
 1274  credit purchased by the member from the total service used to
 1275  establish the normal retirement date. A member who has with dual
 1276  normal retirement dates is shall be eligible to elect to
 1277  participate in either class.
 1278         (b) Participation in the DROP.—
 1279         1. An eligible member may elect to participate in the DROP
 1280  for a period not to exceed a maximum of 60 calendar months.
 1281  However, or, with respect to members who are instructional
 1282  personnel employed by the Florida School for the Deaf and the
 1283  Blind and authorized who have received authorization by the
 1284  Board of Trustees of the Florida School for the Deaf and the
 1285  Blind to participate in the DROP beyond 60 months, or who are
 1286  instructional personnel as defined in s. 1012.01(2)(a)-(d) in
 1287  grades K-12 and authorized who have received authorization by
 1288  the district school superintendent to participate in the DROP
 1289  beyond 60 calendar months, or who are instructional personnel as
 1290  defined in s. 1012.01(2)(a) employed by a developmental research
 1291  school and authorized by the school’s director, or if the school
 1292  has no director, by the school’s principal, may participate in
 1293  DROP for up to 36 calendar months beyond the 60-month period. 96
 1294  calendar months immediately following the date on which the
 1295  member first reaches his or her normal retirement date or the
 1296  date to which he or she is eligible to defer his or her election
 1297  to participate as provided in subparagraph (a)2. However, a
 1298  member who has reached normal retirement date prior to the
 1299  effective date of the DROP shall be eligible to participate in
 1300  the DROP for a period of time not to exceed 60 calendar months
 1301  or, with respect to members who are instructional personnel
 1302  employed by the Florida School for the Deaf and the Blind and
 1303  who have received authorization by the Board of Trustees of the
 1304  Florida School for the Deaf and the Blind to participate in the
 1305  DROP beyond 60 months, or who are instructional personnel as
 1306  defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
 1307  received authorization by the district school superintendent to
 1308  participate in the DROP beyond 60 calendar months, 96 calendar
 1309  months immediately following the effective date of the DROP,
 1310  except a member of the Special Risk Class who has reached normal
 1311  retirement date prior to the effective date of the DROP and
 1312  whose total accrued value exceeds 75 percent of average final
 1313  compensation as of his or her effective date of retirement shall
 1314  be eligible to participate in the DROP for no more than 36
 1315  calendar months immediately following the effective date of the
 1316  DROP.
 1317         2. Upon deciding to participate in the DROP, the member
 1318  shall submit, on forms required by the division:
 1319         a. A written election to participate in the DROP;
 1320         b. Selection of the DROP participation and termination
 1321  dates that, which satisfy the limitations stated in paragraph
 1322  (a) and subparagraph 1. The Such termination date must shall be
 1323  in a binding letter of resignation to with the employer,
 1324  establishing a deferred termination date. The member may change
 1325  the termination date within the limitations of subparagraph 1.,
 1326  but only with the written approval of the his or her employer;
 1327         c. A properly completed DROP application for service
 1328  retirement as provided in this section; and
 1329         d. Any other information required by the division.
 1330         3. The DROP participant is shall be a retiree under the
 1331  Florida Retirement System for all purposes, except for paragraph
 1332  (5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
 1333  and 121.122. DROP participation is final and may not be canceled
 1334  by the participant after the first payment is credited during
 1335  the DROP participation period. However, participation in the
 1336  DROP does not alter the participant’s employment status, and the
 1337  member is such employee shall not be deemed retired from
 1338  employment until his or her deferred resignation is effective
 1339  and termination occurs as provided in s. 121.021(39).
 1340         4. Elected officers are shall be eligible to participate in
 1341  the DROP subject to the following:
 1342         a. An elected officer who reaches normal retirement date
 1343  during a term of office may defer the election to participate in
 1344  the DROP until the next succeeding term in that office. An Such
 1345  elected officer who exercises this option may participate in the
 1346  DROP for up to 60 calendar months or a period of no longer than
 1347  the such succeeding term of office, whichever is less.
 1348         b. An elected or a nonelected participant may run for a
 1349  term of office while participating in DROP and, if elected,
 1350  extend the DROP termination date accordingly;, except, however,
 1351  if such additional term of office exceeds the 60-month
 1352  limitation established in subparagraph 1., and the officer does
 1353  not resign from office within such 60-month limitation, the
 1354  retirement and the participant’s DROP is shall be null and void
 1355  as provided in sub-subparagraph (c)5.d.
 1356         c. An elected officer who is dually employed and elects to
 1357  participate in DROP must meet shall be required to satisfy the
 1358  definition of termination in s. 121.021(39) within the original
 1359  60-month period or maximum participation, with respect to
 1360  members who are instructional personnel employed by the Florida
 1361  School for the Deaf and the Blind and who have received
 1362  authorization by the Board of Trustees of the Florida School for
 1363  the Deaf and the Blind to participate in the DROP beyond 60
 1364  months, or who are instructional personnel as defined in s.
 1365  1012.01(2)(a)-(d) in grades K-12 and who have received
 1366  authorization by the district school superintendent to
 1367  participate in the DROP beyond 60 months, the 96-month
 1368  limitation period as provided in subparagraph 1. for the
 1369  nonelected position and may continue employment as an elected
 1370  officer as provided in s. 121.053. The elected officer shall
 1371  will be enrolled as a renewed member in the Elected Officers’
 1372  Class or the Regular Class, as provided in ss. 121.053 and
 1373  121.122, on the first day of the month after termination of
 1374  employment in the nonelected position and termination of DROP.
 1375  Distribution of the DROP benefits shall be made as provided in
 1376  paragraph (c).
 1377         (c) Benefits payable under the DROP.—
 1378         1. Effective on with the date of DROP participation, the
 1379  member’s initial normal monthly benefit, including creditable
 1380  service, optional form of payment, and average final
 1381  compensation, and the effective date of retirement are shall be
 1382  fixed. The beneficiary established under the Florida Retirement
 1383  System is shall be the beneficiary eligible to receive any DROP
 1384  benefits payable if the DROP participant dies before completing
 1385  prior to the completion of the period of DROP participation. If
 1386  In the event a joint annuitant predeceases the member, the
 1387  member may name a beneficiary to receive accumulated DROP
 1388  benefits payable. The Such retirement benefit, the annual cost
 1389  of living adjustments provided in s. 121.101, and interest shall
 1390  accrue monthly in the Florida Retirement System Trust Fund. The
 1391  Such interest accrues shall accrue at an effective annual rate
 1392  of 6.5 percent compounded monthly, on the prior month’s
 1393  accumulated ending balance, up to the month of termination or
 1394  death, except as provided in s. 121.053(1)(b)5.
 1395         2. Each employee who elects to participate in the DROP may
 1396  shall be allowed to elect to receive a lump-sum payment for
 1397  accrued annual leave earned in accordance with agency policy
 1398  upon beginning participation in the DROP. The Such accumulated
 1399  leave payment certified to the division upon commencement of
 1400  DROP shall be included in the calculation of the member’s
 1401  average final compensation. The employee electing the such lump
 1402  sum payment is upon beginning participation in DROP will not be
 1403  eligible to receive a second lump-sum payment upon termination,
 1404  except to the extent the employee has earned additional annual
 1405  leave which, combined with the original payment, does not exceed
 1406  the maximum lump-sum payment allowed by the employing agency’s
 1407  policy or rules. An Such early lump-sum payment shall be based
 1408  on the hourly wage of the employee at the time he or she begins
 1409  participation in the DROP. If the member elects to wait and
 1410  receive a such lump-sum payment upon termination of DROP and
 1411  termination of employment with the employer, any accumulated
 1412  leave payment made at that time may not cannot be included in
 1413  the member’s retirement benefit, which was determined and fixed
 1414  by law when the employee elected to participate in the DROP.
 1415         3. The effective date of DROP participation and the
 1416  effective date of retirement of a DROP participant shall be the
 1417  first day of the month selected by the member to begin
 1418  participation in the DROP, provided such date is properly
 1419  established, with the written confirmation of the employer, and
 1420  the approval of the division, on forms required by the division.
 1421         4. Normal retirement benefits and any interest thereon
 1422  shall continue to accrue in the DROP until the established
 1423  termination date of the DROP, or until the participant
 1424  terminates employment or dies prior to such date, except as
 1425  provided in s. 121.053(1)(b)5. Although individual DROP accounts
 1426  shall not be established, a separate accounting of each
 1427  participant’s accrued benefits under the DROP shall be
 1428  calculated and provided to participants.
 1429         5. At the conclusion of the participant’s DROP, the
 1430  division shall distribute the participant’s total accumulated
 1431  DROP benefits, subject to the following provisions:
 1432         a. The division shall receive verification by the
 1433  participant’s employer or employers that the such participant
 1434  has terminated all employment relationships as provided in s.
 1435  121.021(39)(b).
 1436         b. The terminated DROP participant or, if deceased, the
 1437  such participant’s named beneficiary, shall elect on forms
 1438  provided by the division to receive payment of the DROP benefits
 1439  in accordance with one of the options listed below. If For a
 1440  participant or beneficiary who fails to elect a method of
 1441  payment within 60 days after of termination of the DROP, the
 1442  division shall will pay a lump sum as provided in sub-sub
 1443  subparagraph (I).
 1444         (I) Lump sum.—All accrued DROP benefits, plus interest,
 1445  less withholding taxes remitted to the Internal Revenue Service,
 1446  shall be paid to the DROP participant or surviving beneficiary.
 1447         (II) Direct rollover.—All accrued DROP benefits, plus
 1448  interest, shall be paid from the DROP directly to the custodian
 1449  of an eligible retirement plan as defined in s. 402(c)(8)(B) of
 1450  the Internal Revenue Code. However, in the case of an eligible
 1451  rollover distribution to the surviving spouse of a deceased
 1452  participant, an eligible retirement plan is an individual
 1453  retirement account or an individual retirement annuity as
 1454  described in s. 402(c)(9) of the Internal Revenue Code.
 1455         (III) Partial lump sum.—A portion of the accrued DROP
 1456  benefits shall be paid to the DROP participant or surviving
 1457  spouse, less withholding taxes remitted to the Internal Revenue
 1458  Service, and the remaining DROP benefits must shall be
 1459  transferred directly to the custodian of an eligible retirement
 1460  plan as defined in s. 402(c)(8)(B) of the Internal Revenue Code.
 1461  However, in the case of an eligible rollover distribution to the
 1462  surviving spouse of a deceased participant, an eligible
 1463  retirement plan is an individual retirement account or an
 1464  individual retirement annuity as described in s. 402(c)(9) of
 1465  the Internal Revenue Code. The proportions must shall be
 1466  specified by the DROP participant or surviving beneficiary.
 1467         c. The form of payment selected by the DROP participant or
 1468  surviving beneficiary must comply complies with the minimum
 1469  distribution requirements of the Internal Revenue Code.
 1470         d. A DROP participant who fails to terminate all employment
 1471  relationships as provided defined in s. 121.021(39)(b) shall be
 1472  deemed as not to be retired, and the DROP election is shall be
 1473  null and void. Florida Retirement System membership shall be
 1474  reestablished retroactively to the date of the commencement of
 1475  the DROP, and each employer with whom the participant continues
 1476  employment must shall be required to pay to the Florida
 1477  Retirement System Trust Fund the difference between the DROP
 1478  contributions paid in paragraph (i) and the contributions
 1479  required for the applicable Florida Retirement System class of
 1480  membership during the period the member participated in the
 1481  DROP, plus 6.5 percent interest compounded annually.
 1482         6.The retirement benefits of any DROP participant who
 1483  terminates all employment relationships as provided in s.
 1484  121.021(39) but is reemployed in violation of the reemployment
 1485  provisions subsection (9) shall be suspended during those months
 1486  in which the retiree is in violation. Any retiree in violation
 1487  of this subparagraph and any employer that employs or appoints
 1488  such person without notifying the Division of Retirement to
 1489  suspend retirement benefits are jointly and severally liable for
 1490  any benefits paid during the reemployment limitation period. To
 1491  avoid liability, the employer must have a written statement from
 1492  the retiree that he or she is not retired from a state
 1493  administered retirement system. Any retirement benefits received
 1494  by a retiree while employed in violation of the reemployment
 1495  limitations must be repaid to the Florida Retirement System
 1496  Trust Fund, and his or her retirement benefits shall remain
 1497  suspended until payment is made. Benefits suspended beyond the
 1498  end of the retired retiree’s first 6 calendar months shall apply
 1499  toward repayment of benefits received in violation of the
 1500  reemployment limitation.
 1501         7.6. The accrued benefits of any DROP participant, and any
 1502  contributions accumulated under the such program, are shall not
 1503  be subject to assignment, execution, attachment, or to any legal
 1504  process whatsoever, except for qualified domestic relations
 1505  orders by a court of competent jurisdiction, income deduction
 1506  orders as provided in s. 61.1301, and federal income tax levies.
 1507         8.7. DROP participants are shall not be eligible for
 1508  disability retirement benefits as provided in subsection (4).
 1509         (d) Death benefits under the DROP.—
 1510         1. Upon the death of a DROP participant, the named
 1511  beneficiary is shall be entitled to apply for and receive the
 1512  accrued benefits in the DROP as provided in sub-subparagraph
 1513  (c)5.b.
 1514         2. The normal retirement benefit accrued to the DROP during
 1515  the month of a participant’s death is shall be the final monthly
 1516  benefit credited for such DROP participant.
 1517         3. Eligibility to participate in the DROP terminates upon
 1518  death of the participant. If the participant dies on or after
 1519  the effective date of enrollment in the DROP, but before prior
 1520  to the first monthly benefit is being credited to the DROP,
 1521  Florida Retirement System benefits are shall be paid in
 1522  accordance with subparagraph (7)(c)1. or subparagraph 2.
 1523         4. A DROP participant’s participants’ survivors are shall
 1524  not be eligible to receive Florida Retirement System death
 1525  benefits as provided in paragraph (7)(d).
 1526         (e) Cost-of-living adjustment.—On each July 1, the
 1527  participant’s participants’ normal retirement benefit shall be
 1528  increased as provided in s. 121.101.
 1529         (f) Retiree health insurance subsidy.—DROP participants are
 1530  not eligible to apply for the retiree health insurance subsidy
 1531  payments as provided in s. 112.363 until such participants have
 1532  terminated employment and participation in the DROP.
 1533         (g) Renewed membership.—DROP participants are shall not be
 1534  eligible for renewed membership in the Florida Retirement System
 1535  under ss. 121.053 and 121.122 until all employment relationships
 1536  are terminated termination of employment is effectuated as
 1537  provided in s. 121.021(39)(b).
 1538         (h) Employment limitation after DROP participation.— Upon
 1539  satisfying the definition of termination of all employment
 1540  relationships as provided in s. 121.021(39)(b), DROP
 1541  participants are shall be subject to the same such reemployment
 1542  limitations as other retirees. Reemployment restrictions
 1543  applicable to retirees as provided in subsection (9) do shall
 1544  not apply to DROP participants until their employment and
 1545  participation in the DROP are terminated.
 1546         (i) Contributions.—
 1547         1. All employers paying the salary of a DROP participant
 1548  filling a regularly established position shall contribute 8.0
 1549  percent of such participant’s gross compensation for the period
 1550  of July 1, 2002, through June 30, 2003, and the percentage 11.56
 1551  percent of such compensation required by s. 121.71 thereafter,
 1552  which shall constitute the entire employer DROP contribution
 1553  with respect to such participant. Such contributions, payable to
 1554  the Florida Retirement System Trust Fund in the same manner as
 1555  required in s. 121.071, must shall be made as appropriate for
 1556  each pay period and are in addition to contributions required
 1557  for social security and the Retiree Health Insurance Subsidy
 1558  Trust Fund. Such employer, social security, and health insurance
 1559  subsidy contributions are not included in the DROP.
 1560         2. The employer shall, in addition to subparagraph 1., also
 1561  withhold one-half of the entire social security contribution
 1562  required for the participant. Contributions for social security
 1563  by each participant and each employer, in the amount required
 1564  for social security coverage as now or hereafter provided by the
 1565  federal Social Security Act, are shall be in addition to
 1566  contributions specified in subparagraph 1.
 1567         3. All employers paying the salary of a DROP participant
 1568  filling a regularly established position shall contribute the
 1569  percent of such participant’s gross compensation required in s.
 1570  121.071(4), which shall constitute the employer’s health
 1571  insurance subsidy contribution with respect to such participant.
 1572  Such contributions must shall be deposited by the administrator
 1573  in the Retiree Health Insurance Subsidy Trust Fund.
 1574         (j) Forfeiture of retirement benefits.Nothing in This
 1575  section does not shall be construed to remove DROP participants
 1576  from the scope of s. 8(d), Art. II of the State Constitution, s.
 1577  112.3173, and paragraph (5)(f). DROP participants who commit a
 1578  specified felony offense while employed are will be subject to
 1579  forfeiture of all retirement benefits, including DROP benefits,
 1580  pursuant to those provisions of law.
 1581         (k) Administration of program.—The division shall adopt
 1582  make such rules as are necessary for the effective and efficient
 1583  administration of this subsection. The division is shall not be
 1584  required to advise members of the federal tax consequences of an
 1585  election related to the DROP but may advise members to seek
 1586  independent advice.
 1587         (14) PAYMENT OF BENEFITS.—This subsection applies to the
 1588  payment of benefits to a payee (retiree or beneficiary) under
 1589  the Florida Retirement System:
 1590         (a) Federal income tax shall be withheld in accordance with
 1591  federal law, unless the payee elects otherwise on Form W-4P. The
 1592  division shall prepare and distribute to each recipient of
 1593  monthly retirement benefits an appropriate income tax form that
 1594  reflects the recipient’s income and federal income tax withheld
 1595  for the calendar year just ended.
 1596         (b) Subject to approval by the division in accordance with
 1597  rule 60S-4.015, Florida Administrative Code, a payee receiving
 1598  retirement benefits under the Florida Retirement system may also
 1599  have the following payments deducted from his or her monthly
 1600  benefit:
 1601         1. Premiums for life and health-related insurance policies
 1602  from approved companies.
 1603         2. Life insurance premiums for the State Group Life
 1604  Insurance Plan, if authorized in writing by the payee and by the
 1605  department of Management Services.
 1606         3. Repayment of overpayments from the Florida Retirement
 1607  System Trust Fund, the State Employees’ Health Insurance Trust
 1608  Fund, or the State Employees’ Life Insurance Trust Fund, upon
 1609  notification of the payee.
 1610         4. Payments to an alternate payee for alimony or, child
 1611  support pursuant to an income deduction order under s. 61.1301,
 1612  or division of marital assets pursuant to a qualified domestic
 1613  relations order under s. 222.21 or an income deduction order
 1614  under s. 61.1301.
 1615         5. Payments to the Internal Revenue Service for federal
 1616  income tax levies, upon notification of the division by the
 1617  Internal Revenue Service.
 1618         (c) A payee must shall notify the division of any change in
 1619  his or her address. The division may suspend benefit payments to
 1620  a payee if correspondence sent to the payee’s mailing address is
 1621  returned due to an incorrect address. Benefit payments shall be
 1622  resumed upon notification to the division of the payee’s new
 1623  address.
 1624         (d) A payee whose retirement benefits are reduced by the
 1625  application of maximum benefit limits under s. 415(b) of the
 1626  Internal Revenue Code, as specified in s. 121.30(5), shall have
 1627  the portion of his or her calculated benefit in the Florida
 1628  Retirement System defined benefit plan which exceeds such
 1629  federal limitation paid through the Florida Retirement System
 1630  Preservation of Benefits Plan, as provided in s. 121.1001.
 1631         (e)The Division of Retirement may issue retirement
 1632  benefits payable for division of marital assets pursuant to a
 1633  qualified domestic relations order directly to the alternate
 1634  payee, any court order to the contrary notwithstanding, in order
 1635  to meet Internal Revenue Code requirements.
 1636         (f)(e)A No benefit may not be reduced for the purpose of
 1637  preserving the member’s eligibility for a federal program.
 1638         (g)(f) The division shall adopt rules establishing
 1639  procedures for determining that the persons to whom benefits are
 1640  being paid are still living. The division shall suspend the
 1641  benefits being paid to any payee if when it is unable to contact
 1642  such payee and to confirm that he or she is still living.
 1643         Section 10. Section 121.1115, Florida Statutes, is amended
 1644  to read:
 1645         121.1115 Purchase of retirement credit for out-of-state or
 1646  and federal service.—Effective January 1, 1995, a member of the
 1647  Florida Retirement System may purchase creditable service for
 1648  periods of public employment in another state and receive
 1649  creditable service for such periods of employment. Service with
 1650  the Federal Government, including any active military service,
 1651  may be claimed. Upon completion of each year of service earned
 1652  under the Florida Retirement System, a member may purchase up to
 1653  1 year of retirement credit for his or her out-of-state service,
 1654  subject to the following provisions:
 1655         (1) LIMITATIONS AND CONDITIONS.—To receive credit for the
 1656  out-of-state service:
 1657         (a) The out-of-state service being claimed must have been:
 1658         1. Performed in a position of employment with the state or
 1659  a political subdivision thereof or with the Federal Government;
 1660         2. Covered by a retirement or pension plan provided by the
 1661  state or political subdivision, or by the Federal Government, as
 1662  appropriate; and
 1663         3. Performed prior to a period of membership in the Florida
 1664  Retirement System.
 1665         (b) The member must have completed a minimum of 6 years of
 1666  creditable service under the Florida Retirement System,
 1667  excluding out-of-state service and in-state service claimed and
 1668  purchased under s. 121.1122.
 1669         (c) Not more than 5 years of creditable service may be
 1670  claimed for creditable service aggregated under the provisions
 1671  of this section and s. 121.1122.
 1672         (d) The out-of-state service credit claimed under this
 1673  section shall be credited only as service in the Regular Class
 1674  of membership, and any benefit or pension based thereon is shall
 1675  be subject to the limitations and restrictions of s. 112.65.
 1676         (e)The member is not eligible for and may not receive a
 1677  pension or benefit from a retirement or pension plan based on or
 1678  including the out-of-state service. Eligibility for or the
 1679  receipt of contributions to a retirement plan made by the
 1680  employer on behalf of the employee is considered a benefit.
 1681         (f)(e)A member shall be eligible To receive service credit
 1682  for out-of-state service performed after leaving the Florida
 1683  Retirement System, the member must complete only upon return to
 1684  membership and completion of at least 1 year of creditable
 1685  service in the Florida Retirement System following the out-of
 1686  state service.
 1687         (2) COST.—For each year claimed, the member must pay into
 1688  the Florida Retirement System Trust Fund an amount equal to 20
 1689  percent of the member’s annual compensation for the first full
 1690  work year of creditable service earned under the Florida
 1691  Retirement System, but not less than $12,000, plus interest at
 1692  6.5 percent compounded annually from the date of first annual
 1693  salary earned until full payment is made. The employer may pay
 1694  all or a portion of the cost of this service credit.
 1695         Section 11. Subsection (2) of section 121.1122, Florida
 1696  Statutes, is amended to read:
 1697         121.1122 Purchase of retirement credit for in-state public
 1698  service and in-state service in accredited nonpublic schools and
 1699  colleges, including charter schools and charter technical career
 1700  centers.—Effective January 1, 1998, a member of the Florida
 1701  Retirement System may purchase creditable service for periods of
 1702  certain public or nonpublic employment performed in this state,
 1703  as provided in this section.
 1704         (2) LIMITATIONS AND CONDITIONS.—
 1705         (a) A member is not eligible to receive credit for in-state
 1706  service under this section until he or she has completed 6 years
 1707  of creditable service under the Florida Retirement System,
 1708  excluding service purchased under this section and out-of-state
 1709  service claimed and purchased under s. 121.1115.
 1710         (b) A member may not purchase and receive credit for more
 1711  than 5 years of creditable service aggregated under the
 1712  provisions of this section and s. 121.1115.
 1713         (c) Service credit claimed under this section shall be
 1714  credited only as service in the Regular Class of membership and
 1715  is shall be subject to the provisions of s. 112.65.
 1716         (d)Service credit may not be purchased under this section
 1717  if the member is eligible to receive or is receiving a pension
 1718  or benefit from a retirement or pension plan based on or
 1719  including the service. Eligibility for or the receipt of
 1720  contributions to a retirement plan made by the employer on
 1721  behalf of the employee is considered a benefit.
 1722         (e)(d) A member is shall be eligible to receive service
 1723  credit for in-state service performed after leaving the Florida
 1724  Retirement System only after upon returning to membership and
 1725  completing at least 1 year of creditable service in the Florida
 1726  Retirement System following the in-state service.
 1727         (f)(e) The service claimed must have been service covered
 1728  by a retirement or pension plan provided by the employer.
 1729         Section 12. Section 121.122, Florida Statutes, is amended
 1730  to read:
 1731         121.122 Renewed membership in system.—
 1732         (1) Except as provided in s. 121.053, effective July 1,
 1733  1991, any retiree of a state-administered retirement system who
 1734  is initially reemployed employed in a regularly established
 1735  position with a covered employer shall be enrolled as a
 1736  compulsory member of the Regular Class of the Florida Retirement
 1737  System or, effective July 1, 1997, any retiree of a state
 1738  administered retirement system who is initially reemployed
 1739  employed in a position included in the Senior Management Service
 1740  Class shall be enrolled as a compulsory member of the Senior
 1741  Management Service Class of the Florida Retirement System as
 1742  provided in s. 121.055, and shall be entitled to receive an
 1743  additional retirement benefit, subject to the following
 1744  conditions:
 1745         (1)(a) Such member must shall resatisfy the age and service
 1746  requirements as provided in this chapter for initial membership
 1747  under the system, unless such member elects to participate in
 1748  the Senior Management Service Optional Annuity Program in lieu
 1749  of the Senior Management Service Class, as provided in s.
 1750  121.055(6).
 1751         (b) Such member is shall not be entitled to disability
 1752  benefits as provided in s. 121.091(4).
 1753         (c) Such member must meet the reemployment after retirement
 1754  limitations as provided in s. 121.091(9), as applicable.
 1755         (2) Upon renewed membership or reemployment of a retiree,
 1756  the employer of such member shall pay the applicable employer
 1757  contributions as required by ss. 121.71, 121.74, 121.76, and
 1758  112.363 121.055(3) and 121.071(1)(a) and (4).
 1759         (3) Such member is shall be entitled to purchase additional
 1760  retirement credit in the Regular Class or the Senior Management
 1761  Service Class, as applicable, for any postretirement service
 1762  performed in a regularly established position as follows:
 1763         (a) For regular class service prior to July 1, 1991, by
 1764  paying the Regular Class applicable employee and employer
 1765  contributions for the period being claimed, plus 4 percent
 1766  interest compounded annually from first year of service claimed
 1767  until July 1, 1975, and 6.5 percent interest compounded
 1768  thereafter, until full payment is made to the Florida Retirement
 1769  System Trust Fund; or
 1770         (b) For Senior Management Service Class prior to June 1,
 1771  1997, as provided in s. 121.055(1)(j).
 1772  
 1773  The contribution for postretirement service between July 1,
 1774  1985, and July 1, 1991, for which the reemployed retiree
 1775  contribution was paid, shall be the difference between such
 1776  contribution and the total applicable contribution for the
 1777  period being claimed, plus interest. The employer of such member
 1778  may pay the applicable employer contribution in lieu of the
 1779  member. If a member does not wish to claim credit for all of the
 1780  postretirement service for which he or she is eligible, the
 1781  service the member claims must be the most recent service.
 1782         (4) No creditable service for which credit was received, or
 1783  which remained unclaimed, at retirement may be claimed or
 1784  applied toward service credit earned following renewed
 1785  membership. However, service earned as an elected officer with
 1786  renewed membership in the Elected Officers’ Class may be used in
 1787  conjunction with creditable service earned under this section,
 1788  provided the applicable vesting requirements and other existing
 1789  statutory conditions required by this chapter are met.
 1790         (5) Notwithstanding any other limitations provided in this
 1791  section, a participant of the State University System Optional
 1792  Retirement Program, the State Community College Optional
 1793  Retirement Program, or the Senior Management Service Optional
 1794  Annuity Program who terminated employment and commenced
 1795  receiving a distribution an annuity under the provisions of the
 1796  optional program, who initially renews membership in the Regular
 1797  Class as required by this section upon reemployment after
 1798  retirement, and who had previously earned creditable Florida
 1799  Retirement System service that was not included in any
 1800  retirement benefit may include such previous service toward
 1801  vesting and service credit in the second career benefit provided
 1802  under renewed membership.
 1803         (6) A Any renewed member who is not receiving the maximum
 1804  health insurance subsidy provided in s. 112.363 is shall be
 1805  entitled to earn additional credit toward the maximum health
 1806  insurance subsidy. Any additional subsidy due because of such
 1807  additional credit may shall be received only at the time of
 1808  payment of the second career retirement benefit. In no case
 1809  shall The total health insurance subsidy received by a retiree
 1810  receiving benefits from initial and renewed membership may not
 1811  exceed the maximum allowed in s. 112.363.
 1812         Section 13. Section 121.136, Florida Statutes, is amended
 1813  to read:
 1814         121.136 Annual benefit statement to members.—Each year
 1815  Beginning January 1, 1993, and each January thereafter, the
 1816  department shall provide each active member of the Florida
 1817  Retirement System with 5 or more years of creditable service an
 1818  annual statement of benefits that provides. Such statement
 1819  should provide the member with basic data about the member’s
 1820  retirement account. At a minimum Minimally, it must shall
 1821  include the member’s retirement plan, accrued service credit the
 1822  amount of funds on deposit in the retirement account, and an
 1823  estimate of retirement benefits.
 1824         Section 14. Section 121.1905, Florida Statutes, is amended
 1825  to read:
 1826         121.1905 Division of Retirement; creation.—
 1827         (1) There is created the Division of Retirement within the
 1828  Department of Management Services.
 1829         (2)The mission of the Division of Retirement is to provide
 1830  quality and cost-effective retirement services as measured by
 1831  member satisfaction and by comparison with administrative costs
 1832  of comparable retirement systems.
 1833         Section 15. Paragraph (a) of subsection (2) of section
 1834  121.23, Florida Statutes, is amended to read:
 1835         121.23 Disability retirement and special risk membership
 1836  applications; Retirement Commission; powers and duties; judicial
 1837  review.—The provisions of this section apply to all proceedings
 1838  in which the administrator has made a written final decision on
 1839  the merits respecting applications for disability retirement,
 1840  reexamination of retired members receiving disability benefits,
 1841  applications for special risk membership, and reexamination of
 1842  special risk members in the Florida Retirement System. The
 1843  jurisdiction of the State Retirement Commission under this
 1844  section shall be limited to written final decisions of the
 1845  administrator on the merits.
 1846         (2) A member shall be entitled to a hearing before the
 1847  State Retirement Commission pursuant to ss. 120.569 and
 1848  120.57(1) on the merits of any written adverse decision of the
 1849  administrator, if he or she files with the commission a written
 1850  request for such hearing within 21 days after receipt of such
 1851  written decision from the administrator. For the purpose of such
 1852  hearings, the commission shall be an “agency head” as defined by
 1853  s. 120.52.
 1854         (a) The commission may shall have the authority to issue
 1855  orders as a result of the a hearing that are shall be binding on
 1856  all parties to the dispute and. The commission may order any
 1857  action that it deems appropriate. Any disability retirement
 1858  order of the commission that issued pursuant to this subsection
 1859  which sustains the application of the member may include an
 1860  amount, to be determined by the commission, for reasonable
 1861  attorney’s fees and taxable costs, which shall be calculated in
 1862  accordance with the statewide uniform guidelines for taxation of
 1863  costs in civil actions. The amount of the attorney’s fees fee
 1864  may not exceed 50 percent of the initial yearly benefit awarded
 1865  under s. 121.091(4). In cases involving disability retirement,
 1866  the State Retirement commission shall require the member to
 1867  present substantial competent medical evidence that meets the
 1868  requirements of s. 121.091(4)(c)2. and 3., and may require
 1869  vocational evidence, before awarding disability retirement
 1870  benefits.
 1871         Section 16. Paragraph (a) of subsection (1) of section
 1872  121.24, Florida Statutes, is amended to read:
 1873         121.24 Conduct of commission business; legal and other
 1874  assistance; compensation.—
 1875         (1) The commission shall conduct its business within the
 1876  following guidelines:
 1877         (a) For purposes of hearing appeals under s. 121.23, the
 1878  commission may meet in panels consisting of no not fewer than
 1879  three members. For the purpose of meeting in these panels, a
 1880  quorum shall be not fewer than two members. For all other
 1881  purposes, A quorum shall consist of three members. The
 1882  concurring vote of a majority of the members present is shall be
 1883  required to reach a decision, issue orders, and conduct the
 1884  business of the commission.
 1885         Section 17. Paragraph (h) of subsection (3) and paragraphs
 1886  (a) and (e) of subsection (5) of section 121.35, Florida
 1887  Statutes, are amended, and paragraph (g) is added to subsection
 1888  (5) of that section, to read:
 1889         121.35 Optional retirement program for the State University
 1890  System.—
 1891         (3) ELECTION OF OPTIONAL PROGRAM.—
 1892         (h) A participant in the optional retirement program may
 1893  not participate in more than one state-administered retirement
 1894  system, plan, or class simultaneously. Except as provided in s.
 1895  121.052(6)(d), a participant who is or becomes dually employed
 1896  in two or more positions covered by the Florida Retirement
 1897  System, one of which is eligible for the optional program and
 1898  one of which is not, may remain a member of the optional program
 1899  and contributions shall be paid as required only on the salary
 1900  earned in the position eligible for the optional program during
 1901  the such period of dual employment; or, within 90 days after
 1902  becoming dually employed, he or she may elect membership in the
 1903  Regular Class of the Florida Retirement System in lieu of the
 1904  optional program and contributions shall be paid as required on
 1905  the total salary received for all employment. At retirement, the
 1906  average final compensation used to calculate any benefits for
 1907  which the member becomes eligible under the Florida Retirement
 1908  System must shall be based on all salary reported for both
 1909  positions during such period of dual employment. If the When
 1910  such member ceases to be dually employed, he or she may, within
 1911  90 days, elect to remain in the Florida Retirement System class
 1912  for which he or she is eligible or to again become a participant
 1913  in the optional retirement program. Failure to elect membership
 1914  in the optional program within 90 days shall result in
 1915  compulsory membership in the Florida Retirement System, except
 1916  that a member filling a faculty position at under a college that
 1917  has a faculty practice plan at the University of Florida, at or
 1918  the Medical Center at the University of South Florida, or other
 1919  state university shall again participate in the optional
 1920  retirement program as required in s. 121.051(1)(a).
 1921         (5) BENEFITS.—
 1922         (a) Benefits are shall be payable under the optional
 1923  retirement program only to vested participants in the program,
 1924  or their beneficiaries as designated by the participant in the
 1925  contract with a provider company, and such benefits shall be
 1926  paid only by the designated company in accordance with s. 403(b)
 1927  of the Internal Revenue Code and in accordance with the terms of
 1928  the annuity contract or contracts applicable to the participant.
 1929  Benefits shall accrue in individual accounts that are
 1930  participant-directed, portable, and funded by employer
 1931  contributions and the earnings thereon. The participant must be
 1932  terminated from all employment relationships with all Florida
 1933  Retirement System employers, as provided in s. 121.021(39), to
 1934  begin receiving the employer-funded benefit. Benefits funded by
 1935  employer contributions are shall be payable in accordance with
 1936  the following terms and conditions:
 1937         1. Benefits shall be paid payable only to a participant, to
 1938  his or her beneficiaries, or to his or her estate, as designated
 1939  by the participant.
 1940         2. Benefits shall be paid by the provider company or
 1941  companies in accordance with the law, the provisions of the
 1942  contract, and any applicable department board rule or policy.
 1943         3. In the event of a participant’s death, moneys
 1944  accumulated by, or on behalf of, the participant, less
 1945  withholding taxes remitted to the Internal Revenue Service, if
 1946  any, shall be distributed to the participant’s designated
 1947  beneficiary or beneficiaries, or to the participant’s estate, as
 1948  if the participant retired on the date of death, as provided in
 1949  paragraph (c). No other death benefits are shall be available to
 1950  for survivors of participants under the optional retirement
 1951  program except for such benefits, or coverage for such benefits,
 1952  as are separately afforded by the employer, at the employer’s
 1953  discretion.
 1954         (e) A participant who chooses to receive his or her
 1955  benefits upon termination as defined in s. 121.021(39) must of
 1956  employment shall have responsibility to notify the provider
 1957  company of the date on which he or she wishes benefits funded by
 1958  employer contributions to begin. Benefits may be deferred until
 1959  such time as the participant chooses to make such application.
 1960         (g)For purposes of this section, “retiree” means a former
 1961  participant of the optional retirement program who has
 1962  terminated employment and has taken a distribution as provided
 1963  in this subsection, except for a mandatory distribution of a de
 1964  minimis account authorized by the department.
 1965         Section 18. Paragraphs (a) and (b) of subsection (1) of
 1966  section 121.591, Florida Statutes, is amended to read:
 1967         121.591 Benefits payable under the Public Employee Optional
 1968  Retirement Program of the Florida Retirement System.—Benefits
 1969  may not be paid under this section unless the member has
 1970  terminated employment as provided in s. 121.021(39)(a) or is
 1971  deceased and a proper application has been filed in the manner
 1972  prescribed by the state board or the department. The state board
 1973  or department, as appropriate, may cancel an application for
 1974  retirement benefits when the member or beneficiary fails to
 1975  timely provide the information and documents required by this
 1976  chapter and the rules of the state board and department. In
 1977  accordance with their respective responsibilities as provided
 1978  herein, the State Board of Administration and the Department of
 1979  Management Services shall adopt rules establishing procedures
 1980  for application for retirement benefits and for the cancellation
 1981  of such application when the required information or documents
 1982  are not received. The State Board of Administration and the
 1983  Department of Management Services, as appropriate, are
 1984  authorized to cash out a de minimis account of a participant who
 1985  has been terminated from Florida Retirement System covered
 1986  employment for a minimum of 6 calendar months. A de minimis
 1987  account is an account containing employer contributions and
 1988  accumulated earnings of not more than $5,000 made under the
 1989  provisions of this chapter. Such cash-out must either be a
 1990  complete lump-sum liquidation of the account balance, subject to
 1991  the provisions of the Internal Revenue Code, or a lump-sum
 1992  direct rollover distribution paid directly to the custodian of
 1993  an eligible retirement plan, as defined by the Internal Revenue
 1994  Code, on behalf of the participant. If any financial instrument
 1995  issued for the payment of retirement benefits under this section
 1996  is not presented for payment within 180 days after the last day
 1997  of the month in which it was originally issued, the third-party
 1998  administrator or other duly authorized agent of the State Board
 1999  of Administration shall cancel the instrument and credit the
 2000  amount of the instrument to the suspense account of the Public
 2001  Employee Optional Retirement Program Trust Fund authorized under
 2002  s. 121.4501(6). Any such amounts transferred to the suspense
 2003  account are payable upon a proper application, not to include
 2004  earnings thereon, as provided in this section, within 10 years
 2005  after the last day of the month in which the instrument was
 2006  originally issued, after which time such amounts and any
 2007  earnings thereon shall be forfeited. Any such forfeited amounts
 2008  are assets of the Public Employee Optional Retirement Program
 2009  Trust Fund and are not subject to the provisions of chapter 717.
 2010         (1) NORMAL BENEFITS.—Under the Public Employee Optional
 2011  Retirement Program:
 2012         (a) Benefits in the form of vested accumulations as
 2013  described in s. 121.4501(6) shall be payable under this
 2014  subsection in accordance with the following terms and
 2015  conditions:
 2016         1. To the extent vested, benefits shall be payable only to
 2017  a participant.
 2018         2. Benefits shall be paid by the third-party administrator
 2019  or designated approved providers in accordance with the law, the
 2020  contracts, and any applicable board rule or policy.
 2021         3. To receive benefits under this subsection, the
 2022  participant must be terminated from all employment with all
 2023  Florida Retirement System employers, as provided in s.
 2024  121.021(39).
 2025         4. Benefit payments may not be made until the participant
 2026  has been terminated for 3 calendar months, except that the board
 2027  may authorize by rule for the distribution of up to 10 percent
 2028  of the participant’s account after being terminated for 1
 2029  calendar month if a participant has reached the normal
 2030  retirement requirements of the defined benefit plan, as provided
 2031  in s. 121.021(29).
 2032         5. If a member or former member of the Florida Retirement
 2033  System receives an invalid distribution from the Public Employee
 2034  Optional Retirement Program Trust Fund, such person shall repay
 2035  the full invalid distribution to the trust fund within 90 days
 2036  after receipt of final notification by the State Board of
 2037  Administration or the third-party administrator that the
 2038  distribution was invalid. If such person fails to repay the full
 2039  invalid distribution within 90 days after receipt of final
 2040  notification, the person may be deemed retired from the Public
 2041  Employee Optional Retirement Program by the state board, as
 2042  provided pursuant to s. 121.4501(2)(j), and shall be subject to
 2043  the provisions of s. 121.122. If such person is deemed retired
 2044  by the state board, any joint and several liability set out in
 2045  s. 121.091(9)(d)2. s. 121.091(9)(c)2. becomes null and void, and
 2046  the state board, the Department of Management Services, or the
 2047  employing agency is not liable for gains on payroll
 2048  contributions that have not been deposited to the person’s
 2049  account in the Public Employee Optional Retirement Program,
 2050  pending resolution of the invalid distribution. The member or
 2051  former member who has been deemed retired or who has been
 2052  determined by the board to have taken an invalid distribution
 2053  may appeal the agency decision through the complaint process as
 2054  provided under s. 121.4501(9)(f)3. As used in this subparagraph,
 2055  the term “invalid distribution” means any distribution from an
 2056  account in the Public Employee Optional Retirement Program which
 2057  is taken in violation of the provisions of this section, s.
 2058  121.091(9), or s. 121.4501.
 2059         (b) If a participant elects to receive his or her benefits
 2060  upon termination of employment as defined in s. 121.021(39), the
 2061  participant must submit a written application or an equivalent
 2062  form to the third-party administrator indicating his or her
 2063  preferred distribution date and selecting an authorized method
 2064  of distribution as provided in paragraph (c). The participant
 2065  may defer receipt of benefits until he or she chooses to make
 2066  such application, subject to federal requirements.
 2067         Section 19. Subsection (1) of section 238.183, Florida
 2068  Statutes, is amended to read:
 2069         238.183 Developmental research school and Florida School
 2070  for the Deaf and the Blind instructional personnel; reemployment
 2071  after retirement.—
 2072         (1) Notwithstanding any other law, instructional personnel,
 2073  as defined in s. 1012.01(2), employed by a developmental
 2074  research school or the Florida School for the Deaf and the Blind
 2075  are eligible for reemployment after retirement in the same
 2076  manner as classroom teachers who are employed by the district
 2077  school boards, as described in ss. 121.091(9)(b)3. and
 2078  238.181(2)(c).
 2079         Section 20. Paragraph (g) of subsection (3) and subsection
 2080  (8) of section 1012.33, Florida Statutes, are amended to read:
 2081         1012.33 Contracts with instructional staff, supervisors,
 2082  and school principals.—
 2083         (3)
 2084         (g) Beginning July 1, 2001, for each employee who enters
 2085  into a written contract, pursuant to this section, in a school
 2086  district in which the employee was not employed as of June 30,
 2087  2001, or was employed as of June 30, 2001, but has since broken
 2088  employment with that district for 1 school year or more, for
 2089  purposes of pay, a district school board must recognize and
 2090  accept each year of full-time public school teaching service
 2091  earned in the State of Florida or outside the state and for
 2092  which the employee received a satisfactory performance
 2093  evaluation. Instructional personnel employed pursuant to s.
 2094  121.091(9)(b)3. are exempt from the provisions of this
 2095  paragraph.
 2096         (8) Notwithstanding any other provision of law, a retired
 2097  any member who has retired may interrupt retirement and be
 2098  reemployed in any public school. A Any member so reemployed by
 2099  the same district from which he or she retired may be employed
 2100  on a probationary contractual basis as provided in subsection
 2101  (1); however, no regular retirement employee shall be eligible
 2102  to renew membership under a retirement system created by chapter
 2103  121 or chapter 238.
 2104         Section 21. Sections 121.093, 121.094, and 121.45, Florida
 2105  Statutes, are repealed.
 2106         Section 22. The Legislature finds that a proper and
 2107  legitimate state purpose is served when employees and retirees
 2108  of the state and its political subdivisions, as well as the
 2109  dependents, survivors, and beneficiaries of such employees and
 2110  retirees, are extended the basic protections afforded by
 2111  governmental retirement systems that provide fair and adequate
 2112  benefits and that are managed, administered, and funded in an
 2113  actuarially sound manner as required by s. 14, Art. X of the
 2114  State Constitution and part VII of chapter 112, Florida
 2115  Statutes. Therefore, the Legislature determines and declares
 2116  that the amendment of s. 121.091, Florida Statutes, by this act
 2117  fulfills an important state interest.
 2118  Section 23. This act shall take effect July 1, 2009.
 2119  
 2120  ================= T I T L E  A M E N D M E N T ================
 2121         And the title is amended as follows:
 2122         Delete everything before the enacting clause
 2123  and insert:
 2124                        A bill to be entitled                      
 2125         An act relating to retirement; amending s. 121.021,
 2126         F.S.; redefining the terms “employer,” “officer or
 2127         employee,” “past service,” “normal retirement date,”
 2128         “termination,” “regularly established position,” and
 2129         “temporary position”; defining the terms “state board”
 2130         and “trustees”; amending s. 121.031, F.S.; requiring
 2131         promotional materials that refer to the Florida
 2132         Retirement System to include a disclaimer unless
 2133         approval is obtained from the Department of Management
 2134         Services or the State Board of Administration;
 2135         amending s. 121.051, F.S.; conforming a cross
 2136         reference; clarifying when a State Community College
 2137         System Optional Retirement Program participant is
 2138         considered a retiree; revising provisions relating to
 2139         participation in the Florida Retirement System by
 2140         certain employers; excluding the participation of
 2141         certain entities under a lease agreement; amending s.
 2142         121.052, F.S.; revising membership criteria for
 2143         members of the Elected Officers’ Class; revising the
 2144         dates when a governing body of a municipality or
 2145         special district may elect to designate its elected
 2146         positions for inclusion in the Elected Officers’
 2147         Class; amending s. 121.053, F.S.; revising provisions
 2148         relating to participation in the Elected Officers’
 2149         Class for retired members; providing that a member
 2150         whose DROP participation begins after a certain date
 2151         may not continue to earn interest on his or her DROP
 2152         account after the end of the 60-month DROP period;
 2153         amending s. 121.055, F.S.; revising provisions
 2154         relating to participation in the Senior Management
 2155         Service Class; revising provisions relating to de
 2156         minimis accounts; amending s. 121.071, F.S.; providing
 2157         an additional mechanism for the payment of employee
 2158         contributions to the system; amending s. 121.081,
 2159         F.S.; providing for receipt of credit for past or
 2160         prior service by charter school and charter technical
 2161         career center employees; prohibiting a member from
 2162         receiving credit for service covered and reported by
 2163         both a public employer and a private employer;
 2164         amending s. 121.091, F.S.; revising and clarifying
 2165         provisions relating to retirement benefits;
 2166         authorizing developmental research schools and charter
 2167         schools to reemploy certain retired members under
 2168         specified conditions; providing that retirees of a
 2169         state-administered retirement system who retire after
 2170         a certain date may not be reemployed by an employer
 2171         participating in the Florida Retirement System for 6
 2172         months; revising provisions relating to reemployment
 2173         of retirees of the Public Employee Optional Retirement
 2174         Program; providing that certain members who delay DROP
 2175         participation lose a month of DROP participation for
 2176         each month delayed; clarifying that DROP participation
 2177         may not be canceled; clarifying maximum DROP
 2178         participation; providing for the suspension of DROP
 2179         benefits to a participant who is reemployed; deleting
 2180         obsolete provisions; revising employer contribution
 2181         requirements; authorizing the Division of Retirement
 2182         to issue benefits pursuant to a qualified domestic
 2183         relations order directly to the alternate payee;
 2184         amending s. 121.1115, F.S.; revising provisions
 2185         relating to receiving retirement credit for out-of
 2186         state service; providing that a member is not eligible
 2187         for and may not receive a benefit based on such
 2188         service; amending s. 121.1122, F.S.; revising
 2189         provisions relating to receiving retirement credit for
 2190         in-state service; providing that certain members are
 2191         not eligible to purchase service credit; amending s.
 2192         121.122, F.S.; providing that certain retirees
 2193         initially reemployed on or after a specified date are
 2194         ineligible for renewed membership in the system;
 2195         revising conditions under which a retiree is entitled
 2196         to certain additional retirement benefits; amending s.
 2197         121.136, F.S.; revising provisions relating to the
 2198         annual statement of benefits provided to certain
 2199         active members of the system; amending s. 121.1905,
 2200         F.S.; deleting a provision describing the mission of
 2201         the Division of Retirement; amending s. 121.23, F.S.;
 2202         requiring the State Retirement Commission to use
 2203         certain requirements used by the Secretary of
 2204         Management Services before approving a disability
 2205         retirement benefit; amending s. 121.24, F.S.;
 2206         requiring a quorum of three members for all appeal
 2207         hearings held by the commission; amending s. 121.35,
 2208         F.S.; revising a compulsory membership exception for
 2209         certain members failing to elect membership in the
 2210         optional retirement program; providing a cross
 2211         reference; defining the term “retiree” for purposes of
 2212         the State University System Optional Retirement
 2213         Program; amending ss. 121.591 and 238.183, F.S.;
 2214         providing and conforming cross-references; amending s.
 2215         1012.33, F.S.; deleting a provision preventing persons
 2216         who have retired from the public school system from
 2217         renewing membership in the Florida Retirement System
 2218         or Teachers’ Retirement System upon reemployment by
 2219         the school system; repealing s. 121.093, F.S.,
 2220         relating to instructional personnel reemployment after
 2221         retirement from a developmental research school or the
 2222         Florida School for the Deaf and the Blind; repealing
 2223         s. 121.094, F.S., relating to instructional personnel
 2224         reemployment after retirement from a charter school;
 2225         repealing s. 121.45, F.S., relating to interstate
 2226         compacts relating to pension portability; providing a
 2227         declaration of important state interest; providing an
 2228         effective date.